ANNEX H Revenues and Benefits Milton Keynes Council Sanctions and Prosecutions Policy www.milton-keynes.gov.uk/benefits MKC Sanctions and Prosecutions Policy Final 2015 Page 1 of 7
Version Control Version Date Author Comments 1 31 May 2008 C Annison Paul Strangward 2 21 September 2008 C Annison Agreed by John Neilson (Director of Finance) June 2009 3 22 December 2011 P Strangward 4 9 November 2012 P Strangward 5 8 April 2013 P Strangward 6 7 April 2014 P Strangward 7 8 January 2015 P Strangward MKC Sanctions and Prosecutions Policy Final 2015 Page 2 of 7
Sanctions and Prosecutions 1. Introduction Milton Keynes Council recognises that the overwhelming majority of people using its Revenues and Benefits Service do so properly and honestly. However, we acknowledge that there is a minority that commit fraud with the intention of obtaining benefits or discounts to which there is no entitlement. The Council is committed to protecting public funds and takes the matter of Housing Benefit and Council Tax fraud very seriously. The aim of this policy is to deter Housing Benefit and Council Tax fraud by pursuing the range of sanctions available to the Council, including prosecution and referring cases to the DWP s Single Fraud Investigation Service (SFIS), in cases where people have intentionally abused the Council Tax and/or benefit scheme for their own benefit or the benefit of others. 2. Statement of Objectives In developing our Sanctions and Prosecutions Policy, the Council s objectives are: To protect public funds. To deter Housing Benefit and Council Tax fraud by pursuing the range of sanctions available to the Council. To ensure that decisions to apply sanctions are consistent, reasonable and fair. 3. Background Local Authorities have a right, to prosecute Council Tax related fraud using the Fraud Act 2006. The DWP SFIS also has the authority to prosecute cases that involve Housing Benefit. The Council is a signatory to the DWP/LA Service Level Agreement, which facilitates a consistent approach to data sharing between the two when referring cases for investigation and providing information. 4. Policy Milton Keynes Council is committed to protecting public funds through its action on fraud. Where fraud is established because of an investigation, Council Tax Reduction Schemes (Detection of Fraud and Enforcement) (England) Regulations 2013 and Fraud Act legislation provides Councils with several options. 4.1. Decision making The decision making process will be carried out by the Council s Audit Services Manager, who will consider the recommendations of the Investigation Officer. Before a decision on action is made, the test of public interest will be applied. This will act as guidance for any MKC Sanctions and Prosecutions Policy Final 2015 Page 3 of 7
decision maker. They will then consider the recommendation and decide on the appropriate action to be taken dependent upon the circumstances of each individual case. 4.1.1. The Public Interest Test. 4.2. Sanctions Those involved in this decision making process must be mindful of factors of public or council interest, applying the necessary gravity and relevance to each. These may include: Relevant previous convictions or court orders Milton Keynes Council staff or member involvement in the offence The period and amount of overpayment The offender is in a position of trust The age and welfare of the offender Any Social Services involvement The publicity and deterrent factors Benefit Fraud investigations will be undertaken by the SFIS and they will be responsible for applying sanctions in these cases. However, the Corporate Anti-Fraud Team (CAFT) will undertake Council Tax and all other fraud related investigations. After applying the Public Interest Test, we will consider administering a Local Authority Caution, financial penalty or prosecution, which will be at the discretion of the Audit Services Manager. 4.2.1. Simple Caution A Corporate Anti-Fraud Team Investigations Officer will interview the offender and advise that it is considered that an offence has been committed. The Officer will explain the seriousness of the offence and that the Caution is an alternative to prosecution. The Caution will be recorded by the Council, but is not a conviction. 4.2.2. Financial Penalty The offender will be notified and advised about the seriousness of the offence, but not necessarily interviewed. This sanction carries more of a deterrent against re-offending, ensures that the fraudster is financially penalised for the offence and offers the Council some recompense for the costs of the investigation. MKC Sanctions and Prosecutions Policy Final 2015 Page 4 of 7
In cases of single Person Discount fraud the offender may be liable to a charge of 70 which could increase if there is a continual failure to provide the correct information. 4.2.3. Prosecution The Council will take effective prosecution action where the circumstances do not suggest that any alternative course of action is appropriate and will be assessed on a case by case basis at the discretion of the Audit Services Manager. The above courses of action may be taken in respect of the person committing the fraud, be that the person claiming the discount, their landlord or any other person deemed to have committed an offence by colluding with that person or allowing another to claim the discount. 4.2.4 Council Tax Reduction Scheme Sanctions There are provisions under this scheme to offer sanctions similar to those under the Social Security Administration Act. Therefore, the Corporate Anti-Fraud Team will consider prosecution in appropriate cases or as an alternative will offer a Local Authority Caution or financial penalty of 50% of the excess award. This will be calculated on a daily basis from the date of the award until the date the Council could reasonably be aware of the excess award, subject to a minimum of 100 and maximum of 1,000. A penalty of 70 may also be imposed by the Council if someone negligently makes an incorrect statement in connection with an application for a reduction under the scheme, or where a person fails to notify a change of circumstances. 4.3. Partnership Working The Council works in partnership with other external organisations such as Thames Valley Police, the Department for Work and Pensions, Her Majesty s Revenue and Customs, the UK Borders Agency and other Local Authorities. 4.4. Recovery of Monies In addition to any formal course of action the Council decides to take, the Council will always seek to recover overpaid benefit or falsely claimed discounts Where a prosecution is deemed appropriate the Council will also seek an award of costs commensurate with the costs of the investigation. 4.5. Publicity It is the Council s intention to promote this Policy as well as the outcome of any prosecutions, with the intention of deterring others from fraudulent activity. MKC Sanctions and Prosecutions Policy Final 2015 Page 5 of 7
5. Monitoring Performance The Council will endeavour to ensure that the Sanctions and Prosecutions Policy is applied fairly and consistently. To that end we will review the policy periodically to ensure that it remains up to date and relevant and is in line with best practice. MKC Sanctions and Prosecutions Policy Final 2015 Page 6 of 7
Sanctions and Prosecutions Policy www.milton-keynes.uk/benefits www.milton-keynes.gov.uk/council-tax Available in audio, large print, Braille and other languages Tel 01908 253798 Milton Keynes Council Civic Offices 1Saxon Gate East Central Milton Keynes MK9 3EJ Benefits T 01908 253100 F 01908 253025 E benefits@milton-keynes.gov.uk Council Tax T 01908 253794 F 01908 253707 E counciltax@milton-keynes.gov.uk W www.http://www.milton- MKC Sanctions and Prosecutions Policy Final 2015 Page 7 of 7