People who repeatedly refuse to repay benefit debts could face tougher consequences under new UK welfare enforcement powers, including the possibility of losing their driving licence and having money recovered directly from their bank account.
The new powers, introduced under the Public Authorities (Fraud, Error and Recovery) Act 2025, allow the Department for Work and Pensions (DWP) to strengthen how it recovers unpaid benefit debts from people who have stopped claiming benefits but continue to refuse repayment despite having the means to pay. The Government says the reforms are part of its plan to recover £14.6 billion over the next five years through welfare fraud, error, and debt activity.