The Social Security (Expenses of Paying Sums in Relation to Vehicle Hire) Regulations 2016

Amendment of the Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance (Claims and Payments) Regulations 2013

5.  After regulation 62 (payment of personal independence payment on behalf of a claimant (Motability)) insert—

“Recovery of expenses

62A.— (1) Paragraph 2 applies where—

(a) an agreement referred to in regulation 62(1)(b) has been entered into; and

(b) a relevant provider is receiving payments of personal independence payment in settlement of liability for payments due under that agreement.

(2) The Secretary of State may require the relevant provider to make payments to meet the reasonable expenses of the Secretary of State in administering the making of the payments of personal independence payment to the relevant provider.

(3) The method by which the expenses under paragraph (2) are to be met is for the Secretary of State to issue an invoice to the relevant provider setting out the expenses that have been incurred and for the relevant provider to pay the sum stated to the Secretary of State.

(4) The first invoice issued by the Secretary of State may recover expenses incurred between 21st July 2016 and the date of the invoice.

(5) Subsequently the Secretary of State may issue invoices no more frequently than annually and only in respect of expenses incurred since the period covered by the previous invoice.

(6) The expenses that the Secretary of State may take into account for the purposes of paragraph (2) include—

(a) the salaries and other costs relating to the employment of staff wholly engaged in the administering of the payments of personal independence payment and where staff have other responsibilities, an apportioned amount of those costs; and

(b) overheads, including rent and other shared costs, relating to those staff.

(7) In determining what expenses were reasonably incurred in administering the making of payments of personal independence payment to a relevant provider, the Secretary of State must have regard to any agreement between the Secretary of State and the relevant provider concerning the level of service to be provided by the Secretary of State in the making of such payments to that relevant provider.”.