Welfare Reform Bill

House of Commons

Session 2005 - 06
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Other Bills before Parliament

Welfare Reform Bill

Welfare Reform Bill
Part 2 — Housing benefit and council tax benefit
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Duty to send inspection reports to the Secretary of State
(1)
In section 13A of the Local Government Act 1999 (c. 27) (reports of inspections
by Auditor General for Wales), after subsection (4) insert—
“(4A)
If a report relates to any extent to the administration of housing benefit
or council tax benefit and the Auditor General for Wales thinks fit to do
5
so, he shall as soon as reasonably practicable send a copy of the report
to the Secretary of State.”
(2)
In section 29 of that Act (modifications for Wales), after subsection (2) insert—
“(2A)
Subsection (1)(a) does not apply to section 13A(4A).”
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Directions by Secretary of State
10
(1)
Section 139D of the Administration Act (power to give directions) is amended
in accordance with subsections (2) to (8) below.
(2)
In subsection (1) (reports that trigger the section), for paragraph (c)
substitute—
“(c)
a copy of a report under section 102(1)(b) or (c) of the Local
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Government (Scotland) Act 1973 which to any extent relates to
the administration of benefit has been sent to a local authority
and the Secretary of State under section 102(2) of that Act;”.
(3)
In that subsection (1), after paragraph (c) insert—
“(ca)
a copy of a report which has been sent to a local authority under
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section 13A(3) of the Local Government Act 1999 and to the
Secretary of State under section 13A(4A) of that Act;”.
(4)
In subsection (2) for “invite” substitute “require”.
(5)
After subsection (2) insert—
“(2A)
A requirement under subsection (2) above may specify—
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(a)
any information or description of information to be provided;
(b)
the form and manner in which the information is to be
provided.
(2B)
The authority must respond to a requirement under subsection (2)
above before the end of such period (not less than one month after the
30
day on which the requirement is made) as the Secretary of State
specifies in the requirement.
(2C)
The Secretary of State may extend the period specified under
subsection (2B) above.”
(6)
For subsection (3) substitute—
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“(3)
After considering—
(a)
the report,
(b)
any proposals made by the authority in response to it, and
(c)
any other information he thinks is relevant,

the Secretary of State may give directions to the authority under
40
subsection (3A) or (3B) or both.
(3A)
Directions under this subsection are directions as to—

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Part 2 — Housing benefit and council tax benefit
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(a)
standards which the authority is to attain in the prevention and
detection of fraud relating to benefit or otherwise in the
administration of benefit;
(b)
the time within which the standards are to be attained.
(3B)
Directions under this subsection are directions to take such action as the
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Secretary of State thinks necessary or expedient for the purpose of
improving the authority’s exercise of its functions—
(a)
in relation to the prevention and detection of fraud relating to
benefit;
(b)
otherwise in relation to the administration of benefit.
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(3C)
A direction under subsection (3B) may specify the time within which
anything is to be done.”
(7)
In subsection (4), for “subsection (3)” substitute “subsection (3A)”.
(8)
After subsection (4) insert—
“(4A)
If the Secretary of State proposes to give a direction under this section
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he must give the authority to which the direction is to be addressed an
opportunity to make representations about the proposed direction.
(4B)
The Secretary of State may specify a period within which
representations mentioned in subsection (4A) above must be made.
(4C)
The Secretary of State may extend a period specified under subsection
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(4B) above.
(4D)
Subsections (4A) to (4C) do not apply if the Secretary of State thinks that
it is necessary for a direction to be given as a matter of urgency.
(4E)
If the Secretary of State acts under subsection (4D) he must give in
writing to the authority to which the direction is addressed his reasons
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for doing so.”
(9)
After section 139D of that Act insert—
“139DA
Directions: variation and revocation
(1)
The Secretary of State may at any time in accordance with this section
vary or revoke a direction under section 139D above.
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(2)
A direction may be varied or revoked only if the Secretary of State
thinks it is necessary to do so—
(a)
in consequence of representations made by the authority to
which the direction is addressed,
(b)
to rectify an omission or error, or
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(c)
in consequence of a material change in circumstances.
(3)
The Secretary of State must not vary a direction unless he first—
(a)
sends a copy of the proposed variation to the authority
concerned,
(b)
gives the authority his reasons for making the variation, and
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(c)
gives the authority an opportunity to make representations
about the proposed variation.

Welfare Reform Bill
Part 3 — Social security administration: general
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(4)
The Secretary of State may specify a period of not less than one month
within which representations mentioned in subsection (3)(c) above
must be made.
(5)
The Secretary of State may extend a period specified under subsection
(4) above.”
5
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Minor and consequential amendments relating to Part 2
Schedule 5 (which makes miscellaneous minor amendments and amendments
consequential on this Part) has effect.
Part 3
Social security administration: general
10
Sharing of social security information
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Social security information
(1)
In the Administration Act, after section 7A (sharing of functions as regards
certain claims and information) insert—
“7B
Use of social security information
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(1)
A relevant authority may use for a relevant purpose any social security
information which it holds.
(2)
Regulations may make provision as to the procedure to be followed by
a relevant authority for the purposes of any function it has relating to
the administration of a specified benefit if the authority holds social
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security information which—
(a)
is relevant for the purposes of anything which may or must be
done by the authority in connection with a claim for or an
award of the benefit, and
(b)
was used by another relevant authority in connection with a
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claim for or an award of a different specified benefit or was
verified by that other authority in accordance with regulations
under section 7A(2)(e) above.
(3)
A relevant purpose is any prescribed purpose which relates to a claim
which is made or which could be made for a specified benefit.
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(4)
Social security information means—
(a)
information relating to social security, child support or war
pensions;
(b)
evidence obtained in connection with a claim for or an award of
a specified benefit.
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(5)
A specified benefit is a benefit which is specified in regulations for the
purposes of this section.
(6)
Expressions used in this section and in section 7A have the same
meaning in this section as in that section.

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(7)
This section does not affect any power which exists apart from this
section to use for one purpose social security information obtained in
connection with another purpose.”
(2)
In section 7A of that Act—
(a)
in subsection (1) after paragraph (b) insert—
5
“(c)
as regards any relevant benefit, for claims for that
benefit to be made to—
(i)
a county council in England,
(ii)
a person providing services to a county council
in England, or
10
(iii)
a person authorised to exercise any function a
county council in England has under this
section.”;
(b)
in subsection (2) after paragraph (d) insert—
“(e)
the verification by a relevant authority of information or
15
evidence supplied to or obtained by the authority in
connection with a claim for or an award of a relevant
benefit.”;
(c)
in subsection (3) for “and (d)” substitute “, (d) and (e)”;
(d)
in subsection (3)(a) for “(1)(a) or (b)” substitute “(1)(a), (b) or (c)”;
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(e)
in subsection (6) for paragraph (c) substitute—
“(c)
“relevant authority” means—
(i)
a Minister of the Crown;
(ii)
a local authority;
(iii)
a county council in England;
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(iv)
a person providing services to a person
mentioned in sub-paragraphs (i) to (iii);
(v)
a person authorised to exercise any function of a
local authority relating to housing benefit or
council tax benefit;
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(vi)
a person authorised to exercise any function a
county council in England has under this
section;”.
(3)
In Part 1 of Schedule 4 to that Act (persons employed in social security
administration or adjudication), under the heading “Local authorities etc” after
35
the entry relating to a person authorised under section 139A(1) of that Act
insert—
   “A member, officer or employee of a county council in England who
exercises—
(a)
any function conferred on the county council by regulations
40
made under section 7A of this Act;
(b)
any function in connection with a purpose specified in
regulations made under section 7B of this Act.
A person authorised to exercise any such function of such a county
council or an employee of such a person.”
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Information relating to certain benefits
(1)
Information falling within subsection (3) may be supplied by the person who
holds it to a person falling within subsection (4) for purposes connected with

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Part 3 — Social security administration: general
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the application of grant paid under a relevant enactment towards expenditure
incurred by the recipient of the grant—
(a)
in providing, or contributing to the provision of, welfare services, or
(b)
in connection with such welfare services.
(2)
Information falling within subsection (3) which is held for a prescribed
5
purpose by a person falling within any of paragraphs (c) to (h) of subsection (4)
may be—
(a)
used by that person for another prescribed purpose;
(b)
provided to another such person for use in relation to the same or
another prescribed purpose.
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(3)
The information is any information which is held by a person falling within
subsection (4) relating to—
(a)
income support;
(b)
income-based jobseeker’s allowance;
(c)
income-related employment and support allowance;
15
(d)
state pension credit;
(e)
housing benefit;
(f)
welfare services.
(4)
The persons are—
(a)
the Secretary of State;
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(b)
a person providing services to the Secretary of State;
(c)
an authority administering housing benefit;
(d)
a person authorised to exercise any function of such an authority
relating to housing benefit;
(e)
a person providing to such an authority services relating to housing
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benefit;
(f)
a local authority to which any grant is or will be paid as mentioned in
subsection (1);
(g)
a person authorised to exercise any function of such an authority
relating to the grant;
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(h)
a person providing to such an authority services relating to any such
function.
(5)
Information which is supplied under subsection (1) to an authority or other
person falling within subsection (4)(f), (g) or (h) may be supplied by the
authority or person to a person who provides qualifying welfare services for
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purposes connected with the provision of those services.
(6)
A person provides qualifying welfare services if—
(a)
he provides welfare services,
(b)
a local authority contribute or will contribute to the expenditure
incurred by him in providing those services, and
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(c)
that contribution is or will be derived (in whole or in part) from any
grant which is or will be paid to the authority as mentioned in
subsection (1).
(7)
A relevant enactment is an enactment specified by order made by the Secretary
of State; and the power to make an order under this subsection is exercisable
45
by statutory instrument subject to annulment in pursuance of a resolution of
either House of Parliament.

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(8)
In subsection (2) a prescribed purpose is a purpose relating to housing benefit
or welfare services which is prescribed by regulations made by the Secretary of
State by statutory instrument subject to annulment in pursuance of a resolution
of either House of Parliament.
(9)
The power to make an order or regulations under this section includes
5
power—
(a)
to make different provision for different purposes;
(b)
to make such incidental, supplementary, consequential, transitional or
savings provision as the Secretary of State thinks necessary or
expedient.
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(10)
In this section—
“income-based jobseeker’s allowance” has the same meaning as in the
Jobseekers Act 1995 (c. 18);
“income-related employment and support allowance” means an income-
related allowance under Part 1;
15
“local authority” means—
(a)
in relation to England, a county council, a district council, a
London borough council, the Common Council of the City of
London or the Council of the Isles of Scilly;
(b)
in relation to Wales, a county council or a county borough
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council;
“welfare services” includes services which provide support, assistance,
advice or counselling to individuals with particular needs.
(11)
In the Local Government Act 2000 (c. 22), sections 94 (disclosure of
information) and 95 (unauthorised disclosure of information) are omitted.
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40
Unlawful disclosure of certain information
(1)
A person to whom subsection (2) applies is guilty of an offence if he discloses
without lawful authority any information—
(a)
which comes to him by virtue of section 39(1), (2) or (5), and
(b)
which relates to a particular person.
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(2)
This subsection applies to—
(a)
a person mentioned in section 39(4)(f) to (h);
(b)
a person who provides qualifying welfare services (within the meaning
of section 39(6));
(c)
a person who is or has been a director, member of the committee of
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management, manager, secretary or other similar officer of a person
mentioned in paragraph (a) or (b);
(d)
a person who is or has been an employee of a person mentioned in
paragraph (a) or (b).
(3)
A person guilty of an offence under this section shall be liable—
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(a)
on conviction on indictment, to imprisonment for a term not exceeding
2 years or a fine or both, or
(b)
on summary conviction, to imprisonment for a term not exceeding 12
months or a fine not exceeding the statutory maximum or both.
(4)
It is not an offence under this section—
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Part 3 — Social security administration: general
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(a)
to disclose information in the form of a summary or collection of
information so framed as not to enable information relating to any
particular person to be ascertained from it;
(b)
to disclose information which has previously been disclosed to the
public with lawful authority.
5
(5)
It is a defence for a person charged with an offence under this section to prove
that at the time of the alleged offence—
(a)
he believed that he was making the disclosure in question with lawful
authority and had no reasonable cause to believe otherwise, or
(b)
he believed that the information in question had previously been
10
disclosed to the public with lawful authority and had no reasonable
cause to believe otherwise.
(6)
A disclosure is made with lawful authority if it is so made for the purposes of
section 123 of the Administration Act.
(7)
This section does not affect that section.
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(8)
Until the commencement of section 282 of the Criminal Justice Act 2003 (c. 44)
(increase in maximum term that may be imposed on summary conviction of
offence triable either way) the reference in subsection (3)(b) to 12 months must
be taken to be a reference to six months.
Overpayment recovery
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41
Recovery of overpaid benefit: Great Britain
(1)
Section 71 of the Administration Act (overpayments) is amended as follows.
(2)
Subsection (5) (recovery of overpayments paid into account not recoverable
under regulations under subsection (4) unless determination of amount is
reversed on appeal etc. and overpayment is determined on the appeal etc. to be
25
so recoverable) ceases to have effect.
(3)
In subsection (5A) (recovery of overpayments paid in consequence of
misrepresentation etc. not recoverable under subsection (1) unless
determination of amount is reversed on appeal etc.) for “under subsection (1)
above” substitute “under subsection (1) or under regulations under subsection
30
(4)”.
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Recovery of overpaid child benefit and guardian’s allowance: Northern
Ireland
(1)
Section 69 of the Social Security Administration (Northern Ireland) Act 1992
(c. 8) (overpayments) is amended as follows.
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(2)
Subsection (5) (recovery of overpayments paid into account not recoverable
under regulations under subsection (4) unless determination of amount is
reversed on appeal etc. and overpayment is determined on the appeal etc. to be
so recoverable) ceases to have effect.
(3)
In subsection (5A) (recovery of overpayments paid in consequence of
40
misrepresentation etc. not recoverable under subsection (1) unless
determination of amount is reversed on appeal etc.) for “under subsection (1)