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Loss of Benefit

From 1 April 2013 Loss of Benefit (LOB) penalties apply to tackle fraud and error in the benefits and tax credits system for offences that occur wholly on or after 1 April 2013.

The LOB provisions are designed to be a deterrent against abuses of the benefit system by applying a benefit reduction penalty to those who are convicted, or who have accepted an administrative penalty for a benefit fraud offence.

Loss of Benefit levels

There are 5 Loss of Benefit levels as follows:

Level 1 – offences which result in an Administrative Penalty (Ad Pen) will result in a LOB penalty of 4 weeks;

Level 2 – for a first benefit fraud conviction the LOB penalty duration will be 13 weeks;

Level 3 – where there are two offences, within a set time period, with the latter resulting in a conviction the LOB penalty will be for a period of 26 weeks;

Level 4 – a 3 year LOB penalty where there are three offences within a set time period the latter resulting in a conviction;

Level 5 – an immediate 3 year LOB for serious organised and identity fraud cases.

Additional Information

More information can be obtained from Related Downloads and Related Sites section of this page.

Related Sites

School Place, Kirkwall, Orkney, KW15 1NY

Telephone: 01856 873535

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Orkney Islands Council: BOREAS DOMUS MARE AMICUS