A woman from Norfolk has been ordered to pay a total of £365 after admitting to fraudulently claiming Universal Credit from the Department for Work and Pensions (DWP).
Court details of the fraud case
Susan Pegg, aged 64, from Aylsham, pleaded guilty at Norwich Magistrates' Court to dishonestly failing to notify the DWP of a change in her circumstances that affected her entitlement to the benefit. The court heard that she did not declare her savings, a key requirement for claimants.
People who claim Universal Credit must have no more than £16,000 in money, savings, and investments to be eligible. Pegg was fined £200 and ordered to pay £165 in costs, resulting in the total financial penalty.
New government powers to tackle fraud
The sentencing comes on the same day the government announced plans for a major new fraud crackdown. As part of new legislation set to be introduced in Parliament, benefit cheats could be disqualified from driving for up to two years if they refuse to repay money they owe.
The DWP will gain the power to apply to the courts to suspend a fraudster's driving licence. This can happen if the debt is £1,000 or more and the individual has repeatedly ignored requests to repay.
Ministerial statements on the crackdown
Georgia Gould, the Minister in the Cabinet Office, stated the legislation was a direct response to fraud during the pandemic. "During the pandemic, when people and businesses needed government support the most, some people stole public money for their own personal gain," she said.
"This legislation gives the government tough new powers that can be used to investigate and recover money stolen from the public during covid and doubles the time we have to bring fraudsters to justice," Gould added.
Former DWP boss Liz Kendall also commented, emphasising the consequences for offenders. "We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money," she said.
"This means greater consequences for fraudsters who cheat and evade the system, including as a last resort in the most serious cases removing their driving licence," Kendall explained, noting the powers would have independent oversight to ensure proportionate use.
How to report suspected benefit fraud
Members of the public can report someone they suspect is committing benefit fraud to the DWP's Fraud and Error Service. The department will investigate the information provided, though this process can take some time.
The service will not disclose the outcome of an investigation to the person who made the report. If fraud is found, action can include stopping a person's benefits, forcing them to repay money, and prosecution through the courts.
