The Department for Work and Pensions has begun rolling out new debt recovery powers which could ultimately see some people banned from driving if they persistently refuse to repay money they owe. The measures do not allow the DWP to automatically cancel the driving licences of people simply because they claim benefits. Instead, the powers are aimed at people who owe money to the department, particularly those who are no longer receiving benefits or having repayments deducted through PAYE and who are judged to have the means to repay their debt but refuse to engage. The powers were introduced under the Public Authorities (Fraud, Error and Recovery) Act 2025 and came into force on June 24, 2026, with enforcement being gradually rolled out from October.
Court must approve driving ban
In the most serious cases, the DWP can apply to a court for an individual to be temporarily disqualified from holding or obtaining a driving licence. The department cannot itself impose the ban. Government guidance describes the measure as a last resort and says it is intended for people who persistently and deliberately avoid repaying money despite being able to do so. The power can generally only be considered where at least £1,000 remains outstanding. A court must not impose a disqualification if it considers the person needs their licence to earn a living or has another essential need for it. An immediate disqualification can last for up to two years.
Money can also be recovered from bank accounts
The legislation also gives the DWP powers to recover qualifying debts directly from bank accounts in certain circumstances. Before these measures are used, debtors are expected to have been contacted and given opportunities to repay what they owe or agree an affordable repayment plan. The DWP said thousands of people with outstanding debts were being written to ahead of the October rollout. Work and Pensions Minister for Transformation Andrew Western said the powers were intended to target people who deliberately avoid repayment. The Government says the wider fraud, error and debt programme is expected to contribute towards billions of pounds of savings over the coming years. Anyone receiving correspondence from the DWP about an outstanding debt is being urged to engage with the department rather than ignore it.
Originally published by UKNIP.
