Member

109: After Clause 97, insert the following new Clause— “Overpayment recovery(1) Section 71ZB of the Social Security Administration Act 1992 (recovery of overpayments of certain benefits) is amended as follows.(2) In subsection (7), at beginning insert “Subject to subsection (7A),”(3) After subsection (7), insert—“(8) An amount recoverable under this section may only be recovered by deduction from benefit—(a) where the Secretary of State has first—(i) given the liable person a notice setting out the rate of deduction from benefit and the basis for it, and(ii) invited the liable person to make representations about the affordability of the rate of deduction from benefit,(b) if the Secretary of State is satisfied on the basis of the information received by virtue of (a)(ii) that recovery of the recoverable amount—(i) will not cause the liable person to suffer hardship in meeting essential living expenses, and(ii) is otherwise fair in all the circumstances, including taking into account whether the overpayment was caused by a failure to act, a delay or mistaken assessment by the Secretary of State, and(c) if recovery is commenced before the expiration of six years from the date on which the recoverable amount was paid.”(4) In section 191 of the Social Security Administration Act 1992 (interpretation - general), after the definition for “inland revenue” insert—““liable person” means the person from whom a recoverable amount is recoverable;””Member's explanatory statement This new Clause would bring the safeguards for recovery of overpayments by way of deduction from benefit into line with (1) the safeguards contained in Schedule 5 of this Bill in relation to the new powers for recovery from bank accounts, and (2) the limitation period that applies to recovery of overpayments by way of court action.