Contents page 80-19 90-19 100-19 110-19 120-19 130-19 140-19 150-19 160-19 170-19 180-19 190-19 200-19 210-19 220-19 230-19 240-19 250-19 260-19 Last page
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Part 7 Final
136 Repeals
Schedule 14 contains consequential repeals.
137 5Financial provision
There shall be paid out of money provided by Parliament—
(a)
sums paid by the Secretary of State by way of universal credit or
personal independence payment;
(b)
any other expenditure incurred in consequence of this Act by a Minister
10of the Crown or the Commissioners for Her Majesty’s Revenue and
Customs;
(c)
any increase attributable to this Act in the sums payable under any
other Act out of money so provided.
138 Extent
(1) 15This Act extends to England and Wales and Scotland only, subject as follows.
(2)
The following provisions extend to England and Wales, Scotland and Northern
Ireland—
(a)
section 33 (power to make consequential and supplementary provision:
universal credit);
(b) 20section 34 (abolition of benefits);
(c)
section 89 (power to make consequential and supplementary provision:
personal independence payment);
(d) section 122(1) to (13) (tax credits: transfer of functions etc);
(e)
section 123(1) to (9) (information-sharing between Secretary of State
25and HMRC);
(f) this Part, excluding Schedule 14 (repeals).
(3)
Any amendment or repeal made by this Act has the same extent as the
enactment to which it relates.
139 Commencement
(1)
30The following provisions of this Act come into force on the day on which it is
passed—
(a)
section 100 and Schedule 12 (supersession of decisions of former
appellate bodies) (but see section 100(2));
(b) section 104 (application of Limitation Act 1980) (but see section 104(4));
(c)
35section 105 (recovery of fines etc by deductions from employment and
support allowance) (but see section 105(3));
(d) section 122 (tax credits: transfer of functions etc);
(e) this Part, excluding Schedule 14 (repeals).
(2)
The following provisions of this Act come into force at the end of the period of
40two months beginning with the day on which it is passed—
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(a)
section 50 (dual entitlement to employment and support allowance and
jobseeker’s allowance);
(b) section 59 and Part 6 of Schedule 14 (claimants dependent on drugs etc);
(c)
sections 70 and 71 (social fund: purposes of discretionary payments and
5determination of amount or value of budgeting loan);
(d) section 103 (recovery of child benefit and guardian’s allowance);
(e) section 107 (time limit for legal proceedings);
(f)
section 123 and Part 13 of Schedule 14 (information-sharing between
Secretary of State and HMRC);
(g)
10section 128 (information-sharing for social security or employment
purposes etc);
(h) section 129 (functions of registration service);
(i)
section 133 (exclusion of child support maintenance from individual
voluntary arrangements);
(j)
15section 135 and Schedule 13 (Social Mobility and Child Poverty
Commission);
(k)
Part 2 of Schedule 14 (entitlement to jobseeker’s allowance without
seeking employment).
(3)
The remaining provisions of this Act come into force on such day as the
20Secretary of State may by order made by statutory instrument appoint.
(4) An order under subsection (3) may—
(a) appoint different days for different purposes;
(b) appoint different days for different areas in relation to—
(i)
any provision of Part 1 (universal credit) or of Part 1 of Schedule
2514;
(ii)
section 60 or 61 (entitlement to work: jobseeker’s allowance and
employment and support allowance);
(iii) section 99 (consideration of revision before appeal);
(c)
make such transitory or transitional provision, or savings, as the
30Secretary of State considers necessary or expedient.
140 Short title
This Act may be cited as the Welfare Reform Act 2011.
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SCHEDULES
Section 31
SCHEDULE 1 Universal credit: supplementary regulation-making powers
Entitlement of joint claimants
1
5Regulations may provide for circumstances in which joint claimants may be
entitled to universal credit without each of them meeting all the basic
conditions referred to in section 4.
Linking periods
2
Regulations may provide for periods of entitlement to universal credit
10which are separated by no more than a prescribed number of days to be
treated as a single period.
Couples
3 (1) Regulations may provide—
(a)
for a claim made by members of a couple jointly to be treated as a
15claim made by one member of the couple as a single person (or as
claims made by both members as single persons);
(b)
for claims made by members of a couple as single persons to be
treated as a claim made jointly by the couple.
(2) Regulations may provide—
(a)
20where an award is made to joint claimants who cease to be entitled
to universal credit as such by ceasing to be a couple, for the making
of an award (without a claim) to either or each one of them—
(i) as a single person, or
(ii) jointly with another person;
(b)
25where an award is made to a single claimant who ceases to be
entitled to universal credit as such by becoming a member of a
couple, for the making of an award (without a claim) to the members
of the couple jointly;
(c)
for the procedure to be followed, and information or evidence to be
30supplied, in relation to the making of an award under this
paragraph.
Calculation of capital and income
4
(1)
Regulations may for any purpose of this Part provide for the calculation or
estimation of—
(a) 35a person’s capital,
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(b) a person’s earned and unearned income, and
(c)
a person’s earned and unearned income in respect of an assessment
period.
(2)
Regulations under sub-paragraph (1)(c) may include provision for the
5calculation to be made by reference to an average over a period, which need
not include the assessment period concerned.
(3) Regulations under sub-paragraph (1) may—
(a)
specify circumstances in which a person is to be treated as having or
not having capital or earned or unearned income;
(b)
10specify circumstances in which income is to be treated as capital or
capital as earned income or unearned income;
(c)
specify circumstances in which unearned income is to be treated as
earned, or earned income as unearned;
(d)
provide that a person’s capital is to be treated as yielding income at
15a prescribed rate;
(e)
provide that the capital or income of one member of a couple is to be
treated as that of the other member.
(4)
Regulations under sub-paragraph (3)(a) may in particular provide that
persons of a prescribed description are to be treated as having a prescribed
20minimum level of earned income.
(5)
In the case of joint claimants the income and capital of the joint claimants
includes (subject to sub-paragraph (6)) the separate income and capital of
each of them.
(6)
Regulations may specify circumstances in which capital and income of
25either of joint claimants is to be disregarded in calculating their joint capital
and income.
Responsibility for children etc
5
(1)
Regulations may for any purpose of this Part specify circumstances in which
a person is or is not responsible for a child or qualifying young person.
(2)
30Regulations may for any purpose of this Part make provision about
nominations of the responsible carer for a child (see section 19(6)(b)(ii)).
Vouchers
6
(1)
This paragraph applies in relation to an award of universal credit where the
calculation of the amount of the award includes, by virtue of any provision
35of this Part, an amount in respect of particular costs which a claimant may
incur.
(2)
Regulations may provide for liability to pay all or part of the award to be
discharged by means of provision of a voucher.
(3)
But the amount paid by means of a voucher may not in any case exceed the
40total of the amounts referred to in sub-paragraph (1) which are included in
the calculation of the amount of the award.
(4)
For these purposes a voucher is a means other than cash by which a claimant
may to any extent meet costs referred to in sub-paragraph (1) of a particular
description.
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(5) A voucher may for these purposes—
(a) be limited as regards the person or persons who will accept it;
(b) be valid only for a limited time.
Good reason
7 5Regulations may for any purpose of this Part provide for—
(a)
circumstances in which a person is to be treated as having or not
having a good reason for an act or omission;
(b)
matters which are or are not to be taken into account in determining
whether a person has a good reason for an act or omission.
Section 32
10SCHEDULE 2 Universal credit: amendments
Children Act 1989 (c. 41)1989 (c. 41)
1
In the Children Act 1989, in the following provisions, after “in receipt” there
is inserted “of universal credit (except in such circumstances as may be
15prescribed),”—
(a)
section 17(9) (provision of services to children in need, their families
and others);
(b) section 17A(5)(b) (direct payments);
(c) section 29(3) and (3A) (recoupment of cost of providing services etc);
(d)
20paragraph 21(4) of Schedule 2 (local authority support for children
and families).
Child Support Act 1991 (c. 48)1991 (c. 48)
2
In the Child Support Act 1991, in paragraph 5 of Schedule 1 (maintenance
calculations), as it has effect apart from section 1 of the Child Support,
25Pensions and Social Security Act 2000, in sub-paragraph (4) after “Where”
there is inserted “universal credit (in such circumstances as may be
prescribed),”.
Social Security Administration Act 1992 (c. 5)1992 (c. 5)
3 The Social Security Administration Act 1992 is amended as follows.
4
30In section 1 (entitlement to benefit dependent on claim), in subsection (4),
before paragraph (a) there is inserted—
“(za) universal credit;”.
5 In section 5 (regulations about claims and payments)—
(a) in subsection (2), before paragraph (a) there is inserted—
“(za) 35universal credit;”;
(b)
in subsection (6), after “in relation to” there inserted “universal credit
or”.
6
(1)
Section 15A (payment out of benefit of sums in respect of mortgage interest)
is amended as follows.
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(2) In subsection (1)—
(a)
in paragraph (a), after “entitled, to” there is inserted “universal
credit,”;
(b)
in paragraph (b), after “determining” there is inserted “the maximum
5amount for the purposes of universal credit or”;
(c)
in the words after paragraph (b), after “whose” there is inserted
“maximum amount for the purposes of universal credit or”.
(3) In subsection (4)—
(a) in the definition of “qualifying associate”—
(i) 10before “falls” there is inserted “or universal credit”;
(ii)
before “as responsible” there is inserted “or Part 1 of the
Welfare Reform Act 2011”;
(b)
in the definition of “relevant benefits”, before paragraph (a) there is
inserted—
“(za) 15universal credit;”.
7
In section 74 (income support and other payments), in subsection (2)(b), after
“by way of” there is inserted “universal credit or”.
8
In section 74A (payments of benefit where maintenance payments collected
by Secretary of State), in subsection (7), after “applies are” there is inserted
20“universal credit,”.
9
In section 78 (recovery of social fund awards), in subsection (6)(d), after
“receiving” there is inserted “universal credit,”.
10
In section 105 (failure to maintain - general), in subsection (1)(b), after
“neglect” there is inserted “universal credit,”.
11
25In section 106 (recovery of expenditure on benefit from person liable for
maintenance), in subsections (1), (2), (3) and (4)(a) and (b), after “income
support” there is inserted “or universal credit”.
12
In section 108 (reduction of expenditure on income support etc), in
subsection (1)(a), after “income support” there is inserted “or universal
30credit”.
13
In section 109 (diversion of arrested earnings - Scotland), in subsection (1),
after “in receipt of”, in both places, there is inserted “universal credit,”.
14
In section 121DA (interpretation of Part 6), in subsection (1), after paragraph
(hi) there is inserted—
“(hj) 35Part 1 of the Welfare Reform Act 2011;”.
15
In section 122B (supply of other government information for fraud
prevention and verification), in subsection (3)(b) after “Welfare Reform Act
2007” there is inserted “, Part 1 of the Welfare Reform Act 2011”.
16
(1)
Section 122F (supply by rent officers of information relating to housing
40benefit) is amended as follows.
(2)
In the heading, for “information relating to housing benefit” there is
substituted “benefit information”.
(3)
In subsection (1), for “housing benefit information” there is substituted
“benefit information”.
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(4) In subsection (3)(a) after “relating to” there is inserted “universal credit”.
(5) In subsection (4)—
(a)
for “housing benefit information” there is substituted “benefit
information”;
(b) 5after “relating to” there is inserted “universal credit”.
17 In section 124 (age, death and marriage), in subsection (1)—
(a) in paragraph (ac), the final “and” is repealed;
(b) after that paragraph there is inserted—
“(ad)
of the provisions of Part 1 of the Welfare Reform Act
102011;”.
18
In section 125 (regulations as to notification of death), in subsection (1), after
“2007” there is inserted “, Part 1 of the Welfare Reform Act 2011”.
19
In section 126 (information from personal representatives), in subsection (1),
after “receipt of” there is inserted “universal credit”.
20
15In section 130 (duties of employers), in subsection (1), before paragraph (a)
there is inserted—
“(za) universal credit;”.
21
In section 132 (duties of employers - statutory maternity pay etc), in
subsection (1), before paragraph (a) there is inserted—
“(za) 20universal credit;”.
22 In section 150 (uprating)—
(a) in subsection (1) at the end there is inserted—
“(n)
specified in regulations under sections 9 to 12 of the
Welfare Reform Act 2011;”;
(b)
25in subsection (7), after “2007” there is inserted “or Part 1 of the
Welfare Reform Act 2011”.
23 After section 159C there is inserted—
“159D Effect of alterations affecting universal credit
(1)
Subject to such exceptions and conditions as may be prescribed,
30subsection (2) or (3) shall have effect where—
(a)
an award of universal credit is in force in favour of any
person (“the recipient”), and
(b) an alteration—
(i) in any element of universal credit,
(ii) 35in the recipient’s benefit income,
(iii)
in any amount to be deducted in respect of earned
income under section 8(3)(a) of the Welfare Reform
Act 2011,
(iv)
in any component of a contribution-based jobseeker’s
40allowance, or
(v)
in any component of a contributory employment and
support allowance, or
(vi) in such other matters as may be prescribed,
affects the computation of the amount of universal credit to
45which he is entitled.
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(2)
Where, as a result of the alteration, the amount of universal credit to
which the recipient is entitled is increased or reduced, then, as from
the commencing date, the amount of universal credit payable in the
case of the recipient under the award shall be the increased or
5reduced amount, without any further decision of the Secretary of
State; and the award shall have effect accordingly.
(3)
Where, notwithstanding the alteration, the recipient continues on
and after the commencing date to be entitled to the same amount by
way of universal credit as before, the award shall continue in force
10accordingly.
(4)
Subsection (5) applies where a statement is made in the House of
Commons by or on behalf of the Secretary of State which specifies—
(a)
in relation to any of the items referred to in subsection
(1)(b)(i) to (vi), the amount of the alteration which he
15proposes to make by an order under section 150, 150A or 152
or by or under any other enactment, and
(b)
the date on which he proposes to bring the alteration in force
(“the proposed commencing date”).
(5)
If, in a case where this subsection applies, an award of universal
20credit is made in favour of a person before the proposed
commencing date and after the date on which the statement is made,
the award—
(a)
may provide for the universal credit to be paid as from the
proposed commencing date at a rate determined by reference
25to the amounts of the items referred to in subsection (1)(b)(i)
to (vi) which will be in force on that date, or
(b)
may be expressed in terms of the amounts of those items in
force at the date of the award.
(6) In this section—
-
30“alteration”—
(a)in relation to any element of universal credit, means
its alteration by or under any enactment;(b)in relation to a person’s benefit income, means the
alteration of any of the sums referred to in section 150
35or 150A by any enactment or by an order under
section 150, 150A or 152 to the extent that any such
alteration affects the amount of his benefit income;(c)in relation to any component of a contribution-based
jobseeker’s allowance or a contributory employment
40and support allowance, means its alteration by or
under any enactment;(d)in relation to any other matter, has such meaning as
may be prescribed; -
“benefit income”, in relation to a person, means so much of his
45income as consists of benefit under the Contributions and
Benefits Act or personal independence payment; -
“the commencing date”, in relation to an alteration, means the
date on which the alteration comes into force in relation to the
recipient; -
50“component”—
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(a)in relation to contribution-based jobseeker’s
allowance, means any of the sums specified in
regulations under the Jobseekers Act 1995 which are
relevant in calculating the amount payable by way of
5a jobseeker’s allowance;(b)in relation to a contributory employment and support
allowance, means any of the sums specified in
regulations under Part 1 of the Welfare Reform Act
2007 which are relevant in calculating the amount
10payable by way of such an allowance; -
“element”, in relation to universal credit, means any of the
amounts specified in regulations under sections 9 to 12 of the
Welfare Reform Act 2011 which are included in the
calculation of an award of universal credit.”
24 15After section 160B there is inserted—
“160C
Implementation of increases in universal credit due to attainment of
a particular age
(1) This section applies where—
(a)
an award of universal credit is in force in favour of a person
20(“the recipient”), and
(b)
an element has become applicable, or applicable at a
particular rate, because he or some other person has reached
a particular age (“the qualifying age”).
(2)
If, as a result of the recipient or other person reaching the qualifying
25age, the recipient becomes entitled to an increased amount of
universal credit, the amount payable to or for him under the award
shall, as from the day on which he becomes so entitled, be that
increased amount, without any further decision of the Secretary of
State; and the award shall have effect accordingly.
(3)
30Subsection (2) does not apply where, in consequence of the recipient
or other person reaching the qualifying age, a question arises in
relation to the recipient’s entitlement to—
(a) a benefit under the Contribution and Benefits Act, or
(b) personal independence payment.
(4)
35Subsection (2) does not apply where, in consequence of the recipient
or other person reaching the qualifying age, a question arises in
relation to the recipient’s entitlement to universal credit, other
than—
(a)
the question whether the element concerned, or any other
40element, becomes or ceases to be applicable, or applicable at
a particular rate, in the recipient’s case, and
(b)
the question whether, in consequence, the amount of his
universal credit falls to be varied.
(5)
In this section, “element”, in relation to universal credit, means any
45of the amounts specified in regulations under sections 9 to 12 of the
Welfare Reform Act 2011 which are included in the calculation of an
award of universal credit.”
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25
(1)
Section 165 (adjustments between National Insurance Fund and
Consolidated Fund) is amended as follows.
(2) In subsection (1)(a)(iii), after “Act” there is inserted “, universal credit”.
(3)
In subsection (6)(a), for “or section 27 of the Welfare Reform Act 2007” there
5is substituted “section 27 of the Welfare Reform Act 2007 or section 137 of the
Welfare Reform Act 2011”.
26
(1)
In section 170 (Social Security Advisory Committee), subsection (5) is
amended as follows.
(2) In the definition of “the relevant enactments”—
(a)
10in paragraph (af), for the words from “sections 68” to “to that Act”
there is substituted “sections 69 and 70 of the Child Support,
Pensions and Social Security Act 2000;”;
(b) after paragraph (aj) there is inserted—
“(ak)
the provisions of Part 1 of the Welfare Reform Act
152011;”.
(3) In the definition of “the relevant Northern Ireland enactments”—
(a)
in paragraph (af), for the words from “sections 68” to “to that Act”
there is substituted “sections 69 and 70 of the Child Support,
Pensions and Social Security Act 2000;”;
(b) 20after paragraph (aj) there is inserted—
“(ak)
any provisions in Northern Ireland which correspond
to the provisions of Part 1 of the Welfare Reform Act
2011;”.
27 (1) Section 179 (reciprocal agreements) is amended as follows.
(2)
25In subsection (3)(a), after “2007” there is inserted “, Part 1 of the Welfare
Reform Act 2011”.
(3) In subsection (4), after paragraph (af) there is inserted—
“(ag) to Part 1 of the Welfare Reform Act 2011; and”.
(4) In subsection (5), before paragraph (a) there is inserted—
“(za) 30universal credit;”.
28
In section 180 (payment of travelling expenses), in paragraphs (a) and (b)(i),
after “2007” there is inserted “, Part 1 of the Welfare Reform Act 2011”.
29
In section 182B (information about postal redirection), in subsection (5)(b),
after “1995” there is inserted “, Part 1 of the Welfare Reform Act 2011”.
30
35In section 187 (inalienability), in subsection (1), at the beginning there is
inserted—
“(za) universal credit;”.
31
In section 191 (interpretation), in the definition of “benefit”, after “includes”
there is inserted “universal credit,”.
40Local Government Finance Act 1992 (c. 14)1992 (c. 14)
32 The Local Government Finance Act 1992 is amended as follows.
33 (1) Schedule 4 is amended as follows.