Public Authorities (Fraud, Error and Recovery) Act 2025

Schedule 3B (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 (c) specified details about how the account meets the eligibility indicators. (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 (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 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). (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 (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 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 (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. (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 (c) has no reasonable excuse for the failure. (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 (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 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 (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 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. (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 (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 (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. (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; (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— (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 (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) (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; (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 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; (c) amend the period within which all or part of the penalty 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. (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). (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. (19) (1) In this Schedule “relevant benefit” means any of the following benefits— (a) universal credit; (b) employment and support allowance; (c) state pension credit. (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 (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 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, and any 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, or may 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).

Part 2 — Proceeds of Crime Act 2002

2

• (1) The Proceeds of Crime Act 2002 is amended as follows.

• (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 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 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— (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 (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.

Schedule 4

1

The Schedule to be inserted in the Social Security Administration Act 1992 after Schedule 3ZB (inserted by section 96(3) of this Act) is—

Schedule 3ZC (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 investigators in accordance with section 109D(3). (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 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 offence. (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”; (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 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 sought were” there were 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— (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 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— (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 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 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 (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. (2C) In subsection (2B)(c), “enactment” includes— (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. (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. (d) subsection (6) were omitted. (5) 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 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 consists of or includes excluded material,”; (d) paragraph 3 (second set of access conditions) were omitted.

2

The Schedule to be inserted in the Social Security Administration Act 1992 after Schedule 3ZC (inserted by section 80(3) of this Schedule) is—

Schedule 3ZD (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. (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— (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 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— (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); (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 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. (2) (1) The powers granted by a warrant under paragraph 1 are powers to— (a) enter the premises; (b) search the premises; (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 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 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 (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 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 (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. (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. (3) (1) A warrant under paragraph 1 may be executed by any authorised investigator. (2) An authorised investigator may be accompanied by other persons, and bring equipment and materials on to premises, for the purposes of assisting in the exercise of the powers granted by the warrant. (3) A person so accompanying an authorised investigator may also exercise the powers granted by the warrant if the person is in the company, and under 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 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 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 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; (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) An authorised investigator exercising powers granted by a warrant under paragraph 1 may use reasonable force in respect of property if necessary in the exercise of those powers. (7) Sub-paragraphs (8) to (10) apply where, by virtue of paragraph 3(3), a person other than an authorised investigator may exercise powers granted by a warrant under paragraph 1. (8) Where the person is a constable, the constable may use reasonable force in respect of property or persons if necessary in the exercise of the powers. (9) Where the person is not a constable, the person may use reasonable force in respect of property if necessary in the exercise of the powers. (10) But a person may use reasonable force under sub-paragraph (9) only in the company, and under the supervision, of an authorised investigator. (11) Sub-paragraphs (6) to (9) do not permit the use of force to enforce the requirement described in paragraph 2(1)(f). (4) (1) This section applies where a person exercises the power of seizure and removal described in paragraph 2(1)(d). (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. (3) The thing seized may be retained in the possession of the Secretary of State for so long as the Secretary of State considers 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 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 (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 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— (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 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 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 (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— (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. (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. (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 it is returned. (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. (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 a higher executive officer. (7) (1) Where, on an application by an authorised investigator, a sheriff 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— (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 (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— (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, (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— (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— (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 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 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. (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). (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 (b) sub-paragraphs (2) and (3) of this paragraph apply. (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 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 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 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. (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)”. (9) (1) Provision may be made in rules of court about proceedings under this Schedule. (2) Rules of court are, without prejudice to section 305 of the Criminal Procedure (Scotland) Act 1995, to be made by Act of Adjournal. (10) Nothing in this Schedule confers power to— (a) require any person to provide information, or (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. (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 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 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 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. (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) subject to such an undertaking, restriction or obligation since it was first acquired or created for the purposes of journalism. (12) In this Schedule, “personal records” means documentary and 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 (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, or (ii) by reason of an order of a court has responsibilities for the person’s supervision. (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 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. (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, 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— (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— (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. (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 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 section 449 of the Corporation Tax Act 2010. (15) In this Schedule, “confidential professional material” means material to which paragraph 14(2) applies. (16) For the purposes of this Schedule— - “authorised investigators” has the meaning given in paragraph 6; - “premises” includes— a vehicle or vessel, a tent or moveable structure, and 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— a Saturday or a Sunday, or a day which is a bank holiday in Scotland under the Banking and Financial Dealings Act 1971.

Schedule 5

The Schedule to be inserted in the Social Security Administration Act 1992 after Schedule 3 is—

Schedule 6

The Schedule to be inserted in the Social Security Administration Act 1992 after Schedule 3ZA (inserted by section 95(3) of this Act) is—

Core functions of the Minister for the Cabinet Office

Interaction with other public authorities etc

Information notices

Reviews

Information sharing

Amendment of the Investigatory Powers Act 2016

Police and Criminal Evidence Act 1984 etc powers

Disposal of property

Incidents etc

Acting for another public authority

Recovery notices

Restriction on availability of powers: claimed amounts

Penalties etc

Restriction on availability of powers: penalties

Payable amounts

Recovery orders

Direct deduction orders

Accounts which may be subject to a direct deduction order

Requirement for banks to provide information

Joint accounts

Further requirements before making a direct deduction order

Amount of deductions

Content and effect of direct deduction orders

Bank’s administrative costs

Insufficient funds

Restrictions on accounts: banks

Restrictions on accounts: account holders

Applications to vary

Variation

Revocation

Further information notices

Suspension of direct deduction orders

Cessation on death of liable person

Reviews

Appeals

Meaning of “bank” etc

Deputies

Regulations

Deduction from earnings orders

Content and effect of deduction from earnings orders

Requirements before making a deduction from earnings order

Amount of deductions

The employer’s administrative costs

Suspension of deduction from earnings orders

Duty to notify the Minister of change of circumstances

Applications to vary

Variation

Revocation

Reviews

Appeals

Penalty relating to fraud

Application to members etc of bodies

Amount of penalty relating to fraud

Penalty for failing to comply with requirements

Application to members etc of bodies

Amount of penalty for failing to comply with requirements

Procedural rights

Penalty decision notices

Reviews and decisions

Penalty notices

Appeals

Interest

Code of practice

Penalties and criminal proceedings or convictions

Independent review

Independent review: further provision

Authorised officers

Guidance on exercise of investigatory functions

Reports on exercise of functions

Record of exercise of functions

Disclosure of information etc: interaction with external constraints

Crown etc application

Public Sector Fraud Authority and transfer of functions

Interpretation

Regulations

Information notices

Consequential amendments to the Social Security Fraud Act 2001

Eligibility verification

Eligibility verification: independent review

Entry, search and seizure in England and Wales

Entry, search and seizure in Scotland

Entry, search and seizure: Crown application

Offence of delay, obstruction etc

Disposal of property

Amendments to the Criminal Justice and Police Act 2001

Incidents etc in England and Wales

Incidents etc in Scotland

Devolved benefits

DWP offence

Disclosure of information etc: interaction with external constraints

Giving notices etc

Independent review

Enforcement of non-benefit payments

Recovery and enforcement mechanisms

Recovery from bank accounts etc

Disqualification from driving

Code of practice

Rights of audience

Recovery of costs

Recovery: further provision

Offences: non-benefit payments

Penalty as alternative to prosecution: extension to non-benefit payments

Amendments to the Social Security Fraud Act 2001: loss of benefits following penalty

Powers of Scottish Ministers

Application and limitation

Power to make consequential provision

Financial provision

Extent

Commencement

Short title

Introduction

General modifications

Specific modifications

Main powers

Authorised officers

Associated modifications

Procedure

Introduction and status

Constitution

Appointment of non-executive members

Appointment of executive members

Interim chief executive

Appointment of members: eligibility

Terms of membership

Non-executive members: payments

Staffing

Discharge of functions etc

Procedure

Annual report

Seal and evidence

Supplementary powers

Transfer schemes

Amendments to other enactments

The Schedule to be inserted in the Social Security Administration Act 1992 after Schedule 3 is—

The Schedule to be inserted in the Social Security Administration Act 1992 after Schedule 3ZA (inserted by section 95(3) of this Act) is—

Editorial notes