BENEFIT FRAUD



What Is Benefit Fraud?


Many people think that benefit theft only applies to people working 'cash in hand' whilst claiming Jobseeker’s Allowance. This is not the case, as there are a number of types of benefit theft, including: .

• Not telling the DWP that you are now living with a partner
• Not telling the DWP that you are receiving other benefits Not telling the DWP about any savings, or not disclosing the right amount
• Claiming for children who have left the home
• Not telling the DWP that you have started work, or about any earnings
• Not telling the DWP that you have inherited money
• Not telling the DWP that you are going abroad, living abroad, or have changed address..

People who knowingly withhold information, or deliberately fail to notify the DWP of any changes in their circumstances are benefit thieves.

Department For Work & Pensions


The Department for Work and Pensions (DWP) takes benefit theft very seriously. As part of their ongoing approach, DWP is committed to making benefit theft harder to achieve, and are determined to not only catch benefit thieves, but also detect them. DWP has set targets for reducing the amount of money lost through benefit theft. They have a professionally trained Fraud Investigation Service with powers to investigate people suspected of all types of benefit theft, and can even conduct interviews under caution in the same way as police.

Although the vast majority of people who claim benefits are honest citizens, those who commit benefit theft are stealing from the pockets of law-abiding taxpayers. In 2006-07 it is estimated that benefit thieves stole £700 million from public funds. That's why the DWP is determined to stop benefit thieves.

All benefit theft is a crime. Those found breaking the law face a criminal record.

 

How Are Benefit Thieves Caught?


The DWP now has more ways of identifying and tracking down benefit thieves:

• Through nationwide undercover investigation teams
• Through a National Benefit Fraud Hotline. This hotline receives hundreds of calls everyday in confidence from people reporting suspected benefit thieves
• Through Government computer systems that compare information and check if people are entitled to their benefit. In recent months, thousands of inconsistencies were identified by these computer systems for further investigation
• Through Local Authorities who hold all information regarding Housing and Council Tax Benefit
• Through HM Revenue & Customs who hold all information regarding people claiming social security benefits. This information includes details about tax credits, income, investments and savings, and national insurance contributions
• Through the Home Office who supply data regarding nationalities and passports
• Through banks where the DWP can apply for information about people’s bank accounts
• Through household utility companies, such as fuel and water companies, where the DWP can apply for information about people's bills

 

What Are The Penalties For Benefit Theft?


Individuals who are suspected of benefit theft could face

• Paying all the money back
• Having a taped interview under caution
• Prosecution
• A fine
• A criminal record
• Social stigma.

If you know of anyone committing benefit theft, you can report a benefit thief online by visiting the Department For Work & Pensions Website.

Alternatively, you can call the National Benefit Fraud Hotline – free and in confidence - on 0800 854 440. Lines are open 7.00am - 11.00pm, 7 days a week.

 

If Your Circumstances Have Changed


You need to report any changes in your circumstances to the DWP straight away, by contacting the office that pays your benefit. If you are in receipt of Housing Benefit or Council Tax Benefit, remember to also inform your local council of any changes too.