Legalize / United Kingdom / Public General Act

Social Security Administration Act 1992

Type Public General Act

Publication 1992-02-13

Last updated 2026-04-06

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(6) Where a relevant person appeals under this paragraph in relation to a direct deduction order, the First-tier Tribunal may suspend the requirement 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been given to give effect to the order for some or all of the time until the appeal (including any onward appeal) is withdrawn, abandoned or finally determined.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;

(b) revoke the direct deduction order;

(8) In this paragraph, “relevant person” has the meaning that it has in paragraph 18.

Part 2 — Penalties

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

(b) has no reasonable excuse for the failure,

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”).

(4) A penalty notice must state—

(a) the amount of the penalty,

(b) the period within which it must be paid, and

(5) The Secretary of State may vary or revoke a penalty notice by giving a notice to that effect to the bank.

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 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 a warrant for execution issued by the sheriff court of any sheriffdom in Scotland.

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.

(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.

(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.

Part 3 — General

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 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—

(a) paragraph 1(7);

(b) paragraph 3(9);

(d) paragraph 11(1);

(e) paragraph 12;

(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;

(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—

(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

(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).

24

(1) In this Schedule—

“bank” means a person who is authorised—to accept deposits, orto 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 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 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 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.

(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 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).

(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,

(b) a person being a signatory, or one of the signatories, to an account, and

and “holder” is to be read accordingly.

25

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

(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 of State under this Schedule;

(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 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 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;

(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 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—

(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 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 appropriate.

(7) In this paragraph, “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 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.

Schedule 3ZB

1

(1) This Schedule applies where—

(a) the Secretary of State has sought to recover a recoverable amount from a liable person, and

(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—

(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.

(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 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.

(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

(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) In this Schedule—

“the court” means—in England and Wales, a magistrates’ court, andin Scotland, a sheriff or a summary sheriff;

“driving licence” means a licence to drive a motor vehicle granted under Part 3 of the Road Traffic Act 1988.

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.

(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 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 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—

(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 amount by the time the final instalment is due.

(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.

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.

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.

(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 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,

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 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 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 subject to an immediate DWP disqualification order—

(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 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.

5

(1) Where the court makes an immediate DWP disqualification order, the 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 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.

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.

(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 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

(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.

(4) In this Schedule, the “appropriate appellate court” means—

(a) in England and Wales, the Crown Court, and

(b) in Scotland, the Sheriff Appeal Court.

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 disqualification order,

(b) it makes or refuses to make an order under paragraph 4, or

(2) Notice under this paragraph is to be given to the Secretary of State in such 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.

(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.

(5) In this paragraph, the reference to “a court” is to “the court” and “the appropriate appellate court”.

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 to the Secretary of State for the purpose of facilitating the exercise of the Secretary of State’s functions under this Schedule.

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.

(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.

Schedule 3B

Part 1 — Power to require information

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 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 20(1)) 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

(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 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

(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 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.

(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 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 the benefit recipient is eligible, and

(b) include references to payments that have been made or that may be made.

2

(1) The types of persons referred to in paragraph 1(1) are persons—

(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

(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, 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) —

(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. 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.

(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 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 to be construed in accordance with those Regulations).

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.

(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.

4

(1) An eligibility verification notice must specify a period within 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.

(3) An eligibility verification notice must give details about—

(a) the right to seek a review of the notice under paragraph 13,

(b) the right to appeal against the notice under paragraph 14, and

(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 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.

(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 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—

(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.

5

(1) 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

(b) in criminal or civil proceedings relating to such payments,

but not for any other purpose.

(2) Sub-paragraph (3) applies where—

(a) an authorised officer is considering whether to give an information notice under section 109BZA in relation to a person, and

(b) the Secretary of State has been given EVM information that is relevant to the question whether to give the information notice.

(3) The authorised officer must have regard to all information that the Secretary of State has that is relevant to the question whether to give the information notice, including information that is not EVM information.

(4) Sub-paragraph (5) applies where—

(a) the Secretary of State is considering whether to suspend payments of a benefit to a person in accordance with regulations under section 21 or 22 of the Social Security Act 1998, and

(b) the Secretary of State has been given EVM information that is relevant to the question whether to suspend the payments.

(5) The Secretary of State must have regard to all information that the Secretary of State has that is relevant to the question whether to suspend the payments, including information that is not EVM information.

(6) Sub-paragraph (7) applies where—

(a) the Secretary of State is considering whether a decision taken under section 8, 9 or 10 of the Social Security Act 1998 in relation to a person (“the earlier decision”) should be revised or superseded, and

(b) the Secretary of State has been given EVM information that is relevant to the question whether the earlier decision should be revised or superseded.

(7) The Secretary of State must have regard to all information that the Secretary of State has that is relevant to the question whether the earlier decision should be revised or superseded, including information that is not EVM information.

6

(1) This Schedule 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.

(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

(b) any other restriction on the disclosure of information (however imposed).

Part 2 — Penalties

7

(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,

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

(b) if the person has sought a review of the notice under paragraph 13, 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—

(a) the reason for the penalty,

(b) the amount of the penalty, and

(5) A fixed penalty may not exceed £1,000.

(6) The Secretary of State may vary or revoke a fixed penalty notice 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.

(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.

8

(1) The Secretary of State may impose a penalty (a “daily rate 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 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,

(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.

(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 periodic eligibility verification notice.

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

9

(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

(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.

(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.

(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

(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.

10

(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 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

(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,

(b) failed to inform the Secretary of State at that time, and

(4) Condition C is that the person—

(a) discovered the inaccuracy some time later,

(b) failed to take reasonable steps to inform the Secretary of State, and

(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 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—

(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 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—

(a) the reason for the penalty,

(b) the amount of the penalty, and

(9) A penalty under this paragraph may not exceed £3,000.

(10) The Secretary of State may vary or revoke an information penalty notice by giving notice to the person to whom it was given.

11

(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 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 a warrant for execution issued by the sheriff court of any sheriffdom in Scotland.

12

Regulations may amend the amount for the time being specified in paragraph 7(5), 8(4), 9(5) or 10(9) to reflect a change in the value of money.

Part 3 — Reviews

13

(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.

(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,

(b) uphold the notice, or

(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

(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 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 whom the eligibility verification notice was given.

Part 4 — Appeals

14

(1) A person who is given an eligibility verification notice may appeal 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;

(2) An appeal under sub-paragraph (1) may not be brought after the end of—

(a) the period of 14 days beginning with—

(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

(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

(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

(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;

(2) But a person may not appeal against a decision of the Tribunal to increase a daily rate penalty under paragraph 9.

(3) An appeal under sub-paragraph (1) may not be brought after the 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 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;

(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.

16

(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 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 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 — Code of practice

17

(1) The Secretary of State must issue a code of practice about eligibility verification notices before giving the first such notice under this Schedule.

(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;

(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;

(e) reviews under paragraph 13.

(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.

(5) The requirement in sub-paragraph (3) may be satisfied by public consultation carried out before this paragraph comes into force.

18

(1) The Secretary of State may from time to time revise and re-issue the code of practice issued under paragraph 17.

(2) Paragraph 17(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 of practice.

(3) But paragraph 17(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

(b) in the opinion of the Secretary of State, other minor corrections.

Part 6 — General provision and interpretation

19

(1) In this Schedule “relevant benefit” means any of the following benefits—

(a) universal credit;

(b) employment and support allowance;

(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.

20

(1) In this Schedule “relevant account” means a personal account which operates as—

(a) a current account,

(b) a savings account, or

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 individuals other than an account that is provided for purposes relating to a trade, business or profession;

(b) a current account includes any account—

(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,

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)).

(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,

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 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

(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

(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.

21

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

22

In this Schedule—

“benefit” means—any relevant social security benefit as defined in section 121DA(7), other than a state pension, andany payment mentioned in subsection (2)(d) of section 2 of the Employment and Training Act 1973, under arrangements made under that section;

“daily rate penalty” means a penalty imposed under paragraph 8(1);

“eligibility indicators” has the meaning given in paragraph 1(3)(b)(ii) (and see paragraph 3 for conditions that eligibility indicators must meet);

“eligibility verification notice” has the meaning given in paragraph 1(1);

“fixed penalty” means a penalty imposed under paragraph 7(1);

“incorrect payment” , in relation to a benefit, has the meaning 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);

“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);

“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 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;

“state pension” means—a state pension under Part 1 of the Pensions Act 2014;a retirement pension, including a Graduated Retirement Benefit, under Part 2 or 3 of the Social Security Contributions and Benefits Act 1992;a shared additional pension under Part 2 of that Act;

“transaction information”, in relation to an account, means information which—may enable the identification of the subject matter or the amount of a transaction completed through the account, ormay enable the identification of a party to such a transaction who is not a holder of the account,but does not include information which relates to the payment of a relevant benefit into the account;

“the Tribunal” means the First-tier Tribunal.

23

Nothing in this Schedule limits the powers conferred on the Secretary of State by sections 109B and 109BZA (powers to require information) (but this is subject to paragraph 5).

80F

(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 this Part before—

(a) a magistrates’ court,

(b) the county court, and

(2) In this section, “right of audience” and “right to conduct litigation” have the same meanings as in section 119 of the Courts and Legal Services Act 1990.

Recovery of non-benefit payments

71ZI

(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 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 recoverable under section 71(1) if, in relation to the misrepresentation or failure to disclose, P—

(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 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).

71ZJ

(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 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 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.

(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,

(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 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).

(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—

(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 or finally determined.

71ZK

(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—

(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 P was given the notice.

(3) On a review, the Secretary of State may—

(a) uphold the notice,

(b) amend the notice, or

(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

(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 in all the circumstances.

(7) The First-tier Tribunal may—

(a) uphold the notice,

(b) vary the notice, or

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