(1)    The Social Security Administration Act 1992 is amended as follows.

(2)    After section 116 there is inserted—

(1)    This section applies to an authority administering housing benefit or council tax benefit.

(2)    The authority may not bring proceedings against a person for a benefit offence relating to either of those benefits unless—

(a)    the authority has already started an investigation in relation to that person in respect of the offence,

(b)    in a case where the proceedings relate to housing benefit, the authority has already started an investigation in relation to the person in respect of a benefit offence relating to council tax benefit, or has already brought proceedings against the person in respect of such an offence,

(c)    in a case where the proceedings relate to council tax benefit, the authority has already started an investigation in relation to the person in respect of a benefit offence relating to housing benefit, or has already brought proceedings against the person in respect of such an offence,

(d)    the proceedings arise in prescribed circumstances or are of a prescribed description, or

(e)    the Secretary of State has directed that the authority may bring the proceedings.

(3)    The Secretary of State may direct that in prescribed circumstances, an authority may not bring proceedings by virtue of subsection (2)(a), (b) or (c) despite the requirements in those provisions being met.

(4)    A direction under subsection (2)(e) or (3) may relate to a particular authority or description of authority or to particular proceedings or any description of proceedings.

(5)    If the Secretary of State prescribes conditions for the purposes of this section, an authority may bring proceedings in accordance with this section only if any such condition is satisfied.

(6)    The Secretary of State may continue proceedings which have been brought by an authority in accordance with this section as if the proceedings had been brought in his name or he may discontinue the proceedings if—

(a)    the proceedings were brought by virtue of subsection (2)(a), (b) or (c),

(b)    he makes provision under subsection (2)(d) which has the effect that the authority would no longer be entitled to bring the proceedings in accordance with this section,

(c)    he withdraws a direction under subsection (2)(e) in relation to the proceedings, or

(d)    a condition prescribed under subsection (5) ceases to be satisfied in relation to the proceedings.

(7)    In exercising a power to bring proceedings in accordance with this section, a local authority must have regard to the Code for Crown Prosecutors issued by the Director of Public Prosecutions under section 10 of the Prosecution of Offences Act 1985—

(a)    in determining whether the proceedings should be instituted;

(b)    in determining what charges should be preferred;

(c)    in considering what representations to make to a magistrates'court about mode of trial;

(d)    in determining whether to discontinue proceedings.

(8)    Regulations shall define “an investigation in respect of a benefit offence” for the purposes of this section.

(9)    This section does not apply to Scotland.”

(3)    Section 116A (local authority powers to prosecute benefit fraud) is amended as follows.

(4)    In the heading, after “prosecute” there is inserted “other”.

(5)    In subsection (2)—

(a)    for “unless” there is substituted “only if”;

(b)    in paragraph (b), for “must not”, there is substituted “may”.

(6)    In subsection (4)(b), for “gives” there is substituted “withdraws”.