Introduction
These explanatory notes relate to the Social Security Fraud Act which received Royal Assent on 11 May 2001. They have been prepared by the Department of Social Security (DSS) in order to assist the reader of the Act and to help inform debate on it. They do not form part of the Act and have not been endorsed by Parliament.
The notes need to be read in conjunction with the Act. They are not, and are not meant to be, a comprehensive description of the Act. So where a clause or part of a clause does not seem to require explanation or comment, none is given.
Structure of the notes
The notes start with a brief overview of the Act as a whole and outline the four main elements contained within the Act. The notes are then divided into four parts which reflect the elements of the Act, and which provide the background to the changes. Each part then finishes with a detailed commentary on the clauses relevant to that part.
CONTENTS
| Page No. | |
|---|---|
| Introduction | 1 |
| Contents | 2 |
| Overview | 5 |
| Information Sharing | 8 |
| Obtaining Information: Clauses 1 to 4 | 8 |
| Summary and background | |
| Clause 1: Additional powers to obtain information. | 9 |
| Clause 2: Electronic access to information. | 10 |
| Clause 3: Code of practice about use of information powers. | 10 |
| Clause 4: Arrangements for payments in respect for information | 10 |
| Commentary on Clauses 1 to 4 | |
| Clause 1: Additional powers to obtain information | 12 |
| Clause 2: Electronic access to information | 15 |
| Clause 3: Code of practice about use of information powers | 17 |
| Clause 4: Arrangements for payments in respect of information | 19 |
| Exchanging Information: Clauses 5 and 6 | |
| Summary and background | |
| Clause 5: Exchange of information with overseas authorities | 20 |
| Commentary on Clause 5 | |
| Exchange of information with overseas authorities | 22 |
| Summary and background | |
| Clause 6: Exchange of information by authorities administering benefit | 24 |
| Commentary on Clause 6 | |
| Exchange of information by authorities administering benefit | 24 |
| Loss of benefit provisions: Clauses 7 to 13 | |
| Summary and background | |
| Clauses 7 to 13 | 25 |
| Commentary on clauses 7 to 13 | |
| Clause 7: Loss of benefit provisions | 29 |
| Clause 8: Effect of offence on joint-claim Jobseeker’s Allowance | 30 |
| Clause 9: Effect of offence on benefits for members of offender’s family | 31 |
| Clause 10: Power to supplement and mitigate loss of benefit provisions | 32 |
| Clause 11: Loss of benefit regulations | 33 |
| Clause 12: Consequential amendments | 34 |
| Clause 13: Interpretation of sections | 34 |
| Penalties as an alternative to prosecution: Clauses 14 and 15 | |
| Summary and background | |
| Clause 14: Delegation of functions | 35 |
| Commentary on Clause 14 | |
| Delegation of functions | 37 |
| Summary and background | |
| Clause 15: Colluding employers | 38 |
| Commentary on Clause 15 | |
| Colluding employers | 40 |
| Offences: Clauses 16 and 17 | |
| Summary and background | |
| Clause 16: Offence to notify a change of circumstances | 42 |
| Commentary on clause 16 | |
| Offence of failing to notify a change of circumstances | 44 |
| Summary and background | |
| Clause 17: Time limit for proceedings in Scotland | 45 |
| Commentary on clause 17 | |
| Time limit for proceedings in Scotland | 46 |
| Hansard References | 47 |
| Commencement | 46 |
