DWP to introduce new laws to recover money from benefit fraudsters’ bank accounts

20 January 2025 , 16:32

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DWP to introduce new laws to recover money from benefit fraudsters’ bank accounts

The Department for Work and Pensions has announced that new planned powers will mean that money can be reclaimed from people who have committed fraud and are not on benefits or PAYE.

Ministers are gearing up to roll out new legislation that will enable them to snatch back cash from bank accounts in cases of benefit fraud. The Department for Work and Pensions has revealed plans for fresh powers allowing the recovery of funds from individuals who have committed fraud and are neither on benefits nor part of the PAYE system.

Work and Pensions Secretary Liz Kendall has declared that the upcoming laws will "make sure" those who "seek to cheat" the welfare system face consequences.

The Government insists these powers will be a last-ditch effort, granting the ability to reclaim debts from those who can pay but refuse to do so. The DWP has assured that protective measures and oversight will be in place, with staff being trained on how to wield these new powers responsibly.

Liz Kendall, Secretary of State for Work and Pensions, stated: "This Government will not tolerate fraud and waste in the welfare system as we make it fit for the 21st 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 to benefit claimants so that hardworking families up and down the country know their money is being protected."

Meanwhile, the Conservatives have slammed the announcement as a mere distraction tactic by the Government amidst a flurry of negative press. .

Helen Whately, the Shadow Work and Pensions Secretary, asserted: "The Chancellor is clearly desperate to find any savings ahead of what may in fact be a mini-budget because she needs to repair the damage she has inflicted with her disastrous budget last year."

James Smith