Picture: DVLA

Benefits cheats could lose their driving licence under new laws to crack down on fraud.

People who regularly make false claims – and have debts of £1000 plus – face a two-year driving ban.

Work and Pensions Secretary Liz Kendall said the legislation would mean “greater consequences for fraudsters who cheat and evade the system”.

Employment Minister Alison McGovern told the BBC:

“It’s not ok to steal from social security – this is money we all might rely on, whether for our state pensions or to stop our kids growing up in poverty.

“At this time when the NHS is crying out for money… we cannot allow any money to be lost from social security through fraud.”

Ministers also want increased access to people’s banking data.

Helping DWP investigators find suspect claims more effectively could save taxpayers £1.6bn over five years.

However, campaign groups warn the right to access will invade claimants’ privacy.

Helen Whately, the shadow work and pensions secretary said:

“This bill is a continuation of work started by the previous government.

“Labour must do more to tackle the spiralling welfare budget”.