Social Security Fraud Act 2001

7 Loss of benefit for commission of benefit offences U.K.

(1) If—

(a) a person (“the offender”) is convicted of one or more benefit offences in each of two separate sets of proceedings,

(b) the benefit offence, or one of the benefit offences, of which he is convicted in the later proceedings is one committed within the period of three years after the date, or any of the dates, on which he was convicted of a benefit offence in the earlier proceedings,

(c) the later set of proceedings has not been taken into account for the purposes of any previous application of this section or section 8 or 9 in relation to the offender or any person who was then a member of his family,

(d) the earlier set of proceedings has not been taken into account as the earlier set of proceedings for the purposes of any previous application of this section or either of those sections in relation to the offender or any person who was then a member of his family, and

(e) 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.

(2) Subject to subsections (3) to (5), the sanctionable benefit shall not be payable in the offender’s case for any period comprised in the disqualification period.

(3) Where the sanctionable benefit is income support, the benefit shall be payable in the offender’s case for any period comprised in the disqualification period as if the applicable amount used for the determination under section 124(4) of the Social Security Contributions and Benefits Act 1992 (c. 4) of the amount of the offender’s entitlement for that period were reduced in such manner as may be prescribed.

(4) The Secretary of State may by regulations provide that, where the sanctionable benefit is jobseeker’s allowance, any income-based jobseeker’s allowance 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—

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

(b) 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;

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

[F1 (4A) 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.]

(5) The Secretary of State may by regulations provide that, where the sanctionable benefit is housing benefit or council tax benefit, the benefit shall be payable, during the whole or a part of any period comprised in the disqualification period, as if one or both of the following applied—

(a) the rate of the benefit were reduced in such manner as may be prescribed;

(b) the benefit were payable only if the circumstances are such as may be prescribed.

(6) For the purposes of this section the disqualification period, in relation to the conviction of a person of one or more benefit offences in each of two separate sets of proceedings, means the period of thirteen weeks beginning with such date, falling after the date of the conviction in the later set of proceedings, as may be determined by or in accordance with regulations made by the Secretary of State.

(7) Where—

(a) the conviction of any person of any offence is taken into account for the purposes of the application of this section in relation to that person, and

(b) that conviction is subsequently quashed,

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.

(8) In this section—

• “benefit offence” means—

  (a)

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

  (b)

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

  (c)

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

  (d)

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

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

  (a)

  any benefit under the Jobseekers Act 1995 (c. 18) or the Jobseekers (Northern Ireland) Order 1995 (S.I. 1995/2705 (N.I. 15));

[F2 (aa) any benefit under the State Pension Credit Act 2002 or under any provision having effect in Northern Ireland corresponding to that Act;]

(b) any benefit under the Social Security Contributions and Benefits Act 1992 (c. 4) or the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) other than—

(i) maternity allowance;

(ii) working families’ tax credit;

(iii) disabled person’s tax credit; and

(iv) statutory sick pay and statutory maternity pay;

(c) any war pension;

“sanctionable benefit” means (subject to subsection (11) and to any regulations under section 10(1)) any disqualifying benefit other than—

(a)

joint-claim jobseeker’s allowance;

(b)

any retirement pension;

(c)

graduated retirement benefit;

(d)

disability living allowance;

(e)

attendance allowance;

(f)

child benefit;

(g)

guardian’s allowance;

(h)

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

(i)

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

(9) For the purposes of this section—

(a) the date of a person’s conviction in any proceedings of a benefit offence shall be taken to be the date on which he was found guilty of that offence in those proceedings (whenever he was sentenced); and

(b) references to a conviction include references to a conviction in relation to which the court makes an order for a conditional discharge or a court in Scotland makes a probation order and to a conviction in Northern Ireland.

(10) In this section references to any previous application of this section or section 8 or 9—

(a) include references to any previous application of a provision having an effect in Northern Ireland corresponding to provision made by this section, or either of those sections; but

(b) do not include references to any previous application of this section, or of either of those sections, the effect of which was to impose a restriction for a period comprised in the same disqualification period.

(11) In its application to Northern Ireland this section shall have effect as if references to a sanctionable benefit were references only to a war pension.

Textual Amendments

F1 S. 7(4A) inserted (2.7.2002 for the purpose of making regulations, 6.10.2003 in so far as not already in force) by 2002 c. 16 , s. 14 , Sch. 2 Pt. 3 para. 45(2) ; S.I. 2002/1691 , art. 2 ; S.I. 2003/1766 , art. 2(a)

F2 S. 7(8): In definition of “disqualifying benefit” (aa) inserted (7.2.2002) by 2002 c. 16, s. 14, Sch. 2 Pt. 3 para. 45(3); S.I. 2002/1691, art. 2

Modifications etc. (not altering text)

C1 S. 7 restricted (1.4.2002) by S.I. 2001/4022 , reg. 20

C2 S. 7(2) excluded (1.4.2002) by S.I. 2001/4022 , regs. 6(2) , 7(2)

C3 S. 7(9) applied (1.4.2002) by S.I. 2001/4022 , reg. 2(2)

Commencement Information

I1 S. 7 wholly in force at 1.4.2002; s. 7 not in force at Royal Assent see s. 20; s. 7 in force for specified purposes at 17.11.2001 and wholly in force at 1.4.2002 by S.I. 2001/3689 , art. 2(1)(a)(b)