The Department for Work and Pensions (DWP) has warned that individuals owing money to the benefits agency could face a temporary driving ban under new debt recovery powers.
These measures, which came into force in June, grant the DWP additional methods for recovering money owed, including direct deductions from bank accounts. However, new measures being rolled out in October are specifically targeting individuals who have the financial capacity to repay benefit debts but persistently refuse to do so. Under these new powers, the department can apply to a court for a temporary driving disqualification if it believes someone has deliberately failed to repay their debt without a valid reason.
From October, the government is alerting persistent debtors that stronger action may be taken if they refuse to repay money they are capable of paying back. The government has stated that these measures are intended for those deliberately avoiding payments, not for individuals experiencing financial hardship.
The new measures are also designed to address debts owed by individuals who are no longer receiving benefits or are not in suitable PAYE employment, situations where the DWP previously had limited options for recovery. Those who have received letters regarding outstanding debts are advised to contact the department to arrange repayment rather than await enforcement action.
A driving disqualification order can be suspended while the debtor makes agreed repayments. A ban could then be imposed if they fail to meet these repayment conditions without a reasonable excuse.
DWP officials stated: "Previously, the DWP had few options to pursue people who were no longer claiming benefits or in PAYE employment, meaning some who could afford to repay were simply choosing not to. That loophole is now closed."
Birmingham Live reports that the debt must be over £1,000 and will not apply to everyone with a benefit debt. Instead, it will be used as a last resort against those who repeatedly avoid repayment.
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."
