Paragraph 9 Increased daily rate penaltiesF1

(1)

This paragraph applies if—

(a)

a daily rate penalty is imposed on a person,

(b)

the failure to which the penalty relates continues for more than 30 days beginning with the first day on which the daily rate penalty is payable, and

(c)

the person has been notified that the Secretary of State may apply for an increased daily rate penalty to be payable.

(2)

The Secretary of State may make an application to the Tribunal for an increased daily rate penalty to be payable by the person.

(3)

If the Tribunal determines that an increased daily rate penalty must be paid, it must determine—

(a)

the increased daily rate, and

(b)

the date from which the increased rate begins to be payable.

(4)

In deciding the increased daily rate, the Tribunal, must, in particular, have regard to—

(a)

the likely cost to the person of complying with the eligibility verification notice,

(b)

any benefits to the person in not complying with it, and

(c)

any benefits to anyone else resulting from the person’s non-compliance.

(5)

The Tribunal may not determine a daily rate that exceeds £1,000.

(6)

The Secretary of State must notify the person of the Tribunal’s determination.

Annotations

F1: Sch. 3B inserted (2.12.2025 but only for the purposes of making regulations, 2.2.2026 in so far as not already in force) by Public Authorities (Fraud, Error and Recovery) Act 2025 (c. 28), s. 109(2)(b), Sch. 3 Pt. 1 (with s. 105); S.I. 2025/1265, reg. 2(2)(c)