Social Security Fraud Act 2001 in Northern Ireland

In Part 14 of the Administration Act (social security systems outside Great Britain), after section 179 there shall be inserted the following section—

“ Exchange of information with overseas authorities

179A

(1)

This section applies where it appears to the Secretary of State—

(a)

that there are arrangements in force for the exchange of relevant information between him and any authorities in a country outside the United Kingdom (’the overseas country’); and

(b)

that the arrangements and the law in force in the overseas country are such as to ensure that there are adequate safeguards in place against any improper use of information disclosed by the Secretary of State under this section.

(2)

For the purpose of facilitating the carrying out by authorities in the overseas country of any function relating to anything corresponding to, or in the nature of, a social security benefit, the Secretary of State may make any such disclosure of relevant information to authorities in the overseas country as he considers necessary to give effect to the arrangements.

(3)

It shall be the duty of the Secretary of State to take all such steps as may be reasonable for securing that relevant information disclosed to him in accordance with the arrangements is not used for any purpose for which its use is not expressly or impliedly authorised by or under the arrangements.

(4)

This section does not apply where provision is in force under section 179 above for giving effect to the arrangements in question.

(5)

The purposes for which information may be required to be disclosed to the Secretary of State under section 122D above or section 116D of the Northern Ireland Administration Act (information required from authorities administering housing benefit or council tax benefit) shall be deemed to include the further disclosure of that information in accordance with this section.

(6)

In this section “relevant information” means any information held by the Secretary of State or any authorities in a country outside the United Kingdom for the purposes of any functions relating to, or to anything corresponding to or in the nature of, a social security benefit.”

In Part 13 of the Social Security Administration (Northern Ireland) Act 1992 (c. 8) (social security systems outside Northern Ireland), after section 155 there shall be inserted the following section—

“ Exchange of information with overseas authorities

155A

(1)

This section applies where it appears to the Department—

(a)

that there are arrangements in force for the exchange of relevant information between the Department and any authorities in a country outside the United Kingdom (“the overseas country”); and

(b)

that the arrangements and the law in force in the overseas country are such as to ensure that there are adequate safeguards in place against any improper use of information disclosed by the Department under this section.

(2)

For the purpose of facilitating the carrying out by authorities in the overseas country of any function relating to anything corresponding to, or in the nature of, a social security benefit, the Department may make any such disclosure of relevant information to authorities in the overseas country as the Department considers necessary to give effect to the arrangements.

(3)

It shall be the duty of the Department to take all such steps as may be reasonable for securing that relevant information disclosed to it in accordance with the arrangements is not used for any purpose for which its use is not expressly or impliedly authorised by or under the arrangements.

(4)

This section does not apply where provision is in force under section 155 above for giving effect to the arrangements in question.

(5)

The purposes for which information may be required to be disclosed to the Department under section 116D above or section 122D of the Great Britain Administration Act (information required from authorities administering housing benefit or council tax benefit) shall be deemed to include the further disclosure of that information in accordance with this section.

(6)

In this section “relevant information” means any information held by the Department or any authorities in a country outside the United Kingdom for the purposes of any functions relating to, or to anything corresponding to or in the nature of, a social security benefit.”

In this section and sections 6B and 7—

• “ disqualifying benefit ” means (subject to any regulations under section 10(1))—

  1. (za)

     F2any benefit under Part 1 of the Welfare Reform Act 2012 (universal credit) or under any provision having effect in Northern Ireland corresponding to that Part;

  2. (zb)

     F3state pension or a lump sum under Part 1 of the Pensions Act 2014 or under any provision in Northern Ireland which corresponds to that Part;

  3. (a)

     any benefit under the Jobseekers Act 1995 or the Jobseekers (Northern Ireland) Order 1995;

  4. (b)

     any benefit under the State Pension Credit Act 2002 or the State Pension Credit Act (Northern Ireland) 2002;

  5. (c)

     any benefit under Part 1 of the Welfare Reform Act 2007 or Part 1 of the Welfare Reform Act (Northern Ireland) 2007 (employment and support allowance);

  6. (ca)

     F4any benefit under Part 4 of the Welfare Reform Act 2012 (personal independence payment) or under any provision in Northern Ireland which corresponds to that Part;

  7. (cb)

     F5bereavement support payment under section 30 of the Pensions Act 2014 or under any provision in Northern Ireland which corresponds to that section;

  8. (d)

     any benefit under the Social Security Contributions and Benefit Act 1992 or the Social Security Contributions and Benefits (Northern Ireland) Act 1992 other than—

     1. (i)

        maternity allowance;

     2. (ii)

        statutory sick pay and statutory maternity pay;

  9. (e)

     any war pension

  10. (f)

      F6child tax credit;

  11. (g)

      working tax credit

• “ sanctionable benefit ” means (subject to subsection (2) and to any regulations under section 10(1)) any disqualifying benefit other than—

  1. (a)

     joint-claim jobseeker's allowance;

  2. (aa)

     F7state pension or a lump sum under Part 1 of the Pensions Act 2014;

  3. (b)

     any retirement pension;

  4. (c)

     graduated retirement benefit;

  5. (ca)

     F8personal independence payment;

  6. (d)

     disability living allowance

  7. (e)

     attendance allowance;

  8. (f)

     child benefit;

  9. (fa)

     F9child tax credit;

  10. (fb)

      working tax credit;

  11. (g)

      guardian's allowance;

  12. (h)

      a payment out of the social fund in accordance with Part 8 of the Social Security Contributions and Benefits Act 1992;

  13. (i)

      a payment under Part 10 of that Act (Christmas bonuses).

In their application to Northern Ireland sections 6B and 7 shall have effect as if references to a sanctionable benefit were references only to a war pension.

Subsection (4) applies where a person (“the offender”)—

In subsection (1)(b)—

Subsection (4) does not apply by virtue of subsection (1)(a) if, because the proceedings in which the offender was convicted constitute the F7current set of proceedings for the purposes of section 7, the restriction in subsection (2) of that section applies in the offender's case.

If this subsection applies and the offender is a person with respect to whom the conditions for an entitlement to a sanctionable benefit are or become satisfied at any time within the disqualification period, then, even though those conditions are satisfied, the following restrictions shall apply in relation to the payment of that benefit in the offender's case.

Subject to subsections F8(5A) F9and (8), the sanctionable benefit shall not be payable in the offender's case for any period comprised in the disqualification period.

The Secretary of State may by regulations provide that, where the sanctionable benefit is universal credit, the benefit shall be payable, during the whole or a part of any period comprised in the disqualification period, as if one or more of the following applied—

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the rate of the allowance were such reduced rate as may be prescribed;

the allowance were payable only if there is compliance by the offender with such obligations with respect to the provision of information as may be imposed by the regulations;

the allowance were payable only if the circumstances are otherwise such as may be prescribed.

The Secretary of State may by regulations provide that, where the sanctionable benefit is state pension credit, the benefit shall be payable in the offender's case for any period comprised in the disqualification period as if the rate of the benefit were reduced in such manner as may be prescribed.

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For the purposes of this section the disqualification period, in relation to any disqualifying event, means F13the relevant period beginning with such date, falling after the date of the disqualifying event, as may be determined by or in accordance with regulations made by the Secretary of State.

For the purposes of subsection (11) the relevant period is—

This section has effect subject to section 6C.

In this section and section 6C—

• “ benefit offence ” means—

  1. (a)

     any post-commencement offence in connection with a claim for a disqualifying benefit;

  2. (b)

     any post-commencement offence in connection with the receipt or payment of any amount by way of such a benefit;

  3. (c)

     any post-commencement offence committed for the purpose of facilitating the commission (whether or not by the same person) of a benefit offence;

  4. (d)

     any post-commencement offence consisting in an attempt or conspiracy to commit a benefit offence;

• “ disqualifying event ” means the conviction falling within subsection (1)(a), the agreement falling within subsection (1)(b) or the caution falling within subsection (1)(c);

• “ post-commencement offence ” means any criminal offence committed after the commencement of this section.

In this section and section 7 “ relevant offence ” means—

The Secretary of State may by order amend subsection (11A)(a), (b) or (c), or (14)(b)(i), (ii) or (iii) to substitute a different period or amount for that for the time being specified there.

Where—

all such payments and other adjustments shall be made as would be necessary if no restriction had been imposed by or under section 6B that could not have been imposed if the conviction had not taken place.

Where, after the agreement of any person (“P”) to pay a penalty under the appropriate penalty provision is taken into account for the purposes of the application of section 6B in relation to that person—

all such payments and other adjustments shall be made as would be necessary if no restriction had been imposed by or under section 6B that could not have been imposed if P had not agreed to pay the penalty.

Where, after the agreement (“ the old agreement ”) of any person (“P”) to pay a penalty under the appropriate penalty provision is taken into account for the purposes of the application of section 6B in relation to P, the amount of F4any overpayment made to which the penalty relates is revised on an appeal or in accordance with regulations under F5... the Social Security (Northern Ireland) Order 1998—

Where this subsection applies—

For the purposes of section 6B—

In this section “ the appropriate penalty provision ” has the meaning given by section 6B(2)(a).

If—

then, even though those conditions are satisfied, the following restrictions shall apply in relation to the payment of that benefit in the offender’s case.

The following restrictions do not apply if the benefit offence referred to in subsection (1)(a), or any of them, is a relevant offence.

Subject to subsections F3(2A) F4and (4A), the sanctionable benefit shall not be payable in the offender’s case for any period comprised in the disqualification period.

The Secretary of State may by regulations provide that, where the sanctionable benefit is universal credit, the benefit shall be payable, during the whole or a part of any period comprised in the disqualification period, as if one or more of the following applied—

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The Secretary of State may by regulations provide that, where the sanctionable benefit is state pension credit, the benefit shall be payable in the offender’s case for any period comprised in the disqualification period as if the rate of the benefit were reduced in such manner as may be prescribed.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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For the purposes of this section the disqualification period, F8in an offender's case, means the relevant period beginning with a prescribed date falling after the date of the conviction in the current set of proceedings.

For the purposes of subsection (6) the relevant period is—

Where—

all such payments and other adjustments shall be made as would be necessary if no restriction had been imposed by or under this section that could not have been imposed if the conviction had not taken place.

Subsection (7B) applies where, after the agreement of any person (“P”) to pay a penalty under the appropriate penalty provision is taken into account for the purposes of the application of this section in relation to that person—

In those circumstances, all such payments and other adjustments shall be made as would be necessary if no restriction had been imposed by or under this section that could not have been imposed if P had not agreed to pay the penalty.

In this section—

• F11 “ appropriate penalty provision ” has the meaning given in section 6B(2)(a);”

• “benefit offence” means—

  1. (a)

     any post-commencement offence in connection with a claim for a disqualifying benefit;

  2. (b)

     any post-commencement offence in connection with the receipt or payment of any amount by way of such a benefit;

  3. (c)

     any post-commencement offence committed for the purpose of facilitating the commission (whether or not by the same person) of a benefit offence;

  4. (d)

     any post-commencement offence consisting in an attempt or conspiracy to commit a benefit offence;

• “ disqualifying event ” has the meaning given in section 6B(13).

• F12 “ post-commencement offence ” means an offence committed on or after 1 April 2002 (the day on which this section came into force).

• F13...

Where a person is convicted of more than one benefit offence in the same set of proceedings, there is to be only one disqualifying event in respect of that set of proceedings for the purposes of this section and—

For the purposes of this section—

In this section references to any previous application of this section or section F18... 9—

The Secretary of State may by order amend subsection (6A) to substitute different periods for those for the time being specified there.

An order under subsection (10A) may provide for different periods to apply according to the type of earlier disqualifying event or events occurring in any case

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The Secretary of State may by regulations provide for any social security benefit to be treated for the purposes of F1sections 6A to 9—

The Secretary of State may by regulations provide for any restriction in sectionF26B, 7, 8 or 9 not to apply in relation to payments of benefit to the extent of any deduction that (if any payment were made) would fall, in pursuance of provision made by or under any enactment, to be made from the payments and paid to a person other than the offender or, as the case may be, a member of his family.

In this section “social security benefit” means—

In F1sections 6B to 10 “prescribed” means prescribed by or determined in accordance with regulations made by the Secretary of State.

Regulations under any of the provisions of F2sections 6B to 10 shall be made by statutory instrument which (except in the case of regulations to which subsection (3) applies) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

A statutory instrument containing (whether alone or with other provisions)—

shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

Subsections (4) to (6) of section 189 of the Administration Act (supplemental and incidental powers etc.) shall apply in relation to a power to makeF8an order or regulations that is conferred by any of the provisions of F9sections 6B to 10 as they apply in relation to the powers to makean order or regulations that are conferred by that Act.

The provision that may be made in exercise of the powers to make regulations that are conferred by F10sections 6B to 10 shall include different provision for different areas.

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In paragraph 3 of Schedule 3 to the Social Security Act 1998 (c. 14) (decisions against which an appeal lies), after sub-paragraph (e) there shall be inserted

“; or

(f)

section 7, 8 or 9 of the Social Security Fraud Act 2001.”

In section 170 of Administration Act (functions of the Social Security Advisory Committee in relation to the relevant enactments and the relevant Northern Ireland enactments), in subsection (5)—

and

In section 111A of the Administration Act (dishonest representations for obtaining benefit etc.)—

Those subsections are—

“(1A)

A person shall be guilty of an offence if—

(a)

there has been a change of circumstances affecting any entitlement of his to any benefit or other payment or advantage under any provision of the relevant social security legislation;

(b)

the change is not a change that is excluded by regulations from the changes that are required to be notified;

(c)

he knows that the change affects an entitlement of his to such a benefit or other payment or advantage; and

(d)

he dishonestly fails to give a prompt notification of that change in the prescribed manner to the prescribed person.

(1B)

A person shall be guilty of an offence if—

(a)

there has been a change of circumstances affecting any entitlement of another person to any benefit or other payment or advantage under any provision of the relevant social security legislation;

(b)

the change is not a change that is excluded by regulations from the changes that are required to be notified;

(c)

he knows that the change affects an entitlement of that other person to such a benefit or other payment or advantage; and

(d)

he dishonestly causes or allows that other person to fail to give a prompt notification of that change in the prescribed manner to the prescribed person.

(1C)

This subsection applies where—

(a)

there has been a change of circumstances affecting any entitlement of a person (’the claimant’) to any benefit or other payment or advantage under any provision of the relevant social security legislation;

(b)

the benefit, payment or advantage is one in respect of which there is another person (’the recipient’) who for the time being has a right to receive payments to which the claimant has, or (but for the arrangements under which they are payable to the recipient) would have, an entitlement; and

(c)

the change is not a change that is excluded by regulations from the changes that are required to be notified.

(1D)

In a case where subsection (1C) above applies, the recipient is guilty of an offence if—

(a)

he knows that the change affects an entitlement of the claimant to a benefit or other payment or advantage under a provision of the relevant social security legislation;

(b)

the entitlement is one in respect of which he has a right to receive payments to which the claimant has, or (but for the arrangements under which they are payable to the recipient) would have, an entitlement; and

(c)

he dishonestly fails to give a prompt notification of that change in the prescribed manner to the prescribed person.

(1E)

In a case where that subsection applies, a person other than the recipient is guilty of an offence if—

(a)

he knows that the change affects an entitlement of the claimant to a benefit or other payment or advantage under a provision of the relevant social security legislation;

(b)

the entitlement is one in respect of which the recipient has a right to receive payments to which the claimant has, or (but for the arrangements under which they are payable to the recipient) would have, an entitlement; and

(c)

he dishonestly causes or allows the recipient to fail to give a prompt notification of that change in the prescribed manner to the prescribed person.

(1F)

In any case where subsection (1C) above applies but the right of the recipient is confined to a right, by reason of his being a person to whom the claimant is required to make payments in respect of a dwelling, to receive payments of housing benefit—

(a)

a person shall not be guilty of an offence under subsection (1D) or (1E) above unless the change is one relating to one or both of the following—

(i)

the claimant’s occupation of that dwelling;

(ii)

the claimant’s liability to make payments in respect of that dwelling;

but

(b)

subsections (1D)(a) and (1E)(a) above shall each have effect as if after “knows” there were inserted “or could reasonably be expected to know”.

(1G)

For the purposes of subsections (1A) to (1E) above a notification of a change is prompt if, and only if, it is given as soon as reasonably practicable after the change occurs.”

For subsection (1A) of section 112 of that Act (knowing failures to notify change of circumstances) there shall be substituted—

“(1A)

A person shall be guilty of an offence if—

(a)

there has been a change of circumstances affecting any entitlement of his to any benefit or other payment or advantage under any provision of the relevant social security legislation;

(b)

the change is not a change that is excluded by regulations from the changes that are required to be notified;

(c)

he knows that the change affects an entitlement of his to such a benefit or other payment or advantage; and

(d)

he fails to give a prompt notification of that change in the prescribed manner to the prescribed person.

(1B)

A person is guilty of an offence under this section if—

(a)

there has been a change of circumstances affecting any entitlement of another person to any benefit or other payment or advantage under any provision of the relevant social security legislation;

(b)

the change is not a change that is excluded by regulations from the changes that are required to be notified;

(c)

he knows that the change affects an entitlement of that other person to such a benefit or other payment or advantage; and

(d)

he causes or allows that other person to fail to give a prompt notification of that change in the prescribed manner to the prescribed person.

(1C)

In a case where subsection (1C) of section 111A above applies, the recipient is guilty of an offence if—

(a)

he knows that the change affects an entitlement of the claimant to a benefit or other payment or advantage under a provision of the relevant social security legislation;

(b)

the entitlement is one in respect of which he has a right to receive payments to which the claimant has, or (but for the arrangements under which they are payable to the recipient) would have, an entitlement; and

(c)

he fails to give a prompt notification of that change in the prescribed manner to the prescribed person.

(1D)

In a case where that subsection applies, a person other than the recipient is guilty of an offence if—

(a)

he knows that the change affects an entitlement of the claimant to a benefit or other payment or advantage under a provision of the relevant social security legislation;

(b)

the entitlement is one in respect of which the recipient has a right to receive payments to which the claimant has, or (but for the arrangements under which they are payable to the recipient) would have, an entitlement; and

(c)

he causes or allows the recipient to fail to give a prompt notification of that change in the prescribed manner to the prescribed person.

(1E)

Subsection (1F) of section 111A above applies in relation to subsections (1C) and (1D) above as it applies in relation to subsections (1D) and (1E) of that section.

(1F)

For the purposes of subsections (1A) to (1D) above a notification of a change is prompt if, and only if, it is given as soon as reasonably practicable after the change occurs.”

The preceding provisions of this Act shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint.

Subject to subsection (3), different days may be appointed under this section for different purposes.

The power under this section to appoint a day for the coming into force of the provisions of sections 1 and 2 shall not authorise the appointment for those purposes of any day before the issue of the code of practice that must be issued under section 3.

This Act may be cited as the Social Security Fraud Act 2001.

Sections 5(2),F16A, 6B and 6C 7, 10, 11, 12(3), 13 and 20, and this section, extend to Northern Ireland; and the other provisions of this Act do not so extend.