DWP confirms strict new punishment from October for all benefits it pays out

NewsCost Of LivingDWPEXCLUSIVE: The DWP has confirmed the new powers14:20, 04 Aug 2026The Department for Work and Pensions has confirmed a strict new punishment for benefits claimants from October. Under the Labour Party government, the DWP will get tougher debt recovery powers under the PAFER Act.‌The powers – part of a new Act – will allow the DWP to recover money from people who have stopped claiming benefits but still owe outstanding debts. The tough clampdown could include people being banned from driving and direct deductions from their bank accounts.‌The DWP told BirminghamLive: "They will apply to ALL benefit overpayment debts, together with advances and some overpayments of tax credits."‌READ MORE Andy Burnham told to scrap two HMRC tax rates in favour of three new bandsCourts wil