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Benefit cheats face increased jail terms of up to 10 years Benefit cheats face increased jail terms of up to 10 years
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Benefits cheats will face increased jail terms of up to 10 years in a crackdown on those who "flout the system", Britain's most senior prosecutor has said.Benefits cheats will face increased jail terms of up to 10 years in a crackdown on those who "flout the system", Britain's most senior prosecutor has said.
Keir Starmer QC warned it was time for a "tough stance" against the perpetrators of social security and tax credit fraud as he set out new guidelines for the Crown Prosecution Service (CPS).Keir Starmer QC warned it was time for a "tough stance" against the perpetrators of social security and tax credit fraud as he set out new guidelines for the Crown Prosecution Service (CPS).
The director of public prosecutions said the £1.9bn annual cost of two types of fraud should be at the "forefront of lawyers' minds" when considering whether a prosecution was in the public interest.The director of public prosecutions said the £1.9bn annual cost of two types of fraud should be at the "forefront of lawyers' minds" when considering whether a prosecution was in the public interest.
Suspects can now be charged under the Fraud Act, which carries a maximum sentence of 10 years in prison, the CPS said. In the past, benefit cheats have often been pursued under specific social security legislation that carries a maximum term of seven years.Suspects can now be charged under the Fraud Act, which carries a maximum sentence of 10 years in prison, the CPS said. In the past, benefit cheats have often been pursued under specific social security legislation that carries a maximum term of seven years.
A financial threshold that prevented benefit fraud cases of less than £20,000 being sent to crown court would also be abolished, the CPS said.A financial threshold that prevented benefit fraud cases of less than £20,000 being sent to crown court would also be abolished, the CPS said.
"It is a myth that 'getting one over on the system' is a victimless crime: the truth is we all pay the price," Starmer said. "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.""It is a myth that 'getting one over on the system' is a victimless crime: the truth is we all pay the price," Starmer said. "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."
The head of Citizens Advice warned prosecutors of not excessively punishing those who had made innocent mistakes or been caught unawares by ongoing and "fiendishly complicated" changes to the benefit system. Labour called for even stronger penalties.The head of Citizens Advice warned prosecutors of not excessively punishing those who had made innocent mistakes or been caught unawares by ongoing and "fiendishly complicated" changes to the benefit system. Labour called for even stronger penalties.
In its latest estimates the Office for National Statistics says that 0.7% of the Department for Work and Pensions' £167bn social security disbursement – a figure that includes pension payments – is claimed fraudulently.In its latest estimates the Office for National Statistics says that 0.7% of the Department for Work and Pensions' £167bn social security disbursement – a figure that includes pension payments – is claimed fraudulently.
Last year, the CPS saw more than 8,600 prosecutions in benefit and tax credit cases, along with 4,000 in the first five months of this year. Starmer said the current conviction rate was 89.7%.Last year, the CPS saw more than 8,600 prosecutions in benefit and tax credit cases, along with 4,000 in the first five months of this year. Starmer said the current conviction rate was 89.7%.
"It is vital that we take a tough stance on this type of fraud and I am determined to see a clampdown on those who flout the system," he said."It is vital that we take a tough stance on this type of fraud and I am determined to see a clampdown on those who flout the system," he said.
The move follows the merger of the prosecutions division of the Department for Work and Pensions with the CPS in April 2012, and the transfer of staff to the CPS welfare, rural and health division.The move follows the merger of the prosecutions division of the Department for Work and Pensions with the CPS in April 2012, and the transfer of staff to the CPS welfare, rural and health division.
Under the new guidelines, prosecutors in England and Wales will be told to seek tough penalties in cases with aggravating features such as multiple offences, abuse of position or substantial loss to public funds.Under the new guidelines, prosecutors in England and Wales will be told to seek tough penalties in cases with aggravating features such as multiple offences, abuse of position or substantial loss to public funds.
Benefit fraud of less than £20,000 was previously automatically allocated to magistrates courts, which can hand out maximum sentences of only 12 months.Benefit fraud of less than £20,000 was previously automatically allocated to magistrates courts, which can hand out maximum sentences of only 12 months.
That financial threshold will be abolished, bringing the prosecution of benefit fraud in line with the prosecution of other fraud cases, the CPS said.That financial threshold will be abolished, bringing the prosecution of benefit fraud in line with the prosecution of other fraud cases, the CPS said.
Labour's shadow attorney general, Emily Thornberry, said the punishments for such fraud, including bank fraud, should be even higher.Labour's shadow attorney general, Emily Thornberry, said the punishments for such fraud, including bank fraud, should be even higher.
"Beneath all the spin, this announcement is really an admission that to date, the authorities have not been using the most robust legislation out there to tackle fraud."Beneath all the spin, this announcement is really an admission that to date, the authorities have not been using the most robust legislation out there to tackle fraud.
"That it has taken the government three years to address this is a sign of its complacency and incompetence. I am in favour of tougher sentences for all types of fraud, from benefit fraud to banking fraud, and would like to see the maximum penalty extended from 10 years to 14 years, bringing it in line with sentencing for other economic crimes such as money laundering. Today's announcement falls far short of that," she said."That it has taken the government three years to address this is a sign of its complacency and incompetence. I am in favour of tougher sentences for all types of fraud, from benefit fraud to banking fraud, and would like to see the maximum penalty extended from 10 years to 14 years, bringing it in line with sentencing for other economic crimes such as money laundering. Today's announcement falls far short of that," she said.
Gillian Guy, chief executive of charity Citizens Advice, said: "It's absolutely right that people stealing from the public purse face tough consequences."Gillian Guy, chief executive of charity Citizens Advice, said: "It's absolutely right that people stealing from the public purse face tough consequences."
But she warned that new reforms could trip people up and they should not be sent to jail.But she warned that new reforms could trip people up and they should not be sent to jail.
"It is crucial that people who suffer wrong payments due to innocent mistakes or confusion do not suffer unfairly as a result of these new penalties. The current benefits system is fiendishly complicated and many people face upheaval to their support due to reforms. Prosecutors must make sure that only fraudsters are punished and hard-up people who have made an innocent mistakes are protected.""It is crucial that people who suffer wrong payments due to innocent mistakes or confusion do not suffer unfairly as a result of these new penalties. The current benefits system is fiendishly complicated and many people face upheaval to their support due to reforms. Prosecutors must make sure that only fraudsters are punished and hard-up people who have made an innocent mistakes are protected."
A spokesperson for the Department for Work and Pensions said it welcomed the new policy decision, adding: "The small minority of claimants trying to steal from the benefits system need to know our teams are ready to investigate and bring them to justice."A spokesperson for the Department for Work and Pensions said it welcomed the new policy decision, adding: "The small minority of claimants trying to steal from the benefits system need to know our teams are ready to investigate and bring them to justice."
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