Loss of benefit as a penalty for benefit fraud 15.4.2026 | Her Majesty's Revenue and Customs Changes to the way benefits can be reduced or stopped as a penalty for a benefit fraud offence following the Welfare Reform Act 2012. The Welfare Reform Act 2012 introduced tougher penalties for people who commit benefit fraud. Benefits can be reduced or stopped if a claimant, their partner or a family member is convicted of a benefit fraud offence or accepts an administrative penalty for such an offence. An administrative penalty is a financial penalty offered by DWP as an alternative to prosecution. https://www.gov.uk/government/publications/loss-of-benefit-as-a-penalty-for-benefit-fraud