Welfare Reform Bill

Session 2010 - 11
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Other Bills before Parliament

Welfare Reform Bill

Welfare Reform Bill
Part 5 — Social security: general
67

(6B)
For the purposes of subsection (6A), references in section 8(4) and (5)
and 9(5) of the Electronic Communications Act 2000 to an order under
section 8 of that Act are to be read as references to regulations under
this Act; and references to anything authorised by such an order are to
be read as references to anything required or authorised by such
5
regulations.”
Recovery of benefits
102
Recovery of benefit payments
(1)
In the Social Security Administration Act 1992, after section 71ZA there is
inserted—
10
“Recovery of benefit payments
71ZB
Recovery of overpayments of certain benefits
(1)
The Secretary of State may recover any amount of the following paid in
excess of entitlement—
(a)
universal credit,
15
(b)
jobseeker’s allowance,
(c)
employment and support allowance, and
(d)
except in prescribed circumstances, housing credit (within the
meaning of the State Pension Credit Act 2002).
(2)
An amount recoverable under this section is recoverable from—
20
(a)
the person to whom it was paid, or
(b)
such other person (in addition to or instead of the person to
whom it was paid) as may be prescribed.
(3)
An amount paid in pursuance of a determination is not recoverable
under this section unless the determination has been—
25
(a)
reversed or varied on an appeal, or
(b)
revised or superseded under section 9 or section 10 of the Social
Security Act 1998,

except where regulations otherwise provide.
(4)
Regulations may provide that amounts recoverable under this section
30
are to be calculated or estimated in a prescribed manner.
(5)
Where an amount of universal credit is paid for the sole reason that a
payment by way of prescribed income is made after the date which is
the prescribed date for payment of that income, that amount is for the
purposes of this section paid in excess of entitlement.
35
(6)
In the case of a benefit referred to in subsection (1) which is awarded to
persons jointly, an amount paid to one of those persons may for the
purposes of this section be regarded as paid to the other.
(7)
An amount recoverable under this section may (without prejudice to
any other means of recovery) be recovered—
40
(a)
by deduction from benefit (section 71ZC);
(b)
through the courts etc (section 71ZD);
(c)
by adjustment of benefit (section 71ZE).

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71ZC
Deduction from benefit
(1)
An amount recoverable from a person under section 71ZB may be
recovered by deducting the amount from payments of prescribed
benefit to the person.
(2)
Where an amount recoverable from a person under section 71ZB was
5
paid to the person on behalf of another, subsection (1) authorises its
recovery from the person by deduction—
(a)
from prescribed benefits to which the person is entitled,
(b)
from prescribed benefits paid to the person to discharge (in
whole or in part) an obligation owed to that person by the
10
person on whose behalf the recoverable amount was paid, or
(c)
from prescribed benefits paid to the person to discharge (in
whole or in part) an obligation owed to that person by any other
person.
(3)
Where an amount is recovered as mentioned in paragraph (b) of
15
subsection (2), the obligation specified in that paragraph shall in
prescribed circumstances be taken to be discharged by the amount of
the deduction.
(4)
Where an amount is recovered as mentioned in paragraph (c) of
subsection (2), the obligation specified in that paragraph shall in all
20
cases be taken to be so discharged.
71ZD
Court action etc
(1)
Where an amount is recoverable under section 71ZB from a person
residing in England and Wales, the amount is, if a county court so
orders, recoverable—
25
(a)
under section 85 of the County Courts Act 1984, or
(b)
otherwise as if it were payable under an order of the court.
(2)
Where an amount is recoverable under section 71ZB from a person
residing in Scotland, the amount recoverable may be enforced as if it
were payable under an extract registered decree arbitral bearing a
30
warrant for execution issued by the sheriff court of any sheriffdom in
Scotland.
(3)
Any costs of the Secretary of State in recovering an amount of benefit
under this section may be recovered by him as if they were amounts
recoverable under section 71ZB.
35
(4)
In any period after the coming into force of this section and before the
coming into force of section 62 of the Tribunals, Courts and
Enforcement Act 2007, subsection (1)(a) has effect as if it read “by
execution issued from the county court”.
71ZE
Adjustment of benefit
40
Regulations may for the purpose of the recovery of amounts
recoverable under section 71ZB make provision—
(a)
for treating any amount paid to a person under an award which
it is subsequently determined was not payable—
(i)
as properly paid, or
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(ii)
as paid on account of a payment which it is determined
should be or should have been made,

and for reducing or withholding arrears payable by virtue of the
subsequent determination;
(b)
for treating any amount paid to one person in respect of another
5
as properly paid for any period for which it is not payable in
cases where in consequence of a subsequent determination—
(i)
the other person is entitled to a payment for that period,
or
(ii)
a third person is entitled in priority to the payee to a
10
payment for that period in respect of the other person,

and by reducing or withholding any arrears payable for that
period by virtue of the subsequent determination.
71ZF
Recovery of payments on account
(1)
The Secretary of State may recover any amount paid under section
15
5(1)(r) (payments on account).
(2)
An amount recoverable under this section is recoverable from—
(a)
the person to whom it was paid, or
(b)
such other person (in addition to or instead of the person to
whom it was paid) as may be prescribed.
20
(3)
Regulations may provide that amounts recoverable under this section
are to be calculated or estimated in a prescribed manner.
(4)
In the case of a payment on account of a benefit which is awarded to
persons jointly, an amount paid to one of those persons may for the
purposes of this section be regarded as paid to the other.
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(5)
Sections 71ZC and 71ZD apply in relation to amounts recoverable
under this section as to amounts recoverable under section 71ZB.
71ZG
Recovery of hardship payments etc
(1)
The Secretary of State may recover any amount paid by way of—
(a)
a payment under section 28 of the Welfare Reform Act 2011
30
(universal credit hardship payments) which is recoverable
under that section,
(b)
a payment under section 19C of the Jobseekers Act 1995
(jobseeker’s allowance hardship payments) which is
recoverable under that section,
35
(c)
a payment of a jobseeker’s allowance under paragraph 8 or 8A
of Schedule 1 to that Act (exemptions), where the allowance is
payable at a prescribed rate under paragraph 9 of that Schedule
and is recoverable under that paragraph,
(d)
a payment of a jobseeker’s allowance under paragraph 10 of
40
that Schedule (claims yet to be determined etc) which is
recoverable under that paragraph, or
(e)
a payment which is recoverable under section 6B(5A)(d) or
(7)(d), 7(2A)(d) or (4)(d), 8(3)(aa), (4)(d) or 9(2A)(d) or (4)(d) of
the Social Security Fraud Act 2001.
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(2)
An amount recoverable under this section is recoverable from—
(a)
the person to whom it was paid, or

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(b)
such other person (in addition to or instead of the person to
whom it was paid) as may be prescribed.
(3)
Regulations may provide that amounts recoverable under this section
are to be calculated or estimated in a prescribed manner.
(4)
Where universal credit or a jobseeker’s allowance is claimed by persons
5
jointly, an amount paid to one claimant may for the purposes of this
section be regarded as paid to the other.
(5)
Sections 71ZC to 71ZE apply in relation to amounts recoverable under
this section as to amounts recoverable under section 71ZB.”
(2)
In section 71 of that Act (overpayments - general), in subsection (11)(ab), at the
10
end there is inserted “excluding housing credit (see section 71ZB)”.
(3)
In section 115A of that Act (penalty as alternative to prosecution), in subsection
(1), after “71” there is inserted “71ZB”.
(4)
In section 115B of that Act (penalty as alternative to prosecution: colluding
employers etc), in subsection (4), at the end there is inserted “and sections 71ZC
15
and 71ZD above apply in relation to an amount recoverable by virtue of
paragraph (a) above as to amounts recoverable under section 71ZB above”.
(5)
In Schedule 1 to the Jobseekers Act 1995 (supplementary provision)—
(a)
in paragraph 9, at the end there is inserted—
“(c)
as to whether the whole or part of any amount of a
20
jobseeker’s allowance which is payable as specified in
paragraph (a) is recoverable.”;
(b)
in paragraph 10, for sub-paragraph (5)(a) there is substituted—
“(a)
as to whether the whole or part of any amount paid
by virtue of sub-paragraph (1) or (2) is recoverable;”.
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(6)
In section 12 of the Social Security Act 1998 (appeal to First-tier Tribunal), in
subsection (4), after “71” there is inserted “, 71ZB, 71ZF, 71ZG,”.
(7)
In Schedule 3 to that Act (decisions against which an appeal lies), after
paragraph 6 there is inserted—
“6A
A decision as to whether payment of housing credit (within the
30
meaning of the State Pension Credit Act 2002) is recoverable under
section 71ZB of the Administration Act.
6B
A decision as to the amount of payment recoverable under section
71ZB, 71ZF or 71ZG of the Administration Act.”
103
Recovery of child benefit and guardian’s allowance
35
(1)
In section 71(8) of the Social Security Administration Act 1992 (recovery of
benefits by deduction from prescribed benefits), the words “, other than an
amount paid in respect of child benefit or guardian’s allowance,” are repealed.
(2)
In section 69(8) of the Social Security Administration (Northern Ireland) Act
1992 (recovery of benefits by deduction from prescribed benefits), the words “,
40
other than an amount paid in respect of child benefit or guardian’s allowance,”
are repealed.
(3)
In the Tax Credits Act 2002, in Schedule 4, paragraphs 2 and 8 are repealed.