Benefit Fraud
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What is Benefit Fraud?
Benefit fraud is a criminal offence. It is not the same as benefit overpayments which can arise for a variety of reasons. Benefit overpayments are not necessarily fraud but can be issues which run parallel to a fraud investigation. The confusion is understandable: the benefit system and criteria for eligibility can often be tricky to navigate.
If a person has acted dishonestly or deliberately to claim benefits (often in the form of financial, medical or food assistance) to which he or she is not entitled and this comes to the attention of the office paying the benefit, an investigation for benefit fraud may follow.
Examples of benefit fraud can include the following:
- Deliberately failing to tell the benefit office about true financial circumstances at the time benefit was claimed. For example, working whilst claiming Jobseeker’s Allowance or a failure to declare all savings knowing a higher amount would affect entitlement to the benefit received.
- Deliberately failing to tell the benefit office the true household circumstances. For example, living with someone but claiming benefits as a lone parent
- Using a false identity or using false documents to claim benefits. For example, using a false birth certificate so Child Benefit can be claimed.
- Deliberately not telling the benefit office about a change of circumstances knowing this would affect entitlement to benefit.
Interviews
If an individual is accused of benefit fraud, he or she may either be invited an interview or told to attend court. Before attending an interview or court, any suspect is advised to consult a benefit fraud solicitor so that the precise alleged offence is ascertained and advice given as to the appropriate form of action to take.
If the fraud investigators already think a benefit offence has been committed, they are more likely to interview under caution, during the course of which anything said could then be used as evidence in court. This should be explained at the start of the interview.
Prosecutions
Following investigation, an individual can be prosecuted for a number of offences. The allegation or allegations a Defendant in these proceedings might face will vary depending on the factual background of the case and can range from failing to report employment status or failing to report a change in eligibility status up to fraud conspiracy.
If a Defendant is convicted, then the court can hand down a sentence ranging from anywhere from a fine up to and including a custodial sentence. After sentence, where it is appropriate, civil confiscation proceedings may be instituted by the Prosecuting Authority in order to deprive a convicted Defendant of the amount he or she has gained from criminal activity.
Challenging the Amount of Overpayment
There is often a dispute over how any alleged fraud has been calculated and there may be instances where expert evidence is obtained to examine the accuracy of overpayments alleged. The amount concerned is relevant to whether a decision is made to prosecute, the appropriate court to try the case, the sentence given and any subsequent confiscation proceedings.
