The Department for Works and Pensions (DWP) has announced its “biggest fraud crackdown in a generation” including plans to take money straight from bank accounts.

The new Public Authorities (Fraud, Error & Recovery) Bill was introduced in Parliament this week and forms part of wider plans to save the Government a total of £8.6billion over five years. The DWP estimates that benefit fraudsters cheated the taxpayer out of £7billion last year.

As well as plans to recover money directly from bank accounts, the DWP could also get benefit cheats banned from driving if they repeatedly fail to pay back what they owe. Here is everything that has been announced as part of the new Bill.

The DWP will have the power to recover money directly from bank accounts of benefit fraudsters who are no longer on benefits, or in PAYE employment. The benefits department will target people who have the means to pay, but have refused to do so. The DWP will be able to request bank statements but will not have direct access to bank accounts.

The DWP will be able to apply to the court to suspend people from driving for up to two years, if the debt they owe is £1,000 or over and they repeatedly refuse to repay the money. This will be used against people who have ignored requests from the DWP.

There will be new requirements for banks and building societies to flag where there is a potential breach of eligibility rules for benefits. The idea is that this would prevent debts from accruing and people having to owe money back to the DWP.

DWP organised crime investigators will be given new powers to apply to a court for search warrants. It means they will be able to support police and search premises and seize items such as computers and smartphones as evidence against fraudsters.

The time limit for civil claims against Covid fraud will be doubled from six to twelve years. This would give the Covid Corruption Commissioner and the Public Sector Fraud Authority more time to investigate complex cases and apply their new powers retrospectively.

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