Up To 10 Years For Benefit Fraud, DPP Says

Benefit cheats face increased jail terms of up to ten years under an unprecedented crackdown on those who “flout the system”, Britain’s most senior prosecutor will announce today.

More cases will be pursued and tougher sentences sought by sending suspects straight to Crown Court, Keir Starmer, QC, will say as he sets out new guidelines for the Crown Prosecution Service.

Mr Starmer, the Director of Public Prosecutions, will warn that for the first time the enormous economic cost of benefit fraud will be a major consideration in whether charges are pursued.

Middle-class and “professional” cheats will be targeted as the offence is brought into line with crimes such as money laundering and banking fraud. The CPS will also aim to ensure that those responsible receive similar sentences.

Mr Starmer will say that it is time for a “tough stance” against the perpetrators of benefit and tax credit fraud, which costs Britain almost £2 billion each year. “It is a myth that ‘getting one over on the system’ is a victimless crime. The truth is that we all pay the price. I am determined to see a clampdown on those who flout the system,” he announces in the new guidance.

The move comes after the CPS took over legal work for the Department for Work and Pensions (DWP), which previously had an in-house team. Prosecutors will be told to seek tougher penalties in cases with aggravating factors such as multiple offences, abuse of a position of trust or substantial loss to public funds. Professionally planned frauds, which could include divorcing couples who fail to notify the authorities about their true circumstances, will also be targeted.

Increasing numbers of suspects will be charged under the Fraud Act, which carries a maximum penalty of ten years’ imprisonment. In the past, benefit cheats have usually been pursued under specific social security legislation, which carries a maximum term of seven years.

While benefit fraud of less than £20,000 was previously automatically allocated to the magistrates’ courts, which can only hand out sentences with a maximum of 12 months, the financial threshold will now be abolished. It means that even small cases can be referred to the Crown Court for stronger sentencing if the circumstances are warranted, in an acknowledgement of the widespread and damaging nature of the offence.

Mr Starmer said: “It’s not only taxpayers that suffer. 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.”

When considering whether to bring a prosecution, lawyers will be to told to weigh up the cost to the public purse of benefit fraud.

Mr Starmer said: “The cost to the nation incurred by benefit fraud should be at the forefront of lawyers’ minds when considering whether a prosecution is in the public interest. The loss of money has a significant impact on communities up and down the country.”

The CPS was given resources to tackle the problem when the DWP legal team was merged into its fraud area about a year ago. The guidelines will be published today to ensure that the tough approach is consistent across England and Wales.

Mr Starmer said: “The guidance for prosecutors is clear that if the evidence demonstrates an element of dishonesty, rather than just knowledge of a fraud, the appropriate charges should be used.

“This will ensure that following conviction, all options are on the table for magistrates and judges, including custodial sentences. Indeed, prosecutors are also instructed not to shy away from using a range a legislation that carries higher sentences where it is merited.”

The move comes amid a general government crackdown on benefit fraud. In August it claimed to have saved hundreds of millions of pounds by introducing better fraud prevention and reducing errors in the tax and benefit system.

Measures included more rigorous monitoring of claims by the DWP and the naming and shaming of fraudsters. The amount of money confiscated from benefit cheats has also risen 50 per cent in the past year.