2015 No. 499
The Social Security (Overpayments and Recovery) Amendment Regulations 2015
Made
Laid before Parliament
Coming into force
The Secretary of State for Work and Pensions makes the following Regulations in exercise of the powers conferred by sections 71(8), (9A) and (9C), 71ZA, 71ZD, 75(8) and (10), 78(3C) and (3E), 189(1) and (4) to (6) and 191 of the Social Security Administration Act 1992 1 (“the Act”).
In accordance with section 173(1) of the Act, the Secretary of State has obtained the agreement of the Social Security Advisory Committee that proposals in respect of these Regulations should not be referred to it.
In relation to provisions in these Regulations relating to housing benefit, in accordance with section 176(1) of the Act2, consultation has taken place with organisations appearing to the Secretary of State to be representative of the authorities concerned.
Citation and commencement1
These Regulations may be cited as the Social Security (Overpayments and Recovery) Amendment Regulations 2015 and come into force on 6th April 2015.
Amendment of the Social Security (Payments on Account, Overpayments and Recovery) Regulations 19882
1
Regulation 16 of the Social Security (Payments on Account, Overpayments and Recovery) Regulations 19883(limitations on deductions from prescribed benefits) is amended as follows.
2
In paragraph (4) omit “, subject to paragraphs 8 and 9 of Schedule 9 to the Claims and Payments Regulations,”.
3
In paragraph (5) for “shall be 5 times” substitute “shall, subject to paragraph (5ZA), be 8 times”.
4
After paragraph (5) insert—
5ZA
In a case to which paragraph (5) applies, where deductions fall to be made under Schedule 9 to the Claims and Payments Regulations (payments to third parties), the total of the amount deductible under paragraph (5) and the amount deductible under that Schedule shall not exceed 8 times 5 per cent. of the personal allowance mentioned in paragraph (5).
5ZB
Paragraph (4)(b) is subject to paragraphs 8 and 9 of Schedule 9 to the Claims and Payments Regulations.
Amendment of the Social Security (Overpayments and Recovery) Regulations 20133
The Social Security (Overpayments and Recovery) Regulations 20134 are amended in accordance with regulations 4 to 8 below.
Amendment of regulation 194
In regulation 19(2) (notices) for sub-paragraph (e) substitute—
e
the deduction or rate of deduction to be made in accordance with regulation 20.
Amendment of regulation 205
1
Regulation 20 (amount to be deducted by employer) is amended as follows.
2
In paragraphs (2), (4), (6) and (8), after “paragraph (3)”, wherever it occurs, insert “or (3B)”.
3
In paragraph (3), for “The amount to be deducted is—” substitute “Except where paragraph (3B) applies, the amount to be deducted is—”.
4
After paragraph (3) insert—
3A
Paragraph (3B) applies where deductions from earnings are made to recover from the liable person the whole or part of an overpayment in respect of which the liable person has been found guilty of an offence whether under statute or otherwise.
3B
Where this paragraph applies, the amount to be deducted by the employer is—
a
where the liable person’s earnings are payable weekly, the percentage of their earnings specified in column 2 of Table C in Schedule 2 opposite the band in column 1 of that Table within which their net earnings payable on their pay-day fall;
b
where the liable person’s earnings are payable monthly, the percentage of their earnings specified in column 2 of Table D in Schedule 2 opposite the band in column 1 of that Table within which their net earnings payable on their pay-day fall; or
c
a lower amount calculated in the manner specified by the appropriate authority in the notice.
5
For paragraph (5), substitute—
5
The employer must continue to make deductions in accordance with paragraph (3) or (3B) unless and until—
a
they are notified by the appropriate authority that the notice—
i
has been varied in accordance with regulation 25;
ii
has been discharged under regulation 26; or
iii
has lapsed under regulation 27; or
b
the employer considers that, as a result of deductions under this regulation, the balance of the recoverable amount which falls to be recovered from the liable person is nil.
6
In paragraph (7), after “paragraph (3)” insert “, (3B)”.
Amendment of regulation 216
1
Regulation 21 (employer to notify liable person of deduction) is amended as follows.
2
For paragraph (1) substitute—
1
An employer making a deduction from earnings for the purposes of these Regulations must notify the liable person in writing of the amount of the deduction including any amount deducted for administrative costs under regulation 20(9).
3
After paragraph (2) add—
3
An employer must, within 28 days of receiving a written request from the liable person, provide the liable person with an explanation in writing of how the first amount referred to in paragraph (1) was calculated.
Amendment of regulation 297
In regulation 29 (priority as between notices and orders requiring deduction from earnings), for paragraph (4) substitute—
4
Where this paragraph applies, the employer must make deductions under any later notice as if the earnings to which it relates were the residue of the liable person’s earnings after the making of any deduction to comply with any earlier notice.
Amendment of Schedule 28
1
Schedule 2 (amounts to be deducted by employers) is amended as follows.
2
For the reference note at the head of the Schedule, substitute “Regulation 20(2) and (3B)”.
3
After “TABLE A:” insert “CASES WHERE REGULATION 20(3) APPLIES”.
4
In Table A, for “Less than £100” substitute “£100 or less”.
5
After “TABLE B:” insert “CASES WHERE REGULATION 20(3) APPLIES”.
6
In Table B, for “Less than £430” substitute “£430 or less”.
7
After Table B add—
TABLE C: CASES WHERE REGULATION 20(3B) APPLIESWHERE EARNINGS ARE PAID WEEKLY
AMOUNT OF NET EARNINGS
DEDUCTION (PER CENT. OF NET EARNINGS)
£100 or less
5
Exceeding £100 but not exceeding £160
6
Exceeding £160 but not exceeding £220
10
Exceeding £220 but not exceeding £270
14
Exceeding £270 but not exceeding £375
22
Exceeding £375 but not exceeding £520
30
Exceeding £520
40
TABLE D: CASES WHERE REGULATION 20(3B) APPLIESWHERE EARNINGS ARE PAID MONTHLY
AMOUNT OF NET EARNINGS
DEDUCTION (PER CENT. OF NET EARNINGS)
£430 or less
5
Exceeding £430 but not exceeding £690
6
Exceeding £690 but not exceeding £950
10
Exceeding £950 but not exceeding £1,160
14
Exceeding £1,160 but not exceeding £1,615
22
Exceeding £1,615 but not exceeding £2,240
30
Exceeding £2,240
40
Signed by authority of the Secretary of State for Work and Pensions
(This note is not part of the Regulations)