Welfare Reform Act 2012

Penalties as alternative to prosecution E+W+S

113 Penalty in respect of benefit fraud not resulting in overpayment E+W+S

(1) Section 115A of the Social Security Administration Act 1992 (penalty as alternative to prosecution) is amended as follows.

(2) After subsection (1) there is inserted—

“(1A) This section also applies where —

(a) it appears to the Secretary of State or an authority that there are grounds for instituting proceedings against a person for an offence (under this Act or any other enactment) relating to an act or omission on the part of that person in relation to any benefit, and

(b) if an overpayment attributable to the act or omission had been made, the overpayment would have been recoverable from the person by, or due from the person to, the Secretary of State or an authority under or by virtue of section 71, 71ZB, 71A, 75 or 76 above.”

(3) In subsection (2)(a) for “such proceedings” there is substituted “proceedings referred to in subsection (1) or (1A) above“.

(4) In subsection (4)—

(a) in paragraph (a), after “is” there is inserted “ or would have been ”;

(b) in paragraph (b), at the end there is inserted “or to the act or omission referred to in subsection (1A)(a).“

(5) In subsections (6) and (7), at the beginning there is inserted “In a case referred to in subsection (1)”.

(6) In subsection (7B)(a), after “is”, in both places, there is inserted “ or would have been ”.

(7) In subsection (8) after “subsection (1)(a)” there is inserted “ or (1A)(b) ”.

(8) In the Social Security Fraud Act 2001—

(a) in section 6B(1)(b), the words “by reference to any overpayment” are repealed and for “the offence mentioned in subsection (1)(b) of the appropriate penalty provision” there is substituted “ the offence to which the notice relates ”;

(b) in sections 6C(2)(b) and (3), 8(7)(b) and (8) and 9(7)(b) and (8), for “the overpayment” there is substituted “ any overpayment made ”.

Commencement Information

I1 S. 113 in force at 8.5.2012 by S.I. 2012/863, art. 2(3)(a)

114 Amount of penalty E+W+S

(1) In section 115A of the Social Security Administration Act 1992 (penalty as alternative to prosecution), for subsection (3) there is substituted—

“(3) The amount of the penalty in a case falling within subsection (1) is 50% of the amount of the overpayment (rounded down to the nearest whole penny), subject to—

(a) a minimum amount of £350, and

(b) a maximum amount of £2000.

(3A) The amount of the penalty in a case falling within subsection (1A) is £350.

(3B) The Secretary of State may by order amend—

(a) the percentage for the time being specified in subsection (3);

(b) any figure for the time being specified in subsection (3)(a) or (b) or (3A).”

(2) In section 190 of that Act (parliamentary control of orders and regulations), in subsection (1), before paragraph (za) there is inserted—

“(zza) an order under section 115A(3B);”.

Commencement Information

I2 S. 114 in force at 8.5.2012 by S.I. 2012/863, art. 2(3)(b)

115 Period for withdrawal of agreement to pay penalty E+W+S

(1) The Social Security Administration Act 1992 is amended as follows.

(2) In section 115A (penalty as alternative to prosecution), in subsection (5) (cooling-off period), for “28” there is substituted “ 14 ”.

(3) In section 115B (penalty as alternative to prosecution: colluding employers etc), in subsection (6) (cooling-off period), for “28” there is substituted “ 14 ”.

Commencement Information

I3 S. 115 in force at 8.5.2012 by S.I. 2012/863, art. 2(3)(c)