Debt out of need not greed
People claim benefits as a means of getting out of debt but did you know that over £1.4 billion claims are from those ineligible to receive help?
Over 50% of fraudulent claims come from Job Seekers Allowance, Income Support and Housing Benefit applicants. As a result, public services fall behind. Instead of seeking a legitimate debt solution like an IVA, more people are trying to 'cheat the system'.
Fraudulent benefit claims are used to increase current benefit payments or to decrease rent or council tax payments. Some people claim Income Support when they are working part-time and do not declare their earnings.
Although some people are clearly abusing the system, others are doing so out of need to try to cope with everyday living costs and mounting debt.
Many find it difficult to give up their benefits and find full-time employment as a forty hour working week would not see them any better off financially. As a result, some claim benefits and take ‘cash in hand’ payments for work.
Those who are suspected of benefit fraud are visited at their homes by officers or requested to attend an interview. Benefits are likely to be stopped whilst the case is being investigated. The end result could be prosecution.
Although the government is clamping down on benefit fraud, a lot more thought needs to go into reviewing the system for those who are forced to commit benefit fraud to survive. If you are having problems paying off your debts, there is free debt counselling available from the Debt Advice Trust. There are many debt solutions available, such as an IVA or debt management plan, that could help you become debt free.
