Commentary on Sections Part 5: Social security: General Section 114: Amount of penalty
584.Section 114 replaces subsection (3) of section 115A of SSAA 1992 (penalty as alternative to prosecution). The purpose is to provide for a minimum financial penalty to apply to all cases of benefit fraud where a claimant is offered the penalty to avoid prosecution.
585.New subsection (3) provides that in the event of a fraud resulting in an overpayment, the penalty will be £350 or 50% of the amount overpaid whichever is greater up to a maximum of £2000. Subsection (3A) provides that, in cases where there is no overpayment, the penalty will be fixed at £350.
586.New subsection (3B) gives the Secretary of State the power to amend, by order, either the percentage of the amount of overpayment, or the minimum and maximum amounts that can be offered as a penalty.