Public Authorities (Fraud, Error and Recovery) Bill

A Bill to make provision about the prevention of fraud against public authorities and the making of erroneous payments by public authorities; about the recovery of money paid by public authorities as a result of fraud or error; and for connected purposes.

The information below was generated through an automated process and is for information purposes only.

This is not the latest version of the Bill

Available Versions

27 Oct 2025
Ping: Pong
Bill 319 2024-26 (Lords Amendments)
(0 amendments)
21 Oct 2025
Lords: Third
HL Bill 140 (as amended on Report)
(0 amendments)
Date Debate
Thursday 23rd October 2025 3rd reading
25 Jun 2025
Lords: Report
HL Bill 114 (as amended in Grand Committee)
(130 amendments)
Date Debate
Wednesday 15th October 2025 Report stage
30 Apr 2025
Lords: Committee
HL Bill 96 (as brought from the Commons)
(193 amendments)
Date Debate
Wednesday 18th June 2025 Committee stage
Monday 16th June 2025 Committee stage
Wednesday 11th June 2025 Committee stage
Monday 9th June 2025 Committee stage
Wednesday 4th June 2025 Committee stage
18 Mar 2025
Commons: Report
Bill 204 2024-25 (as amended in Public Bill Committee)
(208 amendments)
Date Debate
Tuesday 29th April 2025 Report stageReport Stage
22 Jan 2025
Commons: Committee
Bill 167 2024-25 (as introduced)
(67 amendments)
Date Debate
Thursday 13th March 2025 Committee stage: 11th sitting
Tuesday 11th March 2025 Committee stage: 10th sitting
Tuesday 11th March 2025 Committee stage: 9th sitting
Thursday 6th March 2025 Committee stage: 8th sitting
Thursday 6th March 2025 Committee stage: 7th sitting
Tuesday 4th March 2025 Committee stage: 5th sitting
Tuesday 4th March 2025 Committee stage: 6th sitting
Thursday 27th February 2025 Committee stage: 4th Sitting
Thursday 27th February 2025 Committee stage: 3rd Sitting
Tuesday 25th February 2025 Committee stage: 2nd Sitting
Tuesday 25th February 2025 Committee stage: 1st Sitting

Relevant Documents

Bill PDF
HL Bill 140 (as amended on Report)
Explanatory Note
HL Bill 96 Explanatory Notes
Impact Assessment
Impact Assessment from the Department for Work and Pensions

Amendment Filters

Your selections will update the bill and amendment list to show only amendments matching your chosen criteria.

Amendment Type

Amendment Status

Display Options

Show Latest Version
Amendment Glossary

This glossary explains the colour coding used to indicate the type of amendment.

Type Description
Black center indicates Government or Bill Sponsor amendment
Front Bench Amendment from any Opposition Party indicated by party colour
Back Bench Amendment from any MP - Outline Colour indicates party

Page 1

Part 1

 

Functions exercisable on behalf of public authorities

 

Chapter 1

 

Key concepts

 
1
Core functions of the Minister for the Cabinet Office
5
 
(1)
The Minister for the Cabinet Office (“the Minister”) has the following functions
 
 
(“the core functions”)—
 
 
(a)
investigating suspected fraud against public authorities,
 
 
(b)
recovering amounts mentioned in subsection (2) ,
 
 
(c)
taking enforcement action in connection with fraud against public
10
 
authorities, and
 
 
(d)
providing support to public authorities in relation to preventing and
 
 
tackling fraud against them.
 
 
(2)
The amounts are—
 
 
(a)
payments made as a result of fraud or error that—
15
 
(i)
the Minister has identified or confirmed during the course of
 
 
an investigation in respect of suspected fraud against a public
 
 
authority, and
 
 
(ii)
the public authority is entitled to recover,
 
 
(b)
any other amount that a public authority is entitled to recover in
20
 
respect of fraud, and
 

Page 2

 
(c)
any interest that a public authority is entitled to recover in respect of
 
 
an amount within paragraph (a) or (b) .
 
 
(3)
In this Part, amounts within subsection (2) are referred to as “recoverable
 
 
amounts”.
 
2
Interaction with other public authorities etc
5
 
(1)
The Minister is to—
 
 
(a)
investigate or take enforcement action in respect of suspected fraud
 
 
against another public authority, or
 
 
(b)
recover money on behalf of another public authority,
 
 
whether at the request of that public authority or, where the Minister considers
10
 
it necessary in the public interest, on the Minister’s own initiative.
 
 
(2)
The Minister may not act as mentioned in subsection (1) at the request of—
 
 
(a)
the Secretary of State with responsibility for social security, or
 
 
(b)
His Majesty’s Revenue and Customs.
 
 
(3)
The Minister may charge another public authority a fee in relation to the
15
 
exercise of functions under this Part on behalf of, or in relation to, the public
 
 
authority.
 
 
(4)
References in this Part to any public authority include the Minister in any
 
 
case relating to—
 
 
(a)
fraud or suspected fraud against the Minister, or
20
 
(b)
the recovery of money for the Minister.
 
 
(5)
Nothing in this Part affects—
 
 
(a)
whether a public authority is entitled to recover an amount, or
 
 
(b)
functions that a public authority has in respect of fraud and the
 
 
recovery of money,
25
 
otherwise than by virtue of this Part.
 

Chapter 2

 

Investigatory powers

 

Information

 
3
Information notices
30
 
(1)
The Minister may require a person (“P”) to give specified information to the
 
 
Minister where the Minister considers that—
 
 
(a)
it is necessary and proportionate to do so for the purpose of exercising
 
 
the Minister’s functions under section 1 (1) (a) to (c) , and
 
 
(b)
the information relates to a person (whether or not P) whom the
35
 
Minister has reasonable grounds to suspect has committed fraud
 
 
against a public authority.
 

Page 3

 
(2)
The power conferred by subsection (1) is to be exercised by giving P a notice
 
 
(an “information notice”).
 
 
(3)
An information notice must identify (by name or description) the person
 
 
suspected of having committed fraud as mentioned in subsection (1) (b) .
 
 
(4)
An information notice must set out—
5
 
(a)
how, where and the period within which the information must be
 
 
given to the Minister in order for the recipient of the notice to avoid
 
 
being liable to a penalty under section 54 ;
 
 
(b)
information about the consequences of not complying with the notice.
 
 
(5)
The period mentioned in subsection (4) (a) must not be less than 10 working
10
 
days beginning with the day after the day on which the information notice
 
 
is given.
 
 
(6)
The power under this section to require P to give information to the Minister
 
 
includes the power to—
 
 
(a)
take copies of or extracts from information;
15
 
(b)
require P to provide information in a specified form;
 
 
(c)
require P to retain information that P would not otherwise retain;
 
 
(d)
if any specified information is not given to the Minister, require P to
 
 
state, to the best of P’s knowledge and belief, both where that
 
 
information is and why it has not been given to the Minister.
20
 
(7)
An information notice under this section may not require the giving of—
 
 
(a)
journalistic material, or
 
 
(b)
excluded material,
 
 
within the meaning of the Police and Criminal Evidence Act 1984 (see sections
 
 
11 to 13 of that Act; see section 7 (2) (b) of this Act for provision about
25
 
production orders).
 
 
(8)
In this section, “specified” means—
 
 
(a)
specified, or described, in an information notice, or
 
 
(b)
falling within a category that is specified, or described, in an
 
 
information notice.
30
4
Reviews
 
 
(1)
A person to whom an information notice is given under section 3 may apply
 
 
to the Minister for a review of the decision to give the notice.
 
 
(2)
An application under subsection (1) must be made within the period of 7
 
 
days beginning with the day after the day on which the notice is given.
35
 
(3)
Where an application is made under subsection (1) , the Minister must review
 
 
the decision to give the notice.
 
 
(4)
On the review, the Minister may—
 
 
(a)
revoke the notice,
 

Page 4

 
(b)
uphold the notice, or
 
 
(c)
vary the notice.
 
 
(5)
After a review has been carried out, the Minister must—
 
 
(a)
notify the person who applied for the review of the outcome of the
 
 
review, and
5
 
(b)
if the outcome was to vary the notice, give the person the varied notice.
 
 
(6)
Where an information notice is upheld or varied on a review, the period
 
 
mentioned in section 3 (4) (a) is to be treated as beginning on the day after the
 
 
day on which the outcome of the review is notified to the person to whom
 
 
the information notice was given.
10
5
Information sharing
 
 
(1)
A public authority may disclose information to the Minister for the purpose
 
 
of facilitating the Minister’s exercise of the core functions.
 
 
(2)
The Minister may use information disclosed under subsection (1) only for the
 
 
purpose of exercising the core functions.
15
 
(3)
The Minister may disclose information to another person for the purpose of
 
 
exercising the core functions.
 
 
(4)
Where the Minister discloses information to a person under subsection (3)
 
 
, the person may not—
 
 
(a)
use it for any purpose other than the purpose for which it was
20
 
disclosed, and
 
 
(b)
may not disclose it to any other person,
 
 
without the consent of the Minister.
 
6
Amendment of the Investigatory Powers Act 2016
 
 
In the Investigatory Powers Act 2016, in Schedule 4 (relevant public authorities
25
 
and designated senior officers etc), in the table in Part 1, before the entry for
 
 
the Common Services Agency for the Scottish Health Service insert—
 
 
“Cabinet Office, so far as relating to
 
 
60A(7)(b)
 
 
”.
 
 
the Public Sector Fraud Authority
 

Powers of entry, search and seizure etc

30
7
Police and Criminal Evidence Act 1984 etc powers
 
 
(1)
The provisions of the Police and Criminal Evidence Act 1984 listed in
 
 
subsection (2) apply in relation to investigations of offences of fraud against
 
 
a public authority that are conducted by authorised investigators in the
 
 
exercise of the Minister’s function under section 1 (1) (a) as they apply in
35

Page 5

 
relation to investigations of offences conducted by police officers, subject to
 
 
the modifications in Schedule 1 .
 
 
(2)
The provisions are—
 
 
(a)
section 8(1) to (5) (power of justice of the peace to authorise entry and
 
 
search of premises);
5
 
(b)
section 9(1) and Schedule 1 (special provisions as to access);
 
 
(c)
section 15 (search warrants: safeguards);
 
 
(d)
section 16 (execution of warrants);
 
 
(e)
section 19 (general power of seizure etc);
 
 
(f)
section 20 (extension of powers of seizure to computerised information);
10
 
(g)
section 21 (access and copying);
 
 
(h)
section 22 (retention);
 
 
(i)
sections 10 to 14, 23 and 118 (interpretation provisions), so far as
 
 
necessary for the application of the provisions mentioned in paragraphs
 
 
(a) to (h) .
15
 
(3)
An authorised investigator is an individual who is authorised by the Minister
 
 
to exercise the powers conferred by this section.
 
 
(4)
An individual may not be an authorised investigator unless the individual—
 
 
(a)
is employed in the civil service of the state in the Minister’s
 
 
department, and
20
 
(b)
is a higher executive officer or has a grade that is equivalent to, or
 
 
higher than, that of a higher executive officer.
 
8
Disposal of property
 
 
(1)
A magistrates’ court may, on an application by the Minister or a person with
 
 
an interest in relevant property—
25
 
(a)
order the delivery of the relevant property to the person appearing
 
 
to the court to be its owner, or
 
 
(b)
if its owner cannot be ascertained, make any other order about the
 
 
relevant property.
 
 
(2)
An order under subsection (1) (a) may include provision for the Minister to
30
 
make any changes to the relevant property that the court considers necessary
 
 
for the purpose of avoiding or reducing any risk of the relevant property
 
 
being used in the commission of an offence.
 
 
(3)
An order under subsection (1) (b) may not provide for the destruction or
 
 
disposal of the relevant property before the end of the period of 6 months
35
 
beginning with the day on which the order is made.
 
 
(4)
An order under subsection (1) (b) (“the first order”) does not prevent further
 
 
applications being made for an order under subsection (1) in respect of the
 
 
relevant property to which the first order applies.
 
 
(5)
Where an order is made following a further application—
40

Page 6

 
(a)
the order may not provide for the destruction or disposal of the
 
 
relevant property before the end of the period of 6 months beginning
 
 
with the day on which the first order was made, but
 
 
(b)
the order may otherwise contain such provision as to the timing of
 
 
the destruction or disposal of the relevant property as the court thinks
5
 
fit.
 
 
(6)
In this section, “relevant property” means tangible property which has come
 
 
into the possession of the Minister in the course of, or in connection with,
 
 
the exercise of a function under this Part.
 
9
Incidents etc
10
 
(1)
The Police Reform Act 2002 (complaints and misconduct) is amended as
 
 
follows.
 
 
(2)
In section 10 (general functions of the Director General)—
 
 
(a)
in subsection (1), at the end of paragraph (gb) insert “, and
 
 
“(gc)
to carry out such corresponding functions in relation
15
 
to public sector fraud investigators acting in the exercise
 
 
of functions conferred on them by section 7 of the Public
 
 
Authorities (Fraud, Error and Recovery) Act 2025 (Police
 
 
and Criminal Evidence Act 1984 powers for public sector
 
 
fraud investigators).”,
20
 
(b)
in subsection (3), after paragraph (be) insert—
 
 
“(bf)
any regulations under section 26G of this Act (public
 
 
sector fraud investigators);”, and
 
 
(c)
after subsection (7) insert—
 
 
“(7A)
In this section, “public sector fraud investigators” means
25
 
authorised investigators within the meaning given by section
 
 
7 of the Public Authorities (Fraud, Error and Recovery) Act
 
 
2025.”
 
 
(3)
After section 26F insert—
 
“26G
Public sector fraud investigators
30
 
(1)
The Minister for the Cabinet Office (“the Minister”) may make
 
 
regulations conferring functions on the Director General in relation to
 
 
public sector fraud investigators acting in the exercise of functions
 
 
conferred on them by section 7 of the Public Authorities (Fraud, Error
 
 
and Recovery) Act 2025 (Police and Criminal Evidence Act 1984 powers
35
 
for public sector fraud investigators).
 
 
(2)
Regulations under this section may, in particular—
 
 
(a)
apply (with or without modifications), or make provision
 
 
similar to, any provision of or made under this Part;
 

Page 7

 
(b)
make provision for payment by the Minister to, or in respect
 
 
of, the Office or in respect of the Director General.
 
 
(3)
The Director General and the Parliamentary Commissioner for
 
 
Administration may jointly investigate a matter in relation to which—
 
 
(a)
the Director General has functions by virtue of this section,
5
 
and
 
 
(b)
the Parliamentary Commissioner for Administration has
 
 
functions by virtue of the Parliamentary Commissioner Act
 
 
1967.
 
 
(4)
The Minister may disclose information to the Director General or to
10
 
a person acting on the Director General’s behalf, for the purposes of
 
 
the exercise by the Director General or by any person acting on the
 
 
Director General’s behalf, of a public sector fraud complaints function.
 
 
(5)
The Director General and the Parliamentary Commissioner for
 
 
Administration may disclose information to each other for the purposes
15
 
of the exercise of a function—
 
 
(a)
by virtue of this section, or
 
 
(b)
under the Parliamentary Commissioner Act 1967.
 
 
(6)
Regulations under this section may, in particular, make—
 
 
(a)
further provision about the disclosure of information under
20
 
subsection (4) or (5);
 
 
(b)
provision about the further disclosure of information that has
 
 
been so disclosed.
 
 
(7)
A disclosure of information authorised by or under this section does
 
 
not breach—
25
 
(a)
any obligation of confidence owed by the person making the
 
 
disclosure, or
 
 
(b)
any other restriction on the disclosure of information (however
 
 
imposed).
 
 
(8)
No provision made by or under this section authorises a disclosure
30
 
of information that is prohibited by any of Parts 1 to 7 or Chapter 1
 
 
of Part 9 of the Investigatory Powers Act 2016.
 
 
(9)
In this section—
 
 
“public sector fraud complaints function” means a function in
 
 
relation to the exercise of functions conferred by section 7 of
35
 
the Public Authorities (Fraud, Error and Recovery) Act 2025;
 
 
“public sector fraud investigator” means an authorised investigator
 
 
within the meaning given by section 7 that Act.”
 

Page 8

 
(4)
In section 105 (powers of Secretary of State to make orders and regulations),
 
 
after subsection (5) insert—
 
 
“(6)
In this section, references to the Secretary of State include references
 
 
to the Minister for the Cabinet Office for the purposes of section 26G
 
 
(power to make regulations about public sector fraud investigators).”
5

Chapter 3

 

Rights to recover

 

Recovery of recoverable amounts

 
10
Acting for another public authority
 
 
(1)
The Minister may act under this Part on behalf of another public authority
10
 
in relation to the recovery of a recoverable amount, including by—
 
 
(a)
bringing or continuing proceedings in a court or tribunal for an amount
 
 
(a “claimed amount”) which the Minister reasonably believes to be a
 
 
recoverable amount, and
 
 
(b)
exercising the powers in Chapter 4 to recover a recoverable amount.
15
 
(2)
Where the Minister recovers an amount under this Part on behalf of another
 
 
public authority, the Minister must transfer that amount to the public authority
 
 
unless the public authority agrees that the Minister may retain some or all
 
 
of the amount.
 
11
Recovery notices
20
 
(1)
Before bringing proceedings in a court or tribunal for a claimed amount on
 
 
behalf of another public authority, the Minister must give the person from
 
 
whom the Minister reasonably believes the amount is recoverable (the “liable
 
 
person”) a notice (a “recovery notice”).
 
 
(2)
A recovery notice must—
25
 
(a)
state that the Minister intends to bring proceedings for the claimed
 
 
amount,
 
 
(b)
state the amount of the claimed amount,
 
 
(c)
provide the Minister’s reasons for believing that amount to be a
 
 
recoverable amount,
30
 
(d)
invite the liable person to discharge the person’s liability in respect
 
 
of the claimed amount by agreement with the Minister, and set out
 
 
how this can be done,
 
 
(e)
set out the further action that may be taken by the Minister under this
 
 
Part in respect of the claimed amount, including if the liable person’s
35
 
liability for the amount is not settled by agreement, and
 
 
(f)
state a period during which the Minister will not bring proceedings
 
 
for the claimed amount in order to give the liable person an
 

Page 9

 
opportunity to discharge their liability in respect of the claimed amount
 
 
by agreement.
 
 
(3)
The period mentioned in subsection (2) (f) must not be less than 28 days
 
 
beginning with the day after the day on which the recovery notice is given.
 
 
(4)
The giving of a recovery notice has effect as the bringing of an action for the
5
 
recovery of a claimed amount for the purposes of any time limit that would
 
 
apply in relation to that amount.
 
12
Restriction on availability of powers: claimed amounts
 
 
The Minister may use the methods of recovery in Chapter 4 to recover a
 
 
claimed amount from a liable person only so far as—
10
 
(a)
the liable person agrees, or
 
 
(b)
there has been a final determination by a court or tribunal,
 
 
that the amount is a recoverable amount.
 

Recovery of other amounts

 
13
Penalties etc
15
 
(1)
The Minister may exercise the powers in Chapter 4 to recover amounts due
 
 
in respect of—
 
 
(a)
a penalty under Chapter 5 , and
 
 
(b)
relevant costs.
 
 
(2)
For the purposes of this Part, references to—
20
 
(a)
an “amount due in respect of a penalty under Chapter 5 ” include late
 
 
payment interest due in respect of a penalty (see section 62 ), and
 
 
(b)
“relevant costs” are to—
 
 
(i)
costs that are awarded by a court or tribunal on or in relation
 
 
to a claim for a recoverable amount, and
25
 
(ii)
costs that are reasonably incurred by the Minister in exercising
 
 
the powers in Chapter 4 .
 
14
Restriction on availability of powers: penalties
 
 
The Minister may exercise the powers in Chapter 4 to recover an amount due
 
 
in respect of a penalty only when—
30
 
(a)
the period for appealing mentioned in section 61 (2) (a) has passed
 
 
without an appeal being brought, or
 
 
(b)
any appeal against the penalty has been finally determined (see section
 
 
71 (4) ).
 

Page 10

Chapter 4

 

Methods of recovery

 

Introduction

 
15
Payable amounts
 
 
In this Part, references to a “payable amount” are to—
5
 
(a)
a recoverable amount (see section 1 (3) ), or
 
 
(b)
an amount within section 13 (1) .
 

Recovery as if payable under a court order

 
16
Recovery orders
 
 
(1)
The Minister may apply to the county court for a recovery order in respect
10
 
of a payable amount.
 
 
(2)
A recovery order is an order providing that the payable amount is
 
 
recoverable—
 
 
(a)
under section 85 of the County Courts Act 1984, or
 
 
(b)
otherwise as if it were payable under an order of the court.
15

Recovery from bank accounts etc

 
17
Direct deduction orders
 
 
(1)
Where a payable amount is recoverable from a liable person who holds an
 
 
account with a bank, the Minister may make an order (a “direct deduction
 
 
order”) in respect of that account.
20
 
(2)
A direct deduction order must be given to the bank with which the account
 
 
is held.
 
 
(3)
A direct deduction order may be—
 
 
(a)
a regular direct deduction order, or
 
 
(b)
a lump sum direct deduction order.
25
 
(4)
A regular direct deduction order is an order requiring the bank—
 
 
(a)
to make regular deductions from the liable person’s account, and
 
 
(b)
to pay the amounts deducted to the Minister.
 
 
(5)
A lump sum direct deduction order is an order requiring the bank—
 
 
(a)
to deduct from the liable person’s account an amount specified in the
30
 
order, and
 
 
(b)
to pay that amount to the Minister.
 

Page 11

 
(6)
The Minister may give a regular direct deduction order and a lump sum
 
 
direct deduction order in respect of the same account.
 
 
(7)
The Minister must give a copy of a direct deduction order to—
 
 
(a)
the liable person, and
 
 
(b)
in the case of a joint account, each of the other account holders.
5
 
(8)
Sections 19 to 21 set out steps that the Minister must take before making a
 
 
direct deduction order.
 
18
Accounts which may be subject to a direct deduction order
 
 
(1)
The Minister may make a direct deduction order in respect of any account
 
 
which—
10
 
(a)
is held by a liable person, and
 
 
(b)
contains an amount in which the Minister considers the liable person
 
 
has a beneficial interest.
 
 
(2)
The Minister may make a direct deduction order in respect of a joint account
 
 
only if the liable person does not hold a sole account in respect of which a
15
 
deduction order may be made which would be likely to result in the recovery
 
 
of the payable amount within a reasonable period of time.
 
 
(3)
But subsection (2) does not apply if all the joint account holders are liable
 
 
persons in relation to the same payable amount.
 
19
Requirement for banks to provide information
20
 
(1)
Before the Minister makes a direct deduction order in respect of a liable
 
 
person’s account, the Minister must obtain and consider bank statements for
 
 
the account covering a period of at least 3 months.
 
 
(2)
To obtain the statements, the Minister must give the bank with which the
 
 
Minister believes the liable person holds the account a notice (an “account
25
 
information notice”) requiring the bank to give the Minister statements for
 
 
the account covering—
 
 
(a)
the 3 months immediately before the notice is given, or
 
 
(b)
such longer period, ending immediately before the notice is given, as
 
 
may be specified in the notice.
30
 
(3)
An account information notice must—
 
 
(a)
contain the name of the liable person, and
 
 
(b)
identify the account (for example, by number and sort code).
 
 
(4)
The Minister may give an account information notice relating to an account
 
 
only for the purpose of determining whether to make a direct deduction order
35
 
in respect of the account.
 
 
(5)
At any time, for the purposes of determining whether to make a direct
 
 
deduction order in relation to a liable person, the Minister may give a notice
 
 
(a “general information notice”) to a bank requiring the bank to—
 

Page 12

 
(a)
identify every account that the liable person holds with the bank,
 
 
(b)
for each identified account, give the Minister the following
 
 
information—
 
 
(i)
a description of the type of account,
 
 
(ii)
identifiers for the account,
5
 
(iii)
if the account is a sole account, the balance of the account at
 
 
the time that it is identified, and
 
 
(iv)
if the account is a joint account, the name of each other account
 
 
holder, and
 
 
(c)
give the Minister—
10
 
(i)
the correspondence address that the bank holds for the liable
 
 
person, and
 
 
(ii)
in the case of a joint account, the correspondence address that
 
 
the bank holds for each other account holder.
 
 
(6)
The Minister may give—
15
 
(a)
more than one account information notice, or general information
 
 
notice, in relation to the same payable amount;
 
 
(b)
more than one account information notice in respect of the same
 
 
account.
 
 
(7)
A notice under this section must—
20
 
(a)
set out how and when the bank is to comply with the notice, and
 
 
(b)
explain that the bank may be liable to a penalty under section 54 if it
 
 
fails to do so without reasonable excuse.
 
 
(8)
The bank must comply with a notice given under this section.
 
 
(9)
Subject to subsection (10) , a bank that is given an account information notice,
25
 
or a general information notice, must not notify any of the following people
 
 
that the notice has been given—
 
 
(a)
the liable person;
 
 
(b)
any other holder of the account in respect of which an account
 
 
information notice is given;
30
 
(c)
any other holder of an account identified in accordance with a general
 
 
information notice.
 
 
(10)
The prohibition in subsection (9) ceases to apply—
 
 
(a)
at the end of the period of 3 months beginning with the day on which
 
 
the account information notice or general information notice is given
35
 
to the bank, or
 
 
(b)
if earlier, when the bank is given a notice under section 21 (1) .
 
 
(11)
Information given to the Minister in response to a notice under this section
 
 
may be used by the Minister for the purpose of exercising the core functions
 
 
but not for any other purpose.
40

Page 13

20
Joint accounts
 
 
(1)
Before making a direct deduction order in respect of a joint account, the
 
 
Minister must make an assessment of the liable person’s beneficial interest
 
 
in the amounts which are or may be in the account from time to time.
 
 
(2)
The Minister must presume that the liable person’s beneficial interest entitles
5
 
them to the following share in the amounts which are or may be in the account
 
 
from time to time—
 
 
1 N
 
 
where “N” is the number of account holders.
 
 
(3)
But the presumption does not apply where the Minister has reason to believe
10
 
that the liable person’s beneficial interest is different from the presumed share.
 
 
(4)
In making an assessment under subsection (1) , the Minister must have regard
 
 
to—
 
 
(a)
the bank statements obtained for the account under section 19 , and
 
 
(b)
any responses to a notice under section 21 .
15
21
Further requirements before making a direct deduction order
 
 
(1)
Before making a direct deduction order, the Minister must give the bank
 
 
where the account in question is held, the liable person, and, in the case of
 
 
a joint account, each of the other account holders, a notice—
 
 
(a)
identifying the account that would be subject to the proposed order,
20
 
(b)
stating the amount that would be recoverable under the proposed
 
 
order,
 
 
(c)
setting out the terms of the proposed order, and
 
 
(d)
if the account is a joint account, setting out the Minister’s duty to
 
 
make an assessment as to the liable person’s beneficial interest and
25
 
the presumption that applies (see section 20 ).
 
 
(2)
The notice must invite the liable person and, in the case of a joint account,
 
 
each other account holder—
 
 
(a)
to make representations about the terms of the proposed order, and
 
 
(b)
in the case of a joint account, to make representations about the liable
30
 
person’s beneficial interest in amounts in the account.
 
 
(3)
The notice must set out the means by which, and the period within which,
 
 
representations may be made.
 
 
(4)
The period must be at least 28 days beginning with the day after the day on
 
 
which the notice is given.
35
 
(5)
The Minister must—
 
 
(a)
consider representations made in accordance with the notice, and
 

Page 14

 
(b)
in light of any representations—
 
 
(i)
in the case of a joint account, make the assessment required
 
 
under section 20 (1) , and
 
 
(ii)
in any case, decide whether, and in what terms, to make a
 
 
direct deduction order in respect of the account.
5
 
(6)
A notice under subsection (1) may be given to the bank before it is given to
 
 
the other persons to whom it is required to be given under that subsection
 
 
(and for the effect of giving the notice to the bank see section 26 (restrictions
 
 
on accounts)).
 
 
(7)
Where a notice is given to the bank in reliance on subsection (6) , the notice
10
 
must be given to the other persons as soon as reasonably practicable after
 
 
being given to the bank.
 
 
(8)
If, following the giving of a notice under this section, the Minister decides
 
 
not to make a direct deduction order, the Minister must, as soon as reasonably
 
 
practicable, notify the bank, the liable person and, in the case of a joint
15
 
account, each of the other account holders, of the decision.
 
22
Amount of deductions
 
 
(1)
The Minister may make a direct deduction order only if satisfied on the basis
 
 
of information received by virtue of sections 19 and 21 that the terms of the
 
 
order—
20
 
(a)
will not cause the liable person, any other account holder or a person
 
 
within subsection (2) to suffer hardship in meeting essential living
 
 
expenses, and
 
 
(b)
are otherwise fair in all the circumstances.
 
 
(2)
A person is within this subsection if—
25
 
(a)
they live with the liable person, or any other account holder, for some
 
 
or all of the time, or
 
 
(b)
they are financially dependent on the liable person or any other account
 
 
holder.
 
 
(3)
The total amount of deductions to be made under a regular direct deduction
30
 
order in relation to any period of 28 days must not exceed—
 
 
(a)
in a case to which subsection (4) applies, 40% of the relevant amount,
 
 
and
 
 
(b)
in any other case, 20% of the relevant amount.
 
 
(4)
This subsection applies in a case where the Minister is satisfied, on the balance
35
 
of probabilities, that the payable amount to which the regular direct deduction
 
 
order relates is recoverable from the liable person because the liable person
 
 
committed fraud.
 
 
(5)
For the purposes of subsection (3) , the “relevant amount” is the amount that
 
 
the Minister reasonably expects to be credited to the account in question in
40
 
(or in respect of) a typical month during the period for which the order will
 

Page 15

 
have effect, having regard to all statements given to the Minister in relation
 
 
to the account (see sections 19 (2) and 31 (1) ).
 
 
(6)
The Minister must ensure that the total amount to be deducted and paid to
 
 
the Minister under a direct deduction order does not exceed the payable
 
 
amount to which the order relates.
5
23
Content and effect of direct deduction orders
 
 
(1)
A regular direct deduction order must specify—
 
 
(a)
the amounts to be deducted (see section 22 ),
 
 
(b)
when amounts are to be deducted and paid to the Minister, and
 
 
(c)
the penalties that may be imposed for a failure to comply (see section
10
 
54 ).
 
 
(2)
A regular direct deduction order may specify different amounts to be deducted
 
 
at different times.
 
 
(3)
A lump sum direct deduction order must specify—
 
 
(a)
the amount to be deducted,
15
 
(b)
when the amount is to be deducted and paid to the Minister, and
 
 
(c)
the penalties that may be imposed for a failure to comply (see section
 
 
54 ).
 
 
(4)
A direct deduction order may not require an amount to be deducted from a
 
 
person’s account before the end of the period of 28 days beginning with the
20
 
day after the day on which the Minister complies with section 17 (7) .
 
 
(5)
A bank must comply with a direct deduction order.
 
 
(6)
If (apart from this subsection) a bank would be required to make a deduction
 
 
and payment under a direct deduction order on a day that is not a working
 
 
day, the obligation to make the deduction and payment applies in relation
25
 
to the next working day after that day.
 
24
Bank’s administrative costs
 
 
(1)
A direct deduction order may include provision for the bank to deduct from
 
 
the liable person’s account an amount specified in, or calculated in accordance
 
 
with, the order, for the purposes of meeting costs reasonably incurred by the
30
 
bank in complying with the order.
 
 
(2)
A bank may deduct the costs to which they are entitled under a direct
 
 
deduction order immediately prior to making the deduction which is to be
 
 
paid to the Minister under the order.
 
 
(3)
In complying with section 22 (1) and (3) in relation to a direct deduction order
35
 
the Minister must take account of any deductions to be made under the order
 
 
by virtue of provision under subsection (1) .
 

Page 16

25
Insufficient funds
 
 
(1)
Where the amount in an account is lower than the amount to be deducted
 
 
in accordance with a lump sum direct deduction order at the time that the
 
 
bank is (apart from this subsection) required to make the deduction—
 
 
(a)
no deduction is to be made, and
5
 
(b)
the bank must notify the Minister as soon as possible.
 
 
(2)
Where the amount in an account is lower than the amount to be deducted
 
 
in accordance with a regular direct deduction order at the time that the bank
 
 
is (apart from this subsection) required to make the deduction—
 
 
(a)
the order is to be read as requiring the deduction and payment to the
10
 
Minister to take place on the same day the following week, and
 
 
(b)
if, on that day, the amount in the account is lower than the amount
 
 
to be deducted in accordance with the order—
 
 
(i)
no deduction is to be made, and
 
 
(ii)
the bank must notify the Minister as soon as possible.
15
 
(3)
References in this section to the amount to be deducted in accordance with
 
 
a direct deduction order include any amounts to be deducted in respect of a
 
 
bank’s costs by virtue of provision under section 24 (1) .
 
26
Restrictions on accounts: banks
 
 
(1)
Where a notice under section 21 (1) (a “pre-deduction notice”) relating to a
20
 
proposed lump sum direct deduction order, or a lump sum direct deduction
 
 
order under section 17, is given to a bank in relation to a liable person’s
 
 
account, the bank must—
 
 
(a)
secure that no transaction takes place (except for any deduction under
 
 
the order) which would result in the amount in the account falling
25
 
below the specified amount, or, if the amount in the account is already
 
 
below that amount, falling any further, or
 
 
(b)
take the action set out in subsection (2) .
 
 
(2)
The action is to—
 
 
(a)
transfer the specified amount, or the amount in the account if that is
30
 
less than the specified amount, from the account into a different
 
 
account (a “hold account”) created by the bank for the sole purpose
 
 
of holding that transferred amount, and
 
 
(b)
secure that no transaction takes place (except for any deduction under
 
 
the order) which would result in the amount in the hold account
35
 
falling below the amount transferred.
 
 
(3)
Where a bank takes the action set out in subsection (2) in relation to a lump
 
 
sum direct deduction order, the order is to be read as if it required the
 
 
deduction to be made from the hold account.
 
 
(4)
A bank must ensure that taking the action set out in subsection (2) does not
40
 
cause any disadvantage to the liable person, and in the case of a joint account,
 

Page 17

 
any other account holder, that the liable person, and any other account holder,
 
 
would not have experienced if the bank had instead acted in accordance with
 
 
subsection (1) (a) .
 
 
(5)
The requirements in subsection (1) cease to apply when—
 
 
(a)
in relation to a pre-deduction notice, a notice is given to the bank
5
 
under section 21 (8) (notice of decision not to make a direct deduction
 
 
order), or a direct deduction order is given to the bank under section
 
 
17 ;
 
 
(b)
in relation to a direct deduction order—
 
 
(i)
all the deductions under the order have been made, or
10
 
(ii)
the order is revoked.
 
 
(6)
In subsections (1) (a) and (2) (a) , “specified” means specified in a pre-deduction
 
 
notice or direct deduction order.
 
27
Restrictions on accounts: account holders
 
 
(1)
Where a notice under section 21 (1) (a “pre-deduction notice”), or a copy of a
15
 
direct deduction order under section 17 , is given to a person (other than a
 
 
bank) in relation to an account, they must not do anything to frustrate the
 
 
effect of the pre-deduction notice or the direct deduction order.
 
 
(2)
The requirement in subsection (1) ceases to apply when—
 
 
(a)
in relation to a pre-deduction notice, a notice under section 21 (8) (notice
20
 
of decision not to make a direct deduction order), or a copy of a direct
 
 
deduction order under section 17 , is given to the person;
 
 
(b)
in relation to a direct deduction order—
 
 
(i)
all the deductions under the order have been made, or
 
 
(ii)
the order is revoked.
25
 
(3)
In subsection (1) , the reference to frustrating the effect of a pre-deduction
 
 
notice is a reference to frustrating the effect of the proposed direct deduction
 
 
order the terms of which are set out in the notice.
 
28
Applications to vary
 
 
(1)
Any holder of an account to which a direct deduction order applies may
30
 
apply to the Minister to vary the order.
 
 
(2)
The Minister must give any other holders of the account an opportunity to
 
 
make representations in relation to the application.
 
 
(3)
The Minister must notify the applicant and any other account holders of the
 
 
Minister’s decision on the application.
35
29
Variation
 
 
(1)
The Minister may vary a direct deduction order (whether on an application
 
 
by an account holder or otherwise).
 

Page 18

 
(2)
The provisions in this section apply in relation to any variation of a direct
 
 
deduction order, including one that results from a review under section 34 .
 
 
(3)
Where the Minister proposes to vary a direct deduction order other than
 
 
under subsection (7) , the Minister must give—
 
 
(a)
the liable person, and
5
 
(b)
in the case of a joint account, each of the other account holders,
 
 
an opportunity to make representations about the proposed variation.
 
 
(4)
The Minister may comply with subsection (3) at the same time as complying
 
 
with section 28 (2) .
 
 
(5)
A variation to a direct deduction order takes effect when the Minister gives
10
 
the varied order to the bank or, if later, in accordance with the terms of the
 
 
order as varied.
 
 
(6)
The Minister must give a copy of the varied order to the liable person and,
 
 
in the case of a joint account, each other account holder.
 
 
(7)
The Minister may vary a direct deduction order so that the order applies to
15
 
another account held by the liable person (including an account provided by
 
 
a different bank) only if—
 
 
(a)
the variation is requested by the liable person, and
 
 
(b)
if the other account is a joint account, each of the other account holders
 
 
consents.
20
 
(8)
Where a direct deduction order is varied under subsection (7) —
 
 
(a)
if the order is varied so that it applies to an account provided by
 
 
another bank—
 
 
(i)
the reference in subsection (5) to “the bank” is to the bank
 
 
which provides that account, and
25
 
(ii)
the Minister must notify the bank given the original order of
 
 
the effect of the variation, and
 
 
(b)
if the order is varied so that it applies to a joint account—
 
 
(i)
the requirement in subsection (6) is to give a copy of the order
 
 
to each other holder of that joint account, and
30
 
(ii)
if the original order applied to a joint account, the Minister
 
 
must notify each other holder of that joint account of the effect
 
 
of the variation.
 
 
(9)
The steps set out in sections 19 to 21 do not apply to a decision to vary a
 
 
direct deduction order.
35
30
Revocation
 
 
(1)
The Minister may revoke a direct deduction order.
 
 
(2)
The Minister must revoke a direct deduction order as soon as reasonably
 
 
practicable after becoming aware that—
 

Page 19

 
(a)
the payable amount has been recovered (whether by the Minister or
 
 
the public authority on behalf of which the Minister is acting), or
 
 
(b)
the liable person to whom the order relates has died.
 
 
(3)
Where the Minister revokes a direct deduction order, the Minister must give
 
 
a notice of the revocation to—
5
 
(a)
the bank to which the order was given,
 
 
(b)
the liable person (apart from in a case within subsection (2) (b) ), and
 
 
(c)
in the case of a joint account, each of the other account holders.
 
31
Further information notices
 
 
(1)
For the purposes of determining whether to revoke or vary a direct deduction
10
 
order, the Minister may give a bank a notice (a “further information notice”)
 
 
requiring the bank—
 
 
(a)
to give the Minister statements for an account held by the liable person
 
 
covering—
 
 
(i)
the 3 months immediately before the notice was given, or
15
 
(ii)
such longer period, ending immediately before the notice was
 
 
given, as may be specified in the notice;
 
 
(b)
to take the steps set out in paragraphs (a) to (c) of section 19 (5) .
 
 
(2)
Subsections (6) to (8) and (11) of section 19 apply in relation to a further
 
 
information notice as they apply in relation to a notice under that section.
20
 
(3)
Before giving a further information notice to a bank requiring statements to
 
 
be given in respect of a joint account, the Minister must notify each account
 
 
holder other than the liable person—
 
 
(a)
that the notice will be given, and
 
 
(b)
of the effect of the notice.
25
 
(4)
A further information notice may be given to the bank before, at the same
 
 
time as or after the Minister complies with section 29 (3) .
 
32
Suspension of direct deduction orders
 
 
(1)
The Minister may suspend and re-start the requirement to make deductions
 
 
and payments under a regular direct deduction order at any time by notifying
30
 
the bank to which the order was given.
 
 
(2)
The Minister must notify the liable person and, in the case of a joint account,
 
 
each other account holder if the requirement is suspended or re-started under
 
 
this section.
 
 
(3)
Where the requirement is suspended for a continuous period of 2 years the
35
 
regular direct deduction order in question is to be treated as having been
 
 
revoked at the end of that period.
 
 
(4)
Where a regular direct deduction order is treated as having been revoked by
 
 
virtue of subsection (3) , the Minister must give notice to that effect to—
 

Page 20

 
(a)
the bank to which the order was given,
 
 
(b)
the liable person, and
 
 
(c)
in the case of a joint account, each of the other account holders.
 
 
(5)
Subsection (3) does not prevent the Minister making a further regular direct
 
 
deduction order in respect of the same liable person and account.
5
33
Cessation on death of liable person
 
 
A bank ceases to be subject to a direct deduction order on becoming aware
 
 
of the liable person’s death.
 
34
Reviews
 
 
(1)
This section applies where the Minister—
10
 
(a)
makes a direct deduction order,
 
 
(b)
varies a direct deduction order, or
 
 
(c)
decides not to vary a direct deduction order in response to an
 
 
application under section 28 .
 
 
(2)
Any of the following persons (“relevant persons”) may apply to the Minister
15
 
for a review of the decision to make, to vary or not to vary the order—
 
 
(a)
the liable person to whom the order relates, and
 
 
(b)
in the case of a joint account, any other account holder.
 
 
(3)
An application under subsection (2) must be made before the end of the
 
 
period of 28 days beginning with the day after the day on which the applicant
20
 
was—
 
 
(a)
given a copy of the order or the order as varied, or
 
 
(b)
notified of the decision not to vary the order.
 
 
(4)
An application for a review under this section may not be made on, or include,
 
 
any ground relating to the existence or amount of a payable amount (unless
25
 
the amount is said to be incorrectly stated in the order).
 
 
(5)
Where an application for a review is made under this section, the Minister
 
 
must review the decision in question.
 
 
(6)
On the review, the Minister may—
 
 
(a)
uphold the decision,
30
 
(b)
vary the order, or
 
 
(c)
revoke the order.
 
 
(7)
After a review has been carried out, the Minister must notify the applicant
 
 
and other relevant persons of the outcome of the review.
 
 
(8)
See section 29 for provisions about varying a direct deduction order.
35

Page 21

35
Appeals
 
 
(1)
A relevant person may appeal to the First-tier Tribunal against—
 
 
(a)
the making of a direct deduction order,
 
 
(b)
the variation of a direct deduction order, or
 
 
(c)
a refusal to vary a direct deduction order after an application under
5
 
section 28 .
 
 
(2)
A relevant person may not appeal under subsection (1) in relation to a direct
 
 
deduction order unless they have—
 
 
(a)
applied for a review of the decision to make, to vary or not to vary
 
 
the order under section 34 , and
10
 
(b)
been notified of the outcome of the review.
 
 
(3)
Subsection (2) does not apply where a direct deduction order is varied on a
 
 
review under section 34 .
 
 
(4)
A relevant person may not bring an appeal under subsection (1) after the end
 
 
of—
15
 
(a)
the period of 28 days beginning with the day after the day on which
 
 
the person was notified of the outcome of the review, or
 
 
(b)
such longer period (if any) as the Tribunal considers reasonable in all
 
 
the circumstances.
 
 
(5)
An appeal under subsection (1) may not be brought on, or include, any ground
20
 
relating to the existence or amount of a payable amount (unless the amount
 
 
is said to be incorrectly stated in the order).
 
 
(6)
On an appeal under this section, the First-tier Tribunal may suspend the
 
 
requirement on a bank to comply with a direct deduction order for some or
 
 
all of the time until the appeal is finally determined.
25
 
(7)
On an appeal under subsection (1) , the First-tier Tribunal may—
 
 
(a)
amend the direct deduction order;
 
 
(b)
revoke the direct deduction order;
 
 
(c)
dismiss the appeal.
 
 
(8)
In this section, “relevant person” has the meaning that it has in section 34 .
30
36
Meaning of “bank” etc
 
 
(1)
For the purposes of direct deduction orders, “bank” means a person who is
 
 
authorised—
 
 
(a)
to accept deposits, or
 
 
(b)
to issue electronic money.
35
 
(2)
For the purposes of subsection (1) (a) —
 
 
(a)
the reference to accepting deposits is to carrying on the regulated
 
 
activity of accepting deposits for the purposes of the Financial Services
 
 
and Markets Act 2000 (see section 22 of that Act and article 5 of the
 

Page 22

 
Financial Services and Markets Act 2000 (Regulated Activities) Order
 
 
2001 (S.I. 2001/544)), and
 
 
(b)
a person is authorised to accept deposits if they are an authorised
 
 
person or an exempt person in relation to the carrying on of that
 
 
activity for the purposes of the Financial Services and Markets Act
5
 
2000.
 
 
(3)
For the purposes of subsection (1) (b) , a person is authorised to issue electronic
 
 
money if—
 
 
(a)
the person is an electronic money institution, and
 
 
(b)
the person is authorised or registered under Part 2 of the Electronic
10
 
Money Regulations 2011 (S.I. 2011/99) in relation to carrying on the
 
 
activity of issuing electronic money.
 
 
(4)
In subsection (3) , “electronic money” and “electronic money institution” have
 
 
the meanings given by regulation 2(1) of those Regulations (and references
 
 
to the issue of electronic money are to be construed in accordance with those
15
 
Regulations).
 
 
(5)
In this Part, references to an amount in an account are to an amount standing
 
 
to the credit of the account.
 
 
(6)
In this Part, references to a person holding an account include references to—
 
 
(a)
a person holding an account jointly with one or more other persons,
20
 
(b)
a person being a signatory, or one of the signatories, to an account,
 
 
and
 
 
(c)
an account being, in any other way, in the person’s name,
 
 
and “holder” is to be read accordingly.
 
37
Deputies
25
 
(1)
This section applies where a person (a “deputy”) acts on behalf of an account
 
 
holder (including a liable person) in relation to their account by virtue of—
 
 
(a)
a power of attorney, or
 
 
(b)
an appointment by, or an order of, a court.
 
 
(2)
The following provisions apply in relation to the deputy of the account holder
30
 
as they apply in relation to the account holder—
 
 
(a)
section 17 (7) ;
 
 
(b)
section 19 (9) ;
 
 
(c)
section 21 ;
 
 
(d)
section 26 (1) ;
35
 
(e)
section 28 ;
 
 
(f)
section 29 (3) , (6) and (8) (b) ;
 
 
(g)
section 30 (3) ;
 
 
(h)
section 31 (3) ;
 
 
(i)
section 32 (2) or (4) ;
40
 
(j)
section 34 ;
 

Page 23

 
(k)
section 35 .
 
 
(3)
Section 29 (7) (a) and (b) applies in relation to the deputy of the account holder
 
 
instead of the account holder.
 
 
(4)
Subsection (5) applies where—
 
 
(a)
a bank is given—
5
 
(i)
an account information notice or a general information notice
 
 
under section 19 ,
 
 
(ii)
a notice under section 21 ,
 
 
(iii)
a further information notice under section 31 , or
 
 
(iv)
a direct deduction order, and
10
 
(b)
a deputy acts on behalf of an account holder of an account to which
 
 
the notice or order relates.
 
 
(5)
The bank must give the Minister the name and correspondence address that
 
 
it holds for that deputy (unless the bank has already provided that
 
 
information).
15
38
Regulations
 
 
(1)
The Minister may by regulations make further provision about direct deduction
 
 
orders.
 
 
(2)
Regulations under this section may, among other things, make provision
 
 
about—
20
 
(a)
how notices and orders are to be given by the Minister;
 
 
(b)
how notices and information are to be given to the Minister;
 
 
(c)
the calculation of amounts to be deducted, including—
 
 
(i)
about establishing whether deductions would cause a person
 
 
to suffer hardship in meeting essential living expenses, and
25
 
(ii)
about amounts which are, or are not, to be taken into account
 
 
in calculating the amounts credited to an account for the
 
 
purposes of section 22 (3) ;
 
 
(d)
the duties of banks in relation to direct deduction orders, including
 
 
before a direct deduction order is made;
30
 
(e)
costs which a bank may recover by virtue of section 24 or from the
 
 
Minister;
 
 
(f)
the interaction between direct deduction orders under this Chapter
 
 
and similar orders under any other enactment.
 
 
(3)
Regulations under this section may, among other things, apply sections 17 to
35
 
36 , as they apply to banks, to other types of person who provide financial
 
 
products or services (including products or services that operate by reference
 
 
to cryptoassets or any similar product or service).
 
 
(4)
In subsection (3) , “cryptoasset” has the meaning given in section 84A of the
 
 
Proceeds of Crime Act 2002.
40

Page 24

 
(5)
Before making relevant regulations in reliance on subsection (2) (a) , (b) , (d)
 
 
or (e) the Minister must consult—
 
 
(a)
persons who appear to the Minister to represent the interests of banks,
 
 
and
 
 
(b)
such other persons (if any) as the Minister considers appropriate.
5
 
(6)
Before making relevant regulations in reliance on subsection (3) , the Minister
 
 
must consult—
 
 
(a)
persons who appear to the Minister to represent the interests of persons
 
 
to whom provisions about direct deduction orders would be applied
 
 
by the regulations, and
10
 
(b)
such other persons (if any) as the Minister considers appropriate.
 
 
(7)
In this section, “relevant regulations” means—
 
 
(a)
the first regulations made in reliance on the provisions in question,
 
 
and
 
 
(b)
any subsequent regulations made in reliance on those provisions
15
 
which—
 
 
(i)
impose new duties on banks, or
 
 
(ii)
make changes to existing duties or provisions which, in the
 
 
opinion of the Minister, are more than minor.
 
 
(8)
Regulations made in reliance on subsection (3) are subject to the affirmative
20
 
procedure.
 
 
(9)
Any other regulations under this section are subject to the negative procedure.
 

Deduction from earnings

 
39
Deduction from earnings orders
 
 
(1)
Where an amount is recoverable from a liable person who is employed, the
25
 
Minister may make a deduction from earnings order.
 
 
(2)
A deduction from earnings order is an order requiring the liable person’s
 
 
employer—
 
 
(a)
to make deductions from the liable person’s earnings from that
 
 
employer, and
30
 
(b)
pay the amounts deducted to the Minister.
 
 
(3)
The Minister may by regulations make provision about the meaning of
 
 
“earnings” for the purposes of deduction from earnings orders.
 
 
(4)
Regulations under this section are subject to the negative procedure.
 
40
Content and effect of deduction from earnings orders
35
 
(1)
A deduction from earnings order must set out—
 
 
(a)
the amounts to be deducted or a method for calculating those amounts,
 

Page 25

 
(b)
the periods in relation to which those amounts are to be deducted
 
 
(the “affected periods”),
 
 
(c)
when amounts are to be deducted and paid to the Minister, and
 
 
(d)
the penalties that may be imposed for a failure to comply (see section
 
 
54 ).
5
 
(2)
The Minister must give—
 
 
(a)
the deduction from earnings order to the liable person’s employer,
 
 
and
 
 
(b)
a copy of the order to the liable person.
 
 
(3)
A deduction from earnings order may not require an amount to be deducted
10
 
from the liable person’s earnings before the end of the period of 22 days
 
 
beginning with the day on which the order is given to the employer.
 
 
(4)
An employer must comply with a deduction from earnings order.
 
41
Requirements before making a deduction from earnings order
 
 
(1)
Before making a deductions from earnings order in respect of a liable person,
15
 
the Minister must give the liable person a notice inviting them to make
 
 
representations about the proposed order.
 
 
(2)
The notice must include—
 
 
(a)
the terms of the proposed order,
 
 
(b)
a statement of the amount that is recoverable, and
20
 
(c)
the means by which, and the period within which, representations
 
 
may be made.
 
 
(3)
The period must be at least 28 days beginning with the day after the day on
 
 
which the notice is given.
 
 
(4)
The Minister must—
25
 
(a)
consider any representations received in accordance with the notice,
 
 
and
 
 
(b)
in light of those representations—
 
 
(i)
decide whether to make a deductions from earnings order in
 
 
respect of the liable person, and
30
 
(ii)
make any changes to the terms of the proposed order that the
 
 
Minister considers appropriate.
 
 
(5)
The Minister must give a copy of a notice under subsection (1) to the liable
 
 
person’s employer.
 
 
(6)
If, following the giving of a notice under subsection (1) , the Minister decides
35
 
not to make the proposed deduction from earnings order, the Minister must,
 
 
as soon as reasonably practicable—
 
 
(a)
give the liable person a notice to that effect, and
 
 
(b)
give a copy of the notice to the liable person’s employer.
 

Page 26

42
Amount of deductions
 
 
(1)
The Minister may make a deduction from earnings order only if satisfied that
 
 
the terms of the order—
 
 
(a)
will not cause the liable person or a person within subsection (2) to
 
 
suffer hardship in meeting ordinary living expenses, and
5
 
(b)
are otherwise fair in all the circumstances.
 
 
(2)
A person is within this subsection if—
 
 
(a)
they live with the liable person for some or all of the time, or
 
 
(b)
they are financially dependent on the liable person.
 
 
(3)
The amount to be deducted in relation to an affected period must not exceed—
10
 
(a)
in a case to which subsection (4) applies, 40% of the liable person’s
 
 
net earnings for the affected period, and
 
 
(b)
in any other case, 20% of the liable person’s net earnings for the
 
 
affected period.
 
 
(4)
This subsection applies in a case where the Minister is satisfied, on the balance
15
 
of probabilities, that the payable amount to which the deduction from earnings
 
 
order relates is recoverable from the liable person because the liable person
 
 
committed fraud.
 
 
(5)
The Minister must ensure that the total amount to be deducted and paid to
 
 
the Minister under a deduction from earnings order does not exceed the
20
 
payable amount to which the order relates.
 
 
(6)
The Minister may by regulations make further provision about the calculation
 
 
of amounts to be deducted from a liable person’s earnings and paid to the
 
 
Minister in accordance with a deduction from earnings order.
 
 
(7)
The regulations may, among other things, make provision about establishing
25
 
whether deductions would cause a person to suffer hardship in meeting
 
 
ordinary living expenses.
 
 
(8)
Regulations under this section are subject to the negative procedure.
 
 
(9)
In this section, “net earnings” means the person’s earnings after the following
 
 
have been deducted—
30
 
(a)
income tax,
 
 
(b)
primary Class 1 national insurance contributions, and
 
 
(c)
any contribution that the person pays to a pension scheme.
 
43
The employer’s administrative costs
 
 
(1)
A deduction from earnings order may include provision for the employer to
35
 
which it is given to deduct from the liable person’s earnings an amount
 
 
specified in, or calculated in accordance with, the order, for the purpose of
 
 
meeting costs reasonably incurred by the employer in complying with the
 
 
order.
 

Page 27

 
(2)
In complying with section 42 (1) and (3) in relation to a deduction from
 
 
earnings order the Minister must take account of any deductions to be made
 
 
under the order by virtue of subsection (1) .
 
 
(3)
The Minister may by regulations make provision about costs to which
 
 
subsection (1) relates.
5
 
(4)
Regulations under this section are subject to the negative procedure.
 
44
Suspension of deduction from earnings orders
 
 
(1)
The Minister may suspend and re-start the requirement to make deductions
 
 
and payments under a deduction from earnings order at any time by notifying
 
 
the employer to which the order was given.
10
 
(2)
The Minister must notify the liable person if the requirement is suspended
 
 
or re-started under this section.
 
 
(3)
Where the requirement is suspended for a continuous period of 2 years the
 
 
deduction from earnings order in question is to be treated as having been
 
 
revoked at the end of that period.
15
 
(4)
Where a deduction from earnings order is treated as having been revoked
 
 
by virtue of subsection (3) , the Minister must give notice to that effect to—
 
 
(a)
the liable person, and
 
 
(b)
the employer to which the order was given.
 
 
(5)
Subsection (3) does not prevent the Minister making a further deduction from
20
 
earnings order in respect of the same liable person.
 
45
Duty to notify the Minister of change of circumstances
 
 
(1)
A liable person in respect of whom a deduction from earnings order is in
 
 
force, must notify the Minister on each occasion that they—
 
 
(a)
leave any employment, or
25
 
(b)
start a new employment,
 
 
within the period of 7 days beginning with the day after the day on which
 
 
they leave or start the employment.
 
 
(2)
If the liable person notifies the Minister that they have started a new
 
 
employment, they must include a statement of their expected earnings from
30
 
their new employment.
 
 
(3)
A person who—
 
 
(a)
becomes the employer of a liable person, and
 
 
(b)
knows that a deduction from earnings order is in force in respect of
 
 
the liable person,
35
 
must, within 10 days of the beginning of the liable person’s employment,
 
 
notify the Minister that they have become the liable person’s employer and
 
 
include a statement of the liable person’s expected earnings from the
 
 
employment.
 

Page 28

 
(4)
A person must notify the Minister if a liable person in respect of whom a
 
 
deduction from earnings order is in force ceases to be in their employment.
 
 
(5)
The notification must be given within the period of 10 days beginning with
 
 
the day after the day on which the liable person leaves the employment.
 
46
Applications to vary
5
 
(1)
A liable person may apply to the Minister to vary a deduction from earnings
 
 
order.
 
 
(2)
The Minister must notify the liable person of the Minister’s decision on the
 
 
application.
 
47
Variation
10
 
(1)
The Minister may vary a deduction from earnings order given to an employer
 
 
(whether on an application by the liable person or otherwise) by—
 
 
(a)
giving a revised version of the order to the employer, and
 
 
(b)
giving a copy of the revised version to the liable person.
 
 
(2)
Where the Minister proposes to vary a deduction from earnings order, the
15
 
Minister must give the liable person an opportunity to make representations
 
 
about the proposed variation.
 
48
Revocation
 
 
(1)
The Minister may revoke a deduction from earnings order.
 
 
(2)
The Minister must revoke a deduction from earnings order if the payable
20
 
amount to which it relates has been recovered.
 
 
(3)
Where the Minister revokes a deduction from earnings order, the Minister
 
 
must give notice of the revocation to—
 
 
(a)
the employer, and
 
 
(b)
the liable person.
25
49
Reviews
 
 
(1)
This section applies where the Minister—
 
 
(a)
makes a deduction from earnings order,
 
 
(b)
varies a deduction from earnings order, or
 
 
(c)
decides not to vary a deduction from earnings order in response to
30
 
an application under section 46 .
 
 
(2)
A liable person may apply to the Minister for a review of the decision to
 
 
make, to vary or not to vary the order.
 
 
(3)
An application under subsection (2) must be made within the period of 28
 
 
days beginning with the day after the day on which the liable person was—
35

Page 29

 
(a)
given a copy of the order or the order as varied, or
 
 
(b)
notified of the decision not to vary the order.
 
 
(4)
An application for a review under subsection (1) may not be brought on, or
 
 
include, any ground relating to the existence or amount of a payable amount
 
 
(unless the amount is said to be incorrectly stated in the order).
5
 
(5)
Where an application is made under this section, the Minister must review
 
 
the decision in question.
 
 
(6)
On a review, the Minister may—
 
 
(a)
uphold the decision,
 
 
(b)
vary the order, or
10
 
(c)
revoke the order.
 
 
(7)
After a review has been carried out, the Minister must—
 
 
(a)
notify the liable person of the outcome of the review, and
 
 
(b)
if the outcome was to vary the order, give—
 
 
(i)
the varied order to the liable person’s employer, and
15
 
(ii)
a copy of the varied order to the liable person.
 
50
Appeals
 
 
(1)
A liable person may appeal to the First-tier Tribunal against—
 
 
(a)
the making of a deduction from earnings order,
 
 
(b)
the variation of a deduction from earnings order, or
20
 
(c)
a refusal to vary a deduction from earnings order after an application
 
 
under section 46 .
 
 
(2)
The liable person may not appeal under subsection (1) unless they have—
 
 
(a)
applied for a review of the decision to make, to vary or not to vary
 
 
the order under section 49 , and
25
 
(b)
been notified of the outcome of the review.
 
 
(3)
Subsection (2) does not apply where a deduction from earnings order is varied
 
 
on a review under section 49 .
 
 
(4)
An appeal may not be brought after the end of—
 
 
(a)
the period of 28 days beginning with the day after the day on which
30
 
the liable person was notified of the outcome of the review, or
 
 
(b)
such longer period (if any) as the Tribunal considers reasonable in all
 
 
the circumstances.
 
 
(5)
An appeal under subsection (1) may not be brought on, or include, any ground
 
 
relating to the existence or amount of a payable amount (unless the amount
35
 
is said to be incorrectly stated in the order).
 
 
(6)
On an appeal under this section, the First-tier Tribunal may suspend the
 
 
requirement on an employer to comply with a deduction from earnings order
 
 
for some or all of the time until the appeal is finally determined.
 

Page 30

 
(7)
On an appeal under subsection (1) , the First-tier Tribunal may—
 
 
(a)
amend the deduction from earnings order,
 
 
(b)
revoke the deduction from earnings order, or
 
 
(c)
dismiss the appeal.
 

Chapter 5

5

Civil penalties

 
51
Penalty relating to fraud
 
 
The Minister may impose a penalty on a person if satisfied, on the balance
 
 
of probabilities, that the person has carried out, or conspired to carry out,
 
 
fraud—
10
 
(a)
in order to receive or help another person to receive a payment that
 
 
is or, if the payment was not made, would have been, a recoverable
 
 
amount, or
 
 
(b)
with the result that a public authority is entitled to claim any other
 
 
recoverable amount.
15
52
Application to members etc of bodies
 
 
(1)
Subsection (2) applies where a body is liable to receive a penalty under section
 
 
51 by reason of anything which the Minister is satisfied, on the balance of
 
 
probabilities, was done or not done with the consent or connivance of—
 
 
(a)
a relevant individual in relation to the body, or
20
 
(b)
an individual purporting to act in the capacity of a relevant individual
 
 
in relation to the body.
 
 
(2)
The Minister may impose a penalty under section 51 on the individual as
 
 
well as on the body.
 
 
(3)
In this section, “relevant individual” means—
25
 
(a)
in relation to a body corporate other than one whose affairs are
 
 
managed by its members, a director, manager, secretary or other similar
 
 
officer of the body;
 
 
(b)
in relation to a limited liability partnership or other body corporate
 
 
whose affairs are managed by its members, a member who exercises
30
 
functions of management with respect to it;
 
 
(c)
in relation to a limited partnership, a general partner (within the
 
 
meaning given by section 3 of the Limited Partnerships Act 1907);
 
 
(d)
in relation to any other partnership, a partner;
 
 
(e)
in relation to an unincorporated association, a person who exercises
35
 
functions of management with respect to it.
 

Page 31

53
Amount of penalty relating to fraud
 
 
(1)
A penalty imposed on a person under section 51 (a) may not exceed 100% of
 
 
the payment to which it relates.
 
 
(2)
Where a penalty is imposed under section 51 (a) in relation to conduct which
 
 
does not result in a person receiving a payment, subsection (1) is to be read
5
 
as if the reference to “the payment” were to the payment which, in the opinion
 
 
of the Minister, a person would have received if a payment had been made
 
 
in consequence of the conduct.
 
 
(3)
A penalty imposed on a person under section 51 (b) may not exceed 100%
 
 
of—
10
 
(a)
any loss caused to the public authority, or
 
 
(b)
if higher, the benefit gained by the person,
 
 
as a result of the fraud in question.
 
54
Penalty for failing to comply with requirements
 
 
The Minister may impose a penalty on a person where the Minister considers
15
 
that the person has, without reasonable excuse, failed to comply with—
 
 
(a)
a requirement imposed by or under Chapter 2 (investigatory powers),
 
 
or
 
 
(b)
a requirement imposed by or under Chapter 4 (methods of recovery).
 
55
Application to members etc of bodies
20
 
(1)
Subsection (2) applies where the Minister considers that—
 
 
(a)
a body has, without reasonable excuse, failed to comply with a
 
 
requirement mentioned in section 54 , and
 
 
(b)
a relevant individual in relation to the body has, without reasonable
 
 
excuse, failed to prevent that failure.
25
 
(2)
The Minister may impose a penalty under section 54 on the individual as
 
 
well as on the body.
 
 
(3)
In this section, “relevant individual” in relation to a body has the same
 
 
meaning that it has in section 52 .
 
56
Amount of penalty for failing to comply with requirements
30
 
(1)
A penalty imposed for a failure to comply with a requirement to provide
 
 
information imposed by or under Chapter 2 or Chapter 4 must be an amount
 
 
calculated by reference to a daily rate of £300.
 
 
(2)
Any other penalty for a failure to comply with a requirement imposed by or
 
 
under Chapter 2 or Chapter 4 must be a fixed amount of £300.
35
 
(3)
In this section, references to a “daily rate” in relation to a person’s failure to
 
 
provide information are to an amount that may be imposed for each day by
 

Page 32

 
the end of which the information has not been provided, beginning with the
 
 
last day on which compliance would have resulted in a penalty not being
 
 
payable.
 
 
(4)
The Minister may by regulations amend the amounts mentioned in subsections
 
 
(1) and (2) for the time being to reflect a change in the value of money.
5
 
(5)
Regulations under subsection (4) are subject to the negative procedure.
 
57
Procedural rights
 
 
(1)
This section and sections 58 and 59 set out steps that must be taken before
 
 
the Minister may impose a penalty on a person under section 51 or 54 .
 
 
(2)
Where the Minister proposes that a person should be given a penalty under
10
 
section 51 or 54 , the Minister must give the person a notice (a “notice of
 
 
intent”) inviting them to make representations about the proposed penalty.
 
 
(3)
The notice of intent must include—
 
 
(a)
the amount of the proposed penalty,
 
 
(b)
the reasons for the penalty being of that amount, and
15
 
(c)
the means by which, and the period within which, representations
 
 
may be made.
 
 
(4)
The period must be at least 28 days beginning with the day after the day on
 
 
which the notice is given.
 
 
(5)
The Minister must—
20
 
(a)
consider any representations received in accordance with the notice,
 
 
and
 
 
(b)
in light of those representations—
 
 
(i)
decide whether to impose the penalty, and
 
 
(ii)
make any changes to the terms of the proposed penalty that
25
 
the Minister considers appropriate.
 
 
(6)
Where the Minister decides not to impose a penalty on the person, the Minister
 
 
must give the person a notice to that effect.
 
58
Penalty decision notices
 
 
(1)
Where the Minister decides to impose a penalty on the person, the Minister
30
 
must give the person a penalty decision notice.
 
 
(2)
A penalty decision notice is a notice—
 
 
(a)
informing the person of the decision that a penalty should be imposed
 
 
on the person,
 
 
(b)
stating the amount of the penalty,
35
 
(c)
setting out the reasons for the penalty being of that amount,
 

Page 33

 
(d)
explaining that the person can apply for a review of the decision within
 
 
the period of 28 days beginning with the day after the day on which
 
 
the decision notice is given, and
 
 
(e)
explaining that if the person does not seek a review within that period,
 
 
the penalty notice will be given after the end of that period.
5
 
(3)
If a review of the decision is requested in accordance with the penalty decision
 
 
notice, the penalty may not be imposed until after a review has been carried
 
 
out.
 
 
(4)
If no such review is requested, the penalty may be imposed after the period
 
 
mentioned in subsection (2) (d) .
10
59
Reviews and decisions
 
 
(1)
Where a review of the decision that a penalty should be imposed is requested
 
 
following receipt of a penalty decision notice, the Minister must carry out a
 
 
review of that decision.
 
 
(2)
On a review, the Minister may—
15
 
(a)
uphold the decision to impose the penalty and the amount of the
 
 
penalty,
 
 
(b)
uphold the decision to impose the penalty but change its amount, or
 
 
(c)
cancel the decision to impose a penalty.
 
 
(3)
Where the Minister makes a decision within subsection (2) (a) or (b) , the
20
 
Minister must—
 
 
(a)
give the person a notice in accordance with section 60 , and
 
 
(b)
inform the person of the right of appeal under section 61 .
 
 
(4)
Where the Minister makes a decision within subsection (2) (c) , the Minister
 
 
must give the person a notice to that effect.
25
60
Penalty notices
 
 
(1)
A penalty under section 51 or 54 is imposed by giving a person a notice (a
 
 
“penalty notice”) requiring the person to pay a penalty of a specified amount
 
 
to the Minister on or before a specified day.
 
 
(2)
A person may not be given more than one penalty notice in respect of the
30
 
same act or omission.
 
 
(3)
Where a person is liable under section 54 to a penalty for a failure to provide
 
 
information, and the penalty is calculated by reference to a daily rate, the
 
 
failure to provide information by the end of each day in relation to which
 
 
the daily rate accrues is to be treated as a separate omission for the purposes
35
 
of subsection (2) .
 
 
(4)
In this section, “specified” means specified in the penalty notice.
 

Page 34

61
Appeals
 
 
(1)
A person may appeal against a penalty notice to the appropriate court.
 
 
(2)
An appeal may not be brought after the end of—
 
 
(a)
the period of 28 days beginning with the day after the day on which
 
 
the person is given the penalty notice, or
5
 
(b)
such longer period (if any) as the appropriate court considers
 
 
reasonable in all the circumstances.
 
 
(3)
On an appeal under subsection (1) , the appropriate court may—
 
 
(a)
uphold the penalty notice,
 
 
(b)
revoke the penalty notice, or
10
 
(c)
amend the penalty notice.
 
 
(4)
Subsection (5) applies where—
 
 
(a)
an appeal is against a penalty notice under section 51 (penalty relating
 
 
to fraud), and
 
 
(b)
court proceedings other than an appeal against a penalty notice have
15
 
reached a final determination, on at least the balance of probabilities,
 
 
that the person to whom the notice was given—
 
 
(i)
carried out or conspired to carry out, or
 
 
(ii)
in a case to which section 52 applies, consented to or connived
 
 
in the act or omission which constituted,
20
 
the fraud to which the penalty relates.
 
 
(5)
For the purposes of the appeal against a penalty notice, that final
 
 
determination is determinative of the question whether the person carried
 
 
out the fraud.
 
 
(6)
The Minister may by regulations make further provision about appeals against
25
 
a penalty notice.
 
 
(7)
The regulations may, among other things, provide for appeals to be heard at
 
 
the same time as proceedings mentioned in section 10 (1) (a) (proceedings to
 
 
recover a claimed amount).
 
 
(8)
Regulations under this section are subject to the negative procedure.
30
 
(9)
In this section, “the appropriate court” means—
 
 
(a)
the First-tier Tribunal, or
 
 
(b)
such other court or tribunal as may be specified in regulations under
 
 
this section.
 
62
Interest
35
 
(1)
An amount payable by a person in accordance with a penalty notice carries
 
 
interest (“late payment interest”) for each day in the period beginning with
 
 
the interest start day and ending with the day of payment.
 

Page 35

 
(2)
The interest start day is the day after the specified day included in a penalty
 
 
notice in accordance with section 60 (1) .
 
 
(3)
The late payment interest rate applicable to a day in the interest period is the
 
 
percentage per year found by adding 2.5 to the Bank of England rate
 
 
applicable to the day.
5
 
(4)
The Bank of England rate applicable to a day is the official bank rate
 
 
announced by the Bank of England Monetary Policy Committee at its most
 
 
recent meeting prior to the day.
 
 
(5)
Late payment interest is not payable on late payment interest.
 
63
Code of practice
10
 
(1)
The Minister must issue a code of practice about the administration of penalties
 
 
under section 51 , including about the making of decisions about the imposition
 
 
and amount of a penalty.
 
 
(2)
The code of practice must include provision about circumstances in which,
 
 
and the extent to which, the Minister considers that it would be appropriate
15
 
to discount the amount of a penalty as a result of cooperative conduct by the
 
 
person on whom the penalty is imposed.
 
 
(3)
The Minister may from time to time revise and reissue the code of practice.
 
 
(4)
The Minister must lay the code of practice, or any reissued code of practice,
 
 
before Parliament.
20
64
Penalties and criminal proceedings or convictions
 
 
(1)
The Minister may not give a penalty notice to a person under section 51 in
 
 
relation to an act or omission which constitutes an offence if the person has,
 
 
in relation to that act or omission, been found guilty of that offence.
 
 
(2)
A person may not be found guilty of an offence in relation to an act or
25
 
omission if the person has paid a penalty in response to a penalty notice
 
 
given under section 51 in relation to that act or omission.
 

Chapter 6

 

General

 
65
Independent review
30
 
(1)
The Minister must appoint an independent person to carry out reviews of
 
 
the exercise of the Minister’s functions under this Part.
 
 
(2)
After each review, the independent person must as soon as practicable—
 
 
(a)
prepare a report on the review, and
 
 
(b)
submit the report to the Minister.
35

Page 36

 
(3)
On receiving a report, the Minister must—
 
 
(a)
publish it, and
 
 
(b)
lay a copy before Parliament.
 
 
(4)
Each review must consider the extent to which—
 
 
(a)
functions under this Part have been exercised in compliance with the
5
 
requirements of this Part, relevant codes of practice and relevant
 
 
guidance, and
 
 
(b)
the exercise of those functions has been effective in delivering the
 
 
Minister’s functions under section 1 (1) (a) to (c) .
 
 
(5)
Each report must contain any recommendations which the independent person
10
 
considers appropriate in light of the review to which it relates.
 
 
(6)
In subsection (4) (b) , “relevant codes of practice” and “relevant guidance” mean
 
 
codes of practice and guidance to which the Minister must have regard in
 
 
exercising functions under this Part.
 
66
Independent review: further provision
15
 
(1)
The Minister may give the independent person appointed under section 65 (1)
 
 
directions as to the period to be covered by each review carried out under
 
 
section 65 .
 
 
(2)
The Minister must consult the independent person before giving a direction
 
 
under subsection (1) .
20
 
(3)
The Minister must disclose information to the independent person, or to a
 
 
person acting on behalf of the independent person, where the information is
 
 
reasonably required for the purposes of reviews being carried out under
 
 
section 65 .
 
 
(4)
The Minister may by regulations confer functions on a person for the purposes
25
 
of securing compliance with section 65 .
 
 
(5)
Regulations under subsection (4) are subject to the negative procedure.
 
67
Authorised officers
 
 
(1)
Investigatory and enforcement powers under sections 3 (information notices),
 
 
7 (Police and Criminal Evidence Act 1984 etc powers), 17 (direct deduction
30
 
orders), and 39 (deduction from earnings orders) of this Act shall not be
 
 
exercised except as provided for in this section.
 
 
(2)
The following decisions, if not made by the Minister personally, may be made
 
 
only by an individual authorised by the Minister for the purposes of this
 
 
section (an “authorised officer”)—
35
 
(a)
deciding to give an information notice under section 3 (2) ;
 
 
(b)
deciding to give a recovery notice under section 11 (1) ;
 
 
(c)
deciding to make a direct deduction order under section 17 (1) ;
 
 
(d)
deciding to vary a direct deduction order under section 29 (1) ;
 

Page 37

 
(e)
deciding to make a deduction from earnings order under section 39 (1) ;
 
 
(f)
deciding to vary a deduction from earnings order under section 47 ;
 
 
(g)
deciding to give a notice of intent under section 57 (2) ;
 
 
(h)
deciding to impose a penalty under section 51 or 54 (and to give a
 
 
notice for that purpose under section 60 ).
5
 
(3)
The exercise of the following powers by an authorised officer requires explicit
 
 
authorisation by a Minister of the Crown issuing information notices under
 
 
section 3 requiring disclosure of personal financial records; applications for
 
 
warrants under section 7 involving entry to premises and seizure of evidence;
 
 
orders under sections 17 and 38 where the amount involved exceeds £10,000.
10
 
(4)
All other investigatory and enforcement powers under this Act must be
 
 
authorised by an official at Senior Civil Service grade or above.
 
 
(5)
The Public Sector Fraud Authority must maintain a register recording—
 
 
(a)
the nature and date of each exercise of these powers;
 
 
(b)
the name and position of the official or Minister authorising the
15
 
exercise;
 
 
(c)
the justification provided for exercising the powers.
 
 
(6)
The Minister must lay before Parliament a copy of this register annually
 
 
within three months of the conclusion of the financial year to which it relates.
 
 
(7)
Subsection (8) applies where—
20
 
(a)
the Minister is required by virtue of a provision of this Part to review
 
 
a decision mentioned in subsection (2) , and
 
 
(b)
the decision was made by an authorised officer.
 
 
(8)
The review must be carried out by—
 
 
(a)
an authorised officer of a higher grade than the authorised officer who
25
 
made the decision, or
 
 
(b)
the Minister personally.
 
 
(9)
An individual may not be an authorised officer unless the individual is
 
 
employed in the civil service of the state in the Minister’s department.
 
68
Disclosure of information etc: interaction with external constraints
30
 
(1)
This section applies in relation to any provision for the disclosure or obtaining
 
 
of information made by or under this Part.
 
 
(2)
The provision does not require or authorise any disclosure of information
 
 
that is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the
 
 
Investigatory Powers Act 2016.
35
 
(3)
The disclosure of information in accordance with the provision (as read subject
 
 
to subsection (2) ) does not breach—
 
 
(a)
any obligation of confidence owed by the person making the disclosure,
 
 
or
 

Page 38

 
(b)
any other restriction on the disclosure of information (however
 
 
imposed).
 
 
(4)
The provision does not require or authorise the disclosure or obtaining of
 
 
information in respect of which a claim to legal professional privilege could
 
 
be maintained in legal proceedings without the agreement of the person
5
 
entitled to maintain that claim.
 
 
(5)
Subsection (5) does not apply in relation to the provisions of the Police and
 
 
Criminal Evidence Act 1984 as applied by section 7.
 
69
Crown etc application
 
 
(1)
Subject to the following provisions of this section, this Part binds the Crown
10
 
and applies in relation to Crown premises as it applies in relation to any
 
 
other premises.
 
 
(2)
In this section, “Crown premises” means premises held, or used by, or on
 
 
behalf of the Crown.
 
 
(3)
Sections 16 to 38 (recovery orders and recovery from bank accounts) and
15
 
Chapter 5 (penalties) do not bind the Crown.
 
 
(4)
If the Minister or the Secretary of State certifies that it appears appropriate
 
 
in the interests of national security that powers of entry conferred by this
 
 
Part should not be exercisable in relation to Crown premises specified in the
 
 
certificate, those powers are not exercisable in relation to those premises.
20
 
(5)
No power of entry conferred by, or by virtue of, this Part may be exercised
 
 
in relation to—
 
 
(a)
land belonging to His Majesty in right of His private estates, or
 
 
(b)
premises occupied for the purposes of either House of Parliament.
 
 
(6)
In subsection (5) (a) , the reference to His Majesty’s private estates is to be read
25
 
in accordance with section 1 of the Crown Private Estates Act 1862.
 
70
The Public Sector Fraud Authority
 
 
Schedule 2 contains provision about—
 
 
(a)
the establishment of the Public Sector Fraud Authority (“the PSFA”),
 
 
and
30
 
(b)
the transfer of functions conferred by or under this Part to the PSFA
 
 
or to another public authority.
 
71
Interpretation
 
 
(1)
In this Part—
 
 
“authorised officer” has the meaning given by section 67 ;
35
 
“bank” has the meaning given by section 36 (1) ;
 
 
“claimed amount” has the meaning given by section 10 (1) (a) ;
 

Page 39

 
“the core functions” has the meaning given by section 1 ;
 
 
“direct deduction order” means a regular direct deduction order or a
 
 
lump sum direct deduction order;
 
 
“fraud” includes—
 
 
(a)
the offences in sections 1 and 11 of the Fraud Act 2006 (fraud
5
 
and obtaining services dishonestly),
 
 
(b)
the offences in sections 6 and 7 of that Act (possessing, making
 
 
or supplying articles for use in frauds), and
 
 
(c)
the offence at common law of conspiracy to defraud;
 
 
“information” means information in the form of a document or in any
10
 
other form;
 
 
“joint account” means an account held by more than one person;
 
 
“liable person” has the meaning given by section 11 (1) ;
 
 
“lump sum direct deduction order” has the meaning given by section
 
 
17 (5) ;
15
 
“the Minister” means the Minister for the Cabinet Office;
 
 
“payable amount” has the meaning given by section 15 ;
 
 
“public authority” means a person with functions of a public nature so
 
 
far as acting in the exercise of those functions;
 
 
“recoverable amount” has the meaning given by section 1 (3) ;
20
 
“regular direct deduction order” has the meaning given by section 17 (4) ;
 
 
“sole account” means an account held by one person;
 
 
“suspected fraud” is conduct which the Minister has reasonable grounds
 
 
to suspect may constitute fraud;
 
 
“working day” means any day other than—
25
 
(a)
Saturday or Sunday, or
 
 
(b)
a day which is a bank holiday under the Banking and Financial
 
 
Dealings Act 1971 in any part of the United Kingdom.
 
 
(2)
For the purposes of applying this Part in relation to the offences in sections
 
 
6 and 7 of the Fraud Act 2006 (possessing, making or supplying articles for
30
 
use in frauds), references in this Part to fraud against a public authority are
 
 
to be read as including the commission of those offences by—
 
 
(a)
in relation to section 6 of the Fraud Act 2006, possessing or having
 
 
control of an article for use in the course of or in connection with a
 
 
fraud against a public authority, and
35
 
(b)
in relation to section 7 of that Act, making, adapting, supplying or
 
 
offering to supply an article—
 
 
(i)
knowing that it is designed or adapted for use in the course
 
 
of or in connection with fraud against a public authority, or
 
 
(ii)
intending it to be used to commit, or assist in the commission
40
 
of, fraud against a public authority.
 
 
(3)
In this Part, references to giving a notice or other document (however
 
 
expressed), include sending the notice or document by post.
 

Page 40

 
(4)
For the purposes of this Part—
 
 
(a)
court proceedings (including an appeal) are not finally determined
 
 
until any appeal relating to the proceedings has been withdrawn,
 
 
abandoned or determined (ignoring any possibility of an appeal out
 
 
of time with permission), and
5
 
(b)
a final determination is the determination reached when court
 
 
proceedings are finally determined.
 
72
Regulations
 
 
(1)
Regulations under this Part are to be made by statutory instrument.
 
 
(2)
A power to make regulations under any provision of this Part includes power
10
 
to make—
 
 
(a)
consequential, supplementary, incidental, transitional or saving
 
 
provision;
 
 
(b)
different provision for different purposes.
 
 
(3)
Where regulations under this Part are subject to “the affirmative procedure”,
15
 
the regulations may not be made unless a draft of the statutory instrument
 
 
containing them has been laid before, and approved by a resolution of, each
 
 
House of Parliament.
 
 
(4)
Where regulations under this Part are subject to “the negative procedure”,
 
 
the statutory instrument containing them is subject to annulment in pursuance
20
 
of a resolution of either House of Parliament.
 
 
(5)
Any provision that may be made by regulations under this Part subject to
 
 
the negative procedure may be made in regulations subject to the affirmative
 
 
procedure.
 

Part 2

25

Social security etc

 

Chapter 1

 

Powers to require information

 
73
Information notices
 
 
(1)
The Social Security Administration Act 1992 is amended as follows.
30
 
(2)
After section 109B insert—
 
“109BZA
Power to require information about suspected fraud etc
 
 
(1)
An authorised officer may give a person (“P”) a written notice (an
 
 
“information notice”) requiring P to give an authorised officer specified
 
 
information where the officer—
35

Page 41

 
(a)
has reasonable grounds to suspect that a person has committed,
 
 
is committing or intends to commit a DWP offence, and
 
 
(b)
considers that it is necessary and proportionate to require the
 
 
specified information for a purpose mentioned in section
 
 
109A(2)(c) or (d) (investigating compliance with the relevant
5
 
social security legislation etc).
 
 
(2)
Information may be specified in an information notice only if it relates
 
 
to a person who is identified (by name or description) in the
 
 
information notice as—
 
 
(a)
the person suspected as mentioned in subsection (1) (a) , or
10
 
(b)
a member of that person’s family (within the meaning of Part
 
 
7 of the Contributions and Benefits Act).
 
 
(3)
An authorised officer may require P to give specified information only
 
 
if the officer has reasonable grounds to suspect that P has or is able
 
 
to access the information.
15
 
(4)
An information notice must set out—
 
 
(a)
the identity (by name or description) of the person to whom
 
 
the information requested relates;
 
 
(b)
how, where and the period within which the information must
 
 
be given;
20
 
(c)
information about the consequences of not complying with the
 
 
notice.
 
 
(5)
The power under this section to require P to give information includes
 
 
power to—
 
 
(a)
take copies of or extracts from information;
25
 
(b)
require P to provide information in a specified form;
 
 
(c)
if any specified information is not given to an authorised officer,
 
 
require P to state, to the best of P’s knowledge and belief, both
 
 
where that information is and why it has not been given to an
 
 
authorised officer.
30
 
(6)
Subsection (2E) of section 109B (communications data) applies to an
 
 
information notice under this section as it applies to a notice under
 
 
that section.
 
 
(7)
In this section—
 
 
“information” means information in the form of a document or
35
 
in any other form;
 
 
“specified” means—
 
 
(a)
specified, or described, in the information notice, or
 
 
(b)
falling within a category that is specified or described
 
 
in the information notice.
40
 
(8)
Nothing in this section limits the powers conferred on the Secretary
 
 
of State by Schedule 3B.”
 

Page 42

 
(3)
In section 109A (authorisations for investigators)—
 
 
(a)
in subsection (1), for “109B and 109C below” substitute “109B to 109C”;
 
 
(b)
in subsection (2)(d), at the end insert “or other DWP offences”;
 
 
(c)
in subsection (8), for “109B and 109C below” substitute “109B to 109C”.
 
 
(4)
In section 109B (power to require information)—
5
 
(a)
in the heading, at the end insert “about entitlement etc”;
 
 
(b)
in subsection (1)(a) omit “or (2A)”;
 
 
(c)
in subsection (1)(b), for “any one or more of the purposes mentioned
 
 
in section 109A(2) above” substitute “a purpose mentioned in section
 
 
109A(2)(a) or (b)”;
10
 
(d)
omit the following provisions—
 
 
(i)
subsection (2A);
 
 
(ii)
subsection (2B);
 
 
(iii)
subsection (2C);
 
 
(iv)
subsection (2D);
15
 
(v)
subsection (5);
 
 
(vi)
subsection (6);
 
 
(vii)
subsection (7A);
 
 
(e)
in subsection (7) omit the definitions of—
 
 
(i)
“bank”;
20
 
(ii)
“credit”;
 
 
(iii)
“insurer”;
 
 
(iv)
“residential premises”.
 
 
(5)
In section 109BA (power of the Secretary of State to require electronic access
 
 
to information)—
25
 
(a)
in subsection (1)—
 
 
(i)
in paragraph (a) omit “falling within section 109B(2A)”;
 
 
(ii)
in paragraph (b), for “109A(2)” substitute “109A(2)(c) or (d)”;
 
 
(b)
in subsection (2)(b), for “109B above” substitute “109BZA”;
 
 
(c)
in subsection (4), for “109B” substitute “109BZA”.
30
 
(6)
In section 109C (powers of entry), in subsection (6), for “Subsections (2E) and
 
 
(5) of section 109B apply for the purposes of this section as they apply”
 
 
substitute “Subsection (2E) of section 109B applies for the purposes of this
 
 
section as it applies”.
 
 
(7)
In section 190 (Parliamentary control of orders and regulations), in subsection
35
 
(1) omit paragraph (aza).
 
74
Consequential amendments to the Social Security Fraud Act 2001
 
 
(1)
The Social Security Fraud Act 2001 is amended as follows.
 
 
(2)
In section 3 (code of practice about use of information powers), in subsection
 
 
(1)—
40

Page 43

 
(a)
in the words before paragraph (a), after the second “of” insert “the
 
 
powers that are exercisable by an authorised officer under section
 
 
109BZA of the Administration Act.”, and
 
 
(b)
omit paragraphs (a) and (b).
 
 
(3)
Section 4 (arrangements for payments in respect of information) is amended
5
 
as follows.
 
 
(4)
For subsections (1) and (2) substitute—
 
 
“(1A)
The Secretary of State must ensure that such arrangements (if any)
 
 
are in force as the Secretary of State thinks appropriate for requiring
 
 
or authorising, in such cases as the Secretary of State thinks fit, the
10
 
making of such payments as the Secretary of State considers
 
 
appropriate in respect of compliance with relevant obligations by any
 
 
person.
 
 
(1B)
In subsection (1A) , “relevant obligation” means an obligation to provide
 
 
information, or access to information, under section 109BZA or 109BA
15
 
of the Administration Act.”
 
 
(5)
Omit subsection (4).
 
75
Eligibility verification
 
 
(1)
The Social Security Administration Act 1992 is amended in accordance with
 
 
subsections (2) to (4) .
20
 
(2)
In Part 7 (information), before section 121E (and the italic heading before it)
 
 
insert—
 
 
“Eligibility verification
 
121DB
Eligibility verification
 
 
Schedule 3B makes provision about a power for the Secretary of State
25
 
to obtain information for the purposes of assisting in identifying
 
 
incorrect payments of certain benefits.”
 
 
(3)
In section 190(1) (Parliamentary control of orders and regulations), after
 
 
paragraph (ac) (inserted by section 92 (4) of this Act) insert—
 
 
“(ad)
regulations under paragraph 2 (1) (b) or 20 (2) of Schedule 3B ;”.
30
 
(4)
After Schedule 3A insert, as Schedule 3B , the Schedule in Part 1 of Schedule
 
 
3 to this Act.
 
 
(5)
Part 2 of Schedule 3 to this Act makes amendments to the Proceeds of Crime
 
 
Act 2002.
 

Page 44

76
Eligibility verification: independent review
 
 
After section 121DB of the Social Security Administration Act 1992 (inserted
 
 
by section 75 of this Act) insert—
 
“121DC
Independent review
 
 
(1)
The Secretary of State must appoint an independent person to carry
5
 
out reviews of the exercise of the Secretary of State’s functions under
 
 
Schedule 3B (eligibility verification measures).
 
 
(2)
After each review, the independent person must as soon as
 
 
practicable—
 
 
(a)
prepare a report, and
10
 
(b)
submit the report to the Secretary of State.
 
 
(3)
On receiving a report, the Secretary of State must—
 
 
(a)
publish it, and
 
 
(b)
lay a copy before Parliament.
 
 
(4)
The first review must relate to the period of 12 months beginning with
15
 
the day on which section 75 of the Public Authorities (Fraud, Error
 
 
and Recovery) Act 2025 comes fully into force.
 
 
(5)
Subsequent reviews must relate to subsequent periods of 12 months.
 
 
(6)
Each review must consider the extent to which—
 
 
(a)
the Secretary of State’s exercise of powers under Schedule 3B
20
 
has complied with the requirements of the Schedule and any
 
 
code of practice in force under Part 5 of the Schedule during
 
 
the period,
 
 
(b)
the actions taken by persons given an eligibility verification
 
 
notice have complied with the requirements of Schedule 3B ,
25
 
(c)
the exercise of the Secretary of State’s powers under Schedule
 
 
3B has been effective in assisting in identifying incorrect
 
 
payments of relevant benefits during the period covered by
 
 
the review,
 
 
(d)
the costs incurred by the Secretary of State and by those who
30
 
have received eligibility verification notices have been
 
 
reasonable and proportionate,
 
 
(e)
the exercise of the Secretary of State’s powers under Schedule
 
 
3B has had any adverse affect on vulnerable people or on the
 
 
ability of benefit claimants to access banking services, and
35
 
(f)
the independent person has been provided such information
 
 
as they consider necessary to carry out the review.
 
 
(7)
Regulations may confer functions on a person for the purposes of
 
 
securing compliance with subsections (1) to (6) .
 

Page 45

121DD
Independent review: further provision
 
 
(1)
The Secretary of State must disclose information to the independent
 
 
person appointed under section 121DC (1) , or to a person acting on
 
 
behalf of the independent person, where the information is reasonably
 
 
required for the purposes of reviews being carried out under section
5
 
121DC .
 
 
(2)
Subsection (1) does not authorise the disclosure of information that is
 
 
prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the
 
 
Investigatory Powers Act 2016.
 
 
(3)
A disclosure of information under subsection (1) (as read subject to
10
 
subsection (2) ) does not breach—
 
 
(a)
any obligation of confidence owed by the person making the
 
 
disclosure, or
 
 
(b)
any other restriction on the disclosure of information (however
 
 
imposed).”
15

Chapter 2

 

Powers of entry, search and seizure etc

 
77
Entry, search and seizure in England and Wales
 
 
(1)
The Social Security Administration Act 1992 is amended as follows.
 
 
(2)
After section 109C insert—
20
“109D
Powers of entry, search and seizure in England and Wales
 
 
(1)
This section confers functions on and in relation to authorised
 
 
investigators by applying provisions of the Police and Criminal
 
 
Evidence Act 1984 (“the 1984 Act”) with modifications.
 
 
(2)
The functions are exercisable only in relation to premises and items
25
 
in England and Wales.
 
 
(3)
The provisions of the 1984 Act listed in subsection (4) apply in relation
 
 
to investigations of DWP offences conducted by authorised
 
 
investigators as they apply in relation to investigations of offences
 
 
conducted by police officers, subject to the modifications in Schedule
30
 
3ZC .
 
 
(4)
The provisions are—
 
 
(a)
section 8(1) to (5) (power of justice of the peace to authorise
 
 
entry and search of premises);
 
 
(b)
section 9(1) and Schedule 1 (special provisions as to access);
35
 
(c)
section 15 (search warrants: safeguards);
 
 
(d)
section 16 (execution of warrants);
 
 
(e)
section 19 (general power of seizure etc);
 

Page 46

 
(f)
section 20 (extension of powers of seizure to computerised
 
 
information);
 
 
(g)
section 21 (access and copying);
 
 
(h)
section 22 (retention);
 
 
(i)
section 117 (reasonable use of force);
5
 
(j)
sections 10 to 14, 23 and 118 (interpretation provisions), so far
 
 
as necessary for the application of the provisions mentioned
 
 
in paragraphs (a) to (i) .
 
 
(5)
For the purposes of this section and Schedule 3ZC an authorised
 
 
investigator is an individual who is authorised by the Secretary of
10
 
State to exercise the powers conferred by this section.
 
 
(6)
An individual may be so authorised only if the individual is an official
 
 
of a government department and—
 
 
(a)
is a higher executive officer, or
 
 
(b)
has a grade that is equivalent to, or higher than, that of a higher
15
 
executive officer.”
 
 
(3)
After Schedule 3ZB (inserted by section 93 (3) of this Act) insert, as Schedule
 
 
3ZC , the Schedule in paragraph 1 of Schedule 4 to this Act.
 
78
Entry, search and seizure in Scotland
 
 
(1)
The Social Security Administration Act 1992 is amended as follows.
20
 
(2)
After section 109D (inserted by section 77 of this Act) insert—
 
“109E
Powers of entry, search and seizure in Scotland
 
 
Schedule 3ZD confers functions that are exercisable only in relation
 
 
to premises and items in Scotland and that correspond to the functions
 
 
conferred by section 109D in relation to England and Wales.”
25
 
(3)
After Schedule 3ZC (inserted by section 77 (3) of this Act ) insert, as Schedule
 
 
3ZD, the Schedule in paragraph 2 of Schedule 4 to this Act.
 
79
Entry, search and seizure: Crown application
 
 
After section 109E of the Social Security Administration Act 1992 (inserted
 
 
by section 78 of this Act) insert—
30
“109F
Entry, search and seizure: Crown etc application
 
 
(1)
Subject to subsections (2) and (3) , the powers conferred by section
 
 
109D and by Schedule 3ZD , bind the Crown and apply in relation to
 
 
Crown premises as they apply in relation to any other premises.
 
 
(2)
If the Secretary of State certifies that it appears appropriate in the
35
 
interests of national security that powers of entry conferred by this
 
 
Part should not be exercisable in relation to Crown premises specified
 

Page 47

 
in the certificate, those powers are not exercisable in relation to those
 
 
premises.
 
 
(3)
No power of entry conferred by, or by virtue of, the provisions
 
 
mentioned in subsection (1) may be exercised in relation to—
 
 
(a)
land belonging to His Majesty in right of His private estates,
5
 
or
 
 
(b)
premises occupied for the purposes of either House of
 
 
Parliament.
 
 
(4)
In this section—
 
 
(a)
“Crown premises” means premises held, or used by, or on
10
 
behalf of the Crown, and
 
 
(b)
the reference to His Majesty’s private estates is to be read in
 
 
accordance with section 1 of the Crown Private Estates Act
 
 
1862.”
 
80
Offence of delay, obstruction etc
15
 
In the Social Security Administration Act 1992, in section 111 (delay,
 
 
obstruction etc of inspector)—
 
 
(a)
in paragraph (a) of subsection (1), after “officer” insert “, or authorised
 
 
investigator,”, and
 
 
(b)
after subsection (2) insert—
20
 
“(2A)
In subsection (1)(a), “authorised investigator” means an
 
 
individual who is authorised by the Secretary of State to
 
 
exercise the powers conferred by section 109D or Schedule
 
 
3ZD .”
 
81
Disposal of property
25
 
In the Social Security Administration Act 1992, after section 109F (inserted
 
 
by section 79 of this Act) insert—
 
“109G
Disposal of property
 
 
(1)
The appropriate court may, on an application by the Secretary of State
 
 
or a person with an interest in relevant property—
30
 
(a)
order the delivery of the relevant property to the person
 
 
appearing to the court to be its owner, or
 
 
(b)
if its owner cannot be ascertained, make any other order about
 
 
the relevant property.
 
 
(2)
An order under subsection (1) (a) may include provision for the
35
 
Secretary of State to make any changes to the relevant property that
 
 
the court considers necessary for the purpose of avoiding or reducing
 
 
any risk of the relevant property being used in the commission of an
 
 
offence.
 

Page 48

 
(3)
An order under subsection (1) (b) may not provide for the destruction
 
 
or disposal of relevant property until the end of the period of 6 months
 
 
beginning with the day on which the order is made.
 
 
(4)
An order under subsection (1) (b) (“the first order”) does not prevent
 
 
further applications being made for an order under subsection (1) in
5
 
respect of the relevant property to which the first order applies.
 
 
(5)
Where an order is made following a further application—
 
 
(a)
the order may not provide for the destruction or disposal of
 
 
the relevant property before the end of the period of 6 months
 
 
beginning with the day on which the first order was made,
10
 
but
 
 
(b)
the order may otherwise contain such provision as to the timing
 
 
of the destruction or disposal of the relevant property as the
 
 
court thinks fit.
 
 
(6)
In this section—
15
 
“appropriate court” means—
 
 
(a)
in relation to England and Wales, a magistrates’ court,
 
 
and
 
 
(b)
in relation to Scotland, the sheriff;
 
 
“relevant property” means tangible property which has come into
20
 
the possession of the Secretary of State in the course of, or in
 
 
connection with, an investigation into a DWP offence.”
 
82
Amendments to the Criminal Justice and Police Act 2001
 
 
(1)
The Criminal Justice and Police Act 2001 is amended as follows.
 
 
(2)
In section 57 (retention of seized items), in subsection (1), after paragraph (w)
25
 
(inserted by the Football Governance Act 2025) insert—
 
 
“(x)
paragraph 4 (3) of Schedule 3ZD to the Social Security
 
 
Administration Act 1992.”
 
 
(3)
In section 63 (copies), in subsection (2), at the end insert—
 
 
“(j)
paragraph 2 (1)(e) and (f) of Schedule 3ZD to the Social Security
30
 
Administration Act 1992.”
 
 
(4)
In Part 1 of Schedule 1 (powers of seizure to which section 50 of the Act
 
 
applies), after paragraph 56 insert—
 
 
“Social Security Administration Act 1992
 
 
56ZA
The power of seizure conferred by paragraph 2 (1) (d) of Schedule
35
 
3ZD to the Social Security Administration Act 1992.”
 

Page 49

83
Incidents etc in England and Wales
 
 
(1)
Part 2 of the Police Reform Act 2002 (complaints and misconduct) is amended
 
 
as follows.
 
 
(2)
In section 10 (general functions of the Director General of the Independent
 
 
Office for Police Conduct)—
5
 
(a)
in subsection (1), at the end of paragraph (gc) (inserted by section
 
 
9 (2) (a) of this Act) insert “; and
 
 
“(gd)
to carry out such corresponding functions in relation
 
 
to DWP investigators acting in the exercise of functions
 
 
conferred on them by section 109D of the Social Security
10
 
Administration Act 1992 (Police and Criminal Evidence
 
 
Act 1984 powers for DWP investigators).”,
 
 
(b)
in subsection (3), after paragraph (bf) (inserted by section 9 (2) (b) of
 
 
this Act) insert—
 
 
“(bg)
any regulations under section 26H of this Act (DWP
15
 
investigators);”, and
 
 
(c)
after subsection (7A) (inserted by section 9 (2) (c) of this Act insert—
 
 
“(7B)
In this section, “DWP investigators” means authorised
 
 
investigators within the meaning given by section 109D of the
 
 
Social Security Administration Act 1992.”
20
 
(3)
After section 26G (inserted by section 9 of this Act) insert—
 
“26H
DWP investigators
 
 
(1)
The Secretary of State may make regulations conferring functions on
 
 
the Director General in relation to DWP investigators acting in the
 
 
exercise of functions conferred on them by section 109D of the Social
25
 
Security Administration Act 1992 (Police and Criminal Evidence Act
 
 
1984 powers for DWP investigators).
 
 
(2)
Regulations under this section may, in particular—
 
 
(a)
apply (with or without modifications), or make provision
 
 
similar to, any provision of or made under this Part;
30
 
(b)
make provision for payment by the Secretary of State to, or in
 
 
respect of, the Office or in respect of the Director General.
 
 
(3)
The Director General and the Parliamentary Commissioner for
 
 
Administration may jointly investigate a matter in relation to which—
 
 
(a)
the Director General has functions by virtue of this section,
35
 
and
 
 
(b)
the Parliamentary Commissioner for Administration has
 
 
functions by virtue of the Parliamentary Commissioner Act
 
 
1967.
 
 
(4)
The Secretary of State may disclose information to the Director General
40
 
or to a person acting on the Director General’s behalf, for the purposes
 

Page 50

 
of the exercise by the Director General or by any person acting on the
 
 
Director General’s behalf, of a DWP complaints function.
 
 
(5)
The Director General and the Parliamentary Commissioner for
 
 
Administration may disclose information to each other for the purposes
 
 
of the exercise of a function—
5
 
(a)
by virtue of this section, or
 
 
(b)
under the Parliamentary Commissioner Act 1967.
 
 
(6)
Regulations under this section may, in particular, make—
 
 
(a)
further provision about the disclosure of information under
 
 
subsection (4) or (5);
10
 
(b)
provision about the further disclosure of information that has
 
 
been so disclosed.
 
 
(7)
A disclosure of information authorised by or under this section does
 
 
not breach—
 
 
(a)
any obligation of confidence owed by the person making the
15
 
disclosure, or
 
 
(b)
any other restriction on the disclosure of information (however
 
 
imposed).
 
 
(8)
No provision made by or under this section authorises a disclosure
 
 
of information that is prohibited by any of Parts 1 to 7 or Chapter 1
20
 
of Part 9 of the Investigatory Powers Act 2016.
 
 
(9)
In this section—
 
 
“DWP complaints function” means a function in relation to the
 
 
exercise of functions conferred by section 109D of the Social
 
 
Security Administration Act 1992;
25
 
“DWP investigator” means an authorised investigator within the
 
 
meaning given by section 109D of that Act.”
 
84
Incidents etc in Scotland
 
 
(1)
The Police and Fire Reform (Scotland) Act 2012 (Consequential Provisions
 
 
and Modifications) Order 2013 (S.I. 2013/602) is amended as follows.
30
 
(2)
In Article 2 (interpretation), at the appropriate place insert—
 
 
““DWP investigator” means an authorised investigator within the meaning
 
 
given by paragraph 6 of Schedule 3ZD to the Social Security
 
 
Administration Act 1992;”.
 
 
(3)
In Article 3 (agreements to investigate serious incidents), after paragraph 17B
35
 
insert—
 
 
“(17C)
The Commissioner and the Secretary of State may enter into an
 
 
agreement for the Commissioner to investigate and report, where requested
 
 
to do so by the Secretary of State, on any serious incident involving DWP
 
 
investigators acting in the exercise of functions conferred on them by Schedule
40

Page 51

 
3ZD to the Social Security Administration Act 1992 (entry, search and seizure
 
 
powers).
 
 
(17D)
A “serious incident involving DWP investigators” has the same
 
 
meaning as a “serious incident involving the police” in section 41B of the
 
 
2006 Act except that “a person serving with the police” means a DWP
5
 
investigator acting in the exercise of functions conferred on them by Schedule
 
 
3ZD to the Social Security Administration Act 1992.”
 
 
(4)
In Article 4 (investigation of crimes and deaths), after paragraph (i) insert “;
 
 
“(j)
a DWP investigator acting in the exercise of functions conferred on
 
 
them by Schedule 3ZD to the Social Security Administration Act
10
 
1992.”
 

Chapter 3

 

Further provision relevant to investigatory powers

 
85
Devolved benefits
 
 
In the Social Security Administration Act 1992, after section 121D, insert—
15
“121DZA
Devolved Benefits
 
 
(1)
Subject to subsection (3) , powers of the Secretary of State under this
 
 
Part (including powers of an individual who has the Secretary of
 
 
State’s authorisation for the purposes of this Part as mentioned in
 
 
section 109A) are not exercisable in relation to a devolved benefit.
20
 
(2)
A benefit is a devolved benefit if functions under this Part are
 
 
exercisable in relation to the benefit by the Scottish Ministers by virtue
 
 
of section 53 of the Scotland Act 1998, read with section 32 of the
 
 
Scotland Act 2016.
 
 
(3)
The powers referred to in subsection (1) are exercisable in relation to
25
 
a devolved benefit where arrangements made under section 93(1) of
 
 
the Scotland Act 1998 (agency arrangements) have the effect that the
 
 
Secretary of State is to exercise any functions of the Scottish Ministers
 
 
under this Part on behalf of the Scottish Ministers in relation to the
 
 
benefit.”
30
86
DWP offence
 
 
In the Social Security Administration Act 1992, in section 121DA (interpretation
 
 
of Part relating to enforcement), in subsection (5), at the end insert—
 
 
““DWP offence” means—
 
 
(a)
a benefit offence,
35
 
(b)
any other offence relating to a benefit or grant in relation to
 
 
which the Secretary of State with responsibility for social
 

Page 52

 
security exercises functions (whether or not the benefit or grant
 
 
concerns social security),
 
 
(c)
an offence relating to the allocation or use of a national
 
 
insurance number, and
 
 
(d)
any attempt or conspiracy to commit an offence within
5
 
paragraph (b) or (c) .”
 
87
Disclosure of information etc: interaction with external constraints
 
 
In Part 6 of the Social Security Administration Act 1992 (enforcement), after
 
 
section 109G (inserted by section 81 of this Act) insert—
 
“109H
Disclosure of information etc: interaction with external constraints
10
 
(1)
This section applies in relation to any provision for the disclosure or
 
 
obtaining of information made by or under this Part so far as the
 
 
provision applies in connection with the exercise of powers by or on
 
 
behalf of the Secretary of State.
 
 
(2)
The provision does not require or authorise any disclosure of
15
 
information that is prohibited by any of Parts 1 to 7 or Chapter 1 of
 
 
Part 9 of the Investigatory Powers Act 2016.
 
 
(3)
The disclosure of information in accordance with the provision (as
 
 
read subject to subsection (2) ) does not breach—
 
 
(a)
any obligation of confidence owed by the person making the
20
 
disclosure, or
 
 
(b)
any other restriction on the disclosure of information (however
 
 
imposed).
 
 
(4)
The provision does not require or authorise the disclosure or obtaining
 
 
of information in respect of which a claim to legal professional
25
 
privilege could be maintained in legal proceedings without the
 
 
agreement of the person entitled to maintain that claim.
 
 
(5)
In the application of subsection (4) in Scotland, the reference to legal
 
 
professional privilege is to be read as a reference to confidentiality of
 
 
communications.
30
 
(6)
A person may not be required under the provision to give information
 
 
which tends to incriminate the person or the person’s spouse or civil
 
 
partner.
 
 
(7)
A person who provides services free of charge in relation to social
 
 
security, housing (including services that involve the provision of
35
 
accommodation) or debt, may not be required under the provision to
 
 
give personal data about persons receiving such a service free of
 
 
charge.
 
 
(8)
The provision does not require or authorise the disclosure of—
 
 
(a)
journalistic material, or
40

Page 53

 
(b)
excluded material,
 
 
within the meanings of the Police and Criminal Evidence Act 1984
 
 
(see sections 11 to 13 of that Act).
 
 
(9)
But subsections (5) to (9) do not apply in relation to—
 
 
(a)
the provisions of the Police and Criminal Evidence Act 1984
5
 
as applied by section 109D, and
 
 
(b)
Schedule 3ZD.
 
 
(10)
In this section “personal data” has the same meaning as in the Data
 
 
Protection Act 2018 (see section 3(2) of that Act).”
 
88
Giving notices etc
10
 
In the Social Security Administration Act 1992, in section 121DA (interpretation
 
 
of Part relating to enforcement), after subsection (7) insert—
 
 
“(8)
In this Part, references to giving a notice or other document (however
 
 
expressed) include sending the notice or document by post.”
 
89
Independent review
15
 
In the Social Security Administration Act 1992, after section 109H (inserted
 
 
by section 87 of this Act) insert—
 
“109I
Independent review
 
 
(1)
The Secretary of State must appoint an independent person to carry
 
 
out reviews of the exercise of functions under sections 109A to 109H
20
 
and Schedule 3ZD (“investigative functions”) by or on behalf of the
 
 
Secretary of State.
 
 
(2)
After each review, the independent person must as soon as
 
 
practicable—
 
 
(a)
prepare a report on the review, and
25
 
(b)
submit the report to the Secretary of State.
 
 
(3)
On receiving a report, the Secretary of State must—
 
 
(a)
publish it, and
 
 
(b)
lay a copy before Parliament.
 
 
(4)
Each review must consider the extent to which —
30
 
(a)
investigative functions have been exercised in compliance with
 
 
the requirements of provisions mentioned in subsection (1)
 
 
, relevant codes of practice and relevant guidance, and
 
 
(b)
the exercise of those functions has been effective in meeting
 
 
the purposes set out in section 109A(2).
35
 
(5)
Each report must contain any recommendations which the independent
 
 
person considers appropriate in light of the review to which it relates.
 

Page 54

 
(6)
In subsection (4) (a) , “relevant codes of practice” and “relevant
 
 
guidance” mean codes of practice and guidance to which the Secretary
 
 
of State must have regard in exercising investigative functions.
 
109J
Independent review: further provision
 
 
(1)
The Secretary of State may give the independent person appointed
5
 
under section 109I (1) directions as to the period to be covered by each
 
 
review under section 109I .
 
 
(2)
The Secretary of State must consult the independent person before
 
 
giving a direction under subsection (1) .
 
 
(3)
The Secretary of State may disclose information to the independent
10
 
person, or to a person acting on behalf of the independent person, for
 
 
the purposes of reviews being carried out under section 109I .
 
 
(4)
Regulations may confer functions on a person for the purposes of
 
 
securing compliance with section 109I .
 
 
(5)
The Secretary of State may comply with the duty in section 109I (1) by
15
 
appointing different independent persons to carry out reviews in
 
 
relation to the exercise of investigative functions—
 
 
(a)
in England and Wales, and
 
 
(b)
in Scotland.”
 

Chapter 4

20

Overpayments: recovery and enforcement

 
90
Enforcement of non-benefit payments
 
 
In the Social Security Administration Act 1992, after section 71ZH insert—
 
 
“Recovery of non-benefit payments
 
71ZI
Overpayment of non-benefit payments: overview and recovery
25
 
(1)
For the purposes of this section and sections 71ZJ and 71ZK , an
 
 
overpayment of a non-benefit payment occurs where—
 
 
(a)
a person (“P”) misrepresents, or fails to disclose, a material
 
 
fact, and
 
 
(b)
in consequence of the misrepresentation or failure, P or another
30
 
person receives a non-benefit payment, or an amount of a
 
 
non-benefit payment, (whether directly or indirectly) that they
 
 
would not otherwise have received,
 
 
and the “overpayment” is that payment or amount.
 
 
(2)
The overpayment is recoverable from P as if it were an amount
35
 
recoverable under section 71(1) if, in relation to the misrepresentation
 
 
or failure to disclose, P—
 

Page 55

 
(a)
is convicted of an offence (under this Act or any other
 
 
enactment), or
 
 
(b)
agrees to pay a penalty under section 115A.
 
 
(3)
But subsection (2) is subject to section 71ZJ .
 
 
(4)
The right to recover an overpayment under this section does not affect
5
 
any other right that the Secretary of State may have to recover the
 
 
overpayment (or any other amount in relation to the non-benefit
 
 
payment).
 
 
(5)
In this section and sections 71ZJ and 71ZK , “non-benefit payment”
 
 
has the meaning given by section 121DA(5).
10
 
71ZJ
Overpayment of non-benefit payments: overpayment decision and
 
 
notice
 
 
(1)
Before exercising powers under this Act to recover an overpayment
 
 
of a non-benefit payment from a person (“P”)—
 
 
(a)
the Secretary of State must give a notice (an “overpayment
15
 
notice”) to P, and
 
 
(b)
the condition in subsection (5) must be met (opportunity for
 
 
P to challenge the notice).
 
 
(2)
The Secretary of State may give P an overpayment notice only if—
 
 
(a)
P has been convicted of an offence (under this Act or any other
20
 
enactment), or
 
 
(b)
it appears to the Secretary of State that there are grounds to
 
 
institute proceedings against P for an offence (under this Act
 
 
or any other enactment),
 
 
in relation to the overpayment.
25
 
(3)
An overpayment notice must—
 
 
(a)
state the amount that the Secretary of State regards as an
 
 
overpayment,
 
 
(b)
provide the Secretary of State’s reasons for regarding that
 
 
amount as an overpayment,
30
 
(c)
set out the effect of the giving of the overpayment notice, and
 
 
(d)
set out P’s right to seek a review of the notice and the right to
 
 
appeal the outcome of that review (see section 71ZK ).
 
 
(4)
In subsection (3) (c) , the reference to the effect of the giving of the
 
 
overpayment notice is a reference to the Secretary of State’s powers
35
 
to—
 
 
(a)
invite P to agree to a penalty under section 115A in relation
 
 
to the overpayment;
 
 
(b)
recover the overpayment (if P agrees to pay such a penalty, or
 
 
is convicted of an offence, in relation to the overpayment).
40

Page 56

 
(5)
The condition in this subsection is met where—
 
 
(a)
the time for P to seek a review of the overpayment notice has
 
 
passed without P seeking a review, or
 
 
(b)
if P sought a review of the notice within the time allowed, the
 
 
review has taken place and—
5
 
(i)
the period mentioned in section 71ZK (6) (a) for P to
 
 
appeal against the outcome of the review has passed
 
 
without P bringing an appeal, or
 
 
(ii)
P’s appeal (including any onward appeal) against the
 
 
outcome of the review has been withdrawn, abandoned
10
 
or finally determined.
 
71ZK
Overpayment of non-benefit payments: reviews and appeals
 
 
(1)
A person (“P”) given an overpayment notice under section 71ZJ may
 
 
apply to the Secretary of State for a review of the notice on the
 
 
following grounds—
15
 
(a)
that there has been no overpayment of a non-benefit payment,
 
 
or
 
 
(b)
that the amount stated in the notice is not correct.
 
 
(2)
An application under subsection (1) must be made before the end of
 
 
the period of 1 month beginning with the day after the day on which
20
 
P was given the notice.
 
 
(3)
On a review, the Secretary of State may—
 
 
(a)
uphold the notice,
 
 
(b)
amend the notice, or
 
 
(c)
revoke the notice.
25
 
(4)
The Secretary of State must notify P of the outcome of the review.
 
 
(5)
Where an overpayment notice is upheld or varied on a review, P may
 
 
appeal to the First-tier Tribunal against the notice on the following
 
 
grounds—
 
 
(a)
that there has been no overpayment, or
30
 
(b)
that the amount stated in the notice is not correct.
 
 
(6)
An appeal under subsection (5) may not be brought after the end of—
 
 
(a)
the period of 1 month beginning with the day after the day on
 
 
which P is notified of the outcome of the review, or
 
 
(b)
such longer period (if any) as the Tribunal considers reasonable
35
 
in all the circumstances.
 
 
(7)
The First-tier Tribunal may—
 
 
(a)
uphold the notice,
 
 
(b)
vary the notice, or
 
 
(c)
revoke the notice.”
40

Page 57

91
Recovery and enforcement mechanisms
 
 
(1)
The Social Security Administration Act 1992 is amended as follows.
 
 
(2)
In Part 3, after section 80 insert—
 
 
“Further provision about recovery
 
80A
Further methods of recovery
5
 
(1)
This section applies in relation to—
 
 
(a)
section 80B (restrictions on use of further methods),
 
 
(b)
section 80C (and Schedule 3ZA ) (recovery from a person’s bank
 
 
accounts etc), and
 
 
(c)
section 80D (and Schedule 3ZB ) (disqualification from driving).
10
 
(2)
References to a recoverable amount are to—
 
 
(a)
an amount which is recoverable by virtue of any provision of
 
 
sections 71 to 78, and
 
 
(b)
a penalty which is payable by virtue of any provision of
 
 
sections 115A to 115D,
15
 
other than an amount or a penalty relating to a devolved benefit.
 
 
(3)
For the purposes of this Part, a benefit is a devolved benefit if functions
 
 
under this Part are exercisable in relation to the benefit by the Scottish
 
 
Ministers by virtue of section 53 of the Scotland Act 1998, read with
 
 
section 32 of the Scotland Act 2016.
20
 
(4)
References to a “liable person” are to a person liable to pay a
 
 
recoverable amount.
 
 
(5)
Nothing in Schedule 3ZA or Schedule 3ZB affects any other method
 
 
of recovery or enforcement that is available in relation to a recoverable
 
 
amount.
25
80B
Restrictions relating to further methods
 
 
(1)
The Secretary of State may not exercise a power under Schedule 3ZA
 
 
or Schedule 3ZB for the purpose of recovering an amount from a liable
 
 
person unless the Secretary of State has—
 
 
(a)
given the liable person a reasonable opportunity to settle their
30
 
liability in respect of the amount,
 
 
(b)
notified the liable person that the Secretary of State may
 
 
exercise the power for the purpose of recovering the amount
 
 
if the liable person does not settle their liability in respect of
 
 
the amount, and
35
 
(c)
given the liable person a summary of how the power would
 
 
be exercised.
 
 
(2)
The Secretary of State may not—
 

Page 58

 
(a)
make a direct deduction order under Schedule 3ZA ,
 
 
(b)
re-start a requirement to make deductions and payments that
 
 
has been suspended under paragraph 16 of Schedule 3ZA , or
 
 
(c)
apply for a suspended or immediate DWP disqualification
 
 
order under Schedule 3ZB ,
5
 
in respect of a liable person if subsection (3) or (4) applies.
 
 
(3)
This subsection applies if it is reasonably possible to recover the
 
 
amount from the liable person by way of deductions from earnings.
 
 
(4)
This subsection applies if the liable person is entitled to and in receipt
 
 
of a relevant benefit.
10
 
(5)
The Secretary of State may not exercise the powers under Schedule
 
 
3ZB for the purpose of recovering an amount from a liable person
 
 
unless satisfied that it is not reasonably possible to recover the amount
 
 
by way of a direct deduction order under Schedule 3ZA .
 
 
(6)
Subsections (7) and (8) apply where a liable person becomes entitled
15
 
to and in receipt of a relevant benefit at a time when—
 
 
(a)
a direct deduction order under Schedule 3ZA , or
 
 
(b)
an immediate DWP disqualification order under Schedule 3ZB ,
 
 
has effect in relation to the liable person.
 
 
(7)
In a case within subsection (6) (a) , the Secretary of State must revoke
20
 
or suspend the direct deduction order.
 
 
(8)
In a case within subsection (6) (b) —
 
 
(a)
the Secretary of State must notify the court that made the
 
 
immediate DWP disqualification order that the person to whom
 
 
the order relates has become entitled to and in receipt of a
25
 
relevant benefit, and
 
 
(b)
a court officer must make an order (without a hearing) revoking
 
 
the immediate DWP disqualification order.
 
 
(9)
In this section—
 
 
“court officer” means a member of the staff of the court in
30
 
question authorised by the court for the purposes of subsection
 
 
(8) (b) ;
 
 
“deductions from earnings” means deductions from earnings
 
 
under, or by virtue of, section 71 or 71ZD;
 
 
“relevant benefit” means a benefit that is—
35
 
(a)
administered by the Secretary of State with
 
 
responsibility for social security, and
 
 
(b)
recoverable under section 71 or 71ZB.”
 
 
(3)
In section 111 (delay, obstruction etc of inspector), in subsection (1)(b), after
 
 
“otherwise than” insert “under Schedule 3ZA , Schedule 3B or”.
40

Page 59

 
(4)
In section 191 (interpretation), at the appropriate places insert the following
 
 
definitions—
 
 
““ “direct deduction order” has the meaning given by paragraph 1 of
 
 
Schedule 3ZA ;”;
 
 
“ “immediate DWP disqualification order” has the meaning given by
5
 
paragraph 2 (2) of Schedule 3ZB ;”;
 
 
“ “lump sum direct deduction order” has the meaning given by paragraph
 
 
1 (5) of Schedule 3ZA ;”;
 
 
“ “regular direct deduction order” has the meaning given by paragraph
 
 
1 (4) of Schedule 3ZA ;”;
10
 
““suspended DWP disqualification order” has the meaning given by
 
 
paragraph 1 (3) of Schedule 3ZB ;””.
 
92
Recovery from bank accounts etc
 
 
(1)
The Social Security Administration Act 1992 is amended as follows.
 
 
(2)
After section 80B (inserted by section 91 of this Act) insert—
15
“80C
Recovery from bank accounts
 
 
Schedule 3ZA (recovery from bank accounts) makes provision for a
 
 
recoverable amount to be recoverable directly from a person’s bank
 
 
account.”
 
 
(3)
After Schedule 3 insert, as Schedule 3ZA , the Schedule in Schedule 5 to this
20
 
Act.
 
 
(4)
In section 190 (Parliamentary control of orders and regulations), in subsection
 
 
(1), after paragraph (ab) insert—
 
 
“(ac)
regulations making provision in reliance on paragraph 25 (3)
 
 
of Schedule 3ZA ; or”.
25
93
Disqualification from driving
 
 
(1)
The Social Security Administration Act 1992 is amended in accordance with
 
 
subsections (2) and (3) .
 
 
(2)
After section 80C (inserted by section 92 (2) of this Act) insert—
 
“80D
Disqualification from driving
30
 
Schedule 3ZB makes provision for a liable person to be disqualified
 
 
from driving while some or all of a recoverable amount remains
 
 
unrecovered.”
 
 
(3)
After Schedule 3ZA (inserted by section 92 (3) of this Act) insert, as Schedule
 
 
3ZB , the Schedule in Schedule 6 to this Act.
35
 
(4)
The Road Traffic Offenders Act 1988 is amended in accordance with
 
 
subsections (5) to (7) .
 

Page 60

 
(5)
In section 27 (production of licence), in subsection (3), after “Child Support
 
 
Act 1991” insert “or paragraph 5 of Schedule 3ZB to the Social Security
 
 
Administration Act 1992”.
 
 
(6)
In section 37 (effect of order of disqualification), in subsection (1A), at the
 
 
end of paragraph (a)—
5
 
(a)
omit the “or”, and
 
 
(b)
insert—
 
 
“(aa)
the disqualification is for a period shorter than 56 days
 
 
under paragraph 2 of Schedule 3ZB to the Social
 
 
Security Administration Act 1992, or”.
10
 
(7)
In section 42 (removal of disqualification), in subsection (6), after “Act” insert
 
 
“or under paragraph 2 of Schedule 3ZB to the Social Security Administration
 
 
Act 1992”.
 
 
(8)
In the Road Traffic Act 1988, in section 164 (power of constables to require
 
 
production of driving licence etc), in subsection (5), after “required under”
15
 
insert “ paragraph 5 of Schedule 3ZB to the Social Security Administration
 
 
Act 1992,”.
 
94
Code of practice
 
 
In the Social Security Administration Act 1992, after section 80D (inserted by
 
 
section 93 of this Act) insert—
20
“80E
Code of practice
 
 
(1)
The Secretary of State must issue a code of practice about the exercise
 
 
of the Secretary of State’s functions under Schedule 3ZA and Schedule
 
 
3ZB .
 
 
(2)
The code of practice must include provision about—
25
 
(a)
the giving of notices to banks requiring the provision of
 
 
information under Schedule 3ZA ;
 
 
(b)
the processing (within the meaning of section 3(4) of the Data
 
 
Protection Act 2018) of information received in response;
 
 
(c)
the circumstances in which penalties may be issued to banks;
30
 
(d)
the circumstances in which the Secretary of State expects to
 
 
exercise functions under Schedule 3ZB .
 
 
(3)
Before issuing the code of practice for the first time, the Secretary of
 
 
State must carry out a public consultation on a draft of the code.
 
 
(4)
The requirement in subsection (3) may be satisfied by public
35
 
consultation carried out before this section comes into force.
 
 
(5)
The Secretary of State may from time to time revise and re-issue the
 
 
code of practice.
 

Page 61

 
(6)
The Secretary of State must lay the code of practice, or any reissued
 
 
code of practice, before Parliament.”
 
95
Rights of audience
 
 
In the Social Security Administration Act 1992, after section 80E (inserted by
 
 
section 94 of this Act) insert—
5
“80F
Rights of audience
 
 
(1)
An officer of the Secretary of State who is authorised by the Secretary
 
 
of State for the purposes of this section has a right of audience and
 
 
the right to conduct litigation in relation to proceedings for or in
 
 
connection with the recovery of overpayments under a provision of
10
 
this Part before—
 
 
(a)
a magistrates’ court,
 
 
(b)
the county court, and
 
 
(c)
the Crown Court.
 
 
(2)
In this section, “right of audience” and “right to conduct litigation”
15
 
have the same meanings as in section 119 of the Courts and Legal
 
 
Services Act 1990.”
 
96
Recovery of costs
 
 
(1)
The Social Security Administration Act 1992 is amended as follows.
 
 
(2)
In section 71ZE, omit subsection (3).
20
 
(3)
After section 80F (inserted by section 95 of this Act) insert—
 
“80G
Recovery of costs
 
 
Any costs which the Secretary of State reasonably incurs in recovering
 
 
an amount that is recoverable under any provision of sections 71 to
 
 
80, Schedule 3ZA or Schedule 3ZB may be recovered by the Secretary
25
 
of State as if they were amounts recoverable under that provision.”
 
97
Recovery: further provision
 
 
In the Social Security Administration Act 1992, after section 80G (inserted by
 
 
section 96 of this Act) insert—
 
“80H
Recovery: further provision
30
 
(1)
Subsection (2) applies in relation to any provision for the disclosure
 
 
or obtaining of information made by or under this Part.
 
 
(2)
The provision does not require or authorise any disclosure of
 
 
information that is prohibited by any of Parts 1 to 7 or Chapter 1 of
 
 
Part 9 to the Investigatory Powers Act 2016.
35

Page 62

 
(3)
The disclosure of information in accordance with the provision (as
 
 
read subject to subsection (2) ) does not breach—
 
 
(a)
any obligation of confidence owed by the person making the
 
 
disclosure, or
 
 
(b)
any other restriction on the disclosure of information (however
5
 
imposed).
 
 
(4)
In this Part, references to giving a notice or other document (however
 
 
expressed) include sending the notice or document by post.”
 

Chapter 5

 

Offences, penalties etc

10
98
Offences: non-benefit payments
 
 
(1)
The Social Security Administration Act 1992 is amended as follows.
 
 
(2)
In section 111A (dishonest representations for obtaining benefit etc)—
 
 
(a)
in subsection (1), in the words after paragraph (b), after “legislation”
 
 
insert “or a non-benefit payment”;
15
 
(b)
after subsection (1G) insert—
 
 
“(1H)
For the purposes of subsections (1A) to (1G), references to—
 
 
(a)
a person being entitled to, or having a right to receive,
 
 
a payment under a provision of the relevant social
 
 
security legislation include references to a person being
20
 
entitled to, or having a right to receive, or qualifying
 
 
for, a non-benefit payment, and
 
 
(b)
a person’s entitlement to a payment under a provision
 
 
of the relevant social security legislation include
 
 
references to a person’s entitlement to, or qualification
25
 
for, a non-benefit payment.”
 
 
(3)
In section 112 (false representations for obtaining benefit etc)—
 
 
(a)
after subsection (1) insert—
 
 
“(1ZA)
A person is guilty of an offence if, for the purpose of obtaining
 
 
a non-benefit payment for themselves or another person, they—
30
 
(a)
make a statement or representation which they know
 
 
to be false, or
 
 
(b)
produce or furnish, or knowingly cause or knowingly
 
 
allow to be produced or furnished, any document or
 
 
information which they know to be false in a material
35
 
particular.”;
 
 
(b)
after subsection (1F) insert—
 
 
“(1G)
For the purposes of subsections (1A) to (1F), references to—
 
 
(a)
a person being entitled to, or having a right to receive,
 
 
a payment under a provision of the relevant social
40

Page 63

 
security legislation include references to a person being
 
 
entitled to, or having a right to receive, or qualifying
 
 
for, a non-benefit payment, and
 
 
(b)
a person’s entitlement to a payment under a provision
 
 
of the relevant social security legislation include
5
 
references to a person’s entitlement to, or qualification
 
 
for, a non-benefit payment.”
 
 
(4)
In section 121DA(5) (interpretation of Part 6), at the appropriate place insert—
 
 
““non-benefit payment” means a prescribed payment which—
 
 
(a)
is not a payment of a relevant social security benefit, and
10
 
(b)
is made by the Secretary of State with responsibility for social
 
 
security for the purposes of providing financial assistance to
 
 
a person, whether directly or indirectly.”
 
99
Penalty as alternative to prosecution: extension to non-benefit payments
 
 
(1)
Section 115A of the Social Security Administration Act 1992 (penalty as
15
 
alternative to prosecution) is amended in accordance with subsections (2) to
 
 
(6) .
 
 
(2)
After subsection (1A) insert—
 
 
“(1B)
This section also applies where—
 
 
(a)
an overpayment notice has been given to a person (“P”) under
20
 
section 71ZJ (overpayment notice in relation to non-benefit
 
 
payment), and
 
 
(b)
in relation to the overpayment notice, the condition in
 
 
subsection (1C) is met.
 
 
(1C)
The condition in this subsection is met where—
25
 
(a)
the time for P to seek a review of the overpayment notice under
 
 
section 71ZK has passed without P seeking a review, or
 
 
(b)
if P sought a review of the notice within the time allowed, the
 
 
review has taken place, and—
 
 
(i)
the period mentioned in section 71ZK (6) (a) for P to
30
 
appeal against the outcome of the review has passed
 
 
without P bringing an appeal, or
 
 
(ii)
P’s appeal (including any onward appeal) against the
 
 
outcome of the review has been withdrawn, abandoned
 
 
or finally determined.”
35
 
(3)
In subsection (2)(a), after “above” insert “, or in relation to the overpayment
 
 
notice referred to in subsection (1B),”.
 
 
(4)
In subsection (3), after “(1)” insert “or (1B)”.
 
 
(5)
In subsection (8), in the words before paragraph (a), after “section” insert “,
 
 
except in relation to a case referred to in subsection (1B),”.
40

Page 64

 
(6)
After subsection (8) insert—
 
 
“(8A)
In relation to a case referred to in subsection (1B), “overpayment” has
 
 
the meaning given in section 71ZI (1) .”
 
 
(7)
In section 115B of the Social Security Administration Act 1992 (penalty as
 
 
alternative to prosecution: colluding employers etc), in subsection (2)(b), after
5
 
“benefit offence” insert “or an offence in relation to an overpayment of a
 
 
non-benefit payment”.
 
 
100
Amendments to the Social Security Fraud Act 2001: loss of benefits following
 

penalty

 
 
(1)
The Social Security Fraud Act 2001 is amended as follows.
10
 
(2)
In section 6B(2) (loss of benefits in case of conviction, penalty or caution for
 
 
benefit offence)—
 
 
(a)
in paragraph (a)—
 
 
(i)
omit the words from “section 115A” to “or”, and
 
 
(ii)
for the words “the corresponding provision for Northern
15
 
Ireland” substitute “penalty as alternative to prosecution in
 
 
Northern Ireland”, and
 
 
(b)
omit sub-paragraph (i) of paragraph (b).
 
 
(3)
In section 6C (section 6B: supplementary provision)—
 
 
(a)
in subsection (2)(b) omit the words “the Social Security Act 1998 or”,
20
 
and
 
 
(b)
in subsection (3) omit the words “the Social Security Act 1998 or”.
 
101
Powers of Scottish Ministers
 
 
(1)
The following provisions of this Act have effect as if they were
 
 
pre-commencement enactments for the purposes of section 53 of the Scotland
25
 
Act 1998, read with section 32 of the Scotland Act 2016—
 
 
(a)
sections 73 and 74 ;
 
 
(b)
section 96 , so far as relating to an amount that is recoverable by the
 
 
Scottish Ministers under Part 3 of the Social Security Administration
 
 
Act 1992;
30
 
(c)
section 97 .
 
 
(2)
Accordingly, an individual who for the time being has the Scottish Ministers’
 
 
authorisation for the purposes of Part 6 of the Social Security Administration
 
 
Act 1992, in accordance with section 109A of that Act as amended by section
 
 
73 of this Act, has the functions conferred by sections 109B to 109C of that
35
 
Act, as amended or, in the case of section 109BZA, as inserted, by section 73
 
 
of this Act.
 

Page 65

Part 3

 

General

 
102
Application and limitation
 
 
(1)
Subject to subsection (2) , any function conferred by a provision of this Act
 
 
(including by way of amendments to another enactment) is exercisable—
5
 
(a)
so far as the function relates to investigations or enforcement, in respect
 
 
of things done or not done before the provision comes into force, and
 
 
(b)
so far as the function relates to the recovery of money, for the purposes
 
 
of recovering money which a public authority (whether or not the
 
 
public authority on which the function is conferred) was entitled to
10
 
recover before the provision comes into force.
 
 
(2)
Subsection (1) (a) does not apply in relation to the amendments made by—
 
 
(a)
section 98 (offences: non-benefit payments), and
 
 
(b)
section 99 (penalty as alternative to prosecution: extension to
 
 
non-benefit payments).
15
 
(3)
Subsection (4) applies in relation to an action—
 
 
(a)
for an amount that a relevant public authority is entitled to claim from
 
 
a person as a result of fraud which the person carried out, before the
 
 
day on which this section comes into force, in connection with
 
 
coronavirus, and
20
 
(b)
in relation to which a limitation period of less than 12 years from the
 
 
date on which the cause of action accrues would otherwise have
 
 
applied.
 
 
(4)
The time limit for bringing the action is 12 years beginning with the day on
 
 
which the relevant public authority discovers the fraud or could with
25
 
reasonable diligence discover it (whether that day is before, on or after the
 
 
day on which this section comes into force).
 
 
(5)
For the purposes of subsections (3) and (4) —
 
 
(a)
a “relevant public authority” is a person who—
 
 
(i)
exercises functions of a public nature, and
30
 
(ii)
is not a devolved Scottish authority;
 
 
(b)
an authority is a “devolved Scottish authority” if its functions—
 
 
(i)
are exercisable only in or as regards Scotland, and
 
 
(ii)
are wholly or mainly functions that do not relate to reserved
 
 
matters within the meaning of the Scotland Act 1998.
35
 
(6)
For the purposes of subsection (3) , “coronavirus” has the meaning given by
 
 
section 1(1) of the Coronavirus Act 2020.
 
 
(7)
In the Limitation Act 1980, in section 38 (interpretation), in subsection (11)—
 
 
(a)
in paragraph (a), after “1992,” insert “including as amended by the
 
 
Public Authorities (Fraud, Error and Recovery) Act 2025,”,
40

Page 66

 
(b)
omit “or” at the end of paragraph (b), and
 
 
(c)
at the end of paragraph (c) insert “, or
 
 
“(d)
Part 1 of the Public Authorities (Fraud, Error and
 
 
Recovery) Act 2025,”.
 
 
(8)
In the Prescription and Limitation (Scotland) Act 1973, in Schedule 1
5
 
(obligations affected by prescriptive periods of 5 years under section 6), in
 
 
paragraph 2(fb)(i), at the end insert “, including as amended by the Public
 
 
Authorities (Fraud, Error and Recovery) Act 2025”.
 
103
Power to make consequential provision
 
 
(1)
The Secretary of State or the Minister may by regulations make provision
10
 
that is consequential on this Act.
 
 
(2)
Regulations under this section may amend, repeal or revoke provision made
 
 
by or under an Act passed—
 
 
(a)
before this Act, or
 
 
(b)
later in the same session of Parliament as this Act.
15
 
(3)
Regulations under this section are to be made by statutory instrument.
 
 
(4)
A statutory instrument containing regulations under this section that amend
 
 
or repeal provision made by an Act (whether alone or with other provisions)
 
 
may not be made unless a draft of the statutory instrument has been laid
 
 
before, and approved by a resolution of, each House of Parliament.
20
 
(5)
Any other statutory instrument containing regulations under this section is
 
 
subject to annulment in pursuance of a resolution of either House of
 
 
Parliament.
 
104
Financial provision
 
 
There is to be paid out of money provided by Parliament—
25
 
(a)
any expenditure incurred under, or by virtue of, this Act by a Minister
 
 
of the Crown, a person holding office under His Majesty or a
 
 
government department, and
 
 
(b)
any increase attributable to this Act in the sums payable under or by
 
 
virtue of any other Act out of money so provided.
30
105
Extent
 
 
(1)
This Act extends to England and Wales and Scotland, subject as follows.
 
 
(2)
Part 1 of this Act extends to England and Wales only.
 
 
(3)
Any amendment, repeal or revocation made by this Act has the same extent
 
 
as the provision amended, repealed or revoked.
35

Page 67

106
Commencement
 
 
(1)
Except as provided by subsection (2) , this Act comes into force on such day
 
 
as the Secretary of State or the Minister for the Cabinet Office may by
 
 
regulations appoint.
 
 
(2)
The following provisions come into force on the day on which this Act is
5
 
passed—
 
 
(a)
this Part, and
 
 
(b)
any other provision of this Act so far as it confers power to make
 
 
regulations or is otherwise necessary for enabling the exercise of such
 
 
a power on or after the day on which this Act is passed.
10
 
(3)
Different days may be appointed under subsection (1) for different purposes
 
 
or different areas.
 
 
(4)
The Secretary of State or the Minister for the Cabinet Office may by regulations
 
 
make transitional or saving provision in connection with the coming into
 
 
force of any provision of this Act.
15
 
(5)
The power to make regulations under subsection (4) includes power to make
 
 
different provision for different purposes.
 
 
(6)
Regulations under this section are to be made by statutory instrument.
 
107
Short title
 
 
This Act may be cited as the Public Authorities (Fraud, Error and Recovery)
20
 
Act 2025.
 

Page 68

Schedules

 
 
Schedule 1
Section 7
 

Fraud against public authorities: Police and Criminal Evidence Act 1984

 

powers

 

Introduction

5
 
1
This Schedule contains modifications of the provisions of the Police and
 
 
Criminal Evidence Act 1984 mentioned in section 7 (2) for the purposes of
 
 
their application to authorised investigators in accordance with section 7 (1) .
 

General modifications

 
 
2
(1)
Each reference to a constable (however expressed) is to be read as including
10
 
a reference to an authorised investigator.
 
 
(2)
Each reference to an offence is to be read as a reference to an offence of
 
 
fraud against a public authority, except for the reference to an offence in
 
 
section 21(8)(b).
 
 
(3)
Each reference to a criminal investigation is to be read as a reference to a
15
 
criminal investigation in connection with an offence of fraud against a
 
 
public authority.
 

Specific modifications

 
 
3
(1)
Section 15 (search warrants: safeguards) is to be read as if—
 
 
(a)
in subsection (2)(c), for “articles or persons” there were substituted
20
 
“material”;
 
 
(b)
in subsection (6)(b), for “articles or persons” there were substituted
 
 
“material”.
 
 
(2)
Section 16 (execution of warrants) is to be read as if—
 
 
(a)
in subsections (3A) and (3B), for the words “a police officer of at
25
 
least the rank of inspector”, in each case, there were substituted “an
 
 
authorised investigator of at least the grade of senior executive
 
 
officer”;
 
 
(b)
after subsection (3B) there were inserted—
 
 
“(3C)
In subsections (3A) and (3B), the references to an authorised
30
 
investigator of at least the grade of senior executive officer
 
 
include—
 
 
(a)
an authorised investigator who has a grade that is
 
 
equivalent to that of a senior executive officer, and
 
 
(b)
an authorised investigator who is a higher executive
35
 
officer, or has a grade equivalent to that of a higher
 
 
executive officer, who has been authorised in writing
 

Page 69

 
for the purposes of those subsections by an authorised
 
 
investigator who is a grade 7 or has a grade that is
 
 
equivalent to, or higher than, that of a grade 7.”;
 
 
(c)
in subsection (5)(a), the words “, if not in uniform,” were omitted;
 
 
(d)
in subsection (9)(a), for “articles or persons sought were” there were
5
 
substituted “material sought was”.
 
 
(3)
Section 21 (access and copying) is to be read as if in subsection (3)(b), the
 
 
reference to the police were a reference to an authorised investigator.
 
 
(4)
Section 22 (retention) is to be read as if—
 
 
(a)
for subsection (1), there were substituted—
10
 
“(1)
Subject to subsection (4), anything which has been—
 
 
(a)
seized by an authorised investigator,
 
 
(b)
taken away by an authorised investigator following
 
 
a requirement made by virtue of section 19 or 20, or
 
 
(c)
seized or taken away by another person under any
15
 
enactment and accepted by an authorised investigator,
 
 
may be retained so long as is necessary in all the
 
 
circumstances.”;
 
 
(b)
after subsection (2) there were inserted—
 
 
“(2A)
Subsection (2B) applies where an authorised investigator—
20
 
(a)
has seized something or taken something away
 
 
following a requirement made by virtue of section
 
 
19 or 20 on the basis that it is evidence of an offence,
 
 
and
 
 
(b)
considers that the thing may be evidence that is
25
 
relevant to an investigation of an offence (whether
 
 
or not the offence mentioned in paragraph (a) ) in
 
 
relation to which another person has functions.
 
 
(2B)
Where this subsection applies—
 
 
(a)
an authorised investigator may transfer the thing to
30
 
that person,
 
 
(b)
where that person considers that the thing may be
 
 
evidence that is relevant to an investigation in relation
 
 
to which that person has functions, that person may
 
 
accept and retain the thing, and
35
 
(c)
any provision of an enactment that applies to
 
 
anything seized or taken away by that person applies
 
 
to the thing as if it had been seized or taken away
 
 
by that person for the purposes of the investigation
 
 
of the relevant offence.
40
 
(2C)
In subsection (2B) (c) , “enactment” includes an enactment
 
 
contained in subordinate legislation within the meaning of
 
 
the Interpretation Act 1978.”;
 

Page 70

 
(c)
for subsection (5) there were substituted—
 
 
“(5)
Nothing in this section affects any power of a court to make
 
 
an order under section 8 of the Public Authorities (Fraud,
 
 
Error and Recovery) Act 2025.”;
 
 
(d)
subsection (6) were omitted.
5
 
(5)
Schedule 1 (special procedure) is to be read as if—
 
 
(a)
in paragraph 1, for “one or other of the sets of access conditions”
 
 
there were substituted “the first set of access conditions”;
 
 
(b)
in paragraph 2(a)(ii), for “and does not also include excluded
 
 
material” there were substituted “, or consists of or includes excluded
10
 
material,”;
 
 
(c)
paragraph 3 (second set of access conditions) were omitted;
 
 
(d)
in paragraph 12—
 
 
(i)
in paragraph (a)(i), for “either set of access conditions” there
 
 
were substituted “the first set of access conditions”;
15
 
(ii)
paragraph (b) were omitted.
 
 
Schedule 2
Section 70
 

The Public Sector Fraud Authority

 

Part 1

 

Powers to establish the PSFA and transfer of functions

20

Main powers

 
 
1
(1)
The Minister may by regulations—
 
 
(a)
provide that a body corporate called the Public Sector Fraud
 
 
Authority (and referred to in this Schedule as “the PSFA”) is
 
 
established;
25
 
(b)
provide for the transfer to the PSFA of all or any of the functions
 
 
to which this paragraph applies.
 
 
(2)
The Minister may by regulations provide for the transfer to a public
 
 
authority other than the PSFA of all or any of the functions to which this
 
 
paragraph applies.
30
 
(3)
This paragraph applies to the functions initially conferred on the Minister
 
 
by Chapters 1 to 5 of Part 1 of this Act (including functions conferred by
 
 
an amendment of another enactment), except any function of making
 
 
regulations or issuing a code of practice.
 
 
(4)
A function transferred under sub-paragraph (2) may subsequently be
35
 
transferred to the PSFA under sub-paragraph (1) (b) .
 

Page 71

 
(5)
But a function transferred to the PSFA under sub-paragraph (1) (b) may
 
 
not subsequently be transferred to another public authority under
 
 
sub-paragraph (2) .
 

Authorised officers

 
 
2
(1)
The reference in paragraph 1 (3) to functions initially conferred on the
5
 
Minister includes functions initially conferred on authorised officers.
 
 
(2)
In relation to a function initially conferred on an authorised officer,
 
 
references in this Part of this Schedule to the transfer of the function to
 
 
another body are to be read as references to the transfer of the function to
 
 
an authorised officer of that body.
10
 
(3)
Where—
 
 
(a)
a function initially conferred on an authorised officer is transferred
 
 
by regulations under paragraph 1 , and
 
 
(b)
as a result of any provision of Chapters 1 to 5 of Part 1 of this Act,
 
 
that function could be exercised only by an authorised officer of a
15
 
particular rank, grade or description,
 
 
the regulations must provide for the function to be exercised by an
 
 
authorised officer of the transferee of a corresponding grade, rank or
 
 
description.
 

Associated modifications

20
 
3
(1)
Where functions are transferred to the PSFA or another public authority
 
 
under paragraph 1 , the Minister may by regulations—
 
 
(a)
make provision about the application, with any necessary
 
 
modifications, of Part 1 of this Act in relation to the PSFA or other
 
 
authority;
25
 
(b)
provide for the Minister to give the PSFA or other authority (or its
 
 
authorised officers) general or specific directions about the exercise
 
 
of the transferred functions.
 
 
(2)
Where functions are transferred to or from a public authority, other than
 
 
the Minister or the PSFA, under paragraph 1 , the Minister may by
30
 
regulations—
 
 
(a)
make any modifications that the Minister considers appropriate in
 
 
connection with the transfer to the constitutional arrangements,
 
 
funding arrangements or the functions of the authority;
 
 
(b)
make provision in relation to the authority corresponding to that
35
 
enabled by paragraph 19 (transfer schemes) in relation to—
 
 
(i)
the PSFA, where functions are being transferred to the
 
 
authority, or
 
 
(ii)
a “relevant person”, where functions are being transferred
 
 
from the authority.
40
 
(3)
In sub-paragraph (2) (a) , “constitutional arrangements” includes the matters
 
 
referred to in section 3(2) of the Public Bodies Act 2011.
 

Page 72

 
(4)
Regulations under paragraph 1 or this paragraph may amend—
 
 
(a)
Part 1 of this Act, except this Schedule, and
 
 
(b)
any provision amended by Part 1 of this Act.
 

Procedure

 
 
4
Regulations under this Part of this Schedule are subject to the affirmative
5
 
procedure.
 

Part 2

 

Constitution etc

 

Introduction and status

 
 
5
(1)
This Part applies if regulations are made under paragraph 1 (1) establishing
10
 
the PSFA.
 
 
(2)
The PSFA acts on behalf of the Crown.
 

Constitution

 
 
6
(1)
The PSFA is to consist of—
 
 
(a)
a chair, who is to be a non-executive member,
15
 
(b)
at least 3, but not more than 6, other non-executive members,
 
 
(c)
a chief executive, and
 
 
(d)
at least 2, but not more than 5, other executive members.
 
 
(2)
The members are to be appointed in accordance with paragraphs 7 to 10 .
 

Appointment of non-executive members

20
 
7
(1)
The Minister is to appoint the non-executive members.
 
 
(2)
A person may not be appointed as a non-executive member if the person
 
 
is a member of the PSFA’s staff.
 

Appointment of executive members

 
 
8
(1)
The chair is to appoint the chief executive and the other executive members,
25
 
subject to paragraph 9 .
 
 
(2)
The executive members are to be members of the PSFA’s staff.
 

Interim chief executive

 
 
9
(1)
The Minister may appoint a person (an “interim chief executive”) to be the
 
 
PSFA’s chief executive until the appointment of a chief executive by the
30
 
chair under paragraph 8 (1) first takes effect.
 

Page 73

 
(2)
An interim chief executive may incur expenditure and do other things in
 
 
the name and on behalf of the PSFA until the PSFA is first constituted in
 
 
accordance with paragraph 6 (1) .
 
 
(3)
In exercising the power in sub-paragraph (2) , an interim chief executive
 
 
must act in accordance with any directions given by the Minister.
5
 
(4)
Paragraphs 8 , 11 and 13 do not apply to an interim chief executive.
 

Appointment of members: eligibility

 
 
10
(1)
The Minister may by regulations make provision about criteria which must
 
 
be met by persons in order to be appointed as members of the PSFA.
 
 
(2)
The regulations may make provision for a person to cease to be a member
10
 
of the PSFA if the person no longer meets those criteria.
 
 
(3)
Regulations under this paragraph are subject to the negative procedure.
 

Terms of membership

 
 
11
(1)
A member of the PSFA holds and vacates office in accordance with the
 
 
terms of the member’s appointment, subject to provision made by or under
15
 
this Schedule.
 
 
(2)
A member may resign from office by giving notice to the appropriate
 
 
person.
 
 
(3)
A member may be removed from office by notice given by the appropriate
 
 
person on the grounds that the member—
20
 
(a)
has without reasonable excuse failed to discharge the member’s
 
 
functions, or
 
 
(b)
is, in the opinion of the appropriate person, unable or unfit to carry
 
 
out the member’s functions.
 
 
(4)
A person ceases to be—
25
 
(a)
a non-executive member of the PSFA upon becoming a member of
 
 
its staff;
 
 
(b)
an executive member of the PSFA upon ceasing to be a member of
 
 
its staff.
 
 
(5)
In this paragraph, “appropriate person” means—
30
 
(a)
in the case of the non-executive members, the Minister;
 
 
(b)
in the case of the executive members, the chair.
 

Non-executive members: payments

 
 
12
(1)
The PSFA must pay, or make provision for the payment of, such
 
 
remuneration, pensions, allowances or gratuities as the Minister determines
35
 
to or in respect of a person who is or has been a non-executive member.
 
 
(2)
Sub-paragraph (3) applies if—
 
 
(a)
a person ceases to be a non-executive member, and
 

Page 74

 
(b)
the Minister determines that the person should be compensated
 
 
because of special circumstances.
 
 
(3)
Where this sub-paragraph applies, the PSFA must pay the person
 
 
compensation of such amount as the Minister may determine.
 

Staffing

5
 
13
(1)
The PSFA may—
 
 
(a)
appoint employees, and
 
 
(b)
make such other arrangements for the staffing of the PSFA as it
 
 
determines.
 
 
(2)
The PSFA must pay its staff such remuneration as may be determined in
10
 
accordance with this paragraph.
 
 
(3)
The PSFA must pay, or make provision for the payment of, such pensions,
 
 
allowances, gratuities or compensation as may be determined in accordance
 
 
with this paragraph to or in respect of any person who is or has been a
 
 
member of staff of the PSFA.
15
 
(4)
Members of staff of the PSFA are to be appointed on such other terms as
 
 
may be determined in accordance with this paragraph.
 
 
(5)
A matter is determined in accordance with this paragraph if—
 
 
(a)
in the case of a matter which relates to an executive member, it is
 
 
determined by the chair;
20
 
(b)
in the case of a matter which relates to any other member of staff,
 
 
it is determined by the PSFA.
 
 
(6)
Before making a determination as to remuneration, pensions, allowances,
 
 
gratuities or compensation for the purposes of sub-paragraph (2) or (3),
 
 
the PSFA must obtain the approval of the Minister as to its policy on that
25
 
matter.
 

Discharge of functions etc

 
 
14
(1)
The PSFA must have regard to the need to exercise its functions effectively,
 
 
efficiently and economically.
 
 
(2)
The PSFA may authorise the following to exercise any of its functions—
30
 
(a)
a member of the PSFA,
 
 
(b)
a member of the PSFA’s staff authorised for that purpose, or
 
 
(c)
a committee or sub-committee.
 
 
(3)
An authorisation may be to such extent and on such terms as the PSFA
 
 
determines.
35
 
(4)
The PSFA may pay such remuneration and allowances as it may determine
 
 
to any person who—
 
 
(a)
is a member of a committee or a sub-committee, but
 
 
(b)
is not a member of staff of the PSFA,
 

Page 75

 
whether or not that person is a non-executive member of the PSFA.
 

Procedure

 
 
15
(1)
The PSFA may determine its own procedure and the procedure of any of
 
 
its committees or sub-committees.
 
 
(2)
The validity of any proceedings of the PSFA, or any committee or
5
 
sub-committee of the PSFA, is not affected by any vacancy among its
 
 
members or by any defect in the appointment of such a member.
 

Annual report

 
 
16
(1)
As soon as reasonably practicable after the end of each financial year the
 
 
PSFA must prepare a report on the exercise of its functions during that
10
 
financial year.
 
 
(2)
The PSFA must send the report to the Minister.
 
 
(3)
The Minister must lay the report before Parliament and publish it.
 
 
(4)
In this Schedule, “financial year” means—
 
 
(a)
the period beginning with the date on which the PSFA is established
15
 
and ending with 31 March following that date, and
 
 
(b)
each successive period of 12 months.
 

Seal and evidence

 
 
17
(1)
The application of the PSFA’s seal must be authenticated by a signature
 
 
of—
20
 
(a)
a member of the PSFA, or
 
 
(b)
another person authorised for that purpose by the PSFA.
 
 
(2)
A document purporting to be duly executed under the PSFA’s seal or
 
 
signed on its behalf—
 
 
(a)
is to be received in evidence, and
25
 
(b)
is to be taken to be executed or signed in that way, unless the
 
 
contrary is shown.
 
 
(3)
But this paragraph does not apply in relation to any document which is,
 
 
or is to be, signed in accordance with the law of Scotland.
 

Supplementary powers

30
 
18
(1)
Subject to sub-paragraph (2) , the PSFA may do anything it thinks necessary
 
 
or expedient for the purposes of, or in connection with, the exercise of its
 
 
functions.
 
 
(2)
The PSFA may not—
 
 
(a)
borrow money;
35
 
(b)
accept gifts of money, land or other property.
 

Page 76

Transfer schemes

 
 
19
(1)
The Minister may make one or more schemes (“transfer schemes”) for the
 
 
purpose of transferring to the PSFA such property, rights and liabilities of
 
 
a relevant person as the Minister considers appropriate for the purposes
 
 
of enabling the PSFA to exercise functions transferred to it by regulations
5
 
under paragraph 1 .
 
 
(2)
In this paragraph, “relevant person” means—
 
 
(a)
the Secretary of State,
 
 
(b)
the Minister, or
 
 
(c)
the Chancellor of the Duchy of Lancaster.
10
 
(3)
The things that may be transferred under a transfer scheme include—
 
 
(a)
property, rights and liabilities that could not otherwise be
 
 
transferred;
 
 
(b)
property acquired, and rights and liabilities arising, after the making
 
 
of the scheme;
15
 
(c)
criminal liabilities.
 
 
(4)
A transfer scheme may make supplementary, incidental, transitional or
 
 
consequential provision and may, in particular—
 
 
(a)
create rights, or impose liabilities, in relation to property or rights
 
 
transferred;
20
 
(b)
make provision about the continuing effect of things done by a
 
 
relevant person in respect of anything transferred;
 
 
(c)
make provision about the continuation of things (including legal
 
 
proceedings) in the process of being done by, on behalf of, or in
 
 
relation to, a relevant person in respect of anything transferred;
25
 
(d)
make provision for the shared ownership or use of property;
 
 
(e)
make provision which is the same as or similar to the Transfer of
 
 
Undertakings (Protection of Employment) Regulations 2006 (S.I.
 
 
2006/246);
 
 
(f)
make other supplemental, incidental, transitional or consequential
30
 
provision.
 
 
(5)
A transfer scheme may provide for—
 
 
(a)
modifications by agreement;
 
 
(b)
modifications to have effect from the date when the original scheme
 
 
came into effect.
35
 
(6)
For the purposes of this paragraph—
 
 
(a)
references to rights and liabilities include rights and liabilities
 
 
relating to a contract of employment;
 
 
(b)
references to the transfer of property include the grant of a lease.
 
 
(7)
For the purposes of sub-paragraph (6) —
40
 
(a)
an individual who holds employment in the civil service is to be
 
 
treated as employed by virtue of a contract of employment, and
 

Page 77

 
(b)
the terms of the individual’s employment in the civil service are to
 
 
be regarded as constituting the terms of the contract of employment.
 

Amendments to other enactments

 
 
20
In Part 2 of the table in paragraph 3 of Schedule 1 to the Public Records
 
 
Act 1958 (definition of public records), at the appropriate place insert—
5
 
“Public Sector Fraud Authority.”
 
 
21
In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments
 
 
etc subject to investigation), at the appropriate place insert—
 
 
“Public Sector Fraud Authority.”
 
 
22
In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975
10
 
(bodies of which all members are disqualified), at the appropriate place
 
 
insert—
 
 
“The Public Sector Fraud Authority.”
 
 
23
In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public
 
 
authorities to which that Act applies), at the appropriate place insert—
15
 
“The Public Sector Fraud Authority.”
 
 
24
In Part 1 of Schedule 19 to the Equality Act 2010 (authorities subject to the
 
 
public sector equality duty), after the group of entries under the heading
 
 
“Environment, housing and development” insert—
 

“Fraud against the public sector

20
 
The Public Sector Fraud Authority.”
 

Part 3

 

Transfer of functions etc

 
 
25
(1)
The Minister may by regulations amend section 70 of this Act and this
 
 
Schedule so as to change the name of the PSFA.
25
 
(2)
Regulations under sub-paragraph (1) may not be made after regulations
 
 
are made under paragraph 1 (1) (a) .
 
 
(3)
Regulations under sub-paragraph (1) are subject to the negative procedure.
 

Page 78

 
Schedule 3
Section 75
 

Eligibility verification etc

 

Part 1

 

Eligibility verification

 
 
1
The Schedule to be inserted into the Social Security Administration Act
5
 
1992 after Schedule 3A is—
 
 
“Schedule 3B
Section 121DB
 

Eligibility verification

 

Part 1

 

Power to require information

10

Power to require information by way of an eligibility verification notice

 
 
1
(1)
The Secretary of State may, for the purposes of assisting in
 
 
identifying incorrect payments of a relevant benefit, give a person
 
 
of a type mentioned in paragraph 2 a notice (an “eligibility
 
 
verification notice”) requiring the person to take the steps
15
 
mentioned in sub-paragraphs (3) and (4) .
 
 
(2)
The Secretary of State may give an eligibility verification notice
 
 
only where the Secretary of State considers that it is necessary
 
 
and proportionate to do so.
 
 
(3)
The first step is to identify relevant accounts (see paragraph 21 (1)
20
 
) which—
 
 
(a)
the person provides, and
 
 
(b)
are accounts—
 
 
(i)
into which a specified relevant benefit has been
 
 
paid, or are accounts linked to such accounts, and
25
 
(ii)
which meet specified criteria (“eligibility
 
 
indicators”) whether alone or with other accounts
 
 
within paragraph (a) and sub-paragraph (i) of this
 
 
paragraph.
 
 
(4)
The second step is to give to the Secretary of State the following
30
 
information for each identified account—
 
 
(a)
specified details about the account (for example, sort code
 
 
and account number),
 
 
(b)
specified details about the account holders (for example,
 
 
their names and dates of birth), and
35
 
(c)
specified details about how the account meets the
 
 
eligibility indicators.
 

Page 79

 
(5)
Information that amounts to transaction information or special
 
 
category data—
 
 
(a)
may not be required by the Secretary of State by way of
 
 
an eligibility verification notice, and
 
 
(b)
must not be given to the Secretary of State in response to
5
 
such a notice.
 
 
(6)
But the prohibition against the requiring and giving of special
 
 
category data does not prohibit the requiring and giving of data
 
 
to establish that an individual is in receipt of the specified relevant
 
 
benefit.
10
 
(7)
A person given an eligibility verification notice is not required
 
 
to carry out the steps set out in sub-paragraphs (3) and (4) in
 
 
relation to any account that is held outside the United Kingdom.
 
 
(8)
In this paragraph the reference to an account which is linked to
 
 
an account into which a specified relevant benefit is paid is to
15
 
an account held by the same person who holds the account into
 
 
which that benefit is paid.
 
 
(9)
In this Schedule, references to an incorrect payment of a benefit—
 
 
(a)
are references to a payment of an amount in respect of
 
 
that benefit which is not equal to the amount for which
20
 
the benefit recipient is eligible, and
 
 
(b)
include references to payments that have been made or
 
 
that may be made.
 

Types of person to whom an eligibility verification notice can be given

 
 
2
(1)
The types of persons referred to in paragraph 1 (1) are persons—
25
 
(a)
to whom sub-paragraph (2) applies, or
 
 
(b)
who are described in regulations.
 
 
(2)
This sub-paragraph applies to persons who—
 
 
(a)
are authorised—
 
 
(i)
to accept deposits, or
30
 
(ii)
to issue electronic money, and
 
 
(b)
in the course of that activity, provide relevant accounts
 
 
into which a relevant benefit may be paid.
 
 
(3)
Regulations under sub-paragraph (1) (b) may describe only types
 
 
of person who provide accounts which are, or correspond to,
35
 
relevant accounts (including accounts that operate by reference
 
 
to cryptoassets or any similar asset).
 
 
(4)
In sub-paragraph (3) , “cryptoasset” has the meaning given in
 
 
section 84A of the Proceeds of Crime Act 2002.
 
 
(5)
For the purposes of sub-paragraph (2) (a) (i) —
40

Page 80

 
(a)
the reference to accepting deposits is to carrying on the
 
 
regulated activity of accepting deposits for the purposes
 
 
of the Financial Services and Markets Act 2000 (see section
 
 
22 of that Act and article 5 of the Financial Services and
 
 
Markets Act 2000 (Regulated Activities) Order 2001 (S.I.
5
 
2001/544)), and
 
 
(b)
a person is authorised to accept deposits if they are an
 
 
authorised person or an exempt person in relation to the
 
 
carrying on of that activity for the purposes of the
 
 
Financial Services and Markets Act 2000.
10
 
(6)
For the purposes of sub-paragraph (2) (a) (ii) , a person is authorised
 
 
to issue electronic money if the person—
 
 
(a)
is an electronic money institution, and
 
 
(b)
the person is authorised or registered under Part 2 of the
 
 
Electronic Money Regulations 2011 (S.I. 2011/99) in
15
 
relation to carrying on the activity of issuing electronic
 
 
money.
 
 
(7)
In this paragraph, “electronic money” and “electronic money
 
 
institution” have the meanings given by regulation 2(1) of those
 
 
Regulations (and references to the issue of electronic money are
20
 
to be construed in accordance with those Regulations).
 

Eligibility indicators

 
 
3
(1)
The eligibility indicators in an eligibility verification notice must
 
 
be criteria which indicate that the specified relevant benefit may
 
 
have been, or may be, incorrectly paid.
25
 
(2)
The eligibility indicators may be criteria to be met by a single
 
 
account or by two or more accounts combined.
 
 
(3)
The eligibility indicators must not include personal data.
 

Further provision about eligibility verification notices

 
 
4
(1)
An eligibility verification notice must specify a period within
30
 
which the person given the notice must comply with the notice
 
 
to avoid liability to a penalty under Part 2 of this Schedule.
 
 
(2)
The period specified—
 
 
(a)
must begin with the day on which the notice is given, and
 
 
(b)
must not be less than 14 days.
35
 
(3)
An eligibility verification notice must give details about—
 
 
(a)
the right to seek a review of the notice under paragraph
 
 
14 ,
 
 
(b)
the right to appeal against the notice under paragraph 15
 
 
, and
40

Page 81

 
(c)
the penalties that may be imposed under Part 2 of this
 
 
Schedule.
 
 
(4)
An eligibility verification notice (a “periodic eligibility verification
 
 
notice”) may require a person to take the steps set out in
 
 
paragraph 1 (3) and (4) at specified intervals within a period not
5
 
exceeding 1 year from the date of the notice.
 
 
(5)
If it does so, the eligibility verification notice must set out the
 
 
periods within which the person must comply with the eligibility
 
 
verification notice for each specified interval.
 
 
(6)
Each such period must not be less than 14 days.
10
 
(7)
An eligibility verification notice may not require a person to
 
 
examine historic data, except for the purpose set out in
 
 
sub-paragraph (9) .
 
 
(8)
Data is historic, in relation to an eligibility verification notice, if
 
 
it relates to a time before the beginning of the period of 1 year
15
 
ending with the day on which the notice is given.
 
 
(9)
An eligibility verification notice may require a person to provide
 
 
the date that an account which meets an eligibility indicator first
 
 
began to meet that indicator.
 
 
(10)
An eligibility verification notice may require information—
20
 
(a)
to be compiled or collated in a specified manner;
 
 
(b)
to be provided in a specified way (including by electronic
 
 
transmission to a specified address or portal).
 
 
(11)
The Secretary of State may vary or revoke an eligibility verification
 
 
notice by giving notice to the person to whom it was given.
25

Use of information obtained

 
 
5
Information given to the Secretary of State in response to an
 
 
eligibility verification notice (“EVM information”) may be used—
 
 
(a)
to assist in identifying incorrect payments of any benefit,
 
 
or
30
 
(b)
in criminal or civil proceedings relating to such payments,
 
 
but not for any other purpose.
 

Reasonable suspicion and appropriate review of EVM information

 
 
6
(1)
The existence of an eligibility indicator alone does not constitute
 
 
reasonable grounds for suspicion for the purpose of section
35
 
109BZB (1)(a) of the Social Security Administration Act 1992.
 
 
(2)
Before taking any action to amend or suspend any benefit
 
 
payments, or exercising the powers in Clause 109BZB of the Social
 
 
Security Administration Act 1992, the EVM information must first
 

Page 82

 
have been reviewed by a person with appropriate seniority and
 
 
experience authorised by the Secretary of State.
 

Restrictions on disclosure

 
 
7
(1)
This Schedule does not require or authorise any disclosure of
 
 
information that is prohibited by any of Parts 1 to 7 or Chapter
5
 
1 of Part 9 of the Investigatory Powers Act 2016.
 
 
(2)
Any disclosure of information carried out in accordance with this
 
 
Schedule (as read subject to sub-paragraph (1) ) does not breach—
 
 
(a)
any obligation of confidence owed by the person disclosing
 
 
the information, or
10
 
(b)
any other restriction on the disclosure of information
 
 
(however imposed).
 

Part 2

 

Penalties

 

Fixed penalty for failure to comply with an eligibility verification notice

15
 
8
(1)
If the Secretary of State considers that a person given an eligibility
 
 
verification notice—
 
 
(a)
has failed to comply with the notice within the period
 
 
specified, and
 
 
(b)
has no reasonable excuse for the failure,
20
 
the Secretary of State may impose a penalty (a “fixed penalty”)
 
 
on the person.
 
 
(2)
But the Secretary of State may not impose a fixed penalty before—
 
 
(a)
giving the person an opportunity to make representations
 
 
about their compliance, and
25
 
(b)
if the person has sought a review of the notice under
 
 
paragraph 14 , the conclusion of that review.
 
 
(3)
The Secretary of State imposes a fixed penalty by giving the
 
 
person a notice of the penalty (a “fixed penalty notice”).
 
 
(4)
A fixed penalty notice must state—
30
 
(a)
the reason for the penalty,
 
 
(b)
the amount of the penalty, and
 
 
(c)
the period within which it must be paid.
 
 
(5)
A fixed penalty may not exceed £1,000.
 
 
(6)
The Secretary of State may vary or revoke a fixed penalty notice
35
 
by giving notice to the person to whom it was given.
 
 
(7)
The Secretary of State may not impose more than one fixed
 
 
penalty in respect of an eligibility verification notice except a
 
 
periodic eligibility verification notice.
 

Page 83

 
(8)
In the case of a periodic eligibility verification notice, the Secretary
 
 
of State may not impose more than one fixed penalty in respect
 
 
of each specified interval.
 

Daily rate penalty for continuing failure to comply

 
 
9
(1)
The Secretary of State may impose a penalty (a “daily rate
5
 
penalty”) on a person if—
 
 
(a)
a fixed penalty has been imposed on the person in relation
 
 
to a failure to comply with an eligibility verification notice,
 
 
and
 
 
(b)
the Secretary of State considers that the person’s failure
10
 
to comply without reasonable excuse is continuing.
 
 
(2)
The Secretary of State imposes a daily rate penalty by giving the
 
 
person a notice of the penalty (a “daily rate penalty notice”).
 
 
(3)
A daily rate penalty notice must state—
 
 
(a)
the reason for the penalty,
15
 
(b)
the daily rate of the penalty, and
 
 
(c)
that the penalty will be payable in relation to each day
 
 
by the end of which the person has failed to comply with
 
 
the eligibility verification notice or such earlier date as
 
 
may be specified or described in the notice.
20
 
(4)
The daily rate of a daily rate penalty may not exceed £40.
 
 
(5)
The Secretary of State may vary or revoke a daily rate penalty
 
 
notice by giving notice to the person to whom it was given.
 
 
(6)
The Secretary of State may not impose more than one daily rate
 
 
penalty in respect of an eligibility verification notice except a
25
 
periodic eligibility verification notice.
 
 
(7)
In the case of a periodic eligibility verification notice, the Secretary
 
 
of State may not impose more than one fixed penalty in respect
 
 
of each specified interval.
 

Increased daily rate penalties

30
 
10
(1)
This paragraph applies if—
 
 
(a)
a daily rate penalty is imposed on a person,
 
 
(b)
the failure to which the penalty relates continues for more
 
 
than 30 days beginning with the first day on which the
 
 
daily rate penalty is payable, and
35
 
(c)
the person has been notified that the Secretary of State
 
 
may apply for an increased daily rate penalty to be
 
 
payable.
 
 
(2)
The Secretary of State may make an application to the Tribunal
 
 
for an increased daily rate penalty to be payable by the person.
40

Page 84

 
(3)
If the Tribunal determines that an increased daily rate penalty
 
 
must be paid, it must determine—
 
 
(a)
the increased daily rate, and
 
 
(b)
the date from which the increased rate begins to be
 
 
payable.
5
 
(4)
In deciding the increased daily rate, the Tribunal, must, in
 
 
particular, have regard to—
 
 
(a)
the likely cost to the person of complying with the
 
 
eligibility verification notice,
 
 
(b)
any benefits to the person in not complying with it, and
10
 
(c)
any benefits to anyone else resulting from the person’s
 
 
non-compliance.
 
 
(5)
The Tribunal may not determine a daily rate that exceeds £1,000.
 
 
(6)
The Secretary of State must notify the person of the Tribunal’s
 
 
determination.
15

Penalties for inaccurate or prohibited information

 
 
11
(1)
The Secretary of State may impose a penalty (an “inaccurate
 
 
information penalty”) on a person under this paragraph if the
 
 
Secretary of State considers that—
 
 
(a)
in complying with an eligibility verification notice, the
20
 
person has given the Secretary of State inaccurate
 
 
information, and
 
 
(b)
condition A, B or C is met.
 
 
(2)
Condition A is that the inaccuracy was—
 
 
(a)
deliberate, or
25
 
(b)
due to a failure, without reasonable excuse, by the person
 
 
to take reasonable care.
 
 
(3)
Condition B is that the person—
 
 
(a)
knew of the inaccuracy at the time of giving the
 
 
information,
30
 
(b)
failed to inform the Secretary of State at that time, and
 
 
(c)
has no reasonable excuse for the failure.
 
 
(4)
Condition C is that the person—
 
 
(a)
discovered the inaccuracy some time later, and
 
 
(b)
failed to take reasonable steps to inform the Secretary of
35
 
State, and
 
 
(c)
has no reasonable excuse for the failure.
 
 
(5)
The Secretary of State may impose a penalty (a “prohibited
 
 
information penalty”) under this paragraph if the person, without
 
 
reasonable excuse, gives the Secretary of State information in
40

Page 85

 
contravention of paragraph 1 (5) (transaction information or special
 
 
category data).
 
 
(6)
But the Secretary of State may not impose a penalty under this
 
 
paragraph before giving the person an opportunity to make
 
 
representations about—
5
 
(a)
in the case of an inaccurate information penalty, whether
 
 
or not—
 
 
(i)
the information is inaccurate;
 
 
(ii)
condition A, B or C is met;
 
 
(b)
in the case of a prohibited information penalty, whether
10
 
or not the person has given information in contravention
 
 
of paragraph 1 (5) without any reasonable excuse.
 
 
(7)
The Secretary of State imposes a penalty under this paragraph
 
 
by giving a notice (an “information penalty notice”).
 
 
(8)
An information penalty notice must state—
15
 
(a)
the reason for the penalty,
 
 
(b)
the amount of the penalty, and
 
 
(c)
the period within which it must be paid.
 
 
(9)
A penalty under this paragraph may not exceed £3,000.
 
 
(10)
The Secretary of State may vary or revoke an information penalty
20
 
notice by giving notice to the person to whom it was given.
 

Recovery of penalties

 
 
12
(1)
In England and Wales, a penalty imposed under this Part of this
 
 
Schedule is recoverable—
 
 
(a)
if the county court so orders, as if it were payable under
25
 
an order of that court;
 
 
(b)
if the High Court so orders, as if it were payable under
 
 
an order of that court.
 
 
(2)
In Scotland, a penalty imposed under this Part of this Schedule
 
 
may be enforced in the same manner as an extract registered
30
 
decree arbitral bearing a warrant for execution issued by the
 
 
sheriff court of any sheriffdom in Scotland.
 

Power to change maximum amount of penalties

 
 
13
Regulations may amend the amount for the time being specified
 
 
in paragraph 8 (5) , 9 (4) , 10 (5) or 11 (9) to reflect a change in the
35
 
value of money.
 

Page 86

Part 3

 

Reviews

 
 
14
(1)
A person to whom an eligibility verification notice is given may
 
 
apply to the Secretary of State for a review of the decision to give
 
 
the notice.
5
 
(2)
An application under sub-paragraph (1) must be made within
 
 
the period of 14 days beginning with the day on which the notice
 
 
is given.
 
 
(3)
On a review, the Secretary of State may—
 
 
(a)
revoke the notice,
10
 
(b)
uphold the notice, or
 
 
(c)
vary the notice.
 
 
(4)
After a review has been carried out, the Secretary of State must—
 
 
(a)
notify the person who applied for the review of the
 
 
outcome of the review, and
15
 
(b)
if the outcome was to vary the notice, give the person the
 
 
varied notice.
 
 
(5)
Where an application for a review of an eligibility verification
 
 
notice is made under sub-paragraph (1) —
 
 
(a)
the notice is of no effect until the application is determined
20
 
or withdrawn, and
 
 
(b)
if the notice is upheld or varied, the period for compliance
 
 
(or the first period for compliance in the case of a periodic
 
 
eligibility verification notice) begins with the day on which
 
 
the outcome of the review is notified to the person to
25
 
whom the eligibility verification notice was given.
 

Part 4

 

Appeals

 

Appeals against eligibility verification notices

 
 
15
(1)
A person who is given an eligibility verification notice may appeal
30
 
to the Tribunal against the notice on any of the following
 
 
grounds—
 
 
(a)
the person is not a person to whom an eligibility
 
 
verification notice may be given;
 
 
(b)
the notice is not in accordance with this Schedule;
35
 
(c)
it is unduly onerous to comply with the notice.
 
 
(2)
An appeal under sub-paragraph (1) may not be brought after the
 
 
end of—
 
 
(a)
the period of 14 days beginning with—
 

Page 87

 
(i)
the day on which the eligibility verification notice
 
 
was given, or
 
 
(ii)
if the person seeks a review of the notice under
 
 
paragraph 13, the day on which the person is
 
 
notified of the outcome of the review, or
5
 
(b)
such longer period (if any) as the Tribunal considers
 
 
reasonable in all the circumstances.
 
 
(3)
On an appeal under sub-paragraph (1) , the Tribunal may—
 
 
(a)
amend the eligibility verification notice,
 
 
(b)
revoke the eligibility verification notice, or
10
 
(c)
dismiss the appeal.
 
 
(4)
Where an appeal under sub-paragraph (1) is brought against an
 
 
eligibility verification notice the notice is of no effect until the
 
 
appeal is determined or withdrawn, unless the Tribunal orders
 
 
otherwise.
15

Appeals against penalty notices

 
 
16
(1)
A person on whom a penalty is imposed under Part 2 of this
 
 
Schedule may appeal to the Tribunal against—
 
 
(a)
the penalty;
 
 
(b)
the amount of the penalty;
20
 
(c)
in the case of a daily rate penalty, the period during which
 
 
the daily amounts are payable.
 
 
(2)
But a person may not appeal against a decision of the Tribunal
 
 
to increase a daily rate penalty under paragraph 10 .
 
 
(3)
An appeal under sub-paragraph (1) may not be brought after the
25
 
end of—
 
 
(a)
the period of 30 days beginning with the date on which
 
 
the penalty notice in relation to the penalty being appealed
 
 
was given, or
 
 
(b)
such longer period (if any) as the Tribunal considers
30
 
reasonable in all the circumstances.
 
 
(4)
On an appeal under sub-paragraph (1) , the Tribunal may—
 
 
(a)
revoke the decision to impose the penalty;
 
 
(b)
amend the amount of the penalty;
 
 
(c)
amend the period within which all or part of the penalty
35
 
is to be paid;
 
 
(d)
dismiss the appeal.
 
 
(5)
If an appeal is brought under sub-paragraph (1) , the penalty
 
 
which is the subject of the appeal is not payable until the appeal
 
 
is determined or withdrawn.
40

Page 88

Appeals: further provision

 
 
17
(1)
If the Tribunal confirms or varies an eligibility verification notice
 
 
or the imposition of a penalty on an appeal under this Part of
 
 
this Schedule, the person to whom the notice was given, or on
 
 
whom the penalty was imposed, must comply with the notice or
5
 
pay the penalty—
 
 
(a)
within such period as may be specified by the Tribunal,
 
 
or
 
 
(b)
if the Tribunal does not specify a period, within such
 
 
period as may be specified by the Secretary of State and
10
 
notified to the person.
 
 
(2)
A decision by the Tribunal on an appeal under this Part of this
 
 
Schedule is final (despite the provisions of sections 11 and 13 of
 
 
the Tribunals, Courts and Enforcement Act 2007).
 

Part 5

15

Code of practice

 

Requirement to issue a code of practice

 
 
18
(1)
The Secretary of State must issue a code of practice about
 
 
eligibility verification notices before giving the first such notice
 
 
under this Schedule.
20
 
(2)
The code of practice must include provision about—
 
 
(a)
the exercise of the power to issue an eligibility verification
 
 
notice;
 
 
(b)
the processing, use and retention of information given in
 
 
response to an eligibility verification notice;
25
 
(c)
the circumstances in which the Secretary of State will
 
 
regard a person as having complied with an eligibility
 
 
verification notice;
 
 
(d)
the imposition of penalties in relation to an eligibility
 
 
verification notice;
30
 
(e)
reviews under paragraph 14 .
 
 
(3)
Before issuing the code of practice, the Secretary of State must
 
 
carry out a public consultation on a draft of the code.
 
 
(4)
The Secretary of State must lay the code of practice before
 
 
Parliament.
35
 
(5)
The requirement in sub-paragraph (3) may be satisfied by public
 
 
consultation carried out before this paragraph comes into force.
 

Page 89

Code of practice: revisions

 
 
19
(1)
The Secretary of State may from time to time revise and re-issue
 
 
the code of practice issued under paragraph 18 .
 
 
(2)
Paragraph 18 (3) and (4) apply in relation to a re-issue of a code
 
 
of practice as they apply in relation to the issue of the first code
5
 
of practice.
 
 
(3)
But paragraph 18 (3) does not apply if the only changes to be
 
 
made to the code of practice are—
 
 
(a)
updates to references to legislation or documents which
 
 
have become out of date, or
10
 
(b)
in the opinion of the Secretary of State, other minor
 
 
corrections.
 

Part 6

 

General provision and interpretation

 

Relevant benefits

15
 
20
(1)
In this Schedule “relevant benefit” means any of the following
 
 
benefits—
 
 
(a)
universal credit;
 
 
(b)
employment and support allowance;
 
 
(c)
state pension credit.
20
 
(2)
Regulations may amend this paragraph so as to add, or remove,
 
 
types of benefit to, or from, the definition of “relevant benefit”.
 
 
(3)
Regulations under sub-paragraph (2) may add a type of benefit
 
 
only to the extent that the benefit is administered by, or on behalf
 
 
of, the Secretary of State.
25

Accounts

 
 
21
(1)
In this Schedule “relevant account” means a personal account
 
 
which operates as—
 
 
(a)
a current account,
 
 
(b)
a savings account, or
30
 
(c)
an investment account,
 
 
including such an account which operates by reference to
 
 
electronic money.
 
 
(2)
For the purposes of sub-paragraph (1) —
 
 
(a)
“personal account” means an account held by one or more
35
 
individuals other than an account that is provided for
 
 
purposes relating to a trade, business or profession;
 
 
(b)
a current account includes any account—
 

Page 90

 
(i)
in which individuals can hold, and from which
 
 
individuals can withdraw, money, and
 
 
(ii)
which is designed to allow the holder’s money to
 
 
be used for executing transactions with third
 
 
parties,
5
 
but does not include credit card accounts or current
 
 
account mortgages;
 
 
(c)
“electronic money” has the meaning it has in the Electronic
 
 
Money Regulations 2011 (S.I. 2011/99) (see regulation
 
 
2(1)).
10
 
(3)
In this Schedule a reference to a person holding an account
 
 
includes a reference to—
 
 
(a)
a person holding an account jointly with one or more
 
 
other persons, and
 
 
(b)
an account being, in any way, in the person’s name,
15
 
and “holder” is to be read accordingly.
 
 
(4)
Sub-paragraphs (5) to (8) apply for the purposes of this Schedule
 
 
where an eligibility verification notice is given to a body corporate
 
 
(“P”).
 
 
(5)
The reference in paragraph 1 (3) (a) to P providing an account
20
 
includes a reference to another person in the same group as P
 
 
providing an account if the condition in sub-paragraph (6) is met.
 
 
(6)
The condition is that P—
 
 
(a)
is able to identify accounts provided by the other person
 
 
that are within paragraph 1 (3) (b) , and
25
 
(b)
is able to obtain the information about those accounts
 
 
mentioned in paragraph 1 (4) .
 
 
(7)
For the purposes of sub-paragraph (5) , two persons are in the
 
 
same group if both are bodies corporate and—
 
 
(a)
one of them is a subsidiary of the other, or
30
 
(b)
both of them are subsidiaries of the same body corporate.
 
 
(8)
In sub-paragraph (7) , “subsidiary” has the meaning given by
 
 
section 1159 of the Companies Act 2006.
 

Service

 
 
22
In this Schedule, references to giving a notice or other document
35
 
(however expressed) include sending the notice or document by
 
 
post.
 

General interpretation

 
 
23
In this Schedule—
 
 
“benefit” means—
40

Page 91

 
(a)
any relevant social security benefit as defined in
 
 
section 121DA(7), other than a state pension, and
 
 
(b)
any payment mentioned in subsection (2)(d) of
 
 
section 2 of the Employment and Training Act
 
 
1973, under arrangements made under that section;
5
 
“daily rate penalty” means a penalty imposed under
 
 
paragraph 9 (1) ;
 
 
“eligibility indicators” has the meaning given in paragraph
 
 
1 (3) (b) (ii) (and see paragraph 3 for conditions that
 
 
eligibility indicators must meet);
10
 
“eligibility verification notice” has the meaning given in
 
 
paragraph 1 (1) ;
 
 
“fixed penalty” means a penalty imposed under paragraph
 
 
8 (1) ;
 
 
“incorrect payment” , in relation to a benefit, has the meaning
15
 
given in paragraph 1 (9) ;
 
 
“notice” means notice in writing (and “notify” is to be read
 
 
accordingly);
 
 
“periodic eligibility verification notice” has the meaning
 
 
given in paragraph 4 (4) ;
20
 
“personal data” has the same meaning as in the Data
 
 
Protection Act 2018 (see section 3(2) of that Act);
 
 
“processing” , in relation to information, has the same
 
 
meaning as in the Data Protection Act 2018 (see section
 
 
3(4) of that Act);
25
 
“special category data” means the types of personal data the
 
 
processing of which is prohibited (to any extent) from
 
 
time to time under Article 9 of Regulation (EU) 2016/679
 
 
of the European Parliament and of the Council of 27 April
 
 
2016 on the protection of natural persons with regard to
30
 
the processing of personal data and on the free movement
 
 
of such data, and repealing Directive 95/46/EC (General
 
 
Data Protection Regulation);
 
 
“specified” means specified or described in an eligibility
 
 
verification notice, unless the context requires otherwise;
35
 
“state pension” means—
 
 
(a)
a state pension under Part 1 of the Pensions Act
 
 
2014;
 
 
(b)
a retirement pension, including a Graduated
 
 
Retirement Benefit, under Part 2 or 3 of the Social
40
 
Security Contributions and Benefits Act 1992;
 
 
(c)
a shared additional pension under Part 2 of that
 
 
Act;
 
 
“transaction information” , in relation to an account, means
 
 
information which—
45

Page 92

 
(a)
may enable the identification of the subject matter
 
 
or the amount of a transaction completed through
 
 
the account, or
 
 
(b)
may enable the identification of a party to such a
 
 
transaction who is not a holder of the account,
5
 
but does not include information which relates to the
 
 
payment of a relevant benefit into the account;
 
 
“the Tribunal” means the First-tier Tribunal.
 

Relationship with other powers

 
 
24
Nothing in this Schedule limits the powers conferred on the
10
 
Secretary of State by sections 109B and 109BZA (powers to require
 
 
information).”
 

Part 2

 

Proceeds of Crime Act 2002

 
 
2
(1)
The Proceeds of Crime Act 2002 is amended as follows.
15
 
(2)
In section 330 (failure to disclose: regulated sector), after subsection (7D)
 
 
insert—
 
 
“(7E)
Nor does a person commit an offence under this section if—
 
 
(a)
the information or other matter mentioned in subsection (3)
 
 
consists of or includes information that was obtained only
20
 
in consequence of complying with an eligibility verification
 
 
notice given to the person under paragraph 1 (1) of Schedule
 
 
3B to the Social Security Administration Act 1992, and
 
 
(b)
but for the information so obtained the person would not
 
 
know or suspect, or have reasonable grounds for knowing
25
 
or suspecting, that another person is engaged in money
 
 
laundering.”
 
 
(3)
In section 331 (failure to disclose: nominated officers in the regulated sector),
 
 
after subsection (6B) insert—
 
 
“(6C)
Nor does a person commit an offence under this section if—
30
 
(a)
the information or other matter mentioned in subsection (3)
 
 
consists of or includes information that was obtained only
 
 
in consequence of complying with an eligibility verification
 
 
notice given to the person under paragraph 1 (1) of Schedule
 
 
3B to the Social Security Administration Act 1992, and
35
 
(b)
but for the information so obtained the person would not
 
 
know or suspect, or have reasonable grounds for knowing
 
 
or suspecting, that another person is engaged in money
 
 
laundering.”
 

Page 93

 
Schedule 4
Sections 77 and 78
 

Social security fraud: search and seizure powers etc

 
 
1
The Schedule to be inserted in the Social Security Administration Act 1992
 
 
after Schedule 3ZB (inserted by section 93 (3) of this Act) is—
 
 
“Schedule 3ZC
Section 109D
5

Entry, search and seizure etc: England and Wales

 

Introduction

 
 
1
This Schedule contains modifications of the provisions of the
 
 
Police and Criminal Evidence Act 1984 mentioned in section
 
 
109D (4) for the purposes of their application to authorised
10
 
investigators in accordance with section 109D (3) .
 

General modifications

 
 
2
(1)
Each reference to a constable (however expressed) is to be read
 
 
as including a reference to an authorised investigator.
 
 
(2)
Each reference to an offence is to be read as a reference to a DWP
15
 
offence, except for—
 
 
(a)
the reference to any other offence in section 19(3)(a), and
 
 
(b)
the reference to an offence in section 21(8)(b).
 
 
(3)
Each reference to a criminal investigation is to be read as a
 
 
reference to a criminal investigation in connection with a DWP
20
 
offence.
 

Specific modifications

 
 
3
(1)
Section 15 (search warrants: safeguards) is to be read as if—
 
 
(a)
in subsection (2)(c), for “articles or persons” there were
 
 
substituted “material”;
25
 
(b)
in subsection (6)(b), for “articles or persons” there were
 
 
substituted “material”.
 
 
(2)
Section 16 (execution of warrants) is to be read as if—
 
 
(a)
in subsections (3A) and (3B), for the words “a police officer
 
 
of at least the rank of inspector”, in each case, there were
30
 
substituted “an authorised investigator of at least the grade
 
 
of senior executive officer”;
 
 
(b)
in subsection (5)(a), the words “, if not in uniform,” were
 
 
omitted;
 
 
(c)
in subsection (9)(a), for the words “articles or persons
35
 
sought were” there were substituted “material sought
 
 
was”.
 

Page 94

 
(3)
Section 21 (access and copying) is to be read as if, in subsection
 
 
(3)(b), the reference to the police were a reference to an authorised
 
 
investigator.
 
 
(4)
Section 22 (retention) is to be read as if—
 
 
(a)
for subsection (1), there were substituted—
5
 
“(1)
Subject to subsection (4), anything which has
 
 
been—
 
 
(a)
seized by an authorised investigator,
 
 
(b)
taken away by an authorised investigator
 
 
following a requirement made by virtue of
10
 
section 19 or 20, or
 
 
(c)
seized or taken away by another person
 
 
under any enactment and accepted by an
 
 
authorised investigator,
 
 
may be retained so long as is necessary in all the
15
 
circumstances.”;
 
 
(b)
after subsection (2) there were inserted—
 
 
““(2A)
Subsection (2B) applies where an authorised
 
 
investigator—
 
 
(a)
has seized something or taken something
20
 
away following a requirement made by
 
 
virtue of section 19 or 20 on the basis that
 
 
it is evidence of an offence, and
 
 
(b)
considers that the thing may be evidence
 
 
that is relevant to an investigation of an
25
 
offence (whether or not the offence
 
 
mentioned in paragraph (a) ) in relation to
 
 
which another person has functions.
 
 
(“(2B)
Where this subsection applies—
 
 
(a)
an authorised investigator may transfer the
30
 
thing to that person,
 
 
(b)
where that person considers that the thing
 
 
may be evidence that is relevant to an
 
 
investigation in relation to which that
 
 
person has functions, that person may
35
 
accept and retain the thing, and
 
 
(c)
any provision of an enactment that applies
 
 
to anything seized or taken away by that
 
 
person applies to the thing as if it had been
 
 
seized or taken away by that person for the
40
 
purposes of the investigation of the relevant
 
 
offence.
 
 
(“(2C)
In subsection (2B) (c) , “enactment” includes—
 

Page 95

 
(a)
an enactment contained in subordinate
 
 
legislation within the meaning of the
 
 
Interpretation Act 1978, and
 
 
(b)
an enactment contained in, or in an
 
 
instrument made under, an Act of the
5
 
Scottish Parliament.”;”
 
 
(c)
for subsection (5) there were substituted—
 
 
“(5)
Nothing in this section affects any power of a court
 
 
to make an order under section 109G of the Social
 
 
Security Administration Act 1992.”;
10
 
(d)
subsection (6) were omitted.
 
 
(5)
Section 117 (reasonable use of force) is to be read as if at the end
 
 
there were inserted—
 
 
“(2)
Authorised investigators exercising powers under section
 
 
109D may only use reasonable force, if necessary, against
15
 
items and property, not against persons.
 
 
(3)
Nothing in subsection (2) restricts the power of a police
 
 
constable to use reasonable force, if necessary, when
 
 
exercising powers under section 109D Social Security
 
 
Administration Act 1992.”
20
 
(6)
Schedule 1 (special procedure) is to be read as if—
 
 
(a)
references to “special procedure material” did not include
 
 
special procedure material within section 14(1)(b)
 
 
(journalistic material, other than excluded material);
 
 
(b)
references to “excluded material” did not include excluded
25
 
material within—
 
 
(i)
section 11(1)(b) (human tissue etc), or
 
 
(ii)
section 11(1)(c) (certain journalistic material);
 
 
(c)
in paragraph 2(a)(ii), for the words “and does not also
 
 
include excluded material” there were substituted “, or
30
 
consists of or includes excluded material,”;
 
 
(d)
paragraph 3 (second set of access conditions) were
 
 
omitted.
 

Page 96

 
2
The Schedule to be inserted in the Social Security Administration Act 1992
 
 
after Schedule 3ZC (inserted by section 77 (3) of this Schedule) is—
 
 
“Schedule 3ZD
Section 109E
 

Entry, search and seizure etc: Scotland

 

Part 1

5

Normal material

 

Warrants for entry, search and seizure etc

 
 
1
(1)
Where, on an application by an authorised investigator, a sheriff
 
 
is satisfied that the condition in sub-paragraph (3) is met, the
 
 
sheriff may grant a specific premises warrant.
10
 
(2)
A specific premises warrant is a warrant to exercise the powers
 
 
described in paragraph 2 in relation to premises specified in the
 
 
application.
 
 
(3)
The condition in this sub-paragraph is that there are reasonable
 
 
grounds for believing—
15
 
(a)
that a DWP offence which is an indictable offence has
 
 
been committed,
 
 
(b)
there is material on premises to which the application
 
 
relates which is likely to be of substantial value (whether
 
 
by itself or with other material) to the investigation of the
20
 
offence,
 
 
(c)
the material is likely to be relevant evidence,
 
 
(d)
the material does not consist of or include excluded
 
 
material or special procedure material, and
 
 
(e)
any of the following applies—
25
 
(i)
it is not practicable to communicate with a person
 
 
entitled to grant entry to the premises;
 
 
(ii)
it is not practicable to communicate with a person
 
 
entitled to grant access to the material (if different
 
 
from the person entitled to grant entry);
30
 
(iii)
entry to the premises will not be granted unless a
 
 
warrant is produced;
 
 
(iv)
the purpose of a search may be frustrated or
 
 
seriously prejudiced unless an authorised
 
 
investigator arriving at the premises can secure
35
 
immediate access to them.
 
 
(4)
The power to issue a warrant under paragraph 1 is in addition
 
 
to any other power to issue a warrant in relation to entry to or
 
 
search of premises.
 

Page 97

Powers exercisable under a warrant

 
 
2
(1)
The powers granted by a warrant under paragraph 1 are powers
 
 
to—
 
 
(a)
enter the premises;
 
 
(b)
search the premises;
5
 
(c)
examine any document, equipment or other item or
 
 
material on the premises (including by operating a
 
 
computer or other device in order to gain access to
 
 
information);
 
 
(d)
seize any document, equipment or other item or material
10
 
on the premises and remove it;
 
 
(e)
take a copy of or otherwise record (in any form) a
 
 
document, equipment or other item or material on the
 
 
premises, or any information contained in or accessible
 
 
by means of any such document, equipment, item or
15
 
material;
 
 
(f)
require any person on the premises to provide information
 
 
or assistance for the purpose of—
 
 
(i)
enabling or facilitating the exercise of the powers
 
 
described in paragraphs (a) to (e) , or
20
 
(ii)
allowing anything inspected, seized or recorded
 
 
in the exercise of those powers to be better
 
 
understood.
 
 
(2)
Subject to paragraph (3) , a person may exercise those powers
 
 
only so far as the person considers it necessary to do so for the
25
 
purposes of investigating a DWP offence.
 
 
(3)
The power to seize and remove a document, equipment or other
 
 
item or material on the premises may be exercised if the person
 
 
has reasonable grounds for believing—
 
 
(a)
that it is evidence in relation to any offence, and
30
 
(b)
it is necessary to seize it in order to prevent the evidence
 
 
being concealed, lost, altered or destroyed.
 
 
(4)
A person may not exercise the power to seize and remove an
 
 
item or material unless the person considers that exercising the
 
 
power to take a copy or record it would be insufficient.
35
 
(5)
A person may not exercise the power to seize and remove
 
 
excluded material or special procedure material.
 
 
(6)
The powers granted by a warrant under paragraph 1 may be
 
 
subject to conditions or limitations.
 

Execution of warrants

40
 
3
(1)
A warrant under paragraph 1 may be executed by any authorised
 
 
investigator.
 

Page 98

 
(2)
An authorised investigator may take other persons, equipment
 
 
and materials onto the premises for the purposes of assisting in
 
 
the exercise of the powers granted by the warrant.
 
 
(3)
A person so taken onto the premises may also exercise the powers
 
 
granted by the warrant if the person is in the company, and under
5
 
the supervision, of an authorised investigator.
 
 
(4)
The powers granted by a warrant under paragraph 1 may be
 
 
exercised—
 
 
(a)
only at a reasonable hour, unless it appears to the
 
 
investigator executing the warrant that the purpose of a
10
 
search may be frustrated on an entry at a reasonable hour,
 
 
and
 
 
(b)
only within the period of 1 month beginning with the day
 
 
on which it is issued.
 
 
(5)
When premises are entered in reliance on a warrant under
15
 
paragraph 1 , the authorised investigator executing the warrant—
 
 
(a)
must give a copy of the warrant to any person appearing
 
 
to be in charge of the premises at the earliest opportunity
 
 
(if possible before entering the premises);
 
 
(b)
if no such copy is given during the period of entry on the
20
 
premises, must leave a copy of the warrant in a prominent
 
 
place on the premises;
 
 
(c)
must produce, on request by any person appearing to be
 
 
in charge of the premises, proof of the person’s identity
 
 
and status as an authorised investigator;
25
 
(d)
if no person appearing to be in charge of the premises is
 
 
present when the person executing the warrant is on the
 
 
premises, must leave the premises as effectively secured
 
 
against trespassers as that person found them.
 
 
(6)
A person exercising powers granted by a warrant under
30
 
paragraph 1 may use reasonable force if necessary, except to
 
 
enforce the requirement described in paragraph 2 (1) (f) .
 

Seizure under paragraph 2(1)(d)

 
 
4
(1)
This section applies where a person exercises the power of seizure
 
 
and removal described in paragraph 2 (1) (d) .
35
 
(2)
The person must, on request by any person appearing to be in
 
 
charge of the premises—
 
 
(a)
give a receipt for the thing seized, and
 
 
(b)
in the case of a document readily capable of being copied,
 
 
give a copy of it.
40
 
(3)
The thing seized may be retained in the possession of the
 
 
Secretary of State for so long as the Secretary of State considers
 

Page 99

 
necessary for the purposes of investigating any DWP offence
 
 
(irrespective of the purpose for which it was initially obtained).
 
 
(4)
For any such purpose, a person acting on behalf of the Secretary
 
 
of State may—
 
 
(a)
examine the thing seized (using reasonable force if
5
 
necessary), and
 
 
(b)
record (in whatever form) any information obtained from
 
 
the thing seized.
 
 
(5)
Sub-paragraph (6) applies where—
 
 
(a)
something has been seized and removed, and
10
 
(b)
a person who had custody or control of the thing before
 
 
it was seized, or a person acting on behalf of such a
 
 
person, requests access to it.
 
 
(6)
An authorised investigator must give the person access to the
 
 
thing under the investigator’s supervision, unless the investigator
15
 
has reasonable grounds for believing that doing so would
 
 
prejudice—
 
 
(a)
an investigation of an offence, or
 
 
(b)
criminal proceedings relating to an offence.
 
 
(7)
Sub-paragraph (8) applies where—
20
 
(a)
the power in paragraph 2 (1) (d) has been exercised to seize
 
 
and remove something on the basis that it is evidence of
 
 
an offence, and
 
 
(b)
an authorised investigator considers that the thing may
 
 
be evidence that is relevant to an investigation of an
25
 
offence (whether or not the offence mentioned in
 
 
paragraph (a) ) in relation to which another person has
 
 
functions.
 
 
(8)
Where this sub-paragraph applies—
 
 
(a)
an authorised investigator may transfer the thing to that
30
 
person,
 
 
(b)
where that person considers that the thing may be
 
 
evidence that is relevant to an investigation in relation to
 
 
which that person has functions, that person may accept
 
 
and retain the thing, and
35
 
(c)
any provision of an enactment that applies to anything
 
 
seized or taken away by that person applies to the thing
 
 
as if it had been seized or taken away by that person for
 
 
the purposes of the investigation of the relevant offence.
 
 
(9)
In sub-paragraph (8) (c) , “enactment” includes—
40
 
(a)
an enactment contained in subordinate legislation within
 
 
the meaning of the Interpretation Act 1978, and
 
 
(b)
an enactment contained in, or in an instrument made
 
 
under, an Act of the Scottish Parliament.
 

Page 100

Return of warrant etc

 
 
5
(1)
If a warrant under paragraph 1 is executed, the person who
 
 
executed it must return it to the court from which it was issued
 
 
as soon as reasonably practicable with an endorsement
 
 
summarising the exercise of the powers in paragraph 2 .
5
 
(2)
If a warrant under paragraph 1 is not executed, the Secretary of
 
 
State must return it to the court from which it was issued as soon
 
 
as reasonably practicable with an endorsement stating that it was
 
 
not executed.
 
 
(3)
A warrant must be retained for 12 months by the court to which
10
 
it is returned.
 

Authorised investigators

 
 
6
(1)
In this Schedule, an authorised investigator is an individual who
 
 
is authorised by the Secretary of State to exercise the powers
 
 
conferred by this Schedule.
15
 
(2)
An individual may be authorised as an authorised investigator
 
 
only if the individual is an official of a government department
 
 
and—
 
 
(a)
is a higher executive officer, or
 
 
(b)
has a grade that is equivalent to, or higher than, that of
20
 
a higher executive officer.
 

Part 2

 

Special procedure

 

Production orders

 
 
7
(1)
Where, on an application by an authorised investigator, a sheriff
25
 
is satisfied that the condition in sub-paragraph (4) is met, the
 
 
sheriff may grant a production order.
 
 
(2)
A production order is an order requiring the person who appears
 
 
to the sheriff to be in possession of material specified in the
 
 
application to—
30
 
(a)
give the material to an authorised investigator, or
 
 
(b)
give an authorised investigator access to the material.
 
 
(3)
A person must comply with a production order within—
 
 
(a)
the period of 10 working days beginning with the day on
 
 
which the order is made, or
35
 
(b)
such longer period as may be specified in the order.
 
 
(4)
The condition in this sub-paragraph is that there are reasonable
 
 
grounds for believing that—
 

Page 101

 
(a)
a DWP offence which is an indictable offence has been
 
 
committed,
 
 
(b)
material which is specified in the application is likely to
 
 
be of substantial value (whether by itself or with other
 
 
material) to the investigation of the offence,
5
 
(c)
the material consists of or includes—
 
 
(i)
personal records within paragraph 11 (1) (a) , or
 
 
(ii)
confidential professional material,
 
 
(d)
the material is likely to be relevant evidence,
 
 
(e)
other methods of obtaining the material—
10
 
(i)
have been tried without success, or
 
 
(ii)
have not been tried because it appeared that they
 
 
were bound to fail, and
 
 
(f)
it is in the public interest that the material should be given,
 
 
or that access to it should be given, having regard to—
15
 
(i)
the benefit likely to accrue to the investigation if
 
 
the material is obtained, and
 
 
(ii)
the circumstances under which the person in
 
 
possession of the material holds it.
 
 
(5)
Where the material consists of information stored in an electronic
20
 
form—
 
 
(a)
a production order under sub-paragraph (2) (a) , requires
 
 
the material to be given in a form in which—
 
 
(i)
it can be taken away, and
 
 
(ii)
in which it is visible and legible or from which it
25
 
can readily be produced in a visible and legible
 
 
form, and
 
 
(b)
a production order under sub-paragraph (2) (b) , requires
 
 
an authorised investigator to be given access to the
 
 
material in a form in which it is visible and legible.
30
 
(6)
Paragraph 4 applies in relation to material given to an authorised
 
 
investigator under a production order as it applies to material
 
 
seized and removed under the power described in paragraph
 
 
2 (1) (d) .
 

Warrants

35
 
8
(1)
On an application by an authorised investigator, a sheriff may
 
 
grant a specific premises warrant within the meaning of paragraph
 
 
1 (2) where the sheriff is satisfied that—
 
 
(a)
a production order could be issued in relation to material
 
 
(see paragraph 7 (4) ), and
40
 
(b)
sub-paragraphs (2) and (3) of this paragraph apply.
 

Page 102

 
(2)
This sub-paragraph applies where there are reasonable grounds
 
 
for believing that the material is on the premises specified or
 
 
described in the application.
 
 
(3)
This sub-paragraph applies where any of the following apply—
 
 
(a)
it is not practicable to communicate with a person entitled
5
 
to grant entry to the premises;
 
 
(b)
it is not practicable to communicate with a person entitled
 
 
to grant access to the material (if different from the person
 
 
entitled to grant entry);
 
 
(c)
a production order relating to the material has not been
10
 
complied with;
 
 
(d)
entry to the premises will not be granted unless a warrant
 
 
is produced;
 
 
(e)
the purpose of a search may be frustrated or seriously
 
 
prejudiced unless an authorised investigator arriving at
15
 
the premises can secure immediate access to them;
 
 
(f)
the material contains information disclosure of which, in
 
 
the absence of a warrant, would be a breach of a restriction
 
 
on disclosure, or an obligation of secrecy, contained in
 
 
any enactment whenever passed.
20
 
(4)
The provisions of Part 1 of this Schedule that apply in relation
 
 
to a specific premises warrant apply to a specific premises warrant
 
 
under this paragraph as if, at the end of paragraph 2 (5) , there
 
 
were inserted “other than confidential professional material or
 
 
personal records within paragraph 11 (1) (a) ”.
25

Part 3

 

General

 

Procedural rules

 
 
9
(1)
Provision may be made in rules of court about proceedings under
 
 
this Schedule.
30
 
(2)
Rules of court are, without prejudice to section 305 of the Criminal
 
 
Procedure (Scotland) Act 1995, to be made by Act of Adjournal.
 

Material subject to legal privilege

 
 
10
Nothing in this Schedule confers power to—
 
 
(a)
require any person to provide information, or
35
 
(b)
seize, remove, take a copy of or otherwise record anything,
 
 
in respect of which a claim to confidentiality of communications
 
 
could be maintained in legal proceedings.
 

Page 103

Meaning of “excluded material”

 
 
11
(1)
In this Schedule, “excluded material” means—
 
 
(a)
personal records which a person has acquired or created
 
 
in the course of any trade, business, profession or other
 
 
occupation or for the purposes of any paid or unpaid
5
 
office and which the person holds in confidence;
 
 
(b)
human tissue or tissue fluid which has been taken for the
 
 
purposes of diagnosis or medical treatment and which a
 
 
person holds in confidence;
 
 
(c)
journalistic material which a person holds in confidence
10
 
and which consists—
 
 
(i)
of documents, or
 
 
(ii)
of records other than documents.
 
 
(2)
A person holds material other than journalistic material in
 
 
confidence for the purposes of this paragraph if the person holds
15
 
it subject—
 
 
(a)
to an express or implied undertaking to hold it in
 
 
confidence, or
 
 
(b)
to a restriction on disclosure or an obligation of secrecy
 
 
contained in any enactment, whenever passed.
20
 
(3)
A person holds journalistic material in confidence for the purposes
 
 
of this paragraph if—
 
 
(a)
the person holds it subject to such an undertaking,
 
 
restriction or obligation, and
 
 
(b)
it has been continuously held (by one or more persons)
25
 
subject to such an undertaking, restriction or obligation
 
 
since it was first acquired or created for the purposes of
 
 
journalism.
 

Meaning of “personal records”

 
 
12
In this Schedule, “personal records” means documentary and
30
 
other records concerning an individual (whether living or dead)
 
 
who can be identified from them and relating—
 
 
(a)
to the person’s physical or mental health,
 
 
(b)
to spiritual counselling or assistance given or to be given
 
 
to the person, or
35
 
(c)
to counselling or assistance given or to be given to the
 
 
person, for the purposes of the person’s personal welfare,
 
 
by any voluntary organisation or by any individual who—
 
 
(i)
by reason of the person’s office or occupation has
 
 
responsibilities for the person’s personal welfare,
40
 
or
 
 
(ii)
by reason of an order of a court has responsibilities
 
 
for the person’s supervision.
 

Page 104

Meaning of “journalistic material”

 
 
13
(1)
In this Schedule, “journalistic material” means material acquired
 
 
or created for the purposes of journalism.
 
 
(2)
But material is only journalistic material for the purposes of this
 
 
Schedule if it is in the possession of a person who acquired or
5
 
created it for the purposes of journalism.
 
 
(3)
A person who receives material from someone who intends that
 
 
the recipient is to use it for the purposes of journalism is to be
 
 
taken to have acquired it for those purposes.
 

Meaning of “special procedure material”

10
 
14
(1)
In this Schedule, “special procedure material” means—
 
 
(a)
material to which sub-paragraph (2) applies, and
 
 
(b)
journalistic material, other than excluded material.
 
 
(2)
Subject to the following provisions of this paragraph, this
 
 
sub-paragraph applies to material, other than excluded material,
15
 
in the possession of a person who—
 
 
(a)
acquired or created it in the course of any trade, business,
 
 
profession or other occupation or for the purpose of any
 
 
paid or unpaid office, and
 
 
(b)
holds it subject—
20
 
(i)
to an express or implied undertaking to hold it in
 
 
confidence, or
 
 
(ii)
to a restriction or obligation such as is mentioned
 
 
in paragraph 11 (2) (b) .
 
 
(3)
Where material is acquired—
25
 
(a)
by an employee from the employee’s employer and in the
 
 
course of the employee’s employment, or
 
 
(b)
by a company from an associated company,
 
 
it is only special procedure material if it was special procedure
 
 
material immediately before the acquisition.
30
 
(4)
Where material is created by an employee in the course of the
 
 
employee’s employment, it is only special procedure material if
 
 
it would have been special procedure material had the employer
 
 
created it.
 
 
(5)
Where material is created by a company on behalf of an associated
35
 
company, it is only special procedure material if it would have
 
 
been special procedure material had the associated company
 
 
created it.
 
 
(6)
A company is to be treated as another's associated company for
 
 
the purposes of this paragraph if it would be so treated under
40
 
section 449 of the Corporation Tax Act 2010.
 

Page 105

Meaning of “confidential professional material”

 
 
15
In this Schedule, “confidential professional material” means
 
 
material to which paragraph 14 (2) applies.
 

Other interpretation

 
 
16
For the purposes of this Schedule—
5
 
“authorised investigators” has the meaning given in
 
 
paragraph 6 ;
 
 
“premises” includes—
 
 
(a)
a vehicle or vessel,
 
 
(b)
a tent or moveable structure, and
10
 
(c)
any other place;
 
 
“relevant evidence” , in relation to an offence, means anything
 
 
that would be admissible in evidence at a trial for the
 
 
offence;
 
 
“working day” means a day other than—
15
 
(a)
a Saturday or a Sunday, or
 
 
(b)
a day which is a bank holiday in Scotland under
 
 
the Banking and Financial Dealings Act 1971.”
 
 
Schedule 5
Section 92
 

Recovery from bank accounts etc

20
 
The Schedule to be inserted in the Social Security Administration Act 1992 after
 
 
Schedule 3 is—
 
 
“Schedule 3ZA
Section 80C
 

Recovery of amounts from bank accounts etc

 

Part 1

25

deductions from accounts

 

Direct deduction orders

 
 
1
(1)
Where an amount is recoverable from a liable person who holds an account
 
 
with a bank, the Secretary of State may make an order (a “direct deduction
 
 
order”) in respect of that account.
30
 
(2)
A direct deduction order must be given to the bank with which the account
 
 
is held.
 
 
(3)
A direct deduction order may be—
 

Page 106

 
(a)
a regular direct deduction order;
 
 
(b)
a lump sum direct deduction order.
 
 
(4)
A regular direct deduction order is an order requiring the bank—
 
 
(a)
to make regular deductions from the liable person’s account, and
 
 
(b)
to pay the amounts deducted to the Secretary of State.
5
 
(5)
A lump sum direct deduction order is an order requiring the bank—
 
 
(a)
to deduct from the liable person’s account an amount specified in
 
 
the order, and
 
 
(b)
to pay that amount to the Secretary of State.
 
 
(6)
The Secretary of State may give a regular direct deduction order and a
10
 
lump sum direct deduction order in respect of the same account.
 
 
(7)
The Secretary of State must give a copy of a direct deduction order to—
 
 
(a)
the liable person, and
 
 
(b)
in the case of a joint account, each of the other account holders.
 
 
(8)
Paragraphs 3 to 5 set out steps that the Secretary of State must take before
15
 
making a direct deduction order.
 

Accounts which may be subject to a direct deduction order

 
 
2
(1)
The Secretary of State may make a direct deduction order in respect of any
 
 
account which—
 
 
(a)
is held by a liable person, and
20
 
(b)
contains an amount in which the Secretary of State considers the
 
 
liable person has a beneficial interest.
 
 
(2)
The Secretary of State may make a direct deduction order in respect of a
 
 
joint account only if the liable person does not hold a sole account in respect
 
 
of which a direct deduction order may be made which would be likely to
25
 
result in the recovery of the recoverable amount within a reasonable period
 
 
of time.
 
 
(3)
But sub-paragraph (2) does not apply if all the holders of a joint account
 
 
are liable persons in relation to the same recoverable amount.
 

Requirement for banks to provide information

30
 
3
(1)
Before the Secretary of State makes a direct deduction order in respect of
 
 
a liable person’s account, the Secretary of State must obtain and consider
 
 
bank statements for the account covering a period of at least 3 months.
 
 
(2)
To obtain the statements, the Secretary of State must give the bank with
 
 
which the Secretary of State believes the liable person holds the account a
35
 
notice (an “account information notice”) requiring the bank to give the
 
 
Secretary of State statements for the account covering—
 
 
(a)
the 3 months immediately before the notice is given, or
 
 
(b)
such longer period, ending immediately before the notice is given,
 
 
as may be specified in the notice.
40

Page 107

 
(3)
An account information notice must—
 
 
(a)
contain the name of the liable person, and
 
 
(b)
identify the account (for example, by number and sort code).
 
 
(4)
The Secretary of State may give an account information notice relating to
 
 
an account only for the purpose of determining whether to make a direct
5
 
deduction order in respect of the account.
 
 
(5)
At any time, for the purposes of determining whether to make a direct
 
 
deduction order in relation to a liable person, the Secretary of State may
 
 
give a notice (a “general information notice”) to a bank requiring the bank
 
 
to—
10
 
(a)
identify every account that the liable person holds with the bank,
 
 
(b)
for each identified account, give the Secretary of State the following
 
 
information—
 
 
(i)
a description of the type of account,
 
 
(ii)
identifiers for the account,
15
 
(iii)
if the account is a sole account, the balance of the account
 
 
at the date that it is identified, and
 
 
(iv)
if the account is a joint account, the name of each other
 
 
account holder, and
 
 
(c)
give the Secretary of State—
20
 
(i)
the correspondence address that the bank holds for the liable
 
 
person, and
 
 
(ii)
in the case of a joint account, the correspondence address
 
 
that the bank holds for each other account holder.
 
 
(6)
The Secretary of State may give—
25
 
(a)
more than one account information notice, or general information
 
 
notice, in relation to the same recoverable amount;
 
 
(b)
more than one account information notice in respect of the same
 
 
account.
 
 
(7)
A notice under this paragraph must—
30
 
(a)
set out how and when the bank must comply with the notice, and
 
 
(b)
explain that the bank may be liable to a penalty under paragraph
 
 
20 if it fails to do so without reasonable excuse.
 
 
(8)
The bank must comply with a notice given under this paragraph.
 
 
(9)
Subject to sub-paragraph (10) , a bank that is given an account information
35
 
notice, or a general information notice, must not notify any of the following
 
 
people that the notice has been given—
 
 
(a)
the liable person;
 
 
(b)
any other holder of the account in respect of which an account
 
 
information notice is given;
40
 
(c)
any other holder of an account identified in accordance with a
 
 
general information notice.
 
 
(10)
The prohibition in sub-paragraph (9) ceases to apply—
 

Page 108

 
(a)
at the end of the period of 3 months beginning with the day on
 
 
which the account information notice or general information notice
 
 
is given to the bank, or
 
 
(b)
if earlier, when the bank is given a notice under paragraph 5 (1) .
 
 
(11)
Information given to the Secretary of State in response to a notice under
5
 
this paragraph may be used by the Secretary of State for purposes connected
 
 
with the Secretary of State’s functions under this Part of this Act, but not
 
 
for any other purpose.
 

Joint accounts

 
 
4
(1)
Before making a direct deduction order in respect of a joint account, the
10
 
Secretary of State must make an assessment of the liable person’s beneficial
 
 
interest in the amounts which are or may be in the account from time to
 
 
time.
 
 
(2)
The Secretary of State must presume that the liable person’s beneficial
 
 
interest entitles them to the following share in any amounts which are or
15
 
may be in the account from time to time—
 
 
1 N
 
 
where “N” is the number of account holders.
 
 
(3)
But the presumption does not apply where the Secretary of State has reason
 
 
to believe that the liable person’s beneficial interest is different from the
20
 
presumed share.
 
 
(4)
In making an assessment under sub-paragraph (1) , the Secretary of State
 
 
must have regard to—
 
 
(a)
the bank statements obtained for the account under paragraph 3
 
 
, and
25
 
(b)
any responses to a notice under paragraph 5 .
 

Further requirements before making a direct deduction order

 
 
5
(1)
Before making a direct deduction order, the Secretary of State must give
 
 
the bank where the account in question is held, the liable person, and, in
 
 
the case of a joint account, each of the other account holders, a notice—
30
 
(a)
identifying the account that would be subject to the proposed order,
 
 
(b)
stating the amount that would be recoverable under the proposed
 
 
order,
 
 
(c)
setting out the terms of the proposed order,
 
 
(d)
if the account is a joint account, setting out the Secretary of State’s
35
 
duty to make an assessment as to the liable person’s beneficial
 
 
interest and the presumption that applies (see paragraph 4 ), and
 
 
(e)
identifying, for the benefit of the liable person, the recoverable
 
 
amount to which the order relates.
 

Page 109

 
(2)
The notice must invite the liable person and, in the case of a joint account,
 
 
each other account holder—
 
 
(a)
to make representations about the terms of the proposed order, and
 
 
(b)
in the case of a joint account, to make representations about the
 
 
liable person’s beneficial interest in amounts in the account.
5
 
(3)
The notice must set out the means by which, and the period within which,
 
 
representations may be made.
 
 
(4)
The period must be a period of at least 1 month beginning with the day
 
 
after the day on which the notice is given.
 
 
(5)
The Secretary of State must—
10
 
(a)
consider representations made in accordance with the notice, and
 
 
(b)
in light of any representations —
 
 
(i)
in the case of a joint account, make the assessment required
 
 
under paragraph 4 (1) , and
 
 
(ii)
in any case, decide whether, and in what terms, to make a
15
 
direct deduction order in respect of the account.
 
 
(6)
A notice under sub-paragraph (1) may be given to the bank before it is
 
 
given to the other persons to whom it is required to be given under that
 
 
sub-paragraph (and for the effect of giving the notice to the bank see
 
 
paragraph 11 (restrictions on accounts)).
20
 
(7)
Where a notice is given to the bank in reliance on sub-paragraph (6) , the
 
 
notice must be given to the other persons as soon as reasonably practicable
 
 
after being given to the bank.
 
 
(8)
If, following the giving of a notice under this paragraph, the Secretary of
 
 
State decides not to make a direct deduction order, the Secretary of State
25
 
must, as soon as reasonably practicable, notify every person given a notice
 
 
under sub-paragraph (1) of the decision.
 

Amounts of deductions

 
 
6
(1)
The Secretary of State may make a direct deduction order only if satisfied
 
 
on the basis of information received by virtue of paragraphs 3 and 5 that
30
 
the terms of the order—
 
 
(a)
will not cause the liable person, any other account holder, or any
 
 
person within sub-paragraph (2) to suffer hardship in meeting
 
 
essential living expenses, and
 
 
(b)
are otherwise fair in all the circumstances.
35
 
(2)
A person is within this sub-paragraph if—
 
 
(a)
they live with the liable person, or any other account holder, for
 
 
some or all of the time, or
 
 
(b)
they are financially dependent on the liable person or any other
 
 
account holder.
40

Page 110

 
(3)
The total amount of deductions to be made under a regular direct deduction
 
 
order in relation to any period of 1 month must not exceed 40% of the
 
 
relevant amount.
 
 
(4)
For the purposes of sub-paragraph (3) , the “relevant amount” is the amount
 
 
that the Secretary of State reasonably expects to be credited to the account
5
 
in question in (or in respect of) a typical month during the period for which
 
 
the order will have effect, having regard to all statements given to the
 
 
Secretary of State in relation to the account (see paragraphs 3 (2) and 15 (1) ).
 
 
(5)
The Secretary of State must ensure that the amount to be deducted and
 
 
paid to the Secretary of State under a direct deduction order does not
10
 
exceed the recoverable amount to which the order relates.
 

Content and effect of direct deduction orders

 
 
7
(1)
A regular direct deduction order must specify—
 
 
(a)
the amounts to be deducted (see paragraph 6 ),
 
 
(b)
when those amounts are to be deducted and paid to the Secretary
15
 
of State, and
 
 
(c)
the penalties that may be imposed for a failure to comply (see
 
 
paragraph 20 ).
 
 
(2)
A regular direct deduction order may specify different amounts to be
 
 
deducted at different times.
20
 
(3)
A lump sum direct deduction order must specify—
 
 
(a)
the amount to be deducted,
 
 
(b)
when the amount is to be deducted and paid to the Secretary of
 
 
State, and
 
 
(c)
the penalties that may be imposed for a failure to comply (see
25
 
paragraph 20 ).
 
 
(4)
A direct deduction order may not require an amount to be deducted from
 
 
a person’s account before the end of the period of 1 month beginning with
 
 
the day after the day on which the Secretary of State complies with
 
 
paragraph 1 (7) .
30
 
(5)
A bank must comply with a direct deduction order.
 

Bank’s administrative costs

 
 
8
(1)
A direct deduction order may include provision for the bank to deduct
 
 
from the liable person’s account an amount specified in, or calculated in
 
 
accordance with, the order, for the purposes of meeting costs reasonably
35
 
incurred by the bank in complying with the order.
 
 
(2)
A bank may deduct the costs to which they are entitled under a direct
 
 
deduction order immediately prior to making the deduction which is to
 
 
be paid to the Secretary of State under the order.
 

Page 111

 
(3)
In complying with paragraph 6 (1) and (3) in relation to a direct deduction
 
 
order the Secretary of State must take account of any deductions to be
 
 
made under the order by virtue of sub-paragraph (1) .
 

Insufficient funds

 
 
9
(1)
Where the amount in an account is lower than the amount to be deducted
5
 
in accordance with a lump sum direct deduction order at the time that the
 
 
bank is (apart from this sub-paragraph) required to make the deduction—
 
 
(a)
no deduction is to be made, and
 
 
(b)
the bank must notify the Secretary of State as soon as possible.
 
 
(2)
Where the amount in an account is lower than the amount to be deducted
10
 
in accordance with a regular direct deduction order at the time that the
 
 
bank is (apart from this sub-paragraph) required to make the deduction—
 
 
(a)
the order is to be read as requiring the deduction and payment to
 
 
the Secretary of State to take place on the same day the following
 
 
week, and
15
 
(b)
if, on that day, the amount in the account is lower than the amount
 
 
to be deducted in accordance with the order—
 
 
(i)
no deduction is to be made, and
 
 
(ii)
the bank must notify the Secretary of State as soon as
 
 
possible.
20
 
(3)
References in this paragraph to the amount to be deducted in accordance
 
 
with a direct deduction order include any amounts to be deducted in respect
 
 
of a bank’s costs by virtue of provision under paragraph 8 (1) .
 

Non-working days

 
 
10
(1)
If (apart from this paragraph) a bank would be required to make a
25
 
deduction and payment under a direct deduction order on a day that is
 
 
not a working day, the obligation to make the deduction and payment
 
 
applies in relation to the next working day after that day.
 
 
(2)
In this paragraph, “working day” means any day other than—
 
 
(a)
Saturday or Sunday, or
30
 
(b)
a day which is a bank holiday under the Banking and Financial
 
 
Dealings Act 1971 in any part of the United Kingdom.
 

Restrictions on accounts

 
 
11
(1)
Where a notice under paragraph 5 (a “pre-deduction notice”) relating to a
 
 
proposed lump sum direct deduction order, or a lump sum direct deduction
35
 
order under paragraph 1, is given to a bank in relation to a liable person’s
 
 
account, the bank must—
 
 
(a)
secure that no transaction takes place (except for any deduction
 
 
under the order) which would result in the amount in the account
 
 
falling below the specified amount, or, if the amount in the account
40
 
is already below that amount, falling any further, or
 

Page 112

 
(b)
take the action set out in sub-paragraph (2).
 
 
(2)
The action is to—
 
 
(a)
transfer the specified amount, or the amount in the account if that
 
 
is less than the specified amount, from the account into a different
 
 
account (a “hold account”) created by the bank for the sole purpose
5
 
of holding that transferred amount, and
 
 
(b)
secure that no transaction takes place (except for any deduction
 
 
under the order) which would result in the amount in the hold
 
 
account falling below the amount transferred.
 
 
(3)
Where a bank takes the action set out in sub-paragraph (2) in relation to
10
 
a lump sum direct deduction order, the order is to be read as if it required
 
 
the deduction to be made from the hold account.
 
 
(4)
A bank must ensure that taking the action set out in sub-paragraph (2)
 
 
does not cause any disadvantage to the liable person, and in the case of a
 
 
joint account, any other account holder, that the liable person, and any
15
 
other account holder, would not have experienced if the bank had instead
 
 
acted in accordance with sub-paragraph (1) (a) .
 
 
(5)
The requirements in sub-paragraph (1) cease to apply when—
 
 
(a)
in relation to a pre-deduction notice, a notice is given to the bank
 
 
under paragraph 5 (8) (notice of decision not to make a direct
20
 
deduction order) or a direct deduction order is given to the bank
 
 
under paragraph 1 ;
 
 
(b)
in relation to a direct deduction order—
 
 
(i)
all the deductions under the order have been made, or
 
 
(ii)
the order is revoked.
25
 
(6)
In this paragraph, “specified” means specified in a pre-deduction notice or
 
 
direct deduction order.
 

Applications to vary

 
 
12
(1)
Any holder of an account to which a direct deduction order applies may
 
 
apply to the Secretary of State to vary the order.
30
 
(2)
The Secretary of State must give any other holders of the account an
 
 
opportunity to make representations in relation to the application.
 
 
(3)
The Secretary of State must notify the applicant and any other account
 
 
holders of the Secretary of State’s decision on the application.
 

Variation

35
 
13
(1)
The Secretary of State may vary a direct deduction order (whether after an
 
 
application by an account holder or otherwise).
 
 
(2)
The provisions in this paragraph apply in relation to any variation of a
 
 
direct deduction order, including one that results from a review under
 
 
paragraph 18 .
40

Page 113

 
(3)
Where the Secretary of State proposes to vary a direct deduction order
 
 
other than under sub-paragraph (7) , the Secretary of State must give—
 
 
(a)
the liable person, and
 
 
(b)
in the case of a joint account, each of the other account holders,
 
 
an opportunity to make representations about the proposed variation.
5
 
(4)
The Secretary of State may comply with sub-paragraph (3) at the same time
 
 
as complying with paragraph 12 (2) .
 
 
(5)
A variation to a direct deduction order takes effect when the Secretary of
 
 
State gives the varied order to the bank or, if later, in accordance with the
 
 
terms of the order as varied.
10
 
(6)
The Secretary of State must give a copy of the varied order to the liable
 
 
person and, in the case of a joint account holder, each other account holder.
 
 
(7)
The Secretary of State may vary a direct deduction order so that the order
 
 
applies to another account held by the liable person (including an account
 
 
administered by a different bank) only if—
15
 
(a)
the variation is requested by the liable person, and
 
 
(b)
if the other account is a joint account, each of the other account
 
 
holders consents.
 
 
(8)
Where a direct deduction order is varied under sub-paragraph (7) —
 
 
(a)
if the order is varied so that it applies to an account administered
20
 
by another bank—
 
 
(i)
the reference in sub-paragraph (5) to “the bank” is to the
 
 
bank which administers that account, and
 
 
(ii)
the Secretary of State must notify the bank given the original
 
 
order of the effect of the variation, and
25
 
(b)
if the order is varied so that it applies to a joint account—
 
 
(i)
the requirement in sub-paragraph (6) is to give a copy of
 
 
the order to each other holder of that joint account, and
 
 
(ii)
if the original order applied to a joint account, the Secretary
 
 
of State must notify each other holder of that joint account
30
 
of the effect of the variation.
 
 
(9)
The steps set out in paragraphs 3 to 5 do not apply to a decision to vary
 
 
a direct deduction order.
 

Revocation of direct deduction order

 
 
14
(1)
The Secretary of State may revoke a direct deduction order.
35
 
(2)
The Secretary of State must revoke a direct deduction order as soon as
 
 
reasonably practicable after becoming aware that—
 
 
(a)
the recoverable amount has been recovered, or
 
 
(b)
the liable person to whom the order relates has died.
 
 
(3)
Where the Secretary of State revokes a direct deduction order, the Secretary
40
 
of State must give a notice of the revocation to—
 

Page 114

 
(a)
the bank to which the order was given,
 
 
(b)
the liable person (apart from in a case within sub-paragraph (2) (b) ),
 
 
and
 
 
(c)
in the case of a joint account, each of the other account holders.
 

Further information notices

5
 
15
(1)
For the purposes of determining whether to revoke or vary a direct
 
 
deduction order, the Secretary of State may give a bank a notice (a “further
 
 
information notice”) requiring the bank—
 
 
(a)
to give the Secretary of State statements for an account held by the
 
 
liable person covering—
10
 
(i)
the 3 months immediately before the notice was given, or
 
 
(ii)
such longer period, ending immediately before the notice
 
 
was given, as may be specified in the notice;
 
 
(b)
to take the steps set out in paragraphs (a) to (c) of paragraph 3 (5) .
 
 
(2)
Sub-paragraphs (6) to (8) and (11) of paragraph 3 apply in relation to a
15
 
further information notice as they apply in relation to a notice under that
 
 
paragraph.
 
 
(3)
Before giving a further information notice to a bank requiring statements
 
 
to be given in respect of a joint account, the Secretary of State must notify
 
 
each account holder other than the liable person—
20
 
(a)
that the notice will be given, and
 
 
(b)
of the effect of the notice.
 
 
(4)
A further information notice may be given to the bank before, at the same
 
 
time as or after the Secretary of State complies with paragraph 13 (3) .
 

Suspension of direct deduction orders

25
 
16
(1)
The Secretary of State may suspend and re-start the requirement to make
 
 
deductions and payments under a regular direct deduction order at any
 
 
time by notifying the bank to which the order was given.
 
 
(2)
The Secretary of State must notify the liable person and, in the case of a
 
 
joint account, each other account holder, if the requirement is suspended
30
 
or re-started under this paragraph.
 
 
(3)
Where the requirement is suspended for a continuous period of 2 years
 
 
the regular direct deduction order in question is to be treated as having
 
 
been revoked at the end of that period.
 
 
(4)
Where a regular direct deduction order is treated as having been revoked
35
 
by virtue of sub-paragraph (3) , the Secretary of State must give notice to
 
 
that effect to—
 
 
(a)
the bank to which the order was given,
 
 
(b)
the liable person, and
 
 
(c)
in the case of a joint account, each of the other account holders.
40

Page 115

 
(5)
Sub-paragraph (3) does not prevent the Secretary of State making a further
 
 
regular direct deduction order in respect of the same liable person and
 
 
account.
 

Cessation on death of liable person

 
 
17
A bank ceases to be subject to a direct deduction order on becoming aware
5
 
of the liable person’s death.
 

Reviews

 
 
18
(1)
This paragraph applies where the Secretary of State—
 
 
(a)
makes a direct deduction order,
 
 
(b)
varies a direct deduction order, or
10
 
(c)
decides not to vary a direct deduction order in response to an
 
 
application under paragraph 12 .
 
 
(2)
Any of the following persons (“relevant persons”) may apply to the
 
 
Secretary of State for a review of the decision to make, to vary or not to
 
 
vary the order—
15
 
(a)
the liable person to whom the order relates, and
 
 
(b)
in the case of a joint account, any other account holder.
 
 
(3)
An application under sub-paragraph (2) must be made before the end of
 
 
the period of 1 month beginning with the day after the day on which the
 
 
applicant was—
20
 
(a)
given a copy of the order or the order as varied, or
 
 
(b)
notified of the decision not to vary the order.
 
 
(4)
An application for a review under this paragraph may not be made on, or
 
 
include, any ground relating to the existence or amount of a recoverable
 
 
amount (unless the amount is said to be incorrectly stated in the order).
25
 
(5)
On a review, the Secretary of State may—
 
 
(a)
uphold the decision,
 
 
(b)
vary the order, or
 
 
(c)
revoke the order.
 
 
(6)
After a review has been carried out, the Secretary of State must notify the
30
 
applicant and other relevant persons of the outcome of the review.
 
 
(7)
See paragraph 13 for provisions about varying a direct deduction order.
 

Appeals

 
 
19
(1)
A relevant person may appeal to the First-tier Tribunal against—
 
 
(a)
the making of a direct deduction order,
35
 
(b)
the variation of a direct deduction order, or
 
 
(c)
a refusal to vary a direct deduction order after a request by a
 
 
relevant person.
 

Page 116

 
(2)
A relevant person may not appeal under sub-paragraph (1) in relation to
 
 
a matter within paragraph (a) , (b) or (c) of that sub-paragraph unless they—
 
 
(a)
made representations in accordance with paragraph 5 , 12 or 13 (or,
 
 
in relation to a variation of a direct deduction order, requested the
 
 
variation), or
5
 
(b)
sought a review under paragraph 18 ,
 
 
in relation to the matter.
 
 
(3)
Sub-paragraph (2) does not apply where a direct deduction order is varied
 
 
on a review under paragraph 18 .
 
 
(4)
An appeal under sub-paragraph (1) may not be brought after the end of—
10
 
(a)
the period of 1 month beginning with the day after the day on
 
 
which the appellant was—
 
 
(i)
given a copy of the direct deduction order, or the varied
 
 
direct deduction order, in a case within sub-paragraph (1)(a)
 
 
or (b), or
15
 
(ii)
notified under paragraph 12(3) or, where a review was
 
 
sought, paragraph 18(6), in a case within sub-paragraph
 
 
(1)(c), or
 
 
(b)
such longer period (if any) as the Tribunal considers reasonable in
 
 
all the circumstances.
20
 
(5)
An appeal under sub-paragraph (1) may not be made on, or include, any
 
 
ground relating to the existence or amount of a recoverable amount (unless
 
 
the amount is said to be incorrectly stated in the order).
 
 
(6)
Where a relevant person appeals under this paragraph in relation to a
 
 
direct deduction order, the First-tier Tribunal may suspend the requirement
25
 
on the bank to which the order has been given to give effect to the order
 
 
for some or all of the time until the appeal (including any onward appeal)
 
 
is withdrawn, abandoned or finally determined.
 
 
(7)
On an appeal under sub-paragraph (1) , the First-tier Tribunal may—
 
 
(a)
amend the direct deduction order;
30
 
(b)
revoke the direct deduction order;
 
 
(c)
dismiss the appeal.
 
 
(8)
In this paragraph, “relevant person” has the meaning that it has in
 
 
paragraph 18 .
 

Part 2

35

Penalties

 

Penalties for failure to comply

 
 
20
(1)
If the Secretary of State has reasonable grounds to believe that a bank—
 
 
(a)
has failed to comply with a requirement imposed by or under this
 
 
Schedule, and
40
 
(b)
has no reasonable excuse for the failure,
 

Page 117

 
the Secretary of State may impose on the bank a penalty of £500.
 
 
(2)
The Secretary of State may not impose a penalty before giving the bank
 
 
an opportunity to make representations about their compliance.
 
 
(3)
The Secretary of State imposes a penalty by giving the bank a notice of the
 
 
penalty (a “penalty notice”).
5
 
(4)
A penalty notice must state—
 
 
(a)
the amount of the penalty,
 
 
(b)
the period within which it must be paid, and
 
 
(c)
the bank’s right to appeal against the penalty.
 
 
(5)
The Secretary of State may vary or revoke a penalty notice by giving a
10
 
notice to that effect to the bank.
 

Recovery of penalties

 
 
21
(1)
In England and Wales, a penalty imposed under this Part of this Schedule
 
 
is recoverable—
 
 
(a)
if the county court so orders, as if it were payable under an order
15
 
of that court;
 
 
(b)
if the High Court so orders, as if it were payable under an order
 
 
of that court.
 
 
(2)
In Scotland, a penalty imposed under this Part of this Schedule may be
 
 
enforced in the same manner as an extract registered decree arbitral bearing
20
 
a warrant for execution issued by the sheriff court of any sheriffdom in
 
 
Scotland.
 

Appeal against a penalty notice

 
 
22
(1)
A bank on which a penalty is imposed under paragraph 20 may appeal to
 
 
the First-tier Tribunal against the imposition of the penalty.
25
 
(2)
An appeal under sub-paragraph (1) may not be brought after the end of—
 
 
(a)
the period of 1 month beginning with the date on which the penalty
 
 
notice in relation to the penalty being appealed was given, or
 
 
(b)
such longer period (if any) as the Tribunal considers reasonable in
 
 
all the circumstances.
30
 
(3)
On an appeal under sub-paragraph (1) the Tribunal may confirm or quash
 
 
the decision to impose the penalty.
 
 
(4)
If an appeal is brought under sub-paragraph (1) , the penalty which is the
 
 
subject of the appeal is not payable until the appeal (including any onward
 
 
appeal) is determined or withdrawn.
35

Page 118

Part 3

 

General

 

Deputies

 
 
23
(1)
This paragraph applies where a person (a “deputy”) acts on behalf of an
 
 
account holder (including a liable person) in relation to their account by
5
 
virtue of—
 
 
(a)
a power of attorney, or
 
 
(b)
an appointment by, or an order of, a court.
 
 
(2)
The following provisions apply in relation to the deputy of the account
 
 
holder as they apply in relation to the account holder—
10
 
(a)
paragraph 1 (7) ;
 
 
(b)
paragraph 3 (9) ;
 
 
(c)
paragraph 5 ;
 
 
(d)
paragraph 11 (1) ;
 
 
(e)
paragraph 12 ;
15
 
(f)
paragraph 13 (3) , (6) and (8) (b) ;
 
 
(g)
paragraph 14 (3) ;
 
 
(h)
paragraph 15 (3) ;
 
 
(i)
paragraph 16 (2) or (4) ;
 
 
(j)
paragraph 18 ;
20
 
(k)
paragraph 19 .
 
 
(3)
Paragraph 13 (7) (a) and (b) applies in relation to the deputy of the account
 
 
holder instead of the account holder.
 
 
(4)
Sub-paragraph (5) applies where—
 
 
(a)
a bank is given—
25
 
(i)
an account information notice or a general information notice
 
 
under paragraph 3 ,
 
 
(ii)
a notice under paragraph 5 ,
 
 
(iii)
a further information notice under paragraph 15 , or
 
 
(iv)
a direct deduction order, and
30
 
(b)
a deputy acts on behalf of an account holder of an account to which
 
 
the notice or order relates.
 
 
(5)
The bank must give the Secretary of State the name and correspondence
 
 
address that it holds for that deputy (unless the bank has already provided
 
 
that information).
35

Interpretation

 
 
24
(1)
In this Schedule—
 
 
“bank” means a person who is authorised—
 
 
(a)
to accept deposits, or
 

Page 119

 
(b)
to issue electronic money;
 
 
“direct deduction order” means a regular direct deduction order or a
 
 
lump sum direct deduction order;
 
 
“joint account” means an account held by more than one person;
 
 
“lump sum direct deduction order” has the meaning given by
5
 
paragraph 1 (5) ;
 
 
“regular direct deduction order” has the meaning given by paragraph
 
 
1 (4) ;
 
 
“sole account” means an account held by one person.
 
 
(2)
For the purposes of paragraph (a) in the definition of “bank” in
10
 
sub-paragraph (1) —
 
 
(a)
the reference to accepting deposits is to carrying on the regulated
 
 
activity of accepting deposits for the purposes of the Financial
 
 
Services and Markets Act 2000 (see section 22 of that Act and article
 
 
5 of the Financial Services and Markets Act 2000 (Regulated
15
 
Activities) Order 2001 (S.I. 2001/544)), and
 
 
(b)
a person is authorised to accept deposits if they are an authorised
 
 
person or an exempt person in relation to the carrying on of that
 
 
activity for the purposes of the Financial Services and Markets Act
 
 
2000.
20
 
(3)
For the purposes of paragraph (b) in the definition of “bank” in
 
 
sub-paragraph (1) , a person is authorised to issue electronic money if—
 
 
(a)
the person is an electronic money institution, and
 
 
(b)
the person is authorised or registered under Part 2 of the Electronic
 
 
Money Regulations 2011 (S.I. 2011/99) in relation to carrying on the
25
 
activity of issuing electronic money.
 
 
(4)
In sub-paragraph (3) , “electronic money” and “electronic money institution”
 
 
have the meanings given by regulation 2(1) of those Regulations (and
 
 
references to the issue of electronic money are to be construed in accordance
 
 
with those Regulations).
30
 
(5)
In this Schedule, references to an amount in an account are to an amount
 
 
standing to the credit of the account.
 
 
(6)
In this Schedule, references to a person holding an account include
 
 
references to—
 
 
(a)
a person holding an account jointly with one or more other persons,
35
 
(b)
a person being a signatory, or one of the signatories, to an account,
 
 
and
 
 
(c)
an account being, in any other way, in the person’s name,
 
 
and “holder” is to be read accordingly.
 

Regulations

40
 
25
(1)
Regulations may make further provision about direct deduction orders.
 

Page 120

 
(2)
Regulations under this paragraph may, among other things, make
 
 
provision—
 
 
(a)
about how notices and orders are to be given by the Secretary of
 
 
State under this Schedule;
 
 
(b)
about how notices and information are to be given to the Secretary
5
 
of State under this Schedule;
 
 
(c)
about the calculation of amounts to be deducted, including—
 
 
(i)
about establishing whether deductions would cause a person
 
 
to suffer hardship in meeting essential living expenses, and
 
 
(ii)
about amounts which are, or are not, to be taken into account
10
 
in calculating the amounts credited to an account for the
 
 
purposes of paragraph 6 (3) ;
 
 
(d)
setting a maximum percentage that is less than 40% for the purposes
 
 
of paragraph 6 (3) in some or all cases;
 
 
(e)
amending the amount for the time being specified in paragraph
15
 
20 (1) to reflect a change in the value of money;
 
 
(f)
about the duties of banks in relation to direct deduction orders,
 
 
including before a direct deduction order is made;
 
 
(g)
about costs which a bank may recover by virtue of paragraph 8 or
 
 
from the Secretary of State;
20
 
(h)
about the interaction between direct deduction orders under this
 
 
Schedule and similar orders under any other enactment.
 
 
(3)
Regulations under this paragraph may, among other things, apply this
 
 
Schedule, as it applies to banks, to other types of person who provide
 
 
financial products or services (including products or services that operate
25
 
by reference to cryptoassets or any similar product or service).
 
 
(4)
In sub-paragraph (3) , “cryptoasset” has the meaning given in section 84A
 
 
of the Proceeds of Crime Act 2002.
 
 
(5)
Before making relevant regulations in reliance on sub-paragraph (2) (a) , (b) ,
 
 
(f) or (g) , the Secretary of State must consult—
30
 
(a)
persons who appear to the Secretary of State to represent the
 
 
interests of banks, and
 
 
(b)
such other persons (if any) as the Secretary of State considers
 
 
appropriate.
 
 
(6)
Before making relevant regulations in reliance on sub-paragraph (3) , the
35
 
Secretary of State must consult—
 
 
(a)
persons who appear to the Secretary of State to represent the
 
 
interests of persons to whom provisions about direct deduction
 
 
orders would be applied by the regulations, and
 
 
(b)
such other persons (if any) as the Secretary of State considers
40
 
appropriate.
 
 
(7)
In this paragraph, “relevant regulations” means—
 
 
(a)
the first regulations made in reliance on the provisions in question,
 
 
and
 

Page 121

 
(b)
any subsequent regulations made in reliance on those provisions
 
 
which—
 
 
(i)
impose new duties on banks, or
 
 
(ii)
make changes to existing duties or provisions which, in the
 
 
opinion of the Secretary of State, are more than minor.”
5
 
Schedule 6
Section 93
 

Disqualification from driving

 
 
The Schedule to be inserted in the Social Security Administration Act 1992 after
 
 
Schedule 3ZA (inserted by section 92 (3) of this Act) is—
 
 
“Schedule 3ZB
Section 80D
10

Disqualification from driving

 

Suspended DWP disqualification orders

 
 
1
(1)
This Schedule applies where—
 
 
(a)
the Secretary of State has sought to recover a recoverable amount
 
 
from a liable person, and
15
 
(b)
some or all of the amount has not been recovered.
 
 
(2)
Where the amount still to be recovered is at least £1,000, the Secretary of
 
 
State may apply to the court for a suspended DWP disqualification order
 
 
(but see sub-paragraph (7) ).
 
 
(3)
A suspended DWP disqualification order is an order—
20
 
(a)
setting out terms of repayment with which the liable person must
 
 
comply, and
 
 
(b)
stating that the liable person may be subject to an immediate DWP
 
 
disqualification order if the person fails to comply with the terms
 
 
of repayment.
25
 
(4)
Subject to sub-paragraph (6) , the court must make a suspended DWP
 
 
disqualification order if the court is satisfied, on the balance of probabilities,
 
 
that the liable person has, without reasonable excuse, not paid the
 
 
recoverable amount.
 
 
(5)
The terms of repayment must include terms for the payment of any costs
30
 
awarded by the court to the Secretary of State relating to the order.
 
 
(6)
The court may not make a suspended DWP disqualification order if the
 
 
court considers that the liable person—
 
 
(a)
needs a driving licence to earn a living, or
 
 
(b)
has another essential need for a driving licence.
35

Page 122

 
(7)
The Secretary of State may apply for a second or subsequent suspended
 
 
DWP disqualification order in relation to a recoverable amount even if the
 
 
amount still to be recovered has fallen to less than £1,000.
 
 
(8)
A suspended DWP disqualification order ceases to have effect when—
 
 
(a)
revoked under paragraph 4 , or
5
 
(b)
the Secretary of State has recovered the whole of the recoverable
 
 
amount and the costs mentioned in sub-paragraph (5) from the
 
 
liable person.
 
 
(9)
Before determining an application under this paragraph the court must
 
 
give the Secretary of State and the liable person an opportunity to be heard.
10
 
(10)
In this Schedule—
 
 
“the court” means—
 
 
(a)
in England and Wales, a magistrates’ court, and
 
 
(b)
in Scotland, a sheriff or a summary sheriff;
 
 
“driving licence” means a licence to drive a motor vehicle granted
15
 
under Part 3 of the Road Traffic Act 1988.
 

Immediate DWP disqualification orders

 
 
2
(1)
Subject to sub-paragraph (6) , if a liable person fails to comply with terms
 
 
of repayment in a suspended DWP disqualification order, the Secretary of
 
 
State may apply to the court for an immediate DWP disqualification order.
20
 
(2)
An immediate DWP disqualification order is an order—
 
 
(a)
setting out terms of repayment with which the liable person must
 
 
comply, and
 
 
(b)
disqualifying the liable person from holding or obtaining a driving
 
 
licence for such period as the court considers likely to result in the
25
 
person paying the recoverable amount to the Secretary of State.
 
 
(3)
Subject to sub-paragraph (5) , if the court is satisfied on the balance of
 
 
probabilities that the liable person has failed, without reasonable excuse,
 
 
to comply with terms of repayment in a suspended DWP disqualification
 
 
order, the court must make an immediate DWP disqualification order on
30
 
an application under sub-paragraph (1) .
 
 
(4)
The period mentioned in sub-paragraph (2) (b) may not be longer than 2
 
 
years beginning with the day on which the order is made.
 
 
(5)
The court may not make an immediate DWP disqualification order if the
 
 
court is of the opinion that the liable person—
35
 
(a)
needs a driving licence to earn a living, or
 
 
(b)
has another essential need for a driving licence.
 
 
(6)
Where the terms of repayment provide for repayment in instalments, the
 
 
failure to pay a single instalment is not to be regarded as a failure to comply
 
 
with the terms unless the liable person fails to repay the entire recoverable
40
 
amount by the time the final instalment is due.
 

Page 123

 
(7)
The Secretary of State may apply for more than one immediate DWP
 
 
disqualification order in relation to the same suspended DWP
 
 
disqualification order.
 
 
(8)
Before determining an application under this paragraph the court must
 
 
give the Secretary of State and the liable person an opportunity to be heard.
5

Terms of repayment

 
 
3
The court must be satisfied that the terms of repayment set out in a
 
 
suspended or immediate DWP disqualification order are ones with which
 
 
the liable person has the means to comply.
 

Variation and revocation of orders

10
 
4
(1)
On an application by the liable person or the Secretary of State, the court
 
 
may, where some of the recoverable amount to which a suspended or
 
 
immediate DWP disqualification order relates has been recovered, make
 
 
an order varying, or revoking, a suspended or immediate DWP
 
 
disqualification order.
15
 
(2)
But the court may revoke a suspended or immediate DWP disqualification
 
 
order in reliance on sub-paragraph (1) only where the court considers that
 
 
revoking the order will increase the likelihood of the remainder of the
 
 
recoverable amount being recovered.
 
 
(3)
When considering an application under sub-paragraph (1) , the court must
20
 
invite representations from—
 
 
(a)
the Secretary of State, where the application was made by the liable
 
 
person, and
 
 
(b)
the liable person, where the application was made by the Secretary
 
 
of State,
25
 
or give both the Secretary of State and the liable person an opportunity to
 
 
be heard.
 
 
(4)
The court may vary or revoke a suspended or immediate DWP
 
 
disqualification order on an application from the liable person where—
 
 
(a)
the order was made without the liable person being heard despite
30
 
being given an opportunity to be heard under paragraph 1 (9) , and
 
 
(b)
the court considers that the liable person had a good reason for not
 
 
taking advantage of the opportunity to be heard.
 
 
(5)
An application under sub-paragraph (4) must be made within the period
 
 
of 21 days beginning with the day after the day on which the liable person
35
 
is given notice that the order has been made.
 
 
(6)
Before determining an application under this paragraph, the court must
 
 
give the Secretary of State and the liable person an opportunity to be heard.
 
 
(7)
Where the Secretary of State has recovered the whole of the recoverable
 
 
amount and the costs mentioned in paragraph 1 (5) from a liable person
40
 
subject to an immediate DWP disqualification order—
 

Page 124

 
(a)
the Secretary of State must notify the court, and
 
 
(b)
a court officer must make an order (without a hearing) revoking
 
 
the immediate DWP disqualification order.
 
 
(8)
In this paragraph, references to varying a suspended or immediate DWP
 
 
disqualification order include varying the terms of repayment set out in
5
 
the order.
 
 
(9)
In sub-paragraph (7) (b) , “court officer” means a member of the staff of the
 
 
court authorised by the court for the purposes of that sub-paragraph.
 

Holding of driving licence for period of disqualification

 
 
5
(1)
Where the court makes an immediate DWP disqualification order, the
10
 
court—
 
 
(a)
may require the liable person to whom the order relates to give to
 
 
the court by, or on, a specified date any driving licence which the
 
 
liable person holds, and
 
 
(b)
must transfer each driving licence received in accordance with
15
 
paragraph (a) to the Secretary of State.
 
 
(2)
For the purposes of this paragraph, “driving licence” includes any document
 
 
by virtue of which a person is authorised under Part 3 of the Road Traffic
 
 
Act 1988 to drive a motor vehicle in Great Britain.
 

Appeals

20
 
6
(1)
The liable person or the Secretary of State may appeal to the appropriate
 
 
appellate court on a point of law against—
 
 
(a)
a decision to, or not to, make, vary or revoke a DWP disqualification
 
 
order;
 
 
(b)
the terms of a DWP disqualification order.
25
 
(2)
An appeal under this paragraph must be made within the period of 21
 
 
days beginning with the day after the day on which notice of the decision
 
 
to which it relates is given.
 
 
(3)
On an appeal under this paragraph, the appropriate appellate court may—
 
 
(a)
where the appeal relates to a DWP disqualification order that has
30
 
been made—
 
 
(i)
dismiss the appeal,
 
 
(ii)
vary the order in any way that would have been available
 
 
to the court that made it, or
 
 
(iii)
revoke the order, or
35
 
(b)
where the appeal is against a decision not to make a DWP
 
 
disqualification order—
 
 
(i)
dismiss the appeal, or
 
 
(ii)
make a DWP disqualification order that the court could have
 
 
made.
40
 
(4)
In this Schedule, the “appropriate appellate court” means—
 

Page 125

 
(a)
in England and Wales, the Crown Court, and
 
 
(b)
in Scotland, the Sheriff Appeal Court.
 

DWP disqualification orders: further provision

 
 
7
(1)
A court must give the Secretary of State and the liable person notice if—
 
 
(a)
it makes or refuses to make a suspended or immediate DWP
5
 
disqualification order,
 
 
(b)
it makes or refuses to make an order under paragraph 4 , or
 
 
(c)
it allows an appeal against a suspended or immediate DWP
 
 
disqualification order.
 
 
(2)
Notice under this paragraph is to be given to the Secretary of State in such
10
 
manner and to such addresses, and to contain such particulars, as the
 
 
Secretary of State may require.
 
 
(3)
The court may grant permission for an application or an appeal after the
 
 
periods mentioned in paragraphs 4 (5) and 6 (2) (as the case may be) where
 
 
satisfied that there is a compelling reason to do so.
15
 
(4)
Regulations may make provision—
 
 
(a)
for the purposes of enabling the court to assess the matters
 
 
mentioned in paragraphs 1 (6) , 2 (5) and 3 , or
 
 
(b)
about procedure relating to applications to, or appeals from, a
 
 
magistrates’ court in England and Wales under this Schedule.
20
 
(5)
In this paragraph, the reference to “a court” is to “the court” and “the
 
 
appropriate appellate court”.
 

Information sharing

 
 
8
A public authority that holds information about a liable person’s driving
 
 
licence may, on a request by the Secretary of State, disclose that information
25
 
to the Secretary of State for the purpose of facilitating the exercise of the
 
 
Secretary of State’s functions under this Schedule.
 

Northern Ireland licences

 
 
9
(1)
Section 109(1) of the Road Traffic Act 1988 (Northern Ireland licences) has
 
 
effect subject to any provision made by or under this Schedule.
30
 
(2)
For the purposes of that section, the reference in paragraph 2 (2) (b) to
 
 
disqualifying a person from holding or obtaining a driving licence is to be
 
 
read as a reference to disqualifying a person from driving any vehicle
 
 
under Part 3 of the 1988 Act.”
 
Amendments

No amendments available.