IDG51200 - Information disclosure Gateways with other government departments: Department for Work and Pensions (DWP): contents

Why share information with the Department for Work and Pensions?

The functions of the Department for Work and Pensions (DWP) and those of HMRC often depend on a common interest in the same information. In particular the two departments overlap when dealing with National Insurance Contributions (NICs), tax credit applicants, social security benefit claimants and pension credit claimants.

DWP may also request HMRC information on behalf of a local authority. This is because local authorities have a role in the administration of social security benefits in the form of housing benefit and the administration of the benefit cap from April 2013 ; council tax benefits and the replacement council tax relief. There are also certain welfare services and “passported” benefits administered by local authorities which will require HMRC information. This will normally be obtained from DWP, but HMRC can only share with DWP where there is a clear legal basis to do so, and normally this will be for the purpose of DWP’s departmental functions outlined in s.127 of the Welfare Reform Act 2012.

The Welfare Reform Act 2012 which provides for the introduction of the Universal Credit from 2013, has consequences for the legal bases upon which HMRC may share information with both DWP and local authorities.

The information gateway provided by Section 127 of the Welfare Reform Act 2012 is designed to enable reciprocal sharing of HMRC and DWP information for the departments respective functions. For example, DWPs delivery of Universal Credit will be heavily dependant on the information provided by HMRC from the Real Time Information of claimant`s pay and tax details. Whilst this gateway is ostensibly “wide”, it is permissive and as such any disclosures should still be considered against the tests of necessity and proportionality in the Human Rights Act and the Data Protection Act. SeeIDG40140 and IDG40160

The Universal Credit will eventually replace numerous means-tested benefits and Tax Credits. For example, Housing Benefit will form part of the new Universal Credit award. However, existing Tax Credit claimants will continue to receive Housing Benefit until they migrate to Universal Credit. The gateways within the Tax Credit Act which currently permit the disclosure of HMRC information to DWP will remain extant as long as the Tax Credit award remains in place.

Section 127 of the Welfare Reform Act 2012 provides a legal gateway that enables HMRC to share information with DWP for the purpose of DWP’s departmental functions;

  • social security
  • employment and training
  • the investigation and prosecution of tax credit offences and
  • child support

Ensuring information is shared lawfully

All disclosures of HMRC information must be lawful. See IDG40300 for more information on lawful disclosure as provided by the CRCA.

To be lawful, HMRC may only share information with DWP through a legal gateway. See IDG40320 for general information about legal gateways. The appropriate legal gateway to use is listed under each type of disclosure to DWP at IDG51210 to IDG51290.

You must also ensure when passing information to DWP that you follow the agreed procedure for disclosures. Details are listed under each type of disclosure to DWP:

Additionally the DWP has oversight of the Health and Safety Executive. See IDG52000 for information on disclosure to the HSE.

  1. IDG51210
    Income tax information
  2. IDG51220
    NIC, statutory sick pay, or statutory maternity pay information
  3. IDG51230
    Tax Credits information
  4. IDG51240
    Child Benefit information
  5. IDG51250
    Information is requested by the DWP on behalf of a local authority
  6. IDG51260
    Requests for information regarding persons other than the claimant
  7. IDG51270
    Requests for VAT information
  8. IDG51280
    Requests for name and address of employer
  9. IDG51290
    Spontaneous disclosure