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Welfare Reform Bill

107: After Clause 113, insert the following new Clause— ““Means inquiry before sanctions, penalties and recovery of overpayments are imposed (1) In respect of the imposition of an overpayment or sanction under the Jobseekers Act 1995 or any other provision or in the case of a penalty imposed under section 115C of the Social Security Administration Act 1992, the Secretary of State shall consider— (a) evidence of the physical condition of the claimant and his or her state of health; (b) evidence of the psychological state of health of the claimant; (c) evidence relating to the means and income of the claimant; (d) evidence relating to the accommodation occupied by the claimant and the effect that the imposition of a sanction or penalty may have on the right to occupy such accommodation; (e) the family circumstances of the claimant and the impact that it may have on other family members and dependents; (f) evidence of the impact that a sanction or penalty may have on the ability of the claimant to fulfil obligations to third parties including those relating to the fulfilment of benefit entitlement conditions, before deciding whether to impose a sanction or penalty and shall only do so where, having considered all the relevant circumstances, it is reasonable to do so. (2) Regarding evidence as to means the Secretary of State must consider— (a) the income of the claimant; (b) the capital of the claimant; (c) the expenditure of the claimant. (3) In order to facilitate the enquiry into the matters set out in subsection (1), the Secretary of State or authority may— (a) arrange for a medical examination of the claimant; (b) obtain information from any agency holding relevant information on the income and resources of the claimant; (c) receive evidence from any other person or persons with a knowledge of the circumstances of the claimant. (4) A person who is subject to a penalty may appeal to a tribunal (lower tier) against the imposition of such a penalty.””