DWP to get new powers to seize money directly from bank accounts

Benefit cheats who refuse to pay upwill have stolen money recovered directly from their bank accounts under new plans.

Until now, there was no way of clawing back cash from the bank accounts of fraudsters who are not on benefits or PAYE and refuse to pay up other than through lengthy and costly court cases.

The new powers will allow the Department for Work and Pensions (DWP) to recover taxpayers’ money faster from those who have the means but refuse to pay back. It follows a commitment from Prime Minister Kier Starmer to introduce a new bill to tackle benefit fraud in this parliamentary session.

As a last resort DWP will have the ability to directly recover debt from bank accounts of those not on benefits or PAYE earnings through regular or lump sum deductions, under the proposals. The government says it has inherited a 'broken' welfare system, with fraud and error in the social security system currently costing the taxpayer almost £10bn-a-year and, since the pandemic, a total of £35bn of taxpayers’ money has been incorrectly paid to those not entitled to the money.

Ministers are expected to bring forward extensive legislation to tackle fraud error and debt in the benefit system and the public sector more broadly, saving an estimated £1.5bn over the next five years. Secretary of State for Work and Pensions, Liz Kendall, said: "This government will not tolerate fraud and waste in the welfare system as we make it fit for the 21^st century as part of our Plan for Change. The public expects this of us, and we are delivering for them.

"People who seek to cheat the system should know – our new powers will help us to catch you out and make sure you are held accountable. We will also introduce new powers to minimise overpayments