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Explanatory note

Original text. Later amendments are not shown.

These regulations further amend the Social Security (Claims and Payments) Regulations 1979 (“the principal regulations”). Regulation 3 inserts new regulation 16A in the principal regulations concerning the making of arrangements, on a claimant's application but subject to the Secretary of State's consent, for benefit to be paid by way of automated or other direct crediting to a bank or other account at intervals of 4 or 13 weeks.

The new regulation 16A of the principal regulations:

  • —specifies persons into whose accounts or joint accounts benefit may be credited and the benefits within the scope of the regulation ( paragraphs (1) and (2));

  • —provides for the manner in which applications are to be made and requires an applicant to declare that he has read and understood the conditions applicable—so ensuring that he becomes aware of the effect that paragraph (8) would have in the event of overpayment of benefit (paragraph (3));

  • —makes provision for payment by crediting at intervals of 4 or 13 weeks, commencement dates, effective dates for benefit rate changes, terminal payments and the termination of direct credit arrangements (paragraphs (4) to (7));

  • —modifies section 119 of the Social Security Act 1975, sub-sections (2) and (2A) of which provide that overpaid benefit is not recoverable where it is shown that the beneficiary and any person acting for him exercised due care and diligence to avoid overpayment; paragraph (8) removes this restriction on recovery where the overpayment occurred in the course of direct crediting under the regulation following a declaration made in accordance with paragraph (3); section 119 applies, however, in its unmodified form where the Secretary of State issues a certificate to that effect ( paragraph (9)).

Regulations 2, 4, 5 and 6 make amendments, consequent upon the new regulation 16A, to other provisions of the principal regulations and to provisions of the Mobility Allowance Regulations 1975 and the Social Security (General Benefit) Regulations 1974.

Regulation 7 increases the maximum fine which can be imposed for an offence against the provisions of the principal regulations from £50 to £200 and, where the offence is of a continuing nature, from £10 to £20 for each day the offence continues.

The Report of the Social Security Advisory Committee, dated 2nd June 1982 on the draft of these Regulations referred to them, together with a statement showing why the Regulations give effect to the Committee's recommendations only in part is contained in Command Paper (Cmnd. 8656) published by Her Majesty's Stationery Office.