Benefit Frauds Face New £2,000 Fines From Today

PA  |  Posted: 08/05/2012 12:41 Updated: 08/05/2012 12:41   PA

Iain Duncan Smith
Department of Work and Pensions Minister Iain Duncan Smith claims the Government will reclaim £42m in three years through the fines

Benefit cheats will be fined up to £2,000 without being taken to court under new powers from Tuesday, which the Government said will save the taxpayer around £42 million over the next three years.

Under changes brought in by the Welfare Reform Act in England, Scotland and Wales, minimum penalties will be £350, while cautions will no longer be an option.

Welfare Reform Minister Lord Freud said: "We always push for the strongest possible punishment for benefit thieves who are stealing money from the people who need it the most.

"When it makes financial sense to do so, we will prosecute through the courts but where very little or no money has been stolen we will fine people as well as recover any overpayment, hitting fraudsters where it hurts the most.

"We are getting tougher and no one will escape justice with a mere slap on the wrists."

Before today, fraudsters faced a maximum administrative penalty of £600 with a minimum penalty of £15.

Ministers said the tougher administrative penalties are the first of a range of new powers in the Welfare Reform Act designed to deter fraudsters.

Other penalties coming into effect in the future to tackle fraud include an immediate three year loss of benefit for serious or organised benefit fraud or identity fraud.

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05:50 PM on 11/23/2012
Parliamentary expenses cheats will be fined up to £20,000 without being taken to court under new powers from Tuesday, which the Government said will save the taxpayer around £42 million over the next three years.

Oh Good!
07:51 AM on 05/09/2012
What idiot came up with that idea who pays the fine us
07:50 AM on 05/09/2012
Fining benefit cheats is not a deterrent. They can only have a certain amount taken from the benefits they get, to pay as a fine. A better deterrent would be to seize any luxury goods, TV, computers, cars etc...
As far as some of the earlier posts, regarding immigrants, I know you'll find that the majority of the cheats are white British.
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07:46 AM on 05/09/2012
How can they fine someone £2000 and get them a criminal record without proving it in court? This is a slippery slope as whats next your council makes a mistake with yur council tax and you get fined £2000 and a criminal record? Instead of pinning the blame on each other as is the case any time their is a mistake government departments will just pin the blame on the public instead and get £2000 for doing it. How obvious is this unless you went to Eton?
05:22 AM on 05/09/2012
why not shoot the immigrants & goverment then the problem is solved.... perhaps then we may save alot off money.... let the country run for goverment
02:23 AM on 05/09/2012
Another headline statement, youve got to catch them first,then you have to get the money of them,got a feeling this could be costing more going through the courts,they have not collected thousands of the people they have caught,they have let them off,,sounds double dutch to me.
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HUFFPOST SUPER USER
PhilEssex
Statistically, 6 out of 7 dwarves are not happy.
12:56 AM on 05/09/2012
I bet immigrants will be except.
06:06 PM on 05/09/2012
Of course they will PhilEssex. it's there Human Rights.
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HUFFPOST SUPER USER
PhilEssex
Statistically, 6 out of 7 dwarves are not happy.
08:16 PM on 05/09/2012
Yes, good old human rights. A friend found something very interesting reading online, please read, it's mind boggling.

Are you
aware of the following?
The British Government provides the following
financial assistance:-

BRITISH OLD AGED PENSIONER (bearing in
mind they worked hard and paid their Income Tax and National
Insurance contributions to the British Government for all of their
working
life) - Weekly allowance: £106.00?

IMMIGRANTS/REFUGEES
LIVING IN BRITAIN (No Income Tax and National Insurance contribution
whatsoever) -
Weekly allowance: £250.00

BRITISH OLD
AGED PENSIONER - Weekly Spouse Allowance: £25.00?

ILLEGAL
IMMIGRANTS/REFUGEES LIVING IN BRITAIN
- Weekly Spouse Allowance:
£225.00

BRITISH OLD AGED PENSIONER - Additional
Weekly Hardship Allowance: £0.00?

ILLEGAL IMMIGRANTS/REFUGEES
LIVING IN BRITAIN - Additional Weekly Hardship Allowance:
£100.00

A British old age pensioner is no less hard up than an
illegal immigrant/refugee yet receives nothing. Don't
blag about the £5.00 increase due; that was eaten up in the
20%
of the cost of living rise over the last 3 years.

BRITISH
OLD AGED PENSIONER - TOTAL YEARLY BENEFIT £6,000 average?

ILLEGAL
IMMIGRANTS/REFUGEES LIVING IN BRITAIN
- TOTAL YEARLY BENEFIT:
£29,900
11:00 PM on 05/08/2012
We are all swimming in the same swamp.
10:56 PM on 05/08/2012
here we go again all disabled people and anyone getting benifits are cheats, the torys never change, how are they going to prove people are cheating or if they just filled in their benifit forms wrong, the forms they sent my 87yr old mother was 26 pages long and most of it would need a genius to fill in without mistakes, this is just another ploy to take peoples minds off the screw ups by our unelected goverment.
10:12 PM on 05/08/2012
if no money has been stolen, The why are they prosecuting ?
08:06 PM on 05/08/2012
Why is it our politicians cannot grasp the fact fines wont get paid, cheats aren't about to just submit to handing over money with no criminal trial involved, if someone in a cap with council official emblazened on their uniform handed me a fine for 2 grand I'd laugh at him, why would anyone think the cheat is just going to pay up. Catch someone working while claiming, just stop their claim and blacklist for ten years, no benefits whatsoever, job done.
However we also have the dilemma of real work, there being very few available full time jobs going begging, there'll always be cash in hand jobs but they tend to be very short term, this being the main reason for people not relinquishing benefits, you leave the system for work and three weeks later the new job goes kaput, from that point to actually receiving a benefit of any kind could be months, so why is anyone surprized people wont come off benefits once they're on to take up a non job that wont even cover the rent for a month. An, as usual, totally out of touch response to an everyday problem, provide real jobs and opportunities and the problem will disappear.
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Norman Mitchison
07:08 PM on 05/08/2012
Its all very well getting tough with fraudsters but what about Chris Huhne and his fraudulent claim of innocence: not heard about him recently,is all forgiven and forgotten?
06:32 PM on 05/08/2012
why dont they prosecute the thieving MPs
10:55 PM on 05/08/2012
They did, resulting in one or two spending a short time inside - you paying the cost of their temporary keep.

We are now awaiting their autobiography.
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HUFFPOST SUPER USER
PhilEssex
Statistically, 6 out of 7 dwarves are not happy.
01:03 AM on 05/09/2012
Because they are in a priviledged position and except from any kind of prosecution. All Politicians are a law unto themselves and can fiddle us right left and center and get away with a slap wrist at most.
06:22 PM on 05/08/2012
Start at the top i.e Prime minister and work down from a long time back, see what they have all gleaned from the public purse while pretending to work for the good of the people. Power Corrupts and the biggest ones are in Westminster or have been in the position before, even when they lose their seat they get big payout.