Higher maximum penalties proposed for benefit-related fraud offences
- Employment & Social Security is proposing reforms to increase penalties for benefit-related fraud.
- Current penalties for such offences are low compared to neighbouring jurisdictions.
- Proposed changes include allowing all benefit-related fraud offences to be heard in either the Magistrate’s Court or the Royal Court.
- The maximum penalty for benefit-related fraud offences could increase to seven years’ imprisonment.
- The intention is to enhance deterrence and ensure penalties reflect the seriousness of the offences.
Employment & Social Security has announced a proposal aimed at reforming the penalties for benefit-related fraud offences in Guernsey.
This initiative is outlined in the Committee’s Non-contributory Benefit Rates for 2026 report and seeks to align local penalties with those in the UK and Jersey.
Currently, the penalties for offences such as making false statements to receive benefits are considerably lower than those in neighbouring jurisdictions.
To address this disparity, the Committee is advocating for all benefit-related fraud offences to be heard in either the Magistrate’s Court or the Royal Court. This will provide courts with greater flexibility in managing these cases.
The proposal includes amending penalty provisions so that the Magistrate's Court can impose fines up to £20,000, which is double the current level five on the uniform scale, and/or two years’ imprisonment for a single offence. For multiple offences, the penalty could extend to three years’ imprisonment.
The maximum penalty for all benefit-related fraud offences may be raised to seven years’ imprisonment. This change is intended to reflect the severity of these crimes and act as a deterrent to potential offenders.
Deputy Tina Bury, Employment & Social Security President, said: “While the vast majority of benefit claims are made honestly and in good faith, deliberate fraud must be met with penalties that reflect the seriousness of the offence. By aligning Guernsey’s sentencing powers with those of the UK and Jersey we are sending a clear message that benefit fraud is no less serious than any other type of fraud.”
If the Committee’s proposals are approved by the States, the courts will continue to impose a sentence that fits the crime, but they will have the freedom to appropriately punish the most serious offenders, she said.
The proposal is part of the annual review of non-contributory benefits, which include income support, family allowance, severe disability benefit, carer’s allowance and the mesothelioma compensation scheme.
It has recommended that the majority of non-contributory benefit rates, limits, and allowances that will apply from early January 2026, be increased in line with inflation by 3.7%.
Winter fuel allowance will rise by 4.3%, taking it to £42.42 per week for the period from 31st October 2025 to 30th April 2026.
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