The DWP is sending debt recovery letters this week to former benefit claimants, as new enforcement powers come into force including the potential suspension of driving licences for those who owe at least £1,000 and refuse to repay.
The Department for Work and Pensions has been granted fresh powers to impose sanctions on individuals who have ceased claiming benefits but remain in debt to the department. From now on, the DWP will be authorised to recover funds directly from bank accounts and, in severe instances, can request a court to revoke offenders’ driving licences.
The updated regulations are designed to target fraudsters and debtors who “refuse to pay” their outstanding debts to the DWP. Individuals who may be impacted by these measures should begin receiving correspondence this week, urging them to “get in touch and pay up”.
Work and Pensions Minister for Transformation Andrew Western said: “Hardworking taxpayers deserve a system that pursues those who deliberately dodge their debts, and that is exactly what these new powers deliver. To anyone with an outstanding debt – our door is open and DWP will always work with you to find an affordable way to repay.
“But for those who can pay and won’t – we’re going further than ever before to claw back cash and crack down on fraud.”
The DWP’s complete range of new powers will be progressively introduced from October, allowing those who owe the Department merely four months to settle their debts or establish an affordable repayment arrangement before this cut-off point. Anyone receiving these letters is strongly advised to respond without delay, with official guidance indicating that individuals can prevent the full implementation of these new powers by simply contacting the DWP, reports the Mirror.
The department also notes that staff are able to signpost people to free debt support services where necessary. Those who owe money to the DWP and currently receive benefits will typically repay these debts via deductions from their future payments.
However, when individuals continue repaying these debts but cease claiming benefits, it becomes increasingly difficult for the DWP to recoup the outstanding funds. The driving ban can only be imposed on those who owe the DWP a minimum of £1,000 and have no essential requirement for their licence — for instance, if they rely on their vehicle for work as a courier.
Those facing a ban will initially have their licence suspended only for as long as repayment terms are kept to. Cabinet Office Minister Satvir Kaur said: “Fraud against the public sector and unrecovered debt deny our vital frontline services of the funding they deserve.
“Under these new powers in the PAFER Act, this Government will deliver on its promise to protect hardworking taxpayers and clamp down on those who try to cheat the system.”
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