Legislation – Public Authorities (Fraud, Error and Recovery) Act 2025

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Part 2Social security etc

Chapter 4Overpayments: recovery and enforcement

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;.