Benefits cheats face being banned from driving as part of a new crackdown on fraud across the UK.
Fraudsters could be stripped of their driving licence for up to two years if they refuse to pay back debts of over £1,000, the Department of Work and Pensions (DWP) has said.
It comes after the DWP revealed up to £35billion in benefits had been incorrectly paid to those not entitled to the money. In November, Sir Keir Starmer promised a “zero tolerance” approach on benefit cheats amid a rising welfare bill.
“We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money,” work and pensions minister Liz Kendall said.
“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.
“Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely.”
The move, to be introduced under the New Public Authorities (Fraud, Error & Recovery) Bill, will also give the government powers to directly recover money from the bank accounts of those in debt.
Organised crime investigators will also be able to accompany police to search properties, with authority to seize expensive items like computers and smartphones as evidence.
The DWP said: “Staff will be trained to the highest standards on the appropriate use of any new powers, and we will introduce new oversight and reporting mechanisms, to monitor these new powers.
“This legislation delivers on the government’s manifesto commitment to safeguard taxpayers’ money and demonstrates the government’s commitment to not tolerate fraud, error or waste anywhere in public services, including the social security system.”
Labour last year said it will stick by a Tory commitment to slash the cost of the welfare bill by £3bn over five years, although Sir Keir also promised not to “call people shirkers or go down the road of division” – a dig at previous Conservative governments.
On the latest move, the Tories said the government was trying to “distract” voters from negative headlines.
Helen Whately MP, shadow work and pensions secretary, said: “The chancellor is clearly desperate to find any savings ahead of what may in fact be a mini-budget because she needs to repair the damage she has inflicted with her disastrous budget last year.”
