DWP Granted Authority to Enforce £300 Daily Penalties on Three Major Benefits
The Department for Work and Pensions (DWP) is poised to implement stringent daily fines of £300 targeting individuals receiving three specific benefits, following new powers granted by the Labour Party. This initiative forms part of a broader effort to clamp down on benefit fraud and administrative errors, aiming to address the escalating welfare expenditure.
New Measures to Combat Fraud and Error
In a move to tackle the ballooning welfare bill, the DWP is being equipped with enhanced measures, including the authority to access bank accounts and seize funds from claimants. The initial focus of this crackdown will be on three key benefits: Universal Credit, Employment and Support Allowance (ESA), and Pension Credit. These benefits have been identified as primary targets in the government's strategy to reduce fraudulent claims and errors.
Civil Penalties and Enforcement Procedures
Under the proposed legislation, an 'authorised officer' will have the power to issue a Civil Penalty when fraud against a public authority is detected or attempted. According to the DWP, such an officer must demonstrate, on the balance of probabilities, that fraud has occurred before imposing any penalty. This legal threshold ensures that penalties are only applied where there is sufficient evidence of wrongdoing.
The penalties for non-compliance are structured as follows:
- Failure to comply with information gathering and sharing requirements will incur a daily rate of £300.
- Non-compliance with debt recovery powers related to information provision will also result in a daily fine of £300.
- For non-compliance with debt recovery powers beyond information provisions, a fixed penalty of £300 will be applied.
Notification and Appeal Process for Claimants
The DWP has outlined a clear process for notifying and penalising claimants. Prior to issuing a final penalty notice, a notice of intent will be sent to the individual, detailing the proposed penalty amount. If no representation is made in response, a penalty decision notice will follow, specifying the exact penalty and outlining steps to request an internal review by the Public Sector Fraud Authority (PSFA).
If an internal review is not sought, a penalty notice is imposed, and recipients will be informed of their right to appeal through the appropriate tribunal. The tribunal holds the authority to uphold, amend, or cancel the penalty notice. Claimants will have a 28-day window to request a review of the decision before any amount is recovered, and late payments may attract additional interest charges.
This comprehensive approach underscores the government's commitment to rigorous enforcement while providing mechanisms for claimants to challenge decisions, ensuring a balance between fraud prevention and fair treatment.
