Benefit fraudsters to have cash taken straight from their bank account as ministers seek to crack down on 'cheats'

19 January 2025, 07:58

Benefit fraudsters will have money taken directly from their bank account as Labour seek to crack down on welfare "cheats".

The Department for Work and Pensions has announced that new planned powers will mean that money can be reclaimed from people who have committed fraud and are not on benefits or PAYE.

Work and Pensions Secretary Liz Kendall has said that legislation will "make sure" that people who "seek to cheat" the system are held accountable.

The powers will be used as a last resort, the Government says, and will allow the ability to recover debt from people who have the means but have refused to pay money back.

The DWP has said that there will be safeguarding and oversight measures introduced and staff will receive training on the use of any new powers.

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Secretary of State for Work and Pensions Liz Kendall, said: "This Government will not tolerate fraud and waste in the welfare system as we make it fit for the 21st century as part of our plan for change.

"The public expects this of us, and we are delivering for them.

"People who seek to cheat the system should know, our new powers will help us to catch you out and make sure you are held accountable.

"We will also introduce new powers to minimise overpayments to benefit claimants so that hardworking families up and down the country know their money is being protected."

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The Conservatives have claimed the announcement is the Government trying to "distract" from negative headlines.

Helen Whately MP, shadow work and pensions secretary, said: "The Chancellor is clearly desperate to find any savings ahead of what may in fact be a mini-budget because she needs to repair the damage she has inflicted with her disastrous budget last year."