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On top of any fine or custodial sentence handed out by the courts, new measures include:

• up to 40% of benefits may be taken to repay stolen cash 鈥� so the money is returned quicker than it would be under the current rules
• the amount that can be deducted directly from pay packets to recover fraudulent overpayments increased to 40%
• larger penalties 鈥� the maximum administrative penalty a fraudster can receive will rise from 拢2,000 to 拢5,000
• bailiffs used to confiscate high-value possessions from convicted benefit cheats
• checking Jobseeker鈥檚 Allowance claims against PAYE reported in real time to highlight and catch cheats with jobs

Minister for Welfare Reform Lord Freud said:

皇冠体育appse new measures will ensure the welfare safety net helps families who want to work hard and play by the rules, not the minority who want to abuse the benefits system.

Action already taken to counter the estimated 拢1.2 billion lost in benefit fraud in 2012/13 includes:

• investigators are making greater use of Proceeds of Crime Act powers
• extended loss of benefit for offences which result in a conviction of 13 weeks for a first offence, then 26 weeks for a second offence and 3 years for a third offence
• an immediate 3 year loss of benefit for serious organised benefit fraud or identity fraud
• a 拢50 civil penalty in cases where claimants negligently give incorrect information on their claim or fail to report a change in circumstances which results in an overpayment

More information

Read the Fraud and Error in the benefit system: 2012/13 estimates

Contact Press Office

Media enquiries for this press release 鈥� 0203 267 5123

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