What happens to people that are caught?

Benefit Fraud is taken very seriously. Around 10,000 people are prosecuted and convicted every year for benefit fraud offences.

Where we believe that there is sufficient evidence to prosecute, the Council will consider, in accordance with its Prosecution Policy, what further action will be taken.

Housing and Council Tax Benefit Anti-Fraud Prosecution Policy (PDF 43Kb)

The options are as follows:

The offender is interviewed by a Council officer and advised that their conduct amounted to an offence, but that on this occasion the Council is prepared to offer a Caution as an alternative to prosecution.  A Police record will be kept of the caution, but it is not a conviction.  To receive a Caution the offender must agree to receive it and have admitted the offence when interviewed under caution.

The offender is interviewed by a Council Officer and advised that their conduct amounted to an offence but, that on this occasion, the Council is prepared to offer an Administrative Penalty as an alternative to prosecution.  The Administrative Penalty imposed will amount to a sum equal to 30% of the amount of benefit that has been overpaid (this percentage is fixed by law and is not negotiable).  The offender will be asked to sign a formal agreement.  This will mean that in addition to repaying the benefit overpaid they will have to pay this additional sum.

Note:  A Formal Caution and an Administrative Penalty are alternatives to prosecution.  If the offender is offered one of these alternatives and refuses it the Council retains the right to prosecute.

Where the Council believes that it has sufficient evidence, and the offence is serious, it can prosecute the offender in the criminal courts.  Usually, prosecution cases are heard in the Magistrates' Courts, but more serious cases are heard in the Crown Court.  If found guilty, e.g. under The Social Security (Fraud) Act 1997, fines of up to £5,000 and/or imprisonment, maximum six months if sentenced by a Magistrates' Court, or a maximum of seven years and unlimited fine if sentenced by a Crown Court.

In addition, people must repay the full amount they receive from benefits that had been fraudulently claimed.