DPRR/12-13/49
PREVENTION OF SOCIAL HOUSING FRAUD BILL
Memorandum by the Department for Communities and Local
Government to the Delegated Powers and Regulatory Reform
Committee
INTRODUCTION
1.
This Memorandum sets out the provisions in the Prevention of Social Housing
Fraud Bill which confer delegated powers on the Secretary of State and Welsh
Ministers; explains why the power has been taken and the nature of, and the
reason for the procedure selected.
2.
Any reference to the “appropriate authority” is a reference to the Secretary of
State, in relation to England, and the Welsh Ministers, in relation to Wales.
BACKGROUND
3.
The Bill seeks to ensure that social housing is being occupied by those to
whom it was allocated. It creates new criminal offences of unlawful sub-letting by
secure and assured tenants of social housing. It makes provision concerning the
prosecution of these offences and enables the courts to make orders for the
recovery from defendants of profits made from unlawful sub-letting, either
following conviction or in separate civil proceedings. It also provides that an
assured tenant of a dwelling-house let by a social landlord, who parts with
possession of, or sub-lets the dwelling-house cannot subsequently regain their
status as an assured tenant of the dwelling-house. Finally, the Bill enables the
appropriate authority to make regulations providing for persons to exercise powers
to require the provision of information for prescribed housing fraud investigation
purposes. The intention is that these will be similar to the existing powers to
require information relating to social security fraud.
DEVOLUTION
4. The Bill extends to England and Wales only. It applies to England and to Wales.
PROVISIONS CONFERRING DELEGATED POWERS
Clause 7 - Regulations about powers to require information
Power conferred on: Secretary of State and Welsh Ministers
Power exercised by: regulations
Procedure: affirmative
5. Clause 7 enables the appropriate authority to make regulations providing for
persons to exercise powers to require the provision of information for prescribed
housing fraud investigation purposes (which are listed in sub-section (7)).
6. Regulations may include provision about the persons by whom these powers may
be exercised and may, in particular, provide local authorities with the power to
authorise persons to exercise those powers (subsection (2)). Subsection (6)
requires persons exercising the powers to have regard to Guidance issued or
approved by the appropriate authority
7. Regulations may in particular include provision equivalent to the provisions of the
Social Security Administration Act 1992 listed in subsection (4). It is intended
that the powers under clause 7 will be used to make regulations enabling local
authorities to authorise persons to exercise powers in relation to social housing
fraud equivalent to those that may currently be exercised in relation to social
security fraud under the provisions listed.
8.
Social landlords have often cited the difficulties they have in obtaining
information as being one of the significant obstacles to proving that a property has
been unlawfully sublet. The Government considers that the power to require
information is a key element in the detection and prevention of social housing
fraud. However, it is important to ensure that adequate safeguards are in place.
9.
It is therefore considered appropriate for the power to require information to
be made in regulations. This will allow us to work with interested parties, such as
social housing providers and the Information Commissioner, to ensure that the
power to require information enables authorised persons to obtain the information
they need but that it is exercised in a way that is appropriate and proportionate.
Clause 8 – Regulations about related offence
Power conferred on: Secretary of State and Welsh Ministers
Power exercised by: regulations
Procedure: affirmative
10. Clause 8 enables the appropriate authority to make regulations providing for the
creation of criminal offences that may be committed by a person refusing or
failing to provide information when required to do so by or under regulations
under clause 7.
11. The intention is to create offences equivalent to those that apply to persons failing
to provide information in relation to social security fraud investigations under
section 111 Social Security Administration Act 1992.
Clause 9 – Regulations: supplementary
Power conferred on: Secretary of State and Welsh Ministers
Power exercised by: regulations
Procedure: affirmative
12. Clause 9 makes provision in relation to the regulation making powers that the
Secretary of State and Welsh Ministers may exercise under clauses 8 and 9. In
particular, it provides that regulations made under those clauses will be subject to
the affirmative procedure, and will therefore be subject to the appropriate level of
Parliamentary scrutiny.
Clause 12 – Extent, commencement and short title
Power conferred on: Secretary of State and Welsh Ministers
Power exercised by: order
Procedure: none
13. Clause 12(3) provides for the commencement of the Bill. Subsection (5) enables
the appropriate authority to make by order such transitional, transitory or savings
provisions as the appropriate authority considers appropriate in connection with
the coming into force of any provision of the Bill.
14. The power in subsection (5) is required to ensure that the necessary arrangements
for the transition between different statutory regimes can be made as the new
provisions in the Bill are commenced.
15. As is common with commencement provisions, the power is not subject to any
Parliamentary procedure.