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
85

(4)
For the purposes of section 36C—
(a)
the date of a person’s conviction in any proceedings of a benefit
offence shall be taken to be the date on which the person was
found guilty of that offence in those proceedings (whenever the
person was sentenced) or in the case mentioned in paragraph
5
(b)(ii) the date of the order for absolute discharge, and
(b)
references to a conviction include references to—
(i)
a conviction in relation to which the court makes an
order for absolute or conditional discharge,
(ii)
an order for absolute discharge made by a court of
10
summary jurisdiction in Scotland under section 246(3)
of the Criminal Procedure (Scotland) Act 1995 without
proceeding to a conviction, and
(iii)
a conviction in Northern Ireland.
(5)
In section 36C references to any previous application of that section—
15
(a)
include references to any previous application of a provision
having an effect in Northern Ireland corresponding to provision
made by that section, but
(b)
do not include references to any previous application of that
section the effect of which was to impose a restriction for a
20
period comprised in the same disqualification period.”
(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the “and” immediately following paragraph (c) is repealed;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
25
credit is not payable (or is not payable for a particular
period), and”.
(4)
In section 66 (parliamentary etc control of instruments), in subsection (3)—
(a)
in subsection (1)—
(i)
after “no” there is inserted “order or”;
30
(ii)
for “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),”.
35
(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;”.
116
Cautions
40
(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)
in subsection (1), after paragraph (a) there is inserted “or”;
45
(c)
subsection (1)(c) (cautions) is repealed;

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(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
of conviction, penalty or caution for benefit offence) subsection (1)(c) (cautions)
is repealed.
5
Administration of tax credits
117
Tax credit fraud: investigation
In section 109A of the Social Security Administration Act 1992 (authorisations
for investigators), at the end there is inserted—
“(9)
This section and sections 109B to 109C below apply as if—
10
(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”.”
15
118
Tax 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
20
offence 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.
25
(4)
In 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
30
summarily.
(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;
35
(b)
on 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;
40
(b)
for conviction in Northern Ireland, 6 months.

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(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
5
Wales before the commencement of section 154(1) of the Criminal
Justice 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
10
Administration 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
summarily only pursuant to subsection (2) above.
15
(11)
In Scotland, subsection (7)(a) and (b) of section 116 of the Social Security
Administration 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—
20
(a)
subsection (1) of section 110 of the Social Security
Administration (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
25
proceedings for an offence under this section which is triable
summarily only pursuant to subsection (2) above.”
119
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
30
Part 2, after “security,” there is inserted “to the investigation or prosecution of
offences relating to tax credits,”.
120
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
35
or the Commissioners;
(b)
direct 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
40
to cases within a specified description.
(3)
Her Majesty may by Order in Council, as Her Majesty considers appropriate—
(a)
make provision in connection with a transfer or direction under
subsection (1);

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(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;
5
(ii)
provision combining or linking any aspect of the payment and
management 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)
10
provision authorising or requiring its use or supply for other
purposes;
(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.
15
(4)
An Order may make provision under subsection (3)(b) only if—
(a)
the 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
20
State, the Treasury, the Commissioners, a Northern Ireland department
or 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
25
State in connection with tax credits.
(6)
Provision 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
30
conviction for the offence;
(b)
may 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,
35
incidental or transitional provision as Her Majesty considers appropriate
including (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);
40
(b)
provision for substituting any person for any other person in any
instrument 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
45
liabilities set out in the certificate have been transferred or apportioned by an
Order under this section as set out in the certificate is conclusive evidence of
the matters so set out.

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(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
5
credit or both.
(12)
In 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
10
Revenue and Customs;
“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);
15
“tax credit functions” means functions so far as relating to tax credits
conferred 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
20
121
Information-sharing between Secretary of State and HMRC
(1)
This 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.
25
(2)
Information to which subsection (1) applies may be supplied—
(a)
to 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,
30

for use for the purposes of departmental functions.
(3)
This 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
35
(b)
by a Northern Ireland Department, or by a person providing services to
a 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,
40

for use for the purposes of HMRC functions.
(5)
Information supplied under this section must not be supplied by the recipient
of the information to any other person or body without—

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(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
5
of information held as mentioned in subsection (3)(b) and supplied
under 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.
10
(7)
In this section—
“departmental functions” means functions relating to—
(a)
social security,
(b)
employment or training, or
(c)
the investigation or prosecution of offences relating to tax
15
credits;
“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
20
(b)
which relates to a matter listed in Schedule 1 to that Act;
“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.
25
(8)
For the purposes of this section any reference to functions relating to social
security 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;
30
(c)
statutory payments as defined in section 4C(11) of the Social Security
Contributions 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.
35
(10)
In section 3 of the Social Security Act 1998 (use of information), in subsection
(1A) after paragraph (d) there is inserted—
“(e)
the investigation or prosecution of offences relating to tax
credits.”
122
Information-sharing in relation to provision of overnight care etc
40
(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
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service;

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(b)
information about when the provision of the service begins or ends or
is 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—
5
(a)
a service consisting of overnight care in the individual’s own home
provided 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—
10
(a)
in relation to England, hospital accommodation within the meaning of
the 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
15
Health Board or an NHS trust;
(c)
in 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
20
with a dental school.
(5)
The 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
25
purposes.
(6)
The 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;
30
(d)
a person authorised to exercise any function of a local authority relating
to a relevant benefit;
(e)
a person providing services relating to a relevant benefit to a local
authority.
(7)
In this section “relevant benefit” means—
35
(a)
universal credit;
(b)
housing benefit;
(c)
council tax benefit;
(d)
any prescribed benefit.
(8)
Regulations under subsection (7) may not prescribe a benefit provision for
40
which is within the legislative competence of the Scottish Parliament.
123
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.
45