DWP gains powers to directly seize cash, impose fines in fraud crackdown

The UK Department for Work and Pensions (DWP) is set to introduce new powers aimed at combating benefit fraud, which currently costs taxpayers nearly £10 billion annually. Under the proposed Fraud, Error and Debt Bill, the DWP will have the authority to directly withdraw funds from claimants' bank accounts, impose fines of £300, and apply to courts to seize assets from those who owe debts due to fraud or error. Cabinet Under Secretary Georgina Gould emphasized that direct deduction orders will only be used after a thorough investigation by the Public Sector Fraud Authority confirms that money is owed. The DWP plans to notify claimants at least 28 days in advance before any deductions are made, and safeguards are in place to protect vulnerable individuals. The aim is to reclaim lost funds and redirect them towards essential public services. This crackdown also includes measures to improve awareness and training for DWP staff on identifying suspicious cases.