Keir Starmer's government is under internal pressure due to proposed measures to combat welfare fraud, including direct bank deductions and driving licence cancellations. The Department for Work and Pensions aims to recover £9.7 billion lost to fraud and errors. A new fraud, error, and recovery bill would assist in identifying those ineligible for benefits by accessing bank data. However, Labour MP Neil Duncan-Jordan leads opposition within Starmer's party, advocating amendments to limit measures to suspected fraud cases only and eliminate driving licence penalties linked to debt, arguing it unfairly targets the vulnerable.
In an attempt to claw back the annual 9.7bn in benefit overpayments, the DWP plans direct deductions from bank accounts and driving licence cancellations.
Liz Kendall claims the powers are necessary for a broken welfare system, yet her plan faces significant rebellion from within her party.
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