The Social Security Administration Act 1992 (Amendment) Order 2002

Explanatory Note

(This note is not part of the Order)

The Social Security Fraud Act 2001 (c. 11) provides for officers authorised under sections 109A and 110A of the Social Security Administration Act 1992 (c. 5) to require information about individuals from specified private and public sector organisations. These organisations are listed under new section 109B(2A) of the 1992 Act which is inserted by section 1(2) of the 2001 Act. Information may be obtained where it is reasonable for the purposes of fraud investigation as particularised in section 109A(2) and 110A(2).

This Order extends the list under section 109B(2A) as follows:

• in article 2(a), a reference is inserted to the Director of National Savings;

• in article 2(c), paragraph (h) is amended so that reference is made not only to gas suppliers but also to gas distributors;

• in article 2(d), paragraph (i) is similarly amended so as to refer to electricity distributors as well as electricity suppliers.

In addition, article 2(b) modifies paragraph (c) by substituting a reference to “insurer” for that to “insurance company”; and article 3(a) substitutes a new definition of “bank” and inserts a definition of “insurer” in subsection (7) (these definitions are expanded upon in new subsection (7A), inserted by article 3(b)).

The total costs to public and private sector organisations of the information powers introduced by the Social Security Fraud Act 2001 are estimated at between £2.3 million and £7 million per annum. These costs were identified by means of a Regulatory Impact Assessment (RIA) published on 12th March 2001. This Order does not change that estimate. Copies of the RIA are available from the Department for Work and Pensions, Fraud Act Implementation Team, 6th Floor, Adelphi, 1–11 John Adam Street, London WC2N 6HT.