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—

(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.

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,

(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.

(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.

(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”.

(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.

(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”—

  Welfare Reform BillPage 108

  (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.”

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.