The change forms part of the Public Authorities (Fraud, Error and Recovery) Act 2025, which gives the DWP wider powers to recover money obtained through fraudulent benefit claims. According to the department, the measures are aimed at people who have failed to repay debts despite having the means to do so, rather than at benefit recipients generally.
Courts Can Impose Driving Bans of up to Two Years
The DWP cannot itself remove a person’s driving licence. Instead, it can apply to a court for an order disqualifying an individual from driving, with an immediate disqualification lasting no longer than two years.
According to the legislation described by the DWP, the power can be considered only where the outstanding balance is at least £1,000 and recovering the debt through another method is not reasonably possible. Before making an order, the court must determine whether the individual had the means to repay the debt but failed to do so without a reasonable excuse.
The rules also place limits on when a driving ban can be imposed. A court cannot issue the order if it considers that the person has an essential need to drive, including where driving is necessary for earning a living. The individual is responsible for making that need clear to the court.
The DWP’s code of practice also states that the department cannot use the driving disqualification power against someone who, at the time of the application, is entitled to and receiving a DWP benefit.
People facing enforcement can avoid further proceedings by repaying the outstanding amount in full or by arranging and maintaining an affordable repayment plan with the department.
According to the DWP, if an immediate disqualification order is revoked within 56 days because the debt has been repaid in full, the person may be able to have their licence returned or replaced by the Driver and Vehicle Licensing Agency without paying a fee. Where a ban lasts longer than 56 days, a fresh application to the DVLA is required and a charge applies.
New Recovery Powers Also Extend to Money Held in Bank Accounts
The driving disqualification measure sits alongside broader debt-recovery powers introduced under the same legislation. From 1 October, officials can also recover money owed directly from an individual’s bank account without first obtaining a court order.
The government has presented the changes as part of a wider effort to recover money lost through fraudulent benefit claims. According to DevonLive, Universal Credit, Pension Credit and Employment and Support Allowance were identified as the three benefits with the highest levels of fraud.
Work and Pensions Minister for Transformation Andrew Western said the new powers were intended to pursue people who deliberately avoid repaying money they owe while maintaining repayment arrangements for those willing to engage with the department.
The DWP has also said that more than one immediate disqualification order may be imposed in some cases where a person repeatedly breaches a suspended order by failing to pay without reasonable excuse. Although each immediate order is capped at two years, this means the total period without a licence could exceed two years across separate orders.
Once the debt has been repaid in full, the DWP must apply for an immediate disqualification order to be revoked and notify the court, which in turn informs the DVLA that the order has ended.
