Be honest or be prosecuted.

PEOPLE are being warned they must declare all savings when they claim benefits or face prosecution.

Since April 2006, South Tyneside Council's fraud team has successfully investigated more than 100 cases involving residents who have tried to cheat the system by not declaring savings, including those belonging to partners, when claiming housing and council tax benefits.

This year, inquiries into claims where people have not declared the true value of their capital have resulted in overpayments of almost pounds 90,000.

The council says it seeks to recover all overpaid cash as a result of fraud and people who are caught may receive a caution, be asked to pay extra money or end up in court. Punishments given out by the court include unpaid work orders, a fine and imprisonment.

Coun Ed Malcolm, lead member for resources, said: "Fraudulent benefit claims increase costs to the council and to all law-abiding taxpayers.

"As well as loss of revenue, the authority has to bear the cost of recovery and prosecution. Fraud is not a victimless crime and South Tyneside Council will vigorously pursue anyone who fails to declare all capital when seeking to claim benefits."

Capital is any type of savings or investments. It includes bank and building society accounts, Post Office accounts, national savings certificates, ISAs, stocks, shares, bonds, property other than the home you live in and cash.

If the total value of capital is less than pounds 6,000, or pounds 10,000 for people aged 60 or over, it will not affect a benefit claim.

CAPTION(S):

STARK WARNING: Coun Ed Malcolm