The department has been given new powers as the government cracks down on debtors and fraudsters.
Some Brits facing losing their driving licence. (Image: Getty)
The Department for Work and Pensions (DWP) will be given powers from Thursday (October 1) to suspend driving licences. It comes amid a government crackdown on fraudsters and debtors who continue to owe the department money.
The DWP is writing to thousands of people with outstanding debts, warning them to pay up or face the consequences. The Public Authorities (Fraud, Error and Recovery) Act 2025 will allow the department to strip people of their driving licence if they owe £1,000 or more.
Statistics show that around 1.1 million people across the UK owe money to the DWP. Anyone no longer in receipt of a benefit, who knows they owe the department cash, should act as soon as possible.
Previous rules meant the DWP had few options to pursue people who owed money and were no longer claiming benefits. However, they can now strip driving licences “as a last resort in the most serious cases where DWP considers the individual has the means to pay but is refusing, or avoiding payment, without reasonable excuse”.
The department may apply for a court order to temporarily disqualify an individual from holding a driving licence. The court must initially make a suspended disqualification order which will allow the individual to continue to hold a driving licence while making payments as ordered by the court.
The DWP is cracking down on fraudsters. (Image: In Pictures via Getty Images)
If the payment terms are then breached, the DWP can apply to immediately disqualify the individual from driving. The move comes as part of the Labour Government’s pledge to save £14.6 billion over the next five years from fraud, error and debt activity.
The DWP said: “The DWP is writing to thousands of people with outstanding debts, warning them to get in touch and pay up, or face the consequences.
“Under the Public Authorities (Fraud, Error and Recovery) Act 2025, the biggest crackdown on welfare debt in a generation, the DWP can now go directly to a person’s bank to claw back cash owed, without needing a court order. And in the most serious cases, it can ask a court to strip persistent dodgers of their driving licence.”
They added: “Anyone no longer in receipt of benefit, who owes money to DWP and receives the new letter should act now.
Andrew Western said the powers will give the DWP the ability to clampdown on fraudsters. (Image: Colin Lane/Liverpool Echo)
“The application of these powers can be avoided entirely by getting in touch with DWP within the next four months. Where it would help, staff can also point individuals towards free debt advice and support services.”
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.”