The Department for Work and Pensions (DWP) may send out letters to some benefit claimants that could ultimately result in a fine of up to £5,000.
If the DWP and HM Revenue and Customs (HMRC) suspect a claimant of deliberately committing benefit fraud, they initiate an investigation. During this process, benefit payments might be stopped, and claimants will receive a letter notifying them when this will happen.
Additionally, claimants might be visited by Fraud Investigation Officers or summoned to an “interview under caution” where their benefits will be scrutinised. As evidence of the alleged fraud is collected, it’s up to the officers to determine if further action is warranted.
During the interview, which will be recorded and may contribute to a criminal investigation, the claimant will be informed about the proceedings through a letter inviting them to attend.
Citizens Advice offers guidance advising claimants who get such a letter to seek legal support. A solicitor can assist during the investigation, provide explanations about the case, and advise on the next steps.
Should the investigation conclude that the claimant has committed or attempted benefit fraud, they may have to repay any overpaid benefits, face court proceedings, or pay a penalty ranging from £350 to £5,000.
If a claimant is discovered to have committed or attempted to commit benefit fraud, their benefits could be reduced or completely stopped for up to three years. However, the duration of this penalty could vary depending on the number of times the claimant has committed fraud.
Moreover, official guidelines indicate that only certain benefits can be subjected to reductions or freezes – these are referred to as ‘sanctionable’ benefits. If the claimant is found to have committed fraud on a non-sanctionable benefit, their other benefits may be impacted instead.
The GOV.UK website identifies the following benefits as sanctionable:
Complete information on the benefits and payments subject to benefit fraud penalties can be found here.
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