Housing Benefit and Council Tax Reduction Prosecution Policy

In considering whether to prosecute the following will be considered. This list is not exhaustive.

• The quality of the evidence available. Is there a realistic prospect of conviction?
• The loss of public funds. What is the size of the overpayment resulting from the fraud?
• The duration of the fraud. How long did it continue for?
• Was the fraud calculated and deliberate?
• Has the offender previously committed fraud?
• Was the offender in a position of trust?
• Whether the type of offence is widespread in the area it was committed. It may not be serious in itself, but part of a trend in a particular locality.
• Whether the overpayment has been fully paid.
• Whether there has been voluntary disclosure. Was the fraud admitted prior to the investigation?
• Any social factors surrounding the case. Are there any mitigating circumstances?
• The offender's age, mental or physical condition. Are they fit to stand trial?
• Whether proceedings are likely to cause adverse publicity to the Council.
   

When a case is identified as suitable for a prosecution, the prepared case papers and written recommendation must be passed to the Crown Prosecution Service in the case of any investigation conducted by the DWP, or the Council’s Chief Finance Officer, for consideration and authorisation of any case of Council Tax Support fraud investigated by the Council’s Investigation Officer. The prosecution of benefit fraud and/or Council Tax Support offences will normally be taken under the provisions of the Social Security Administration Act 1992 the Fraud Act 2006 or the Council Tax Reduction Scheme (Detection of Fraud and Enforcement) Regulations.

Consideration should be given to the use of the Administration Penalty when it is not in the public interest to prosecute. This is a penalty of either £350 or 50% of the overpaid benefit/Council Tax reduction, whichever is greater in accordance with section 115 of the Social security Administration Act and/or regulation 11 of the Council Tax reduction Scheme (Detection of Fraud and Enforcement) Regulations. A penalty can only be offered if the case could be brought to prosecution, as any person refusing the penalty should be prosecuted.
 
The amount of the penalty allowed under the provisions of the act is to be 50% of the amount of the excess reduction (rounded to the nearest whole penny), subject to:
a)    a minimum amount of £100; and
b)    a maximum amount of £1000.

The imposition of a caution should be considered where it is not in the public interest to prosecute. A Local Authority Caution can only be used when a written admission has been made. It cannot be issued if the claimant refutes or denies the charge. A caution can only be offered if the case could be brought to prosecution, as any person refusing a caution should be prosecuted.

From 1 April 2010 Section 24/Schedule 4 of the Welfare Reform Act 2009 and the Social Security (Loss of Benefit) Amendment Regulation 2010 introduced a new four week loss/reduction of benefit sanction (One Strike). One Strike sanctions apply to benefit fraud offences committed on or after 1 April 2010 that result in a caution, administrative penalty or a first conviction. The sanctions can only be applied to standard Housing Benefit. Determining that a loss of benefit sanction applies and calculating the period of the sanction is the responsibility of the Department for Work and Pensions (DWP) Single Fraud Investigation Service (S-FIS). The role of applying the loss of benefit sanction to standard Housing and Council Tax Benefit is the responsibility of the Council’s benefit assessment team.

Tandridge District Council expects its Investigators, Inspectors and Visiting Officers (hereafter called "Investigators") to observe the following rules:

The Investigators will declare all cases of alleged fraud where an Investigator has an interest. An interest is defined as legal interest in property involved in the alleged fraud, or a personal relationship with any persons involved in the claim for benefit.

The Investigators will treat all persons suspected of CTS fraud with respect and courtesy at all times, in line with the Council's standard policies on customer care.

The Investigators will follow at all times the Home Office Codes of Conduct under the Police and Criminal Evidence Act (PACE), Criminal Procedures and Investigation Act (CPIA) and Human Rights Act (HRA).

The Investigators will ensure that information held by the Council is only disclosed in line with the Data Protection Acts and the procedures concerning confidentiality.

The Investigators will declare membership of any secret organisation or organisation that is considered "secretive", or any organisation that could be considered able to influence the outcome of an investigation. This includes membership of Masonic Lodges. Trade unions and political parties should be considered when the Investigator holds an officer position within those organisations.

At all times during an investigation, the Investigators should consider and observe the rights of any individual that they are interviewing or investigating. It is the duty of the Investigators to establish the facts of the case and not make conclusions based solely on intuition or supposition.

The Investigator will exercise particular care when making visits on his/her own in the following circumstances and will seek advice from a senior officer where appropriate:

• visits to persons living alone;
• visits after dark;
• visits to hostels or accommodation providing Care in the Community;
• visits to young persons.

The Investigator must be aware of the potential for violence from persons under investigation and should not place themselves in a situation where there is a risk of attack. Any Investigator breaching the above rules may be subjected to the Council's disciplinary procedures.