Housing Benefit and Council Tax Benefit Fraud

To that end the Borough Council has its own Fraud/Visiting Section whose duties include:

• Investigation of suspected fraudulent claims
• Detection of fraudulent claims and correcting payment in these cases
• Calculation of overpaid benefit in these cases

The Council investigates all allegations of benefit fraud. When a fraud has occurred, we will consider taking prosecution or sanction against the person or persons involved, depending on their personal circumstances and the gravity of the case. Decisions will be taken in accordance with the Council's Prosecution policy.

The Council's Benefit Fraud Prosecution Policy

Prosecution is a serious measure, which can have significant implications for those involved, and that it must therefore be undertaken fairly and effectively if law and order are to be maintained.

The Public Interest Test

Prosecution will be considered more likely if:

• the offence was deliberate and not caused by a genuine mistake or misunderstanding,
• the defendant was in a position of authority or trust,
• the defendant was a 'ringleader' or organizer of an offence
• there is evidence of collusion,
• the defendant has relevant previous convictions.

Prosecution will be considered less likely if:

• the loss to the Council was minor,
• there has been a long delay between the offence and the trial (unless the offence is serious, it has only recently been discovered, its complexity has involved a lengthy investigation, or the delay has been caused by the defendant),

The above lists are not exclusive, and there may be other factors to be considered such as the age and or the physical or mental health of the claimant, or whether the claimant was in a particularly stressful situation at the time of the offence,

There should be sufficient evidence to provide a realistic prospect of conviction on each charge. The likely defence case should be considered and how it is likely to affect the prosecution case.

A realistic prospect of conviction is an objective test, and means that magistrates' bench or jury, properly directed in accordance with the law, is more likely than not to convict the defendant of the alleged charge.

Administrative Penalties

In cases of Housing Benefit / Council Tax Benefit fraud, the administrative penalty will be considered as an alternative to prosecution.

An administrative penalty is a financial penalty equivalent to 30% of the benefit overpayment. There must be grounds for criminal proceedings, but it may be considered that prosecution is not the most expedient action. An administrative penalty cannot be offered as an alternative where it is considered that a prosecution would be unlikely to succeed - there must still be sufficient evidence to justify court action.

Administrative penalties cannot be referred to in court unless the defendant has declined the offer of one.

Penalties are permissive and cannot be imposed, the claimant being under no obligation to accept the penalty. After acceptance of the offer, the claimant is allowed 28 days in which to change their mind.

An administrative penalty may be the preferred sanction in the following circumstances:

• first time or relatively minor frauds in terms of amount and duration.
• there is a good chance of the fraudulent overpayment being recovered.
• the fraud was not planned or pre-meditated,
• it is desirable not to give the person concerned a criminal record.

(This is not an exhaustive list of examples)

Once a person accepts an Administrative penalty, they become immune from criminal proceedings on that particular charge.

Administrative penalties can be offered by one of the Council's designated Fraud Officers in the appropriate written form during an interview undertaken in accordance with statutory provisions. They can only be offered by a different fraud officer from the one who has conducted the interviews under caution.

If the offer is accepted by the claimant, then the fraud officer shall ensure that amount is recorded on the Council's Sundry Debtor system.

If the offer is rejected, then the fraud officer shall consider some other form of sanction and take proceedings accordingly.

Formal Cautions

Cautions may be used in less serious cases where the amount involved is relatively small or where it is a first time offence and the public interest does not require that a prosecution be pursued.

A caution is still a serious measure, and will be recorded as a criminal offence.

A caution is a serious measure and may only be issued where there is sufficient evidence for a prosecution and where there is a signed admission of guilt by the offender.

Cautions will be processed and issued by a fraud officer. The Fraud Officer will also be responsible for ensuring that the caution is recorded as a criminal offence and that the Department of Work and Pensions is informed.

Investigation of Cases

All staff involved in fraud investigation will:

• seek to establish the facts in every alleged or suspected case.
• seek and gather sufficient admissible evidence,
• approach each investigation with an open mind.
• take into account any likely Police requirements if it is decided at the outset of the investigation that the Police are to be called in,
• operate in accordance with the provisions of the Police and Criminal Evidence Act 1984, Human Rights Act 2000, Regulation of Investigatory Powers Act 2000,
• record and file their investigation work appropriately and securely,
• conduct their investigations with fairness, sensitivity, tact and discretion,
• act in accordance with this policy promptly,
• operate in accordance with the provisions of any other relevant legislation; the Council's financial regulations; other relevant Council regulations, policies and codes of conduct; the relevant codes of conduct of any professional organisations,
• comply with all statutory Data Protection requirements and treat all findings, records and documentation securely and confidentially.