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New regulations allow DWP to recover debt directly from bank accounts

The Social Security (Further Methods of Recovery) Regulations 2026 introduce new ways for the Department for Work and Pensions (DWP) to recover debt.

  • The new regulations allow for debt recovery via Direct Deduction Orders from bank accounts.
  • These methods will be used when existing benefit or PAYE routes are not effective.
  • Applications to magistrates' courts for driving disqualification are possible if bank account recovery fails.

The Social Security (Further Methods of Recovery) Regulations 2026 have been announced, outlining new methods for the Department for Work and Pensions (DWP) to recover outstanding debt. These regulations were the subject of an exchange of letters between Stephen Brien, chair of the Social Security Advisory Committee (SSAC), and Baroness Sherlock, the DWP Minister of State (Minister for Lords).

Under the new rules, the DWP can recover debt through Direct Deduction Orders from bank accounts. This method will be applied in situations where debt recovery cannot be achieved via existing benefit or PAYE (Pay As You Earn) routes.

Furthermore, if recovery from bank accounts proves unsuccessful, the regulations allow for applications to be made to the magistrates' court for disqualification from driving.

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