Welfare Reform Bill

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Welfare Reform Bill

Welfare Reform Bill
Part 3 — Social security administration: general
36

(b)
a person who provides qualifying welfare services (within the meaning
of section 41(6));
(c)
a person who is or has been a director, member of the committee of
management, manager, secretary or other similar officer of a person
mentioned in paragraph (a) or (b);
5
(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—
(a)
on conviction on indictment, to imprisonment for a term not exceeding
2 years or a fine or both, or
10
(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—
(a)
to disclose information in the form of a summary or collection of
information so framed as not to enable information relating to any
15
particular person to be ascertained from it;
(b)
to disclose information which has previously been disclosed to the
public with lawful authority.
(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—
20
(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
disclosed to the public with lawful authority and had no reasonable
cause to believe otherwise.
25
(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.
(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
30
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
43
Recovery of overpaid benefit: Great Britain
(1)
Section 71 of the Administration Act (overpayments) is amended as follows.
35
(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)
above” substitute “under subsection (1) or under regulations under subsection
(4)”.

Welfare Reform Bill
Part 3 — Social security administration: general
37

44
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.
(2)
Subsection (5) (recovery of overpayments paid into account not recoverable
5
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
misrepresentation etc. not recoverable under subsection (1) unless
10
determination of amount is reversed on appeal etc.) for “under subsection (1)
above” substitute “under subsection (1) or under regulations under subsection
(4)”.
(4)
The amendments made by this section have effect only in relation to child
benefit and guardian’s allowance.
15
Benefit fraud
45
Local authority powers to investigate benefit fraud
(1)
Section 110A of the Administration Act (authorisation of investigations by
authorities administering housing benefit or council tax benefit) is amended as
follows.
20
(2)
In subsection (1) for “any one or more of the purposes mentioned in subsection
(2) below” substitute “a relevant purpose”.
(3)
After subsection (1) insert—
“(1A)
Each of the following is a relevant purpose—
(a)
a purpose mentioned in subsection (2) below;
25
(b)
a purpose mentioned in section 109A(2)(a), (c) or (d).
(1B)
If the Secretary of State prescribes conditions for the purposes of this
section, an authority must not proceed under this section for a purpose
mentioned in section 109A(2)(a), (c) or (d) unless any such condition is
satisfied.”
30
(4)
An authorisation made for a purpose mentioned in section 109A(2)(a), (c) or
(d)—
(a)
is subject to such restrictions as may be prescribed;
(b)
is not valid in such circumstances as may be prescribed.
(5)
In subsection (2) for “Those purposes” substitute “The purposes in this
35
subsection”.
(6)
In subsection (8), after paragraph (c) insert—

“but paragraphs (a) and (b) above do not apply in any case where the
relevant purpose is as mentioned in subsection (1A)(b) above.”

Welfare Reform Bill
Part 3 — Social security administration: general
38

46
Local authority powers to prosecute benefit fraud
After section 116 of the Administration Act (legal proceedings) insert—
“116A
Local authority powers to prosecute benefit fraud
(1)
This section applies if an authority administering housing benefit or
council tax benefit has power to bring proceedings for a benefit offence
5
relating to that benefit.
(2)
The authority may bring proceedings for a benefit offence relating to
any other relevant social security benefit unless—
(a)
the proceedings relate to any benefit or circumstances or any
description of benefit or circumstances which the Secretary of
10
State prescribes for the purposes of this paragraph, or
(b)
the Secretary of State has directed that the authority must not
bring the proceedings,

and a direction under paragraph (b) may relate to a particular authority
or description of authority or to particular proceedings or any
15
description of proceedings.
(3)
If the Secretary of State prescribes conditions for the purposes of this
section, an authority must not bring proceedings under this section
unless any such condition is satisfied.
(4)
The Secretary of State may continue proceedings which have been
20
brought by an authority under this section as if the proceedings had
been brought in his name or he may discontinue the proceedings if—
(a)
he makes provision under subsection (2)(a), such that the
authority would no longer be entitled to bring the proceedings
under this section,
25
(b)
he gives a direction under subsection (2)(b) in relation to the
proceedings, or
(c)
a condition prescribed under subsection (3) ceases to be
satisfied in relation to the proceedings.
(5)
In the exercise of its power under subsection (2), a local authority must
30
have regard to the Code for Crown Prosecutors issued by the Director
of Public Prosecutions under section 10 of the Prosecution of Offences
Act 1985—
(a)
in determining whether the proceedings should be instituted;
(b)
in determining what charges should be preferred;
35
(c)
in considering what representations to make to a magistrates’
court about mode of trial;
(d)
in determining whether to discontinue proceedings.
(6)
An authority must not bring proceedings for a benefit offence which
does not relate to housing benefit or council tax benefit otherwise than
40
in accordance with this section.
(7)
In subsection (2), “relevant social security benefit” has the same
meaning as in section 121DA below.
(8)
This section does not apply to Scotland.”

Welfare Reform Bill
Part 3 — Social security administration: general
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47
Local authority functions relating to benefit: information
(1)
Section 122C of the Administration Act (supply of information to authorities
administering benefit) is amended as follows—
(a)
in subsection (2) at the end insert “or for the purposes of anything the
authority is permitted to do in relation to any other benefit by virtue of
5
section 110A or 116A above”;
(b)
in subsection (3)(a) for “offences relating to housing benefit or council
tax benefit” substitute “benefit offences (within the meaning of Part 6
above)”.
(2)
Section 122D of that Act (supply of information by authorities administering
10
benefit) is amended as follows—
(a)
in subsection (1), for “benefit administration information” substitute
“relevant benefit information”;
(b)
in subsection (2A), after “subsection (2)” insert “, in addition to any
other purpose for which the information may be used,”;
15
(c)
for subsection (4) substitute—
“(4)
In subsection (1) “relevant benefit information”, in relation to an
authority or other person, means any information which is
relevant to the exercise of any function relating to a relevant
social security benefit by the authority or other person.”;
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(d)
in subsection (5), in each place where it occurs for “housing benefit or
council tax benefit” substitute “any relevant social security benefit”;
(e)
in subsection (6), after the definition of “private pensions policy”
insert—
““relevant social security benefit” has the same meaning as
25
in section 121DA above;”.
(3)
Section 122E of that Act (supply of information between authorities
administering benefit) is amended as follows—
(a)
in subsection (1) for “benefit administration information” substitute
“relevant benefit information”;
30
(b)
in subsection (2)(a) for “offences relating to housing benefit or council
tax benefit” substitute “benefit offences (within the meaning of Part 6
above)”;
(c)
for subsection (6) substitute—
“(6)
In this section “relevant benefit information”, in relation to an
35
authority or other person, means any information which is
relevant to the exercise of any function relating to a relevant
social security benefit (within the meaning of section 121DA
above) by the authority or other person.”
(4)
In section 126A of that Act (power to require information from landlords and
40
agents), in subsection (8) for “benefit administration information” substitute
“relevant benefit information”.
48
Loss of benefit for commission of benefit offences
(1)
In section 7 of the Social Security Fraud Act 2001 (c. 11) (loss of benefit for
commission of benefit offences) in subsection (1)(b) (period within which later
45
offence must be committed), for “three years” substitute “five years”.

Welfare Reform Bill
Part 4 — Miscellaneous
40

(2)
The amendment made by subsection (1) shall be disregarded insofar as the
application of section 7(1)(b) of that Act involves considering whether an
offence committed before the day on which this section comes into force was
committed within the relevant period.
Part 4
5
Miscellaneous
Benefits for bereaved persons
49
Widowed mother’s allowance
In section 37(2) of the Contributions and Benefits Act (which links entitlement
to widowed mother’s allowance on the ground of being entitled to child
10
benefit to whether one of the conditions specified in section 77(5) of the Act is
satisfied), the words from “one of the conditions” to “person and” are omitted.
50
Widowed parent’s allowance
In section 39A(3) of the Contributions and Benefits Act (which links
entitlement to widowed parent’s allowance on the ground of being entitled to
15
child benefit to whether one of the conditions specified in section 77(5) of the
Act is satisfied), the words from “one of the conditions” to “person and” are
omitted.
Disability living allowance: age conditions
51
Care component of disability living allowance: persons under the age of 16
20
(1)
Section 72 of the Contributions and Benefits Act (care component of disability
living allowance) is amended as follows.
(2)
After subsection (1) insert—
“(1A)
In its application to a person in relation to so much of a period as falls
before the day on which he reaches the age of 16, subsection (1) has
25
effect subject to the following modifications—
(a)
the condition mentioned in subsection (1)(a)(ii) shall not apply,
and
(b)
none of the other conditions mentioned in subsection (1) shall
be taken to be satisfied unless—
30
(i)
he has requirements of a description mentioned in the
condition substantially in excess of the normal
requirements of persons of his age, or
(ii)
he has substantial requirements of such a description
which younger persons in normal physical and mental
35
health may also have but which persons of his age and
in normal physical and mental health would not have.”

Welfare Reform Bill
Part 4 — Miscellaneous
41

(3)
After subsection (2) insert—
“(2A)
The modifications mentioned in subsection (1A) shall have effect in
relation to the application of subsection (1) for the purposes of
subsection (2), but only—
(a)
in the case of a person who is under the age of 16 on the date on
5
which the award of the care component would begin, and
(b)
in relation to so much of any period mentioned in subsection (2)
as falls before the day on which he reaches the age of 16.”
(4)
In subsection (5) (terminally ill person to be taken to have satisfied the
conditions mentioned in subsection (1)(b) and (c)), after “person, shall” insert
10
“(notwithstanding subsection (1A)(b))”.
(5)
Subsection (6) (modifications for persons under 16) ceases to have effect.
(6)
In subsection (7), for “subsections (5) and (6)” substitute “subsection (5)”.
(7)
After that subsection insert—
“(7A)
Subsection (1A) has effect subject to regulations made under subsection
15
(7) (except as otherwise prescribed).”
52
Mobility component of disability living allowance: persons under the age of
16
(1)
Section 73 of the Contributions and Benefits Act (mobility component of
disability living allowance) is amended as follows.
20
(2)
For subsection (4) substitute—
“(4A)
In its application to a person in relation to so much of a period as falls
before the day on which he reaches the age of 16, subsection (1) has
effect subject to the modification that the condition mentioned in
paragraph (d) shall not be taken to be satisfied unless—
25
(a)
he requires substantially more guidance or supervision from
another person than persons of his age in normal physical and
mental health would require, or
(b)
persons of his age in normal physical and mental health would
not require such guidance or supervision.”
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(3)
In subsection (5), omit “Subject to subsection (4) above,”.
(4)
After that subsection insert—
“(5A)
Subsection (4A) has effect subject to regulations made under subsection
(5) (except as otherwise prescribed).”
(5)
After subsection (9) insert—
35
“(9A)
The modifications mentioned in subsection (4A) shall have effect in
relation to the application of subsection (1) for the purposes of
subsection (9), but only—
(a)
in the case of a person who is under the age of 16 on the date on
which the award of the mobility component would begin, and
40
(b)
in relation to so much of any period mentioned in subsection (9)
as falls before the day on which he reaches the age of 16.”