Social Security Act 1998 (c. 14)

(The document as of February, 2008)

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(i) a specified sum in respect of that amount; and

(ii) specified interest on that sum; and

(c) where that sum is given by paragraph (b) of subsection (3) below, specifying the proportion applied by the Secretary of State for the purposes of that paragraph.

(3) The sum specified in the personal liability notice under subsection (2)(b)(i) above shall be--

(a) in a case where there is, in the opinion of the Secretary of State, no other culpable officer, the whole of the specified amount; and

(b) in any other case, such proportion of the specified amount as, in the opinion of the Secretary of State, the officer's culpability for the failure to pay that amount bears to that of all the culpable officers taken together.

(4) In assessing an officer's culpability for the purposes of subsection (3)(b) above, the Secretary of State may have regard both to the gravity of the officer's fraud or neglect and to the consequences of it.

(5) The interest specified in the personal liability notice under subsection (2)(b)(ii) above shall be at the prescribed rate and shall run from the date on which the notice is issued.

(6) An officer who is served with a personal liability notice shall be liable to pay to the Secretary of State the sum and the interest specified in the notice under subsection (2)(b) above.

(7) Where, after the issue of one or more personal liability notices, the amount of contributions to which this section applies is reduced by a payment made by the body corporate--

(a) the amount that each officer who has been served with such a notice is liable to pay under this section shall be reduced accordingly;

(b) the Secretary of State shall serve on each such officer a notice to that effect; and

(c) where the reduced liability of any such officer is less than the amount that he has already paid under this section, the difference shall be repaid to him together with interest on it at the prescribed rate.

(8) Any amount paid under a personal liability notice shall be deducted from the liability of the body corporate in respect of the specified amount.

(9) In this section--

"contributions" includes any interest or penalty in respect of contributions;
"officer", in relation to a body corporate, means--
(a)
any director, manager, secretary or other similar officer of the body corporate, or any person purporting to act as such; and
(b)
in a case where the affairs of the body corporate are managed by its members, any member of the body corporate exercising functions of management with respect to it or purporting to do so;
"the prescribed rate" means the rate from time to time prescribed by regulations under section 178 of the [1989 c. 26.] Finance Act 1989 for the purposes of the corresponding provision of Schedule 1 to the Contributions and Benefits Act, that is to say--
(a)
in relation to subsection (5) above, paragraph 6(2)(a);
(b)
in relation to subsection (7) above, paragraph 6(2)(b).

121D Appeals in relation to personal liability notices

(1) No appeal shall lie in relation to a personal liability notice except as provided by this section.

(2) An individual who is served with a personal liability notice may appeal to an appeal tribunal against the Secretary of State's decision as to the issue and content of the notice on the ground that--

(a) the whole or part of the amount specified under subsection (2)(a) of section 121C above (or the amount so specified as reduced under subsection (7) of that section) does not represent contributions to which that section applies;

(b) the failure to pay that amount was not attributable to any fraud or neglect on the part of the individual in question;

(d) the opinion formed by the Secretary of State under subsection (3)(a) or (b) of that section was unreasonable.

(3) The Secretary of State shall give a copy of any notice of an appeal under this section, within 28 days of the giving of the notice, to each other individual who has been served with a personal liability notice.

(4) On an appeal under this section, the burden of proof as to any matter raised by a ground of appeal shall be on the Secretary of State.

(5) Where an appeal under this section--

(a) is brought on the basis of evidence not considered by the Secretary of State, or on the ground mentioned in subsection (2)(d) above; and

(b) is not allowed on some other basis or ground,

the appeal tribunal shall either dismiss the appeal or remit the case to the Secretary of State, with any recommendations it sees fit to make, for him to consider whether to revise his decision as to the issue and content of the personal liability notice.

(6) In this section--

"appeal tribunal" means an appeal tribunal constituted under Chapter I of Part I of the Social Security Act 1998;
"officer", in relation to a body corporate, has the same meaning as in section 121C above;
"personal liability notice" has the meaning given by subsection (2) of that section;
"revise" means revise under section 9 of the Social Security Act 1998. "

65 Class 1B contributions: supplemental

(1) After section 143 of the Administration Act there shall be inserted the following section--

" 143A Power to alter Class 1B contributions

(1) Without prejudice to section 141 above, the Secretary of State may at any time, if he thinks it expedient to do so--

(a) with a view to adjusting the level at which the National Insurance Fund stands for the time being and having regard to the sums which may be expected to be paid from the Fund in any future period; or

(b) having regard to the percentage rate specified as the secondary percentage in section 9(2) of the Contributions and Benefits Act,

make an order altering the percentage rate specified as the Class 1B percentage in section 10A(6) of the Contributions and Benefits Act.

(2) No order shall be made under this section so as to increase for any tax year the percentage rate of the Class 1B percentage to a percentage rate more than 2 per cent higher than the percentage rate applicable at the end of the preceding tax year. "

(2) In subsection (5) of section 162 of that Act (destination of contributions), after paragraph (c) there shall be inserted the following paragraph--

" (ca) in the case of Class 1B contributions, 0.9 per cent of the amount estimated to be the aggregate of the emoluments and the amounts of income tax in respect of which those contributions were paid; " .

66 Payments of certain contributions out of the Consolidated Fund

(1) Subsection (4) of section 163 of the Administration Act (general financial arrangements) shall have effect, and shall be deemed always to have had effect, as if--

(a) for the words "a secondary contributor" there were substituted the words "any person"; and

(b) after the words "any secondary Class 1 contributions" there were inserted the words ", or any Class 1A contributions,".

(2) Subsection (2) of section 1 of the [1977 c. 5.] Social Security (Miscellaneous Provisions) Act 1977 (from which subsection (4) of section 163 is derived) shall be deemed to have had effect with the same amendments as from the commencement of the [1991 c. 42.] Social Security (Contributions) Act 1991.

Part III Benefits

Amendments etc. of Contributions and Benefits Act

67 Daily rate of maternity allowance

In subsection (5) of section 35 of the Contributions and Benefits Act (maternity allowance), for paragraphs (a) and (b) there shall be substituted the words "the amount payable by way of that allowance for any day shall be taken as one seventh of the weekly rate of the allowance".

68 Rates of short-term incapacity benefit

For subsection (4) of section 44 of the Contributions and Benefits Act (Category A retirement pension) there shall be substituted the following subsection--

" (4) The weekly rate of the basic pension shall be £64.70 except that, so far as the sum is relevant for the purpose of calculating the lower rate of short-term incapacity benefit under section 30B(3) above, it shall be £62.05.

In this subsection "the lower rate" means the rate payable for the first 196 days of entitlement in any period of incapacity for work. "

69 Validation of certain housing benefit determinations

(1) Subject to subsections (3) and (4) below, in so far as a housing benefit determination made before 18th August 1997 purported to determine that housing benefit was payable in respect of--

(a) charges for medical care, nursing care or personal care; or

(b) charges for general counselling or any other support services,

it shall be deemed to have been validly made if, on the assumption mentioned in subsection (2) below, it would have been so made.

(2) The assumption is that, at all material times, such charges as are mentioned in subsection (1) above were eligible to be met by housing benefit where the claimant's right to occupy the dwelling was conditional on his payment of the charges.

(3) Where the effect of a review carried out on or after 18th August 1997 was to revise the amount of housing benefit payable in respect of any validated charges--

(a) the revision shall be deemed not to have been validly made in so far as it had the effect of increasing that amount; and

(b) housing benefit shall cease to be payable in respect of those charges as from the beginning of the period for which the first payment of the revised amount of benefit was made.

(4) Housing benefit shall not be payable in respect of any validated charges for any period falling after--

(a) 5th April 1998 where the rent is payable at intervals of a whole number of weeks; and

(b) 31st March 1998 in any other case.

(5) In this section--

"the dwelling", in relation to a housing benefit determination, means the dwelling in respect of which the determination was made;
"housing benefit determination" means a determination under section 130 of the Contributions and Benefits Act or the corresponding provisions of the [1986 c. 50.] Social Security Act 1986, or a decision on a review of such a determination;
"medical care" includes treatment or counselling related to mental disorder, mental handicap, physical disablement or past or present alcohol or drug dependence;
"personal care" includes assistance at meal-times or with personal appearance or hygiene;
"validated charges" means charges in respect of which housing benefit is payable only by virtue of subsection (1) above.

70 Discretionary payments out of social fund

(1) For subsection (1) of section 138 of the Contributions and Benefits Act (payments out of social fund) there shall be substituted the following subsection--

" (1) There may be made out of the social fund, in accordance with this Part of this Act--

(a) payments of prescribed amounts, whether in respect of prescribed items or otherwise, to meet, in prescribed circumstances, maternity expenses and funeral expenses; and

(b) payments by way of community care grant, crisis loan or budgeting loan to meet other needs in accordance with directions given or guidance issued by the Secretary of State. "

(2) After subsection (4) of that section there shall be inserted the following subsection--

" (5) In this Part--

"budgeting loan" means a loan awarded in circumstances specified in directions issued by the Secretary of State for the purpose of defraying an intermittent expense;
"community care grant" means a grant awarded in circumstances so specified for the purpose of meeting a need for community care;
"crisis loan" means a loan awarded in circumstances so specified for the purpose of meeting an immediate short term need;

and any reference in this subsection to meeting a need or defraying an expense includes a reference to helping to meet the need or to defray the expense. "

71 Budgeting loans: criteria for making awards

(1) In subsection (1) of section 140 of the Contributions and Benefits Act (social fund: principles of determination), after the word "award" there shall be inserted the words "of a community care grant or a crisis loan".

(2) After that subsection there shall be inserted the following subsection--

" (1A) Subject to subsection (2) below, in determining whether to make an award of a budgeting loan to the applicant, or the amount or value to be awarded, an appropriate officer shall have regard to--

(a) such of the applicant's personal circumstances as are of a description specified in directions issued by the Secretary of State; and

(b) the criteria specified in paragraphs (b) to (e) of subsection (1) above;

but where the criterion mentioned in paragraph (a) above would preclude the award of such a loan, the appropriate officer shall have regard instead to such other criterion as may be specified in directions so issued. "

(3) In subsection (4) of that section, paragraph (e) shall cease to have effect and after paragraph (a) there shall be inserted the following paragraph--

" (aa) that in circumstances specified in the direction an application for an award of a community care grant may be treated as an application for an award of a crisis loan, and vice versa; " .

72 Power to reduce child benefit for lone parents

(1) Regulations may revoke any provision of regulations which prescribes a higher rate of child benefit in the case of a lone parent, notwithstanding anything in section 145(4) of the Contributions and Benefits Act (which precludes regulations from prescribing a rate lower than the rate it replaces).

(2) In this section "lone parent" means a parent who--

(a) has no spouse or is not living with his spouse; and

(b) is not living with any other person as his spouse.

73 Statutory sick pay not precluded by maternity allowance

In paragraph 2(d) of Schedule 11 to the Contributions and Benefits Act (circumstances in which periods of entitlement to statutory sick pay do not arise), the words "(ii) she was entitled to a maternity allowance, or" shall cease to have effect.

Amendments of Administration Act

74 Provision of information

In subsection (1) of section 5 of the Administration Act (regulations about claims for and payments of benefit), there shall be inserted after paragraph (h) the following paragraph--

" (hh) for requiring such person as may be prescribed in accordance with the regulations to furnish any information or evidence needed for a determination whether a decision on an award of benefit to which this section applies--

(i) should be revised under section 9 of the Social Security Act 1998; or

(ii) should be superseded under section 10 of that Act; " .

75 Overpayments out of social fund

(1) After section 71 of the Administration Act there shall be inserted the following section--

" 71ZA Overpayments out of social fund

(1) Subject to subsection (2) below, section 71 above shall apply in relation to social fund payments to which this section applies as it applies in relation to payments made in respect of benefits to which that section applies.

(2) Section 71 above as it so applies shall have effect as if--

(a) in paragraph (a) of subsection (5) and subsection (5A), for the words "reversed or varied on an appeal or has been revised under section 9 or superseded under section 10" there were substituted the words "revised on a review under section 38";

(b) in paragraph (b) of subsection (5), for the words "on the appeal or under that section" there were substituted the words "on the review"; and

(3) This section applies to social fund payments such as are mentioned in section 138(1)(b) of the Contributions and Benefits Act. "

(2) This section applies where such a determination as is mentioned in section 71(1) of the Administration Act is made in relation to a social fund payment--

(a) to which section 71ZA of that Act applies; and

(b) which is made on or after the day on which this section comes into force.

76 Power to anticipate pensions up-rating order

After section 155 of the Administration Act there shall be inserted the following section--

" 155A Power to anticipate pensions up-rating order

(1) This section applies where a statement is made in the House of Commons by or on behalf of the Secretary of State which specifies--

(a) the amounts by which he proposes, by an order under section 150 above, to increase--

(i) the weekly sums that are payable by way of retirement pension; or

(ii) the amount of graduated retirement benefit payable for each unit of graduated contributions; and

(b) the date on which he proposes to bring the increases into force ("the commencing date").

(2) Where, before the commencing date and after the date on which the statement is made, an award is made of a retirement pension or a graduated retirement benefit, the award either may provide for the pension or benefit to be paid as from the commencing date at the increased rate or may be expressed in terms of the rate appropriate at the date of the award. "

Part IV Miscellaneous and supplemental

77 Pilot schemes

(1) Any regulations to which this subsection applies may be made so as to have effect for a specified period not exceeding 12 months.

(2) Any regulations which, by virtue of subsection (1) above, are to have effect for a limited period are referred to in this section as "a pilot scheme".

(3) A pilot scheme may provide that its provisions are to apply only in relation to--

(a) one or more specified areas or localities;

(b) one or more specified classes of person;

(i) by reference to prescribed criteria; or

(ii) on a sampling basis.

(4) A pilot scheme may make consequential or transitional provision with respect to the cessation of the scheme on the expiry of the specified period.

(5) A pilot scheme ("the previous scheme") may be replaced by a further pilot scheme making the same, or similar, provision (apart from the specified period) to that made by the previous scheme.

(6) In so far as a pilot scheme would, apart from this subsection, have the effect of--

(a) treating as capable of work any person who would not otherwise be so treated; or

(b) reducing the total amount of benefit that would otherwise be payable to any person,

it shall not apply in relation to that person.

(7) Subsection (1) above applies to--

(a) regulations made under section 171D of the Contributions and Benefits Act (incapacity for work: persons treated as incapable of work); and

(b) in so far as they are consequential on or supplementary to any such regulations, regulations made under any of the provisions mentioned in subsection (8) below.

(8) The provisions are--

(a) subsection (5)(a) of section 22 of the Contributions and Benefits Act (earnings factors);

(b) section 30C of that Act (incapacity benefit);

(d) subsection (1)(e) of section 124 of that Act (income support) and, so far as relating to income support, subsection (1) of section 135 of that Act (the applicable amount);

(e) Part XIIA of that Act (incapacity for work);

(f) section 61A of the Administration Act and section 31 above (incapacity for work).

(9) A statutory instrument containing (whether alone or with other provisions) a pilot scheme shall not be made unless a draft of the instrument has been laid before Parliament and approved by a resolution of each House of Parliament.

78 Expenditure for facilitating transfer of functions etc

(1) The Secretary of State and the Commissioners of Inland Revenue may incur expenditure in doing anything which in his or their opinion is appropriate for the purpose of facilitating either of the following things, namely--

(a) the transfer to the Commissioners of such of the functions of the Secretary of State as are exercisable by the Contributions Agency; and

(b) the exercise by the Commissioners of those functions.

(2) The powers conferred by subsection (1) above--

(a) shall be exercisable whether or not Parliament has given any approval on which either of the things there mentioned depends; and

(b) shall be without prejudice to any power conferred otherwise than by virtue of that subsection.

(3) Any expenditure incurred under this section shall be defrayed out of money provided by Parliament.

(4) In its application to Northern Ireland, this section shall have effect with the following modifications, namely--

(a) for the first reference to the Secretary of State there shall be substituted a reference to the Department of Health and Social Services for Northern Ireland;

(b) for the reference to such of the functions of the Secretary of State as are exercisable by the Contributions Agency there shall be substituted a reference to such of the functions of that Department as correspond to those functions; and

(c) for the reference to money provided by Parliament there shall be substituted a reference to money appropriated by Measure of the Northern Ireland Assembly.

79 Regulations and orders

(1) Subject to subsection (2) below and paragraph 6 of Schedule 4 to this Act, regulations under this Act shall be made by the Secretary of State.

(2) Regulations with respect to proceedings before the Commissioners (whether for the determination of any matter or for leave to appeal to or from the Commissioners) shall be made by the Lord Chancellor; and where the Lord Chancellor proposes to make regulations under this Act it shall be his duty to consult the Lord Advocate with respect to the proposal.

(3) Powers under this Act to make regulations or orders are exercisable by statutory instrument.

(4) Any power conferred by this Act to make regulations or orders may be exercised--

(a) either in relation to all cases to which the power extends, or in relation to those cases subject to specified exceptions, or in relation to any specified cases or classes of case;

(b) so as to make, as respects the cases in relation to which it is exercised--

(i) the full provision to which the power extends or any less provision (whether by way of exception or otherwise);

(ii) the same provision for all cases in relation to which the power is exercised, or different provision for different cases or different classes of case or different provision as respects the same case or class of case for different purposes of this Act;

(iii) any such provision either unconditionally or subject to any specified condition;

and where such a power is expressed to be exercisable for alternative purposes it may be exercised in relation to the same case for any or all of those purposes.

(5) Powers to make regulations for the purposes of any one provision of this Act are without prejudice to powers to make regulations for the purposes of any other provision.

(6) Without prejudice to any specific provision in this Act, a power conferred by this Act to make regulations includes power to make thereby such incidental, supplementary, consequential or transitional provision as appears to the authority making the regulations to be expedient for the purposes of those regulations.

(7) Without prejudice to any specific provisions in this Act, a power conferred by any provision of this Act to make regulations includes power to provide for a person to exercise a discretion in dealing with any matter.

(8) Any power conferred by this Act to make regulations relating to housing benefit or council tax benefit shall include power to make different provision for different areas or different authorities.

(9) In this section "Commissioner" has the same meaning as in Chapter II of Part I.

80 Parliamentary control of regulations

(1) Subject to the provisions of this section, a statutory instrument containing (whether alone or with other provisions) regulations under--

(a) section 7, 12(2) or 72 above; or

(b) paragraph 12 of Schedule 1, paragraph 9 of Schedule 2 or paragraph 2 of Schedule 5 to this Act,

shall not be made unless a draft of the instrument has been laid before Parliament and been approved by a resolution of each House of Parliament.

(2) A statutory instrument--

(a) which contains (whether alone or with other provisions) regulations made under this Act by the Secretary of State; and

(b) which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament,

shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(3) A statutory instrument--

(a) which contains (whether alone or with other provisions) regulations made under this Act by the Lord Chancellor; and

(b) which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament,

shall be subject to annulment in pursuance of a resolution of either House of Parliament.

81 Reports by Secretary of State

(1) The Secretary of State shall prepare, either annually or at such times or intervals as may be prescribed, a report on the standards achieved by the Secretary of State in the making of decisions against which an appeal lies to an appeal tribunal constituted under Chapter I of Part I.

(2) A copy of every such report shall be laid before each House of Parliament.

82 Financial provisions

(1) There shall be paid out of money provided by Parliament--

(a) any expenditure incurred by the Secretary of State or the Lord Chancellor under or by virtue of this Act; and

(b) any increase attributable to this Act in the sums which under any other Act are payable out of money so provided.

(2) There shall be paid out of or into the Consolidated Fund any increase attributable to this Act in the sums which under any other Act are payable out of or into that Fund.

83 Transitory provisions

Schedule 6 to this Act (which contains transitory provisions) shall have effect.

84 Interpretation: general

In this Act--

"the Administration Act" means the [1992 c. 5.] Social Security Administration Act 1992;
"the Child Support Act" means the [1991 c. 48.] Child Support Act 1991;
"the Contributions and Benefits Act" means the [1992 c. 4.] Social Security Contributions and Benefits Act 1992;
"the Jobseekers Act" means the [1995 c. 18.] Jobseekers Act 1995;
"the Vaccine Damage Payments Act" means the [1979 c. 17.] Vaccine Damage Payments Act 1979;
"prescribe" means prescribe by regulations.

85 Provision for Northern Ireland

An Order in Council under paragraph 1(1)(b) of Schedule 1 to the [1974 c. 28.] Northern Ireland Act 1974 (legislation for Northern Ireland in the interim period) which contains a statement that it is made only for purposes corresponding to those of this Act--

(a) shall not be subject to paragraph 1(4) and (5) of that Schedule (affirmative resolution of both Houses of Parliament); but

(b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

86 Minor and consequential amendments and repeals

(1) The enactments mentioned in Schedule 7 to this Act shall have effect subject to the amendments there specified, being minor amendments and amendments consequential on the provisions of this Act.

(2) The enactments mentioned in Schedule 8 to this Act, which include some that are spent, are hereby repealed to the extent specified in the third column of that Schedule.

87 Short title, commencement and extent

(1) This Act may be cited as the Social Security Act 1998.

(2) This Act, except--

(a) sections 66, 69, 72 and 77 to 85, this section and Schedule 6 to this Act; and

(b) subsection (1) of section 50 so far as relating to a sum which is chargeable to tax by virtue of section 313 of the [1988 c. 1.] Income and Corporation Taxes Act 1988, and subsections (2) to (4) of that section,

shall come into force on such day as may be appointed by order made by the Secretary of State; and different days may be appointed for different provisions and for different purposes.

(3) An order under subsection (2) above may make such savings, or such transitional or consequential provision, as the Secretary of State considers necessary or expedient--

(a) in preparation for or in connection with the coming into force of any provision of this Act; or

(b) in connection with the operation of any enactment repealed or amended by a provision of this Act during any period when the repeal or amendment is not wholly in force.

(4) This Act, except--

(a) section 2 so far as relating to war pensions;

(b) sections 3, 15, 45 to 47, 59, 78 and 85 and this section; and

does not extend to Northern Ireland.

(5) The following provisions of this Act extend to the Isle of Man, namely--

(a) in section 4, subsections (1)(c) and (2)(c);

(b) sections 6 and 7 and Schedule 1 so far as relating to appeals under the Vaccine Damage Payments Act;

(d) paragraphs 5 to 10 of Schedule 7 and section 86(1) so far as relating to those paragraphs; and

(e) section 86(2) and Schedule 8 so far as relating to the Vaccine Damage Payments Act.

SCHEDULES

Sections 5(3) and 7(7).

SCHEDULE 1 Appeal tribunals: supplementary provisions

Tenure of office

1 (1) Subject to the following provisions of this paragraph, the President of appeal tribunals shall hold and vacate office in accordance with the terms of his appointment.

(2) The President shall vacate his office on the day on which he attains the age of 70, but subject to section 26(4) to (6) of the [1993 c. 8.] Judicial Pensions and Retirement Act 1993 (power to authorise continuance in office up to the age of 75).

(3) The President may be removed from office by the Lord Chancellor on the ground of incapacity or misbehaviour.

(4) Where the Lord Chancellor proposes to exercise a power conferred on him by sub-paragraph (3) above, it shall be his duty to consult the Lord Advocate with respect to the proposal.

Remuneration etc.

2 The Secretary of State may pay, or make such payments towards the provision of, such remuneration, pensions or allowances to or in respect of the President as he may determine.

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