Part IDecisions and Appeals
Chapter IGeneral
Decisions
1Transfer of functions to Secretary of State
The following functions are hereby transferred to the Secretary of State, namely—
(a)
the functions of adjudication officers appointed under section 38 of the Social Security Administration Act 1992 (“the Administration Act”);
(b)
the functions of social fund officers appointed under section 64 of that Act; and
(c)
the functions of child support officers appointed under section 13 of the Child Support Act 1991 (“the Child Support Act”).
2Use of computers
(1)
Any decision, determination or assessment falling to be made or certificate falling to be issued by the Secretary of State under or by virtue of a relevant enactment, or in relation to a war pension, may be made or issued not only by an officer of his acting under his authority but also—
(a)
by a computer for whose operation such an officer is responsible; and
(b)
in the case of a decision, determination or assessment that may be made or a certificate that may be issued by a person providing services to the Secretary of State, by a computer for whose operation such a person is responsible.
(2)
In this section “relevant enactment” means any enactment contained in—
(a)
Chapter II of this Part;
(b)
the Social Security Contributions and Benefits Act 1992 (“the Contributions and Benefits Act”);
(c)
the Administration Act;
(d)
the Child Support Act;
(e)
the Social Security (Incapacity for Work) Act 1994;
(f)
the Jobseekers Act 1995 (“the Jobseekers Act”);
(g)
the Child Support Act 1995; or
(h)
the Social Security (Recovery of Benefits) Act 1997.
(3)
In this section and section 3 below “war pension” has the same meaning as in section 25 of the Social Security Act 1989 (establishment and functions of war pensions committees).
3Use of information
(1)
Subsection (2) below applies to information relating to social security, child support or war pensions which is held—
(a)
by the Secretary of State or the Northern Ireland Department; or
(b)
by a person providing services to the Secretary of State or the Northern Ireland Department in connection with the provision of those services.
(2)
Information to which this subsection applies—
(a)
may be used for the purposes of, or for any purposes connected with, the exercise of functions in relation to social security, child support or war pensions; and
(b)
may be supplied to, or to a person providing services to, the Secretary of State or the Northern Ireland Department for use for those purposes.
(3)
The following sections, namely—
(a)
section 122C of the Administration Act (supply of information to authorities administering benefit); and
(b)
section 122D of that Act (supply of information by authorities administering benefit),
shall each have effect as if the reference in subsection (1) to social security included references to child support and war pensions.
(4)
In this section “the Northern Ireland Department” means the Department of Health and Social Services for Northern Ireland.
Appeals
4Unified appeal tribunals
(1)
Subject to the provisions of this Act—
(a)
the functions of social security appeal tribunals, disability appeal tribunals and medical appeal tribunals constituted under Part II of the Administration Act;
(b)
the functions of child support appeal tribunals established under section 21 of the Child Support Act; and
(c)
the functions of vaccine damage tribunals established by regulations made under section 4 of the M1Vaccine Damage Payments Act 1979 (“the Vaccine Damage Payments Act”),
are hereby transferred to appeal tribunals constituted under the following provisions of this Chapter.
(2)
Accordingly appeals under—
(a)
section 12 below;
(b)
section 20 of the Child Support Act, as substituted by section 42 below;
(c)
section 4 of the Vaccine Damage Payments Act, as substituted by section 46 below; and
(d)
section 11 of the M2Social Security (Recovery of Benefits) Act 1997,
shall be determined by appeal tribunals so constituted (in the following provisions of this Chapter referred to as “appeal tribunals”).
5President of appeal tribunals
(1)
The Lord Chancellor may, after consultation with the Lord Advocate, appoint a President of appeal tribunals.
(2)
A person is qualified to be appointed President if—
(a)
he has a 10 year general qualification (construed in accordance with section 71 of the M3Courts and Legal Services Act 1990); or
(b)
he is an advocate or solicitor in Scotland of at least 10 years' standing.
(3)
Schedule 1 to this Act shall have effect for supplementing this section.
6Panel for appointment to appeal tribunals
(1)
The Lord Chancellor shall constitute a panel of persons to act as members of appeal tribunals.
(2)
Subject to subsection (3) below, the panel shall be composed of such persons as the Lord Chancellor thinks fit to appoint after consultation, in the case of medical practitioners, with the Chief Medical Officer.
(3)
The panel shall include persons possessing such qualifications as may be prescribed by regulations made with the concurrence of the Lord Chancellor.
(4)
The numbers of persons appointed to the panel, and the terms and conditions of their appointments, shall be determined by the Lord Chancellor with the consent of the Secretary of State.
(5)
A person may be removed from the panel by the Lord Chancellor on the ground of incapacity or misbehaviour.
(6)
In this section “the Chief Medical Officer” means—
(a)
in relation to England, the Chief Medical Officer of the Department of Health;
(b)
in relation to Wales, the Chief Medical Officer of the Welsh Office; and
(c)
in relation to Scotland, the Chief Medical Officer of the F1Scottish Administration.
7Constitution of appeal tribunals
(1)
Subject to subsection (2) below, an appeal tribunal shall consist of one, two or three members drawn by the President from the panel constituted under section 6 above.
(2)
The member, or (as the case may be) at least one member, of an appeal tribunal must—
(a)
have a general qualification (construed in accordance with section 71 of the M4Courts and Legal Services Act 1990); or
(b)
be an advocate or solicitor in Scotland.
(3)
Where an appeal tribunal has more than one member—
(a)
the President shall nominate one of the members as chairman;
(b)
decisions shall be taken by a majority of votes; and
(c)
unless regulations otherwise provide, the chairman shall have any casting vote.
(4)
Where it appears to an appeal tribunal that a matter before it involves a question of fact of special difficulty, then, unless regulations otherwise provide, the tribunal may require one or more experts to provide assistance to it in dealing with the question.
(5)
In subsection (4) above “expert” means a member of the panel constituted under section 6 above who appears to the appeal tribunal concerned to have knowledge or experience which would be relevant in determining the question of fact of special difficulty.
(6)
Regulations shall make provision with respect to—
(a)
the composition of appeal tribunals;
(b)
the procedure to be followed in allocating cases among differently constituted tribunals; and
(c)
the manner in which expert assistance is to be given under subsection (4) above.
(7)
Schedule 1 to this Act shall have effect for supplementing this section.
Chapter IISocial Security Decisions and Appeals
Decisions
8Decisions by Secretary of State
(1)
Subject to the provisions of this Chapter, it shall be for the Secretary of State—
(a)
to decide any claim for a relevant benefit;
(b)
to decide any claim for a social fund payment mentioned in section 138(1)(b) of the Contributions and Benefits Act; F2and
(c)
subject to subsection (5) below, to make any decision that falls to be made under or by virtue of a relevant enactment; F3...
F3(d)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)
Where at any time a claim for a relevant benefit is decided by the Secretary of State—
(a)
the claim shall not be regarded as subsisting after that time; and
(b)
accordingly, the claimant shall not (without making a further claim) be entitled to the benefit on the basis of circumstances not obtaining at that time.
(3)
In this Chapter “relevant benefit” F4... means any of the following, namely—
(a)
benefit under Parts II to V of the Contributions and Benefits Act;
(b)
a jobseeker’s allowance;
(c)
income support;
(d)
F5working families’ tax credit;
(e)
F6disabled person’s tax credit;
(f)
a social fund payment mentioned in section 138(1)(a) or (2) of the Contributions and Benefits Act;
(g)
child benefit;
(h)
such other benefit as may be prescribed.
(4)
In this section “relevant enactment” means any enactment contained in this Chapter, the Contributions and Benefits Act, the Administration Act, the M5Social Security (Consequential Provisions) Act 1992 or the Jobseekers Act, other than one contained in—
(a)
Part VII of the Contributions and Benefits Act so far as relating to housing benefit and council tax benefit;
(b)
Part VIII of the Administration Act (arrangements for housing benefit and council tax benefit and related subsidies).
F7(5)
Subsection (1)(c) above does not include any decision which under section 8 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 falls to be made by an officer of the Inland Revenue.
9Revision of decisions
(1)
Subject to section 36(3) below, any decision of the Secretary of State under section 8 above or section 10 below may be revised by the Secretary of State—
(a)
either within the prescribed period or in prescribed cases or circumstances; and
(b)
either on an application made for the purpose or on his own initiative;
and regulations may prescribe the procedure by which a decision of the Secretary of State may be so revised.
(2)
In making a decision under subsection (1) above, the Secretary of State need not consider any issue that is not raised by the application or, as the case may be, did not cause him to act on his own initiative.
(3)
Subject to subsections (4) and (5) and section 27 below, a revision under this section shall take effect as from the date on which the original decision took (or was to take) effect.
(4)
Regulations may provide that, in prescribed cases or circumstances, a revision under this section shall take effect as from such other date as may be prescribed.
(5)
Where a decision is revised under this section, for the purpose of any rule as to the time allowed for bringing an appeal, the decision shall be regarded as made on the date on which it is so revised.
(6)
Except in prescribed circumstances, an appeal against a decision of the Secretary of State shall lapse if the decision is revised under this section before the appeal is determined.
10Decisions superseding earlier decisions
(1)
Subject to F8subsection (3) and section 36(3) below, the following, namely—
(a)
any decision of the Secretary of State under section 8 above or this section, whether as originally made or as revised under section 9 above; and
(b)
any decision under this Chapter of an appeal tribunal or a Commissioner,
may be superseded by a decision made by the Secretary of State, either on an application made for the purpose or on his own initiative.
(2)
In making a decision under subsection (1) above, the Secretary of State need not consider any issue that is not raised by the application or, as the case may be, did not cause him to act on his own initiative.
(3)
Regulations may prescribe the cases and circumstances in which, and the procedure by which, a decision may be made under this section.
F9(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)
Subject to subsection (6) and section 27 below, a decision under this section shall take effect as from the date on which it is made or, where applicable, the date on which the application was made.
(6)
Regulations may provide that, in prescribed cases or circumstances, a decision under this section shall take effect as from such other date as may be prescribed.
F10Reference of issues by Secretary of State to Inland Revenue
10A Reference of issues by Secretary of State to Inland Revenue.
(1)
Regulations may make provision requiring the Secretary of State, where on consideration of any claim or other matter he is of the opinion that there arises any issue which under section 8 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 falls to be decided by an officer of the Inland Revenue, to refer the issue to the Inland Revenue.
(2)
Regulations under this section may—
(a)
provide for the Inland Revenue to give the Secretary of State a preliminary opinion on any issue referred to them,
(b)
specify the circumstances in which an officer of the Inland Revenue is to make a decision under section 8 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 on a reference by the Secretary of State,
(c)
enable or require the Secretary of State, in specified circumstances, to deal with any other issue arising on consideration of the claim or other matter pending the decision on the referred issue, and
(d)
require the Secretary of State to decide the claim or other matter in accordance with the decision of an officer of the Inland Revenue on the issue referred to them, or in accordance with any determination of the tax appeal Commissioners made on appeal from their decision.
11Regulations with respect to decisions
(1)
Subject to the provisions of this Chapter and the Administration Act, provision may be made by regulations for the making of any decision by the Secretary of State under or in connection with the current legislation, or the former legislation, including a decision on a claim for benefit.
(2)
Where it appears to the Secretary of State that a matter before him involves a question of fact requiring special expertise, he may direct that in dealing with that matter he shall have the assistance of one or more experts.
(3)
In this section—
“the current legislation” means the Contributions and Benefits Act, the Jobseekers Act and the M6Social Security (Recovery of Benefits) Act 1997;
“expert” means a person appearing to the Secretary of State to have knowledge or experience which would be relevant in determining the question of fact requiring special expertise;
“the former legislation” means the National Insurance Acts 1965 to 1974, the National Insurance (Industrial Injuries) Acts 1965 to 1974, the M7Social Security Act 1975 and Part II of the M8Social Security Act 1986.
Appeals
12Appeal to appeal tribunal
(1)
This section applies to any decision of the Secretary of State under section 8 or 10 above (whether as originally made or as revised under section 9 above) which—
(a)
is made on a claim for, or on an award of, a relevant benefit, and does not fall within Schedule 2 to this Act; F11or
(b)
is made otherwise than on such a claim or award, and falls within Schedule 3 to this Act; F12...
F12(c)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F13(2)
In the case of a decision to which this section applies, the claimant and such other person as may be prescribed shall have a right to appeal to an appeal tribunal, but nothing in this subsection shall confer a right of appeal in relation to a prescribed decision, or a prescribed determination embodied in or necessary to a decision.
(3)
Regulations under subsection (2) above shall not prescribe any decision or determination that relates to the conditions of entitlement to a relevant benefit for which a claim has been validly made or for which no claim is required.
(4)
Where the Secretary of State has determined that any amount is recoverable under or by virtue of section 71 or 74 of the Administration Act, any person from whom he has determined that it is recoverable shall have the same right of appeal to an appeal tribunal as a claimant.
(5)
In any case where—
(a)
the Secretary of State has made a decision in relation to a claim under Part V of the Contributions and Benefits Act; and
(b)
the entitlement to benefit under that Part of that Act of any person other than the claimant is or may be, under Part VI of Schedule 7 to that Act, affected by that decision,
that other person shall have the same right of appeal to an appeal tribunal as the claimant.
(6)
A person with a right of appeal under this section shall be given such notice of a decision to which this section applies and of that right as may be prescribed.
(7)
Regulations may make provision as to the manner in which, and the time within which, appeals are to be brought.
(8)
In deciding an appeal under this section, an appeal tribunal—
(a)
need not consider any issue that is not raised by the appeal; and
(b)
shall not take into account any circumstances not obtaining at the time when the decision appealed against was made.
(9)
The reference in subsection (1) above to a decision under section 10 above is a reference to a decision superseding any such decision as is mentioned in paragraph (a) or (b) of subsection (1) of that section.
13Redetermination etc. of appeals by tribunal
(1)
This section applies where an application is made to a person under section 14(10)(a) below for leave to appeal from a decision of an appeal tribunal.
(2)
If the person considers that the decision was erroneous in point of law, he may set aside the decision and refer the case either for redetermination by the tribunal or for determination by a differently constituted tribunal.
(3)
If each of the principal parties to the case expresses the view that the decision was erroneous in point of law, the person shall set aside the decision and refer the case for determination by a differently constituted tribunal.
F14(4)
In this section and section 14 below “the principal parties” means—
(a)
the persons mentioned in subsection (3)(a) and (b) of that section, and
(b)
where applicable, the person mentioned in subsection (3)(d) and such a person as is first mentioned in subsection (4) of that section.
14Appeal from tribunal to Commissioner
(1)
Subject to the provisions of this section, an appeal lies to a Commissioner from any decision of an appeal tribunal under section 12 or 13 above on the ground that the decision of the tribunal was erroneous in point of law.
F15(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)
F16... an appeal lies under this section at the instance of any of the following—
(a)
the Secretary of State;
(b)
the claimant and such other person as may be prescribed;
(c)
in any of the cases mentioned in subsection (5) below, a trade union; and
(d)
a person from whom it is determined that any amount is recoverable under or by virtue of section 71 or 74 of the Administration Act.
(4)
In a case relating to industrial injuries benefit an appeal lies under this section at the instance of a person whose entitlement to benefit is, or may be, under Part VI of Schedule 7 to the Contributions and Benefits Act, affected by the decision appealed against, as well as at the instance of any person or body such as is mentioned in subsection (3) above.
(5)
The following are the cases in which an appeal lies at the instance of a trade union—
(a)
where the claimant is a member of the union at the time of the appeal and was so immediately before the matter in question arose;
(b)
where that matter in any way relates to a deceased person who was a member of the union at the time of his death;
(c)
where the case relates to industrial injuries benefit and the claimant or, in relation to industrial death benefit, the deceased, was a member of the union at the time of the relevant accident.
(6)
Subsections F17... (3) and (5) above, as they apply to a trade union, apply also to any other association which exists to promote the interests and welfare of its members.
(7)
If each of the principal parties to the appeal expresses the view that the decision appealed against was erroneous in point of law, the Commissioner may set aside the decision and refer the case to a tribunal with directions for its determination.
(8)
Where the Commissioner holds that the decision appealed against was erroneous in point of law, he shall set it aside and—
(a)
he shall have power—
(i)
to give the decision which he considers the tribunal should have given, if he can do so without making fresh or further findings of fact; or
(ii)
if he considers it expedient, to make such findings and to give such decision as he considers appropriate in the light of them; and
(b)
in any other case he shall refer the case to a tribunal with directions for its determination.
(9)
Subject to any direction of the Commissioner, a reference under subsection (7) or (8)(b) above shall be to a differently constituted tribunal.
(10)
No appeal lies under this section without the leave—
(a)
of the person who constituted, or was the chairman of, the tribunal when the decision was given or, in a prescribed case, the leave of such other person as may be prescribed; or
(b)
subject to and in accordance with regulations, of a Commissioner.
(11)
Regulations may make provision as to the manner in which, and the time within which, appeals are to be brought and applications made for leave to appeal.
(12)
Schedule 4 to this Act shall have effect with respect to the appointment, remuneration and tenure of office of Commissioners and other matters relating to them.
15Appeal from Commissioner on point of law
(1)
Subject to subsections (2) and (3) below, an appeal on a question of law shall lie to the appropriate court from any decision of a Commissioner.
(2)
No appeal under this section shall lie from a decision except—
(a)
with the leave of the Commissioner who gave the decision or, in a prescribed case, with the leave of a Commissioner selected in accordance with regulations; or
(b)
if he refuses leave, with the leave of the appropriate court.
(3)
An application for leave under this section in respect of a Commissioner’s decision may only be made by—
(a)
a person who, before the proceedings before the Commissioner were begun, was entitled to appeal to the Commissioner from the decision to which the Commissioner’s decision relates;
(b)
any other person who was a party to the proceedings in which the first decision mentioned in paragraph (a) above was given;
(c)
any other person who is authorised by regulations to apply for leave;
and regulations may make provision with respect to the manner in which and the time within which applications must be made to a Commissioner for leave under this section and with respect to the procedure for dealing with such applications.
(4)
On an application to a Commissioner for leave under this section it shall be the duty of the Commissioner to specify as the appropriate court—
(a)
the Court of Appeal if it appears to him that the relevant place is in England or Wales;
(b)
the Court of Session if it appears to him that the relevant place is in Scotland; and
(c)
the Court of Appeal in Northern Ireland if it appears to him that the relevant place is in Northern Ireland,
except that if it appears to him, having regard to the circumstances of the case and in particular to the convenience of the persons who may be parties to the proposed appeal, that he should specify a different court mentioned in paragraphs (a) to (c) above as the appropriate court, it shall be his duty to specify that court as the appropriate court.
(5)
In this section—
“the appropriate court”, except in subsection (4) above, means the court specified in pursuance of that subsection;
“the relevant place”, in relation to an application for leave to appeal from a decision of a Commissioner, means the premises where the person or authority whose decision was the subject of the Commissioner’s decision usually exercises his or its functions.
Procedure etc.
16Procedure
(1)
Regulations (“procedure regulations”) may make any such provision as is specified in Schedule 5 to this Act.
(2)
Procedure regulations prescribing the procedure to be followed in cases before a Commissioner shall provide that any hearing shall be in public except in so far as the Commissioner for special reasons otherwise directs.
(3)
It is hereby declared—
(a)
that the power to prescribe procedure includes power to make provision as to the representation of one person, at any hearing of a case, by another person whether having professional qualifications or not; and
(b)
that the power to provide for the procedure to be followed in connection with the making of decisions by the Secretary of State includes power to make provision with respect to the formulation of the matters to be decided, whether on a reference under section 117 of the Administration Act or otherwise.
(4)
Subsection (5) below applies to any issue—
(a)
as to whether a Class 1A contribution is payable, or otherwise relating to a Class 1A contribution; or
(b)
relating to emoluments in respect of which a Class 1A contribution would be payable but for section 10(8A) of the Contributions and Benefits Act;
and in that subsection, in relation to such an issue, “the relevant person” means the person who is liable or alleged to be liable, or (as the case may be) who would be liable or who it is alleged would be liable, to pay the Class 1A contribution in question.
(5)
In proceedings for the determination of an issue to which this subsection applies—
(a)
in England and Wales, there shall be available to a witness (other than the relevant person) any privilege against self-incrimination or incrimination of a spouse which is available to a witness in legal proceedings; and
(b)
in Scotland, section 3 of the Evidence (Scotland) Act 1853 (competence and compellability of witnesses) shall apply as it applies to civil proceedings except that the relevant person shall have no privilege against self-incrimination.
(6)
If it appears to a Commissioner that a matter before him involves a question of fact of special difficulty, he may direct that in dealing with that matter he shall have the assistance of one or more experts.
In this subsection “expert” means a person appearing to the Commissioner to have knowledge or experience which would be relevant in determining the question of fact of special difficulty.
(7)
If it appears to the Chief Commissioner (or, in the case of his inability to act, to such other of the Commissioners as he may have nominated to act for the purpose) that—
(a)
an application for leave under section 14(10)(b) above; or
(b)
an appeal,
falling to be heard by one of the Commissioners involves a question of law of special difficulty, he may direct that the application or appeal be dealt with, not by that Commissioner alone, but by a tribunal consisting of any three or more of the Commissioners.
If the decision of the tribunal is not unanimous, the decision of the majority shall be the decision of the tribunal; and the presiding Commissioner shall have a casting vote if the votes are equally divided.
(8)
Where a direction is given under subsection (7)(a) above, section 14(10)(b) above shall have effect as if the reference to a Commissioner were a reference to such a tribunal as is mentioned in subsection (7) above.
(9)
Except so far as it may be applied in relation to England and Wales by procedure regulations, Part I of the Arbitration Act 1996 shall not apply to any proceedings under this Chapter.
17Finality of decisions
(1)
Subject to the provisions of this Chapter, any decision made in accordance with the foregoing provisions of this Chapter shall be final; and subject to the provisions of any regulations under section 11 above, any decision made in accordance with those regulations shall be final.
(2)
If and to the extent that regulations so provide, any finding of fact or other determination embodied in or necessary to such a decision, or on which such a decision is based, shall be conclusive for the purposes of—
(a)
further such decisions;
(b)
decisions made under the Child Support Act; and
(c)
decisions made under the Vaccine Damage Payments Act.
18Matters arising as respects decisions
(1)
Regulations may make provision as respects matters arising—
(a)
pending any decision under this Chapter of the Secretary of State, an appeal tribunal or a Commissioner which relates to—
(i)
any claim for a relevant benefit; F18or
(ii)
any person’s entitlement to such a benefit or its receipt; F19or
F20(iii)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F20(iv)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b)
out of the revision under section 9 above or on appeal of any such decision.
(2)
Regulations under subsection (1) above as it applies to child benefit may include provision as to the date from which child benefit is to be payable to a person in respect of a child in a case where, before the benefit was awarded to that person, child benefit in respect of the child was awarded to another person.
Medical examinations
19Medical examination required by Secretary of State
(1)
Before making a decision on a claim for a relevant benefit, or as to a person’s entitlement to such a benefit F21... , the Secretary of State may refer the person—
(a)
in respect of whom the claim is made; or
(b)
whose entitlement is at issue,
to a medical practitioner for such examination and report as appears to the Secretary of State to be necessary for the purpose of providing him with information for use in making the decision.
(2)
Subsection (3) below applies where—
(a)
the Secretary of State has exercised the power conferred on him by subsection (1) above; and
(b)
the medical practitioner requests the person referred to him to attend for or submit himself to medical examination.
(3)
If the person fails without good cause to comply with the request, the Secretary of State shall make the decision against him.
20Medical examination required by appeal tribunal
(1)
This section applies where an appeal has been brought under section 12 above against a decision on a claim for a relevant benefit, or as to a person’s entitlement to such a benefit F22....
(2)
An eligible person may, if prescribed conditions are satisfied, refer the person—
(a)
in respect of whom the claim is made; or
(b)
whose entitlement is at issue,
to a medical practitioner for such examination and report as appears to the eligible person to be necessary for the purpose of providing an appeal tribunal with information for use in determining the appeal.
In this subsection “eligible person” means a person who is eligible to be appointed as the sole member of an appeal tribunal, or to be nominated as the chairman of such a tribunal.
(3)
At a hearing before an appeal tribunal, except in prescribed cases or circumstances, the tribunal—
(a)
may not carry out a physical examination of the person mentioned in subsection (2) above; and
(b)
may not require that person to undergo any physical test for the purpose of determining whether he satisfies the condition mentioned in section 73(1)(a) of the Contributions and Benefits Act.
Suspension and termination of benefit
21Suspension in prescribed circumstances
(1)
Regulations may provide for—
(a)
suspending payments of a relevant benefit, in whole or in part, in prescribed circumstances;
(b)
the subsequent making in prescribed circumstances of any or all of the payments so suspended.
(2)
Regulations made under subsection (1) above may, in particular, make provision for any case where—
(a)
it appears to the Secretary of State that an issue arises whether the conditions for entitlement to a relevant benefit are or were fulfilled;
(b)
it appears to the Secretary of State that an issue arises whether a decision as to an award of a relevant benefit should be revised (under section 9 above) or superseded (under section 10 above);
(c)
an appeal is pending against a decision of an appeal tribunal, a Commissioner or a court; or
(d)
an appeal is pending against the decision given in a different case by a Commissioner or a court, and it appears to the Secretary of State that if the appeal were to be determined in a particular way an issue would arise whether the award of a relevant benefit (whether the same benefit or not) in the case itself ought to be revised or superseded.
(3)
For the purposes of subsection (2) above, an appeal against a decision is pending if—
(a)
an appeal against the decision has been brought but not determined;
(b)
an application for leave to appeal against the decision has been made but not determined; or
(c)
in such circumstances as may be prescribed, an appeal against the decision has not been brought (or, as the case may be, an application for leave to appeal against the decision has not been made) but the time for doing so has not yet expired.
F23(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22Suspension for failure to furnish information etc
(1)
The powers conferred by this section are exercisable in relation to persons who fail to comply with information requirements.
(2)
Regulations may provide for—
(a)
suspending payments of a relevant benefit, in whole or in part;
(b)
the subsequent making in prescribed circumstances of any or all of the payments so suspended.
(3)
In this section and section 23 below “information requirement” means a requirement, made in pursuance of regulations under subsection (1)(hh) of section 5 of the Administration Act, to furnish information or evidence needed for a determination whether a decision on an award of benefit to which that section applies should be revised under section 9 or superseded under section 10 above.
23Termination in cases of failure to furnish information
Regulations may provide that, except in prescribed cases or circumstances, a person—
(a)
whose benefit has been suspended in accordance with regulations under section 21 above and who subsequently fails to comply with an information requirement; or
(b)
whose benefit has been suspended in accordance with regulations under section 22 above for failing to comply with such a requirement,
shall cease to be entitled to the benefit from a date not earlier than the date on which payments were suspended.
24Suspension and termination for failure to submit to medical examination
Regulations may make provision—
(a)
enabling the Secretary of State to require a person to whom a relevant benefit has been awarded to submit to medical examination;
(b)
for suspending payments of benefit, in whole or in part, in a case of a person who fails to submit himself to a medical examination to which he is required to submit in accordance with regulations under paragraph (a) above;
(c)
for the subsequent making in prescribed circumstances of any or all of the payments so suspended;
(d)
for entitlement to the benefit to cease, except in prescribed cases or circumstances, from a date not earlier than the date on which payments were suspended.
F24Appeals dependent on issues falling to be decided by Inland Revenue
24A Appeals dependent on issues falling to be decided by Inland Revenue.
(1)
Regulations may make provision for an appeal tribunal or Commissioner, where on any appeal there arises any issue which under section 8 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 falls to be decided by the Inland Revenue, to require the Secretary of State to refer the issue to the Inland Revenue.
(2)
Regulations under this section may—
(a)
provide for the appeal to be referred to the Secretary of State pending the decision by an officer of the Inland Revenue,
(b)
enable or require the Secretary of State, in specified circumstances, to deal with any other issue arising on the appeal pending the decision on the referred issue, and
(c)
enable the Secretary of State, on receiving the decision of an officer of the Inland Revenue, or any determination of the tax appeal Commissioners made on an appeal from his decision—
(i)
to revise his decision,
(ii)
to make a decision superseding his decision, or
(iii)
to refer the appeal to the appeal tribunal or Commissioner for determination.
Decisions and appeals dependent on other cases
25Decisions involving issues that arise on appeal in other cases
(1)
This section applies where—
(a)
a decision by the Secretary of State falls to be made under section 8, 9 or 10 above in relation to a particular case; and
(b)
an appeal is pending against the decision given in another case by a Commissioner or a court (whether or not the two cases concern the same benefit).
(2)
In a case relating to a relevant benefit, the Secretary of State need not make the decision while the appeal is pending if he considers it possible that the result of the appeal will be such that, if it were already determined, there would be no entitlement to benefit.
(3)
If the Secretary of State considers it possible that the result of the appeal will be such that, if it were already determined, it would affect the decision in some other way—
(a)
he need not, except in such cases or circumstances as may be prescribed, make the decision while the appeal is pending;
(b)
he may, in such cases or circumstances as may be prescribed, make the decision on such basis as may be prescribed.
(4)
Where the Secretary of State acts in accordance with subsection (3)(b) above, following the determination of the appeal he shall if appropriate revise his decision (under section 9 above) in accordance with that determination.
(5)
For the purposes of this section, an appeal against a decision is pending if—
(a)
an appeal against the decision has been brought but not determined;
(b)
an application for leave to appeal against the decision has been made but not determined; or
(c)
in such circumstances as may be prescribed, an appeal against the decision has not been brought (or, as the case may be, an application for leave to appeal against the decision has not been made) but the time for doing so has not yet expired.
(6)
In paragraphs (a), (b) and (c) of subsection (5) above, any reference to an appeal, or an application for leave to appeal, against a decision includes a reference to—
(a)
an application for, or for leave to apply for, judicial review of the decision under section 31 of the M9Supreme Court Act 1981; or
(b)
an application to the supervisory jurisdiction of the Court of Session in respect of the decision.
26Appeals involving issues that arise on appeal in other cases
(1)
This section applies where—
(a)
an appeal (“appeal A”) in relation to a decision under section 8, 9 or 10 above is made to an appeal tribunal, or from an appeal tribunal to a Commissioner; and
(b)
an appeal (“appeal B”) is pending against a decision given in a different case by a Commissioner or a court (whether or not the two appeals concern the same benefit).
(2)
If the Secretary of State considers it possible that the result of appeal B will be such that, if it were already determined, it would affect the determination of appeal A, he may serve notice requiring the tribunal or Commissioner—
(a)
not to determine appeal A but to refer it to him; or
(b)
to deal with the appeal in accordance with subsection (4) below.
(3)
Where appeal A is referred to the Secretary of State under subsection (2)(a) above, following the determination of appeal B and in accordance with that determination, he shall if appropriate—
(a)
in a case where appeal A has not been determined by the tribunal, revise (under section 9 above) his decision which gave rise to that appeal; or
(b)
in a case where appeal A has been determined by the tribunal, make a decision (under section 10 above) superseding the tribunal’s decision.
(4)
Where appeal A is to be dealt with in accordance with this subsection, the appeal tribunal or Commissioner shall either—
(a)
stay appeal A until appeal B is determined; or
(b)
if the tribunal or Commissioner considers it to be in the interests of the appellant to do so, determine appeal A as if—
(i)
appeal B had already been determined; and
(ii)
the issues arising on appeal B had been decided in the way that was most unfavourable to the appellant.
In this subsection “the appellant” means the person who appealed or, as the case may be, first appealed against the decision mentioned in subsection (1)(a) above.
(5)
Where the appeal tribunal or Commissioner acts in accordance with subsection (4)(b) above, following the determination of appeal B the Secretary of State shall, if appropriate, make a decision (under section 10 above) superseding the decision of the tribunal or Commissioner in accordance with that determination.
(6)
For the purposes of this section, an appeal against a decision is pending if—
(a)
an appeal against the decision has been brought but not determined;
(b)
an application for leave to appeal against the decision has been made but not determined; or
(c)
in such circumstances as may be prescribed, an appeal against the decision has not been brought (or, as the case may be, an application for leave to appeal against the decision has not been made) but the time for doing so has not yet expired.
(7)
In this section—
(a)
the reference in subsection (1)(a) above to an appeal to a Commissioner includes a reference to an application for leave to appeal to a Commissioner; and
(b)
any reference in paragraph (a), (b) or (c) of subsection (6) above to an appeal, or to an application for leave to appeal, against a decision includes a reference to—
(i)
an application for, or for leave to apply for, judicial review of the decision under section 31 of the M10Supreme Court Act 1981; or
(ii)
an application to the supervisory jurisdiction of the Court of Session in respect of the decision.
(8)
Regulations may make provision supplementing that made by this section.
Cases of error
27Restrictions on entitlement to benefit in certain cases of error
(1)
Subject to subsection (2) below, this section applies where—
(a)
the effect of the determination, whenever made, of an appeal to a Commissioner or the court (“the relevant determination”) is that the adjudicating authority’s decision out of which the appeal arose was erroneous in point of law; and
(b)
after the date of the relevant determination a decision falls to be made by the Secretary of State in accordance with that determination (or would, apart from this section, fall to be so made)—
(i)
in relation to a claim for benefit;
(ii)
as to whether to revise, under section 9 above, a decision as to a person’s entitlement to benefit; or
(iii)
on an application made under section 10 above for a decision as to a person’s entitlement to benefit to be superseded.
(2)
This section does not apply where the decision of the Secretary of State mentioned in subsection (1)(b) above—
(a)
is one which, but for section 25(2) or (3)(a) above, would have been made before the date of the relevant determination; or
(b)
is one made in pursuance of section 26(3) or (5) above.
(3)
In so far as the decision relates to a person’s entitlement to a benefit in respect of—
(a)
a period before the date of the relevant determination; or
(b)
in the case of a widow’s payment, a death occurring before that date,
it shall be made as if the adjudicating authority’s decision had been found by the Commissioner or court not to have been erroneous in point of law.
(4)
In deciding whether a person is entitled to benefit in a case where his entitlement depends on his having been entitled to the same or some other benefit before attaining a particular age, subsection (3) above shall be disregarded for the purpose only of deciding whether he was so entitled before attaining that age.
(5)
Subsection (1)(a) above shall be read as including a case where—
(a)
the effect of the relevant determination is that part or all of a purported regulation or order is invalid; and
(b)
the error of law made by the adjudicating authority was to act on the basis that the purported regulation or order (or the part held to be invalid) was valid.
(6)
It is immaterial for the purposes of subsection (1) above—
(a)
where such a decision as is mentioned in paragraph (b)(i) falls to be made, whether the claim was made before or after the date of the relevant determination;
(b)
where such a decision as is mentioned in paragraph (b)(ii) or (iii) falls to be made on an application under section 9 or (as the case may be) 10 above, whether the application was made before or after that date.
(7)
In this section—
“adjudicating authority” means—
(a)
the Secretary of State;
(b)
any former officer, tribunal or body; or
(c)
any officer, tribunal or body in Northern Ireland corresponding to a former officer, tribunal or body;
“benefit” means—
(a)
benefit under Parts II to V of the Contributions and Benefits Act, other than Old Cases payments;
(b)
benefit under Part II of the M11Social Security Act 1975 (in respect of a period before 1st July 1992 but not before 6th April 1975);
(c)
benefit under the M12National Insurance Act 1946 or M131965, or the M14National Insurance (Industrial Injuries) Act 1946 or M151965 (in respect of a period before 6th April 1975);
(d)
a jobseeker’s allowance;
(e)
any benefit corresponding to a benefit mentioned in paragraphs (a) to (d) above; and
(f)
any income-related benefit;
“the court” means the High Court, the Court of Appeal, the Court of Session, the High Court or Court of Appeal in Northern Ireland, the House of Lords or the Court of Justice of the European Community;
“former officer, tribunal or body” means any of the following, that is to say—
(a)
an adjudication officer or, in the case of a decision given on a reference under section 21(2) or 25(1) of the Administration Act, a social security appeal tribunal, a disability appeal tribunal or a medical appeal tribunal;
(b)
an adjudicating medical practitioner appointed under section 49 of that Act or a specially qualified adjudicating medical practitioner appointed in accordance with regulations under section 62(2) of that Act; or
(c)
the National Assistance Board, the Supplementary Benefits Commission, the Attendance Allowance Board, a benefit officer, an insurance officer or a supplement officer.
(8)
For the purposes of this section, any reference to entitlement to benefit includes a reference to entitlement—
(a)
to any increase in the rate of a benefit; or
(b)
to a benefit, or increase of benefit, at a particular rate.
(9)
The date of the relevant determination shall, in prescribed cases, be determined for the purposes of this section in accordance with any regulations made for that purpose.
(10)
Regulations made under subsection (9) above may include provision—
(a)
for a determination of a higher court to be treated as if it had been made on the date of a determination of a lower court or a Commissioner; or
(b)
for a determination of a lower court or a Commissioner to be treated as if it had been made on the date of a determination of a higher court.
28Correction of errors and setting aside of decisions
(1)
Regulations may make provision with respect to—
(a)
the correction of accidental errors in any decision or record of a decision made under any relevant enactment; and
(b)
the setting aside of any such decision in a case where it appears just to set the decision aside on the ground that—
(i)
a document relating to the proceedings in which the decision was given was not sent to, or was not received at an appropriate time by, a party to the proceedings or a party’s representative or was not received at an appropriate time by the body or person who gave the decision; or
(ii)
a party to the proceedings or a party’s representative was not present at a hearing related to the proceedings.
F25(1A)
In subsection (1) “decision” does not include any decision made by an officer of the Inland Revenue, other than a decision under or by virtue of Part III of the Pension Schemes Act 1993.
(2)
Nothing in subsection (1) above shall be construed as derogating from any power to correct errors or set aside decisions which is exercisable apart from regulations made by virtue of that subsection.
(3)
In this section “relevant enactment” means any enactment contained in—
(a)
this Chapter;
(b)
the Contributions and Benefits Act;
(c)
the M16Pension Schemes Act 1993;
(d)
the Jobseekers Act; or
(e)
the M17Social Security (Recovery of Benefits) Act 1997.
Industrial accidents
29Decision that accident is an industrial accident
(1)
Where, in connection with any claim for industrial injuries benefit, it is decided that the relevant accident was or was not an industrial accident—
(a)
an express declaration of that fact shall be made and recorded; and
(b)
subject to subsection (3) below, a claimant shall be entitled to have the issue whether the relevant accident was an industrial accident decided notwithstanding that his claim is disallowed on other grounds.
(2)
Subject to subsection (3) and section 30 below, any person suffering personal injury by accident shall be entitled, if he claims the accident was an industrial accident—
(a)
to have that issue decided; and
(b)
to have a declaration made and recorded accordingly,
notwithstanding that no claim for benefit has been made in connection with which the issue arises; and this Chapter shall apply for that purpose as if the issue had arisen in connection with a claim for benefit.
(3)
The Secretary of State, an appeal tribunal or a Commissioner (as the case may be) may refuse to decide the issue whether an accident was an industrial accident if satisfied that it is unlikely to be necessary to decide the issue for the purposes of any claim for benefit; and this Chapter shall apply as if any such refusal were a decision on the issue.
(4)
Subject to sections 9 to 15 above, any declaration under this section that an accident was or was not an industrial accident shall be conclusive for the purposes of any claim for industrial injuries benefit in respect of that accident.
(5)
Where subsection (4) above applies—
(a)
in relation to a death occurring before 11th April 1988; or
(b)
for the purposes of section 60(2) of the Contributions and Benefits Act,
it shall have effect as if at the end there were added the words “whether or not the claimant is the person at whose instance the declaration was made”.
(6)
For the purposes of this section (but subject to section 30 below), an accident whereby a person suffers personal injury shall be deemed, in relation to him, to be an industrial accident if—
(a)
it arises out of and in the course of his employment;
(b)
that employment is employed earner’s employment for the purposes of Part V of the Contributions and Benefits Act; and
(c)
payment of benefit is not under section 94(5) of that Act precluded because the accident happened while he was outside Great Britain.
(7)
A decision under this section shall be final except that sections 9 and 10 above apply to a decision under this section that an accident was or was not an industrial accident as they apply to a decision under section 8 above if, but only if, the Secretary of State is satisfied that the decision under this section was given in consequence of any wilful non-disclosure or misrepresentation of a material fact.
30Effect of decision
(1)
A decision (given under subsection (2) of section 29 above or otherwise) that an accident was an industrial accident is to be taken as determining only that paragraphs (a), (b) and (c) of subsection (6) of that section are satisfied in relation to the accident.
(2)
Subject to subsections (3) and (4) below, no such decision is to be taken as importing a decision as to the origin of any injury or disability suffered by the claimant, whether or not there is an event identifiable as an accident apart from any injury that may have been received.
(3)
A decision that, on a particular occasion when there was no event so identifiable, a person had an industrial accident by reason of an injury shall be treated as a decision that, if the injury was suffered by accident on that occasion, the accident was an industrial accident.
(4)
A decision that an accident was an industrial accident may be given, and a declaration to that effect be made and recorded in accordance with section 29 above, without its having been found that personal injury resulted from the accident.
(5)
Subsection (4) above has effect subject to the discretion under section 29(3) above to refuse to decide the issue if it is unlikely to be necessary for the purposes of a claim for benefit.
Other special cases
31Incapacity for work
(1)
Regulations may provide that a determination that a person is disqualified for any period in accordance with regulations under section 171E of the Contributions and Benefits Act shall have effect for such purposes as may be prescribed as a determination that he is to be treated as capable of work for that period, and vice versa.
(2)
Provision may be made by regulations for matters of such descriptions as may be prescribed to be determined by the Secretary of State, notwithstanding that other matters fall to be determined by another authority.
(3)
Nothing in this section shall be taken to prejudice the generality of the power conferred by section 17(2) above.
32Industrial diseases
Regulations shall provide for applying the provisions of this Chapter, subject to any prescribed additions or modifications, in relation to decisions made or falling to be made under sections 108 to 110 of the Contributions and Benefits Act.
33Christmas bonus
(1)
A decision by the Secretary of State that a person is entitled or not entitled to payment of a qualifying benefit in respect of a period which includes a day in the relevant week shall be conclusive for the purposes of section 148 of the Contributions and Benefits Act.
(2)
In this section, expressions to which a meaning is assigned by section 150 of that Act have that meaning.
Housing benefit and council tax benefit
34Determination of claims and reviews
(1)
Regulations shall provide that, where a person claims—
(a)
housing benefit; or
(b)
council tax benefit,
the authority to whom the claim is made shall notify the person of its determination of the claim.
(2)
Any such notification shall be given in such form as may be prescribed.
(3)
Regulations may make provision requiring authorities to whom claims for housing benefit or council tax benefit are made by, or in respect of, persons who have been entitled to a jobseeker’s allowance or to income support to give priority, in prescribed circumstances, to those claims over other claims for any such benefit.
(4)
Regulations shall make provision for reviews of determinations relating to housing benefit or council tax benefit.
(5)
Regulations may make provision as respects matters arising out of the revision on review of such determinations.
35Suspension of benefit in prescribed circumstances
(1)
Regulations may provide for—
(a)
suspending in prescribed circumstances, in whole or in part—
(i)
payments of housing benefit or council tax benefit; or
(ii)
any right (exercisable by way of council tax benefit) to make a reduction in the amount that a person is or becomes liable to pay in respect of council tax;
(b)
the subsequent making, or restoring, in prescribed circumstances of any or all of the payments, or any right, so suspended.
(2)
Regulations made under subsection (1) above may, in particular, make provision for any case where, in relation to a claim for housing benefit or council tax benefit—
(a)
it appears to the authority that an issue arises whether the conditions for entitlement to the benefit are or were fulfilled;
(b)
it appears to the authority that an issue arises whether the determination of the claim should be reviewed in accordance with regulations made under section 34(4) above;
(c)
an appeal is pending to a court in relation to the determination of the claim; or
(d)
an appeal is pending to a court in relation to the determination (whether made by the authority or by any other authority) of a different claim for housing benefit or council tax benefit, and it appears to the authority that if the appeal were to be determined in a particular way an issue would arise whether the determination of the claim ought to be reviewed.
(3)
For the purposes of subsection (2) above, an appeal is pending to a court in England and Wales in relation to a determination if—
(a)
an application, or a renewed application, for leave to apply for judicial review of the determination has been made but not determined;
(b)
such leave has been granted but the application for judicial review has not been determined;
(c)
an appeal has been brought (or an application has been made for leave to appeal) against an order made on a judicial review of the determination, and the appeal (or application) has not been determined; or
(d)
in such circumstances as may be prescribed, the time for making an application or appeal such as is mentioned in paragraph (a) or (c) above has not yet expired.
(4)
For the purposes of subsection (2) above, an appeal is pending to a court in Scotland in relation to a determination if—
(a)
an application to the supervisory jurisdiction of the Court of Session has been made in respect of the determination and the application has not been determined;
(b)
an appeal has been brought against an order made on such an application and the appeal has not been determined;
(c)
in such circumstances as may be prescribed, an application such as is mentioned in paragraph (a) above has not been made in respect of the determination and a period prescribed for the purposes of this section for making such an application has not expired; or
(d)
in such circumstances as may be prescribed, the time for making an appeal such as is mentioned in paragraph (b) above has not yet expired.
Social fund payments
36Appropriate officers
(1)
In this section and section 38 below, “appropriate officer” means an officer of the Secretary of State who, acting under his authority, is exercising functions of the Secretary of State in relation to such payments out of the social fund as are mentioned in section 138(1)(b) of the Contributions and Benefits Act.
(2)
The Secretary of State may nominate for an area an appropriate officer who shall issue general guidance to other such officers in the area about such matters relating to the social fund as the Secretary of State may specify.
(3)
In relation to any decision of an appropriate officer, section 38 below shall apply in substitution for sections 9 and 10 above.
37The social fund Commissioner and inspectors
(1)
There shall continue to be an officer known as “the social fund Commissioner”.
(2)
The social fund Commissioner shall be appointed by the Secretary of State.
(3)
The social fund Commissioner—
(a)
shall appoint such social fund inspectors; and
(b)
may appoint such officers and staff for himself and for social fund inspectors,
as he thinks fit, but with the consent of the Secretary of State as to numbers.
(4)
Appointments under subsection (3) above shall be made from persons made available to the social fund Commissioner by the Secretary of State.
(5)
It shall be the duty of the social fund Commissioner—
(a)
to monitor the quality of decisions of social fund inspectors and give them such advice and assistance as he thinks fit to improve the standard of their decisions;
(b)
to arrange such training of social fund inspectors as he considers appropriate; and
(c)
to carry out such other functions in connection with the work of social fund inspectors as the Secretary of State may direct.
(6)
The social fund Commissioner shall report annually in writing to the Secretary of State on the standards of reviews by social fund inspectors, and the Secretary of State shall publish his report.
38Reviews of determinations
(1)
An appropriate officer—
(a)
shall review a social fund determination, if an application for a review is made, within such time and in such form and manner as may be prescribed, by or on behalf of the person who applied for the payment to which the determination relates;
(b)
may review such a determination on the ground that the person who applied for the payment to which the determination relates misrepresented, or failed to disclose, any material fact; and
(c)
may review such a determination in such other circumstances as he thinks fit.
(2)
The power to review a social fund determination conferred by subsection (1) above includes power to review a determination made on a previous review.
(3)
A social fund determination which has been reviewed under subsection (1) above shall be further reviewed by a social fund inspector if an application is made, within such time and in such form and manner as may be prescribed, by or on behalf of the person who applied for the payment to which the determination relates.
(4)
On a review under subsection (3) above a social fund inspector shall have the following powers—
(a)
power to confirm the determination made by the appropriate officer;
(b)
power to make any determination which an appropriate officer could have made;
(c)
power to refer the matter to such an officer for determination.
(5)
A social fund inspector may review a determination under subsection (3) above made by himself or some other social fund inspector.
(6)
In making a determination on a review an appropriate officer or a social fund inspector need not consider—
(a)
in the case of a determination on a review under subsection (1)(a) above, any issue that is not raised by the application;
(b)
in the case of a determination on a review under subsection (1)(b) above, any issue that is not raised by the material fact;
(c)
in the case of a determination on a review under subsection (1)(c) above, any issue that did not cause him to carry out the review.
(7)
In making a determination on a review under subsection (1)(a) or (c) above an appropriate officer or a social fund inspector shall—
(a)
subject to paragraphs (b) and (c) below, have regard to whichever of the following are applicable, namely—
(i)
all the circumstances of the case and, in particular, the criteria specified in paragraphs (a) to (e) of subsection (1) of section 140 of the Contributions and Benefits Act;
(ii)
the criteria mentioned in paragraphs (a) and (b) of subsection (1A) of that section; and
(iii)
the criterion specified in directions issued by the Secretary of State under that subsection and the criteria mentioned in paragraph (b) of that subsection;
(b)
act in accordance with any general directions issued by the Secretary of State under subsection (2) of that section, and any general directions issued by him with regard to reviews; and
(c)
take account of any general guidance issued by the Secretary of State under that subsection or with regard to reviews.
(8)
In making a determination on a review under subsection (1)(b) above an appropriate officer or a social fund inspector shall—
(a)
act in accordance with any general directions issued by the Secretary of State; and
(b)
take account of any general guidance issued by the Secretary of State.
(9)
Any reference in subsection (6), (7) or (8) above to a determination on a review under a particular provision of subsection (1) above shall be construed, in relation to a social fund inspector, as a reference to a determination on a further review of a determination which has been reviewed under that provision.
(10)
Directions under this section may specify—
(a)
the circumstances in which a social fund determination is to be reviewed; and
(b)
the manner in which a review is to be conducted.
(11)
In making a determination on a review under subsection (1)(a) or (c) above an appropriate officer shall take account (subject to any directions or guidance issued by the Secretary of State under this section) of any guidance issued by the appropriate officer nominated for his area under section 36(2) above.
(12)
A social fund inspector reviewing a social fund determination which has been reviewed under subsection (1)(a) or (c) above shall be under the same duties in relation to such guidance as the appropriate officer or social fund inspector who made the determination.
(13)
In this section “social fund determination” means a determination made under the Contributions and Benefits Act by an appropriate officer.
Supplemental
39Interpretation etc. of Chapter II
(1)
In this Chapter—
“appeal tribunal” means an appeal tribunal constituted under Chapter I of this Part;
F26“claimant”, in relation to a joint-claim couple claiming a joint-claim jobseeker’s allowance (within the meaning of the Jobseekers Act 1995), means the couple or either member of the couple;
“Commissioner” F27(except in the expression “tax appeal Commissioners”) means the Chief Social Security Commissioner or any other Social Security Commissioner, and includes a tribunal of three or more Commissioners constituted under section 16(7) above;
“relevant benefit” has the meaning given by section 8(3) above.
F28“tax appeal Commissioners” means the Commissioners for the general purposes of the income tax appointed under section 2 of the Taxes Management Act 1970 or the Commissioners for the special purposes of the Income Tax Acts appointed under section 4 of that Act;
(2)
Expressions used in this Chapter to which a meaning is assigned by section 191 of the Administration Act have that meaning in this Chapter.
(3)
Part II of the Administration Act, which is superseded by the foregoing provisions of this Chapter, shall cease to have effect.
Chapter IIIOther Decisions and Appeals
Child support
40Child support: revision of decisions
“16Revision of decisions
(1)
Any decision of the Secretary of State under section 11, 12 or 17 may be revised by the Secretary of State—
(a)
either within the prescribed period or in prescribed cases or circumstances; and
(b)
either on an application made for the purpose or on his own initiative;
and regulations may prescribe the procedure by which a decision of the Secretary of State may be so revised.
(2)
In making a decision under subsection (1), the Secretary of State need not consider any issue that is not raised by the application or, as the case may be, did not cause him to act on his own initiative.
(3)
Subject to subsections (4) and (5) and section 28ZC, a revision under this section shall take effect as from the date on which the original decision took (or was to take) effect.
(4)
Regulations may provide that, in prescribed cases or circumstances, a revision under this section shall take effect as from such other date as may be prescribed.
(5)
Where a decision is revised under this section, for the purpose of any rule as to the time allowed for bringing an appeal, the decision shall be regarded as made on the date on which it is so revised.
(6)
Except in prescribed circumstances, an appeal against a decision of the Secretary of State shall lapse if the decision is revised under this section before the appeal is determined.”
41Child support: decisions superseding earlier decisions
“17Decisions superseding earlier decisions
(1)
Subject to subsection (2), the following, namely—
(a)
any decision of the Secretary of State under section 11 or 12 or this section, whether as originally made or as revised under section 16;
(b)
any decision of an appeal tribunal under section 20; and
(c)
any decision of a Child Support Commissioner on an appeal from such a decision as is mentioned in paragraph (b),
may be superseded by a decision made by the Secretary of State, either on an application made for the purpose or on his own initiative.
(2)
In making a decision under subsection (1), the Secretary of State need not consider any issue that is not raised by the application or, as the case may be, did not cause him to act on his own initiative.
(3)
Regulations may prescribe the cases and circumstances in which, and the procedure by which, a decision may be made under this section.
(4)
Subject to subsection (5) and section 28ZC, a decision under this section shall take effect as from the date on which it is made or, where applicable, the date on which the application was made.
(5)
Regulations may provide that, in prescribed cases or circumstances, a decision under this section shall take effect as from such other date as may be prescribed.”
42Child support: appeals to appeal tribunals
“20Appeals to appeal tribunals
(1)
Where an application for a maintenance assessment is refused, the person who made that application shall have a right of appeal to an appeal tribunal against the refusal.
(2)
Where a maintenance assessment is in force—
(a)
the absent parent or person with care with respect to whom it was made; or
(b)
where the application for the assessment was made under section 7, either of them or the child concerned,
shall have a right of appeal to an appeal tribunal against the amount of the assessment or the date from which the assessment takes effect.
(3)
Where a maintenance assessment is cancelled, or an application for the cancellation of a maintenance assessment is refused—
(a)
the absent parent or person with care with respect to whom the maintenance assessment in question was, or remains, in force; or
(b)
where the application for that assessment was made under section 7, either of them or the child concerned,
shall have a right of appeal to an appeal tribunal against the cancellation or refusal.
(4)
A person with a right of appeal under this section shall be given such notice of that right and, in the case of a right conferred by subsection (1) or (3), such notice of the decision as may be prescribed.
(5)
Regulations may make—
(a)
provision as to the manner in which, and the time within which, appeals are to be brought; and
(b)
such provision with respect to proceedings before appeal tribunals as the Secretary of State considers appropriate.
(6)
The regulations may in particular make any provision of a kind mentioned in Schedule 5 to the Social Security Act 1998.
(7)
In deciding an appeal under this section, an appeal tribunal—
(a)
need not consider any issue that is not raised by the appeal; and
(b)
shall not take into account any circumstances not obtaining at the time when the decision or assessment appealed against was made.”
43Child support: decisions and appeals dependent on other cases
“Decisions and appeals dependent on other cases
28ZADecisions involving issues that arise on appeal in other cases
(1)
This section applies where—
(a)
a decision by the Secretary of State falls to be made under section 11, 12, 16 or 17 in relation to a maintenance assessment; and
(b)
an appeal is pending against a decision given in relation to a different maintenance assessment by a Child Support Commissioner or a court.
(2)
If the Secretary of State considers it possible that the result of the appeal will be such that, if it were already determined, it would affect the decision in some way—
(a)
he need not, except in such cases or circumstances as may be prescribed, make the decision while the appeal is pending;
(b)
he may, in such cases or circumstances as may be prescribed, make the decision on such basis as may be prescribed.
(3)
Where the Secretary of State acts in accordance with subsection (2)(b), following the determination of the appeal he shall if appropriate revise his decision (under section 16) in accordance with that determination.
(4)
For the purposes of this section, an appeal against a decision is pending if—
(a)
an appeal against the decision has been brought but not determined;
(b)
an application for leave to appeal against the decision has been made but not determined; or
(c)
in such circumstances as may be prescribed, an appeal against the decision has not been brought (or, as the case may be, an application for leave to appeal against the decision has not been made) but the time for doing so has not yet expired.
(5)
In paragraphs (a), (b) and (c) of subsection (4), any reference to an appeal, or an application for leave to appeal, against a decision includes a reference to—
(a)
an application for, or for leave to apply for, judicial review of the decision under section 31 of the M18Supreme Court Act 1981; or
(b)
an application to the supervisory jurisdiction of the Court of Session in respect of the decision.
28ZBAppeals involving issues that arise on appeal in other cases
(1)
This section applies where—
(a)
an appeal (“appeal A”) in relation to a decision falling within section 20(1) or (3), or an assessment falling within section 20(2), is made to an appeal tribunal, or from an appeal tribunal to a Child Support Commissioner; and
(b)
an appeal (“appeal B”) is pending against a decision given in a different case by a Child Support Commissioner or a court.
(2)
If the Secretary of State considers it possible that the result of appeal B will be such that, if it were already determined, it would affect the determination of appeal A, he may serve notice requiring the tribunal or Child Support Commissioner—
(a)
not to determine appeal A but to refer it to him; or
(b)
to deal with the appeal in accordance with subsection (4).
(3)
Where appeal A is referred to the Secretary of State under subsection (2)(a), following the determination of appeal B and in accordance with that determination, he shall if appropriate—
(a)
in a case where appeal A has not been determined by the tribunal, revise (under section 16) his decision which gave rise to that appeal; or
(b)
in a case where appeal A has been determined by the tribunal, make a decision (under section 17) superseding the tribunal’s decision.
(4)
Where appeal A is to be dealt with in accordance with this subsection, the appeal tribunal or Child Support Commissioner shall either—
(a)
stay appeal A until appeal B is determined; or
(b)
if the tribunal or Child Support Commissioner considers it to be in the interests of the appellant to do so, determine appeal A as if—
(i)
appeal B had already been determined; and
(ii)
the issues arising on appeal B had been decided in the way that was most unfavourable to the appellant.
In this subsection “the appellant” means the person who appealed or, as the case may be, first appealed against the decision or assessment mentioned in subsection (1)(a).
(5)
Where the appeal tribunal or Child Support Commissioner acts in accordance with subsection (4)(b), following the determination of appeal B the Secretary of State shall, if appropriate, make a decision (under section 17) superseding the decision of the tribunal or Child Support Commissioner in accordance with that determination.
(6)
For the purposes of this section, an appeal against a decision is pending if—
(a)
an appeal against the decision has been brought but not determined;
(b)
an application for leave to appeal against the decision has been made but not determined; or
(c)
in such circumstances as may be prescribed, an appeal against the decision has not been brought (or, as the case may be, an application for leave to appeal against the decision has not been made) but the time for doing so has not yet expired.
(7)
In this section—
(a)
the reference in subsection (1)(a) to an appeal to a Child Support Commissioner includes a reference to an application for leave to appeal to a Child Support Commissioner; and
(b)
any reference in paragraph (a), (b) or (c) of subsection (6) to an appeal, or to an application for leave to appeal, against a decision includes a reference to—
(i)
an application for, or for leave to apply for, judicial review of the decision under section 31 of the M19Supreme Court Act 1981; or
(ii)
an application to the supervisory jurisdiction of the Court of Session in respect of the decision.
(8)
Regulations may make provision supplementing that made by this section.”
44Child support: cases of error
“Cases of error
28ZCRestrictions on liability in certain cases of error
(1)
Subject to subsection (2), this section applies where—
(a)
the effect of the determination, whenever made, of an appeal to a Child Support Commissioner or the court (“the relevant determination”) is that the adjudicating authority’s decision out of which the appeal arose was erroneous in point of law; and
(b)
after the date of the relevant determination a decision falls to be made by the Secretary of State in accordance with that determination (or would, apart from this section, fall to be so made)—
(i)
with respect to an application for a maintenance assessment (made after the commencement date);
(ii)
as to whether to revise, under section 16, a decision (made after the commencement date) with respect to such an assessment; or
(iii)
on an application under section 17 (made after the commencement date) for a decision with respect to such an assessment to be superseded.
(2)
This section does not apply where the decision of the Secretary of State mentioned in subsection (1)(b)—
(a)
is one which, but for section 28ZA(2)(a), would have been made before the date of the relevant determination; or
(b)
is one made in pursuance of section 28ZB(3) or (5).
(3)
In so far as the decision relates to a person’s liability in respect of a period before the date of the relevant determination, it shall be made as if the adjudicating authority’s decision had been found by the Commissioner or court not to have been erroneous in point of law.
(4)
Subsection (1)(a) shall be read as including a case where—
(a)
the effect of the relevant determination is that part or all of a purported regulation or order is invalid; and
(b)
the error of law made by the adjudicating authority was to act on the basis that the purported regulation or order (or the part held to be invalid) was valid.
(5)
It is immaterial for the purposes of subsection (1)—
(a)
where such a decision as is mentioned in paragraph (b)(i) falls to be made; or
(b)
where such a decision as is mentioned in paragraph (b)(ii) or (iii) falls to be made on an application under section 16 or (as the case may be) section 17,
whether the application was made before or after the date of the relevant determination.
(6)
In this section—
“adjudicating authority” means the Secretary of State, or a child support officer;
“the commencement date” means the date of the coming into force of section 44 of the Social Security Act 1998; and
“the court” means the High Court, the Court of Appeal, the Court of Session, the High Court or Court of Appeal in Northern Ireland, the House of Lords or the Court of Justice of the European Community.
(7)
The date of the relevant determination shall, in prescribed cases, be determined for the purposes of this section in accordance with any regulations made for that purpose.
(8)
Regulations made under subsection (7) may include provision—
(a)
for a determination of a higher court to be treated as if it had been made on the date of a determination of a lower court or a Child Support Commissioner; or
(b)
for a determination of a lower court or a Child Support Commissioner to be treated as if it had been made on the date of a determination of a higher court.
28ZDCorrection of errors and setting aside of decisions
(1)
Regulations may make provision with respect to—
(a)
the correction of accidental errors in any decision or record of a decision given under this Act; and
(b)
the setting aside of any such decision in a case where it appears just to set the decision aside on the ground that—
(i)
a document relating to the proceedings in which the decision was given was not sent to, or was not received at an appropriate time by, a party to the proceedings or a party’s representative or was not received at an appropriate time by the body or person who gave the decision; or
(ii)
a party to the proceedings or a party’s representative was not present at a hearing related to the proceedings.
(2)
Nothing in subsection (1) shall be construed as derogating from any power to correct errors or set aside decisions which is exercisable apart from regulations made by virtue of that subsection.”
Vaccine damage payments
45Vaccine damage payments: decisions reversing earlier decisions
“3ADecisions reversing earlier decisions
(1)
Subject to subsection (2) below, any decision of the Secretary of State under section 3 above or this section, and any decision of an appeal tribunal under section 4 below, may be reversed by a decision made by the Secretary of State—
(a)
either within the prescribed period or in prescribed cases or circumstances; and
(b)
either on an application made for the purpose or on his own initiative.
(2)
In making a decision under subsection (1) above, the Secretary of State need not consider any issue that is not raised by the application or, as the case may be, did not cause him to act on his own initiative.
(3)
Regulations may prescribe the procedure by which a decision may be made under this section.
(4)
Such notice as may be prescribed by regulations shall be given of a decision under this section.
(5)
Except as provided by section 5(4) below, no payment under section 1(1) above shall be recoverable by virtue of a decision under this section.
(6)
In this section and sections 4 and 8 below “appeal tribunal” means an appeal tribunal constituted under Chapter I of Part I of the Social Security Act 1998.”
46Vaccine damage payments: appeals to appeal tribunals
“4Appeals to appeal tribunals
(1)
The claimant may appeal to an appeal tribunal against any decision of the Secretary of State under section 3 or 3A above.
(2)
Regulations may make—
(a)
provision as to the manner in which, and the time within which, appeals are to be brought; and
(b)
such provision with respect to proceedings before appeal tribunals as the Secretary of State considers appropriate.
(3)
The regulations may in particular make any provision of a kind mentioned in Schedule 5 to the Social Security Act 1998.
(4)
In deciding an appeal under this section, an appeal tribunal shall consider all the circumstances of the case (including any not obtaining at the time when the decision appealed against was made).”
47Vaccine damage payments: correction of errors etc
“7ACorrection of errors and setting aside of decisions
(1)
Regulations may make provision with respect to—
(a)
the correction of accidental errors in any decision or record of a decision under section 3, 3A or 4 of this Act; and
(b)
the setting aside of any such decision in a case where it appears just to set the decision aside on the ground that—
(i)
a document relating to the proceedings in which the decision was given was not sent to, or was not received at an appropriate time by, a party to the proceedings or a party’s representative or was not received at an appropriate time by the body or person who gave the decision; or
(ii)
a party to the proceedings or a party’s representative was not present at a hearing related to the proceedings.
(2)
Nothing in subsection (1) shall be construed as derogating from any power to correct errors or set aside decisions which is exercisable apart from regulations made by virtue of that subsection.”
Part IIContributions
Amendments of Contributions and Benefits Act
48Apportionment of payments etc. made for more than one earner
“(2A)
Regulations made for the purposes of subsection (2) above may provide that, where a payment is made or a benefit provided to or for the benefit of two or more earners, a proportion (determined in such manner as may be prescribed) of the amount or value of the payment or benefit shall be attributed to each earner.”
49Payments on account of directors' contributions
“(4)
Subsection (5) below applies to regulations made for the purposes of subsection (2) above which make special provision with respect to the earnings periods of directors and former directors of companies.
(5)
Regulations to which this subsection applies may make provision—
(a)
for enabling companies, and directors and former directors of companies, to pay on account of any earnings-related contributions that may become payable by them such amounts as would be payable by way of such contributions if the special provision had not been made; and
(b)
for requiring any payments made in accordance with the regulations to be treated, for prescribed purposes, as if they were the contributions on account of which they were made.”
50Payments treated as remuneration and earnings
(1)
“(4)
For the purposes of section 3 above there shall be treated as remuneration derived from an employed earner’s employment—
(a)
any gain on which the earner is chargeable to tax by virtue of section 135 (gains by directors and employees from share options) of the Income and Corporation Taxes Act 1988 (“the 1988 Act”);
(b)
any sum paid (or treated as paid) to or for the benefit of the earner which is chargeable to tax by virtue of section 313 of the 1988 Act (taxation of consideration for certain restrictive undertakings).”
(2)
“(6)
For the purposes of section 3 above regulations may make provision for treating as remuneration derived from an earner’s employment any amount on which the earner is, by virtue of any provision of sections 140A to 140H of the 1988 Act, chargeable to income tax under Schedule E in respect of an acquisition of shares or an interest in shares.”
(3)
Subsection (1) above, so far as relating to a sum which is chargeable to tax by virtue of section 313 of the Income and Corporation Taxes Act 1988, shall have effect in relation to any undertaking given on or after 10th July 1997.
(4)
Regulations under subsection (6) of section 4 of the Contributions and Benefits Act (as inserted by subsection (2) above)—
(a)
shall not be made before the passing of the Finance Act 1998; but
(b)
may make provision having effect in relation to acquisitions on or after 6th April 1998.
F2951Class 1 contributions
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
52Class 1A contributions
“(b)
if paragraph (a) above does not apply, the person who, if the benefit in respect of which the Class 1A contribution is payable were earnings in respect of which Class 1 contributions would be payable, would be liable to pay the secondary Class 1 contribution.”
53Class 1B contributions
“Class 1B contributions
10AClass 1B contributions
(1)
Where for any tax year a person is accountable to the Inland Revenue in respect of income tax on emoluments of his employees in accordance with a PAYE settlement agreement, a Class 1B contribution shall be payable by him for that tax year in accordance with this section.
(2)
The Class 1B contribution referred to in subsection (1) above is payable in respect of—
(a)
the amount of any of the emoluments included in the PAYE settlement agreement which are chargeable emoluments; and
(b)
the total amount of income tax in respect of which the person is accountable for the tax year in accordance with the PAYE settlement agreement.
(3)
The amount of the Class 1B contribution referred to in subsection (1) above shall be the Class 1B percentage of the aggregate of the amounts mentioned in paragraphs (a) and (b) of subsection (2) above.
(4)
Emoluments are chargeable emoluments for the purposes of subsection (2) above if, apart from section 6(2A) or 10(8A) above, the person accountable in accordance with the PAYE settlement agreement would be liable or entitled to pay secondary Class 1 contributions or Class 1A contributions in respect of them.
(5)
Where—
(a)
the PAYE settlement agreement was entered into after the beginning of the tax year; and
(b)
Class 1 contributions were due in respect of any emoluments before it was entered into,
those emoluments shall not be taken to be included in the PAYE settlement agreement.
(6)
For the purposes of subsection (3) above the Class 1B percentage shall be 12.2 per cent, but the percentage is subject to alteration under section 143A of the Administration Act.
(7)
Regulations may provide for persons to be excepted in prescribed circumstances from liability to pay Class 1B contributions.”
54Contributions paid in error
“19AClass 1, 1A or 1B contributions paid in error
(1)
This section applies where—
(a)
payments by way of Class 1, Class 1A or Class 1B contributions are made in respect of earnings paid to or for the benefit of an earner (or in respect of a benefit made available to an earner) in 1998-99 or a subsequent tax year (“year 1”);
(b)
the payments are made in error, in that the employment from which the earnings are derived (or by reason of which the benefit is made available) is not employed earner’s employment; and
(c)
the person making the payments has not been notified of the error by the Secretary of State before the end of the tax year following year 1 (“year 2”).
(2)
After the end of year 2 the earner shall, except in such circumstances as may be prescribed, be treated for all purposes relating to—
(a)
contributions and contributory benefits; and
(b)
statutory sick pay and statutory maternity pay,
as if the earnings were derived from (or the benefit were made available by reason of) employed earner’s employment.”
55Recovery of primary Class 1 contributions by secondary contributors
In paragraph 3 of Schedule 1 to the Contributions and Benefits Act (supplementary provisions as to contributions)—
(a)
in sub-paragraph (3), for the words from “and notwithstanding” to “any enactment” there shall be substituted the words “and, subject to sub-paragraph (4) below but notwithstanding any other provision in any enactment”;
(b)
“(4)
Sub-paragraph (5) below applies in a case where—
(a)
a person (“the employee”) ceases in a particular tax year (“the cessation year”) to be employed by a particular employer (“the employer”); and
(b)
the employee receives from the employer in the cessation year, after the cessation of the employment, earnings in a form other than money (“non-monetary earnings”).
(5)
If and to the extent that regulations so provide, the employer may recover from the employee in such manner as may be prescribed any primary Class 1 contributions paid or to be paid by him on the employee’s behalf in respect of—
(a)
the non-monetary earnings mentioned in sub-paragraph (4) above; or
(b)
any non-monetary earnings received by the employee from the employer in the cessation year before the cessation of the employment,
which he was unable to recover by deduction from the employee’s earnings.”
56Contributions returns
(1)
In sub-paragraph (3) of paragraph 7 of Schedule 1 to the Contributions and Benefits Act—
(a)
for the words “is liable to” there shall be substituted the words “has been required to pay”; and
(b)
for the words “be liable to” there shall be substituted the words “be required to pay”.
(2)
“7A
(1)
This paragraph applies where paragraph 7 above applies; and in this paragraph “contributions return” has the same meaning as in that paragraph.
(2)
Without prejudice to paragraph 7(2) above or to the powers of the Inland Revenue to penalise omissions or errors in returns, regulations may provide for the Secretary of State to impose penalties in respect of a person who, in making a contributions return, fraudulently or negligently—
(a)
fails to provide any information or computation that he is required to provide; or
(b)
provides any such information or computation that is incorrect.
(3)
Regulations under sub-paragraph (2) above shall—
(a)
prescribe the rates of penalty, or provide for how they are to be ascertained;
(b)
provide for the penalty to be imposed by the Secretary of State within six years after the date on which the penalty is incurred;
(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 Secretary of State, in his discretion, to mitigate or to remit the penalty, or to stay or to compound any proceedings for it.”
57Collection of contributions by Secretary of State
“Collection of contributions by Secretary of State
7B
(1)
Regulations may provide that, in such cases or circumstances as may be prescribed—
(a)
contributions payable under Part I of this Act shall be paid to the Secretary of State (and not to the Inland Revenue); and
(b)
the Secretary of State shall be responsible for the collection of such contributions, and generally for the relevant administration.
(2)
Regulations under this paragraph may, in particular—
(a)
provide for returns to be made to the Secretary of State by such date as may be prescribed;
(b)
prescribe the form in which returns are to be made, or provide for returns to be made in such form as the Secretary of State may approve;
(c)
prescribe the manner in which contributions are to be paid, or provide for contributions to be paid in such manner as the Secretary of State may approve;
(d)
prescribe the due date for the payment of contributions;
(e)
subject to sub-paragraph (4) below, provide for interest to be charged by the Secretary of State on contributions that are not paid by the due date, and for enabling such interest to be remitted or repaid;
(f)
provide for interest to be paid on contributions that fall to be repaid;
(g)
provide for determining the date from which interest to be charged or paid pursuant to regulations under paragraph (e) or (f) above is to be calculated;
(h)
provide for penalties to be imposed in respect of a person who—
(i)
fails to submit, within the time allowed, a return required to be made in accordance with regulations under paragraph (a) above;
(ii)
in making such a return, fraudulently or negligently fails to provide any information or computation that he is required to provide;
(iii)
in making such a return, fraudulently or negligently provides any incorrect information or computation; or
(iv)
fails to pay Class 2 contributions by the due date;
(i)
provide for a penalty imposed pursuant to regulations under paragraph (h) above to carry interest from the date on which it becomes payable until payment.
(3)
Where—
(a)
a decision relating to contributions falls to be made under section 8, 9, 10, 12, 14 or 15 of the Social Security Act 1998; and
(b)
the decision will affect a person’s liability for, or the amount of, any interest due in respect of those contributions,
regulations under sub-paragraph (2)(e) above shall not require any such interest to be paid until the decision has been made.
(4)
Regulations under sub-paragraph (2)(e) above may provide that, in such cases or circumstances as may be prescribed, interest under those regulations may be charged by the Inland Revenue (instead of the Secretary of State) as if the regulations were made by virtue of paragraph 6 above.
(5)
Regulations under sub-paragraph (2)(h) above shall—
(a)
prescribe the rates of penalty, or provide for how they are to be ascertained;
(b)
subject to sub-paragraph (6) below, provide for the penalty to be imposed by the Secretary of State—
(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 Secretary of State, in his discretion, to mitigate or to remit the penalty, or to stay or to compound any proceedings for it.
(6)
Regulations under sub-paragraph (2)(h)(ii) or (iii) above may provide that, in such cases or circumstances as may be prescribed, penalties under those regulations may be imposed by the Inland Revenue (instead of the Secretary of State) as if the return in question were a contributions return within the meaning of paragraph 7 above.
(7)
Section 12 above shall not apply in relation to Class 2 contributions in respect of which the Secretary of State charges interest or imposes a penalty pursuant to regulations under paragraph (e) or (h) of sub-paragraph (2) above.
(8)
Interest or penalties may be charged by virtue of regulations under this paragraph in respect of a period before the coming into force of section 57 of the Social Security Act 1998 but only to the extent that interest or penalties would have been chargeable if the contributions in question had been recoverable, in respect of that period, by virtue of regulations under paragraph 6 above.
(9)
Any reference to contributions in sub-paragraph (1) above shall be construed as including a reference to any interest or penalty payable, in respect of contributions, by virtue of regulations under paragraph (e) or (h) of sub-paragraph (2) above.
(10)
The rate of interest applicable for any purpose of this paragraph shall be the rate from time to time prescribed under section 178 of the M20Finance Act 1989 for the corresponding purpose of paragraph 6 above.”
F3058Interest and penalties chargeable concurrently with Inland Revenue
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
59Levy of Class 4 contributions with income tax
(1)
Schedule 2 to the Contributions and Benefits Act (levy of Class 4 contributions with income tax) and Schedule 2 to the M21Social Security Contributions and Benefits (Northern Ireland) Act 1992 (corresponding provision for Northern Ireland) shall each be amended as follows.
(2)
“subject to deduction for any allowance—
(a)
the amount of which falls to be given by way of discharge or repayment of income tax under section 141 of the Act of 1990; and
(b)
which arises from activities of any relevant trade, profession or vocation.”
(3)
In paragraph 3, sub-paragraph (1)(b) shall cease to have effect.
(4)
In sub-paragraph (2) of paragraph 4, for the words “may either be charged” to the end there shall be substituted the words “shall be charged on him separately”.
(5)
In sub-paragraph (1) of paragraph 6—
(a)
for the words from “Sections 86” to “fault)” there shall be substituted the words “Section 86 of the M22Taxes Management Act 1970 (interest on overdue tax)”;
(b)
for the words “as they apply” there shall be substituted the words “as it applies”.
F31(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendments of Administration Act
60Breach of regulations
“113Breach of regulations
(1)
Regulations and schemes under any of the Acts to which section 110 above applies may provide that any person who contravenes, or fails to comply with, any provision contained in regulations made under that Act—
(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 that Act.
(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 Secretary of State—
(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 Secretary of State, in his 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.”
61Offences and penalties relating to contributions
“114Offences relating to contributions
(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.
114APenalties relating to contributions
(1)
If a person fails to pay, at or within the time prescribed for the purpose, any contribution which he is liable to pay, he shall be liable to a penalty.
(2)
If a person fails to pay, at or within the time prescribed for the purpose, any sums which he is required by regulations made by virtue of paragraph 6 or 7B of Schedule 1 to the Contributions and Benefits Act to pay, he shall be liable to a penalty under subsection (1) above without proof of his failure so to pay any particular contribution.
(3)
For the purposes of subsection (1) above, regulations 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 Secretary of State—
(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 Secretary of State, in his discretion, to mitigate or to remit any such penalty, or to stay or to compound any proceedings for a penalty.
(4)
Subsection (1) above does not apply—
(a)
to any failure by a person in respect of which he has been convicted of an offence under section 114(1) above; or
(b)
to Class 4 contributions recoverable by the Inland Revenue.”
62Evidence of non-payment
(1)
“(1)
A certificate of an authorised officer that any amount by way of contributions, or by way of interest or penalty in respect of contributions, which a person is liable to pay to the Secretary of State for any period has not been paid—
(a)
to the officer; or
(b)
to the best of his knowledge and belief, to any other person to whom it might lawfully be paid,
shall until the contrary is proved be sufficient evidence in any proceedings before any court that the sum mentioned in the certificate is unpaid and due.
(1A)
Subsection (2) below applies with respect to any period during which, under regulations made by virtue of paragraph 6(1) of Schedule 1 to the Contributions and Benefits Act (deduction with PAYE), contributions fall to be paid in like manner as income tax.”
F33(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)
In subsection (4) of that section, the words “for a particular contribution card or”, and the words “the card in question or”, shall cease to have effect.
F33(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63Recovery of contributions etc
“121ARecovery of contributions etc. in England and Wales
(1)
If—
(a)
a person is served at any time with a copy of a certificate under section 118(1) above; and
(b)
he neglects or refuses to pay the contributions, interest or penalty to which the certificate relates within 30 days of that time,
an authorised officer may distrain upon the goods and chattels of that person (“the person in default”).
(2)
For the purpose of levying any such distress, a justice of the peace, on being satisfied by information on oath that there is reasonable ground for believing that the conditions in subsection (1) above are fulfilled, may issue a warrant in writing authorising the authorised officer to enter in the daytime, by force if necessary, any premises to which this section applies, calling on the assistance of any constable.
(3)
Every such constable shall, when so required, assist the authorised officer in the execution of the warrant and in levying the distress in the premises.
(4)
A warrant to enter premises by force shall be executed by the authorised officer, or under his direction and in his presence.
(5)
A distress levied by the authorised officer shall be kept for five days, and any costs or charges shall be borne by the person in default.
(6)
If the person in default does not pay the sum due, together with the costs and charges, the distress shall be appraised by one or more independent persons appointed by the authorised officer, and shall be sold by public auction by the authorised officer for payment of the sum due and all costs and charges.
(7)
Any surplus arising from the distress, after the deduction of the costs and charges and of the sum due, shall be paid to the owner of the goods distrained.
(8)
Regulations may make provision with respect to—
(a)
the fees chargeable on or in connection with the levying of distress; and
(b)
the costs and charges recoverable where distress has been levied.
(9)
In this section “authorised officer” means an officer of the Secretary of State authorised by him for the purposes of this section.
(10)
The premises to which this section applies are premises where an authorised officer has reasonable grounds for believing that—
(a)
any persons are employed; or
(b)
a trade or business is being carried on;
but this section does not apply to a private dwelling-house unless an authorised officer has reasonable grounds for believing that a trade or business is being carried on from the dwelling-house and that the trade or business is not also being carried on from premises other than a dwelling-house.
121BRecovery of contributions etc. in Scotland
(1)
Where any contributions, interest or penalty remains unpaid 30 days after the service of a certificate under section 118(1) above, an authorised officer may apply to the sheriff for the grant of a summary warrant authorising the recovery of the amount remaining unpaid by any of the following diligences—
(a)
a poinding and sale in accordance with Schedule 5 to the M23Debtors (Scotland) Act l987;
(b)
an earnings arrestment;
(c)
an arrestment and action of furthcoming or sale.
(2)
An application under subsection (1) above shall be accompanied by—
(a)
a copy of the certificate served under section 118(1) above; and
(b)
a certificate by the authorised officer—
(i)
stating that the certificate was served on the person specified in the application;
(ii)
stating that the amount specified in the certificate, or any part of that amount, remains unpaid at the date of the application.
(3)
A summary warrant granted on an application under subsection (1) above shall be in such form as may be prescribed by Act of Sederunt.
(4)
Subject to subsection (5) below and without prejudice to paragraphs 25 to 34 of Schedule 5 to the Debtors (Scotland) Act 1987 (expenses of poinding and sale), the sheriff officer’s fees, together with the outlays necessarily incurred by him, in connection with the execution of a summary warrant granted on an application under subsection (1) above shall be chargeable against the debtor.
(5)
No fee shall be chargeable by the sheriff officer against the debtor for collecting, and accounting to the Secretary of State, for sums paid to him by the debtor in respect of the amount owing.
(6)
In this section “authorised officer” means an officer of the Secretary of State authorised by him for the purposes of this section.”
64Liability of directors etc. for company’s contributions
“121CLiability of directors etc. for company’s contributions
(1)
This section applies to contributions which a body corporate is liable to pay, where—
(a)
the body corporate has failed to pay the contributions at or within the time prescribed for the purpose; and
(b)
the failure appears to the Secretary of State to be attributable to fraud or neglect on the part of one or more individuals who, at the time of the fraud or neglect, were officers of the body corporate (“culpable officers”).
(2)
The Secretary of State may issue and serve on any culpable officer a notice (a “personal liability notice”)—
(a)
specifying the amount of the contributions to which this section applies (“the specified amount”);
(b)
requiring the officer to pay to the Secretary of State—
(i)
a specified sum in respect of that amount; and
(ii)
specified interest on that sum; and
(c)
where that sum is given by paragraph (b) of subsection (3) below, specifying the proportion applied by the Secretary of State for the purposes of that paragraph.
(3)
The sum specified in the personal liability notice under subsection (2)(b)(i) above shall be—
(a)
in a case where there is, in the opinion of the Secretary of State, no other culpable officer, the whole of the specified amount; and
(b)
in any other case, such proportion of the specified amount as, in the opinion of the Secretary of State, the officer’s culpability for the failure to pay that amount bears to that of all the culpable officers taken together.
(4)
In assessing an officer’s culpability for the purposes of subsection (3)(b) above, the Secretary of State may have regard both to the gravity of the officer’s fraud or neglect and to the consequences of it.
(5)
The interest specified in the personal liability notice under subsection (2)(b)(ii) above shall be at the prescribed rate and shall run from the date on which the notice is issued.
(6)
An officer who is served with a personal liability notice shall be liable to pay to the Secretary of State the sum and the interest specified in the notice under subsection (2)(b) above.
(7)
Where, after the issue of one or more personal liability notices, the amount of contributions to which this section applies is reduced by a payment made by the body corporate—
(a)
the amount that each officer who has been served with such a notice is liable to pay under this section shall be reduced accordingly;
(b)
the Secretary of State shall serve on each such officer a notice to that effect; and
(c)
where the reduced liability of any such officer is less than the amount that he has already paid under this section, the difference shall be repaid to him together with interest on it at the prescribed rate.
(8)
Any amount paid under a personal liability notice shall be deducted from the liability of the body corporate in respect of the specified amount.
(9)
In this section—
“contributions” includes any interest or penalty in respect of contributions;
“officer”, in relation to a body corporate, means—
(a)
any director, manager, secretary or other similar officer of the body corporate, or any person purporting to act as such; and
(b)
in a case where the affairs of the body corporate are managed by its members, any member of the body corporate exercising functions of management with respect to it or purporting to do so;
“the prescribed rate” means the rate from time to time prescribed by regulations under section 178 of the M24Finance Act 1989 for the purposes of the corresponding provision of Schedule 1 to the Contributions and Benefits Act, that is to say—
(a)
in relation to subsection (5) above, paragraph 6(2)(a);
(b)
in relation to subsection (7) above, paragraph 6(2)(b).
121DAppeals in relation to personal liability notices
(1)
No appeal shall lie in relation to a personal liability notice except as provided by this section.
(2)
An individual who is served with a personal liability notice may appeal to an appeal tribunal against the Secretary of State’s decision as to the issue and content of the notice on the ground that—
(a)
the whole or part of the amount specified under subsection (2)(a) of section 121C above (or the amount so specified as reduced under subsection (7) of that section) does not represent contributions to which that section applies;
(b)
the failure to pay that amount was not attributable to any fraud or neglect on the part of the individual in question;
(c)
the individual was not an officer of the body corporate at the time of the alleged fraud or neglect; or
(d)
the opinion formed by the Secretary of State under subsection (3)(a) or (b) of that section was unreasonable.
(3)
The Secretary of State shall give a copy of any notice of an appeal under this section, within 28 days of the giving of the notice, to each other individual who has been served with a personal liability notice.
(4)
On an appeal under this section, the burden of proof as to any matter raised by a ground of appeal shall be on the Secretary of State.
(5)
Where an appeal under this section—
(a)
is brought on the basis of evidence not considered by the Secretary of State, or on the ground mentioned in subsection (2)(d) above; and
(b)
is not allowed on some other basis or ground,
the appeal tribunal shall either dismiss the appeal or remit the case to the Secretary of State, with any recommendations it sees fit to make, for him to consider whether to revise his decision as to the issue and content of the personal liability notice.
(6)
In this section—
“appeal tribunal” means an appeal tribunal constituted under Chapter I of Part I of the Social Security Act 1998;
“officer”, in relation to a body corporate, has the same meaning as in section 121C above;
“personal liability notice” has the meaning given by subsection (2) of that section;
“revise” means revise under section 9 of the Social Security Act 1998.”
65Class 1B contributions: supplemental
F34(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)
“(ca)
in the case of Class 1B contributions, 0.9 per cent of the amount estimated to be the aggregate of the emoluments and the amounts of income tax in respect of which those contributions were paid;”.
66Payments of certain contributions out of the Consolidated Fund
(1)
Subsection (4) of section 163 of the Administration Act (general financial arrangements) shall have effect, and shall be deemed always to have had effect, as if—
(a)
for the words “a secondary contributor” there were substituted the words “any person”; and
(b)
after the words “any secondary Class 1 contributions” there were inserted the words “, or any Class 1A contributions,”.
(2)
Subsection (2) of section 1 of the M25Social Security (Miscellaneous Provisions) Act 1977 (from which subsection (4) of section 163 is derived) shall be deemed to have had effect with the same amendments as from the commencement of the M26Social Security (Contributions) Act 1991.
Part IIIBenefits
Amendments etc. of Contributions and Benefits Act
67Daily rate of maternity allowance
In subsection (5) of section 35 of the Contributions and Benefits Act (maternity allowance), for paragraphs (a) and (b) there shall be substituted the words “the amount payable by way of that allowance for any day shall be taken as one seventh of the weekly rate of the allowance”.
68Rates of short-term incapacity benefit
“(4)
The weekly rate of the basic pension shall be £64.70 except that, so far as the sum is relevant for the purpose of calculating the lower rate of short-term incapacity benefit under section 30B(3) above, it shall be £62.05.
In this subsection “the lower rate” means the rate payable for the first 196 days of entitlement in any period of incapacity for work.”
69Validation of certain housing benefit determinations
(1)
Subject to subsections (3) and (4) below, in so far as a housing benefit determination made before 18th August 1997 purported to determine that housing benefit was payable in respect of—
(a)
charges for medical care, nursing care or personal care; or
(b)
charges for general counselling or any other support services,
it shall be deemed to have been validly made if, on the assumption mentioned in subsection (2) below, it would have been so made.
(2)
The assumption is that, at all material times, such charges as are mentioned in subsection (1) above were eligible to be met by housing benefit where the claimant’s right to occupy the dwelling was conditional on his payment of the charges.
(3)
Where the effect of a review carried out on or after 18th August 1997 was to revise the amount of housing benefit payable in respect of any validated charges—
(a)
the revision shall be deemed not to have been validly made in so far as it had the effect of increasing that amount; and
(b)
housing benefit shall cease to be payable in respect of those charges as from the beginning of the period for which the first payment of the revised amount of benefit was made.
(4)
Housing benefit shall not be payable in respect of any validated charges for any period falling after—
(a)
5th April 1998 where the rent is payable at intervals of a whole number of weeks; and
(b)
31st March 1998 in any other case.
(5)
In this section—
“the dwelling”, in relation to a housing benefit determination, means the dwelling in respect of which the determination was made;
“housing benefit determination” means a determination under section 130 of the Contributions and Benefits Act or the corresponding provisions of the M27Social Security Act 1986, or a decision on a review of such a determination;
“medical care” includes treatment or counselling related to mental disorder, mental handicap, physical disablement or past or present alcohol or drug dependence;
“personal care” includes assistance at meal-times or with personal appearance or hygiene;
“validated charges” means charges in respect of which housing benefit is payable only by virtue of subsection (1) above.
70Discretionary payments out of social fund
(1)
“(1)
There may be made out of the social fund, in accordance with this Part of this Act—
(a)
payments of prescribed amounts, whether in respect of prescribed items or otherwise, to meet, in prescribed circumstances, maternity expenses and funeral expenses; and
(b)
payments by way of community care grant, crisis loan or budgeting loan to meet other needs in accordance with directions given or guidance issued by the Secretary of State.”
(2)
“(5)
In this Part—
“budgeting loan” means a loan awarded in circumstances specified in directions issued by the Secretary of State for the purpose of defraying an intermittent expense;
“community care grant” means a grant awarded in circumstances so specified for the purpose of meeting a need for community care;
“crisis loan” means a loan awarded in circumstances so specified for the purpose of meeting an immediate short term need;
and any reference in this subsection to meeting a need or defraying an expense includes a reference to helping to meet the need or to defray the expense.”
71Budgeting loans: criteria for making awards
(1)
In subsection (1) of section 140 of the Contributions and Benefits Act (social fund: principles of determination), after the word “award” there shall be inserted the words “of a community care grant or a crisis loan”.
(2)
“(1A)
Subject to subsection (2) below, in determining whether to make an award of a budgeting loan to the applicant, or the amount or value to be awarded, an appropriate officer shall have regard to—
(a)
such of the applicant’s personal circumstances as are of a description specified in directions issued by the Secretary of State; and
(b)
the criteria specified in paragraphs (b) to (e) of subsection (1) above;
but where the criterion mentioned in paragraph (a) above would preclude the award of such a loan, the appropriate officer shall have regard instead to such other criterion as may be specified in directions so issued.”
(3)
“(aa)
that in circumstances specified in the direction an application for an award of a community care grant may be treated as an application for an award of a crisis loan, and vice versa;”.
72Power to reduce child benefit for lone parents
(1)
Regulations may revoke any provision of regulations which prescribes a higher rate of child benefit in the case of a lone parent, notwithstanding anything in section 145(4) of the Contributions and Benefits Act (which precludes regulations from prescribing a rate lower than the rate it replaces).
(2)
In this section “lone parent” means a parent who—
(a)
has no spouse or is not living with his spouse; and
(b)
is not living with any other person as his spouse.
73Statutory sick pay not precluded by maternity allowance
In paragraph 2(d) of Schedule 11 to the Contributions and Benefits Act (circumstances in which periods of entitlement to statutory sick pay do not arise), the words “(ii) she was entitled to a maternity allowance, or” shall cease to have effect.
Amendments of Administration Act
74Provision of information
“(hh)
for requiring such person as may be prescribed in accordance with the regulations to furnish any information or evidence needed for a determination whether a decision on an award of benefit to which this section applies—
(i)
should be revised under section 9 of the Social Security Act 1998; or
(ii)
should be superseded under section 10 of that Act;”.
75Overpayments out of social fund
(1)
“71ZAOverpayments out of social fund
(1)
Subject to subsection (2) below, section 71 above shall apply in relation to social fund payments to which this section applies as it applies in relation to payments made in respect of benefits to which that section applies.
(2)
Section 71 above as it so applies shall have effect as if—
(a)
in paragraph (a) of subsection (5) and subsection (5A), for the words “reversed or varied on an appeal or has been revised under section 9 or superseded under section 10” there were substituted the words “revised on a review under section 38”;
(b)
in paragraph (b) of subsection (5), for the words “on the appeal or under that section” there were substituted the words “on the review”; and
(c)
subsections (7), (10A) and (10B) were omitted.
(3)
This section applies to social fund payments such as are mentioned in section 138(1)(b) of the Contributions and Benefits Act.”
(2)
This section applies where such a determination as is mentioned in section 71(1) of the Administration Act is made in relation to a social fund payment—
(a)
to which section 71ZA of that Act applies; and
(b)
which is made on or after the day on which this section comes into force.
76Power to anticipate pensions up-rating order
“155APower to anticipate pensions up-rating order
(1)
This section applies where a statement is made in the House of Commons by or on behalf of the Secretary of State which specifies—
(a)
the amounts by which he proposes, by an order under section 150 above, to increase—
(i)
the weekly sums that are payable by way of retirement pension; or
(ii)
the amount of graduated retirement benefit payable for each unit of graduated contributions; and
(b)
the date on which he proposes to bring the increases into force (“the commencing date”).
(2)
Where, before the commencing date and after the date on which the statement is made, an award is made of a retirement pension or a graduated retirement benefit, the award either may provide for the pension or benefit to be paid as from the commencing date at the increased rate or may be expressed in terms of the rate appropriate at the date of the award.”
Part IVMiscellaneous and supplemental
77Pilot schemes
(1)
Any regulations to which this subsection applies may be made so as to have effect for a specified period not exceeding 12 months.
(2)
Any regulations which, by virtue of subsection (1) above, are to have effect for a limited period are referred to in this section as “a pilot scheme”.
(3)
A pilot scheme may provide that its provisions are to apply only in relation to—
(a)
one or more specified areas or localities;
(b)
one or more specified classes of person;
(c)
persons selected—
(i)
by reference to prescribed criteria; or
(ii)
on a sampling basis.
(4)
A pilot scheme may make consequential or transitional provision with respect to the cessation of the scheme on the expiry of the specified period.
(5)
A pilot scheme (“the previous scheme”) may be replaced by a further pilot scheme making the same, or similar, provision (apart from the specified period) to that made by the previous scheme.
(6)
In so far as a pilot scheme would, apart from this subsection, have the effect of—
(a)
treating as capable of work any person who would not otherwise be so treated; or
(b)
reducing the total amount of benefit that would otherwise be payable to any person,
it shall not apply in relation to that person.
(7)
Subsection (1) above applies to—
(a)
regulations made under section 171D of the Contributions and Benefits Act (incapacity for work: persons treated as incapable of work); and
(b)
in so far as they are consequential on or supplementary to any such regulations, regulations made under any of the provisions mentioned in subsection (8) below.
(8)
The provisions are—
(a)
subsection (5)(a) of section 22 of the Contributions and Benefits Act (earnings factors);
(b)
section 30C of that Act (incapacity benefit);
(c)
sections 68 and 69 of that Act (severe disablement allowance);
(d)
subsection (1)(e) of section 124 of that Act (income support) and, so far as relating to income support, subsection (1) of section 135 of that Act (the applicable amount);
(e)
Part XIIA of that Act (incapacity for work);
(f)
section 61A of the Administration Act and section 31 above (incapacity for work).
(9)
A statutory instrument containing (whether alone or with other provisions) a pilot scheme shall not be made unless a draft of the instrument has been laid before Parliament and approved by a resolution of each House of Parliament.
78Expenditure for facilitating transfer of functions etc
(1)
The Secretary of State and the Commissioners of Inland Revenue may incur expenditure in doing anything which in his or their opinion is appropriate for the purpose of facilitating either of the following things, namely—
(a)
the transfer to the Commissioners of such of the functions of the Secretary of State as are exercisable by the Contributions Agency; and
(b)
the exercise by the Commissioners of those functions.
(2)
The powers conferred by subsection (1) above—
(a)
shall be exercisable whether or not Parliament has given any approval on which either of the things there mentioned depends; and
(b)
shall be without prejudice to any power conferred otherwise than by virtue of that subsection.
(3)
Any expenditure incurred under this section shall be defrayed out of money provided by Parliament.
(4)
In its application to Northern Ireland, this section shall have effect with the following modifications, namely—
(a)
for the first reference to the Secretary of State there shall be substituted a reference to the Department of Health and Social Services for Northern Ireland;
(b)
for the reference to such of the functions of the Secretary of State as are exercisable by the Contributions Agency there shall be substituted a reference to such of the functions of that Department as correspond to those functions; and
(c)
for the reference to money provided by Parliament there shall be substituted a reference to money appropriated by Measure of the Northern Ireland Assembly.
79Regulations and orders
(1)
Subject to subsection (2) below and paragraph 6 of Schedule 4 to this Act, regulations under this Act shall be made by the Secretary of State.
(2)
Regulations with respect to proceedings before the Commissioners (whether for the determination of any matter or for leave to appeal to or from the Commissioners) shall be made by the Lord Chancellor; and where the Lord Chancellor proposes to make regulations under this Act it shall be his duty to consult the Lord Advocate with respect to the proposal.
(3)
Powers under this Act to make regulations or orders are exercisable by statutory instrument.
(4)
Any power conferred by this Act to make regulations or orders may be exercised—
(a)
either in relation to all cases to which the power extends, or in relation to those cases subject to specified exceptions, or in relation to any specified cases or classes of case;
(b)
so as to make, as respects the cases in relation to which it is exercised—
(i)
the full provision to which the power extends or any less provision (whether by way of exception or otherwise);
(ii)
the same provision for all cases in relation to which the power is exercised, or different provision for different cases or different classes of case or different provision as respects the same case or class of case for different purposes of this Act;
(iii)
any such provision either unconditionally or subject to any specified condition;
and where such a power is expressed to be exercisable for alternative purposes it may be exercised in relation to the same case for any or all of those purposes.
(5)
Powers to make regulations for the purposes of any one provision of this Act are without prejudice to powers to make regulations for the purposes of any other provision.
(6)
Without prejudice to any specific provision in this Act, a power conferred by this Act to make regulations includes power to make thereby such incidental, supplementary, consequential or transitional provision as appears to the authority making the regulations to be expedient for the purposes of those regulations.
(7)
Without prejudice to any specific provisions in this Act, a power conferred by any provision of this Act to make regulations includes power to provide for a person to exercise a discretion in dealing with any matter.
(8)
Any power conferred by this Act to make regulations relating to housing benefit or council tax benefit shall include power to make different provision for different areas or different authorities.
(9)
In this section “Commissioner” has the same meaning as in Chapter II of Part I.
80Parliamentary control of regulations
(1)
Subject to the provisions of this section, a statutory instrument containing (whether alone or with other provisions) regulations under—
(a)
section 7, 12(2) or 72 above; or
(b)
paragraph 12 of Schedule 1, paragraph 9 of Schedule 2 or paragraph 2 of Schedule 5 to this Act,
shall not be made unless a draft of the instrument has been laid before Parliament and been approved by a resolution of each House of Parliament.
(2)
A statutory instrument—
(a)
which contains (whether alone or with other provisions) regulations made under this Act by the Secretary of State; and
(b)
which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament,
shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(3)
A statutory instrument—
(a)
which contains (whether alone or with other provisions) regulations made under this Act by the Lord Chancellor; and
(b)
which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament,
shall be subject to annulment in pursuance of a resolution of either House of Parliament.
81Reports by Secretary of State
(1)
The Secretary of State shall prepare, either annually or at such times or intervals as may be prescribed, a report on the standards achieved by the Secretary of State in the making of decisions against which an appeal lies to an appeal tribunal constituted under Chapter I of Part I.
(2)
A copy of every such report shall be laid before each House of Parliament.
82Financial provisions
(1)
There shall be paid out of money provided by Parliament—
(a)
any expenditure incurred by the Secretary of State or the Lord Chancellor under or by virtue of this Act; and
(b)
any increase attributable to this Act in the sums which under any other Act are payable out of money so provided.
(2)
There shall be paid out of or into the Consolidated Fund any increase attributable to this Act in the sums which under any other Act are payable out of or into that Fund.
83Transitory provisions
Schedule 6 to this Act (which contains transitory provisions) shall have effect.
84Interpretation: general
In this Act—
“the Administration Act” means the M28Social Security Administration Act 1992;
“the Child Support Act” means the M29Child Support Act 1991;
“the Contributions and Benefits Act” means the M30Social Security Contributions and Benefits Act 1992;
“the Jobseekers Act” means the M31Jobseekers Act 1995;
“the Vaccine Damage Payments Act” means the M32Vaccine Damage Payments Act 1979;
“prescribe” means prescribe by regulations.
85Provision for Northern Ireland
An Order in Council under paragraph 1(1)(b) of Schedule 1 to the M33Northern Ireland Act 1974 (legislation for Northern Ireland in the interim period) which contains a statement that it is made only for purposes corresponding to those of this Act—
(a)
shall not be subject to paragraph 1(4) and (5) of that Schedule (affirmative resolution of both Houses of Parliament); but
(b)
shall be subject to annulment in pursuance of a resolution of either House of Parliament.
86Minor and consequential amendments and repeals
(1)
The enactments mentioned in Schedule 7 to this Act shall have effect subject to the amendments there specified, being minor amendments and amendments consequential on the provisions of this Act.
(2)
The enactments mentioned in Schedule 8 to this Act, which include some that are spent, are hereby repealed to the extent specified in the third column of that Schedule.
87Short title, commencement and extent
(1)
This Act may be cited as the Social Security Act 1998.
(2)
This Act, except—
(a)
sections 66, 69, 72 and 77 to 85, this section and Schedule 6 to this Act; and
(b)
subsection (1) of section 50 so far as relating to a sum which is chargeable to tax by virtue of section 313 of the M34Income and Corporation Taxes Act 1988, and subsections (2) to (4) of that section,
shall come into force on such day as may be appointed by order made by the Secretary of State; and different days may be appointed for different provisions and for different purposes.
(3)
An order under subsection (2) above may make such savings, or such transitional or consequential provision, as the Secretary of State considers necessary or expedient—
(a)
in preparation for or in connection with the coming into force of any provision of this Act; or
(b)
in connection with the operation of any enactment repealed or amended by a provision of this Act during any period when the repeal or amendment is not wholly in force.
(4)
This Act, except—
(a)
section 2 so far as relating to war pensions;
(b)
sections 3, 15, 45 to 47, 59, 78 and 85 and this section; and
(c)
section 86 and Schedules 7 and 8 so far as relating to enactments which extend to Northern Ireland,
does not extend to Northern Ireland.
(5)
The following provisions of this Act extend to the Isle of Man, namely—
(a)
in section 4, subsections (1)(c) and (2)(c);
(b)
sections 6 and 7 and Schedule 1 so far as relating to appeals under the Vaccine Damage Payments Act;
(c)
sections 45 to 47 and this section;
(d)
paragraphs 5 to 10 of Schedule 7 and section 86(1) so far as relating to those paragraphs; and
(e)
section 86(2) and Schedule 8 so far as relating to the Vaccine Damage Payments Act.