From October, three key Department for Work and Pensions (DWP) benefits will be subject to intensified enforcement measures under the leadership of Prime Minister Andy Burnham. The action comes as Mr Burnham inherits oversight of the Public Authorities Fraud, Error and Recovery Bill, initially announced under Sir Keir Starmer’s government.
The new Act empowers the DWP to recover funds directly from the bank accounts of benefits claimants suspected of fraud, eliminating the need for a court order. In addition, it authorises the revocation of driving licences for individuals suspected of benefit debt, fraud, or error.
The crackdown focuses on three specific benefits known for having the highest rates of fraud, error, and overpayment: Universal Credit, Pension Credit, and Employment and Support Allowance.
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This legislation equips the DWP with enhanced powers to detect incorrect payments early and prevent the accumulation of overpayments and related debt. To facilitate this, the DWP will issue notices to financial institutions requesting specific data relevant to eligibility verification for the targeted benefits. Financial institutions are obliged to comply strictly with the information requests, providing only what is specified in the notice.
A spokesperson for the DWP stated: “Under the Public Authorities (Fraud, Error and Recovery) Act 2025, the most significant welfare debt crackdown in a generation, the DWP can now reclaim owed funds directly from bank accounts without first obtaining a court order.”
Work and Pensions Minister for Transformation, Andrew Western, emphasised the government’s position:
“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.”
These changes mark a significant tightening of welfare enforcement as the government seeks to safeguard public funds and uphold the integrity of the benefits system.