SOCIAL SECURITY Citation, commencement and interpretation 1 1 This Order may be cited as the Income-related Benefits (Subsidy to Authorities) Amendment (No. 2) Order 2002 and shall come into force on 13th January 2003. 2 The amendments made by this Order shall have effect from 1st April 2001. 3 In this Order, “the principal Order ” means the Income-related Benefits (Subsidy to Authorities) Order 1998 . Definition of “new incentive scheme” 2 1 In article 1(2) of the principal Order (citation, commencement and interpretation), after the definition of “the English Regulations” there shall be inserted— “new incentive scheme” means the scheme set out in the following circulars issued by the Secretary of State — HB/CTB F12/2000; and HB/CTB F19/2001; . 2 In paragraph 1(2) of Schedule 5 to the principal Order (benefit savings threshold) , the definition of “new incentive scheme” shall be omitted. Amendment of article 14 of the principal Order 3 In article 14(2) of the principal Order (backdated benefit) , for “18(1)(b)(iii)” there shall be substituted “18(1)(b)(iia) or (iii)”. Amendment of article 18 of the principal Order 4 1 Article 18 of the principal Order (additions to subsidy) shall be amended in accordance with the following provisions of this article. 2 In paragraph (1)— a before sub-paragraph (b)(iii) there shall be inserted— iia in the case of a claimant error overpayment, or of a fraudulent overpayment made by an authority which is operating the new incentive scheme, 40 per cent. of the overpayment; ; b in sub-paragraph (b)(iii), after “fraudulent overpayment” there shall be inserted “to which head (iia) does not apply”; c in sub-paragraph (b)(iv), after “overpayment” there shall be inserted “or, where the overpayment is made by an authority operating the new incentive scheme, 40 per cent. of the overpayment”; d in sub-paragraph (c), after “80 per cent.” there shall be inserted “or, in a case where the discovery is made by an authority which is operating the new incentive scheme, 40 per cent.”. 3 Before paragraph (5) there shall be inserted— 4A In paragraph (1)(b)(iia), “claimant error overpayment” means an overpayment made by an authority which is operating the new incentive scheme, where the overpayment— a is caused by— i the claimant, or ii a person acting on the claimant’s behalf under regulation 71 of the Housing Benefit Regulations (who may claim housing benefit) or regulation 61 of the Council Tax Benefit Regulations (who may claim council tax benefit) , failing to provide information in accordance with regulation 72(1), 73 or 75 of, or paragraph 5 of Schedule A1 to, the Housing Benefit Regulations (duties on claimant to provide information) or regulation 62(1), 63 or 65 of, or paragraph 5 of Schedule A1 to, the Council Tax Benefit Regulations (duties on claimant to provide information) ; and b is not a fraudulent overpayment. . 4 In paragraph (5), for “paragraphs (1)(b)(iii) and (c)” there shall be substituted “paragraphs (1)(b)(iia) and (iii) and (c) and (4A)”. Signed by authority of the Secretary of State for Work and Pensions. Malcolm Wicks Parliamentary Under-Secretary of State Department for Work and Pensions 12th December 2002 We consent, Nick Ainger Philip Woolas Two of the Lords Commissioners of Her Majesty’s Treasury 16th December 2002