Welfare Reform Bill

Session 2010 - 12
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Other Bills before Parliament

Welfare Reform Bill

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101
Supersession of decisions of former appellate bodies
(1)
Schedule 12 contains amendments reinstating powers to make decisions
superseding decisions made by appellate bodies before their functions were
transferred to the First-tier Tribunal and Upper Tribunal.
(2)
The following have effect as if they had come into force on 3 November 2008—
5
(a)
the amendments made by Schedule 12, and
(b)
if regulations made in the exercise of the powers conferred by virtue of
those amendments so provide, those regulations.
Electronic communications
102
Electronic communications
10
(1)
In section 189 of the Social Security Administration Act 1992 (regulations and
orders - general), after subsection (5) there is inserted—
“(5A)
The provision referred to in subsection (5) includes, in a case where
regulations under this Act require or authorise the use of electronic
communications, provision referred to in section 8(4) and (5) and 9(5)
15
of the Electronic Communications Act 2000.
(5B)
For the purposes of subsection (5A), references in section 8(4) and (5)
and 9(5) of the Electronic Communications Act 2000 to an order under
section 8 of that Act are to be read as references to regulations under
this Act; and references to anything authorised by such an order are to
20
be read as references to anything required or authorised by such
regulations.”
(2)
In section 79 of the Social Security Act 1998 (regulations and orders), after
subsection (6) there is inserted—
“(6A)
The provision referred to in subsection (6) includes, in a case where
25
regulations under this Act require or authorise the use of electronic
communications, provision referred to in section 8(4) and (5) and 9(5)
of the Electronic Communications Act 2000.
(6B)
For the purposes of subsection (6A), references in section 8(4) and (5)
and 9(5) of the Electronic Communications Act 2000 to an order under
30
section 8 of that Act are to be read as references to regulations under
this Act; and references to anything authorised by such an order are to
be read as references to anything required or authorised by such
regulations.”
Recovery of benefits
35
103
Recovery of benefit payments
(1)
In the Social Security Administration Act 1992, after section 71ZA there is

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inserted—
“Recovery of benefit payments
71ZB
Recovery of overpayments of certain benefits
(1)
The Secretary of State may recover any amount of the following paid in
excess of entitlement—
5
(a)
universal credit,
(b)
jobseeker’s allowance,
(c)
employment and support allowance, and
(d)
except in prescribed circumstances, housing credit (within the
meaning of the State Pension Credit Act 2002).
10
(2)
An amount recoverable under this section is recoverable from—
(a)
the person to whom it was paid, or
(b)
such other person (in addition to or instead of the person to
whom it was paid) as may be prescribed.
(3)
An amount paid in pursuance of a determination is not recoverable
15
under this section unless the determination has been—
(a)
reversed or varied on an appeal, or
(b)
revised or superseded under section 9 or section 10 of the Social
Security Act 1998,

except where regulations otherwise provide.
20
(4)
Regulations may provide that amounts recoverable under this section
are to be calculated or estimated in a prescribed manner.
(5)
Where an amount of universal credit is paid for the sole reason that a
payment by way of prescribed income is made after the date which is
the prescribed date for payment of that income, that amount is for the
25
purposes of this section paid in excess of entitlement.
(6)
In the case of a benefit referred to in subsection (1) which is awarded to
persons jointly, an amount paid to one of those persons may for the
purposes of this section be regarded as paid to the other.
(7)
An amount recoverable under this section may (without prejudice to
30
any other means of recovery) be recovered—
(a)
by deduction from benefit (section 71ZC);
(b)
by deduction from earnings (section 71ZD);
(c)
through the courts etc (section 71ZE);
(d)
by adjustment of benefit (section 71ZF).
35
71ZC
Deduction from benefit
(1)
An amount recoverable from a person under section 71ZB may be
recovered by deducting the amount from payments of prescribed
benefit.
(2)
Where an amount recoverable from a person under section 71ZB was
40
paid to the person on behalf of another, subsection (1) authorises its
recovery from the person by deduction—
(a)
from prescribed benefits to which the person is entitled,

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(b)
from prescribed benefits paid to the person to discharge (in
whole or in part) an obligation owed to that person by the
person on whose behalf the recoverable amount was paid, or
(c)
from prescribed benefits paid to the person to discharge (in
whole or in part) an obligation owed to that person by any other
5
person.
(3)
Where an amount is recovered as mentioned in paragraph (b) of
subsection (2), the obligation specified in that paragraph shall in
prescribed circumstances be taken to be discharged by the amount of
the deduction.
10
(4)
Where an amount is recovered as mentioned in paragraph (c) of
subsection (2), the obligation specified in that paragraph shall in all
cases be taken to be so discharged.
71ZD
Deduction from earnings
(1)
Regulations may provide for amounts recoverable under section 71ZB
15
to be recovered by deductions from earnings.
(2)
In this section “earnings” has such meaning as may be prescribed.
(3)
Regulations under subsection (1) may include provision—
(a)
requiring the person from whom an amount is recoverable (“the
beneficiary”) to disclose details of their employer, and any
20
change of employer, to the Secretary of State;
(b)
requiring the employer, on being served with a notice by the
Secretary of State, to make deductions from the earnings of the
beneficiary and to pay corresponding amounts to the Secretary
of State;
25
(c)
as to the matters to be contained in such a notice and the period
for which a notice is to have effect;
(d)
as to how payment is to be made to the Secretary of State;
(e)
as to a level of earnings below which earnings must not be
reduced;
30
(f)
allowing the employer, where the employer makes deductions,
to deduct a prescribed sum from the beneficiary’s earnings in
respect of the employer’s administrative costs;
(g)
requiring the employer to keep records of deductions;
(h)
requiring the employer to notify the Secretary of State if the
35
beneficiary is not, or ceases to be, employed by the employer;
(i)
creating a criminal offence for non-compliance with the
regulations, punishable on summary conviction by a fine not
exceeding level 3 on the standard scale;
(j)
with respect to the priority as between a requirement to deduct
40
from earnings under this section and—
(i)
any other such requirement;
(ii)
an order under any other enactment relating to England
and Wales which requires deduction from the
beneficiary’s earnings;
45
(iii)
any diligence against earnings.

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71ZE
Court action etc
(1)
Where an amount is recoverable under section 71ZB from a person
residing in England and Wales, the amount is, if a county court so
orders, recoverable—
(a)
under section 85 of the County Courts Act 1984, or
5
(b)
otherwise as if it were payable under an order of the court.
(2)
Where an amount is recoverable under section 71ZB from a person
residing in Scotland, the amount recoverable may be enforced as if it
were payable under an extract registered decree arbitral bearing a
warrant for execution issued by the sheriff court of any sheriffdom in
10
Scotland.
(3)
Any costs of the Secretary of State in recovering an amount of benefit
under this section may be recovered by him as if they were amounts
recoverable under section 71ZB.
(4)
In any period after the coming into force of this section and before the
15
coming into force of section 62 of the Tribunals, Courts and
Enforcement Act 2007, subsection (1)(a) has effect as if it read “by
execution issued from the county court”.
71ZF
Adjustment of benefit
Regulations may for the purpose of the recovery of amounts
20
recoverable under section 71ZB make provision—
(a)
for treating any amount paid to a person under an award which
it is subsequently determined was not payable—
(i)
as properly paid, or
(ii)
as paid on account of a payment which it is determined
25
should be or should have been made,

and for reducing or withholding arrears payable by virtue of the
subsequent determination;
(b)
for treating any amount paid to one person in respect of another
as properly paid for any period for which it is not payable in
30
cases where in consequence of a subsequent determination—
(i)
the other person is entitled to a payment for that period,
or
(ii)
a third person is entitled in priority to the payee to a
payment for that period in respect of the other person,
35

and by reducing or withholding any arrears payable for that
period by virtue of the subsequent determination.
71ZG
Recovery of payments on account
(1)
The Secretary of State may recover any amount paid under section
5(1)(r) (payments on account).
40
(2)
An amount recoverable under this section is recoverable from—
(a)
the person to whom it was paid, or
(b)
such other person (in addition to or instead of the person to
whom it was paid) as may be prescribed.
(3)
Regulations may provide that amounts recoverable under this section
45
are to be calculated or estimated in a prescribed manner.

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(4)
In the case of a payment on account of a benefit which is awarded to
persons jointly, an amount paid to one of those persons may for the
purposes of this section be regarded as paid to the other.
(5)
Sections 71ZC, 71ZD and 71ZE apply in relation to amounts
recoverable under this section as to amounts recoverable under section
5
71ZB.
71ZH
Recovery of hardship payments etc
(1)
The Secretary of State may recover any amount paid by way of—
(a)
a payment under section 28 of the Welfare Reform Act 2011
(universal credit hardship payments) which is recoverable
10
under that section,
(b)
a payment under section 19C of the Jobseekers Act 1995
(jobseeker’s allowance hardship payments) which is
recoverable under that section,
(c)
a payment of a jobseeker’s allowance under paragraph 8 or 8A
15
of Schedule 1 to that Act (exemptions), where the allowance is
payable at a prescribed rate under paragraph 9 of that Schedule
and is recoverable under that paragraph,
(d)
a payment of a jobseeker’s allowance under paragraph 10 of
that Schedule (claims yet to be determined etc) which is
20
recoverable under that paragraph, or
(e)
a payment which is recoverable under section 6B(5A)(d) or
(7)(d), 7(2A)(d) or (4)(d), 8(3)(aa), (4)(d) or 9(2A)(d) or (4)(d) of
the Social Security Fraud Act 2001.
(2)
An amount recoverable under this section is recoverable from—
25
(a)
the person to whom it was paid, or
(b)
such other person (in addition to or instead of the person to
whom it was paid) as may be prescribed.
(3)
Regulations may provide that amounts recoverable under this section
are to be calculated or estimated in a prescribed manner.
30
(4)
Where universal credit or a jobseeker’s allowance is claimed by persons
jointly, an amount paid to one claimant may for the purposes of this
section be regarded as paid to the other.
(5)
Sections 71ZC to 71ZF apply in relation to amounts recoverable under
this section as to amounts recoverable under section 71ZB.”
35
(2)
In section 71 of that Act (overpayments - general), in subsection (11)(ab), at the
end there is inserted “excluding housing credit (see section 71ZB)”.
(3)
In section 115A of that Act (penalty as alternative to prosecution), in subsection
(1), after “71” there is inserted “71ZB”.
(4)
In section 115B of that Act (penalty as alternative to prosecution: colluding
40
employers etc)—
(a)
for subsection (4) there is substituted—
“(4)
If the recipient of a notice under subsection (3) above agrees, in
the specified manner, to pay the penalty—
(a)
the amount of the penalty shall be recoverable from the
45
recipient by the Secretary of State or authority; and

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(b)
no criminal proceedings shall be instituted against the
recipient in respect of the conduct to which the notice
relates.
(4A)
Sections 71ZC, 71ZD and 71ZE above apply in relation to
amounts recoverable under subsection (4)(a) above as to
5
amounts recoverable by the Secretary of State under section
71ZB above (and, where the notice is given by an authority
administering housing benefit or council tax benefit, those
sections so apply as if references to the Secretary of State were
to that authority).”;
10
(b)
in subsection (9), the definition of “relevant benefit” is repealed.
(5)
In Schedule 1 to the Jobseekers Act 1995 (supplementary provision)—
(a)
in paragraph 9, at the end there is inserted—
“(c)
as to whether the whole or part of any amount of a
jobseeker’s allowance which is payable as specified in
15
paragraph (a) is recoverable.”;
(b)
in paragraph 10, for sub-paragraph (5)(a) there is substituted—
“(a)
as to whether the whole or part of any amount paid
by virtue of sub-paragraph (1) or (2) is recoverable;”.
(6)
In section 12 of the Social Security Act 1998 (appeal to First-tier Tribunal), in
20
subsection (4), after “71” there is inserted “, 71ZB, 71ZG, 71ZH,”.
(7)
In Schedule 3 to that Act (decisions against which an appeal lies), after
paragraph 6 there is inserted—
“6A
A decision as to whether payment of housing credit (within the
meaning of the State Pension Credit Act 2002) is recoverable under
25
section 71ZB of the Administration Act.
6B
A decision as to the amount of payment recoverable under section
71ZB, 71ZG or 71ZH of the Administration Act.”
104
Deduction from earnings: other cases
(1)
In section 71 of the Social Security Administration Act 1992 (overpayments -
30
general), after subsection (9) there is inserted—
“(9A)
Regulations may provide for amounts recoverable under the
provisions mentioned in subsection (8) above to be recovered by
deductions from earnings.
(9B)
In subsection (9A) above “earnings” has such meaning as may be
35
prescribed.
(9C)
Regulations under subsection (9A) above may include provision—
(a)
requiring the person from whom an amount is recoverable (“the
beneficiary”) to disclose details of their employer, and any
change of employer, to the Secretary of State;
40
(b)
requiring the employer, on being served with a notice by the
Secretary of State, to make deductions from the earnings of the
beneficiary and to pay corresponding amounts to the Secretary
of State;
(c)
as to the matters to be contained in such a notice and the period
45
for which a notice is to have effect;

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(d)
as to how payment is to be made to the Secretary of State;
(e)
as to a level of earnings below which earnings must not be
reduced;
(f)
allowing the employer, where the employer makes deductions,
to deduct a prescribed sum from the beneficiary’s earnings in
5
respect of the employer’s administrative costs;
(g)
requiring the employer to keep records of deductions;
(h)
requiring the employer to notify the Secretary of State if the
beneficiary is not, or ceases to be, employed by the employer;
(i)
creating a criminal offence for non-compliance with the
10
regulations, punishable on summary conviction by a fine not
exceeding level 3 on the standard scale;
(j)
with respect to the priority as between a requirement to deduct
from earnings under this section and—
(i)
any other such requirement;
15
(ii)
an order under any other enactment relating to England
and Wales which requires deduction from the
beneficiary’s earnings;
(iii)
any diligence against earnings.”
(2)
In section 71ZA of that Act (overpayments out of social fund), before
20
subsection (3) there is inserted—
“(2A)
Subsection (9A) of section 71 above as it so applies shall have effect as
if the reference to amounts recoverable under the provisions mentioned
in subsection (8) of that section were to amounts recoverable under
subsections (1) and (4) of that section by virtue of subsection (1) above.”
25
(3)
In section 75 of that Act (overpayments of housing benefit), at the end there is
inserted—
“(8)
Regulations may provide for amounts recoverable under this section to
be recovered by deductions from earnings.
(9)
In subsection (8) above “earnings” has such meaning as may be
30
prescribed.
(10)
Regulations under subsection (8) above may include provision—
(a)
requiring the person from whom an amount is recoverable (“the
beneficiary”) to disclose details of their employer, and any
change of employer, to the Secretary of State or the authority
35
which paid the benefit;
(b)
requiring the employer, on being served with a notice by the
Secretary of State or the authority which paid the benefit, to
make deductions from the earnings of the beneficiary and to
pay corresponding amounts to the Secretary of State or that
40
authority;
(c)
as to the matters to be contained in such a notice and the period
for which a notice is to have effect;
(d)
as to how payment is to be made to the Secretary of State or the
authority which paid the benefit;
45
(e)
as to a level of earnings below which earnings must not be
reduced;