The Social Security (Penalty as Alternative to Prosecution) (Maximum Amount) Order 2015

EXPLANATORY NOTE

(This note is not part of the Order)

Article 2 increases the maximum amount of the penalty that may be offered as an alternative to prosecution, under section 115A(3)(b) of the Social Security Administration Act 1992 (“the 1992 Act”), from £2000 to £5000 with effect from 1st April 2015.

Such a penalty may be offered where an overpayment of benefit is recoverable from a person by (or due from a person to) the Secretary of State or an authority under section 71, 71ZB, 71A, 75 or 76 of the 1992 Act and it appears to the Secretary of State or authority that the making of the overpayment was attributable to an act or omission of that person, and that there are grounds for instituting proceedings against that person for an offence relating to the overpayment.

The amount of the penalty that can be offered under s115A(3) of the 1992 Act is 50% of the overpayment subject to a minimum of £350 and (where this Order applies) a maximum of £5,000.

The amendment made by this Order applies only in relation to an act or omission referred to in paragraph (a) of section 115A(1) of the 1992 Act which appears to the Secretary of State or authority to have occurred wholly on or after 1st April 2015.

A full impact assessment has not been produced for this instrument as it has no impact on business or civil society organisations.