21 Feb 2012

DWP issues warning for "living together" fraudsters

People who commit 'living together' benefit fraud are being warned they face tough new sanctions under the welfare reform bill, currently going through Parliament.

People who tell the DWP they are single parents to get Income Support and Jobseekers Allowance, but are actually secretly living with someone as husband and wife, cost the taxpayer nearly £100m in overpaid benefits, even on the government's figures, which would make it one of the most frequently committed benefit frauds. Just ten recent cases have cost the taxpayer over £1m.

Ministers are also warning women that it is often they who face prosecution as the claims are invariably in their names. Despite their partners often encouraging the fraud, they often escape punishment.

Powers in the Bill will introduce tougher penalties for both fraud and error: a minimum administrative penalty of £350, or 50% of the overpayment, whichever is higher, with four weeks loss of benefit; extended loss of benefit for offences which result in a conviction of up to 13 weeks for a first offence, then 26 weeks for a second offence and 3 years for a third offence; an immediate 3 year loss of benefit for serious or organised benefit fraud or identity fraud; and a new £50 civil penalty in cases of claimant error which results in an overpayment as a result of negligence or failure.

1 comments:

Anonymous said...

I know someone who has filed single mom but is living with her boyfriend just to get money from the government. Does government investigate about these issues?