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Social Security Administration Act 1992

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Point in time view as at 25/10/2022.

Changes to legislation:

Social Security Administration Act 1992, Cross Heading: Inspection and offences is up to date with all changes known to be in force on or before 27 December 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

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Inspection and offencesU.K.

[F1109AAuthorisations for investigatorsU.K.

(1)An individual who for the time being has the Secretary of State's authorisation for the purposes of this Part shall be entitled, for any one or more of the purposes mentioned in subsection (2) below, to exercise any of the powers which are conferred on an authorised officer by sections 109B and 109C below.

(2)Those purposes are—

(a)ascertaining in relation to any case whether a benefit is or was payable in that case in accordance with any provision of the relevant social security legislation;

(b)investigating the circumstances in which any accident, injury or disease which has given rise, or may give rise, to a claim for—

(i)industrial injuries benefit, or

(ii)any benefit under any provision of the relevant social security legislation, occurred or may have occurred, or was or may have been received or contracted;

(c)ascertaining whether provisions of the relevant social security legislation are being, have been or are likely to be contravened (whether by particular persons or more generally);

(d)preventing, detecting and securing evidence of the commission (whether by particular persons or more generally) of benefit offences.

(3)An individual has the Secretary of State's authorisation for the purposes of this Part if, and only if, the Secretary of State has granted him an authorisation for those purposes and he is—

(a)an official of a Government department;

(b)an individual employed by an authority administering housing benefit or council tax benefit;

(c)an individual employed by an authority or joint committee that carries out functions relating to housing benefit or council tax benefit on behalf of the authority administering that benefit; or

(d)an individual employed by a person authorised by or on behalf of any such authority or joint committee as is mentioned in paragraph (b) or (c) above to carry out functions relating to housing benefit or council tax benefit for that authority or committee.

(4)An authorisation granted for the purposes of this Part to an individual of any of the descriptions mentioned in subsection (3) above—

(a)must be contained in a certificate provided to that individual as evidence of his entitlement to exercise powers conferred by this Part;

(b)may contain provision as to the period for which the authorisation is to have effect; and

(c)may restrict the powers exercisable by virtue of the authorisation so as to prohibit their exercise except for particular purposes, in particular circumstances or in relation to particular benefits or particular provisions of the relevant social security legislation.

(5)An authorisation granted under this section may be withdrawn at any time by the Secretary of State.

(6)Where the Secretary of State grants an authorisation for the purposes of this Part to an individual employed by a local authority, or to an individual employed by a person who carries out functions relating to housing benefit or council tax benefit on behalf of a local authority—

(a)the Secretary of State and the local authority shall enter into such arrangements (if any) as they consider appropriate with respect to the carrying out of functions conferred on that individual by or in connection with the authorisation granted to him; and

(b)the Secretary of State may make to the local authority such payments (if any) as he thinks fit in respect of the carrying out by that individual of any such functions.

(7)The matters on which a person may be authorised to consider and report to the Secretary of State under section 139A below shall be taken to include the carrying out by any such individual as is mentioned in subsection (3)(b) to (d) above of any functions conferred on that individual by virtue of any grant by the Secretary of State of an authorisation for the purposes of this Part.

(8)The powers conferred by sections 109B and 109C below shall be exercisable in relation to persons holding office under the Crown and persons in the service of the Crown, and in relation to premises owned or occupied by the Crown, as they are exercisable in relation to other persons and premises.

[F2(9)This section and sections 109B to 109C below apply as if—

(a)the Tax Credits Act 2002 were relevant social security legislation, and

(b)accordingly, child tax credit and working tax credit were relevant social security benefits for the purposes of the definition of “benefit offence“.]

Textual Amendments

F2S. 109A(9) inserted (6.6.2012) by Welfare Reform Act 2012 (c. 5), ss. 122, 150(3); S.I. 2012/1246, art. 2(2) (as amended (31.5.2012) by S.I. 2012/1440, art. 2)

109BPower to require informationU.K.

(1)An authorised officer who has reasonable grounds for suspecting that a person—

(a)is a person falling within subsection (2) [F3or (2A)] below, and

(b)has or may have possession of or access to any information about any matter that is relevant for any one or more of the purposes mentioned in section 109A(2) above,

may, by written notice, require that person to provide all such information described in the notice as is information of which he has possession, or to which he has access, and which it is reasonable for the authorised officer to require for a purpose so mentioned.

(2)The persons who fall within this subsection are—

(a)any person who is or has been an employer or employee within the meaning of any provision made by or under the Contributions and Benefits Act;

(b)any person who is or has been a self-employed earner within the meaning of any such provision;

(c)any person who by virtue of any provision made by or under that Act falls, or has fallen, to be treated for the purposes of any such provision as a person within paragraph (a) or (b) above;

(d)any person who is carrying on, or has carried on, any business involving the supply of goods for sale to the ultimate consumers by individuals not carrying on retail businesses from retail premises;

(e)any person who is carrying on, or has carried on, any business involving the supply of goods or services by the use of work done or services performed by persons other than employees of his;

(f)any person who is carrying on, or has carried on, an agency or other business for the introduction or supply, to persons requiring them, of persons available to do work or to perform services;

(g)any local authority acting in their capacity as an authority responsible for the granting of any licence;

(h)any person who is or has been a trustee or manager of a personal or occupational pension scheme;

(i)any person who is or has been liable to make a compensation payment or a payment to the Secretary of State under section 6 of the Social Security (Recovery of Benefits) Act 1997 (payments in respect of recoverable benefits);

[F4(ia)a person of a prescribed description;] and

(j)the servants and agents of any such person as is specified in any of paragraphs (a) to [F5(ia)] above.

[F6(2A)The persons who fall within this subsection are—

(a)any bank;

[F7(aa)the Director of National Savings;]

(b)any person carrying on a business the whole or a significant part of which consists in the provision of credit (whether secured or unsecured) to members of the public;

[F8(c)any insurer;]

(d)any credit reference agency (within the meaning given by section 145(8) of the Consumer Credit Act 1974 (c. 39));

(e)any body the principal activity of which is to facilitate the exchange of information for the purpose of preventing or detecting fraud;

(f)any person carrying on a business the whole or a significant part of which consists in the provision to members of the public of a service for transferring money from place to place;

(g)any water undertaker or sewerage undertaker, [F9Scottish Water or any local authority which is to collect charges by virtue of an order under section 37 of the Water Industry (Scotland) Act 2002 (asp 3)];

[F10(h)any person who—

(i)is the holder of a licence under section 7 of the Gas Act 1986 (c. 44) to convey gas through pipes, or

(ii)is the holder of a licence under section 7A(1) of that Act to supply gas through pipes;]

[F11(i)any person who (within the meaning of the Electricity Act 1989 (c. 29)) distributes or supplies electricity;]

F12(j). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(k)any person conducting any educational establishment or institution;

(l)any body the principal activity of which is to provide services in connection with admissions to educational establishments or institutions;

(m)the Student Loans Company;

(n)any servant or agent of any person mentioned in any of the preceding paragraphs.

(2B)Subject to the following provisions of this section, the powers conferred by this section on an authorised officer to require information from any person by virtue of his falling within subsection (2A) above shall be exercisable for the purpose only of obtaining information relating to a particular person identified (by name or description) by the officer.

(2C)An authorised officer shall not, in exercise of those powers, require any information from any person by virtue of his falling within subsection (2A) above unless it appears to that officer that there are reasonable grounds for believing that the identified person to whom it relates is—

(a)a person who has committed, is committing or intends to commit a benefit offence; or

(b)a person who (within the meaning of Part 7 of the Contributions and Benefits Act) is a member of the family of a person falling within paragraph (a) above.

(2D)Nothing in subsection (2B) or (2C) above shall prevent an authorised officer who is an official of a Government department and whose authorisation states that his authorisation applies for the purposes of this subsection from exercising the powers conferred by this section for obtaining from—

(a)a water undertaker or [F13Scottish Water,]

(b)any person who (within the meaning the Gas Act 1986) supplies gas conveyed through pipes,

(c)any person who (within the meaning of the Electricity Act 1989) supplies electricity conveyed by distribution systems, or

(d)any servant or agent of a person mentioned in any of the preceding paragraphs,

any information which relates exclusively to whether and in what quantities water, gas or electricity are being or have been supplied to residential premises specified or described in the notice by which the information is required.

(2E)The powers conferred by this section shall not be exercisable [F14so as to secure the disclosure by a telecommunications operator or postal operator of communications data without the consent of the operator.]]

F15(2F). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)The obligation of a person to provide information in accordance with a notice under this section shall be discharged only by the provision of that information, at such reasonable time and in such form as may be specified in the notice, to the authorised officer who—

(a)is identified by or in accordance with the terms of the notice; or

(b)has been identified, since the giving of the notice, by a further written notice given by the authorised officer who imposed the original requirement or another authorised officer.

(4)The power of an authorised officer under this section to require the provision of information shall include a power to require the production and delivery up and (if necessary) creation of, or of copies of or extracts from, any such documents containing the information as may be specified or described in the notice imposing the requirement.

[F16(5)No one shall be required under this section to provide—

(a)any information that tends to incriminate either himself or, in the case of a person who is [F17married or is a civil partner, his spouse or civil partner]; or

(b)any information in respect of which a claim to legal professional privilege or, in Scotland, confidentiality as between client and professional legal adviser, would be successful in any proceedings;

and for the purposes of this subsection it is immaterial whether the information is in documentary form or not.]

[F18(6)Provision may be made by order—

(a)adding any person to the list of persons falling within subsection (2A) above;

(b)removing any person from the list of persons falling within that subsection;

(c)modifying that subsection for the purpose of taking account of any change to the name of any person for the time being falling within that subsection.

(7)In this section—

  • [F19“bank” means—

    (a)

    a person who has permission under [F20Part 4A] of the Financial Services and Markets Act 2000 (c. 8) to accept deposits;

    (b)

    F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or

    (c)

    a person who does not require permission under that Act to accept deposits, in the course of his business in the United Kingdom;]

  • [F22“communications data” has the same meaning as in the Investigatory Powers Act 2016 (see sections 261 and 262 of that Act);]

  • “credit” includes a cash loan or any form of financial accommodation, including the cashing of a cheque;

  • [F23“insurer” means—

    (a)

    a person who has permission under [F20Part 4A] of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance; F24...

    (b)

    F24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]

  • [F25“postal operator” has the same meaning as in the Investigatory Powers Act 2016 (see section 262 of that Act);]

  • “residential premises”, in relation to a supply of water, gas or electricity, means any premises which—

    (a)

    at the time of the supply were premises occupied wholly or partly for residential purposes, or

    (b)

    are premises to which that supply was provided as if they were so occupied; and

  • [F26“telecommunications operator” has the same meaning as in the Investigatory Powers Act 2016 (see section 261 of that Act).]]

[F27(7A)The definitions of “bank” and “insurer” in subsection (7) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.]]

Textual Amendments

F3Words in s. 109B(1)(a) inserted (30.4.2002) by Social Security Fraud Act 2001 (c. 11), ss. 1(2), 20(1); S.I. 2002/1222, art. 2(a)

F4S. 109B(2)(ia) inserted (17.6.2013 for specified purposes, 1.10.2013 in so far as not already in force) by Welfare Reform Act 2012 (c. 5), ss. 110(a), 150(3); S.I. 2013/1250, art. 3

F5Word in s. 109B(2)(j) inserted (17.6.2013 for specified purposes, 1.10.2013 in so far as not already in force) by Welfare Reform Act 2012 (c. 5), ss. 110(b), 150(3); S.I. 2013/1250, art. 3

F20Words in s. 109B(7) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 74(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

[F28109BAPower of Secretary of State to require electronic access to informationU.K.

(1)Subject to subsection (2) below, where it appears to the Secretary of State-

(a)that a person falling within section 109B(2A) keeps any electronic records,

(b)that the records contain or are likely, from time to time, to contain information about any matter that is relevant for any one or more of the purposes mentioned in section 109A(2) above, and

(c)that facilities exist under which electronic access to those records is being provided, or is capable of being provided, by that person to other persons,

the Secretary of State may require that person to enter into arrangements under which authorised officers are allowed such access to those records.

(2)An authorised officer—

(a)shall be entitled to obtain information in accordance with arrangements entered into under subsection (1) above only if his authorisation states that his authorisation applies for the purposes of that subsection; and

(b)shall not seek to obtain any information in accordance with any such arrangements other than information which relates to a particular person and could be the subject of a requirement under section 109B above.

(3)The matters that may be included in the arrangements that a person is required to enter into under subsection (1) above may include-

(a)requirements as to the electronic access to records that is to be made available to authorised officers;

(b)requirements as to the keeping of records of the use that is made of the arrangements;

(c)requirements restricting the disclosure of information about the use that is made of the arrangements; and

(d)such other incidental requirements as the Secretary of State considers appropriate in connection with allowing access to records to authorised officers.

(4)An authorised officer who is allowed access in accordance with any arrangements entered into under subsection (1) above shall be entitled to make copies of, and to take extracts from, any records containing information which he is entitled to require under section 109B.]

Textual Amendments

[F1109CPowers of entryU.K.

(1)An authorised officer shall be entitled, at any reasonable time and either alone or accompanied by such other persons as he thinks fit, to enter any premises which—

(a)are liable to inspection under this section; and

(b)are premises to which it is reasonable for him to require entry in order to exercise the powers conferred by this section.

(2)An authorised officer who has entered any premises liable to inspection under this section may—

(a)make such an examination of those premises, and

(b)conduct any such inquiry there,

as appears to him appropriate for any one or more of the purposes mentioned in section 109A(2) above.

(3)An authorised officer who has entered any premises liable to inspection under this section may—

(a)question any person whom he finds there;

(b)require any person whom he finds there to do any one or more of the following—

(i)to provide him with such information,

(ii)to produce and deliver up and (if necessary) create such documents or such copies of, or extracts from, documents,

as he may reasonably require for any one or more of the purposes mentioned in section 109A(2) above; and

(c)take possession of and either remove or make his own copies of any such documents as appear to him to contain information that is relevant for any of those purposes.

(4)The premises liable to inspection under this section are any premises (including premises consisting in the whole or a part of a dwelling house) which an authorised officer has reasonable grounds for suspecting are—

(a)premises which are a person's place of employment;

(b)premises from which a trade or business is being carried on or where documents relating to a trade or business are kept by the person carrying it on or by another person on his behalf;

(c)premises from which a personal or occupational pension scheme is being administered or where documents relating to the administration of such a scheme are kept by the person administering the scheme or by another person on his behalf;

(d)premises where a person who is the compensator in relation to any such accident, injury or disease as is referred to in section 109A(2)(b) above is to be found;

(e)premises where a person on whose behalf any such compensator has made, may have made or may make a compensation payment is to be found.

(5)An authorised officer applying for admission to any premises in accordance with this section shall, if required to do so, produce the certificate containing his authorisation for the purposes of this Part.

[F29(6)Subsections (2E) and (5) of section 109B apply for the purposes of this section as they apply for the purposes of that section.]]

Textual Amendments

F30110Appointment and powers of inspectorsU.K.

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

Textual Amendments

[F31110ZAClass 1, 1A, 1B or 2 contributions: powers to call for documents etcU.K.

[F32(1)Schedule 36 to the Finance Act 2008 (information and inspection powers) applies for the purpose of checking a person's position as regards relevant contributions as it applies for the purpose of checking a person's tax position, subject to the modifications in subsection (2).

(2)That Schedule applies as if—

(a)references to any provision of the Taxes Acts were to any provision of this Act or the Contributions and Benefits Act [F33or the National Insurance Contributions Act 2014] relating to relevant contributions,

(b)references to prejudice to the assessment or collection of tax were to prejudice to the assessment of liability for, and payment of, relevant contributions,

(c)the reference to information relating to the conduct of a pending appeal relating to tax were a reference to information relating to the conduct of a pending appeal relating to relevant contributions, and

(d)paragraphs 21 [F34, 21A], [F3535(4A)(c), 36, 37(2) [F36and (2A)], 37A and 37B] of that Schedule (restrictions on giving taxpayer notice where taxpayer has made tax return) were omitted.]

[F37(2A)Part 3 of Schedule 38 to the Finance Act 2012 (power to obtain tax agent's files etc) applies in relation to relevant contributions as in relation to tax and, accordingly—

(a)the cases described in paragraph 7 of that Schedule (case A and case B) include cases involving conduct or an offence relating to relevant contributions,

(b)(whether the case involves conduct or an offence relating to tax or relevant contributions) the papers and other documents that may be sought under that Part include ones relating to relevant contributions, and

(c)the other Parts of that Schedule apply so far as necessary to give effect to the application of Part 3 by virtue of this subsection.]

(3)In this section “relevant contributions” means Class 1, Class 1A, Class 1B or Class 2 contributions.]

Textual Amendments

F32S. 110ZA(1)(2) substituted (1.4.2009) by Finance Act 2008 (c. 9), s. 113(2), Sch. 36 para. 84 (with Sch. 36 para. 38); S.I. 2009/404, art. 2 (with art. 9)

F37S. 110ZA(2A) inserted (1.4.2013) by Finance Act 2012 (c. 14), Sch. 38 para. 56; S.I. 2013/279, art. 2

[F38110AAuthorisations by local authoritiesU.K.

[F39(1)An individual who for the time being has the authorisation for the purposes of this Part of an authority administering housing benefit or council tax benefit (“a local authority authorisation”) shall be entitled, for [F40a relevant purpose], to exercise any of the powers which, subject to subsection (8) below, are conferred on an authorised officer by sections 109B and 109C above.

[F41(1A)Each of the following is a relevant purpose—

(a)a purpose mentioned in subsection (2) below;

(b)a purpose mentioned in section 109A(2)(a), (c) or (d).

(1B)If the Secretary of State prescribes conditions for the purposes of this section, an authority must not proceed under this section for a purpose mentioned in section 109A(2)(a), (c) or (d) unless any such condition is satisfied.

(1C)An authorisation made for a purpose mentioned in section 109A(2)(a), (c) or (d)—

(a)is subject to such restrictions as may be prescribed;

(b)is not valid in such circumstances as may be prescribed.]

(2)[F42The purposes in this subsection] are—

(a)ascertaining in relation to any case whether housing benefit or council tax benefit is or was payable in that case;

(b)ascertaining whether provisions of the relevant social security legislation that relate to housing benefit or council tax benefit are being, have been or are likely to be contravened (whether by particular persons or more generally);

(c)preventing, detecting and securing evidence of the commission (whether by particular persons or more generally) of benefit offences relating to housing benefit or council tax benefit.

(3)An individual has the authorisation for the purposes of this Part of an authority administering housing benefit or council tax benefit if, and only if, that authority have granted him an authorisation for those purposes and he is—

(a)an individual employed by that authority;

(b)an individual employed by another authority or joint committee that carries out functions relating to housing benefit or council tax benefit on behalf of that authority;

(c)an individual employed by a person authorised by or on behalf of—

(i)the authority in question,

(ii)any such authority or joint committee as is mentioned in paragraph (b) above,

to carry out functions relating to housing benefit or council tax benefit for that authority or committee;

(d)an official of a Government department.

(4)Subsection (4) of section 109A above shall apply in relation to a local authority authorisation as it applies in relation to an authorisation under that section.

(5)A local authority authorisation may be withdrawn at any time by the authority that granted it or by the Secretary of State.

(6)The certificate or other instrument containing the grant or withdrawal by any local authority of any local authority authorisation must be issued under the hand of either—

(a)the officer designated under section 4 of the Local Government and Housing Act 1989 as the head of the authority's paid service; or

(b)the officer who is the authority's chief finance officer (within the meaning of section 5 of that Act).

(7)It shall be the duty of any authority with power to grant local authority authorisations to comply with any directions of the Secretary of State as to—

(a)whether or not such authorisations are to be granted by that authority;

(b)the period for which authorisations granted by that authority are to have effect;

(c)the number of persons who may be granted authorisations by that authority at any one time; and

(d)the restrictions to be contained by virtue of subsection (4) above in the authorisations granted by that authority for those purposes.

(8)The powers conferred by sections 109B and 109C above shall have effect in the case of an individual who is an authorised officer by virtue of this section as if those sections had effect—

(a)with the substitution for every reference to the purposes mentioned in section 109A(2) above of a reference to the purposes mentioned in subsection (2) above; F43...

(b)with the substitution for every reference to the relevant social security legislation of a reference to so much of it as relates to housing benefit or council tax benefit [F44; and

(c)with the omission of section 109B(2D).]

[F45but paragraphs (a) and (b) above do not apply in any case where the relevant purpose is as mentioned in subsection (1A)(b) above.]

(9)Nothing in this section conferring any power on an authorised officer in relation to housing benefit or council tax benefit shall require that power to be exercised only in relation to cases in which the authority administering the benefit is the authority by whom that officer's authorisation was granted.]]

Textual Amendments

F39S. 110A repealed (1.4.2013 in so far as relates to the abolition of council tax benefit) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 14 Pt. 1; S.I. 2013/358, art. 8(c), Sch. 4 (with arts. 9, 10, Sch. 5)

F40Words in s. 110A(1) substituted (19.2.2008 for specified purposes, 7.4.2008 in so far as not already in force) by Welfare Reform Act 2007 (c. 5), ss. 46(2), 70(2); S.I. 2008/411, art. 2(4)(a)(5)

F41S. 110A(1A)-(1C) inserted (19.2.2008 for specified purposes, 7.4.2008 in so far as not already in force) by Welfare Reform Act 2007 (c. 5), ss. 46(3), 70(2); S.I. 2008/411, art. 2(4)(a)(5)

F42Words in s. 110A(2) substituted (19.2.2008 for specified purposes, 7.4.2008 in so far as not already in force) by Welfare Reform Act 2007 (c. 5), ss. 46(4), 70(2); S.I. 2008/411, art. 2(4)(a)(5)

F43Word in s. 110A(8) repealed (30.4.2002) by Social Security Fraud Act 2001 (c. 11), s. 20(1), Sch.; S.I. 2002/1222, art. 2(i)

F44S. 110A(8)(c) and preceding word inserted (30.4.2002) by Social Security Fraud Act 2001 (c. 11), ss. 1(5), 20(1); S.I. 2002/1222, art. 2(a)

F45Words in s. 110A(8) inserted (19.2.2008 for specified purposes, 7.4.2008 in so far as not already in force) by Welfare Reform Act 2007 (c. 5), ss. 46(5), 70(2); S.I. 2008/411, art. 2(4)(a)(5)

[F46110AAPower of local authority to require electronic access to informationU.K.

[F47(1)Subject to subsection (2) below, where it appears to an authority administering housing benefit or council tax benefit-

(a)that a person falling within section 109B(2A) keeps any electronic records,

(b)that the records contain or are likely, from time to time, to contain information about any matter that is relevant for any one or more of the purposes mentioned in section 110A(2) above, and

(c)that facilities exist under which electronic access to those records is being provided, or is capable of being provided, by that person to other persons,

that authority may require that person to enter into arrangements under which authorised officers are allowed such access to those records.

(2)An authorised officer—

(a)shall be entitled to obtain information in accordance with arrangements entered into under subsection (1) above only if his authorisation states that his authorisation applies for the purposes of that subsection; and

(b)shall not seek to obtain any information in accordance with any such arrangements other than information which—

(i)relates to a particular person; and

(ii)could be the subject of any such requirement under section 109B above as may be imposed in exercise of the powers conferred by section 110A(8) above.

(3)The matters that may be included in the arrangements that a person is required to enter into under subsection (1) above may include—

(a)requirements as to the electronic access to records that is to be made available to authorised officers;

(b)requirements as to the keeping of records of the use that is made of the arrangements;

(c)requirements restricting the disclosure of information about the use that is made of the arrangements; and

(d)such other incidental requirements as the authority in question considers appropriate in connection with allowing access to records to authorised officers.

(4)An authorised officer who is allowed access in accordance with any arrangements entered into under subsection (1) above shall be entitled to make copies of, and to take extracts from, any records containing information which he is entitled to make the subject of a requirement such as is mentioned in subsection (2)(b) above.

(5)An authority administering housing benefit or council tax benefit shall not-

(a)require any person to enter into arrangements for allowing authorised officers to have electronic access to any records; or

(b)otherwise than in pursuance of a requirement under this section, enter into any arrangements with a person specified in section 109B(2A) above for allowing anyone acting on behalf of the authority for purposes connected with any benefit to have electronic access to any private information contained in any records,

except with the consent of the Secretary of State and subject to any conditions imposed by the Secretary of State by the provisions of the consent.

(6)A consent for the purposes of subsection (5) may be given in relation to a particular case, or in relation to any case that falls within a particular description of cases.

(7)In this section “private information”, in relation to an authority administering housing benefit or council tax benefit, means any information held by a person who is not entitled to disclose it to that authority except in compliance with a requirement imposed by the authority in exercise of their statutory powers.]]

Textual Amendments

F47S. 110AA repealed (1.4.2013 in so far as relates to the abolition of council tax benefit) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 14 Pt. 1; S.I. 2013/358, art. 8(c), Sch. 4 (with arts. 9, 10, Sch. 5)

F48110BPowers of inspectors appointed under section 110A.U.K.

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

Textual Amendments

111Delay, obstruction etc. of inspectorU.K.

(1)If a person—

(a)intentionally delays or obstructs an [F49authorised officer] in the exercise of any power under this Act [F50other than an Inland Revenue Power];

[F51(ab)refuses or neglects to comply with any requirement under section109BA [F52or 110AA] or with the requirements of any arrangements entered into in accordance with subsection (1) of that section, or]

(b)refuses or neglects to answer any question or to furnish any information or to produce any document when required to do so under this Act [F53otherwise than in the exercise of an Inland Revenue Power],

he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(2)Where a person is convicted of an offence under [F54subsection (1)(ab) or (b)] above and the refusal or neglect is continued by him after his conviction, he shall be guilty of a further offence and liable on summary conviction to a fine not exceeding £40 for each day on which it is continued.

[F55(3)In subsection (1) “Inland Revenue power” means any power conferred on an officer of the Inland Revenue by [F56virtue of] section 110ZA above or by virtue of [F57an authorisation granted under section 109A [F58or 110A]] above.]

F59(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F49Words in s. 111(1)(a) substituted (30.4.2002) by Social Security Fraud Act 2001 (c. 11), ss. 1(6), 20(1); S.I. 2002/1222, art. 2(a)

F52Words in s. 111(1)(ab) repealed (1.4.2013 in so far as relates to the abolition of council tax benefit) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 14 Pt. 1; S.I. 2013/358, art. 8(c), Sch. 4 (with arts. 9, 10, Sch. 5)

F54Words in s. 111(2) substituted (30.4.2002) by Social Security Fraud Act 2001 (c. 11), ss. 2(3)(b), 20(1); S.I. 2002/1222, art. 2(b)

F58Words in s. 111(3) repealed (1.4.2013 in so far as relates to the abolition of council tax benefit) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 14 Pt. 1; S.I. 2013/358, art. 8(c), Sch. 4 (with arts. 9, 10, Sch. 5)

Modifications etc. (not altering text)

C1S. 111 applied (with modifications) by The Welfare Food Regulations 1996 (S.I. 1996/1434), regs. 1, 22(1), Sch. 6 (as amended (28.11.2005) by S.I. 2005/3262, regs. 1, 16(d)(i)(e)(i))

[F60111ADishonest representation for obtaining benefit etcU.K.

(1)If a person dishonestly—

(a)makes a false statement or representation; [F61or]

(b)produces or furnishes, or causes or allows to be produced or furnished, any document or information which is false in a material particular;

F62(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F62(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

with the view to obtaining any benefit or other payment or advantage under the [F63relevant] social security legislation (whether for himself or for some other person), he shall be guilty of an offence.

[F64(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.]

F65(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)A person guilty of an offence under this section shall be liable—

(a)on summary conviction, to imprisonment for a term not exceeding six months, or to a fine not exceeding the statutory maximum, or to both; or

(b)on conviction on indictment, to imprisonment for a term not exceeding seven years, or to a fine, or to both.

(4)In the application of this section to Scotland in [F66subsections (1) to (1E)] for “dishonestly” substitute “knowingly”.]

Textual Amendments

F61Word in s. 111A(1)(a) inserted (26.9.2001 for specified purposes, 18.10.2001 in so far as not already in force) by Social Security Fraud Act 2001 (c. 11), ss. 16(1)(a), 20(1); S.I. 2001/3251, art. 2(1)

F62S. 111A(1)(c)(d) repealed (26.9.2001 for specified purposes, 18.10.2001 in so far as not already in force) by Social Security Fraud Act 2001 (c. 11), ss. 16(1)(a), 20(1), Sch.; S.I. 2001/3251, art. 2(1)

F64S. 111A(1A)-(1G) inserted (26.9.2001 for specified purposes, 18.10.2001 in so far as not already in force) by Social Security Fraud Act 2001 (c. 11), ss. 16(1)(b)(2), 20(1); S.I. 2001/3251, art. 2(1)

F66Word in s. 111A(4) substituted (26.9.2001 for specified purposes, 18.10.2001 in so far as not already in force) by Social Security Fraud Act 2001 (c. 11), ss. 16(1)(c), 20(1); S.I. 2001/3251, art. 2(1)

112False representations for obtaining benefit etcU.K.

(1)If a person for the purpose of obtaining any benefit or other payment under the [F67relevant] [F68social security legislation] whether for himself or some other person, or for any other purpose connected with that legislation—

(a)makes a statement or representation which he knows to be false; or

(b)produces or furnishes or knowingly causes or knowingly allows to be produced or furnished, any document or information which he knows to be false in a material particular,

he shall be guilty of an offence.

[F69(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.]

(2)A person guilty of an offence under [F70this section] shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale, or to imprisonment for a term not exceeding 3 months, or to both.

F71(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F69S. 112(1A)-(1F) substituted for s. 112(1A) (26.9.2001 for specified purposes, 18.10.2001 in so far as not already in force) by Social Security Fraud Act 2001 (c. 11), ss. 16(3), 20(1); S.I. 2001/3251, art. 2(1)

Modifications etc. (not altering text)

C2S. 112 applied (with modifications) by The Welfare Food Regulations 1996 (S.I. 1996/1434), regs. 1, 22(1), Sch. 6 (as amended (28.11.2005) by S.I. 2005/3262, regs. 1, 16(d)(i)(e)(ii))

C3S. 112 applied (with modifications) (12.8.2019) by The Welfare Foods (Best Start Foods) (Scotland) Regulations 2019 (S.S.I. 2019/193), regs. 1(2), 17 (as amended by S.S.I. 2019/232, regs. 1, 4)

[F72113Breach of regulationsU.K.

(1)Regulations and schemes under any of the [F73legislation to which this section applies] may provide that any person who contravenes, or fails to comply with, any provision contained in regulations made under [F73that legislation]—

(a)in the case of a provision relating to contributions, shall be liable to a penalty;

(b)in any other case, shall be guilty of an offence under [F73any enactment contained in the legislation in question].

[F74(1A)The legislation to which this section applies is—

(a)the relevant social security legislation; and

(b)the enactments specified in section 121DA(1) so far as relating to contributions F75... ]

(2)Any regulations or scheme making such provision as is mentioned in subsection (1)(a) above shall—

(a)prescribe the amount or rate of penalty, or provide for how it is to be ascertained;

(b)provide for the penalty to be imposed by the [F76Inland Revenue]—

(i)within six years after the date on which the penalty is incurred; or

(ii)where the amount of the penalty is to be ascertained by reference to the amount of any contributions payable, at any later time within three years after the final determination of the amount of those contributions;

(c)provide for determining the date on which, for the purposes of paragraph (b) above, the penalty is incurred;

(d)prescribe the means by which the penalty is to be enforced; and

(e)provide for enabling the [F76Inland Revenue], in [F76their] discretion, to mitigate or to remit any such penalty, or to stay or to compound any proceedings for a penalty.

(3)A person guilty of such an offence as is mentioned in subsection (1)(b) above shall be liable on summary conviction—

(a)to a fine not exceeding level 3 on the standard scale;

(b)in the case of an offence of continuing a contravention or failure after conviction, to a fine not exceeding £40 for each day on which it is so continued.

(4)Any provision contained in regulations which authorises statutory sick pay or statutory maternity pay to be set off against secondary Class 1 contributions is not a provision relating to contributions for the purposes of this section.]

Textual Amendments

F72S. 113 substituted (4.3.1999 for specified purposes, 6.4.1999 in so far as not already in force) by Social Security Act 1998 (c. 14), ss. 60, 87(2); S.I. 1999/526, art. 2(2)(d)

Modifications etc. (not altering text)

C5S. 113 applied (with modifications) by The Welfare Food Regulations 1996 (S.I. 1996/1434), regs. 1, 22(1), Sch. 6

C6S. 113 applied (with modifications) (12.8.2019) by The Welfare Foods (Best Start Foods) (Scotland) Regulations 2019 (S.S.I. 2019/193), regs. 1(2), 17, 18 (as amended by S.S.I. 2019/232, regs. 1, 4, 5)

[F77113AStatutory sick pay and statutory maternity pay: breach of regulationsU.K.

(1)Where a person fails to produce any document or record, or provide any information, in accordance with—

(a)regulations under section 5(1)(i) and (5), so far as relating to statutory sick pay or statutory maternity pay,

(b)regulations under section 130 or 132, or

(c)regulations under section 153(5)(b) of the Contributions and Benefits Act,

that person is liable to the penalties mentioned in subsection (2).

(2)The penalties are—

(a)a penalty not exceeding £300, and

(b)if the failure continues after a penalty is imposed under paragraph (a), a further penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which the penalty under that paragraph was imposed (but excluding any day for which a penalty under this paragraph has already been imposed).

(3)Where a person fails to maintain a record in accordance with regulations under section 130 or 132, he is liable to a penalty not exceeding £3,000.

(4)No penalty may be imposed under subsection (1) at any time after the failure concerned has been remedied.

(5)But subsection (4) does not apply to the imposition of a penalty under subsection (2)(a) in respect of a failure to produce any document or record in accordance with regulations under section 130(5) or 132(4).

(6)Where, in the case of any employee, an employer refuses or repeatedly fails to make payments of statutory sick pay or statutory maternity pay in accordance with any regulations under section 5, the employer is liable to a penalty not exceeding £3,000.

(7)Section 118(2) of the Taxes Management Act 1970 (extra time for compliance etc) applies for the purposes of subsections (1), (3) and (6) as it applies for the purposes of that Act.

(8)Schedule 1 to the Employment Act 2002 (penalties relating to statutory paternity pay and statutory adoption pay: procedures and appeals) applies in relation to penalties imposed under this section (with the modifications set out in subsection (9)).

(9)That Schedule applies as if—

(a)references to a penalty under section 11 or 12 of that Act were to a penalty under this section,

(b)in paragraph 1(2), the reference to section 11(2)(a) of that Act were to subsection (2)(a) of this section, and

(c)the provisions of the Taxes Management Act 1970 having effect in relation to an appeal mentioned in paragraph 3(2) of that Schedule did not include section 50(9) of that Act.]

Textual Amendments

[F77113BStatutory sick pay and statutory maternity pay: fraud and negligenceU.K.

(1)Where a person fraudulently or negligently—

(a)makes any incorrect statement or declaration in connection with establishing entitlement to statutory sick pay or statutory maternity pay, or

(b)produces any incorrect document or record or provides any incorrect information of a kind mentioned in—

(i)regulations under section 5(1)(i) and (5), so far as relating to statutory sick pay or statutory maternity pay,

(ii)regulations under section 130 or 132, or

(iii)regulations under section 153(5)(b) of the Contributions and Benefits Act,

he is liable to a penalty not exceeding £3,000.

(2)Where an employer fraudulently or negligently makes an incorrect payment of statutory sick pay or statutory maternity pay, he is liable to a penalty not exceeding £3,000.

(3)Where an employer fraudulently or negligently receives an overpayment in pursuance of regulations under section 167 of the Contributions and Benefits Act (statutory maternity pay: advance payments to employers), he is liable to a penalty not exceeding £3,000.

(4)Schedule 1 to the Employment Act 2002 (penalties relating to statutory paternity pay and statutory adoption pay: procedures and appeals) applies in relation to penalties imposed under this section (with the modifications set out in subsection (5)).

(5)That Schedule applies as if—

(a)references to a penalty under section 11 or 12 of that Act were to a penalty under this section, and

(b)the provisions of the Taxes Management Act 1970 having effect in relation to an appeal mentioned in paragraph 3(2) of that Schedule did not include section 50(9) of that Act.]

Textual Amendments

[F78113CHealth in pregnancy grant: civil penalty for fraud, etc.U.K.

Schedule 3A (health in pregnancy grant: civil penalty for fraud, etc.) has effect.]

Textual Amendments

F78S. 113C inserted (21.7.2008 for specified purposes, 1.1.2009 in so far as not already in force) by Health and Social Care Act 2008 (c. 14), ss. 133(1), 170; S.I. 2008/3137, art. 2

[F79114Offences relating to contributionsU.K.

(1)Any person who is knowingly concerned in the fraudulent evasion of any contributions which he or any other person is liable to pay shall be guilty of an offence.

(2)A person guilty of an offence under this section shall be liable—

(a)on conviction on indictment, to imprisonment for a term not exceeding seven years or to a fine or to both;

(b)on summary conviction, to a fine not exceeding the statutory maximum.]

Textual Amendments

F79Ss. 114, 114A substituted for s. 114 (4.3.1999 for specified purposes, 6.4.1999 for specified purposes) by Social Security Act 1998 (c. 14), ss. 61, 87(2); S.I. 1999/526, art. 2(2)(e)

F80114APenalties relating to contributionsU.K.

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

Textual Amendments

115

(1)Where an offence under this Act[F81, or under the Jobseekers Act 1995,] which has been committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, he, as well as the body corporate, shall be guilty of that offence and be liable to be proceeded against accordingly.

(2)Where the affairs of a body corporate are managed by its members, subsection (1) above applies in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.

Textual Amendments

F81Words in s. 115(1) inserted (11.6.1996) by Jobseekers Act 1995 (c. 18), s. 41(2), Sch. 2 para. 55; S.I. 1996/1509, art. 2, Sch.

Modifications etc. (not altering text)

C8S. 115 applied (with modifications) by The Welfare Food Regulations 1996 (S.I. 1996/1434), regs. 1, 22(1), Sch. 6

[F82115APenalty as alternative to prosecutionU.K.

(1)This section applies where an overpayment is recoverable from a person by, or due from a person to, the Secretary of State [F83or an authority] under or by virtue of section 71, [F8471ZB] [F8371A, 75 or 76] above and it appears to the Secretary of State [F83or authority] that—

(a)the making of the overpayment was attributable to an act or omission on the part of that person; and

(b)there are grounds for instituting against him proceedings for an offence (under this Act or any other enactment) relating to the overpayment.

[F85(1A)This section also applies where —

(a)it appears to the Secretary of State [F83or 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 [F83or an authority] under or by virtue of section 71, 71ZB, [F8371A, 75 or 76] above.]

(2)The Secretary of State [F86or authority] may give the person a written notice—

(a)stating that he may be invited to agree to pay a penalty and that, if he does so in the manner specified by the Secretary of State [F86or authority], no [F87proceedings referred to in subsection (1) or (1A) above] will be instituted against him; and

(b)containing such information relating to the operation of this section as may be prescribed.

[F88(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 [F89£5000].

(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).]

(4)If the person agrees in the specified manner to pay the penalty—

(a)the amount of the penalty shall be recoverable by the same methods as those by which the overpayment is [F90or would have been] recoverable; and

(b)no proceedings will be instituted against him for an offence (under this Act or any other enactment) relating to the overpayment [F91or to the act or omission referred to in subsection (1A)(a).]

(5)The person may withdraw his agreement to pay the penalty by notifying the Secretary of State [F92or authority] in the manner specified by the Secretary of State [F92or authority], at any time during the period of [F9314] days beginning with the day on which he agrees to pay it; and if he does so—

(a)so much of the penalty as has already been recovered shall be repaid; and

(b)subsection (4)(b) above shall not apply.

(6)[F94In a case referred to in subsection (1)] where, after the person has agreed to pay the penalty, it is decided on a review or appeal or in accordance with regulations that the overpayment is not recoverable or due so much of the penalty as has already been recovered shall be repaid.

(7)[F94In a case referred to in subsection (1)] where, after the person has agreed to pay the penalty, the amount of the overpayment is revised on a review or appeal or in accordance with regulations—

(a)so much of the penalty as has already been recovered shall be repaid; and

(b)subsection (4)(b) above shall no longer apply by reason of the agreement;

but if a new agreement is made under this section in relation to the revised overpayment, the amount already recovered by way of penalty, to the extent that it does not exceed the amount of the new penalty, may be treated as recovered under the new agreement instead of being repaid.

[F95(7A)[F96Subject to subsection (7B) below, the Secretary of State and an authority which administers housing benefit or council tax benefit may agree that, to the extent determined by the agreement, one may carry out on the other's behalf, or may join in the carrying out of, any of the other's functions under this section.]

(7B)[F96Subsection (7A) above shall not authorise any delegation of—

(a)the function of the person by whom any overpayment is [F97or would have been] recoverable, or to whom it is [F97or would have been] due, of determining whether or not a notice should be given under subsection (2) above in respect of that overpayment; or

(b)the Secretary of State's power to make regulations for the purposes of paragraph (b) of that subsection.]]

(8)In this section “overpayment” means—

(a)a payment which should not have been made;

(b)a sum which the Secretary of State should have received;

(c)an amount of benefit paid in excess of entitlement; or

(d)an amount equal to an excess of benefit allowed;

and the reference in subsection (1)(a) [F98or (1A)(b)] above to the making of the overpayment is to the making of the payment, the failure to receive the sum, the payment of benefit in excess of entitlement or the allowing of an excess of benefit.]

Textual Amendments

F82S. 115A inserted (21.11.1997 for specified purposes, 18.12.1997 for all other purposes) by Social Security Administration (Fraud) Act 1997 (c. 47), ss. 15, 25(1) (with s. 25(7)); S.I. 1997/2766, art. 2(1)

F83Words in s. 115A(1)(1A) repealed (1.4.2013 in so far as relate to the abolition of council tax benefit) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 14 Pt. 1; S.I. 2013/358, art. 8(c), Sch. 4 (with arts. 9, 10, Sch. 5)

F86Words in s. 115A(2) repealed (1.4.2013 in so far as relate to the abolition of council tax benefit) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 14 Pt. 1; S.I. 2013/358, art. 8(c), Sch. 4 (with arts. 9, 10, Sch. 5)

F87Words in s. 115A(2)(a) substituted (8.5.2012) by Welfare Reform Act 2012 (c. 5), ss. 113(3), 150(3); S.I. 2012/863, art. 2(3)(a)

F88S. 115A(3)-(3B) substituted for s. 115A(3) (8.5.2012) by Welfare Reform Act 2012 (c. 5), ss. 114(1), 150(3); S.I. 2012/863, art. 2(3)(b)

F89Sum in s. 115A(3)(b) substituted (with effect only in relation to an act or omission referred to s. 115A(1)(a) which appears, to the Secretary of State or the authority mentioned in that subsection, to have occurred wholly on or after 1.4.2015) by The Social Security (Penalty as Alternative to Prosecution) (Maximum Amount) Order 2015 (S.I. 2015/202), arts. 1(1), 2 (with art. 1(3))

F90Words in s. 115A(4)(a) inserted (8.5.2012) by Welfare Reform Act 2012 (c. 5), ss. 113(4)(a), 150(3); S.I. 2012/863, art. 2(3)(a)

F91Words in s. 115A(4)(b) inserted (8.5.2012) by Welfare Reform Act 2012 (c. 5), ss. 113(4)(b), 150(3); S.I. 2012/863, art. 2(3)(a)

F92Words in s. 115A(5) repealed (1.4.2013 in so far as relate to the abolition of council tax benefit) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 14 Pt. 1; S.I. 2013/358, art. 8(c), Sch. 4 (with arts. 9, 10, Sch. 5)

F93Figure in s. 115A(5) substituted (8.5.2012) by Welfare Reform Act 2012 (c. 5), ss. 115(2), 150(3); S.I. 2012/863, art. 2(3)(c)

F94Words in s. 115A(6)(7) inserted (8.5.2012) by Welfare Reform Act 2012 (c. 5), ss. 113(5), 150(3); S.I. 2012/863, art. 2(3)(a)

F96S. 115A(7A)(7B) repealed (1.4.2013 in so far as relate to the abolition of council tax benefit) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 14 Pt. 1; S.I. 2013/358, art. 8(c), Sch. 4 (with arts. 9, 10, Sch. 5)

F97Words in s. 115A(7B)(a) inserted (8.5.2012) by Welfare Reform Act 2012 (c. 5), ss. 113(6), 150(3); S.I. 2012/863, art. 2(3)(a)

F98Words in s. 115A(8) inserted (8.5.2012) by Welfare Reform Act 2012 (c. 5), ss. 113(7), 150(3); S.I. 2012/863, art. 2(3)(a)

[F99115BPenalty as alternative to prosecution: colluding employers etcU.K.

(1)This section applies where it appears to the Secretary of State [F100or an authority that administers housing benefit or council tax benefit]—

(a)that there are grounds for instituting proceedings against any person ('the responsible person') for an offence (whether or not under this Act) in respect of any conduct; and

(b)that the conduct in respect of which there are grounds for instituting the proceedings is conduct falling within subsection (2) below.

(2)Conduct in respect of which there appear to be grounds for instituting proceedings falls within this subsection if—

(a)those proceedings would be for an offence under this Act in connection with an inquiry relating to the employment of relevant employees or of any one or more particular relevant employees; or

(b)it is conduct which was such as to facilitate the commission of a benefit offence by a relevant employee (whether or not such an offence was in fact committed).

(3)The Secretary of State [F101or authority] may give to the responsible person a written notice—

(a)specifying or describing the conduct in question;

(b)stating that he may be invited to agree to pay a penalty in respect of that conduct;

(c)stating that, if he does so in the manner specified by the Secretary of State [F101or authority], no criminal proceedings will be instituted against him in respect of that conduct; and

(d)containing such information relating to the operation of this section as may be prescribed.

[F102(4)If the recipient of a notice under subsection (3) above agrees, in the specified manner, to pay the penalty—

(a)the amount of the penalty shall be recoverable from the recipient by the Secretary of State [F103or authority]; and

(b)no criminal proceedings shall be instituted against the recipient in respect of the conduct to which the notice relates.

(4A)Sections 71ZC, 71ZD and 71ZE above apply in relation to amounts recoverable under subsection (4)(a) above as to amounts recoverable by the Secretary of State under section 71ZB above [F104(and, where the notice is given by an authority administering housing benefit or council tax benefit, those sections so apply as if references to the Secretary of State were to that authority)].]

(5)The amount of the penalty shall be—

(a)in a case in which the conduct in question falls within paragraph (a) of subsection (2) above but not within paragraph (b) of that subsection, £1,000;

(b)in a case in which that conduct falls within paragraph (b) of that subsection and the number of relevant employees by reference to whom it falls within that subsection is five or more, £5,000; and

(c)in any other case, the amount obtained by multiplying £1,000 by the number of relevant employees by reference to whom that conduct falls within that subsection.

(6)The responsible person may withdraw his agreement to pay a penalty under this section by notifying the Secretary of State [F105or authority], in the manner specified by the Secretary of State [F105or authority], at any time during the period of [F10614] days beginning with the day on which he agrees to pay it.

(7)Where the responsible person withdraws his agreement in accordance with subsection (6) above—

(a)so much of the penalty as has already been recovered shall be repaid; and

(b)subsection (4)(b) above shall not apply.

(8)For the purposes of this section an individual is a relevant employee in relation to any conduct of the responsible person if—

(a)that conduct was at or in relation to a time when that individual was an employee of the responsible person;

(b)that conduct was at or in relation to a time when that individual was an employee of a body corporate of which the responsible person is or has been a director; or

(c)the responsible person, in engaging in that conduct, was acting or purporting to act on behalf of, in the interests of or otherwise by reason of his connection with, any person by whom that individual is or has been employed.

(9)In this section—

  • “conduct” includes acts, omissions and statements;

  • “director”—

    (a)

    in relation to a company ([F107as defined in section 1(1) of the Companies Act 2006]), includes a shadow director;

    (b)

    in relation to any such company that is a subsidiary of another, includes any director orshadow director of the other company; and

    (c)

    in relation to a body corporate whose affairs are managed by its members, means a member of that body corporate;

  • “employee” means any person who—

    (a)

    is employed under a contract of service or apprenticeship, or in an office (including an elective office), or

    (b)

    carries out any work under any contract under which he has undertaken to provide his work, and “employment” shall be construed accordingly;

  • F108. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • “shadow director” means a shadow director as defined in [F109section 251 of the Companies Act 2006];

  • “subsidiary” means a subsidiary as defined in [F110section 1159 of the Companies Act 2006].]

Textual Amendments

F100Words in s. 115B(1) repealed (1.4.2013 in so far as relate to the abolition of council tax benefit) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 14 Pt. 1; S.I. 2013/358, art. 8(c), Sch. 4 (with arts. 9, 10, Sch. 5)

F101Words in s. 115B(3) repealed (1.4.2013 in so far as relate to the abolition of council tax benefit) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 14 Pt. 1; S.I. 2013/358, art. 8(c), Sch. 4 (with arts. 9, 10, Sch. 5)

F102S. 115B(4)(4A) substituted for s. 115B(4) (1.10.2012) by Welfare Reform Act 2012 (c. 5), ss. 105(4)(a), 150(3); S.I. 2012/1246, art. 2(5)(b)

F103Words in s. 115B(4)(a) repealed (1.4.2013 in so far as relate to the abolition of council tax benefit) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 14 Pt. 1; S.I. 2013/358, art. 8(c), Sch. 4 (with arts. 9, 10, Sch. 5)

F104Words in s. 115B(4A) repealed (1.4.2013 in so far as relate to the abolition of council tax benefit) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 14 Pt. 1; S.I. 2013/358, art. 8(c), Sch. 4 (with arts. 9, 10, Sch. 5)

F105Words in s. 115B(6) repealed (1.4.2013 in so far as relate to the abolition of council tax benefit) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 14 Pt. 1; S.I. 2013/358, art. 8(c), Sch. 4 (with arts. 9, 10, Sch. 5)

F106Figure in s. 115B(6) substituted (8.5.2012) by Welfare Reform Act 2012 (c. 5), ss. 115(3), 150(3); S.I. 2012/863, art. 2(3)(c)

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