The new Public Authorities (Fraud, Error & Recovery) Bill is expected to save £1.5bn over five years, with Liz Kendall, Secretary of State for Work and Pensions, saying it was “turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money”.
“This means greater consequences for fraudsters who cheat and evade the system, including, as a last resort in the most serious cases, removing their driving licence,” she said.
Two years off the roads
If someone owes over £1,000 in debt to the Department for Work and Pensions (DWP), the DWP will be able to apply to the court to suspend fraudsters from driving for up to two years.
The DWP will also have the power to recover money directly from the bank accounts of those not on benefits or in pay-as-you-earn (PAYE) employment.
It will not have direct access to people’s bank accounts. However, it will be able to request bank statements to prove these debtors have sufficient funds to repay what they owe.
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‘Major expansion of Government power’
Some campaigners believe that the draft legislation would lead to the Government holding too much power.
Silkie Carlo, director of privacy and civil liberties campaign group Big Brother Watch, said the bill would be a “major expansion of Government power”, and added that those who are the victim of Government errors with their welfare payments could end up sanctioned.
She said: “These extreme powers are not only about fraud, but about correcting the Government’s own frequent payment errors.
“We must be extremely cautious about the Government creating a second-tier justice system reserved for people who rely on welfare that sidesteps fair hearings in courts to take away people’s funds and freedoms.”
Kendall said the legislation included safeguards such as reporting mechanisms and independent oversight “to ensure the powers are used proportionately and safely”.
