The Housing Benefit and Council Tax Benefit (Subsidy) Order 1994

Additions to council tax benefit subsidy

18.—(1) Subject to paragraphs (8) and (9) the additions referred to in article 17 are—

(a) where, following the loss, destruction or non-receipt, or alleged loss, destruction or non-receipt of original instruments of payment, an appropriate authority makes duplicate payments and the original instruments have been or are subsequently encashed, an amount equal to 25 per cent.of the amount of the duplicate payments;

(b) where it is discovered by an appropriate authority, during the relevant year, that excess benefits have been allowed and an amount is to be deducted under article 20 in relation to those excess benefits, an amount equal to—

(i) where the excess benefits are allowed in consequence of a departmental error, 95 per cent.of that part of the excess benefits which have not been recovered by the appropriate authority;

(ii) where fraudulent excess benefits are allowed 95 per cent. of the excess benefits; or

(iii) except where head (i) or (ii) applies, 25 per cent.of the excess benefit.

(2) The amount under paragraph (1)(b) shall not include an amount in relation to—

(a) any excess benefit allowed in consequence of an error of the appropriate authority making the payment,

(b) any technical excess benefit, or

(c) any excess benefit allowed and discovered in the relevant year, as a result of a reduction in the amount of council tax a person is liable to pay.

(3) Where excess benefits are allowed in consequence of departmental error, but some or all of that excess benefit is recovered by the appropriate authority, no addition shall be applicable to the authority in respect of the amount so recovered.

(4) In paragraph 2(a) “excess benefit allowed in consequence of an error of the appropriate authority making the payment” means excess benefits in consequence of a mistake made or something done or omitted to be done by the appropriate authority where the claimant, a person acting on his behalf or any other person to whom the payment is made, did not cause or materially contribute to that mistake, act or omission.

(5) In paragraph 1(b)(ii), in paragraph (3) and in article 19(1)(b) “excess benefits allowed in consequence of departmental error” means excess benefits in consequence of a mistake made or something done or omitted to be done by an officer of the Department of Social Security or the Department of Employment acting as such, or a decision of an adjudication officer, social security appeal tribunal or Social Security Commissioner appointed in accordance with sections 38(1), 40(1), 51(1) and 52(1) of the Act (appointment of adjudication officers, chairmen and members of social security appeal tribunals and Commissioners) where the claimant, a person acting on his behalf or any other person to whom the payment is made did not cause or materially contribute to that mistake, act or omission.

(6) In paragraph 2(b) “technical excess benefit” means that part of excess benefits which occurs as a result of benefits being allowed in advance and—

(a) a change of circumstances reducing or eliminating entitlement to those benefits; or

(b) the authority subsequently identifies recoverable excess benefits which arise otherwise than from a change in circumstances,

but shall not include any part of those excess benefits occurring before the benefit week next following the week in which the change is disclosed to the appropriate authority.

(7) In paragraph 1(b)(ii), in article 19(1)(c) and in paragraph 8 of Schedule 2 “fraudulent excess benefit” means excess benefit in respect of a period falling wholly or partly after 31st March 1993 and which—

(a) is so classified by an officer of the authority, designated for that purpose by the authority, after that date; and

(b) occurs as a result of the award or continuation of benefit arising in consequence of—

(i) a breach of section 112 of the Act (false representations for obtaining benefit), or

(ii) knowingly failing to report a relevant change of circumstances, contrary to the requirements of regulation 63 of the Community Charge Benefits Regulations or, as the case may be, of regulation 65 of the Council Tax Benefit Regulations (duty to notify change of circumstances), with intent to obtain or retain such benefit.

(8) Except for paragraphs (1)(b)(ii) and (7), this article shall not apply to an award of benefit to which paragraph (18) of regulation 60 of the Community Charge Benefits Regulations or paragraph (16) of regulation 62 of the Council Tax Benefit Regulations (time and manner in which claims are to be made), as the case may be, applies.

(9) Any reference in this article to excess benefits shall not include any council tax benefit for any period overrun or any period immediately following expiry of the specified period determined under regulation 57 of the Council Tax Benefit Regulations (benefit period) except for so much of any such benefit to which the claimant would not have been entitled had a claim for that period been duly made and determined.