Thursday 29 Jan 2015 @ 14:15
Department for Work and Pensions
Printable version

Benefit fraud clampdown as maximum penalty to be more than doubled

Plans to more than double the maximum administrative penalty that can be offered as an alternative to prosecution for benefit fraud are to be considered by Parliament today.

The changes, if approved by MPs, will mean penalties of up to £5,000 can be issued. This will be in addition to recovery of any money falsely claimed, plus a 4 week loss of benefits. The maximum administrative penalty currently stands at £2,000.

Those suspected of the most serious offences will continue to face prosecution but ministers want the option of a much larger administrative penalty to give enforcement agencies greater flexibility in the way they tackle benefit fraud.

Work and Pensions Minister, Mark Harper, said:

The amount of money lost to benefit fraud stands at some £1.2 billion – cash which otherwise could be spent on supporting those in genuine need, improving public services or reducing people’s taxes.

There are still too many people who continue to ignore the warnings and steal from the benefits system. They deserve to pay a heavy price for doing so and that is why we are taking action. I hope this new measure attracts widespread support in the Commons.

The proposed new arrangements will see administrative penalties set at 50% of the benefit an individual has been overpaid, up to the new maximum figure. Therefore, this change will affect cases where a sum of more than £4,000 has been overpaid.

Penalties will only be levied in cases where there would be sufficient evidence to pursue a prosecution for benefit fraud – not in cases of genuine mistakes or error.

DWP’s existing debt recovery processes will continue, meaning penalties and overpayments can be recovered from benefits, deducted from earnings or reclaimed through other means.

More information

The draft Social Security (Penalty and Alternative to Prosecution) (Maximum Amount) Order 2015 is due to be debated in the House of Commons on Thursday 29 January.

Read more about benefit fraud and investigations

Contact Press Office

Media enquiries for this press release – 0203 267 5106

Press Office

Caxton House 
Tothill Street
London
SW1H 9NA

London Press Office (national media and London area enquiries only – not questions about personal claims) 020 3267 5144

Out-of-hours (journalists only) 076 59 108 883

England and Wales (local media enquiries) 029 20 586 then 097 or 098 or 099

Scotland (local media enquiries) 0131 310 1122

Follow DWP on:

 

Channel website: https://www.gov.uk/government/organisations/department-for-work-pensions

Share this article

Latest News from
Department for Work and Pensions

Back to work boost as quarter of a million workplace training places delivered

17/04/2024 15:10:00

More than a quarter of a million workplace training places for benefit claimants have been delivered in just three years, new data reveals.

£1.5 Million investment to improve in-work health services as part of government drive to tackle inactivity

15/04/2024 12:10:00

Reforms to occupational health services will be shaped through a £1.5m innovation fund, as the government continues its drive to tackle in work sickness and boost economic activity using new technology and artificial intelligence.

Working parents on Universal Credit set receive up to £20,872 a year in childcare support

10/04/2024 16:20:00

Parents on Universal Credit can now receive up to £1,311 more a year in childcare support following a 6.7% boost coming into effect, as the government’s expansion of free childcare for working parents delivers 150,000 places in a week.

Fraudsters behind £53.9 million benefits scam brought to justice in country’s largest benefit fraud case

10/04/2024 14:15:00

A group who stole over £50 million of taxpayers’ money has been brought to justice in the largest ever benefit fraud case in England and Wales.

Government reaffirms commitment to backing pensioners with £900 rise to state pension

10/04/2024 10:10:10

The State Pension is increasing by 8.5 percent as part of the Government’s commitment to support pensioners in retirement.

Half a million more benefit claimants set to benefit from back to work support as Universal Credit expands

10/04/2024 09:20:00

Half a million people claiming old benefits will be invited to claim Universal Credit, unlocking all the work support it offers.

New guide published to help businesses boost disabled people’s prospects at work

09/04/2024 12:20:00

A new Disability Confident guide for managers helping them recruit, retain, and foster the progression of disabled people and those with health conditions in the workplace has been published today by the Department for Work and Pensions (DWP).

£5 billion in support for energy bills paid this Winter

05/04/2024 15:25:00

An estimated £5 billion in support has been paid throughout Winter to help families with energy costs.

New laws to cut migration and put British workers first in force

05/04/2024 12:12:00

Changes that are now in force will slash migration and prevent the undercutting of British workers by employers looking to recruit cheap labour from overseas.