DWP powers to make direct deductions from the bank accounts of former claimants who owe them money and to apply to court for disqualification from driving orders begin from today.
The power to recover money directly from bank accounts only applies to people who are no longer claiming benefits or in PAYE employment and who have failed to pay back a debt to the DWP. It allows the DWP to deduct either a single lump sum or regular amounts from a bank account without first needing to apply to a court.
Under the new regulations, the DWP can also apply to the court for an order to suspend a debtor’s driving licence where they have attempted to recover a debt from a liable person, some or all of it has not been recovered and at least £1,000 is still owed.
A disqualification order cannot be made if the liable person needs a driving licence to earn a living or has another essential need for a driving licence, such as caring responsibilities.
The DWP will begin sending out letters to debtors from today and is allowing a four month window before it actually begins enforcement action using its new powers. Anyone receiving such a letter should seek help from an advice agency
The commencement order for the new powers is available here.
