The Social Security (Penalty Notice) Regulations 1997

Notice

2.—(1) Where the Secretary of State or authority gives to a person a written notice under section 115A(2) of the Social Security Administration Act 1992, the notice shall contain the information that—

(a) the penalty only applies to an overpayment which is recoverable under section 71, 71A, 75 or 76 of the Social Security Administration Act 1992(1);

(b) the penalty only applies where it appears to the Secretary of State or authority that the making of the overpayment was attributable to an act or omission by the person and that there are grounds for instituting proceedings for an offence relating to the overpayment;

(c) the penalty is 30 per cent. of the amount of the overpayment, is payable in addition to repayment of the overpayment and is recoverable by the same methods as those by which the overpayment is recoverable;

(d) a person who agrees to pay a penalty may withdraw the agreement within 28 days (including the date of the agreement) by notifying the Secretary of State or authority in the manner specified by the Secretary of State or authority; if the person withdraws the agreement, so much of the penalty as has already been recovered shall be repaid and he will no longer be immune from proceedings for an offence;

(e) if it is decided on review or appeal (or in accordance with regulations) that the overpayment is not recoverable or due, so much of the penalty as has already been recovered shall be repaid;

(f) if the amount of the overpayment is revised on review or appeal, except as covered by a new agreement to pay the revised penalty, so much of the penalty as has already been recovered shall be repaid and the person will no longer be immune from proceedings for an offence;

(g) the payment of a penalty does not give the person immunity from prosecution in relation to any other overpayment or any offence not relating to an overpayment.

(2) The notice shall set out—

(a) the manner specified by the Secretary of State or authority by which the person may agree to pay a penalty;

(b) the manner specified by the Secretary of State or authority by which the person may notify the withdrawal of his agreement to pay a penalty.

(1)

Section 71(2) and (5) was amended by and section 71(5A) was inserted by the Social Security (Overpayments) Act 1996 (c. 51) section 1; section 71(10A) and (10B) was inserted by the Jobseekers Act 1995 (c. 18) section 32(1); section 71(11) was amended by the Jobseekers Act 1995 Schedule 2, paragraph 48.

Section 71A was inserted by the Jobseekers Act 1995 section 18.

Section 75(1) was amended by Schedules 1 and 2 of, and section 75(5) to (7) was inserted by section 16 of, the Social Security (Fraud) Act 1997.

Section 76(1) was amended by the Local Government Finance Act 1992 (c. 14) Schedule 9, paragraph 15(1) and the Local Government Finance (Scotland) Act 1994 (c. 39) Schedule 13, paragraph 175(3); section 76(2) was amended by the Local Government Finance Act 1992 Schedule 9, paragraph 15(2) and Schedule 14; section 76(3)(b) was amended by the Local Government Finance Act 1992 Schedule 9, paragraph 15(3); section 76(4), (5) and (7) was amended by the Local Government Finance Act 1992 Schedule 9, paragraph 15(4) and Schedule 14. The amendments have effect in relation to council tax benefit; section 76 as originally in force continues to have effect for community charge benefit by virtue of the Local Government Finance Act 1992 section 118(4).