The Income-related Benefits (Subsidy to Authorities) Amendment Order 2000

Article 12

SCHEDULE 2

The following Schedule is substituted for Schedule 5 to the principal Order.

Articles 13 and 21

“SCHEDULE 5 BENEFIT SAVINGS

General and interpretation

1.— (1) The additions to or deductions from subsidy referred to in articles 13 and 21 shall be calculated in accordance with this Schedule.

(2) In this Schedule, unless the context otherwise requires–

• F is the sum specified in column (6) of Schedule 1 (Benefit Savings Threshold) for an authority identified in column (1) of that Schedule;

• G is 0.75 of the value of F;

• H is twice the value of F;

• I is thrice the value of F;

• “authorised person” means—

  (a)

  an officer of an authority; or

  (b)

  an employee of an authority’s contractor,

  who has been designated by that authority for the investigation of fraud;

• “benefit savings” means, in a case where an award of benefit had—

  (a)

  been made before an intervention and a fraudulent overpayment has arisen; or

  (b)

  been made before an intervention, but no overpayment of relevant benefit can be determined by the authority by reason of paragraphs 10 of Schedule 3, 4 of Schedule 4 or 5 of Schedule 5 to the Housing Benefit Regulations or paragraphs 10 of Schedule 3, 4 of Schedule 4 or 5 of Schedule 5 to the Council Tax Benefit Regulations (income and capital to be disregarded) where a person is in receipt of income support or an income-based jobseeker’s allowance(1), as the case may be, pending the decision of the Secretary of State; or

  (c)

  not been made before the intervention,

  any amount, which would—

  (i)

  but for the intervention, have been paid by way of relevant benefit to a claimant during a benefit week; and

  (ii)

  had it been paid as relevant benefit, have been a fraudulent overpayment (or in a case within paragraph (a) above, have also been a fraudulent overpayment), within the meaning of article 18(5),

  or, in a case where only a proportion of that non-payment was due to the intervention, the amount shall be that proportion and “benefit-savings” shall also include 75 per cent. of any relevant benefit which would, but for the residence check made by an authorised person, have been paid or allowed to a claimant during a benefit week;

• “benefit-related savings” means—

  (a)

  where benefit savings have been established and the investigation that led to those savings has also led to a decision by the Secretary of State that no designated benefit, or less designated benefit is payable to a claimant, any specified amount of designated benefit that would, but for that intervention and consequent decision, have been paid to that claimant; and

  (b)

  where the benefit savings were less than the total relevant benefit not paid, the benefit-related savings shall be an amount determined by applying to the total of designated benefit not paid a percentage equal to the percentage which those benefit savings bear to the total relevant benefit not paid;

• “designated benefit” means income support, incapacity benefit, jobseeker’s allowance, retirement pension, severe disablement allowance and widow’s pension, in a case where a claimant was, prior to the intervention, also being paid relevant benefit;

• “intervention” means an investigation and intervention by one or more authorised persons whilst involved in the investigation of fraud and not in the performance of any other duty;

• “residence check” means action taken by an authorised person that included—

  (a)

  at least two unannounced visits to the dwelling in respect of which the relevant benefit was paid or allowed to the claimant and which—

  (i)

  took place in what were, for the claimant, different benefit weeks; and

  (ii)

  at which it was established that the claimant had ceased to occupy the dwelling as his home; or

  (b)

  one unannounced visit to the dwelling in respect of which the relevant benefit was paid or allowed at which it was established beyond doubt that the claimant had ceased to occupy the dwelling as his home;

• “specified amount”, in relation to a claimant, means—

  (a)

  where the benefit is income support, the amount payable in respect of a benefit week within the meaning prescribed therefor in regulation 2(1) of the Income Support (General) Regulations 1987(2);

  (b)

  where the benefit is incapacity benefit or severe disablement allowance, half of the fortnightly payment in arrears by which such benefit is to be paid, pursuant to regulation 24(1) of the Social Security (Claims and Payments) Regulations 1987(3) or, in a case where that regulation does not apply, would be so paid if that regulation did apply;

  (c)

  where the benefit is jobseeker’s allowance, the amount payable in respect of a benefit week within the meaning prescribed therefor in regulation 2(1) of the Jobseeker’s Allowance Regulations 1996(4);

  (d)

  where the benefit is retirement pension or widow’s pension, the amount payable in respect of the week in advance in which such benefit is to be paid, pursuant to regulation 22(1) of the Social Security (Claims and Payments) Regulations 1987(5) or, in a case where that regulation does not apply, would be so paid if that regulation did apply; and

• “verification framework” means the framework set out in the following circulars issued by the Secretary of State(6)–

  HB/CTB	F6/98;
  HB/CTB	F15/98;
  HB/CTB	F20/98;
  HB/CTB	F17/99;
  HB/CTB	A24/99;
  HB/CTB	A34/99;
  HB/CTB	A37/99; and
  HB/CTB	A48/99.

Fraud reduction score

2.— (1) An authority’s fraud reduction score is the sum of its fraud prosecution points and fraud detection points.

(2) Fraud prosecution points shall be calculated in accordance with sub-paragraphs (3), (4) and (5) for each conviction in respect of—

(a) charges under section 111A or 112 of the Act (dishonest or false representations for obtaining benefit)(7), section 15, 15A, 17 or 22 of the Theft Act 1968(8), section 1 of the Criminal Law Act 1977(9), section 1 or 3 of the Forgery and Counterfeiting Act 1981(10), section 8 of the Accessories and Abettors Act 1861(11) or section 44 of the Magistrates Court Act 1980(12); or

(b) other charges (whether under statute or otherwise),

that relate to relevant benefit paid by an authority (referred to in this paragraph as a “relevant conviction”).

(3) No calculation may be done under sub-paragraph (5) in respect of a relevant conviction until—

(a) a period of one month has passed beginning with the date sentence was passed or deferred and no appeal against conviction has been brought; or

(b) any appeal against that conviction brought within that month has been rejected.

(4) No calculation may be done under sub-paragraph (5) by reason only of offences in relation to relevant benefit being taken into consideration on sentencing.

(5) Fraud prosecution points shall be expressed in monetary amounts and calculated in respect of each relevant conviction according to the following formula—

where—

• A is the benefit savings made by an authority in respect of the person convicted of a relevant conviction;

• B is the benefit-related savings made by an authority in respect of that person; and

• C is—

  (a)

  64 if D + E is equal to or greater than £1500 but less than £5000; and

  (b)

  160 if D + E is equal to or greater than £5000, where—

• D is the amount of relevant benefit overpaid to the person who has been convicted of a relevant conviction; and

• E is the amount of designated benefit overpaid to that person.

(6) Fraud detection points shall be expressed in monetary amounts and calculated according to the following formula—

where—

• AA is the total sum of benefit savings made by an authority; and

• BB is the total sum of benefit-related savings made by an authority.

Additions to subsidy

3.— (1) Subject to sub-paragraphs (2) and (3), in the case of an authority where its fraud reduction score is greater than F, the addition for that authority shall be–

(a) 25 per cent. of the sum by which that score exceeds F in respect of the year commencing on 1st April 1999; and

(b) 30 per cent. of the sum by which that score exceeds F in respect of any subsequent year.

(2) Subject to sub-paragraph (3), in the case of an authority where its fraud reduction score is greater than H, the addition for that authority shall be the sum calculated for that authority in sub-paragraph (1), plus 5 per cent. of the sum by which that score exceeds H.

(3) In the case of an authority where its fraud reduction score is greater than I, the addition for that authority shall be the sum calculated for that authority in accordance with sub-paragraphs (1) and (2), plus—

(a) 10 per cent. of the sum by which that score exceeds I in respect of the year commencing on 1st April 1999; and

(b) 5 per cent. of the sum by which that score exceeds I in respect of any subsequent year.

Additional subsidy if verification framework compliant

4.   In the case of an authority which is certified by the Secretary of State as having complied with the verification framework in the relevant year, where its fraud reduction score is greater than G, the addition for that authority shall be 10 per cent. of the sum by which that score exceeds G subject to a maximum addition of 2.5 per cent. of F.

Deduction from subsidy

5.— (1) Subject to sub-paragraph (2), in the case of an authority where its fraud reduction score is less than G, the deduction for that authority shall be 50 per cent. of the sum by which that score is less than G.

(2) Sub-paragraph (1) shall not apply in a case where the value of F for an authority is less than £60,000.”

(1)

These paragraphs were all amended by S.I. 1996/1510.

(2)

S.I. 1987/1967; the definition of “benefit week” was amended by S.I. 1988/1445.

(3)

S.I. 1987/1968; regulation 24 was amended by S.I. 1994/2943 and 1996/1460.

(4)

S.I. 1996/207; the definition of “benefit week” was amended by S.I. 1996/517 and 1996/2538.

(5)

S.I. 1987/1968; regulation 22(1) was amended by S.I. 1991/2741 and 1994/3196.

(6)

These circulars are published by the Department of Social Security and copies may be obtained from DSS, HBM4, 5th Floor, Adelphi, London WC2N 6HT.

(7)

1992 c. 5; section 111A was inserted by, and section 112 was amended by, the Social Security Administration (Fraud) Act 1992 (c. 47), sections 13, 14 and Schedule 1, paragraph 4.

(8)

1968 c. 60; section 15A was inserted by the Theft (Amendment) Act 1996 (c. 62), section 1(1).

(9)

1977 c. 45; section 1 was amended by the Criminal Attempts Act 1981 (c. 47), section 5, the Computer Misuse Act 1990 (c. 18), section 7, the Criminal Justice (Terrorism and Conspiracy) Act 1998 (c. 40), section 9, Schedule 1 paragraph 4 and Schedule 2, Part II and the Trade Union and Labour Relations (Consolidation) Act 1992 (c. 52), section 300 and Schedule 1.

(10)

1981 c. 45.

(11)

1861 c. 94; section 8 was amended by the Criminal Law Act 1977 (c. 45) section 65 and Schedule 12.

(12)

1980 c. 43.