Overview
- Ministers have begun a consultation and ‘test and learn’ rollout that lets the DWP verify claims using limited information supplied by banks.
- The Public Authorities (Fraud, Error and Recovery) Act 2025 enables the department to issue direct deduction orders to recover unpaid benefit debts from bank accounts.
- In the most serious repayment‑evasion cases, the DWP can ask a court to impose a temporary driving‑licence disqualification.
- The first phase targets Universal Credit, Employment and Support Allowance and Pension Credit.
- The DWP says it will not have direct access to bank accounts and projects £2.1 billion in five‑year savings, as MPs and campaigners press for safeguards to avoid false flags and protect vulnerable claimants.