Social Security and Housing Benefits Act 1982

Supplementary benefit

7 (1) This paragraph applies in any case where—

(a) for any period an amount has been paid by way of supplementary benefit to or in respect of an employee ; and

(b) it appears to the Secretary of State that the whole, or some part, of that amount might not have been so paid if an employer who was liable to make to that employee one or more payments of statutory sick pay had made that payment or, as the case may be, those payments.

(2) In this paragraph and in paragraphs 8 and 9 below " sickness payment" means—

(a) any payment by way of statutory sick pay ; and

(b) any payment, of a prescribed kind, made to an employee in respect of his incapacity for work.

(3) In any case to which this paragraph applies, the Secretary of State may serve on the employer concerned, in a prescribed form and manner, a notice—

(a) informing him that an amount has been paid by way of supplementary benefit to or in respect of the employee and of the period for which the payment was made ;

(b) requiring him to inform the Secretary of State in writing, within such period as may be specified in the notice—

(i) whether or not he is, or has at any time been, liable to make any sickness payment to the employee in respect of any day specified in the notice ;

(ii) of the amount of any such liability in respect of statutory sick pay ;

(iii) of the amount of any such liability in respect of any other sickness payment; and

(iv) if any such liability has been discharged in whole or in part, of the extent to which it has been, and the date on which it was, discharged ; and

(c) requiring him to comply with sub-paragraph (4) below if he has been liable as mentioned in paragraph (b)(i) above, in respect of statutory sick pay, and at the time when he receives the notice—

(i) that liability ; or

(ii) if he has also been so liable in respect of any other sickness payment, his liability for that other sickness payment ;

has not been wholly discharged.

(4) Where an employer is required to comply with this sub-paragraph he shall—

(a) calculate, in accordance with regulations, the net payment for the purposes of paragraph 8 below ;

(b) inform the Secretary of State, in writing and before the expiry of the period mentioned in sub-paragraph (3)(b) above, of the amount of the net payment, as calculated by him ; and

(c) withhold, until such time as it is determined whether or not the employer is to be required to make a payment to the Secretary of State under paragraph 8(2) below, so much of the sickness payment, or part, in question as is equal to the net payment.

(5) In any case where an employer who is required by sub-paragraph (4) above to calculate the net payment to be made in his case—

(a) fails to inform the Secretary of State as required by sub paragraph (4)(b) above ; or

(b) in the opinion of the Secretary of State, has in purporting to calculate that payment failed to do so in accordance with the relevant regulations ;

the Secretary of State may make the calculation for him ; and this and the following paragraph shall have effect as if a calculation made by the Secretary of State under this sub-paragraph had been duly made by the employer concerned.

8 (1) This paragraph applies in any case where—

(a) a notice has been served on an employer under paragraph 7(3) above and the employer has been required to comply with paragraph 7(4) above ; and

(b) a benefit officer appointed under section 27 of the [1976 c. 71.] Supplementary Benefits Act 1976 determines that the whole, or a specified part, of the amount paid by way of supplementary benefit would not have been paid if the employer had paid to the employee concerned, on or before a date determined in accordance with regulations, an amount equal to the net payment, or the aggregate of the net payments, attributable to the sickness payment or payments in question.

(2) In a case to which this paragraph applies, the employer concerned shall, if the Secretary of State so requires, pay to the Secretary of State, within the prescribed period, whichever is the lesser of the following—

(a) the amount determined in accordance with sub-paragraph (1)(a) above ;

(b) an amount equal to the net payment, or the aggregate of the net payments, required to be withheld by virtue of paragraph 7(4)(c) above.

(3) Any sum paid to the Secretary of State under this paragraph shall be paid by him into the Consolidated Fund.

(4) For the purposes of regulations made under section 14(2)(d) (provision for review of determinations) of the Act of 1976 a determination by a benefit officer made for the purposes of this paragraph shall be treated as if it had been made under that Act; and for the purposes of section 15 of that Act (right of appeal) the employee shall be treated as a person to whom section 15 gives a right of appeal against the determination (including a determination to refuse to review a determination).

9 (1) Regulations shall provide—

(a) for the extent to which, and purposes for which, an employer who has made a payment to the Secretary of State under paragraph 8 above is to be treated as having discharged his liability to make the sickness payment or payments to which the payment under paragraph 8 is attributable ; and

(b) for an amount, calculated in accordance with the regulations, to be treated in a case to which sub-paragraph (2) below applies and for prescribed purposes as having been paid to the employee concerned as remuneration derived from an employed earner's employment.

(2) This sub-paragraph applies to any case (other than one of a prescribed class) where an employer is required by virtue of paragraph 7(4)(c) above to withhold the whole or any part of a sickness payment.

(3) Regulations made by virtue of sub-paragraph (1)(b) above may make provision for determining the date on which any payment treated as mentioned in that sub-paragraph is to be taken as having been made.

10 Nothing in paragraphs 7 to 9 above shall be taken to prejudice the right of the Secretary of State, under any other enactment, to recover the amount of any supplementary benefit from any person.