DWP letter warns of potential £5,000 fraud fines

Benefit claimants who receive a specific letter from the Department for Work and Pensions (DWP) could face serious consequences. This letter indicates they might be under investigation for potential benefit fraud, which could lead to fines as high as £5,000. The DWP and HM Revenue and Customs (HMRC) are taking steps to tackle suspected fraud. They may pause benefit payments and warn claimants about the legal risks if fraud is proven. The investigation may involve visits from Fraud Investigation Officers (FIOs) or interviews under caution, where benefits will be reviewed. Claimants should be aware that interviews could be recorded for criminal investigations. Citizens Advice suggests that anyone facing this situation should seek legal help. Legal support can guide claimants through the process and offer the best advice. If fraud is found, claimants may need to repay any overpaid benefits. They could also face legal action or fines ranging from £350 to £5,000. In some cases, benefits might be reduced or stopped for up to three years, depending on how frequently fraud has occurred. Only certain benefits, known as ‘sanctionable benefits,’ can be reduced or stopped. These include Carer’s Allowance, Jobseeker’s Allowance, and Universal Credit, among others. If fraud occurs with a benefit that cannot be stopped, other benefits may be affected as well.