What is the punishment for benefit fraud?

The punishment for benefit fraud varies and is dependent on the seriousness of the offence, mitigating circumstances and other factors. Therefore, each case is different. A case could be dealt with in one of three ways.

In the case of a first offence, it is sometimes possible to be given a caution if you admit to the offence. However, this only happens if the amount that has been over claimed is small. Naturally, this option appeals to most offenders. However, there are consequences to taking a caution for committing benefit fraud, especially if you re-offend. Therefore, accepting a caution is not something you should do without taking legal advice.

Where the amount that has been falsely claimed is slightly higher, taking the Administrative Penalty route may be possible. In this situation, the accused needs to repay the amount over claimed and a penalty of 30% of the amount that has been falsely claimed. Anyone who refuses the offer of an Administrative Penalty is prosecuted.

Cases that are more serious or those of people who have declined to take the Administrative Penalty or Formal Caution route are prosecuted via the criminal courts. For these, the punishment is much more severe. Each case is different and judges rule in slightly different ways, so it is hard to say what the punishment will be prior to the actual sentencing.

In virtually every case, where there is a conviction, the sentence includes the person paying back the amount over claimed, a heavy fine and legal fees. Prison sentences of between a few weeks and seven years can also be handed out by the courts. In some cases, the Proceeds of Crime Act 2002 can also be used to seize assets. The person being prosecuted will also end up with a criminal record, if found guilty. That criminal record will stop them from working in certain fields and may affect how easy it is for them to get credit or find new accommodation.

Given the fact that the punishments handed down for benefit fraud are potentially serious, it always makes sense to seek proper legal advice from a firm like Hylton Potts.