DWP writing to benefits claimants who'll have licence stripped from October
Big Brother Watch and Age UK described the plans as "mass financial surveillance powers" Benefits cheats who fail to pay back the taxpayer could be stripped of their driving licences under a Department for Work and Pensions (DWP) crackdown from October. In a letter to the DWP, the directors of Big Brother Watch and Age UK described the plans as "mass financial surveillance powers" which they said would "represent a severe and disproportionate intrusion into the nation's privacy". Under the Public Authorities (Fraud, Error and Recovery) Act 2025, the DWP says "in the most serious cases" it can consider applying to the court for an order which, if breached, could result in individuals being temporarily disqualified from driving. The punishment can only be considered by DWP where the outstanding debt balance is a minimum of £1,000 and where it is not reasonably possible to recover the debt by any other means.
READ MORE HMRC new 'per mile' charges coming for drivers from September And the DWP is writing to those impacted. It says: "Where the disqualification from driving power is to be applied, the individual will be notified in writing which will include details of the court hearing." When considering an application under this power, the court must first determine whether the individual had the means to repay their debt to DWP but did not, without reasonable excuse. The court cannot make the order if it considers the individual has an essential need to drive, including where it is essential to earn a living. The individual will need to make any essential need clear to the court.
A suspended order will always be made in the first instance, and under this order, the court will set repayment terms. Actual disqualification will not result provided the individual complies with the payment terms set by the court. If they fail to do so, without reasonable excuse, DWP can apply for an immediate disqualification order which may have effect for up to two years from the date of disqualification. An order must end as soon as the full amount owed to DWP has been repaid.If an order is not granted by the court, for example where the court accepts the individual has an essential need for their licence, further applications may be made in the future.
Where an immediate disqualification order comes to an end, DWP may apply for another immediate disqualification order for a further period of up to 2 years, if the individual continues not to repay the debt in full. 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."