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Subject: "s.71 SSAA 1992 in Social Security Legislation Volume III, " First topic | Last topic
cgale
                              

Student welfare benefits adviser, Preston College, lancashire
Member since
07th Jun 2006

s.71 SSAA 1992 in Social Security Legislation Volume III,
Mon 04-Feb-08 04:45 PM

Hi I have ordered our copy of the above but its not yet arrived. Does anyone have access to this - specfically the overpayments and accompanying commentary to the above section they would be willing to let me have access to or fax me? I would be eternally grateful
regards Caroline

  

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Paul_Treloar_
                              

Director of Policy and Services, Disability Alliance, London
Member since
15th Sep 2006

RE: s.71 SSAA 1992 in Social Security Legislation Volume III,
Tue 05-Feb-08 09:06 AM

Here is a C&P from the CPAG online legislation - hope this helps. The numbering is slightly confused I'm afraid because the footnotes referred to at the end come up as normal numbers iyswim.

71.–(1) Where it is determined that, whether fraudulently or otherwise, any person has misrepresented, or failed to disclose, any material fact and in consequence of the misrepresentation or failure–
(a) a payment has been made in respect of a benefit to which this section applies; or

(b) any sum recoverable by or on behalf of the Secretary of State in connection with any such payment has not been recovered,

the Secretary of State shall be entitled to recover the amount of any payment which he would not have made or any sum which he would have received but for the misrepresentation or failure to disclose.

<1 (2) Where any such determination as is referred to in subsection (1) above is made, the person making the determination shall [5 in the case of the Secretary of State or a tribunal, and may in the case of a Commissioner or a court>–

(a) determine whether any, and if so what, amount is recoverable under that subsection by the Secretary of State, and

(b) specify the period during which that amount was paid to the person concerned.]

(3) An amount recoverable under subsection (1) above is in all cases recoverable from the person who misrepresented the fact or failed to disclose it.

(4) In relation to cases where payments of a benefit to which this section applies have been credited to a bank account or other account under arrangements made with the agreement of the beneficiary or a person acting for him, circumstances may be prescribed in which the Secretary of State is to be entitled to recover any amount paid in excess of entitlement; but any such regulations shall not apply in relation to any payment unless before he agreed to the arrangements such notice of the effect of the regulations as may be prescribed was given in such manner as may be prescribed to the beneficiary or to a person acting for him.

(5) <12...>

<1(5A) Except where regulations otherwise provide, an amount shall not be recoverable [12under subsection (1) or under regulations under subsection (4)> above unless the determination in pursuance of which it was paid has been reversed or varied on an appeal or <5 has been revised under section 9 or superseded under section 10 of the Social Security Act 1998.>]

(6) Regulations may provide–

(a) that amounts recoverable under subsection (1) above or regulations under subsection (4) above shall be calculated or estimated in such manner or on such basis as may be prescribed;

(b) for treating any amount paid to any person under an award which is subsequently determined was not payable–

(i) as properly paid; or

(ii) as paid on account of a payment which it is determined should be or should have been made, and for reducing or withholding any arrears payable by virtue of the subsequent determination;

(c) for treating any amount paid to one person in respect of another as properly paid for any period for which it is not payable in cases where in consequence of a subsequent determination–

(i) the other person is himself entitled to a payment for that period; or

(ii) a third person is entitled in priority to the payee to a payment for that period in respect of the other person,

and for reducing or withholding any arrears payable for that period by virtue of the subsequent determination.

(7) Circumstances may be prescribed in which a payment on account made by virtue of section 5(1)(r) above may be recovered to the extent that it exceeds entitlement.

(8) Where any amount paid <8other than an amount paid in respect of child benefit or guardian's allowance,> is recoverable under–

(a) subsection (1) above;

(b) regulations under subsection (4) or (7) above; or

(c) section 74 below,

it may, without prejudice to any other method of recovery, be recovered by deduction from prescribed benefits.

(9) Where any amount paid in respect of a <11couple> is recoverable as mentioned in subsection (8) above, it may, without prejudice to any other method of recovery, be recovered, in such circumstances as may be prescribed, by deduction from prescribed benefits payable to either of them.

(10) Any amount recoverable under the provisions mentioned in subsection (8) above–

(a) if the person from whom it is recoverable resides in England and Wales and the county court so orders, shall be recoverable by execution issued from the county court or otherwise as if it were payable under an order of that court; and

(b) if he resides in Scotland, shall be enforced in like manner as an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom in Scotland.

<2 (10A) Where– [br />
(a) a jobseeker’s allowance is payable to a person from whom any amount is recoverable as mentioned in subsection (8) above; and

(b) that person is subject to a bankruptcy order, a sum deducted from that benefit under that subsection shall not be treated as income of his for the purposes of the Insolvency Act 1986.

(10B) Where–

(a) a jobseeker’s allowance is payable to a person from whom any amount is recoverable as mentioned in subsection (8) above; and

(b) the estate of that person is sequestrated,a sum deducted from that benefit under that subsection shall not be treated as income of his for the purposes of the Bankruptcy (Scotland) Act 1985.]

(11) This section applies to the following benefits–

(a) benefits as defined in section 122 of the Contributions and Benefits Act;

<3(aa)subject to section 71A below, a jobseeker’s allowance;>

<10(ab) state pension credit;>

(b) <4 . . .> income support;

(c) <7 [9…>]:

(d) <7 [9…>];

(e) any social fund payments such as are mentioned in section 138(1)(a) or (2) of the Contributions and Benefits Act; and

(f) child benefit.

<11(12) In this section, "couple" has the meaning given by section 137(1) of the Contributions and Benefits Act.>

NOTE

Where the overpayment was in respect of working families’ tax credit or disabled person’s tax credit, subss. (8), (8A) and (9) were substituted by the Tax Credits Act 1999 as follows with effect from October 5, 1999.

<6 (8) An amount recoverable under subsection (1) above in any year of assessment- [br />
(a) shall be treated for the purposes of Part VI of the Taxes Management Act 1970 (collection and recovery) as if it were tax charged in an assessment and due and payable;
(b) shall be treated for the purposes of section 203(2)(a) of the Income and Corporation Taxes Act 1988 (PAYE) as if it were an underpayment of tax for a previous year of assessment.
(8A) Where-

(a) an amount paid in respect of a claim is recoverable under subsection (1) above; and
(b) a penalty has been imposed under section 9(1) of the Tax Credits Act 1999 (penalties for fraud etc.) on the ground that a person fraudulently or negligently made an incorrect statement or declaration in connection with that claim,
the amount shall carry interest at the rate applicable from the date on which it becomes recoverable until payment.

(9) The rate applicable for the purposes of subsection (8A) above shall be the rate from time to time prescribed under section 178 of the Finance Act 1989 for those purposes]

DERIVATION

Social Security Act 1986, s.53.

AMENDMENTS

1. Social Security (Overpayments) Act 1996, s.1 (July 24, 1996).

2. Jobseekers Act 1995, s. 32(1) (October 7, 1996).

3. Jobseekers Act 1995, Sched. 2, para. 48 (October 7, 1996).

4. Jobseekers Act 1995, Sched. 3 (October 7, 1996).

5. Social Security Act 1998 (July 5, 1999).

6. Tax Credits Act 1999, s. 2(3) and Sched. 2, para. 10(1) (October 5, 1999).

7. Tax Credits Act 1999, s. 2(3) and Sched. 2, para. 10(1) (October 5, 1999).

8. Tax Credits Act 2002 (2002 c. 21) s.51 and sch. 4 para. 2 (April 7, 2003).

9. Tax Credits Act 2002 (2002 c.21) s.60 and sch. 6 (April 8, 2003, subject to the savings provisions in art. 3 of The Tax Credits Act 2002 (Commencement No. 4, Transitional Provisions and Savings) Order 2003 (S.I. 2003 No. 962). The words removed from s.71(11)(c) were “working families’ tax credit” and the words removed from s71(11)(d) were “disabled person’s tax credit”.

10. State Pension Credit Act 2002 (2002 c. 16 ) s. 14 and sch. 2 para. 10 (October 6, 2003).

11. Civil Partnership Act 2004 (2004 c. 33) s.254 and sch. 24, para. 58 (December 5, 2005).

12. Welfare Reform Act 2007 (2007 c. 5) s. 44 (July 3, 2007).


  

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