2A

The persons who fall within this subsection are—

a

any bank;

b

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

c

any insurance company (within the meaning of the Insurance Companies Act 1982 (c. 50));

d

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

e

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

f

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

g

any water undertaker or sewerage undertaker, any water and sewerage authority constituted under section 62 of the Local Government etc. (Scotland) Act 1994 (c. 39) or any authority which is a collecting authority for the purposes of section 79 of that Act;

h

any person who (within the meaning the Gas Act 1986 (c. 44)) supplies gas conveyed through pipes;

i

any person who (within the meaning of the Electricity Act 1989 (c. 29)) supplies electricity conveyed by distribution systems;

j

any person who provides a telecommunications service;

k

any person conducting any educational establishment or institution;

l

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

m

the Student Loans Company;

n

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

2B

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

2C

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

a

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

b

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

2D

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

a

a water undertaker or any water and sewerage authority constituted under section 62 of the Local Government etc. (Scotland) Act 1994,

b

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

c

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

d

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

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

2E

The powers conferred by this section shall not be exercisable for obtaining from any person providing a telecommunications service any information other than information which (within the meaning of section 21 of the Regulation of Investigatory Powers Act 2000 (c. 23)) is communications data but not traffic data.

2F

Nothing in subsection (2B) or (2C) above shall prevent an authorised officer from exercising the powers conferred by this section for requiring information, from a person who provides a telecommunications service, about the identity and postal address of a person identified by the authorised officer solely by reference to a telephone number or electronic address used in connection with the provision of such a service.

(5)

No one shall be required under this section to provide—

a

any information that tends to incriminate either himself or, in the case of a person who is married, his spouse; or

b

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

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

6

Provision may be made by order—

a

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

b

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

c

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

7

In this section—

• “bank” means—

  1. a

     any institution for the time being authorised under a provision of the Banking Act 1987 (c. 22);

  2. b

     any person for the time being specified in any of paragraphs 2 to 10 of Schedule 2 to that Act (exempted persons);

  3. c

     any person for the time being entitled by virtue of the Banking Co-ordination (Second Council Directive) Regulations 1992 (S.I. 1992/3218) to accept deposits (within the meaning of that Act) in the United Kingdom;

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

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

  1. a

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

  2. b

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

• “telecommunications service” has the same meaning as in the Regulation of Investigatory Powers Act 2000 (c. 23).

“benefit offence” means—

a

any criminal offence in connection with a claim for a relevant social security benefit;

b

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

c

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

d

any attempt or conspiracy to commit a benefit offence;

“relevant social security benefit” means a benefit under any provision of the relevant social security legislation; and

aza

any order containing provision adding any person to the list of persons falling within section 109B(2A) above;

179A Exchange of information with overseas authorities

1

This section applies where it appears to the Secretary of State—

a

that there are arrangements in force for the exchange of relevant information between him and any authorities in a country outside the United Kingdom (’the overseas country’); and

b

that the arrangements and the law in force in the overseas country are such as to ensure that there are adequate safeguards in place against any improper use of information disclosed by the Secretary of State under this section.

2

For the purpose of facilitating the carrying out by authorities in the overseas country of any function relating to anything corresponding to, or in the nature of, a social security benefit, the Secretary of State may make any such disclosure of relevant information to authorities in the overseas country as he considers necessary to give effect to the arrangements.

3

It shall be the duty of the Secretary of State to take all such steps as may be reasonable for securing that relevant information disclosed to him in accordance with the arrangements is not used for any purpose for which its use is not expressly or impliedly authorised by or under the arrangements.

4

This section does not apply where provision is in force under section 179 above for giving effect to the arrangements in question.

5

The purposes for which information may be required to be disclosed to the Secretary of State under section 122D above or section 116D of the Northern Ireland Administration Act (information required from authorities administering housing benefit or council tax benefit) shall be deemed to include the further disclosure of that information in accordance with this section.

6

In this section “relevant information” means any information held by the Secretary of State or any authorities in a country outside the United Kingdom for the purposes of any functions relating to, or to anything corresponding to or in the nature of, a social security benefit.

155A Exchange of information with overseas authorities

1

This section applies where it appears to the Department—

a

that there are arrangements in force for the exchange of relevant information between the Department and any authorities in a country outside the United Kingdom (“the overseas country”); and

b

that the arrangements and the law in force in the overseas country are such as to ensure that there are adequate safeguards in place against any improper use of information disclosed by the Department under this section.

2

For the purpose of facilitating the carrying out by authorities in the overseas country of any function relating to anything corresponding to, or in the nature of, a social security benefit, the Department may make any such disclosure of relevant information to authorities in the overseas country as the Department considers necessary to give effect to the arrangements.

3

It shall be the duty of the Department to take all such steps as may be reasonable for securing that relevant information disclosed to it in accordance with the arrangements is not used for any purpose for which its use is not expressly or impliedly authorised by or under the arrangements.

4

This section does not apply where provision is in force under section 155 above for giving effect to the arrangements in question.

5

The purposes for which information may be required to be disclosed to the Department under section 116D above or section 122D of the Great Britain Administration Act (information required from authorities administering housing benefit or council tax benefit) shall be deemed to include the further disclosure of that information in accordance with this section.

6

In this section “relevant information” means any information held by the Department or any authorities in a country outside the United Kingdom for the purposes of any functions relating to, or to anything corresponding to or in the nature of, a social security benefit.

; or

f

section 7, 8 or 9 of the Social Security Fraud Act 2001.

115B Penalty as alternative to prosecution: colluding employers etc

1

This section applies where it appears to the Secretary of State or an authority that administers housing benefit or council tax benefit—

a

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

b

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

2

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

a

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

b

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

3

The Secretary of State or authority may give to the responsible person a written notice—

a

specifying or describing the conduct in question;

b

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

c

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

d

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

4

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

a

the amount of the penalty shall be recoverable as a civil debt, and shall be capable of being set off against an amount of relevant benefit payable to the recipient of the notice; and

b

no criminal proceedings shall be instituted against him in respect of the conduct to which the notice relates;

and section 71(10) above (recovery by execution etc.) shall apply in relation to an amount recoverable by virtue of paragraph (a) above as it applies in relation to an amount recoverable under the provisions mentioned in section 71(8) above.

5

The amount of the penalty shall be—

a

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

b

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

c

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

6

The responsible person may withdraw his agreement to pay a penalty under this section by notifying the Secretary of State or authority, in the manner specified by the Secretary of State or authority, at any time during the period of 28 days beginning with the day on which he agrees to pay it.

7

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

a

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

b

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

8

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

a

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

b

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

c

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

9

In this section—

• “conduct” includes acts, omissions and statements;

• “director”—

  1. a

     in relation to a company (within the meaning of the Companies Act 1985 (c. 6)), includes a shadow director;

  2. b

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

  3. c

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

• “employee” means any person who—

  1. a

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

  2. b

     carries out any work under any contract under which he has undertaken to provide his work,

  and “employment” shall be construed accordingly;

• “relevant benefit” means benefit prescribed for the purposes of section 71(8) above;

• “shadow director” means a shadow director as defined in section 741(2) of the Companies Act 1985;

• “subsidiary” means a subsidiary as defined in section 736 of the Companies Act 1985.

1A

A person shall be guilty of an offence if—

a

there has been a change of circumstances affecting any entitlement of his to any benefit or other payment or advantage under any provision of the relevant social security legislation;

b

the change is not a change that is excluded by regulations from the changes that are required to be notified;

c

he knows that the change affects an entitlement of his to such a benefit or other payment or advantage; and

d

he dishonestly fails to give a prompt notification of that change in the prescribed manner to the prescribed person.

1B

A person shall be guilty of an offence if—

a

there has been a change of circumstances affecting any entitlement of another person to any benefit or other payment or advantage under any provision of the relevant social security legislation;

b

the change is not a change that is excluded by regulations from the changes that are required to be notified;

c

he knows that the change affects an entitlement of that other person to such a benefit or other payment or advantage; and

d

he dishonestly causes or allows that other person to fail to give a prompt notification of that change in the prescribed manner to the prescribed person.

1C

This subsection applies where—

a

there has been a change of circumstances affecting any entitlement of a person (’the claimant’) to any benefit or other payment or advantage under any provision of the relevant social security legislation;

b

the benefit, payment or advantage is one in respect of which there is another person (’the recipient’) who for the time being has a right to receive payments to which the claimant has, or (but for the arrangements under which they are payable to the recipient) would have, an entitlement; and

c

the change is not a change that is excluded by regulations from the changes that are required to be notified.

1D

In a case where subsection (1C) above applies, the recipient is guilty of an offence if—

a

he knows that the change affects an entitlement of the claimant to a benefit or other payment or advantage under a provision of the relevant social security legislation;

b

the entitlement is one in respect of which he has a right to receive payments to which the claimant has, or (but for the arrangements under which they are payable to the recipient) would have, an entitlement; and

c

he dishonestly fails to give a prompt notification of that change in the prescribed manner to the prescribed person.

1E

In a case where that subsection applies, a person other than the recipient is guilty of an offence if—

a

he knows that the change affects an entitlement of the claimant to a benefit or other payment or advantage under a provision of the relevant social security legislation;

b

the entitlement is one in respect of which the recipient has a right to receive payments to which the claimant has, or (but for the arrangements under which they are payable to the recipient) would have, an entitlement; and

c

he dishonestly causes or allows the recipient to fail to give a prompt notification of that change in the prescribed manner to the prescribed person.

1F

In any case where subsection (1C) above applies but the right of the recipient is confined to a right, by reason of his being a person to whom the claimant is required to make payments in respect of a dwelling, to receive payments of housing benefit—

a

a person shall not be guilty of an offence under subsection (1D) or (1E) above unless the change is one relating to one or both of the following—

i

the claimant’s occupation of that dwelling;

ii

the claimant’s liability to make payments in respect of that dwelling;

but

b

subsections (1D)(a) and (1E)(a) above shall each have effect as if after “knows” there were inserted “or could reasonably be expected to know”.

1G

For the purposes of subsections (1A) to (1E) above a notification of a change is prompt if, and only if, it is given as soon as reasonably practicable after the change occurs.

1A

A person shall be guilty of an offence if—

a

there has been a change of circumstances affecting any entitlement of his to any benefit or other payment or advantage under any provision of the relevant social security legislation;

b

the change is not a change that is excluded by regulations from the changes that are required to be notified;

c

he knows that the change affects an entitlement of his to such a benefit or other payment or advantage; and

d

he fails to give a prompt notification of that change in the prescribed manner to the prescribed person.

1B

A person is guilty of an offence under this section if—

a

there has been a change of circumstances affecting any entitlement of another person to any benefit or other payment or advantage under any provision of the relevant social security legislation;

b

the change is not a change that is excluded by regulations from the changes that are required to be notified;

c

he knows that the change affects an entitlement of that other person to such a benefit or other payment or advantage; and

d

he causes or allows that other person to fail to give a prompt notification of that change in the prescribed manner to the prescribed person.

1C

In a case where subsection (1C) of section 111A above applies, the recipient is guilty of an offence if—

a

he knows that the change affects an entitlement of the claimant to a benefit or other payment or advantage under a provision of the relevant social security legislation;

b

the entitlement is one in respect of which he has a right to receive payments to which the claimant has, or (but for the arrangements under which they are payable to the recipient) would have, an entitlement; and

c

he fails to give a prompt notification of that change in the prescribed manner to the prescribed person.

1D

In a case where that subsection applies, a person other than the recipient is guilty of an offence if—

a

he knows that the change affects an entitlement of the claimant to a benefit or other payment or advantage under a provision of the relevant social security legislation;

b

the entitlement is one in respect of which the recipient has a right to receive payments to which the claimant has, or (but for the arrangements under which they are payable to the recipient) would have, an entitlement; and

c

he causes or allows the recipient to fail to give a prompt notification of that change in the prescribed manner to the prescribed person.

1E

Subsection (1F) of section 111A above applies in relation to subsections (1C) and (1D) above as it applies in relation to subsections (1D) and (1E) of that section.

1F

For the purposes of subsections (1A) to (1D) above a notification of a change is prompt if, and only if, it is given as soon as reasonably practicable after the change occurs.