Benefit cheats to be charged under Fraud Act for tougher penalties

The worst benefit cheats could face up to ten years in jail under tough new guidelines announced by the Director of Public Prosecutions.

Keir Starmer QC said the changes created a “tough stance” on benefit cheats, with prosecutions under the Fraud Act 2006 which provides for harsher punishment for the crime which costs the British taxpayer £1.9 billion per year.

Under specific social security legislation, benefit fraudsters could receive up to a maximum of seven years in jail, but the Fraud Act offers possible sentences of up to ten years behind bars. The threshold of £20,000 before a case would be heard by the Crown Court has also been abolished.

The guidelines set out the factors that prosecutors should take into account when advising the court on allocation – whether to send cases to the Crown Court – and also act as the aggravating factors that prosecutors will draw to the sentencing court’s attention. These include:

whether the fraud was professionally planned
whether the fraud was carried out over a significant period of time
whether multiple frauds occurred (multiple frauds include where one false declaration or a failure to disclose a change of circumstances results in multiple payments)
use of a false or stolen identity
relevant previous convictions/cautions/previous out of court disposals for benefit fraud
an attempt to conceal or dispose of evidence
abuse of a position of trust
substantial consequential loss to public funds

Today’s guidance follows the merger of the DWP Prosecutions Division with the CPS in April 2012 and the transfer of prosecutorial staff to the CPS Welfare, Rural and Health Division.

Speaking on the new rules, Starmer said:

“It is a myth that ‘getting one over on the system’ is a victimless crime: the truth is we all pay the price. But it’s not only taxpayers that suffer. Benefits exist to protect and support the most vulnerable people in our society and whenever the system is defrauded, it’s also taking money away from those with a genuine need.”