The Income-related Benefits (Subsidy to Authorities) Order 1998

Additions to subsidy

18.—(1) Subject to paragraphs (8), (9) and (10), the additions referred to in article 13(1) are—

(a) where following the loss, destruction or non-receipt, or alleged loss, destruction or non-receipt of original instruments of payment of relevant benefit, an authority makes duplicate payments and the original instruments have been or are subsequently encashed, an amount equal to 25 per cent. of the amount of the duplicate payments;

(b) subject to paragraphs (2) and (3), where, during the relevant year, it is discovered that an overpayment of community charge benefit or relevant benefit has been made and an amount is to be deducted under article 19 in relation to that overpayment, an amount equal to—

(i) in the case of a departmental error overpayment, 95 per cent. of so much of the overpayment as has not been recovered by the authority;

(ii) in the case of a fraudulent overpayment 95 per cent. of the overpayment; or

(iii) except where head (i) or (ii) above applies, 25 per cent. of the overpayment;

(c) where, during the relevant year, it is discovered that an overpayment in respect of which a deduction was made under article 11 or 19 of the 1994 Order, the 1995 Order, the 1996 Order or the 1997 Order (other than a deduction under article 11(1)(g) or 19(1)(c) of the 1994 Order or 11(1)(f) or 19(1)(c) of the 1995, 1996 or 1997 Orders) or, in respect of a year earlier than the relevant year, under article 19 (other than a deduction under article 19(1)(f)), as the case may be, was a fraudulent overpayment, the amount, if any, by which 95 per cent. of any such overpayment exceeds the amount of any subsidy that has been paid in respect of that overpayment;

(d) in the case of an authority, other than Scottish Homes, identified in column (1) of Schedule 1, the sum specified in relation to that authority in column (5) of that Schedule.

(2) The amount under paragraph (1)(b) shall not include an amount in relation to—

(a) an authority error overpayment;

(b) any technical overpayment; or

(c) any overpayment discovered in the relevant year, which arose as a result of a reduction in the amount of council tax a person is or was liable to pay.

(3) In the case of a departmental error overpayment, where some or all of that overpayment is recovered by the authority, no addition shall be applicable to the authority in respect of the amount so recovered.

(4) In paragraphs (1)(b)(i) and (3) and in article 19(1)(e) “departmental error overpayment”means an overpayment caused by a mistake made, whether in the form of an act or omission—

(a) by an officer of the Department of Social Security or the Department for Education and Employment, acting as such; or

(b) in a decision of an adjudication officer, social security appeal tribunal or Social Security Commissioner appointed in accordance with sections 38(1), 40(1), 51(1) and 52(1) of the Act (appointment of adjudication officers, chairmen and members of social security appeal tribunals and Commissioners),

where the claimant, a person acting on his behalf or any other person to whom the payment is made did not cause or materially contribute to that mistake.

(5) In paragraph (1)(b)(ii) and (c), in article 19(1)(f) and in paragraph 1 of Schedule 5 “fraudulent overpayment” means an overpayment in respect of a period falling wholly or partly after 31st March 1993 and which—

(a) is so classified by an officer of the authority, whom the authority has designated for the purpose of so classifying, after that date; and

(b) occurs as a result of the payment of relevant benefit or community charge benefit arising in consequence of—

(i) a breach of section 111A or 112(1) of the Act (dishonest or false representations for obtaining benefit)(1); or

(ii) a person knowingly failing to report a relevant change of circumstances, contrary to the requirements of regulation 75 of the Housing Benefit Regulations(2), regulation 63 of the Community Charge Benefits Regulations or of regulation 65 of the Council Tax Benefit Regulations, as the case may be, (duty to notify change of circumstances), with intent to obtain or retain such relevant benefit or community charge benefit for himself or another.

(6) In paragraph (2)(a) “authority error overpayment” means an overpayment caused by a mistake made, whether in the form of an act or omission, by an authority, where the claimant, a person acting on his behalf or any other person to whom the payment is made did not cause or materially contribute to that mistake.

(7) In paragraph (2)(b) “technical overpayment” means that part of an overpayment which occurs as a result of a rebate or council tax benefit being awarded in advance of the payment when—

(a) a change of circumstances, which occurs subsequent to that award, reduces or eliminates entitlement to that rebate or benefit; or

(b) the authority identifies, subsequent to that award, a recoverable overpayment which does not arise from a change in circumstances,

but shall not include any part of that overpayment occurring before the benefit week following the week in which the change is disclosed to the authority or it identifies that overpayment.

(8) Except for paragraphs (1)(b)(ii), (1)(c) and (5), this article shall not apply to that part of any community charge benefit or relevant benefit in respect of a case to which paragraph (15) of regulation 72 of the Housing Benefit Regulations(3), paragraph (16) of regulation 62 of the Council Tax Benefit Regulations(4) or paragraph (18) of regulation 60 of the Community Charge Benefits Regulations (time and manner in which claims are to be made), as the case may be, applies.

(9) Any reference in this article to an overpayment shall not include any relevant benefit for any period overrun or other period immediately following expiry of the specified period determined under regulation 66 of the Housing Benefit Regulations(5) or regulation 57 of the Council Tax Benefit Regulations(6) (benefit periods), as the case may be, except for so much of any relevant benefit to which the claimant would not have been entitled had a claim for that period been duly made and determined.

(10) This article shall not apply to any expenditure in respect of which, had it been qualifying expenditure, the appropriate amount would have been nil.

(1)

Section 111A was inserted by section 13 of the Social Security Administration (Fraud) Act 1997 (c. 47).

(2)

Regulation 75 was amended by S.I. 1990/546.

(3)

Regulation 72(15) was amended by S.I. 1996/462.

(4)

Regulation 62(16) was amended by S.I. 1996/462.

(5)

Regulation 66 was amended by S.I. 1988/1971, 1989/1322 and 1996/1510.

(6)

Regulation 57 was amended by S.I. 1996/1510.