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Part 2Social security etc

Chapter 1Powers to require information

76Information notices

(1)

The Social Security Administration Act 1992 is amended as follows.

(2)

After section 109B insert—

“109BZAPower to require information about suspected fraud etc

(1)

An authorised officer may give a person (“P”) a written notice (an “information notice”) requiring P to give an authorised officer specified information where the officer—

(a)

has reasonable grounds to suspect that a person has committed, is committing or intends to commit a DWP offence, and

(b)

considers that it is necessary and proportionate to require the specified information for a purpose mentioned in section 109A(2)(c) or (d) (investigating compliance with the relevant social security legislation etc).

(2)

Information may be specified in an information notice only if it relates to a person who is identified (by name or description) in the information notice as—

(a)

the person suspected as mentioned in subsection (1)(a), or

(b)

a member of that person’s family (within the meaning of Part 7 of the Contributions and Benefits Act).

(3)

An authorised officer may require P to give specified information only if the officer has reasonable grounds to suspect that P has or is able to access the information.

(4)

An information notice must set out—

(a)

the identity (by name or description) of the person to whom the information requested relates;

(b)

how, where and the period within which the information must be given;

(c)

information about the consequences of not complying with the notice.

(5)

The power under this section to require P to give information includes power to—

(a)

take copies of or extracts from information;

(b)

require P to provide information in a specified form;

(c)

if any specified information is not given to an authorised officer, require P to state, to the best of P’s knowledge and belief, both where that information is and why it has not been given to an authorised officer.

(6)

Subsection (2E) of section 109B (communications data) applies to an information notice under this section as it applies to a notice under that section.

(7)

In this section—

“information” means information in the form of a document or in any other form;

“specified” means—

(a)

specified, or described, in the information notice, or

(b)

falling within a category that is specified or described in the information notice.

(8)

Nothing in this section limits the powers conferred on the Secretary of State by Schedule 3B.”

(3)

In section 109A (authorisations for investigators)—

(a)

in subsection (1), for “109B and 109C below” substitute “109B to 109C”;

(b)

in subsection (2)(d), at the end insert “or other DWP offences”;

(c)

in subsection (8), for “109B and 109C below” substitute “109B to 109C”.

(4)

In section 109B (power to require information)—

(a)

in the heading, at the end insert “about entitlement etc”;

(b)

in subsection (1)(a) omit “or (2A)”;

(c)

in subsection (1)(b), for “any one or more of the purposes mentioned in section 109A(2) above” substitute “a purpose mentioned in section 109A(2)(a) or (b)”;

(d)

omit the following provisions—

(i)

subsection (2A);

(ii)

subsection (2B);

(iii)

subsection (2C);

(iv)

subsection (2D);

(v)

subsection (5);

(vi)

subsection (6);

(vii)

subsection (7A);

(e)

in subsection (7) omit the definitions of—

(i)

“bank”;

(ii)

“credit”;

(iii)

“insurer”;

(iv)

“residential premises”.

(5)

In section 109BA (power of the Secretary of State to require electronic access to information)—

(a)

in subsection (1)—

(i)

in paragraph (a) omit “falling within section 109B(2A)”;

(ii)

in paragraph (b), for “109A(2)” substitute “109A(2)(c) or (d)”;

(b)

in subsection (2)(b), for “109B above” substitute “109BZA”;

(c)

in subsection (4), for “109B” substitute “109BZA”.

(6)

In section 109C (powers of entry), in subsection (6), for “Subsections (2E) and (5) of section 109B apply for the purposes of this section as they apply” substitute “Subsection (2E) of section 109B applies for the purposes of this section as it applies”.

(7)

In section 190 (Parliamentary control of orders and regulations), in subsection (1) omit paragraph (aza).

(1)

The Social Security Fraud Act 2001 is amended as follows.

(2)

In section 3 (code of practice about use of information powers), in subsection (1)—

(a)

in the words before paragraph (a), after the second “of” insert “the powers that are exercisable by an authorised officer under section 109BZA of the Administration Act.”, and

(b)

omit paragraphs (a) and (b).

(3)

Section 4 (arrangements for payments in respect of information) is amended as follows.

(4)

For subsections (1) and (2) substitute—

“(1A)

The Secretary of State must ensure that such arrangements (if any) are in force as the Secretary of State thinks appropriate for requiring or authorising, in such cases as the Secretary of State thinks fit, the making of such payments as the Secretary of State considers appropriate in respect of compliance with relevant obligations by any person.

(1B)

In subsection (1A), “relevant obligation” means an obligation to provide information, or access to information, under section 109BZA or 109BA of the Administration Act.”

(5)

Omit subsection (4).

78Eligibility verification

(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

121DBEligibility verification

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.

79Eligibility verification: independent review

After section 121DB of the Social Security Administration Act 1992 (inserted by section 78 of this Act) insert—

“121DCIndependent review

(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).

121DDIndependent review: further provision

(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).”

Chapter 2Powers of entry, search and seizure etc

80Entry, search and seizure in England and Wales

(1)

The Social Security Administration Act 1992 is amended as follows.

(2)

After section 109C insert—

“109DPowers of entry, search and seizure in England and Wales

(1)

This section confers functions on and in relation to authorised investigators, including by applying provisions of the Police and Criminal Evidence Act 1984 (“the 1984 Act”) with modifications.

(2)

The functions are exercisable only in relation to premises and items in England and Wales.

(3)

The provisions of the 1984 Act listed in subsection (4) apply in relation to investigations of DWP offences conducted by authorised investigators as they apply in relation to investigations of offences conducted by police officers, subject to the modifications in Schedule 3ZC.

(4)

The provisions are—

(a)

section 8(1) to (5) (power of justice of the peace to authorise entry and search of premises);

(b)

section 9(1) and Schedule 1 (special provisions as to access);

(c)

section 15 (search warrants: safeguards);

(d)

section 16 (execution of warrants);

(e)

section 19 (general power of seizure etc);

(f)

section 20 (extension of powers of seizure to computerised information);

(g)

section 21 (access and copying);

(h)

section 22 (retention);

(i)

sections 10 to 14, 23 and 118 (interpretation provisions), so far as necessary for the application of the provisions mentioned in paragraphs (a) to (h).

(5)

An authorised investigator may use reasonable force in respect of property if necessary in the exercise of a power conferred by a provision of the 1984 Act as applied by subsections (3) and (4).

(6)

Subsections (7) to (9) apply where a person has the same powers as an authorised investigator by virtue of section 16(2A) of the 1984 Act as applied by subsections (3) and (4).

(7)

Where the person is a constable, the constable may use reasonable force in respect of property or persons if necessary in the exercise of the powers.

(8)

Where the person is not a constable, the person may use reasonable force in respect of property if necessary in the exercise of the powers.

(9)

But a person may use reasonable force under subsection (8) only in the company, and under the supervision, of an authorised investigator.

(10)

For the purposes of this section and Schedule 3ZC an authorised investigator is an individual who is authorised by the Secretary of State to exercise the powers conferred by this section.

(11)

An individual may be so authorised only if the individual is an official of a government department and—

(a)

is a higher executive officer, or

(b)

has a grade that is equivalent to, or higher than, that of a higher executive officer.”

(3)

After Schedule 3ZB (inserted by section 96(3) of this Act) insert, as Schedule 3ZC, the Schedule in paragraph 1 of Schedule 4 to this Act.

81Entry, search and seizure in Scotland

(1)

The Social Security Administration Act 1992 is amended as follows.

(2)

After section 109D (inserted by section 80 of this Act) insert—

“109EPowers of entry, search and seizure in Scotland

Schedule 3ZD confers functions that are exercisable only in relation to premises and items in Scotland and that correspond to the functions conferred by section 109D in relation to England and Wales.”

(3)

After Schedule 3ZC (inserted by section 80(3) of this Act) insert, as Schedule 3ZD, the Schedule in paragraph 2 of Schedule 4 to this Act.

82Entry, search and seizure: Crown application

After section 109E of the Social Security Administration Act 1992 (inserted by section 81 of this Act) insert—

“109FEntry, search and seizure: Crown etc application

(1)

Subject to subsections (2) and (3), the powers conferred by section 109D and by Schedule 3ZD, bind the Crown and apply in relation to Crown premises as they apply in relation to any other premises.

(2)

If 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.

(3)

No power of entry conferred by, or by virtue of, the provisions mentioned in subsection (1) 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.

(4)

In this section—

(a)

“Crown premises” means premises held, or used by, or on behalf of the Crown, and

(b)

the reference to His Majesty’s private estates is to be read in accordance with section 1 of the Crown Private Estates Act 1862.”

83Offence of delay, obstruction etc

In the Social Security Administration Act 1992, in section 111 (delay, obstruction etc of inspector)—

(a)

in paragraph (a) of subsection (1), after “officer” insert “, or authorised investigator,”, and

(b)

after subsection (2) insert—

“(2A)

In subsection (1)(a), “authorised investigator” means an individual who is authorised by the Secretary of State to exercise the powers conferred by section 109D or Schedule 3ZD.”

84Disposal of property

In the Social Security Administration Act 1992, after section 109F (inserted by section 82 of this Act) insert—

“109GDisposal of property

(1)

The appropriate court may, on an application by the Secretary of State or a person with an interest in relevant property—

(a)

order the delivery of the relevant property to the person appearing to the court to be its owner, or

(b)

if its owner cannot be ascertained, make any other order about the relevant property.

(2)

An order under subsection (1)(a) may include provision for the Secretary of State to make any changes to the relevant property that the court considers necessary for the purpose of avoiding or reducing any risk of the relevant property being used in the commission of an offence.

(3)

An order under subsection (1)(b) may not provide for the destruction or disposal of relevant property until the end of the period of 6 months beginning with the day on which the order is made.

(4)

An order under subsection (1)(b) (“the first order”) does not prevent further applications being made for an order under subsection (1) in respect of the relevant property to which the first order applies.

(5)

Where an order is made following a further application—

(a)

the order may not provide for the destruction or disposal of the relevant property before the end of the period of 6 months beginning with the day on which the first order was made, but

(b)

the order may otherwise contain such provision as to the timing of the destruction or disposal of the relevant property as the court thinks fit.

(6)

In this section—

“appropriate court” means—

(a)

in relation to England and Wales, a magistrates’ court, and

(b)

in relation to Scotland, the sheriff;

“relevant property” means tangible property which has come into the possession of the Secretary of State in the course of, or in connection with, an investigation into a DWP offence.”

85Amendments to the Criminal Justice and Police Act 2001

(1)

The Criminal Justice and Police Act 2001 is amended as follows.

(2)

In section 57 (retention of seized items), in subsection (1), after paragraph (w) (inserted by the Football Governance Act 2025) insert—

“(x)

paragraph 4(3) of Schedule 3ZD to the Social Security Administration Act 1992.”

(3)

In section 63 (copies), in subsection (2), at the end insert—

“(j)

paragraph 2(1)(e) and (f) of Schedule 3ZD to the Social Security Administration Act 1992.”

(4)

In Part 1 of Schedule 1 (powers of seizure to which section 50 of the Act applies), after paragraph 56 insert—

“Social Security Administration Act 1992

56ZA

The power of seizure conferred by paragraph 2(1)(d) of Schedule 3ZD to the Social Security Administration Act 1992.”

86Incidents etc in England and Wales

(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—

“26HDWP investigators

(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.”

87Incidents etc in Scotland

(1)

The Police and Fire Reform (Scotland) Act 2012 (Consequential Provisions and Modifications) Order 2013 (S.I. 2013/602) is amended as follows.

(2)

In Article 2 (interpretation), at the appropriate place insert—

““DWP investigator” means an authorised investigator within the meaning given by paragraph 6 of Schedule 3ZD to the Social Security Administration Act 1992;”.

(3)

In Article 3 (agreements to investigate serious incidents), after paragraph (17B) insert—

“(17C)

The Commissioner and the Secretary of State may enter into an agreement for the Commissioner to investigate and report, where requested to do so by the Secretary of State, on any serious incident involving DWP investigators acting in the exercise of functions conferred on them by Schedule 3ZD to the Social Security Administration Act 1992 (entry, search and seizure powers).

(17D)

A “serious incident involving DWP investigators” has the same meaning as a “serious incident involving the police” in section 41B of the 2006 Act except that “a person serving with the police” means a DWP investigator acting in the exercise of functions conferred on them by Schedule 3ZD to the Social Security Administration Act 1992.”

(4)

In Article 4 (investigation of crimes and deaths), after paragraph (i) insert “;

(j)

a DWP investigator acting in the exercise of functions conferred on them by Schedule 3ZD to the Social Security Administration Act 1992.”

Chapter 3Further provision relevant to investigatory powers

88Devolved benefits

In the Social Security Administration Act 1992, after section 121D, insert—

“121DZADevolved Benefits

(1)

Subject to subsection (3), powers of the Secretary of State under this Part (including powers of an individual who has the Secretary of State’s authorisation for the purposes of this Part as mentioned in section 109A) are not exercisable in relation to a devolved benefit.

(2)

A benefit is a devolved benefit if functions under this Part are exercisable in relation to the benefit by the Scottish Ministers by virtue of section 53 of the Scotland Act 1998, read with section 32 of the Scotland Act 2016.

(3)

The powers referred to in subsection (1) are exercisable in relation to a devolved benefit where arrangements made under section 93(1) of the Scotland Act 1998 (agency arrangements) have the effect that the Secretary of State is to exercise any functions of the Scottish Ministers under this Part on behalf of the Scottish Ministers in relation to the benefit.”

89DWP offence

In the Social Security Administration Act 1992, in section 121DA (interpretation of Part relating to enforcement), in subsection (5), at the end insert—

““DWP offence” means—

(a)

a benefit offence,

(b)

any other offence relating to a benefit or grant in relation to which the Secretary of State with responsibility for social security exercises functions (whether or not the benefit or grant concerns social security),

(c)

an offence relating to the allocation or use of a national insurance number, and

(d)

any attempt or conspiracy to commit an offence within paragraph (b) or (c).”

90Disclosure of information etc: interaction with external constraints

In Part 6 of the Social Security Administration Act 1992 (enforcement), after section 109G (inserted by section 84 of this Act) insert—

“109HDisclosure 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 so far as the provision applies in connection with the exercise of powers by or on behalf of the Secretary of State.

(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)

In the application of subsection (4) in Scotland, the reference to legal professional privilege is to be read as a reference to confidentiality of communications.

(6)

A person may not be required under the provision to give information which tends to incriminate the person or the person’s spouse or civil partner.

(7)

A person who provides services free of charge in relation to social security, housing (including services that involve the provision of accommodation) or debt, may not be required under the provision to give personal data about persons receiving such a service free of charge.

(8)

The provision does not require or authorise the disclosure of—

(a)

journalistic material, or

(b)

excluded material,

within the meanings of the Police and Criminal Evidence Act 1984 (see sections 11 to 13 of that Act).

(9)

But subsections (5) to (9) do not apply in relation to—

(a)

the provisions of the Police and Criminal Evidence Act 1984 as applied by section 109D, and

(b)

Schedule 3ZD.

(10)

In this section “personal data” has the same meaning as in the Data Protection Act 2018 (see section 3(2) of that Act).”

91Giving notices etc

In the Social Security Administration Act 1992, in section 121DA (interpretation of Part relating to enforcement), after subsection (7) insert—

“(8)

In this Part, references to giving a notice or other document (however expressed) include sending the notice or document by post.”

92Independent review

In the Social Security Administration Act 1992, after section 109H (inserted by section 90 of this Act) insert—

“109IIndependent review

(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.

109JIndependent review: further provision

(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.”

Chapter 4Overpayments: recovery and enforcement

93Enforcement of non-benefit payments

In the Social Security Administration Act 1992, after section 71ZH insert—

“Recovery of non-benefit payments

71ZIOverpayment of non-benefit payments: overview and recovery

(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).

71ZJOverpayment of non-benefit payments: overpayment decision and notice

(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.

71ZKOverpayment of non-benefit payments: reviews and appeals

(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.”

94Recovery and enforcement mechanisms

(1)

The Social Security Administration Act 1992 is amended as follows.

(2)

In Part 3, after section 80 insert—

“Further provision about recovery

80AFurther methods of recovery

(1)

This section applies in relation to—

(a)

section 80B (restrictions on use of further methods),

(b)

section 80C (and Schedule 3ZA) (recovery from a person’s bank accounts etc), and

(c)

section 80D (and Schedule 3ZB) (disqualification from driving).

(2)

References to a recoverable amount are to—

(a)

an amount which is recoverable by virtue of any provision of sections 71 to 78, and

(b)

a penalty which is payable by virtue of any provision of sections 115A to 115D,

other than an amount or a penalty relating to a devolved benefit.

(3)

For the purposes of this Part, a benefit is a devolved benefit if functions under this Part are exercisable in relation to the benefit by the Scottish Ministers by virtue of section 53 of the Scotland Act 1998, read with section 32 of the Scotland Act 2016.

(4)

References to a “liable person” are to a person liable to pay a recoverable amount.

(5)

Nothing in Schedule 3ZA or Schedule 3ZB affects any other method of recovery or enforcement that is available in relation to a recoverable amount.

80BRestrictions relating to further methods

(1)

The Secretary of State may not exercise a power under Schedule 3ZA or Schedule 3ZB for the purpose of recovering an amount from a liable person unless the Secretary of State has—

(a)

given the liable person a reasonable opportunity to settle their liability in respect of the amount,

(b)

notified the liable person that the Secretary of State may exercise the power for the purpose of recovering the amount if the liable person does not settle their liability in respect of the amount, and

(c)

given the liable person a summary of how the power would be exercised.

(2)

The Secretary of State may not—

(a)

make a direct deduction order under Schedule 3ZA,

(b)

re-start a requirement to make deductions and payments that has been suspended under paragraph 16 of Schedule 3ZA, or

(c)

apply for a suspended or immediate DWP disqualification order under Schedule 3ZB,

in respect of a liable person if subsection (3) or (4) applies.

(3)

This subsection applies if it is reasonably possible to recover the amount from the liable person by way of deductions from earnings.

(4)

This subsection applies if the liable person is entitled to and in receipt of a relevant benefit.

(5)

The Secretary of State may not exercise the powers under Schedule 3ZB for the purpose of recovering an amount from a liable person unless satisfied that it is not reasonably possible to recover the amount by way of a direct deduction order under Schedule 3ZA.

(6)

Subsections (7) and (8) apply where a liable person becomes entitled to and in receipt of a relevant benefit at a time when—

(a)

a direct deduction order under Schedule 3ZA, or

(b)

an immediate DWP disqualification order under Schedule 3ZB,

has effect in relation to the liable person.

(7)

In a case within subsection (6)(a), the Secretary of State must revoke or suspend the direct deduction order.

(8)

In a case within subsection (6)(b)—

(a)

the Secretary of State must notify the court that made the immediate DWP disqualification order that the person to whom the order relates has become entitled to and in receipt of a relevant benefit, and

(b)

a court officer must make an order (without a hearing) revoking the immediate DWP disqualification order.

(9)

In this section—

“court officer” means a member of the staff of the court in question authorised by the court for the purposes of subsection (8)(b);

“deductions from earnings” means deductions from earnings under, or by virtue of, section 71 or 71ZD;

“relevant benefit” means a benefit that is—

(a)

administered by the Secretary of State with responsibility for social security, and

(b)

recoverable under section 71 or 71ZB.”

(3)

In section 111 (delay, obstruction etc of inspector), in subsection (1)(b), after “otherwise than” insert “under Schedule 3ZA, Schedule 3B or”.

(4)

In section 191 (interpretation), at the appropriate places insert the following definitions—

“direct deduction order” has the meaning given by paragraph 1 of Schedule 3ZA;;

“immediate DWP disqualification order” has the meaning given by paragraph 2(2) of Schedule 3ZB;;

“lump sum direct deduction order” has the meaning given by paragraph 1(5) of Schedule 3ZA;;

“regular direct deduction order” has the meaning given by paragraph 1(4) of Schedule 3ZA;;

““suspended DWP disqualification order” has the meaning given by paragraph 1(3) of Schedule 3ZB;.

95Recovery from bank accounts etc

(1)

The Social Security Administration Act 1992 is amended as follows.

(2)

After section 80B (inserted by section 94 of this Act) insert—

“80CRecovery from bank accounts

Schedule 3ZA (recovery from bank accounts) makes provision for a recoverable amount to be recoverable directly from a person’s bank account.”

(3)

After Schedule 3 insert, as Schedule 3ZA, the Schedule in Schedule 5 to this Act.

(4)

In section 190 (Parliamentary control of orders and regulations), in subsection (1), after paragraph (ab) insert—

“(ac)

regulations making provision in reliance on paragraph 25(3) of Schedule 3ZA; or”.

96Disqualification from driving

(1)

The Social Security Administration Act 1992 is amended in accordance with subsections (2) and (3).

(2)

After section 80C (inserted by section 95(2) of this Act) insert—

“80DDisqualification from driving

Schedule 3ZB makes provision for a liable person to be disqualified from driving while some or all of a recoverable amount remains unrecovered.”

(3)

After Schedule 3ZA (inserted by section 95(3) of this Act) insert, as Schedule 3ZB, the Schedule in Schedule 6 to this Act.

(4)

The Road Traffic Offenders Act 1988 is amended in accordance with subsections (5) to (7).

(5)

In section 27 (production of licence), in subsection (3), after “Child Support Act 1991” insert “or paragraph 5 of Schedule 3ZB to the Social Security Administration Act 1992”.

(6)

In section 37 (effect of order of disqualification), in subsection (1A), at the end of paragraph (a)—

(a)

omit the “or”, and

(b)

insert—

“(aa)

the disqualification is for a period shorter than 56 days under paragraph 2 of Schedule 3ZB to the Social Security Administration Act 1992, or”.

(7)

In section 42 (removal of disqualification), in subsection (6), after “Act” insert “or under paragraph 2 of Schedule 3ZB to the Social Security Administration Act 1992”.

(8)

In the Road Traffic Act 1988, in section 164 (power of constables to require production of driving licence etc), in subsection (5), after “required under” insert “paragraph 5 of Schedule 3ZB to the Social Security Administration Act 1992,”.

97Code of practice

In the Social Security Administration Act 1992, after section 80D (inserted by section 96 of this Act) insert—

“80ECode of practice

(1)

The Secretary of State must issue a code of practice about the exercise of the Secretary of State’s functions under Schedule 3ZA and Schedule 3ZB.

(2)

The code of practice must include provision about—

(a)

the giving of notices to banks requiring the provision of information under Schedule 3ZA;

(b)

the processing (within the meaning of section 3(4) of the Data Protection Act 2018) of information received in response;

(c)

the circumstances in which penalties may be issued to banks;

(d)

the circumstances in which the Secretary of State expects to exercise functions under Schedule 3ZB.

(3)

Before issuing the code of practice for the first time, the Secretary of State must carry out a public consultation on a draft of the code.

(4)

The requirement in subsection (3) may be satisfied by public consultation carried out before this section comes into force.

(5)

The Secretary of State may from time to time revise and re-issue the code of practice.

(6)

The Secretary of State must lay the code of practice, or any reissued code of practice, before Parliament.”

98Rights of audience

In the Social Security Administration Act 1992, after section 80E (inserted by section 97 of this Act) insert—

“80FRights of audience

(1)

An officer of the Secretary of State who is authorised by the Secretary of State for the purposes of this section has a right of audience and the right to conduct litigation in relation to proceedings for or in connection with the recovery of overpayments under a provision of this Part before—

(a)

a magistrates’ court,

(b)

the county court, and

(c)

the Crown Court.

(2)

In this section, “right of audience” and “right to conduct litigation” have the same meanings as in section 119 of the Courts and Legal Services Act 1990.”

99Recovery of costs

(1)

The Social Security Administration Act 1992 is amended as follows.

(2)

In section 71ZE, omit subsection (3).

(3)

After section 80F (inserted by section 98 of this Act) insert—

“80GRecovery of costs

Any costs which the Secretary of State reasonably incurs in recovering an amount that is recoverable under any provision of sections 71 to 80, Schedule 3ZA or Schedule 3ZB may be recovered by the Secretary of State as if they were amounts recoverable under that provision.”

100Recovery: further provision

In the Social Security Administration Act 1992, after section 80G (inserted by section 99 of this Act) insert—

“80HRecovery: further provision

(1)

Subsection (2) 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 to 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)

In this Part, references to giving a notice or other document (however expressed) include sending the notice or document by post.”

Chapter 5Offences, penalties etc

101Offences: non-benefit payments

(1)

The Social Security Administration Act 1992 is amended as follows.

(2)

In section 111A (dishonest representations for obtaining benefit etc)—

(a)

in subsection (1), in the words after paragraph (b), after “legislation” insert “or a non-benefit payment”;

(b)

after subsection (1G) insert—

“(1H)

For the purposes of subsections (1A) to (1G), references to—

(a)

a person being entitled to, or having a right to receive, a payment under a provision of the relevant social security legislation include references to a person being entitled to, or having a right to receive, or qualifying for, a non-benefit payment, and

(b)

a person’s entitlement to a payment under a provision of the relevant social security legislation include references to a person’s entitlement to, or qualification for, a non-benefit payment.”

(3)

In section 112 (false representations for obtaining benefit etc)—

(a)

after subsection (1) insert—

“(1ZA)

A person is guilty of an offence if, for the purpose of obtaining a non-benefit payment for themselves or another person, they—

(a)

make a statement or representation which they know to be false, or

(b)

produce or furnish, or knowingly cause or knowingly allow to be produced or furnished, any document or information which they know to be false in a material particular.”;

(b)

after subsection (1F) insert—

“(1G)

For the purposes of subsections (1A) to (1F), references to—

(a)

a person being entitled to, or having a right to receive, a payment under a provision of the relevant social security legislation include references to a person being entitled to, or having a right to receive, or qualifying for, a non-benefit payment, and

(b)

a person’s entitlement to a payment under a provision of the relevant social security legislation include references to a person’s entitlement to, or qualification for, a non-benefit payment.”

(4)

In section 121DA(5) (interpretation of Part 6), at the appropriate place insert—

““non-benefit payment” means a prescribed payment which—

(a)

is not a payment of a relevant social security benefit, and

(b)

is made by the Secretary of State with responsibility for social security for the purposes of providing financial assistance to a person, whether directly or indirectly.”

102Penalty as alternative to prosecution: extension to non-benefit payments

(1)

Section 115A of the Social Security Administration Act 1992 (penalty as alternative to prosecution) is amended in accordance with subsections (2) to (6).

(2)

After subsection (1A) insert—

“(1B)

This section also applies where—

(a)

an overpayment notice has been given to a person (“P”) under section 71ZJ (overpayment notice in relation to non-benefit payment), and

(b)

in relation to the overpayment notice, the condition in subsection (1C) is met.

(1C)

The condition in this subsection is met where—

(a)

the time for P to seek a review of the overpayment notice under section 71ZK 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.”

(3)

In subsection (2)(a), after “above” insert “, or in relation to the overpayment notice referred to in subsection (1B),”.

(4)

In subsection (3), after “(1)” insert “or (1B)”.

(5)

In subsection (8), in the words before paragraph (a), after “section” insert “, except in relation to a case referred to in subsection (1B),”.

(6)

After subsection (8) insert—

“(8A)

In relation to a case referred to in subsection (1B), “overpayment” has the meaning given in section 71ZI(1).”

(7)

In section 115B of the Social Security Administration Act 1992 (penalty as alternative to prosecution: colluding employers etc), in subsection (2)(b), after “benefit offence” insert “or an offence in relation to an overpayment of a non-benefit payment”.

(1)

The Social Security Fraud Act 2001 is amended as follows.

(2)

In section 6B(2) (loss of benefits in case of conviction, penalty or caution for benefit offence)—

(a)

in paragraph (a)—

(i)

omit the words from “section 115A” to “or”, and

(ii)

for the words “the corresponding provision for Northern Ireland” substitute “penalty as alternative to prosecution in Northern Ireland”, and

(b)

omit sub-paragraph (i) of paragraph (b).

(3)

In section 6C (section 6B: supplementary provision)—

(a)

in subsection (2)(b) omit the words “the Social Security Act 1998 or”, and

(b)

in subsection (3) omit the words “the Social Security Act 1998 or”.

104Powers of Scottish Ministers

(1)

The following provisions of this Act have effect as if they were pre-commencement enactments for the purposes of section 53 of the Scotland Act 1998, read with section 32 of the Scotland Act 2016—

(a)

sections 76 and 77;

(b)

section 99, so far as relating to an amount that is recoverable by the Scottish Ministers under Part 3 of the Social Security Administration Act 1992;

(c)

section 100.

(2)

Accordingly, an individual who for the time being has the Scottish Ministers’ authorisation for the purposes of Part 6 of the Social Security Administration Act 1992, in accordance with section 109A of that Act as amended by section 76 of this Act, has the functions conferred by sections 109B to 109C of that Act, as amended or, in the case of section 109BZA, as inserted, by section 76 of this Act.

Changes to legislation:

Changes to Legislation

Part 2Social security etc

Chapter 1Powers to require information

76Information notices

(1)

(2)

“109BZAPower to require information about suspected fraud etc

(1)

(a)

(b)

(2)

(a)

(b)

(3)

(4)

(a)

(b)

(c)

(5)

(a)

(b)

(c)

(6)

(7)

(a)

(b)

(8)

(3)

(a)

(b)

(c)

(4)

(a)

(b)

(c)

(d)

(i)

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

(e)

(i)

(ii)

(iii)

(iv)

(5)

(a)

(i)

(ii)

(b)

(c)

(6)

(7)

77Consequential amendments to the Social Security Fraud Act 2001

(1)

(2)

(a)

(b)

(3)

(4)

“(1A)

(1B)

(5)

78Eligibility verification

(1)

(2)

“Eligibility verification

121DBEligibility verification

(3)

“(ad)

(4)

(5)

79Eligibility verification: independent review

“121DCIndependent review

(1)

(2)