Resorting to fraud to receive government benefits
3-1-2018 | IslamWeb
Question:
Assalaamu alaykum. My family is involved in benefit fraud. When I decided to move back in, my mum told me not to inform the council as this would reduce her benefits, so my uncle registered me on my grandad's address. I found work within a fortnight, but I was greedy for money, so I justified the lies. I recently quit my job, as it was haram. I am repenting to Allah for my major sins. I have spoken with my mum and showed her fatwa 195435, but her only concern is money. I am looking to get married, Allah willing. I explained that this is all going to come out eventually because, if I do get married, then my husband will have to give my previous address to the council. She wants him to lie, but I am not going to let that happen. My mum's benefits are a mixture of halal and haram, as what she claims for my sister is not a lie, but the rest is. I am wary of consuming haram, so I have stopped eating the household food, but I fear that I might be going to extremes. I have spoken with my uncle, but he does not see how he is involved. My grandad does not know why I have been registered at his address, but when this comes out, it will affect him too. This is all a horrible mess, and it has been going on since January 2015. My question is: should I inform the council of our fraud? In the worst case scenario, my mum's benefits are ended, she has to pay back the money and pay a fine, and they take us to court, which may lead to them jailing and evicting us. I do not know what the consequences would be for my grandad and my uncle, who has a family of his own. Please understand that I do not want to place anyone in difficulty nor damage family ties, but I also do not want us to meet Allah as liars and thieves. I just want to repent. Like I said, this is definitely going to come out if I get married, so I am desperate to fix this now, without getting anyone else involved. My mum thinks that she is going to get away with this indefinitely. Please advise me. I am prepared to do whatever it takes. May Allah reward you immensely for taking the time to answer my question.
Answer:
All perfect praise be to Allah, the Lord of the worlds. I testify that there is none worthy of worship except Allah and that Muhammad 
is His slave and Messenger.
Evading the law or the system by deception, fraud, and cheating is forbidden, and the money acquired therefrom is unlawful. Hence, one must repent to Allah and return that money to the authority which gave it to him, unless it is not possible to do so or if this leads to a greater harm; in which case that money should be spent on the poor and public interest.
The fatwa of the Standing Committee reads, "If the employee is not allowed to take leave of absence, then he must return the salary he received for the days of absence to his employer. If this is not possible, or if there is a major harm on him in doing so, then he should give the money in charity to the poor."
Your family must also stop taking that money. However, you are not obliged to inform the concerned authorities about the truth of the matter and the fraud that happened, especially if it entails a significant harm, such as going to jail.
You may consult reliable Islamic Centers in your country, as they may guide you to an appropriate and safe course of action.
Allah knows best.