Commentary on Sections Part 5: Social security: General Section 108: Application of Limitation Act 1980
559.Section 9 of the Limitation Act 1980 (“the 1980 Act”) imposes a time limit of six years on any “action” to recover a sum recoverable by virtue of an enactment (in England and Wales). Section 108 amends the section 38 of the 1980 Act (interpretation) for the avoidance of doubt; references in that Act to “action” do not include recovery under social security and tax credits legislation by means other than proceedings in a court of law.
560.Section 108(2) and (3) puts beyond doubt that the Secretary of State may recover social security overpayments and social security debt (including social fund debts) under the SSAA 1992 or the SSCBA 1992, and that HMRC Commissioners may recover overpayments of tax credit under TCA 2002 and overpayments of child benefit and guardian’s allowance under the SSAA 1992, by means other than court action. Accordingly it secures that the time limits do not apply, for example, to recovery by deduction from benefit.
561.Subsection (4) provides that this amendment is to be regarded as always having formed part of the 1980 Act but this does not apply in respect of proceedings brought before the commencement of this provision.