DWP gains power to recover benefit debts from bank accounts

Summarised from 4 outlets · Updated 22 Oct, 09:28 · Archive

The Department for Work and Pensions can now recover certain benefit debts directly from bank accounts without a court order.

The Department for Work and Pensions has introduced new powers to recover outstanding benefit debts directly from bank accounts without first obtaining a court order. Under the Public Authorities (Fraud, Error and Recovery) Act 2025, the department can order a bank to make regular deductions or take a specified lump sum from an eligible account. The legislation also gives the DWP new enforcement powers against people who have stopped claiming benefits and are not in employment, where repayments can be taken through Pay As You Earn (PAYE).

The changes target people who are no longer receiving benefits and whose debts cannot be recovered through deductions from ongoing benefit payments or PAYE earnings. The DWP said it previously had limited options to recover money from people in these circumstances if they refused to repay voluntarily.

The DWP began writing to people with outstanding debts on 24 June, warning them that the new powers could be used to recover money owed. In its letters, the department said the action 'can be avoided entirely by getting in touch with DWP within the next four months'. The four-month deadline from 24 June falls on 24 October.

Thousands of people who previously claimed benefits are affected. Anyone who has received a letter about an outstanding benefit debt is being urged to contact the Department for Work and Pensions. Those who received letters should check the deadline stated in their correspondence and contact the department if they have not already done so.

How it is being reported

• Got a letter from the DWP? Your bank account could be affected within daysThe DWP can recover certain benefit debts directly from bank accounts without a court order. Find out who is affected and what to do if you receive a letter.NW Evening Mail · 22 Oct, 09:16
• Got a letter from the DWP? Your bank account could be affected within daysThe DWP can recover certain benefit debts directly from bank accounts without a court order. Find out who is affected and what to do if you receive a letter.News & Star · 22 Oct, 09:16
• Got a letter from the DWP? Your bank account could be affected within daysThe DWP can recover certain benefit debts directly from bank accounts without a court order. Find out who is affected and what to do if you receive a letter.Westmorland Gazette · 22 Oct, 09:16
• Got a letter from the DWP? Your bank account could be affected within daysThe DWP can recover certain benefit debts directly from bank accounts without a court order. Find out who is affected and what to do if you receive a letter.Whitehaven News · 22 Oct, 09:16

In this story: Department for Work and Pensions · Public Authorities (Fraud, Error and Recovery) Act 2025

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