Benefits Investigation Unit

A Benefits Investigation Unit has been set up, which has powers under the Social Security Administration Act 1992, to investigate allegations of fraudulent claims for Housing Benefit and Council Tax Benefit.  We also work with the Department for Work and Pensions (DWP) on related investigations into Income Support and Job Seekers Allowance claims that may have been made fraudulently.

The unit comprises of specially trained staff to deal with investigations and we take seriously any allegations made. The perpetrators, when caught, could face criminal proceedings, as Benefit Fraud is a serious matter costing the taxpayer money and losing revenue due to the Council.

The Benefit Investigation Unit welcomes referrals from the general public.

Our Prosecution Policy

Herefordshire Council is committed to protecting public funds through its action on fraud. Where a claimant of Housing Benefit and/or Council Tax Benefit has been accused of committing a fraud against the Council, and the Benefit Investigation Manager believes there is enough evidence to sustain a prosecution, then the Legal Department will consider whether it is in the public interest to undertake the prosecution.

The Council will, wherever possible, work jointly with the Department for Work and Pensions' (DWP) Counter Fraud Investigation Service (CFIS).

In such cases, the combined overpayment from both DWP and the Council, will determine the sanction to be administered.

The Council will, in most joint working cases, authorise the DWP to carry out sanctions.

The Test of Public Interest

In order to determine whether or not it is in the public interest to prosecute the case, the following must be applied:

• It was a first offence, and
• There was no intent involved in the process, and
• The person is in genuine financial hardship, or under the age of 16 years, or is in need of Social Services assistance,

The Council believes that, in most instances, it is not in the public interest to prosecute, or offer a Penalty, or an official Local Authority Caution.

Local Authority Caution

Where any of the following applies, the Council will consider issuing an official Local Authority Caution:

• It was a first offence, 
• There was intent involved in the process,
• An attempt was made to commit fraud,
• The offence was fully admitted,
• The person was in genuine hardship,

The Local Authority Caution, unlike the penalty, can only be issued when a confession has been made. It cannot be issued if the claimant refutes or denies the charge.

Penalty

In other cases where the overpayment is less than £2,000, and where any of the following

• it was a first offence, and
• there was intent involved in the process, and
• the person is not in genuine financial hardship, or under the age of 18 years, or is in need of Social Services assistance.

Then, in most instances, the Council will make the offer of a 30% Penalty in accordance with section 115A of the Social Security Administration Act 1992, as amended by section 15 of the Social Security Administration (Fraud) Act 1997.

It should be noted that the offer of a penalty should be made in a special interview. Penalties can only be offered if the case could be brought for prosecution.

The offender should be told at the special interview that:

• it is not an interview under caution, 
• acceptance of the penalty is not a declaration of guilt,
• recovery of the penalty will occur in the same way as the recovery of the overpayment,
• they have 28 days in which to change their mind should they accept the Penalty,
• failure to repay the debt or default on instalments will result in them facing civil proceedings for recovery.

Prosecution

Where any of the following applies:

• the claim was false from the outset, 
• there was intent involved in the process
• it was not a first offence
• there was a false statement
• non acceptance of either Formal Caution or Administrative Penalty,

Then the Council will, in most instances, prosecute.

It is noted that some cases will not fall into any category. However, every case will be considered on its own merits, and action will be considered as appropriate.

Reported

Once there is enough evidence that the claimant has committed an offence, then they must be reported.  The offence must be noted and recorded.

Court

In most cases the hearing will be dealt with at Magistrates Court, however, in more serious benefit fraud cases, trial at the Crown Court will be considered. The following criteria will be applied when recommending Crown Court:

• The benefit claim was fraudulent from the start, OR 
• The fraud was sophisticated in concept or execution, AND
• The fraudulent overpayment will normally be in excess of £20,000

Every case will be considered on the known facts and jurisdiction will be recommended as appropriate.