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What happens if you're suspected of benefit theft?

If you're suspected of committing benefit fraud you may be asked to attend an interview to discuss your claim. Your benefit may be suspended while the matter is looked into. If this happens, you should receive a letter telling you so.  

What is benefit theft?

Benefit fraud occurs if you deliberately fail to provide information, or provide incorrect information, in order to obtain benefit or increase the amount of benefit you receive. If you're prosecuted for benefit theft you could be fined or get a prison sentence. In all cases, you will have to pay the money back.

Examples of benefit theft

Benefit fraud is a criminal offence which may be committed in several ways, such as:

  • working while claiming benefit
  • living together
  • cashing benefit payment when not entitled to do so
  • multiple-identity fraud
  • Housing Benefit fraud
  • falsely claiming benefit
  • failing to report a source of income
  • failing to report savings above the benefit level
  • failing to report a change in circumstances

Overpayment of benefits

If you've been paid too much benefit this is called an overpayment. It's treated as benefit fraud if you have:

  • deliberately withheld information from your benefits office
  • given false information that may lead to you receiving benefits you're not entitled to

Reporting changes in circumstances

You need to tell your benefits office about any changes in circumstances as soon as possible. They'll tell you if it affects your benefit.

Some changes may mean you're entitled to new or additional benefits, but others could mean you no longer qualify for benefit, or should receive a lower amount. You may be overpaid if the benefits office doesn't know about your changed circumstances.

If you deliberately fail to report a change in your personal circumstances, you are treated as committing benefit fraud. You will have to pay the money back and if you're prosecuted for benefit fraud - you could be fined or get a prison sentence.

What happens after an investigation

Once officers have collected facts about your case a decision will be made on whether or not to take further action. If there’s evidence that you’re committing benefit fraud, one or more of the following may happen:

  • you may be prosecuted
  • you may be asked to pay a penalty as an alternative to prosecution
  • you may receive a Formal Caution   
  • your benefit may be reduced or withdrawn
  • your assets may be confiscated  

In all cases you will be asked to repay the overpaid benefit.

Loss of Benefits

Important changes to the rules around loss of benefit entitlement following a benefit fraud offence came into effect on 1 September 2011.

If you commit a first offence resulting in a conviction, administrative penalty or formal caution, it will be subject to a ‘One Strike’ sanction. This means you may lose your right to continue receiving benefit payments for a four week period.  

You will be notified if the ‘One Strike’ sanction is applied to your benefits.  

If you are convicted of two separate benefit fraud offences and the second offence is committed within five years of the date of the first conviction you may find your entitlement to certain benefits is reduced or withdrawn for a disqualification period.

This is known as the 'Two Strikes' sanction, and you'll be notified if it's applied to your benefits.

Sanctionable benefits

Benefits which can be withdrawn or reduced in this way are called sanctionable benefits.  These include but are not limited to:

  • Employment and Support Allowance
  • Housing Benefits
  • Incapacity Beneft
  • Income Support
  • Jobseeker's Allowance
  • Pension Credit

Disqualifying benefits

Disqualifying benefits are not sanctionable themselves, but benefit fraud offences involving them may lead to a loss of benefit sanction against other benefits.  These include but are not limited to:

  • Retirement Pension
  • Disability Living Allowance
  • Attendance Allowance

Some benefits, such as Statutory Sick Pay, are not involved in the Two Strikes sanction process at all.

Where to get advice

If you’re worried about being suspected of benefit fraud, you may want to get independent advice.

Legal advice

If you’re facing prosecution for benefit fraud, being asked to pay a penalty as an alternative to prosecution, or facing a Formal Caution, it’s a good idea to seek legal advice from a solicitor, or consult an experienced adviser.

The Northern Ireland Law Society website provides access to a list of Northern Ireland Solicitors and a list of services they provide.

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