Anti Fraud Strategy Appendix 4

SCOTTISH BORDERS COUNCIL

REVENUES AND BENEFITS SERVICE

HOUSING AND COUNCIL TAX BENEFIT

SANCTIONS AND PROSECUTIONS POLICY

1 INTRODUCTION

1.1This policy document sets out Scottish Borders Council’s revised commitment to protecting the needy and vulnerable through the active sanctioning of those who are guilty of committing Housing and Council Tax Benefit fraud. This policy document forms part of the Council’s ‘Corporate Anti Fraud Strategy’.’

1.2This policy will be reviewed annually to reflect changes in policy and may be subject to amendment where new forms of sanctions are introduced.

2 GENERAL

2.1It is the Council’s objective to ensure that the administration of Housing and Council Tax Benefit is secure, fair, provides help where needed and is vigilant in tackling fraud and error to ensure value for taxpayer’s money.

2.2The main policy objectives are:

  • to prevent and deter fraud in the first instance
  • detect it quickly
  • investigate it efficiently; and
  • prosecute offenders when appropriate

2.3The document ‘Housing and Council Tax Benefit Anti Fraud Policy’ sets out our policy on fraud. This document sets out our specific policy on sanctions and prosecutions.

3 PROSECUTION

3.1In reaching a decision on whether to proceed with a prosecution the Fraud Investigator in conjunction with the Fraud Manager will consider the following

  • The financial amount of the fraud
  • The period over which the fraud has been perpetrated
  • Whether previous frauds have been committed
  • The age of the claimant at the time of the offence
  • The mental and/or physical health of the claimant at the time of the offence, during the period of the offence and immediately following the offence
  • Any other social/welfare factors that may exist
  • Whether or not it is in the public interest to proceed with a prosecution
  • Whether the evidence available is sufficient to prove beyond reasonable doubt that an offence has taken place

3.2We will only consider prosecution where the fraudulent overpayment is £2,000 or above. (This may vary depending on the individual circumstances e.g. the period of the overpayment). If the fraudulent overpayment is less the Fraud Investigator should consider an Administrative Penalty.

3.3The decision to prosecute will be taken by the Fraud and Overpayments Team Leader who may discuss this with the Head of Service.

3.4If the case is successful, the Council will publicise details of the offence and the offender in the local media to act as a deterrent to anyone who is, or may be considering submitting false claims for benefit.

4 ADMINISTRATIVE PENALTIES

4.1If a case is suitable for criminal proceedings action, an alternative to prosecution is an administrative penalty, which if agreed to by the claimant will exempt them from prosecution for that offence. The amount of the penalty is 30% of the fraudulent overpayment.

4.2We may offer an Administrative Penalty as an alternative to prosecution where the case meets the following criteria:

  • The fraudulent overpayment is between the equivalent of 4 weeks benefit and £2,000, or the circumstances of the offence indicate that an Administrative Penalty may be more appropriate than prosecution; and
  • The offender has admitted their guilt during the interview under caution (IUC); and
  • There is sufficient evidence to justify criminal proceedings

4.3If the person refuses to accept the Administrative Caution we will pursue prosecution.

4.4The decision to prosecute will be taken by the Fraud and Overpayments Team leader who may discuss this with the Head of Service.

5 ADMINISTRATIVE CAUTIONS

5.1An Administrative Caution is an alternative sanction to prosecution. It is an official warning that any future benefit fraud offence will lead to a greater sanction being pursued against the claimant. To offer an Administrative Caution, the case must be of a prosecutable standard but where criminal proceedings are not the first option and an Administrative Penalty is not appropriate.

5.2An Administrative Caution may be offered as an alternative to prosecution where the case meets the following criteria:

  • The fraudulent overpayment is between £200 and £500, or the circumstances of the offence merit a more serious form of deterrent action over and above the recovery of the overpaid benefit; and
  • The offender has admitted their guilt during the interview under caution (IUC); and
  • There is sufficient evidence to justify criminal proceedings

5.3Each case, which is considered for an Administrative Caution, is assessed individually and any mitigating circumstances, such as age, disability, repayment of the overpayment, are taken into account.

5.4If the person refuses to accept the Administrative Caution we will pursue prosecution.

5.5 The decision to prosecute will be taken by the Fraud and Overpayments Team Leader who may discuss this with the Head of Service.

6 OPERATIONAL ISSUES

6.1Sanctions will always be administered by a member of staff who is PINS (Professionalism In Security) qualified.

6.2Complete and accurate records will be kept by the Fraud Team of all sanctions offered and imposed.

6.3All fraud investigations will be carried out in line with the guidance in Housing and Council Tax Benefits Security manual and Security against Fraud and Error manual and documented in accordance with the Regulation of Investigatory Powers (Scotland) Act.

Version Date: June 2005