Social Security Bill

Social Security Bill - continued	House of Commons
SCHEDULE 4C, DECISIONS AND APPEALS: DEPARTURE DIRECTIONS AND REDUCED BENEFIT DIRECTIONS - continued
Social Security Contributions and Benefits Act 1992 (c.4) - continued

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48. After subsection (2) of section 6 of that Act (liability for Class 1 contributions) there shall be inserted the following subsection-

"(2A) No primary or secondary Class 1 contribution shall be payable in respect of earnings if a Class 1B contribution is payable in respect of them."

49. After subsection (8) of section 10 of that Act (Class 1A contributions) there shall be inserted the following subsection-

"(8A) No Class 1A contribution shall be payable in respect of the making available of a car, or the provision of fuel, if a Class 1B contribution is payable in respect of it."

50. In subsection (2) of section 54 of that Act (Category A and Category B retirement pensions: supplemental provisions), for the words "Part II of the Administration Act" there shall be substituted the words "Chapter II of Part I of the Social Security Act 1998".

51. In subsection (5)(c) of section 95 of that Act (relevant employments), after the words "the Administration Act" there shall be inserted the words ", or Chapter II of Part I of the Social Security Act 1998,".

52. In subsection (1)(b) of section 97 of that Act (accidents in the course of illegal employments), for the words "section 44 of the Administration Act" there shall be substituted the words "section 29 of the Social Security Act 1998".

53. In subsection (2) of section 109 of that Act (general provisions relating to benefit under section 108)-

(a) in paragraph (a), for the words "or the Administration Act" there shall be substituted the words ", the Administration Act or Chapter II of Part I of the Social Security Act 1998";

(b) in paragraph (b), for the words "and that Act" there shall be substituted the words ", that Act and that Chapter";

(c) for the words "the Administration Act", in the second place where they occur, there shall be substituted the words "that Act and that Chapter"; and

(d) after the words "section 1" there shall be inserted the words "of that Act".

54. In subsection (3) of section 113 of that Act (general provisions as to disqualification and suspension), for the words "or the Administration Act" there shall be substituted the words ", the Administration Act or Chapter II of Part I of the Social Security Act 1998".

55. In subsection (2) of section 116 of that Act (Her Majesty's forces), for the words "provision of Part II of the Administration Act which replaces" there shall be substituted the words "provisions of Chapter II of Part I of the Social Security Act 1998 which correspond to".

56. In subsection (1) of section 117 of that Act (mariners, airmen etc.), for the words "provision of Part II of the Administration Act which replaces" there shall be substituted the words "provisions of Chapter II of Part I of the Social Security Act 1998 which correspond to".

57. In section 119 of that Act (persons outside Great Britain), for the words "provision of Part II of the Administration Act which replaces" there shall be substituted the words "provisions of Chapter II of Part I of the Social Security Act 1998 which correspond to".

58. In subsection (1) of section 120 of that Act (employment at sea: continental shelf operations), for the words "provision of Part II of the Administration Act which replaces" there shall be substituted the words "provisions of Chapter II of Part I of the Social Security Act 1998 which correspond to".

59. In subsection (1) of section 122 of that Act (interpretation of Parts I to VI and supplementary provisions)-

(a) in the definition of "entitled", for the words "and 68 of the Administration Act" there shall be substituted the words "of the Administration Act and section 27 of the Social Security Act 1998"; and

(b) after the definition of "Old Cases payments" there shall be inserted the following definition-

""PAYE settlement agreement" has the same meaning as in section 206A of the Income and Corporation Taxes Act 1988;".

60. - (1) For subsection (1) of section 139 of that Act (awards by social fund officers) there shall be substituted the following subsection-

"(1) Whether a payment mentioned in section 138(1)(b) above is to be awarded, and how much it is to be, shall be determined by an appropriate officer, that is to say, an officer of the Secretary of State who, acting under his authority, is exercising functions of the Secretary of State in relation to payments so mentioned."

(2) In subsection (2) of that section, for the words "A social fund officer" there shall be substituted the words "An appropriate officer".

(3) Subsection (3) of that section shall cease to have effect.

(4) In subsection (4) of that section, for the words "that is to be repayable" there shall be substituted the words "of a crisis loan or a budgeting loan".

(5) In subsection (5) of that section, for the words "the social fund officer" there shall be substituted the words "the appropriate officer".

61. - (1) In subsection (1) of section 140 of that Act (principles of determination), for the words "a social fund officer" there shall be substituted the words "an appropriate officer".

(2) In subsection (2) of that section, for the words "A social fund officer" there shall be substituted the words "An appropriate officer".

(3) In subsection (3) of that section, for the words "a social fund officer or group of social fund officers" there shall be substituted the words "an appropriate officer or group of appropriate officers".

(4) In subsection (4) of that section-

(a) for the words "a social fund officer", in each place where they occur, there shall be substituted the words "an appropriate officer"; and

(b) for the words "social fund officers" there shall be substituted the words "appropriate officers".

(5) In subsection (5) of that section-

(a) for the words "a social fund officer" there shall be substituted the words "an appropriate officer"; and

(b) for the words "the social fund officer nominated for his area under section 64 of the Administration Act" there shall be substituted the words "the appropriate officer nominated for his area under section 36 of the Social Security Act 1998".

62. In subsection (2) of section 171E of that Act (incapacity for work: disqualification etc.), for the words "Part II of the Administration Act" there shall be substituted the words "Chapter II of Part I of the Social Security Act 1998".

63. - (1) In the heading to Schedule 1 to that Act (supplementary provisions relating to contributions of Classes 1, 1A, 2 and 3), after "1A," there shall be inserted "1B,".

(2) For paragraph 5 of that Schedule there shall be substituted the following paragraph-

	"Class 1A contributions
	5. Regulations may-
	(a) make provision for calculating the amount of Class 1A contributions so as to avoid fractional amounts;
	(b) modify section 10 above in relation to cases where a car is made available by reason of two or more employed earner's employments under different employers."

(3) After that paragraph there shall be inserted the following paragraph-

	"Class 1B contributions
	5A. Regulations may make provision for calculating the amount of Class 1B contributions so as to avoid fractional amounts."

(4) In sub-paragraph (1) of paragraph 6 of that Schedule, for paragraph (a) there shall be substituted the following paragraph-

"(a) provide for Class 1, Class 1A, Class 1B or Class 2 contributions to be paid, accounted for and recovered in a similar manner to income tax in relation to which regulations under section 203 of the Income and Corporation Taxes Act 1988 (PAYE) have effect;".

(5) In sub-paragraph (2) of that paragraph-

(a) for the words "or Class 1A", in each place where they occur, there shall be substituted the words ", Class 1A or Class 1B"; and

(b) in paragraph (b), the words "(being not less than one year after the end of the tax year in respect of which the sums are due)" shall cease to have effect.

(6) For sub-paragraph (4) of that paragraph there shall be substituted the following paragraph-

	"(4) Where-
	(a) a decision relating to contributions falls to be made under section 9, 10, 11, 13, 15 or 16 of the Social Security Act 1998; and
	(b) the decision will affect a person's liability for, or the amount of, any interest due in respect of those contributions,
	regulations under this paragraph shall not require any such interest to be paid until the decision has been made."

(7) After that sub-paragraph there shall be inserted the following sub-paragraph-

"(4A) Regulations under this paragraph shall not require the payment of interest on a sum due in respect of a Class 1B contribution if a relevant tax appeal has been brought but not finally determined; and "a relevant tax appeal" means an appeal against a determination as to the amount of income tax in respect of which the person liable to pay the Class 1B contribution is accountable in accordance with the relevant PAYE settlement agreement."

(8) In sub-paragraph (11)(a) of paragraph 7 of that Schedule, for the words "and Class 1A" there shall be substituted the words ", Class 1A and Class 1B".

(9) For sub-paragraph (12) of that paragraph there shall be substituted the following sub-paragraph-

	"(12) A penalty under section 98A of that Act as it applies by virtue of this paragraph shall not be imposed where-
	(a) a decision relating to contributions falls to be made under section 9, 10, 11, 13, 15 or 16 of the Social Security Act 1998, and has not yet been made; and
	(b) the decision will affect a person's liability for the penalty, or the amount of it."

(10) In paragraph (b) of sub-paragraph (1) of paragraph 8 of that Schedule, after the words "Class 1A" there shall be inserted the words "or Class 1B".

(11) After paragraph (i) of that sub-paragraph there shall be inserted the following paragraph-

"(ia) for the repayment, in prescribed cases, of the whole or a prescribed part of a Class 1B contribution;".

(12) In paragraph (l) of that sub-paragraph-

(a) in sub-paragraph (i), after the words "Class 1A contributions" there shall be inserted the words "or a Class 1B contribution";

(b) in sub-paragraph (ii), after the words "Class 1 contributions" there shall be inserted the words ", a Class 1B contribution";

"(iia) the whole or part of any payment of a Class 1B contribution to be treated as a payment of secondary Class 1 contributions, Class 1A contributions or Class 2 contributions;"; and

(d) in sub-paragraph (iii), for the words "or Class 1A contributions" there shall be substituted the words ", Class 1A contributions or a Class 1B contribution".

Social Security Administration Act 1992 (c.5)

64. In subsection (2) of section 3 of the Administration Act (late claims for widowhood benefit where death is difficult to establish), for paragraph (a) there shall be substituted the following paragraph-

"(a) in any case falling within paragraph (b)(i) of subsection (1) above, where it has been decided under section 9 of the Social Security Act 1998 that the husband has died or is presumed to have died; or".

65. In section 5 of that Act (regulations about claims for and payments of benefit), paragraphs (n) and (o) of subsection (1) and subsection (4) shall cease to have effect.

66. In subsection (1) of section 6 of that Act (regulations about council tax benefit administration), paragraphs (n) and (o) shall cease to have effect.

67. For subsection (6) of section 66 of that Act (reviews) there shall be substituted the following subsection-

	"(6) In determining a question on a review a social fund officer or social fund inspector shall, subject to subsection (7) below, have regard to whichever of the following are applicable, namely-
	(a) all the circumstances of the case and, in particular, the criteria specified in paragraphs (a) to (e) of subsection (1) of section 140 of the Contributions and Benefits Act;
	(b) the criteria mentioned in paragraphs (a) and (b) of subsection (1A) of that section; and
	(c) the criterion specified in directions issued by the Secretary of State under that subsection and the criteria mentioned in paragraph (b) of that subsection."

68. - (1) In subsection (5) of section 71 of that Act (overpayments: general)-

(a) in paragraph (a), for the words "revised on a review" there shall be substituted the words "has been revised under section 10 or superseded under section 11 of the Social Security Act 1998";

(b) in paragraph (b), for the word "review" there shall be substituted the words "under that section".

(2) In subsection (5A) of that section, for the words "revised on a review" there shall be substituted the words "has been revised under section 10 or superseded under section 11 of the Social Security Act 1998".

69. In subsection (1) of section 71A of that Act (recovery of jobseeker's allowance: severe hardship cases)-

(a) for the words "an adjudication officer", in both places where they occur, there shall be substituted the words "the Secretary of State"; and

(b) for the words "the Secretary of State" there shall be substituted the word "he".

70. In section 116 of that Act (legal proceedings), subsection (6) shall cease to have effect.

71. For section 117 of that Act there shall be substituted the following section-

"Issues arising in proceedings.	117. - (1) This section applies to proceedings before a court-
	(a) for an offence under this Act or the Jobseekers Act 1995; or
	(b) involving any question as to the payment of contributions (other than a Class 4 contribution recoverable by the Inland Revenue); or
	(c) for the recovery of any sums due to the Secretary of State or the National Insurance Fund.
	(2) A decision of the Secretary of State which-
	(a) falls within Part II of Schedule 3 to the Social Security Act 1998 ("the 1998 Act"); and
	(b) relates to or affects an issue arising in the proceedings,
	shall be conclusive for the purposes of the proceedings.
	(3) If-
	(a) any such decision is necessary for the determination of the proceedings; and
	(b) the decision of the Secretary of State has not been obtained or an application with respect to the decision has been made under section 10 or 11 of the 1998 Act,
	the decision shall be referred to the Secretary of State to be made in accordance (subject to any necessary modifications) with Chapter II of Part I of that Act.
	(4) Subsection (2) above does not apply where, in relation to the decision-
	(a) an appeal has been brought but not determined;
	(b) an application for leave to appeal has been made but not determined;
	(c) an appeal has not been brought (or, as the case may be, an application for leave to appeal has not been made) but the time for doing so has not yet expired; or
	(d) an application has been made under section 10 or 11 of the 1998 Act.
	(5) In a case falling within subsection (4) above the court shall adjourn the proceedings until such time as the final decision is known; and that decision shall be conclusive for the purposes of the proceedings."

72. Subsection (2) of section 119 of that Act (recovery of unpaid contributions on prosecution) shall cease to have effect.

73. - (1) In subsection (1) of section 120 of that Act (proof of previous offences), the words "or (2)(a)" shall cease to have effect.

(2) In subsection (3) of that section-

(a) after the words "Class 1A" there shall be inserted the words "or Class 1B"; and

(b) for the words "2 years" there shall be substituted the words "6 years".

(3) In subsection (4) of that section-

(a) after the words "Class 1" there shall be inserted the words "or Class 1B"; and

(b) for the words "2 years" there shall be substituted the words "6 years".

(4) After that subsection there shall be inserted the following subsection-

"(4A) If the offence is one of failure to pay a Class 1B contribution, evidence may be given of failure on his part to pay such contributions, or any Class 1 or Class 1A contributions or contributions equivalent premiums, on the date of the offence, or during the 6 years preceding that date."

(5) In subsection (5) of that section-

(a) paragraph (b) and the word "or" immediately preceding that paragraph shall cease to have effect; and

(b) for the words "2 years" there shall be substituted the words "6 years".

(6) In subsection (6) of that section, after the word "(4)," there shall be inserted the word "(4A)".

74. In subsections (1) and (2) of section 121 of that Act (unpaid contributions: supplementary), the words "or (2)(a)" shall cease to have effect.

75. In subsection (6A) of section 123 of that Act (unauthorised disclosure of information relating to particular persons), for the words "section 54 above" there shall be substituted the words "section 20 of the Social Security Act 1998".

76. In subsection (1) of section 125 of that Act (regulations as to notification of deaths), after the words "the Social Security (Recovery of Benefits) Act 1997" there shall be inserted the words ", the Social Security Act 1998".

77. In section 144 of that Act (supplementary provisions about orders under section 143), after "143", in each place where it occurs, including the sidenote, there shall be inserted the words "or 143A".

78. In subsection (2) of section 159 of that Act (effect of alteration in the component rates of income support), for the words "an adjudication officer" there shall be substituted the words "the Secretary of State".

79. In subsection (3) of section 159A of that Act (effect of alteration of rates of a jobseeker's allowance), for the words "an adjudication officer" there shall be substituted the words "the Secretary of State".

80. In subsection (2) of section 160 of that Act (implementation of increases in income support due to attainment of particular ages), for the words "an adjudication officer" there shall be substituted the words "the Secretary of State".

81. In subsection (2) of section 160A of that Act (implementation of increases in income-based jobseeker's allowance due to attainment of particular ages), for the words "an adjudication officer" there shall be substituted the words "the Secretary of State".

82. - (1) After subsection (2) of section 162 of that Act (destination of contributions) there shall be inserted the following subsection-

"(2A) References in subsections (1) and (2) above to contributions include references to payments on account of contributions made in accordance with regulations under section 3(5) of the Contributions and Benefits Act (payments on account of directors' contributions)."

(2) After subsection (4) of that section there shall be inserted the following subsection-

"(4A) The sums recovered by the Secretary of State under regulations made under paragraph 7A, 7B or 7C of Schedule 1 to the Contributions and Benefits Act in respect of interest or penalties shall be paid into the National Insurance Fund."

(3) In subsection (8)(b) of that section, after the words "paragraph (c)" there shall be inserted the words "or (ca)".

83. - (1) In subsection (4) of section 163 of that Act (general financial arrangements), after the words "Class 1A" there shall be inserted the words "or 1B".

(2) In subsection (5) of that section, after the words "paragraph 6" there shall be inserted the words "or 7B".

84. In subsection (5)(a) of section 164 of that Act (destination of payments etc.), for the words "section 62(2)(b) above" there shall be substituted the words "section 32(2) of the Social Security Act 1998".

85. - (1) In subsection (1) of section 166 of that Act (financial review and report), in paragraph (d), for the words "so far as it relates" there shall be substituted the words "and Chapter II of Part I of the Social Security Act 1998 so far as they relate".

(2) In subsection (2) of that section, in paragraph (c), for the words "so far as it relates" there shall be substituted the words "and Chapter II of Part I of the Social Security Act 1998 so far as they relate".

Prepared 27 November 1997