Benefit claimants who receive a specific letter could be under investigation for potential benefit fraud, with a fine of up to £5,000 possible. As part of efforts to tackle suspected fraud, the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) may pause benefit payments and issue formal notifications to claimants, alerting them to the potential legal consequences if fraud is confirmed.
The investigation may also include a visit from Fraud Investigation Officers (FOIs) or an “interview under caution,” during which the claimant’s benefits will be examined. FIOs will gather facts about the case and decide whether to take further action.
Claimants should know that any interview could be recorded and potentially used in a criminal investigation.
Citizens Advice recommends that claimants facing this situation seek legal advice, as solicitors can offer support, explain the process, and advise on the best course of action.
If fraud is confirmed, the claimant could be required to repay any overpaid benefits, face legal action, or be fined between £350 and £5,000.
In some cases, depending on the severity and frequency of the fraud, benefits may be reduced or stopped for up to three years. The amount of time they’re stopped depends on how many times you’ve committed fraud.
However, only certain benefits can be reduced or stopped. These are called ‘sanctionable benefits’. But if you commit fraud on a benefit that cannot be reduced or stopped, your other benefits can be reduced instead.
The following benefits can be reduced or stopped if you commit benefit fraud:
- Carer’s Allowance
- Employment and Support Allowance
- Housing Benefit
- Incapacity Benefit
- Income Support
- Industrial Death Benefit
- Industrial Injuries Disablement Benefit
- Industrial Injuries Reduced Earnings Allowance
- Industrial Injuries Retirement Allowance
- Industrial Injuries Unemployability Supplement
- Jobseeker’s Allowance
- Severe Disablement Allowance
- Pension Credit
- Universal Credit
- War Disablement Pension
- War Widow’s Pension
- War Pension Unemployability Supplement
- War Pension Allowance for Lower Standard of Occupation
- Widowed Mother’s/Parent’s Allowance
- Working Tax Credit.
