Benefit Frauds Lose Money - But Not Always

New regulations on those found guilty of benefit fraud are to 'deny' claimants benefits for a month - under a new 'One Strike' rule.

However, while fraudsters will automatically lose benefit for four weeks, on being successfully prosecuted, a 'Hardship Provision' will apply to ensure that the basic needs of vulnerable people continue to be met.

In what may be seen as a watering-down of the new 'tough' stance, where a claimant is within a vulnerable group, has family responsibilities or if a particular hardship will result, then the penalty is a reduction in benefit by a mere 20% or 40% rather than a total loss of benefit.

Nevertheless, the NI Social Security Minister Nelson McCausland (pictured) today introduced his new One Strike rule that he said was to help tackle benefit fraud.

The new penalty may cut a claimant's benefit, or stop it entirely, for four weeks after a person is found to have committed just their first benefit fraud offence.

The new penalty, which comes into effect today, could see over 1,000 claimants affected per year.

This is a significant increase on the existing 'Two Strikes' sanction - people who have been convicted twice - as it saw just 13 claimants having their benefits cut last year.

The DUP Minister Nelson McCausland said: "Those who deliberately commit benefit fraud are dipping their fingers into the pockets of Northern Ireland's taxpayers. This is unacceptable.

"The new One Strike penalty will increase significantly the numbers of people whose benefit is cut due to an abuse of the benefit system.

"But more importantly I hope the new powers will serve as a deterrent for those tempted to make false claims.

"We don't want to catch people committing benefit fraud; we want to stop them committing benefit fraud in the first place. This new measure will help us do that," he said, adding that the penalty is in addition to a fraud conviction, administrative penalty or formal caution, and the recovery of any money fraudulently claimed.

Minister McCausland added: "People who commit benefit fraud are stealing money from some of the most poor and vulnerable in our society, including those who receive benefits.

"Through additional anti-fraud measures, including One Strike, and with the public's help, we will continue to build on our successes to date in tackling benefit fraud," he concluded.

One Strike only applies to claimants who have committed a first benefit fraud offence, wholly on or after 1 September, which results in a conviction, an administrative penalty or formal caution.

The penalty cannot apply to bereavement payments, retirement pension, benefits paid for children or those that cover extra costs of disability.

Where a claimant is within a vulnerable group, has family responsibilities or if a particular hardship will result, then the penalty is a reduction in benefit by a 20% or 40%.

The current Two Strikes sanction can last for 13 weeks and applies where a claimant is convicted of benefit fraud twice and the second offence is committed within five years of the date of the first conviction.

In all, 1,128 people were in court and sanctioned for committing benefit fraud in 2010/11.

See: 4NI Wins Fraudsters' Identity Battle

(BMcC/CD)