DWP Faces Major Budget Cuts as Government Targets Benefits and Welfare Fraud Crackdown
The Department for Work and Pensions (DWP), responsible for Universal Credit and PIP, is set to face significant budget cuts, according to BBC reports. The Chancellor has ordered departments to make billions of pounds in spending reductions, and the DWP is feeling the pinch ahead of the spring statement.
The cuts are expected to be outlined on March 26, but the proposals will be reviewed by the Office for Budget Responsibility (OBR) today. Back in October, the Chancellor had £9.9 billion to spend, but it seems that sum has evaporated due to inflation, tariffs, and rising borrowing costs.
In response to the rising budget pressures, the Government is pushing forward with plans to reduce spending on health and disability benefits. This could result in hundreds of thousands of people losing their benefits, as part of an ongoing effort to cut government spending and encourage people to return to work.
A government insider told the BBC, “Clearly the world has changed a lot since the Autumn Budget. People are watching that change happen before their eyes. The Office for Budget Responsibility will reflect that changing world in its forecasts later this month, and a changing world will be a core feature of the Chancellor’s response later this month.”
Additionally, Cabinet Office Minister Pat McFadden and Health Secretary Wes Streeting are expected to announce “significant efficiency” cuts, focusing on saving costs in the NHS and civil service.
The Chancellor’s office has made it clear that they are determined to make Britain more secure and prosperous through these measures, with all levels of government rallying behind the plan.
Another major step for the DWP is the introduction of new powers aimed at tackling welfare fraud. The department wants the ability to disqualify fraudsters from driving and recover funds directly from their bank accounts. Employment minister Alison McGovern expressed confidence in the new measures, saying that being able to go to court and apply for driving bans against those who refuse to repay fraudulent benefits would help address the issue.
If the Bill passes, fraudsters could face a driving ban of up to two years if they owe more than £1,000 and refuse to pay it back. The DWP will also gain the ability to request bank statements from those suspected of having the means to repay their debts but have ignored previous repayment requests. However, the DWP insists that it will not have direct access to individuals’ bank accounts.
Work and Pensions Secretary Liz Kendall said, “We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money.”
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