Using sanctions to deter fraudsters from re-offending
This section includes good practice on:
Introduction
Sanctions and prosecutions act as a deterrent to fraudsters. In England and Wales a local authority (LA) may offer a formal caution, or an administrative caution (also in Scotland), as an alternative to prosecution as long as certain criteria are met and the case is one the LA would wish to see in court if the caution was refused. To be able to offer a caution, the authority must satisfy the same standard of criminal evidence as for a prosecution. A caution should only be offered if the LA is in a position to prosecute, should the caution be refused.
Section 115A of the Social Security Administration Act (SSAA) 1992 provides LAs with an opportunity to offer a customer an administrative penalty as an alternative to a prosecution. The penalty is the amount of the overpayment, plus 30% of the overpayment. Such a penalty requires the same level of evidence as a prosecution.
If the caution or penalty is refused the LA should refer this case for prosecution if it passes the public interest test.
The ultimate sanction is a successful prosecution, or in Scotland the submission of the case to the Procurator Fiscal.
A balanced sanctions policy
Good practice includes:
- providing clear guidelines to employees to consider and administer the appropriate sanctions and ensure they are applied strictly in accordance with the law
- checking continuously the Department for Work and Pension's (DWP) database and Police National Computer (PNC) or DWP Solicitor and Prosecutions Division (SOLP) for previous benefit fraud sanctions and convictions before issuing a caution or penalty. If a caution or penalty is given, the LA records the penalty details clearly, including sending notification for recording on the DWP database, to ensure further attempts to defraud by the same person are considered for prosecution as a first option. If a caution or penalty is refused the LA ensures all cases are referred for prosecution
- defining policy criteria on the issuing of cautions requiring consideration of the suitability of the person to stand trial. It should, however, be borne in mind when defining policy criteria that should the caution fail and the LA wishes to prosecute, the ultimate public interest decision, as well as the evidential decision, is made by the prosecutor
- convening a sanction panel to ensure that decisions to apply a sanction are taken in accordance with the LA prosecutions policy
- publicising the LA's policy on sanctions, communicating it to all benefit employees and providing awareness for all other appropriate LA employees or third parties involved in the verification/administration of claims
- giving Members awareness training
- analysing details of cautions, administrative penalties issued and prosecutions to inform future counter-fraud business plans
- reviewing prosecution policy to ensure continued balance, relevancy and effectiveness
- reporting results to Members and senior management to sustain accountability and ensure compliance with agreed processes and policies
- publicising suitable prosecution cases to send out a deterrent message to fraudsters.
