40 Content and effect of deduction from earnings orders
(1) A deduction from earnings order must set out—
(a) the amounts to be deducted or a method for calculating those amounts,
(b) the periods in relation to which those amounts are to be deducted (the “affected periods”),
(c) when amounts are to be deducted and paid to the Minister, and
(d) the penalties that may be imposed for a failure to comply (see section 54).
(2) The Minister must give—
(a) the deduction from earnings order to the liable person’s employer, and
(b) a copy of the order to the liable person.
(3) A deduction from earnings order may not require an amount to be deducted from the liable person’s earnings before the end of the period of 22 days beginning with the day on which the order is given to the employer.
(4) An employer must comply with a deduction from earnings order.
41 Requirements before making a deduction from earnings order
(1) Before making a deduction from earnings order in respect of a liable person, the Minister must give the liable person a notice inviting them to make representations about the proposed order.
(2) The notice must include—
(a) the terms of the proposed order,
(b) a statement of the amount that is recoverable, and
(c) the means by which, and the period within which, representations may be made.
(3) The period must be at least 28 days beginning with the day after the day on which the notice is given.
(4) The Minister must—
(a) consider any representations received in accordance with the notice, and
(b) in light of those representations—
(i) decide whether to make a deduction from earnings order in respect of the liable person, and
(ii) make any changes to the terms of the proposed order that the Minister considers appropriate.
(5) The Minister must give a copy of a notice under subsection (1) to the liable person’s employer.
(6) If, following the giving of a notice under subsection (1), the Minister decides not to make the proposed deduction from earnings order, the Minister must, as soon as reasonably practicable—
(a) give the liable person a notice to that effect, and
(b) give a copy of the notice to the liable person’s employer.
(1) The Minister may make a deduction from earnings order only if satisfied that the terms of the order—
(a) will not cause the liable person or a person within subsection (2) to suffer hardship in meeting ordinary living expenses, and
(b) are otherwise fair in all the circumstances.
(2) A person is within this subsection if—
(a) they live with the liable person for some or all of the time, or
(b) they are financially dependent on the liable person.
(3) The amount to be deducted in relation to an affected period must not exceed—
(a) in a case to which subsection (4) applies, 40% of the liable person’s net earnings for the affected period, and
(b) in any other case, 20% of the liable person’s net earnings for the affected period.
(4) This subsection applies in a case where the Minister is satisfied, on the balance of probabilities, that the payable amount to which the deduction from earnings order relates is recoverable from the liable person because the liable person committed fraud.
(5) The Minister must ensure that the total amount to be deducted and paid to the Minister under a deduction from earnings order does not exceed the payable amount to which the order relates.
(6) The Minister may by regulations make further provision about the calculation of amounts to be deducted from a liable person’s earnings and paid to the Minister in accordance with a deduction from earnings order.
(7) The regulations may, among other things, make provision about establishing whether deductions would cause a person to suffer hardship in meeting ordinary living expenses.
(8) Regulations under this section are subject to the negative procedure.
(9) In this section, “net earnings” means the person’s earnings after the following have been deducted—
(a) income tax,
(b) primary Class 1 national insurance contributions, and
(c) any contribution that the person pays to a pension scheme.
(1) A deduction from earnings order may include provision for the employer to which it is given to deduct from the liable person’s earnings an amount specified in, or calculated in accordance with, the order, for the purpose of meeting costs reasonably incurred by the employer in complying with the order.
(2) In complying with section 42(1) and (3) in relation to a deduction from earnings order the Minister must take account of any deductions to be made under the order by virtue of subsection (1).
(3) The Minister may by regulations make provision about costs to which subsection (1) relates.
(4) Regulations under this section are subject to the negative procedure.
(1) The Minister may suspend and re-start the requirement to make deductions and payments under a deduction from earnings order at any time by notifying the employer to which the order was given.
(2) The Minister must notify the liable person if the requirement is suspended or re-started under this section.
(3) Where the requirement is suspended for a continuous period of 2 years the deduction from earnings order in question is to be treated as having been revoked at the end of that period.
(4) Where a deduction from earnings order is treated as having been revoked by virtue of subsection (3), the Minister must give notice to that effect to—
(a) the liable person, and
(b) the employer to which the order was given.
(5) Subsection (3) does not prevent the Minister making a further deduction from earnings order in respect of the same liable person.
45 Duty to notify the Minister of change of circumstances
(1) A liable person in respect of whom a deduction from earnings order is in force, must notify the Minister on each occasion that they—
(a) leave any employment, or
(b) start a new employment,
within the period of 7 days beginning with the day after the day on which they leave or start the employment.
(2) If the liable person notifies the Minister that they have started a new employment, they must include a statement of their expected earnings from their new employment.
(3) A person who—
(a) becomes the employer of a liable person, and
(b) knows that a deduction from earnings order is in force in respect of the liable person,
must, within 10 days of the beginning of the liable person’s employment, notify the Minister that they have become the liable person’s employer and include a statement of the liable person’s expected earnings from the employment.
(4) A person must notify the Minister if a liable person in respect of whom a deduction from earnings order is in force ceases to be in their employment.
(5) The notification must be given within the period of 10 days beginning with the day after the day on which the liable person leaves the employment.
(1) A liable person may apply to the Minister to vary a deduction from earnings order.
(2) The Minister must notify the liable person of the Minister’s decision on the application.
(1) The Minister may vary a deduction from earnings order given to an employer (whether on an application by the liable person or otherwise) by—
(a) giving a revised version of the order to the employer, and
(b) giving a copy of the revised version to the liable person.
(2) Where the Minister proposes to vary a deduction from earnings order, the Minister must give the liable person an opportunity to make representations about the proposed variation.
(1) The Minister may revoke a deduction from earnings order.
(2) The Minister must revoke a deduction from earnings order if the payable amount to which it relates has been recovered.
(3) Where the Minister revokes a deduction from earnings order, the Minister must give notice of the revocation to—
(a) the employer, and
(b) the liable person.
(1) This section applies where the Minister—
(a) makes a deduction from earnings order,
(b) varies a deduction from earnings order, or
(c) decides not to vary a deduction from earnings order in response to an application under section 46.
(2) A liable person may apply to the Minister for a review of the decision to make, to vary or not to vary the order.
(3) An application under subsection (2) must be made within the period of 28 days beginning with the day after the day on which the liable person was—
(a) given a copy of the order or the order as varied, or
(b) notified of the decision not to vary the order.
(4) An application for a review under subsection (1) may not be brought on, or include, any ground relating to the existence or amount of a payable amount (unless the amount is said to be incorrectly stated in the order).
(5) Where an application is made under this section, the Minister must review the decision in question.
(6) On a review, the Minister may—
(a) uphold the decision,
(b) vary the order, or
(c) revoke the order.
(7) After a review has been carried out, the Minister must—
(a) notify the liable person of the outcome of the review, and
(b) if the outcome was to vary the order, give—
(i) the varied order to the liable person’s employer, and
(ii) a copy of the varied order to the liable person.
(1) A liable person may appeal to the First-tier Tribunal against—
(a) the making of a deduction from earnings order,
(b) the variation of a deduction from earnings order, or
(c) a refusal to vary a deduction from earnings order after an application under section 46.
(2) The liable person may not appeal under subsection (1) unless they have—
(a) applied for a review of the decision to make, to vary or not to vary the order under section 49, and
(b) been notified of the outcome of the review.
(3) Subsection (2) does not apply where a deduction from earnings order is varied on a review under section 49.
(4) An appeal may not be brought after the end of—
(a) the period of 28 days beginning with the day after the day on which the liable person was notified of the outcome of the review, or
(b) such longer period (if any) as the Tribunal considers reasonable in all the circumstances.
(5) An appeal under subsection (1) may not be brought on, or include, any ground relating to the existence or amount of a payable amount (unless the amount is said to be incorrectly stated in the order).
(6) On an appeal under this section, the First-tier Tribunal may suspend the requirement on an employer to comply with a deduction from earnings order for some or all of the time until the appeal is finally determined.
(7) On an appeal under subsection (1), the First-tier Tribunal may—
(a) amend the deduction from earnings order,
(b) revoke the deduction from earnings order, or
(c) dismiss the appeal.
The Minister may impose a penalty on a person if satisfied, on the balance of probabilities, that the person has carried out, or conspired to carry out, fraud—
(a) in order to receive or help another person to receive a payment that is or, if the payment was not made, would have been, a recoverable amount, or
(b) with the result that a public authority is entitled to claim any other recoverable amount.
(1) Subsection (2) applies where a body is liable to receive a penalty under section 51 by reason of anything which the Minister is satisfied, on the balance of probabilities, was done or not done with the consent or connivance of—
(a) a relevant individual in relation to the body, or
(b) an individual purporting to act in the capacity of a relevant individual in relation to the body.
(2) The Minister may impose a penalty under section 51 on the individual as well as on the body.
(3) In this section, “relevant individual” means—
(a) in relation to a body corporate other than one whose affairs are managed by its members, a director, manager, secretary or other similar officer of the body;
(b) in relation to a limited liability partnership or other body corporate whose affairs are managed by its members, a member who exercises functions of management with respect to it;
(c) in relation to a limited partnership, a general partner (within the meaning given by section 3 of the Limited Partnerships Act 1907);
(d) in relation to any other partnership, a partner;
(e) in relation to an unincorporated association, a person who exercises functions of management with respect to it.
(1) A penalty imposed on a person under section 51(a) may not exceed 100% of the payment to which it relates.
(2) Where a penalty is imposed under section 51(a) in relation to conduct which does not result in a person receiving a payment, subsection (1) is to be read as if the reference to “the payment” were to the payment which, in the opinion of the Minister, a person would have received if a payment had been made in consequence of the conduct.
(3) A penalty imposed on a person under section 51(b) may not exceed 100% of—
(a) any loss caused to the public authority, or
(b) if higher, the benefit gained by the person,
as a result of the fraud in question.
54 Penalty for failing to comply with requirements
The Minister may impose a penalty on a person where the Minister considers that the person has, without reasonable excuse, failed to comply with—
(a) a requirement imposed by or under Chapter 2 (investigatory powers), or
(b) a requirement imposed by or under Chapter 4 (methods of recovery).
(1) Subsection (2) applies where the Minister considers that—
(a) a body has, without reasonable excuse, failed to comply with a requirement mentioned in section 54, and
(b) a relevant individual in relation to the body has, without reasonable excuse, failed to prevent that failure.
(2) The Minister may impose a penalty under section 54 on the individual as well as on the body.
(3) In this section, “relevant individual” in relation to a body has the same meaning that it has in section 52.
56 Amount of penalty for failing to comply with requirements
(1) A penalty imposed for a failure to comply with a requirement to provide information imposed by or under Chapter 2 or Chapter 4 must be an amount calculated by reference to a daily rate of £300.
(2) Any other penalty for a failure to comply with a requirement imposed by or under Chapter 2 or Chapter 4 must be a fixed amount of £300.
(3) In this section, references to a “daily rate” in relation to a person’s failure to provide information are to an amount that may be imposed for each day by the end of which the information has not been provided, beginning with the last day on which compliance would have resulted in a penalty not being payable.
(4) The Minister may by regulations amend the amounts mentioned in subsections (1) and (2) for the time being to reflect a change in the value of money.
(5) Regulations under subsection (4) are subject to the negative procedure.
(1) This section and sections 58 and 59 set out steps that must be taken before the Minister may impose a penalty on a person under section 51 or 54.
(2) Where the Minister proposes that a person should be given a penalty under section 51 or 54, the Minister must give the person a notice (a “notice of intent”) inviting them to make representations about the proposed penalty.
(3) The notice of intent must include—
(a) the amount of the proposed penalty,
(b) the reasons for the penalty being of that amount, and
(c) the means by which, and the period within which, representations may be made.
(4) The period must be at least 28 days beginning with the day after the day on which the notice is given.
(5) The Minister must—
(a) consider any representations received in accordance with the notice, and
(b) in light of those representations—
(i) decide whether to impose the penalty, and
(ii) make any changes to the terms of the proposed penalty that the Minister considers appropriate.
(6) Where the Minister decides not to impose a penalty on the person, the Minister must give the person a notice to that effect.
(1) Where the Minister decides to impose a penalty on the person, the Minister must give the person a penalty decision notice.
(2) A penalty decision notice is a notice—
(a) informing the person of the decision that a penalty should be imposed on the person,
(b) stating the amount of the penalty,
(c) setting out the reasons for the penalty being of that amount,
(d) explaining that the person can apply for a review of the decision within the period of 28 days beginning with the day after the day on which the decision notice is given, and
(e) explaining that if the person does not seek a review within that period, the penalty notice will be given after the end of that period.
(3) If a review of the decision is requested in accordance with the penalty decision notice, the penalty may not be imposed until after a review has been carried out.
(4) If no such review is requested, the penalty may be imposed after the period mentioned in subsection (2)(d).
(1) Where a review of the decision that a penalty should be imposed is requested following receipt of a penalty decision notice, the Minister must carry out a review of that decision.
(2) On a review, the Minister may—
(a) uphold the decision to impose the penalty and the amount of the penalty,
(b) uphold the decision to impose the penalty but change its amount, or
(c) cancel the decision to impose a penalty.
(3) Where the Minister makes a decision within subsection (2)(a) or (b), the Minister must—
(a) give the person a notice in accordance with section 60, and
(b) inform the person of the right of appeal under section 61.
(4) Where the Minister makes a decision within subsection (2)(c), the Minister must give the person a notice to that effect.
(1) A penalty under section 51 or 54 is imposed by giving a person a notice (a “penalty notice”) requiring the person to pay a penalty of a specified amount to the Minister on or before a specified day.
(2) A person may not be given more than one penalty notice in respect of the same act or omission.
(3) Where a person is liable under section 54 to a penalty for a failure to provide information, and the penalty is calculated by reference to a daily rate, the failure to provide information by the end of each day in relation to which the daily rate accrues is to be treated as a separate omission for the purposes of subsection (2).
(4) In this section, “specified” means specified in the penalty notice.
(1) A person may appeal against a penalty notice to the appropriate court.
(2) An appeal may not be brought after the end of—
(a) the period of 28 days beginning with the day after the day on which the person is given the penalty notice, or
(b) such longer period (if any) as the appropriate court considers reasonable in all the circumstances.
(3) On an appeal under subsection (1), the appropriate court may—
(a) uphold the penalty notice,
(b) revoke the penalty notice, or
(c) amend the penalty notice.
(4) Subsection (5) applies where—
(a) an appeal is against a penalty notice under section 51 (penalty relating to fraud), and
(b) court proceedings other than an appeal against a penalty notice have reached a final determination, on at least the balance of probabilities, that the person to whom the notice was given—
(i) carried out or conspired to carry out, or
(ii) in a case to which section 52 applies, consented to or connived in the act or omission which constituted,
the fraud to which the penalty relates.
(5) For the purposes of the appeal against a penalty notice, that final determination is determinative of the question whether the person carried out the fraud.
(6) The Minister may by regulations make further provision about appeals against a penalty notice.
(7) The regulations may, among other things, provide for appeals to be heard at the same time as proceedings mentioned in section 10(1)(a) (proceedings to recover a claimed amount).
(8) Regulations under this section are subject to the negative procedure.
(9) In this section, “the appropriate court” means—
(a) the First-tier Tribunal, or
(b) such other court or tribunal as may be specified in regulations under this section.
(1) An amount payable by a person in accordance with a penalty notice carries interest (“late payment interest”) for each day in the period beginning with the interest start day and ending with the day of payment.
(2) The interest start day is the day after the specified day included in a penalty notice in accordance with section 60(1).
(3) The late payment interest rate applicable to a day in the interest period is the percentage per year found by adding 2.5 to the Bank of England rate applicable to the day.
(4) The Bank of England rate applicable to a day is the official bank rate announced by the Bank of England Monetary Policy Committee at its most recent meeting prior to the day.
(5) Late payment interest is not payable on late payment interest.
(1) The Minister must issue a code of practice about the administration of penalties under section 51, including about the making of decisions about the imposition and amount of a penalty.
(2) The code of practice must include provision about circumstances in which, and the extent to which, the Minister considers that it would be appropriate to discount the amount of a penalty as a result of cooperative conduct by the person on whom the penalty is imposed.
(3) The Minister may from time to time revise and reissue the code of practice.
(4) The Minister must lay the code of practice, or any reissued code of practice, before Parliament.
64 Penalties and criminal proceedings or convictions
(1) The Minister may not give a penalty notice to a person under section 51 in relation to an act or omission which constitutes an offence if the person has, in relation to that act or omission, been found guilty of that offence.
(2) A person may not be found guilty of an offence in relation to an act or omission if the person has paid a penalty in response to a penalty notice given under section 60 in relation to that act or omission.
(1) The Minister must appoint an independent person to carry out reviews of the exercise of the Minister’s functions under this Part.
(2) After each review, the independent person must as soon as practicable—
(a) prepare a report on the review, and
(b) submit the report to the Minister.
(3) On receiving a report, the Minister must—
(a) publish it, and
(b) lay a copy before Parliament.
(4) Each review must consider the extent to which—
(a) functions under this Part have been exercised in compliance with the requirements of this Part, relevant codes of practice and relevant guidance, and
(b) the exercise of those functions has been effective in delivering the Minister’s functions under section 1(1)(a) to (c).
(5) Each report must contain any recommendations which the independent person considers appropriate in light of the review to which it relates.
(6) In subsection (4)(a), “relevant codes of practice” and “relevant guidance” mean codes of practice and guidance to which the Minister must have regard in exercising functions under this Part.
(1) The Minister may give the independent person appointed under section 65(1) directions as to the period to be covered by each review carried out under section 65.
(2) The Minister must consult the independent person before giving a direction under subsection (1).
(3) The Minister must disclose information to the independent person, or to a person acting on behalf of the independent person, where the information is reasonably required for the purposes of reviews being carried out under section 65.
(4) The Minister may by regulations confer functions on a person for the purposes of securing compliance with section 65.
(5) Regulations under subsection (4) are subject to the negative procedure.
(1) The following decisions, if not made by the Minister personally, may be made only by an individual authorised by the Minister for the purposes of this section (an “authorised officer”)—
(a) deciding to give an information notice under section 3(2);
(b) deciding to give a recovery notice under section 11(1);
(c) deciding to make a direct deduction order under section 17(1);
(d) deciding to vary a direct deduction order under section 29(1);
(e) deciding to make a deduction from earnings order under section 39(1);
(f) deciding to vary a deduction from earnings order under section 47;
(g) deciding to give a notice of intent under section 57(2);
(h) deciding to impose a penalty under section 51 or 54 (and to give a notice for that purpose under section 60).
(2) Subsection (3) applies where—
(a) the Minister is required by virtue of a provision of this Part to review a decision mentioned in subsection (1), and
(b) the decision was made by an authorised officer.
(3) The review must be carried out by—
(a) an authorised officer of a higher grade than the authorised officer who made the decision, or
(b) the Minister personally.
(4) An individual may not be an authorised officer unless the individual is employed in the civil service of the state in the Minister’s department.
68 Guidance on exercise of investigatory functions
(1) The Minister must publish guidance about how the Minister will exercise the Minister’s function in section 1(1)(a) (investigating suspected fraud against public authorities).
(2) The guidance must include guidance about—
(a) how authorised investigators and authorised officers are to be appointed,
(b) the training which individuals must undertake before being appointed as authorised investigators or authorised officers,
(c) governance arrangements in relation to how authorised investigators and authorised officers are to exercise their functions for the purpose of the function in section 1(1)(a), and
(d) how the Minister will work with an independent reviewer appointed under section 65.
(3) The Minister may revise or replace guidance published under this section.
(4) The Minister must publish any revised or replacement guidance.
(5) The Minister must lay a copy of guidance published under this section (including revised or replacement guidance) before Parliament.
(1) As soon as reasonably practicable after the end of each financial year, the Minister must prepare a report stating how many times the powers in subsection (3) were exercised in that financial year.
(2) The Minister must—
(a) publish each report, and
(b) lay a copy of each report before Parliament.
(3) The powers are—
(a) the power to issue an information notice under section 3,
(b) the power to apply for or execute a warrant under section 8(1) of the Police and Criminal Evidence Act 1984 (“the 1984 Act”) that is conferred by virtue of section 7,
(c) the power to obtain access to material under section 9(1) of, and Schedule 1 to, the 1984 Act that is conferred by virtue of section 7,
(d) the powers under section 19 of the 1984 Act (general power of seizure etc) that are conferred by virtue of section 7,
(e) the power to apply for an order under section 8,
(f) the power to give a recovery notice under section 11,
(g) the power to apply for a recovery order under section 16,
(h) the power to make a direct deduction order under section 17,
(i) the power to make a deduction from earnings order under section 39, and
(j) the power to impose a penalty under section 51.
(4) “Financial year” means—
(a) the period beginning with the day on which Part 1 of this Act comes fully into force and ending with the following 31 March (which is the first financial year), and
(b) each subsequent period of 12 months beginning with 1 April.
(5) Before acting under subsection (2) the Minister must exclude from the report any matter which the Minister thinks is likely to prejudice any—
(a) criminal investigation,
(b) other investigation,
(c) criminal proceedings, or
(d) civil proceedings.
(6) If the Minister—
(a) excludes any matter from the report in reliance on subsection (5), and
(b) in a subsequent financial year thinks that the excluded matter is no longer likely to prejudice the investigation or proceedings concerned,
the Minister must include the matter in the report that relates to that subsequent financial year.
(1) An authorised investigator or authorised officer must keep a written record of each exercise of a power in subsection (3) by that investigator or officer.
(2) The record relating to a particular exercise of a power must state—
(a) the name of the authorised investigator or authorised officer,
(b) the power which was exercised,
(c) the date on which the power was exercised, and
(d) the reason the power was exercised.
(3) The powers are—
(a) the power to issue an information notice under section 3,
(b) the power to apply for or execute a warrant under section 8(1) of the Police and Criminal Evidence Act 1984 (“the 1984 Act”) that is conferred by virtue of section 7,
(c) the power to obtain access to material under section 9(1) of, and Schedule 1 to, the 1984 Act that is conferred by virtue of section 7,
(d) the powers under section 19 of the 1984 Act (general power of seizure etc) that are conferred by virtue of section 7,
(e) the power to apply for an order under section 8,
(f) the power to give a recovery notice under section 11,
(g) the power to apply for a recovery order under section 16,
(h) the power to make a direct deduction order under section 17,
(i) the power to make a deduction from earnings order under section 39, and
(j) the power to impose a penalty under section 51.
71 Disclosure of information etc: interaction with external constraints
(1) This section applies in relation to any provision for the disclosure or obtaining of information made by or under this Part.
(2) The provision does not require or authorise any disclosure of information that is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the Investigatory Powers Act 2016.
(3) The disclosure of information in accordance with the provision (as read subject to subsection (2)) does not breach—
(a) any obligation of confidence owed by the person making the disclosure, or
(b) any other restriction on the disclosure of information (however imposed).
(4) The provision does not require or authorise the disclosure or obtaining of information in respect of which a claim to legal professional privilege could be maintained in legal proceedings without the agreement of the person entitled to maintain that claim.
(5) Subsection (4) does not apply in relation to the provisions of the Police and Criminal Evidence Act 1984 as applied by section 7.
(1) Subject to the following provisions of this section, this Part binds the Crown and applies in relation to Crown premises as it applies in relation to any other premises.
(2) In this section, “Crown premises” means premises held, or used by, or on behalf of the Crown.
(3) Sections 16 to 38 (recovery orders and recovery from bank accounts) and Chapter 5 (penalties) do not bind the Crown.
(4) If the Minister or the Secretary of State certifies that it appears appropriate in the interests of national security that powers of entry conferred by this Part should not be exercisable in relation to Crown premises specified in the certificate, those powers are not exercisable in relation to those premises.
(5) No power of entry conferred by, or by virtue of, this Part may be exercised in relation to—
(a) land belonging to His Majesty in right of His private estates, or
(b) premises occupied for the purposes of either House of Parliament.
(6) In subsection (5)(a), the reference to His Majesty’s private estates is to be read in accordance with section 1 of the Crown Private Estates Act 1862.
(1) In this Part—
“authorised officer” has the meaning given by section 67;
“bank” has the meaning given by section 36(1);
“claimed amount” has the meaning given by section 10(1)(a);
“the core functions” has the meaning given by section 1;
“direct deduction order” means a regular direct deduction order or a lump sum direct deduction order;
“fraud” includes—
the offences in sections 1 and 11 of the Fraud Act 2006 (fraud and obtaining services dishonestly),
the offences in sections 6 and 7 of that Act (possessing, making or supplying articles for use in frauds), and
the offence at common law of conspiracy to defraud;
“information” means information in the form of a document or in any other form;
“joint account” means an account held by more than one person;
“liable person” has the meaning given by section 11(1);
“lump sum direct deduction order” has the meaning given by section 17(5);
“the Minister” means the Minister for the Cabinet Office;
“payable amount” has the meaning given by section 15;
“public authority” means a person with functions of a public nature so far as acting in the exercise of those functions;
“recoverable amount” has the meaning given by section 1(3);
“regular direct deduction order” has the meaning given by section 17(4);
“sole account” means an account held by one person;
“suspected fraud” is conduct which the Minister has reasonable grounds to suspect may constitute fraud;
“working day” means any day other than—
Saturday or Sunday, or
a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom.
(2) For the purposes of applying this Part in relation to the offences in sections 6 and 7 of the Fraud Act 2006 (possessing, making or supplying articles for use in frauds), references in this Part to fraud against a public authority are to be read as including the commission of those offences by—
(a) in relation to section 6 of the Fraud Act 2006, possessing or having control of an article for use in the course of or in connection with a fraud against a public authority, and
(b) in relation to section 7 of that Act, making, adapting, supplying or offering to supply an article—
(i) knowing that it is designed or adapted for use in the course of or in connection with fraud against a public authority, or
(ii) intending it to be used to commit, or assist in the commission of, fraud against a public authority.
(3) In this Part, references to giving a notice or other document (however expressed), include sending the notice or document by post.
(4) For the purposes of this Part—
(a) court proceedings (including an appeal) are not finally determined until any appeal relating to the proceedings has been withdrawn, abandoned or determined (ignoring any possibility of an appeal out of time with permission), and
(b) a final determination is the determination reached when court proceedings are finally determined.
(1) Regulations under this Part are to be made by statutory instrument.
(2) A power to make regulations under any provision of this Part includes power to make—
(a) consequential, supplementary, incidental, transitional or saving provision;
(b) different provision for different purposes.
(3) Where regulations under this Part are subject to “the affirmative procedure”, the regulations may not be made unless a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, each House of Parliament.
(4) Where regulations under this Part are subject to “the negative procedure”, the statutory instrument containing them is subject to annulment in pursuance of a resolution of either House of Parliament.
(5) Any provision that may be made by regulations under this Part subject to the negative procedure may be made in regulations subject to the affirmative procedure.
(1) The Social Security Administration Act 1992 is amended in accordance with subsections (2) to (4).
(2) In Part 7 (information), before section 121E (and the italic heading before it) insert—
Eligibility verification
Eligibility verification
121DB Schedule 3B makes provision about a power for the Secretary of State to obtain information for the purposes of assisting in identifying incorrect payments of certain benefits.
(3) In section 190(1) (Parliamentary control of orders and regulations), after paragraph (ac) (inserted by section 95(4) of this Act) insert—
(ad) regulations under paragraph 2(1)(b) or 19(2) of Schedule 3B;
.
(4) After Schedule 3A insert, as Schedule 3B, the Schedule in Part 1 of Schedule 3 to this Act.
(5) Part 2 of Schedule 3 to this Act makes amendments to the Proceeds of Crime Act 2002.
After section 121DB of the Social Security Administration Act 1992 (inserted by section 78 of this Act) insert—
Independent review
121DC (1) The Secretary of State must appoint an independent person to carry out reviews of the exercise of the Secretary of State’s functions under Schedule 3B (eligibility verification).
(2) After each review, the independent person must as soon as practicable—
(a) prepare a report, and
(b) submit the report to the Secretary of State.
(3) On receiving a report, the Secretary of State must—
(a) publish it, and
(b) lay a copy before Parliament.
(4) The first review must relate to the period of 12 months beginning with the day on which section 78 of the Public Authorities (Fraud, Error and Recovery) Act 2025 comes fully into force.
(5) Subsequent reviews must relate to subsequent periods of 12 months.
(6) Each review must consider the extent to which—
(a) the Secretary of State’s exercise of powers under Schedule 3B has complied with the requirements of the Schedule and any code of practice in force under Part 5 of the Schedule during the period,
(b) the actions taken by persons given an eligibility verification notice have complied with the requirements of Schedule 3B, and
(c) the exercise of the Secretary of State’s powers under Schedule 3B has been effective in assisting in identifying incorrect payments of relevant benefits during the period covered by the review.
(7) Regulations may confer functions on a person for the purposes of securing compliance with subsections (1) to (6).
Independent review: further provision
121DD (1) The Secretary of State must disclose information to the independent person appointed under section 121DC(1), or to a person acting on behalf of the independent person, where the information is reasonably required for the purposes of reviews being carried out under section 121DC.
(2) Subsection (1) does not authorise the disclosure of information that is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the Investigatory Powers Act 2016.
(3) A disclosure of information under subsection (1) (as read subject to subsection (2)) does not breach—
(a) any obligation of confidence owed by the person making the disclosure, or
(b) any other restriction on the disclosure of information (however imposed).
(1) Part 2 of the Police Reform Act 2002 (complaints and misconduct) is amended as follows.
(2) In section 10 (general functions of the Director General of the Independent Office for Police Conduct)—
(a) in subsection (1), at the end of paragraph (gc) (inserted by section 9(2)(a) of this Act) insert
; and
(gd) to carry out such corresponding functions in relation to DWP investigators acting in the exercise of functions conferred on them by section 109D of the Social Security Administration Act 1992 (Police and Criminal Evidence Act 1984 powers for DWP investigators).
,
(b) in subsection (3), after paragraph (bf) (inserted by section 9(2)(b) of this Act) insert—
(bg) any regulations under section 26H of this Act (DWP investigators);
, and
(c) after subsection (7A) (inserted by section 9(2)(c) of this Act insert—
(7B) In this section, “DWP investigators” means authorised investigators within the meaning given by section 109D of the Social Security Administration Act 1992.
(3) After section 26G (inserted by section 9 of this Act) insert—
DWP investigators
26H (1) The Secretary of State may make regulations conferring functions on the Director General in relation to DWP investigators acting in the exercise of functions conferred on them by section 109D of the Social Security Administration Act 1992 (Police and Criminal Evidence Act 1984 powers for DWP investigators).
(2) Regulations under this section may, in particular—
(a) apply (with or without modifications), or make provision similar to, any provision of or made under this Part;
(b) make provision for payment by the Secretary of State to, or in respect of, the Office or in respect of the Director General.
(3) The Director General and the Parliamentary Commissioner for Administration may jointly investigate a matter in relation to which—
(a) the Director General has functions by virtue of this section, and
(b) the Parliamentary Commissioner for Administration has functions by virtue of the Parliamentary Commissioner Act 1967.
(4) The Secretary of State may disclose information to the Director General or to a person acting on the Director General’s behalf, for the purposes of the exercise, by the Director General or by any person acting on the Director General’s behalf, of a DWP complaints function.
(5) The Director General and the Parliamentary Commissioner for Administration may disclose information to each other for the purposes of the exercise of a function—
(a) by virtue of this section, or
(b) under the Parliamentary Commissioner Act 1967.
(6) Regulations under this section may, in particular, make—
(a) further provision about the disclosure of information under subsection (4) or (5);
(b) provision about the further disclosure of information that has been so disclosed.
(7) A disclosure of information authorised by or under this section does not breach—
(a) any obligation of confidence owed by the person making the disclosure, or
(b) any other restriction on the disclosure of information (however imposed).
(8) No provision made by or under this section authorises a disclosure of information that is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the Investigatory Powers Act 2016.
(9) In this section—
“DWP complaints function” means a function in relation to the exercise of functions conferred by section 109D of the Social Security Administration Act 1992;
“DWP investigator” means an authorised investigator within the meaning given by section 109D of that Act.
In the Social Security Administration Act 1992, after section 109H (inserted by section 90 of this Act) insert—
Independent review
109I (1) The Secretary of State must appoint an independent person to carry out reviews of the exercise of functions under sections 109A to 109H and Schedule 3ZD (“investigative functions”) by or on behalf of the Secretary of State.
(2) After each review, the independent person must as soon as practicable—
(a) prepare a report on the review, and
(b) submit the report to the Secretary of State.
(3) On receiving a report, the Secretary of State must—
(a) publish it, and
(b) lay a copy before Parliament.
(4) Each review must consider the extent to which —
(a) investigative functions have been exercised in compliance with the requirements of provisions mentioned in subsection (1), relevant codes of practice and relevant guidance, and
(b) the exercise of those functions has been effective in meeting the purposes set out in section 109A(2).
(5) Each report must contain any recommendations which the independent person considers appropriate in light of the review to which it relates.
(6) In subsection (4)(a), “relevant codes of practice” and “relevant guidance” mean codes of practice and guidance to which the Secretary of State must have regard in exercising investigative functions.
Independent review: further provision
109J (1) The Secretary of State may give the independent person appointed under section 109I(1) directions as to the period to be covered by each review under section 109I.
(2) The Secretary of State must consult the independent person before giving a direction under subsection (1).
(3) The Secretary of State may disclose information to the independent person, or to a person acting on behalf of the independent person, for the purposes of reviews being carried out under section 109I.
(4) Regulations may confer functions on a person for the purposes of securing compliance with section 109I.
(5) The Secretary of State may comply with the duty in section 109I(1) by appointing different independent persons to carry out reviews in relation to the exercise of investigative functions—
(a) in England and Wales, and
(b) in Scotland.
In the Social Security Administration Act 1992, after section 71ZH insert—
Recovery of non-benefit payments
Overpayment of non-benefit payments: overview and recovery
71ZI (1) For the purposes of this section and sections 71ZJ and 71ZK, an overpayment of a non-benefit payment occurs where—
(a) a person (“P”) misrepresents, or fails to disclose, a material fact, and
(b) in consequence of the misrepresentation or failure, P or another person receives a non-benefit payment, or an amount of a non-benefit payment, (whether directly or indirectly) that they would not otherwise have received,
and the “overpayment” is that payment or amount.
(2) The overpayment is recoverable from P as if it were an amount recoverable under section 71(1) if, in relation to the misrepresentation or failure to disclose, P—
(a) is convicted of an offence (under this Act or any other enactment), or
(b) agrees to pay a penalty under section 115A.
(3) But subsection (2) is subject to section 71ZJ.
(4) The right to recover an overpayment under this section does not affect any other right that the Secretary of State may have to recover the overpayment (or any other amount in relation to the non-benefit payment).
(5) In this section and sections 71ZJ and 71ZK, “non-benefit payment” has the meaning given by section 121DA(5).
Overpayment of non-benefit payments: overpayment decision and notice
71ZJ (1) Before exercising powers under this Act to recover an overpayment of a non-benefit payment from a person (“P”)—
(a) the Secretary of State must give a notice (an “overpayment notice”) to P, and
(b) the condition in subsection (5) must be met (opportunity for P to challenge the notice).
(2) The Secretary of State may give P an overpayment notice only if—
(a) P has been convicted of an offence (under this Act or any other enactment), or
(b) it appears to the Secretary of State that there are grounds to institute proceedings against P for an offence (under this Act or any other enactment),
in relation to the overpayment.
(3) An overpayment notice must—
(a) state the amount that the Secretary of State regards as an overpayment,
(b) provide the Secretary of State’s reasons for regarding that amount as an overpayment,
(c) set out the effect of the giving of the overpayment notice, and
(d) set out P’s right to seek a review of the notice and the right to appeal the outcome of that review (see section 71ZK).
(4) In subsection (3)(c), the reference to the effect of the giving of the overpayment notice is a reference to the Secretary of State’s powers to—
(a) invite P to agree to a penalty under section 115A in relation to the overpayment;
(b) recover the overpayment (if P agrees to pay such a penalty, or is convicted of an offence, in relation to the overpayment).
(5) The condition in this subsection is met where—
(a) the time for P to seek a review of the overpayment notice has passed without P seeking a review, or
(b) if P sought a review of the notice within the time allowed, the review has taken place and—
(i) the period mentioned in section 71ZK(6)(a) for P to appeal against the outcome of the review has passed without P bringing an appeal, or
(ii) P’s appeal (including any onward appeal) against the outcome of the review has been withdrawn, abandoned or finally determined.
Overpayment of non-benefit payments: reviews and appeals
71ZK (1) A person (“P”) given an overpayment notice under section 71ZJ may apply to the Secretary of State for a review of the notice on the following grounds—
(a) that there has been no overpayment of a non-benefit payment, or
(b) that the amount stated in the notice is not correct.
(2) An application under subsection (1) must be made before the end of the period of 1 month beginning with the day after the day on which P was given the notice.
(3) On a review, the Secretary of State may—
(a) uphold the notice,
(b) amend the notice, or
(c) revoke the notice.
(4) The Secretary of State must notify P of the outcome of the review.
(5) Where an overpayment notice is upheld or varied on a review, P may appeal to the First-tier Tribunal against the notice on the following grounds—
(a) that there has been no overpayment, or
(b) that the amount stated in the notice is not correct.
(6) An appeal under subsection (5) may not be brought after the end of—
(a) the period of 1 month beginning with the day after the day on which P is notified of the outcome of the review, or
(b) such longer period (if any) as the Tribunal considers reasonable in all the circumstances.
(7) The First-tier Tribunal may—
(a) uphold the notice,
(b) vary the notice, or
(c) revoke the notice.