Welfare Reform Bill (HL Bill 114)

(3) In section 38 (appeals), in subsection (1)—

(a) the “and” immediately following paragraph (c) is repealed;

(b) after that paragraph there is inserted—

“(ca) a decision under section 36A or 36C that working tax
5credit is not payable (or is not payable for a particular
period), and”.

(4) In section 66 (parliamentary etc control of instruments)—

(a) in subsection (1)—

(i) after “no” there is inserted “order or”;

(ii) 10for “them” there is substituted “the order or regulations”;

(b) in subsection (2) before paragraph (a) there is inserted—

“(za) an order made by the Treasury under section 36A(8) or
36C(9),

(zb) regulations made under section 36A(5) or 36C(4),”;

(c) 15in subsection (3)(a) at the beginning there is inserted “an order or”.

(5) In section 67 (interpretation), at the appropriate place there is inserted—

• ““cautioned”, in relation to any person and any offence, means
  cautioned after the person concerned has admitted the offence;
  and “caution” is to be interpreted accordingly;”.

119 20Cautions

(1) In section 6B of the Social Security Fraud Act 2001 (loss of benefit in case of
conviction, penalty or caution for benefit offence)—

(a) in the heading, for “penalty or caution” there is substituted “or
penalty”;

(b) 25in subsection (1), after paragraph (a) there is inserted “or”;

(c) subsection (1)(c) (cautions) is repealed;

(d) in subsection (13), in the definition of “disqualifying event”, after
“(1)(a)” there is inserted “or”.

(2) In section 36A of the Tax Credits Act 2002 (loss of tax working tax credit in case
30of conviction, penalty or caution for benefit offence) subsection (1)(c) (cautions)
is repealed.

Administration of tax credits

120 Tax credit fraud: investigation

In section 109A of the Social Security Administration Act 1992 (authorisations
35for investigators), at the end there is inserted—

“(9) This section and sections 109B to 109C below apply as if—

(a) the Tax Credits Act 2002 were relevant social security
legislation, and

(b) accordingly, child tax credit and working tax credit were
relevant social security benefits for the purposes of the
definition of “benefit offence”.”

121 Information-sharing for prevention etc of tax credit fraud

(1) 5Section 122B of the Social Security Administration Act 1992 (supply of
government information for fraud prevention etc) is amended as follows.

(2) In subsection (2)(a), after “social security” there is inserted “or tax credits”.

(3) In subsection (3)—

(a) in paragraph (b), after “1995” there is inserted “, the Tax Credits Act
102002”,

(b) in that paragraph, the final “or” is repealed, and

(c) after paragraph (c) there is inserted “or

“(d) it is supplied under section 125 of the Welfare Reform
Act 2011.”

122 15Tax credit fraud: prosecution and penalties

In section 35 of the Tax Credits Act 2002 (offence of fraud), for subsection (2)
there is substituted—

“(2) Where a person is alleged to have committed an offence under this
section in relation to payments of a tax credit not exceeding £20,000, the
20offence is triable summarily only.

(3) A person who commits an offence under this section is liable on
summary conviction pursuant to subsection (2) to imprisonment for a
term not exceeding the applicable term, or a fine not exceeding level 5
on the standard scale, or both.

(4) 25In subsection (3) the applicable term is—

(a) for conviction in England and Wales, 51 weeks;

(b) for conviction in Scotland or Northern Ireland, 6 months.

(5) Where a person is alleged to have committed an offence under this
section in any other case, the offence is triable either on indictment or
30summarily.

(6) A person who commits an offence under this section is liable—

(a) on summary conviction pursuant to subsection (5), to
imprisonment for a term not exceeding the applicable term, or
a fine not exceeding the statutory maximum, or both;

(b) 35on conviction on indictment pursuant to subsection (5) to
imprisonment for a term not exceeding 7 years, or a fine, or
both.

(7) In subsection (6)(a) the applicable term is—

(a) for conviction in England and Wales or Scotland, 12 months;

(b) 40for conviction in Northern Ireland, 6 months.

(8) In relation to an offence under this section committed in England and
Wales before the commencement of section 281(5) of the Criminal

Justice Act 2003, the reference in subsection (4)(a) to 51 weeks is to be
read as a reference to 6 months.

(9) In relation to an offence under this section committed in England and
Wales before the commencement of section 154(1) of the Criminal
5Justice Act 2003, the reference in subsection (7)(a) to 12 months is to be
read as a reference to 6 months.

(10) In England and Wales—

(a) subsection (1) of section 116 of the Social Security
Administration Act 1992 (legal proceedings) applies in relation
10to proceedings for an offence under this section;

(b) subsections (2)(a) and (3)(a) of that section apply in relation to
proceedings for an offence under this section which is triable
summarily only pursuant to subsection (2) above.

(11) In Scotland, subsection (7)(a) and (b) of section 116 of the Social Security
15Administration Act 1992 (legal proceedings) apply in relation to
proceedings for an offence under this section which is triable
summarily only pursuant to subsection (2) above.

(12) In Northern Ireland—

(a) subsection (1) of section 110 of the Social Security
20Administration (Northern Ireland) Act 1992 (legal proceedings)
applies in relation to proceedings for an offence under this
section;

(b) subsections (2)(a) and (3)(a) of that section apply in relation to
proceedings for an offence under this section which is triable
25summarily only pursuant to subsection (2) above.”

123 Unauthorised disclosure of information relating to tax credit offences

In Schedule 4 to the Social Security Administration Act 1992 (persons
employed in social security administration or adjudication), in paragraph 1 of
Part 2, after “security,” there is inserted “to the investigation or prosecution of
30offences relating to tax credits,”.

124 Tax credits: transfer of functions etc

(1) Her Majesty may by Order in Council—

(a) transfer to the Secretary of State any tax credit function of the Treasury
or the Commissioners;

(b) 35direct that any tax credit function of the Treasury or the Commissioners
is to be exercisable concurrently with the Secretary of State or is to cease
to be so exercisable.

(2) Provision within subsection (1) may be limited so as to apply only in relation
to cases within a specified description.

(3) 40Her Majesty may by Order in Council, as Her Majesty considers appropriate—

(a) make provision in connection with a transfer or direction under
subsection (1);

(b) make other provision within one or more of the following sub-
paragraphs—

(i) provision applying (with or without modifications) in relation
to tax credits any provision of primary or secondary legislation
relating to social security;

(ii) provision combining or linking any aspect of the payment and
5management of tax credits with any aspect of the
administration of social security;

(iii) provision about the use or supply of information held for
purposes connected with tax credits, including (in particular)
provision authorising or requiring its use or supply for other
10purposes;

(iv) in relation to information held for purposes not connected with
tax credits, provision authorising or requiring its use or supply
for purposes connected with tax credits.

(4) An Order may make provision under subsection (3)(b) only if—

(a) 15the Order also makes provision under subsection (1), or

(b) a previous Order has made provision under subsection (1).

(5) Provision within subsection (3)—

(a) may confer functions on, or remove functions from, the Secretary of
State, the Treasury, the Commissioners, a Northern Ireland department
20or any other person;

(b) may (in particular) authorise the Secretary of State and the
Commissioners to enter into arrangements from time to time under
which the Commissioners are to provide services to the Secretary of
State in connection with tax credits.

(6) 25Provision within subsection (3)—

(a) may expand the scope of the conduct which constitutes an offence
under any primary or secondary legislation, but may not increase the
scope of any punishment for which a person may be liable on
conviction for the offence;

(b) 30may expand the scope of the conduct in respect of which a civil penalty
may be imposed under any primary or secondary legislation, but may
not increase the maximum amount of the penalty.

(7) An Order under this section may include such consequential, supplementary,
incidental or transitional provision as Her Majesty considers appropriate
35including (for example)—

(a) provision for transferring or apportioning property, rights or liabilities
(whether or not they would otherwise be capable of being transferred
or apportioned);

(b) provision for substituting any person for any other person in any
40instrument or other document or in any legal proceedings;

(c) provision with respect to the application in relation to the Crown of
provision made by the Order.

(8) A certificate issued by the Secretary of State that any property, rights or
liabilities set out in the certificate have been transferred or apportioned by an
45Order under this section as set out in the certificate is conclusive evidence of
the matters so set out.

(9) An Order under this section may amend, repeal or revoke any primary or
secondary legislation.

(10) A statutory instrument containing an Order under this section is subject to
annulment in pursuance of a resolution of either House of Parliament.

(11) In this section references to tax credits are to child tax credit or working tax
credit or both.

(12) 5In this section references to primary or secondary legislation are to such
legislation whenever passed or made.

(13) In this section—

• “the Commissioners” means the Commissioners for Her Majesty’s
  Revenue and Customs;

• 10“primary legislation” means an Act (including this Act) or Northern
  Ireland legislation;

• “secondary legislation” means an instrument made under primary
  legislation (including an Order under this section);

• “tax credit functions” means functions so far as relating to tax credits
  15conferred by or under any primary or secondary legislation.

(14) In section 5A(3) of the Ministers of the Crown Act 1975 for “section 5(1)” there
is substituted “section 5(1)(a) or (b)”.

Information-sharing: Secretary of State and HMRC

125 Information-sharing between Secretary of State and HMRC

(1) 20This subsection applies to information which is held for the purposes of any
HMRC functions—

(a) by the Commissioners for Her Majesty’s Revenue and Customs, or

(b) by a person providing services to them.

(2) Information to which subsection (1) applies may be supplied—

(a) 25to the Secretary of State, or to a person providing services to the
Secretary of State, or

(b) to a Northern Ireland Department, or to a person providing services to
a Northern Ireland Department,

for use for the purposes of departmental functions.

(3) 30This subsection applies to information which is held for the purposes of any
departmental functions—

(a) by the Secretary of State, or by a person providing services to the
Secretary of State, or

(b) by a Northern Ireland Department, or by a person providing services to
35a Northern Ireland Department.

(4) Information to which subsection (3) applies may be supplied—

(a) to the Commissioners for Her Majesty’s Revenue and Customs, or

(b) to a person providing services to them,

for use for the purposes of HMRC functions.

(5) 40Information supplied under this section must not be supplied by the recipient
of the information to any other person or body without—

(a) the authority of the Commissioners for Her Majesty’s Revenue and
Customs, in the case of information supplied under subsection (2);

(b) the authority of the Secretary of State, in the case of information held as
mentioned in subsection (3)(a) and supplied under subsection (4);

(c) the authority of the relevant Northern Ireland Department, in the case
of information held as mentioned in subsection (3)(b) and supplied
5under subsection (4).

(6) Where information supplied under this section has been used for the purposes
for which it was supplied, it is lawful for it to be used for any purposes for
which information held for those purposes could be used.

(7) In this section—

• 10“departmental functions” means functions relating to—

  (a)

  social security,

  (b)

  employment or training, or

  (c)

  the investigation or prosecution of offences relating to tax
  credits;

• 15“HMRC function” means any function—

  (a)

  for which the Commissioners for Her Majesty’s Revenue and
  Customs are responsible by virtue of section 5 of the
  Commissioners for Revenue and Customs Act 2005, or

  (b)

  which relates to a matter listed in Schedule 1 to that Act;

• 20“Northern Ireland Department” means any of the following—

  (a)

  the Department for Social Development;

  (b)

  the Department of Finance and Personnel;

  (c)

  the Department for Employment and Learning.

(8) For the purposes of this section any reference to functions relating to social
25security includes a reference to functions relating to—

(a) statutory payments as defined in section 4C(11) of the Social Security
Contributions and Benefits Act 1992;

(b) maternity allowance under section 35 of that Act;

(c) statutory payments as defined in section 4C(11) of the Social Security
30Contributions and Benefits (Northern Ireland) Act 1992;

(d) maternity allowance under section 35 of that Act.

(9) This section does not limit the circumstances in which information may be
supplied apart from this section.

(10) In section 3 of the Social Security Act 1998 (use of information), in subsection
35(1A) after paragraph (d) there is inserted—

“(e) the investigation or prosecution of offences relating to tax
credits.”

Information-sharing: Secretary of State and DPP

126 Information-sharing between Secretary of State and DPP

(1) 40The Secretary of State may supply social security information to a person
specified in subsection (2) for use for a purpose specified in subsection (3).

(2) The persons referred to in subsection (1) are—

(a) the Director of Public Prosecutions;

(b) a person appointed under section 5 of the Prosecution of Offences Act
1985 (conduct of prosecutions on behalf of Crown Prosecution Service).

(3) The purposes referred to in subsection (1) are—

(a) the institution or conduct of criminal proceedings which relate wholly
5or partly to social security matters;

(b) the giving of advice to any person on any matter relating to criminal
proceedings, or criminal offences, which relate wholly or partly to
social security matters;

(c) the exercise in relation to social security matters of functions assigned
10to the Director of Public Prosecutions under section 3(2)(g) of the
Prosecution of Offences Act 1985;

(d) the exercise of functions of the Director of Public Prosecutions under
Part 2, 5 or 8 of the Proceeds of Crime Act 2002.

(4) The reference in subsection (1) to the Secretary of State includes a person
15providing services to the Secretary of State.

(5) This section does not limit the circumstances in which information may be
supplied apart from this section.

(6) In this section—

• “social security information” means information held for the purposes of
  20any of the Secretary of State’s functions relating to social security
  matters;

• “social security matters” means—

  (a)

  social security (including the payments and allowances referred
  to in section 125(8)),

  (b)

  25tax credits, and

  (c)

  schemes and arrangements under section 2 of the Employment
  and Training Act 1973.

127 Unlawful disclosure of information supplied under section 126

(1) A person to whom information is supplied under section 126, or an employee
30or former employee of such a person, may not disclose the information if it
relates to a particular person.

(2) Subsection (1) does not apply to—

(a) a disclosure of a summary or collection of information so framed as not
to enable information relating to any particular person to be
35ascertained from it;

(b) a disclosure made for the purposes of a function of the Director of
Public Prosecutions, where the disclosure does not contravene any
restriction imposed by the Director;

(c) a disclosure made to the Secretary of State, or a person providing
40services to the Secretary of State, for the purposes of the exercise of
functions relating to social security matters (within the meaning of
section 126);

(d) a disclosure made for the purposes of a criminal investigation or
criminal proceedings (whether or not in the United Kingdom);

(e) 45a disclosure made for the purposes of—

(i) the exercise of any functions of the prosecutor under Parts 2, 3
and 4 of the Proceeds of Crime Act 2002;

(ii) the exercise of any functions of the Serious Organised Crime
Agency under that Act;

(iii) the exercise of any functions of the Director of the Serious Fraud
Office, the Director of Public Prosecutions for Northern Ireland
5or the Scottish Ministers under, or in relation to, Part 5 or 8 of
that Act;

(iv) investigations or proceedings outside the United Kingdom
which have led or may lead to the making of an external order
within the meaning of section 447 of that Act;

(f) 10a disclosure made to a person exercising public functions of law
enforcement for the purposes of the exercise of those functions in civil
proceedings;

(g) a disclosure which in the opinion of the Director of Public Prosecutions
is desirable for the purpose of safeguarding national security;

(h) 15a disclosure made in pursuance of an order of a court;

(i) a disclosure made with the consent of each person to whom the
information relates.

(3) Subsection (1) does not apply in relation to information relating to schemes and
arrangements under section 2 of the Employment and Training Act 1973.

(4) 20Subsection (1) is subject to any other Act or to an instrument made under an
Act.

(5) A person who contravenes subsection (1) commits an offence.

(6) It is a defence for a person charged with an offence under this section of
disclosing information to prove that he or she reasonably believed—

(a) 25that the disclosure was lawful, or

(b) that the information had already and lawfully been made available to
the public.

(7) A person guilty of an offence under this section is liable—

(a) on conviction on indictment, to imprisonment for a term not exceeding
30two years or a fine or both, or

(b) on summary conviction, to imprisonment for a term not exceeding
twelve months or a fine not exceeding the statutory maximum or both.

(8) A prosecution for an offence under this section may be instituted only with the
consent of the Director of Public Prosecutions.

(9) 35In relation to an offence under this section committed before the
commencement of section 154(1) of the Criminal Justice Act 2003 (increase in
maximum term that may be imposed on summary conviction of offence triable
either way), the reference in subsection (7)(b) to twelve months shall have
effect as if it were a reference to six months.

40Information-sharing involving local authorities etc

128 Information-sharing in relation to provision of overnight care etc

(1) This section applies where a local authority holds information falling within
subsection (2) in relation to a person who is receiving or is likely to receive a
relevant service.

(2) The information referred to in subsection (1) is—

(a) information as to the fact of the provision or likely provision of the
service;

(b) information about when the provision of the service begins or ends or
5is likely to do so;

(c) other prescribed information relating to the service provided and how
it is funded (including the extent to which it is funded by the recipient).

(3) In this section “relevant service” means—

(a) a service consisting of overnight care in the individual’s own home
10provided by or on behalf of a local authority;

(b) a residential care service provided by or on behalf of a local authority;

(c) a service consisting of overnight hospital accommodation.

(4) In subsection (3)(c) “hospital accommodation” means—

(a) in relation to England, hospital accommodation within the meaning of
15the National Health Service Act 2006 which is provided by a Primary
Care Trust, an NHS trust or an NHS foundation trust;

(b) in relation to Wales, hospital accommodation within the meaning of the
National Health Service (Wales) Act 2006 which is provided by a Local
Health Board or an NHS trust;

(c) 20in relation to Scotland, hospital accommodation within the meaning of
the National Health Service (Scotland) Act 1978 which is provided by a
Health Board or Special Health Board but excluding accommodation in
an institution for providing dental treatment maintained in connection
with a dental school.

(5) 25The local authority may—

(a) itself use the information for purposes relating to the payment of a
relevant benefit to the individual, or

(b) supply the information to a person specified in subsection (6) for those
purposes.

(6) 30The persons referred to in subsection (5) are—

(a) the Secretary of State;

(b) a person providing services to the Secretary of State;

(c) a local authority;

(d) a person authorised to exercise any function of a local authority relating
35to a relevant benefit;

(e) a person providing services relating to a relevant benefit to a local
authority.

(7) In this section “relevant benefit” means—

(a) universal credit;

(b) 40housing benefit;

(c) council tax benefit;

(d) any prescribed benefit.

(8) Regulations under subsection (7) may not prescribe a benefit provision for
which is within the legislative competence of the Scottish Parliament.

129 Information-sharing in relation to welfare services etc

(1) The Secretary of State, or a person providing services to the Secretary of State,
may supply relevant information to a qualifying person for prescribed
purposes relating to welfare services.

(2) 5A qualifying person who holds relevant information for a prescribed purpose
relating to welfare services may supply that information to—

(a) the Secretary of State, or

(b) a person providing services to the Secretary of State,

for a prescribed purpose relating to a relevant social security benefit.

(3) 10A qualifying person who holds relevant information for a prescribed purpose
relating to welfare services or housing benefit may—

(a) use the information for another prescribed purpose relating to welfare
services or housing benefit;

(b) supply it to another qualifying person for use in relation to the same or
15another prescribed purpose relating to welfare services or housing
benefit.

(4) Relevant information supplied under subsection (1) or (3) to a qualifying
person may be supplied by that person to a person who provides qualifying
welfare services for purposes connected with the provision of those services.

(5) 20In subsection (4) services are qualifying welfare services if—

(a) a local authority, or

(b) a person who is a qualifying person by virtue of subsection (11) (g),

contributes or will contribute to the expenditure incurred in their provision.

(6) The Secretary of State may not exercise the power in subsection (3) to prescribe
25purposes for which information may be supplied by a qualifying person so as
to prescribe an excepted purpose in relation to excepted information held by a
Welsh body.

(7) In subsection (6)—

(a) excepted information is information held by the Welsh body that—

(i) 30is not supplied by, or derived from information supplied to
another person by, the Secretary of State or a person providing
services to the Secretary of State or a person engaged in the
administration of housing benefit, and

(ii) is held only for an excepted purpose;

(b) 35an excepted purpose is a purpose relating to a matter provision for
which—

(i) is within the legislative competence of the National Assembly
for Wales, or

(ii) is made by the Welsh Ministers, the First Minister for Wales or
40the Counsel General to the Welsh Assembly Government.

(8) The Secretary of State may not exercise the power in subsection (3) to prescribe
purposes for which information may be supplied by a qualifying person so as
to prescribe an excepted purpose in relation to excepted information held by a
Scottish body.

(9) 45In subsection (8)—

(a) excepted information is information held by the Scottish body that—