The Department for Work and Pensions has warned anyone receiving it could be on the end of an investigation
The Department for Work and Pensions (DWP) could issue some benefit claimants a letter which may eventually lead to a fine of up to £5,000.
When the DWP, as well as HM Revenue and Customs (HMRC), suspect a claimant of purposefully committing benefit fraud, they will begin an investigation. As part of the investigation, benefit payments may be paused, with a letter also being sent to inform the claimants of when that will take place.
Furthermore, claimants could receive a visit from Fraud Investigation Officers or be asked to attend an “interview under caution” in which the claimant’s benefits will be discussed.. As facts around the suspected fraud are gathered, it will be up to the officers to decide whether further action should be taken or not.
While undergoing an interview, the claimant will be recorded which could later become part of a criminal investigation. A letter will also be sent out to invite the claimant to attend the interview.
Guidance from Citizens Advice cautions claimants who receive this letter to get a solicitor that can support them while they’re under investigation. Solicitors can also provide explanations on their case as well as advise on what actions should be taken.
If it is decided that the claimant had either committed or attempted benefit fraud, they could be asked to pay back any benefit payments which were overpaid, be taken to court, or asked to pay a penalty which can range between £350 and £5,000.
Benefits that could be reduced or stopped
If a claimant is found to have either committed or attempted to commit benefit fraud, they could also have their benefits reduced or outright stopped for up to three years. However, the time this is in place could be less depending on how many times the claimant committed fraud.
Furthermore, official guidance highlights that only certain benefits can be subjected to reductions or freezes – known as ‘sanctionable benefits. If the claimant is found to have committed fraud on a benefit that is non-sanctionable, they may instead see their other benefits affected.
The GOV.UK website lists the following benefits as being eligible for sanctions:
- Industrial Injuries Disablement Benefit
- Industrial Death Benefit
- Employment and Support Allowance
- Industrial Injuries Reduced Earnings Allowance
- Severe Disablement Allowance
- Incapacity Benefit
- Universal Credit
- Industrial Injuries Retirement Allowance
- Jobseeker’s Allowance
- War Disablement Pension
- Widowed Mother’s/Parent’s Allowance
- Housing Benefit
- War Pension Unemployability Supplement
- Industrial Injuries Unemployability Supplement
- Pension Credit
- Carer’s Allowance
- Working Tax Credit
- War Widow’s Pension
- War Pension Allowance for Lower Standard of Occupation
- Income Support
Full details on the benefits and payments subject to benefit fraud penalties can be found here.