5. Supplemental N.I.
Delegation of functions N.I. 13. In section 109A of the Administration Act (penalty as alternative to prosecution), after subsection (7) there shall be inserted— “ (7A) Subject to subsection (7B) below, the Department and the Housing Executive may agree that, to the extent determined by the agreement, one may carry out on the other's behalf, or may join in the carrying out of, any of the other's functions under this section.
(7B) Subsection (7A) above shall not authorise any delegation of—
(a) the function of the person by whom any overpayment is recoverable, or to whom it is due, of determining whether or not a notice should be given under subsection (2) above in respect of that overpayment; or
(b) the power to make regulations for the purposes of paragraph (b) of subsection (2) above. ” . Colluding employers N.I. 14. —(1) After section 109A of the Administration Act there shall be inserted— “ Penalty as alternative to prosecution: colluding employers, etc. 109B. — (1) This section applies where it appears to the Department or the Housing Executive—
(a) that there are grounds for instituting proceedings against any person ( “the responsible person”) for an offence (whether or not under this Act) in respect of any conduct; and
(b) that the conduct in respect of which there are grounds for instituting the proceedings is conduct falling within subsection (2) below.
(2) Conduct in respect of which there appear to be grounds for instituting proceedings falls within this subsection if—
(a) those proceedings would be for an offence under this Act in connection with an inquiry relating to the employment of relevant employees or of any one or more particular relevant employees; or
(b) it is conduct which was such as to facilitate the commission of a benefit offence by a relevant employee (whether or not such an offence was in fact committed).
(3) The Department or the Housing Executive may give to the responsible person a written notice—
(a) specifying or describing the conduct in question;
(b) stating that he may be invited to agree to pay a penalty in respect of that conduct;
(c) stating that, if he does so in the manner specified by the Department or the Housing Executive, no criminal proceedings will be instituted against him in respect of that conduct; and
(d) containing such information relating to the operation of this section as may be prescribed.
(4) If the recipient of a notice under subsection (3) above agrees, in the specified manner, to pay the penalty—
(a) the amount of the penalty shall be recoverable as a civil debt, and shall be capable of being set off against an amount of relevant benefit payable to the recipient of the notice; and
(b) no criminal proceedings shall be instituted against him in respect of the conduct to which the notice relates; and section 69(10) above shall apply in relation to an amount recoverable by virtue of paragraph (a) above as it applies in relation to an amount recoverable under the provisions mentioned in section 69(8) above.
(5) The amount of the penalty shall be—
(a) in a case in which the conduct in question falls within paragraph (a) of subsection (2) above but not within paragraph (b) of that subsection, £1,000;
(b) in a case in which that conduct falls within paragraph (b) of that subsection and the number of relevant employees by reference to whom it falls within that subsection is five or more, £5,000; and
(c) in any other case, the amount obtained by multiplying £1,000 by the number of relevant employees by reference to whom that conduct falls within that subsection.
(6) The responsible person may withdraw his agreement to pay a penalty under this section by notifying the Department or the Housing Executive, in the manner specified by the Department or the Housing Executive, at any time during the period of 28 days beginning with the day on which he agrees to pay it.
(7) Where the responsible person withdraws his agreement in accordance with subsection (6) above—
(a) so much of the penalty as has already been recovered shall be repaid; and
(b) subsection (4)(b) above shall not apply.
(8) For the purposes of this section an individual is a relevant employee in relation to any conduct of the responsible person if—
(a) that conduct was at or in relation to a time when that individual was an employee of the responsible person;
(b) that conduct was at or in relation to a time when that individual was an employee of a body corporate of which the responsible person is or has been a director; or
(c) the responsible person, in engaging in that conduct, was acting or purporting to act on behalf of, in the interests of or otherwise by reason of his connection with, any person by whom that individual is or has been employed.
(9) In this section— “conduct” includes acts, omissions and statements; “the Department” also includes the Department of Finance and Personnel; “director” (a) in relation to a company (within the meaning of the Companies (Northern Ireland) Order 1986), includes a shadow director; (b) in relation to any such company that is a subsidiary of another, includes any director or shadow director of the other company; and (c) in relation to a body corporate whose affairs are managed by its members, means a member of that body corporate; “employee” means any person who— (a) is employed under a contract of service or apprenticeship, or in an office (including an elective office), or (b) carries out any work under any contract under which he has undertaken to provide his work, and “employment” shall be construed accordingly; “relevant benefit” means benefit prescribed for the purposes of section 69(8) above; “shadow director” means a shadow director as defined in Article 9(2) of the Companies (Northern Ireland) Order 1986; “subsidiary” means a subsidiary as defined in Article 4 of the Companies (Northern Ireland) Order 1986. ” .
(2) In section 144(8) of the Administration Act (penalties to be paid into the Consolidated Fund) after “109A” there shall be inserted “or 109B” . Offence of failing to notify a change of circumstances N.I. 15. —(1) In section 105A of the Administration Act (dishonest representations for obtaining benefit etc.)—
(a) in subsection (1), paragraphs (c) and (d) (dishonesty in connection with failures to notify the changes of circumstances that are required to be notified by regulations) shall be omitted and the word “or” shall be inserted at the end of paragraph (a); and
(b) after that subsection there shall be inserted the following subsections— “ (1A) A person shall be guilty of an offence if—
(a) there has been a change of circumstances affecting any entitlement of his to any benefit or other payment or advantage under any provision of the relevant social security legislation;
(b) the change is not a change that is excluded by regulations from the changes that are required to be notified;
(c) he knows that the change affects an entitlement of his to such a benefit or other payment or advantage; and
(d) he dishonestly fails to give a prompt notification of that change in the prescribed manner to the prescribed person.
(1B) A person shall be guilty of an offence if—
(a) there has been a change of circumstances affecting any entitlement of another person to any benefit or other payment or advantage under any provision of the relevant social security legislation;
(b) the change is not a change that is excluded by regulations from the changes that are required to be notified;
(c) he knows that the change affects an entitlement of that other person to such a benefit or other payment or advantage; and
(d) he dishonestly causes or allows that other person to fail to give a prompt notification of that change in the prescribed manner to the prescribed person.
(1C) This subsection applies where—
(a) there has been a change of circumstances affecting any entitlement of a person ( “the claimant”) to any benefit or other payment or advantage under any provision of the relevant social security legislation;
(b) the benefit, payment or advantage is one in respect of which there is another person ( “the recipient”) who for the time being has a right to receive payments to which the claimant has, or (but for the arrangements under which they are payable to the recipient) would have, an entitlement; and
(c) the change is not a change that is excluded by regulations from the changes that are required to be notified.
(1D) In a case where subsection (1C) above applies, the recipient shall be guilty of an offence if—
(a) he knows that the change affects an entitlement of the claimant to a benefit or other payment or advantage under a provision of the relevant social security legislation;
(b) the entitlement is one in respect of which he has a right to receive payments to which the claimant has, or (but for the arrangements under which they are payable to the recipient) would have, an entitlement; and
(c) he dishonestly fails to give a prompt notification of that change in the prescribed manner to the prescribed person.
(1E) In a case where subsection (1C) above applies, a person other than the recipient shall be guilty of an offence if—
(a) he knows that the change affects an entitlement of the claimant to a benefit or other payment or advantage under a provision of the relevant social security legislation;
(b) the entitlement is one in respect of which the recipient has a right to receive payments to which the claimant has, or (but for the arrangements under which they are payable to the recipient) would have, an entitlement; and
(c) he dishonestly causes or allows the recipient to fail to give a prompt notification of that change in the prescribed manner to the prescribed person.
(1F) In any case where subsection (1C) above applies but the right of the recipient is confined to a right, by reason of his being a person to whom the claimant is required to make payments in respect of a dwelling, to receive payments of housing benefit—
(a) a person shall not be guilty of an offence under subsection (1D) or (1E) above unless the change is one relating to one or both of the following—
(i) the claimant's occupation of that dwelling;
(ii) the claimant's liability to make payments in respect of that dwelling; but
(b) subsections (1D)(a) and (1E)(a) above shall each have effect as if after “knows” there were inserted “or could reasonably be expected to know”.
(1G) For the purposes of subsections (1A) to (1E) above a notification of a change is prompt if, and only if, it is given as soon as reasonably practicable after the change occurs. ” .
(2) For subsection (1A) of section 106 of that Act (false representations for obtaining benefit etc.) there shall be substituted— “ (1A) A person shall be guilty of an offence if—
(a) there has been a change of circumstances affecting any entitlement of his to any benefit or other payment or advantage under any provision of the relevant social security legislation;
(b) the change is not a change that is excluded by regulations from the changes that are required to be notified;
(c) he knows that the change affects an entitlement of his to such a benefit or other payment or advantage; and
(d) he fails to give a prompt notification of that change in the prescribed manner to the prescribed person.
(1B) A person shall be guilty of an offence under this section if—
(a) there has been a change of circumstances affecting any entitlement of another person to any benefit or other payment or advantage under any provision of the relevant social security legislation;
(b) the change is not a change that is excluded by regulations from the changes that are required to be notified;
(c) he knows that the change affects an entitlement of that other person to such a benefit or other payment or advantage; and
(d) he causes or allows that other person to fail to give a prompt notification of that change in the prescribed manner to the prescribed person.
(1C) In a case where subsection (1C) of section 105A above applies, the recipient shall be guilty of an offence if—
(a) he knows that the change affects an entitlement of the claimant to a benefit or other payment or advantage under a provision of the relevant social security legislation;
(b) the entitlement is one in respect of which he has a right to receive payments to which the claimant has, or (but for the arrangements under which they are payable to the recipient) would have, an entitlement; and
(c) he fails to give a prompt notification of that change in the prescribed manner to the prescribed person.
(1D) In a case where that subsection applies, a person other than the recipient shall be guilty of an offence if—
(a) he knows that the change affects an entitlement of the claimant to a benefit or other payment or advantage under a provision of the relevant social security legislation;
(b) the entitlement is one in respect of which the recipient has a right to receive payments to which the claimant has, or (but for the arrangements under which they are payable to the recipient) would have, an entitlement; and
(c) he causes or allows the recipient to fail to give a prompt notification of that change in the prescribed manner to the prescribed person.
(1E) Subsection (1F) of section 105A above applies in relation to subsections (1C) and (1D) above as it applies in relation to subsections (1D) and (1E) of that section.
(1F) For the purposes of subsections (1A) to (1D) above a notification of a change is prompt if, and only if, it is given as soon as reasonably practicable after the change occurs. ” . Repeals N.I. 16. The statutory provisions mentioned in the Schedule are hereby repealed to the extent specified in the second column of that Schedule. Commencement N.I. 17. —(1) Sections 1 to 16 shall come into operation on such day or days as may be appointed F99 by order made by the Department.
(2) The power under this section to appoint a day for the coming into operation of sections 1 and 2 shall not authorise the appointment for those purposes of any day before the issue of the code of practice that must be issued under section 3. F99 partly exercised by SR 2001/416; 2002/75, 165, 392, 406 Short title and interpretation N.I. 18. —(1) This Act may be cited as the Social Security Fraud Act (Northern Ireland) 2001.
(2) In this Act— “the Administration Act” means the Social Security Administration (Northern Ireland) Act 1992 (c. 8); “the Contributions and Benefits Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7); “the Department” means the Department for Social Development; “the Jobseekers Order” means the Jobseekers (Northern Ireland) Order 1995 (NI 15); “statutory provision” has the meaning assigned to it by section 1(f) of the Interpretation Act (Northern Ireland) 1954 (c. 33). N.I. Schedule — Repeals
