2002 No. 3116

SOCIAL SECURITY

The Income-related Benefits (Subsidy to Authorities) Amendment (No. 2) Order 2002

Made

Laid before Parliament

Coming into force

The Secretary of State for Work and Pensions, with the consent of the Treasury1, in exercise of the powers conferred upon him by sections 140B(1), (3) and (4), 140F(2) and 189(1) and (4) to (7) of the Social Security Administration Act 19922, and of all other powers enabling him in that behalf, after consultation with organisations appearing to him to be representative of the authorities concerned3, hereby makes the following Order:

Citation, commencement and interpretation1

1

This Order may be cited as the Income-related Benefits (Subsidy to Authorities) Amendment (No. 2) Order 2002 and shall come into force on 13th January 2003.

2

The amendments made by this Order shall have effect from 1st April 2001.

3

In this Order, “the principal Order” means the Income-related Benefits (Subsidy to Authorities) Order 19984.

Definition of “new incentive scheme”2

1

In article 1(2) of the principal Order (citation, commencement and interpretation), after the definition of “the English Regulations” there shall be inserted—

  • “new incentive scheme” means the scheme set out in the following circulars issued by the Secretary of State5—

    • HB/CTB F12/2000; and

    HB/CTB F19/2001;

2

In paragraph 1(2) of Schedule 5 to the principal Order (benefit savings threshold)6, the definition of “new incentive scheme” shall be omitted.

Amendment of article 14 of the principal Order3

In article 14(2) of the principal Order (backdated benefit)7, for “18(1)(b)(iii)” there shall be substituted “18(1)(b)(iia) or (iii)”.

Amendment of article 18 of the principal Order4

1

Article 18 of the principal Order (additions to subsidy)8 shall be amended in accordance with the following provisions of this article.

2

In paragraph (1)—

a

before sub-paragraph (b)(iii) there shall be inserted—

iia

in the case of a claimant error overpayment, or of a fraudulent overpayment made by an authority which is operating the new incentive scheme, 40 per cent. of the overpayment;

b

in sub-paragraph (b)(iii), after “fraudulent overpayment” there shall be inserted “to which head (iia) does not apply”;

c

in sub-paragraph (b)(iv), after “overpayment” there shall be inserted “or, where the overpayment is made by an authority operating the new incentive scheme, 40 per cent. of the overpayment”;

d

in sub-paragraph (c), after “80 per cent.” there shall be inserted “or, in a case where the discovery is made by an authority which is operating the new incentive scheme, 40 per cent.”.

3

Before paragraph (5) there shall be inserted—

4A

In paragraph (1)(b)(iia), “claimant error overpayment” means an overpayment made by an authority which is operating the new incentive scheme, where the overpayment—

a

is caused by—

i

the claimant, or

ii

a person acting on the claimant’s behalf under regulation 71 of the Housing Benefit Regulations (who may claim housing benefit)9 or regulation 61 of the Council Tax Benefit Regulations (who may claim council tax benefit)10,

failing to provide information in accordance with regulation 72(1), 73 or 75 of, or paragraph 5 of Schedule A1 to, the Housing Benefit Regulations (duties on claimant to provide information)11 or regulation 62(1), 63 or 65 of, or paragraph 5 of Schedule A1 to, the Council Tax Benefit Regulations (duties on claimant to provide information)12; and

b

is not a fraudulent overpayment.

4

In paragraph (5), for “paragraphs (1)(b)(iii) and (c)” there shall be substituted “paragraphs (1)(b)(iia) and (iii) and (c) and (4A)”.

Signed by authority of the Secretary of State for Work and Pensions.

Malcolm WicksParliamentary Under-Secretary of StateDepartment for Work and Pensions

We consent,

Nick AingerPhilip WoolasTwo of the Lords Commissioners of Her Majesty’s Treasury

(This note is not part of the Order)

This Order amends the Income-related Benefits (Subsidy to Authorities) Order 1998 (S.I.1998/562) (“the principal Order”) which provides for subsidy to be payable to authorities administering housing benefit and council tax benefit. The amendments make further provision for subsidy payments in relation to a scheme (“the new incentive scheme”) which introduces new terms, including incentives and rewards, relating to local authorities' anti-fraud activities. Section 140F(2) of the Social Security Administration Act 1992 (c. 5) authorises the varying of an Order before, during or after the year to which it relates. The amendments made by this Order have effect from 1st April 2001.

Article 2 inserts a definition of “new incentive scheme” for the general purposes of the principal Order and removes the existing definition which has more limited effect.

Article 3 amends article 14 of the principal Order consequent on the amendments made by article 4 of this Order.

Article 4 amends article 18 of the principal Order by inserting a definition of “claimant error overpayment” and changing some of the rates at which additions are made to subsidy payable to authorities operating the new incentive scheme.

This Order does not impose a charge on business.