Welfare Reform Bill

Session 2010 - 12
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Other Bills before Parliament

Welfare Reform Bill

Welfare Reform Bill
Part 5 — Social security: general
81

115D
Failure to disclose information
(1)
A penalty of a prescribed amount may be imposed on a person by the
appropriate authority where—
(a)
the person, without reasonable excuse, fails to provide
information or evidence in accordance with requirements
5
imposed on the person by the appropriate authority in
connection with a claim for, or an award of, a relevant social
security benefit,
(b)
the failure results in the making of an overpayment, and
(c)
the person has not been charged with an offence or cautioned,
10
or been given a notice under section 115A, in respect of the
overpayment.
(2)
A penalty of a prescribed amount may be imposed on a person by the
appropriate authority where—
(a)
the person, without reasonable excuse, fails to notify the
15
appropriate authority of a relevant change of circumstances in
accordance with requirements imposed on the person under
relevant social security legislation,
(b)
the failure results in the making of an overpayment, and
(c)
the person has not been charged with an offence or cautioned,
20
or been given a notice under section 115A, in respect of the
overpayment.
(3)
Where a person is making, or has made, a claim for a benefit for a
period jointly with another, and both of them fail as mentioned in
subsection (1) or (2), only one penalty may be imposed in respect of the
25
same overpayment.
(4)
A penalty imposed under subsection (1) or (2) is recoverable by the
appropriate authority from the person on whom it is imposed.
(5)
Sections 71ZC, 71ZD and 71ZE apply in relation to amounts
recoverable by the appropriate authority under subsection (4) as to
30
amounts recoverable by the Secretary of State under section 71ZB (and,
where the appropriate authority is not the Secretary of State, those
sections so apply as if references to the Secretary of State were to that
authority).
(6)
In this section “relevant change of circumstances”, in relation to a
35
person, means a change of circumstances which affects any entitlement
of the person to any benefit or other payment or advantage under any
provision of the relevant social security legislation.”
(2)
In section 190 of that Act (parliamentary control of orders and regulations), in
subsection (1), before paragraph (za) there is inserted—
40
“(zzb)
regulations under section 115C(2) or 115D(1) or (2);”.
Loss of benefit
115
Benefit offences: disqualifying and sanctionable benefits
(1)
In the Social Security Fraud Act 2001, section 6A (meaning of “disqualifying
benefit” and “sanctionable benefit”) is amended as follows.
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(2)
In subsection (1), in the definition of “disqualifying benefit”, after paragraph
(e) there is inserted—
“(f)
child tax credit;
(g)
working tax credit;”.
(3)
In that subsection, in the definition of “sanctionable benefit”, after paragraph
5
(f) there is inserted—
“(fa)
child tax credit;
(fb)
working tax credit;”.
116
Benefit offences: period of sanction
(1)
The Social Security Fraud Act 2001 is amended as follows.
10
(2)
Section 6B (loss of benefit in case of conviction, penalty or caution for benefit
offence) is amended as follows.
(3)
In subsection (11), for “the period of four weeks” there is substituted “the
relevant period”.
(4)
After subsection (11) there is inserted—
15
“(11A)
For the purposes of subsection (11) the relevant period is—
(a)
in a case falling within subsection (1)(a) where the benefit
offence, or one of them, is a relevant offence, the period of three
years,
(b)
in a case falling within subsection (1)(a) (but not within
20
paragraph (a) above)), the period of 13 weeks, or
(c)
in a case falling within subsection (1)(b) or (c), the period of four
weeks.”
(5)
After subsection (13) there is inserted—
“(14)
In this section and section 7 “relevant offence” means—
25
(a)
in England and Wales, the common law offence of conspiracy to
defraud, or
(b)
a prescribed offence which, in the offender’s case, is committed
in such circumstances as may be prescribed, and which, on
conviction—
30
(i)
is found by the court to relate to an overpayment (as
defined in section 115A(8) of the Administration Act) of
at least £50,000,
(ii)
is punished by a custodial sentence of at least one year
(including a suspended sentence as defined in section
35
189(7)(b) of the Criminal Justice Act 2003), or
(iii)
is found by the court to have been committed over a
period of at least two years.”
(6)
After subsection (14) (inserted by subsection (5) above) there is inserted—
“(15)
The Secretary of State may by order amend subsection (11A)(a), (b) or
40
(c), or (14)(b)(i), (ii) or (iii) to substitute a different period or amount for
that for the time being specified there.”
(7)
In section 7 (loss of benefit for second or subsequent conviction of benefit

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offence), after subsection (1) there is inserted—
“(1A)
The following restrictions do not apply if the benefit offence referred to
in subsection (1)(a), or any of them, is a relevant offence.”
(8)
In section 11 (loss of benefit regulations)—
(a)
in the heading, after “benefit” there is inserted “orders and”;
5
(b)
in subsection (3) at the end there is inserted—
“(e)
regulations under section 6B(14) or an order under
section 6B(15), or”;
(c)
in subsection (4) after “make”, in both places, there is inserted “an order
or”.
10
117
Benefit offences: sanctions for repeated benefit fraud
(1)
The Social Security Fraud Act 2001 is amended as follows.
(2)
In section 6B (loss of benefit in case of conviction, penalty or caution for benefit
offence), in subsection (3) for “later” there is substituted “current”.
(3)
Section 7 (loss of benefit for second or subsequent conviction of benefit offence)
15
is amended as follows.
(4)
In the heading, for “second or subsequent conviction of benefit offence” there
is substituted “repeated benefit fraud”.
(5)
For subsection (1)(a) to (e) there is substituted—
“(a)
a person (“the offender”) is convicted of one or more benefit
20
offences in a set of proceedings (“the current set of
proceedings”),
(b)
within the period of five years ending on the date on which the
benefit offence was, or any of them were, committed, one or
more disqualifying events occurred in relation to the offender
25
(the event, or the most recent of them, being referred to in this
section as “the earlier disqualifying event”),
(c)
the current set of proceedings has not been taken into account
for the purposes of any previous application of this section or
section 8 or 9 in relation to the offender or any person who was
30
then a member of his family,
(d)
the earlier disqualifying event has not been taken into account
as an earlier disqualifying event for the purposes of any
previous application of this section or either of those sections in
relation to the offender or any person who was then a member
35
of his family, and
(e)
the offender is a person with respect to whom the conditions for
an entitlement to a sanctionable benefit are or become satisfied
at any time within the disqualification period,”.
(6)
In subsection (6), for the words from “in relation to” to the end, there is
40
substituted “in an offender’s case, means the relevant period beginning with a
prescribed date falling after the date of the conviction in the current set of
proceedings”.
(7)
After that subsection there is inserted—
“(6A)
For the purposes of subsection (6) the relevant period is—
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(a)
in a case where, within the period of five years ending on the
date on which the earlier disqualifying event occurred, a
previous disqualifying event occurred in relation to the
offender, the period of three years;
(b)
in any other case, 26 weeks.”
5
(8)
After subsection (7) there is inserted—
“(7A)
Subsection (7B) applies where, after the agreement of any person (“P”)
to pay a penalty under the appropriate penalty provision is taken into
account for the purposes of the application of this section in relation to
that person—
10
(a)
P’s agreement to pay the penalty is withdrawn under
subsection (5) of the appropriate penalty provision,
(b)
it is decided on an appeal or in accordance with regulations
under the Social Security Act 1998 or the Social Security
(Northern Ireland) Order 1998 (S.I. 1998/1506 (N.I. 10)) that any
15
overpayment to which the agreement relates is not recoverable
or due, or
(c)
the amount of any overpayment to which the penalty relates is
revised on an appeal or in accordance with regulations under
the Social Security Act 1998 or the Social Security (Northern
20
Ireland) Order 1998 and there is no new agreement by P to pay
a penalty under the appropriate penalty provision in relation to
the revised overpayment.
(7B)
In those circumstances, all such payments and other adjustments shall
be made as would be necessary if no restriction had been imposed by
25
or under this section that could not have been imposed if P had not
agreed to pay the penalty.”
(9)
In subsection (8), the following definitions are inserted at the appropriate
places—
““appropriate penalty provision” has the meaning given in section
30
6B(2)(a);”
““disqualifying event” has the meaning given in section 6B(13).”
(10)
After that subsection there is inserted—
“(8A)
Where a person is convicted of more than one benefit offence in the
same set of proceedings, there is to be only one disqualifying event in
35
respect of that set of proceedings for the purposes of this section and—
(a)
subsection (1)(b) is satisfied if any of the convictions take place
in the five year periods mentioned there;
(b)
the event is taken into account for the purposes of subsection
(1)(d) if any of the convictions have been taken into account as
40
mentioned there;
(c)
in the case of the earlier disqualifying event mentioned in
subsection (6A)(a), the reference there to the date on which the
earlier disqualifying event occurred is a reference to the date on
which any of the convictions take place;
45
(d)
in the case of the previous disqualifying event mentioned in
subsection (6A)(a), that provision is satisfied if any of the
convictions take place in the five year period mentioned there.”

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(11)
After subsection (10) there is inserted—
“(10A)
The Secretary of State may by order amend subsection (6A) to
substitute different periods for those for the time being specified there.
(10B)
An order under subsection (10A) may provide for different periods to
apply according to the type of earlier disqualifying event or events
5
occurring in any case”.
(12)
In section 11 (loss of benefit regulations), in subsection (3), after paragraph (e)
(as inserted by section 116 above) there is inserted—
“(f)
an order under section 7(10A),”.
118
Loss of tax credits
10
(1)
The Tax Credits Act 2002 is amended as follows.
(2)
After section 36 there is inserted—
“Loss of tax credit provisions
36A
Loss of working tax credit in case of conviction etc for benefit offence
(1)
Subsection (4) applies where a person (“the offender”)—
15
(a)
is convicted of one or more benefit offences in any proceedings,
or
(b)
after being given a notice under subsection (2) of the
appropriate penalty provision by an appropriate authority,
agrees in the manner specified by the appropriate authority to
20
pay a penalty under the appropriate penalty provision to the
appropriate authority, in a case where the offence to which the
notice relates is a benefit offence, or
(c)
is cautioned in respect of one or more benefit offences.
(2)
In subsection (1)(b)—
25
(a)
“the appropriate penalty provision” means section 115A of the
Social Security Administration Act 1992 (penalty as alternative
to prosecution) or section 109A of the Social Security
Administration (Northern Ireland) Act 1992 (the corresponding
provision for Northern Ireland);
30
(b)
“appropriate authority” means—
(i)
in relation to section 115A of the Social Security
Administration Act 1992, the Secretary of State or an
authority which administers housing benefit or council
tax benefit, and
35
(ii)
in relation to section 109A of the Social Security
Administration (Northern Ireland) Act 1992, the
Department (within the meaning of that Act) or the
Northern Ireland Housing Executive.
(3)
Subsection (4) does not apply by virtue of subsection (1)(a) if, because
40
the proceedings in which the offender was convicted constitute the
current set of proceedings for the purposes of section 36C, the
restriction in subsection (3) of that section applies in the offender’s case.

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(4)
If this subsection applies and the offender is a person who would, apart
from this section, be entitled (whether pursuant to a single or joint
claim) to working tax credit at any time within the disqualification
period, then, despite that entitlement, working tax credit shall not be
payable for any period comprised in the disqualification period—
5
(a)
in the case of a single claim, to the offender, or
(b)
in the case of a joint claim, to the offender or the other member
of the couple.
(5)
Regulations may provide in relation to cases to which subsection (4)(b)
would otherwise apply that working tax credit shall be payable, for any
10
period comprised in the disqualification period, as if the amount
payable were reduced in such manner as may be prescribed.
(6)
For the purposes of this section, the disqualification period, in relation
to any disqualifying event, means the relevant period beginning with
such date, falling after the date of the disqualifying event, as may be
15
determined by or in accordance with regulations.
(7)
For the purposes of subsection (6) the relevant period is—
(a)
in a case falling within subsection (1)(a) where the benefit
offence, or one of them, is a relevant offence, the period of three
years,
20
(b)
in a case falling within subsection (1)(a) (but not within
paragraph (a) above)), the period of 13 weeks, or
(c)
in a case falling within subsection (1)(b) or (c), the period of 4
weeks.
(8)
The Treasury may by order amend subsection (7)(a), (b) or (c) to
25
substitute a different period for that for the time being specified there.
(9)
This section has effect subject to section 36B.
(10)
In this section and section 36B—
“benefit offence” means any of the following offences committed
on or after the day specified by order made by the Treasury—
30
(a)
an offence in connection with a claim for a disqualifying
benefit;
(b)
an offence in connection with the receipt or payment of
any amount by way of such a benefit;
(c)
an offence committed for the purpose of facilitating the
35
commission (whether or not by the same person) of a
benefit offence;
(d)
an offence consisting in an attempt or conspiracy to
commit a benefit offence;
“disqualifying benefit” has the meaning given in section 6A(1) of
40
the Social Security Fraud Act 2001;
“disqualifying event” means—
(a)
the conviction falling within subsection (1)(a);
(b)
the agreement falling within subsection (1)(b);
(c)
the caution falling within subsection (1)(c);
45
“relevant offence” has the meaning given in section 6B of the Social
Security Fraud Act 2001.