Session 2010 - 12
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Welfare Reform Bill


Welfare Reform Bill
Part 5 — Social security: general

68

 

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;

 
 

 
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Revised 29 November 2011