Benefit fraudsters could be banned from driving and subject to bank account snooping if they fail to pay back the taxpayer, under a new government crackdown.

In an effort to curb welfare fraud, the Department of Work and Pensions (DWP) has launched what has been dubbed the biggest fraud crackdown in a generation.

The Public Authorities (Fraud, Error and Recovery) Bill would introduce new measures, including allowing the government to recover money directly from fraudsters’ bank accounts.

It is due to be introduced to parliament on Wednesday and the DWP estimates it could help save the taxpayer £1.5bn over the next five years.

According to government figures, around £8.6bn was lost to fraud and error overpayments in the financial year ending in April 2024.

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Once the bill is made law, benefit cheats could be banned from driving for up to two years if they refuse to pay back the money they owe.

Courts could also suspend their driving licences following an application if they have debts of £1,000 or more and repayment requests are ignored.

The DWP will also have the power to get bank statements from people who it believes have enough cash to pay back the debts but are refusing to do so.

“We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money,” Work and Pensions Secretary Liz Kendall said.

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She added: “This means greater consequences for fraudsters who cheat and evade the system, including as a last resort in the most serious cases removing their driving licence.

“Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely.

“People need to have confidence the government is opening all available doors to tackle fraud and eliminate waste, as we continue the most ambitious programme for government in a generation – with a laser-like focus on outcomes which will make the biggest difference to their lives as part of our Plan for Change.”

There was a significant spike in fraud and error-related benefit overpayments during the COVID pandemic.

Rates nearly doubled from the financial year ending April 2021 to their peak in 2023 at around 4% of the total amount of benefit paid by the department.

The incoming bill will grant more powers to tackle this COVID-era fraud.

Helen Whately, the shadow work and pensions secretary, claimed the laws were a “continuation” of Conservative efforts.

She added: “But having knowingly appointed a convicted fraudster to his cabinet, Keir Starmer cannot be trusted to get tough on fraud.”

Ms Whately was referring to former transport secretary Louise Haigh, who was forced to resign from the cabinet after it was revealed that in 2013 she had lied to police over a work phone she had said was stolen in a mugging.

Two teenage boys have been charged with rape, in Hampshire.

The incident is alleged to have taken place at Fordingbridge recreation ground on the evening of 17 January.

Hampshire Police said that both boys, who cannot be named for legal reasons, were from Fordingbridge and aged 14.

One, police said, had been charged with rape, threats to kill, possession of a knife in a public place and kidnap/falsely imprisoning a person with intent to commit a relevant sexual offence.

The second has been charged with rape, threats to kill and kidnap.

A third boy, aged 13 from Romsey, was released on conditional bail pending further police inquiries.

Both defendants have been sent to appear at Southampton Youth Court.

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A force spokesperson said: “Police were called at 10.41pm on Friday January 17, however the incident is suspected to have occurred earlier in the evening.

“The girl continues to be supported by specialist officers.”

Digital driving licences will be introduced later this year under plans to use technology to “overhaul” public services.

The licences will be available on a new government mobile phone app and will be accepted as a form of ID for buying restricted items like alcohol and for voting in elections, as well as proving someone’s right to drive.

Veteran cards will also be available on the “GOV.UK Wallet” app when it launches this summer, with DBS checks, Blue Badges and other government-issued credentials to come later down the line.

Science Secretary Peter Kyle said the app “will mean that every letter or identity document you receive from the government could be issued to you virtually”.

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The changes follow a report which found that public services were missing out on £45bn in productivity savings because of old and outdated technology.

The app will also aim to make using government services easier, such as applying for childcare and benefits, finding an apprenticeship or reporting a lost passport.

Other features will include notifications on new policy and service announcements, while an AI chatbot may be added in the future to help people find answers to “complex and niche questions”, the government said.

Physical documents will still be available, but the aim is that all government services will have to offer a digital alternative by the end of 2027.

The digital documents will make use of technology built into smartphones, like facial recognition, so they “will be more secure, even if a device is lost”, the government said.

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Mr Kyle added: “Along with CDs, the Walkman and flip phones, the overflowing drawer rammed with letters from the government and hours spent on hold to get a basic appointment will soon be consigned to history.

“GOV.UK Wallet will mean that every letter or identity document you receive from the government could be issued to you virtually.

“For people who choose to use GOV.UK Wallet, they will find it easier to prove they’re entitled to benefits or check their age when buying alcohol or DIY equipment, with more security and trust than ever before.”

Several countries have already introduced digital licences, including Australia, Denmark, Iceland and Norway, as well as some US states.

In the EU, every member state will be required to introduce at least one form of digital ID by 2026.

The announcement stops short of compulsory national ID cards, as pushed for by former Labour prime minister Sir Tony Blair and former Tory leader Lord William Hague.

The pair have previously joined forces to call for a new ID incorporating details such as a passport, driving licence, tax records, qualifications and right-to-work status, which could be stored on a mobile phone.

Sir Tony tried to introduce such a scheme when he was in power but it was scrapped by the coalition government.

He argued it could save the Treasury £2bn a year in the long run and help control migration, but the idea was swiftly ruled out by Labour after it won the general election in July.

Opponents of ID cards have raised concerns about privacy and what they see as unnecessary data collection by the state.