Welfare Reform Bill (HC Bill 197)

Part 2 Amendments to other Acts

Social Security Administration Act 1992 (c. 5)1992 (c. 5)

9 The Social Security Administration Act 1992 is amended as follows.

10 5In section 5 (regulations about claims and payments) in subsection (6),

before “subsection” there is inserted “or housing credit (within the meaning

of the State Pension Credit 2002)”.

11 In section 15A (mortgage interest)—

(a) in subsection (1A)—

(i) 10in paragraph (b), for “the appropriate minimum guarantee

for the purposes of” there is substituted “entitlement to”;

(ii) in the closing words, for “appropriate minimum guarantee

for the purposes of” there is substituted “entitlement to”;

(b) in subsection (4), the definition of “appropriate minimum guarantee” is repealed.

12 (1) 15Section 122F (supply by rent officers of information) is amended as follows.

(2) In subsection (3)(a) at the end of the words in brackets there is inserted “or

housing credit”.

(3) In subsection (4) at the end there is inserted “or housing credit”.

(4) After that subsection there is inserted—

“(5) 20In this section “housing credit” has the same meaning as in the State

Pension Credit Act 2002”.

Housing Act 1996 (c. 52)1996 (c. 52)

13 (1) Section 122 of the Housing Act 1996 (rent officers) is amended as follows.

(2) In the heading, at the end there is inserted “and housing credit”.

(3) 25In subsection (1), at the end there is inserted “or housing credit (within the

meaning of the State Pension Credit Act 2002)”.

Child Support, Pensions and Social Security Act 2000 (c. 19)2000 (c. 19)

14 In section 69 of the Child Support, Pensions and Social Security Act 2000

(discretionary financial assistance with housing), in subsection (1)(a), after

30“universal credit” there is inserted “or housing credit (within the meaning of

the State Pension Credit Act 2002)”.

Section 36

SCHEDULE 5 Universal credit and other working-age benefits

General

1 (1) In this Schedule “relevant benefit” means—

(a) 5jobseeker’s allowance, or

(b) employment and support allowance.

(2) In this Schedule “work-related requirement” means—

(a) a work-related requirement within the meaning of this Part,

(b) a work-related requirement within the meaning of the Jobseekers

10Act 1995, or

(c) a work-related requirement within the meaning of Part 1 of the

Welfare Reform Act 2007.

(3) In this Schedule “sanction” means a reduction of benefit under—

(a) section 26 or 27,

(b) 15section 6J or 6K of the Jobseekers Act 1995, or

(c) section 11J of the Welfare Reform Act 2007.

Dual entitlement

2 (1) Regulations may make provision as to the amount payable by way of a

relevant benefit where a person is entitled to that benefit and universal

20credit.

(2) Regulations under sub-paragraph (1) may in particular provide for no

amount to be payable by way of a relevant benefit.

(3) Regulations may, where a person is entitled to a relevant benefit and

universal credit—

(a) 25make provision as to the application of work-related requirements;

(b) make provision as to the application of sanctions.

(4) Provision under sub-paragraph (3)(a) includes in particular—

(a) provision securing that compliance with a work-related requirement

for a relevant benefit is to be treated as compliance with a work-

30related requirement for universal credit;

(b) provision disapplying any requirement on the Secretary of State to

impose, or a person to comply with, a work-related requirement for

a relevant benefit or universal credit.

(5) Provision under sub-paragraph (3)(b) includes in particular—

(a) 35provision for the order in which sanctions are to be applied to

awards of relevant benefit and universal credit;

(b) provision to secure that the application of a sanction to an award of

a relevant benefit does not result in an increase of the amount of an

award of universal credit.

40Movement between working-age benefits

3 Regulations may provide—

(a) in a case where a person ceases to be entitled to universal credit and

becomes entitled to a relevant benefit, for a sanction relating to the

award of universal credit to be applied to the award of the relevant

benefit;

(b) 5in a case where a person ceases to be entitled to a relevant benefit and

becomes entitled to universal credit, for a sanction relating to the

award of the relevant benefit to be applied to the award of universal

credit;

(c) in a case where a person ceases to be entitled to one relevant benefit

10and becomes entitled to the other, for a sanction relating to the award

of the former to apply to the award of the latter.

Hardship payments

4 Regulations under section 28 (hardship payments) may be made in relation

to a person whose award of universal credit is reduced by virtue of

15regulations under paragraph 2(3)(b) or 3(b) as in relation to a person whose

award is reduced under section 26 or 27.

Earnings tapers

5 In section 4 of the Jobseekers Act 1995 (amount payable by way of a

jobseeker’s allowance), in subsection (1)(b)—

(a) 20after “making” there is inserted—

“(i) deductions in respect of earnings calculated in

the prescribed manner (which may include

multiplying some or all earnings by a

prescribed percentage), and

(ii)”; 25

(b) “earnings,” (before “pension payments”) is repealed.

6 (1) Section 2 of the Welfare Reform Act 2007 (amount of contributory

allowance) is amended as follows.

(2) In subsection (1)(c), after “making” there is inserted—

“(i) 30deductions in respect of earnings calculated in the

prescribed manner (which may include multiplying

some or all earnings by a prescribed percentage), and

(ii)”.

(3) At the end there is inserted—

“(6) 35In subsection (1)(c)(i) the reference to earnings is to be construed in

accordance with sections 3, 4 and 112 of the Social Security

Contributions and Benefits Act 1992.”

Section 37

SCHEDULE 6 Migration to universal credit

General

1 (1) Regulations may make provision for the purposes of, or in connection with,

5replacing existing benefits with universal credit.

(2) In this Schedule “existing benefit” means—

(a) a benefit abolished under section 34(1);

(b) any other prescribed benefit.

(3) In this Schedule “appointed day” means the day appointed for the coming

10into force of section 1.

Claims before the appointed day

2 (1) The provision referred to in paragraph 1(1) includes—

(a) provision for a claim for universal credit to be made before the

appointed day for a period beginning on or after that day;

(b) 15provision for a claim for universal credit made before the appointed

day to be treated to any extent as a claim for an existing benefit;

(c) provision for a claim for an existing benefit made before the

appointed day to be treated to any extent as a claim for universal

credit.

(2) 20The provision referred to in paragraph 1(1) includes provision, where a

claim for universal credit is made (or is treated as made) before the

appointed day, for an award on the claim to be made in respect of a period

before the appointed day (including provision as to the conditions of

entitlement for, and amount of, such an award).

25Claims after the appointed day

3 (1) The provision referred to in paragraph 1(1) includes—

(a) provision permanently or temporarily excluding the making of a

claim for universal credit after the appointed day by—

(i) a person to whom an existing benefit is awarded, or

(ii) 30a person who would be entitled to an existing benefit on

making a claim for it;

(b) provision temporarily excluding the making of a claim for universal

credit after the appointed day by any other person;

(c) provision excluding entitlement to universal credit temporarily or

35for a particular period;

(d) provision for a claim for universal credit made after the appointed

day to be treated to any extent as a claim for an existing benefit;

(e) provision for a claim for an existing benefit made after the appointed

day to be treated to any extent as a claim for universal credit.

(2) 40The provision referred to in paragraph 1(1) includes provision, where a

claim for universal credit is made (or is treated as made) after the appointed

day, for an award on the claim to be made in respect of a period before the

appointed day (including provision as to the conditions of entitlement for,

and amount of, such an award).

Awards

4 (1) The provision referred to in paragraph 1(1) includes—

(a) 5provision for terminating an award of an existing benefit;

(b) provision for making an award of universal credit, with or without

application, to a person whose award of existing benefit is

terminated.

(2) The provision referred to in sub-paragraph (1)(b) includes—

(a) 10provision imposing requirements as to the procedure to be followed,

information to be supplied or assessments to be undergone in

relation to an award by virtue of that sub-paragraph or an

application for such an award;

(b) provision as to the consequences of failure to comply with any such

15requirement;

(c) provision as to the terms on which, and conditions subject to which,

such an award is made, including—

(i) provision temporarily or permanently disapplying, or

otherwise modifying, conditions of entitlement to universal

20credit in relation to the award;

(ii) provision temporarily or permanently disapplying, or

otherwise modifying, any requirement under this Part for a

person to be assessed in respect of capability for work or

work-related activity;

(d) 25provision as to the amount of such an award;

(e) provision that fulfilment of any condition relevant to entitlement to

an award of an existing benefit, or relevant to the amount of such an

award, is to be treated as fulfilment of an equivalent condition in

relation to universal credit.

(3) 30Provision under sub-paragraph (2)(d) may secure that where an award of

universal credit is made by virtue of sub-paragraph (1)(b)—

(a) the amount of the award is not less than the amount to which the

person would have been entitled under the terminated award, or is

not less than that amount by more than a prescribed amount;

(b) 35if the person to whom it is made ceases to be entitled to universal

credit for not more than a prescribed period, the gap in entitlement

is disregarded in calculating the amount of any new award of

universal credit.

Work-related requirements and sanctions

5 (1) 40The provision referred to in paragraph 1(1) includes—

(a) provision relating to the application of work-related requirements

for relevant benefits;

(b) provision relating to the application of sanctions.

(2) The provision referred to in sub-paragraph (1)(a) includes—

(a) 45provision that a claimant commitment for a relevant benefit is to be

treated as a claimant commitment for universal credit;

(b) provision that a work-related requirement for a relevant benefit is

treated as a work-related requirement for universal credit;

(c) provision for anything done which is relevant to compliance with a

work-related requirement for a relevant benefit to be treated as done

5for the purposes of compliance with a work-related requirement for

universal credit;

(d) provision temporarily disapplying any provision of this Part in

relation to work-related requirements for universal credit.

(3) The provision referred to in sub-paragraph (1)(b) includes—

(a) 10provision for a sanction relevant to an award of a relevant benefit to

be applied to an award of universal credit;

(b) provision for anything done which is relevant to the application of a

sanction for a relevant benefit to be treated as done for the purposes

of the application of a sanction for universal credit;

(c) 15provision temporarily disapplying any provision of this Part in

relation to the application of sanctions.

(4) In this paragraph—

• “relevant benefit” means—

  (a)

  jobseeker’s allowance,

  (b)

  20employment and support allowance, and

  (c)

  income support;

• “work-related requirement” means—

  (a)

  for universal credit, a work-related requirement within the
  
  meaning of this Part;

  (b)

  25for jobseeker’s allowance, a requirement imposed—

  (i)

  by virtue of regulations under section 8 or 17A of the
  
  Jobseekers Act 1995,

  (ii)

  by a jobseeker’s direction (within the meaning of
  
  section 19A of that Act),

  (iii)

  30by virtue of regulations under section 2A, 2AA or 2D
  
  of the Social Security Administration Act 1992, or

  (iv)

  by a direction under section 2F of that Act;

  (c)

  for employment and support allowance, a requirement
  
  imposed—

  (i)

  35by virtue of regulations under section 8, 9, 11, 12 or 13
  
  of the Welfare Reform Act 2007,

  (ii)

  by a direction under section 15 of that Act,

  (iii)

  by virtue of regulations under section 2A, 2AA or 2D
  
  of the Social Security Administration Act 1992, or

  (iv)

  40by a direction under section 2F of that Act;

  (d)

  for income support, a requirement imposed—

  (i)

  by virtue of regulations under section 2A, 2AA or 2D
  
  of the Social Security Administration Act 1992, or

  (ii)

  by a direction under section 2F of that Act;

• 45“sanction” means a reduction of benefit under—

  (a)

  section 26 or 27 above,

  (b)

  section 19, 19A or 19B of the Jobseekers Act 1995,

  (c)

  section 11, 12 or 13 of the Welfare Reform Act 2007, or

  Welfare Reform BillPage 126

  (d)

  section 2A, 2AA or 2D of the Social Security Administration
  
  Act 1992.

Tax credits

6 In relation to the replacement of working tax credit and child tax credit with

5universal credit, the provision referred to in paragraph 1(1) includes—

(a) provision modifying the application of the Tax Credits Act 2002 (or

of any provision made under it);

(b) provision for the purposes of recovery of overpayments of working

tax credit or child tax credit (including in particular provision for

10treating overpayments of working tax credit or child tax credit as if

they were overpayments of universal credit).

Supplementary

7 Regulations under paragraph 1(1) may secure the result that any gap in

entitlement to an existing benefit (or what would, but for the provisions of

15this Part, be a gap in entitlement to an existing benefit) is to be disregarded

for the purposes of provision under such regulations.

Section 48

SCHEDULE 7 Jobseeker’s allowance in interim period: consequential amendments

Jobseekers Act 1995 (c. 18)1995 (c. 18)

1 20The Jobseekers Act 1995 is amended as follows.

2 (1) Section 8 (attendance etc) is amended as follows.

(2) In subsection (1A)(a) (as originally enacted), for “the Secretary of State” there

is substituted “an employment officer”.

(3) In subsection (2), for paragraphs (a) to (c) there is substituted “provide for

25entitlement to a jobseeker’s allowance to cease at such time as may be

determined in accordance with any such regulations if, when a person fails

to comply with such regulations, that person (or, if that person is a member

of a joint-claim couple, either member of the couple) does not make

prescribed contact with an employment officer within a prescribed period of

30the failure.”

3 In section 16(3)(b) and 17(4) (in both places) for “good cause” there is

substituted “a good reason”.

4 In section 17A (employment schemes), in subsection (5)(c) for “jobseeker’s

agreement to which a person is a party” there is substituted “claimant

35commitment accepted by a person”.

5 Section 20 (exemptions from section 19) is amended as follows—

(a) in the heading, after “19” there is inserted “and 19A”;

(b) in subsection (1), for “prevent payment” there is substituted

“authorise reduction”;

(c) in subsection (2), for “19” there is substituted “19A” and for “(5)”

there is substituted “(2)(c) to (g)”;

(d) in subsection (3), for “19(6)(b) or (d)” there is substituted “19(2)(b) or

(d)” and for “just cause” there is substituted “good reason”.

6 5Sections 20C and 20D (uncommenced provision relating to sanctions for

violent conduct etc) are repealed.

7 In section 22 (members of the forces), in subsection (2), for “section 19(6)(b)”

there is substituted “section 19(2)(b)”.

8 In section 35 (interpretation), in subsection (1), before the definition of

10“jobseeking period” there is inserted—

• “jobseeker’s direction” has the meaning given by section 19A;”.

9 In section 36 (regulations and orders), after subsection (1) there is inserted—

“(1A) Subsection (1) does not apply to an order under section 35(1) in

relation to employment officers.”

10 (1) 15Schedule 1 (supplementary) is amended as follows.

(2) In paragraph 8(b), for “entered into a jobseeker’s agreement” there is

substituted “accepted a claimant commitment”.

(3) In paragraph 10, at the end there is inserted—

“(6) References in sub-paragraphs (1) and (2) to an income-based

20jobseeker’s allowance include a payment by way of such an

allowance under section 19C.”

Social Security Act 1998 (c. 14)1998 (c. 14)

11 In Schedule 3 to the Social Security Act 1998 (decisions against which an

appeal lies), in paragraph 8 and in the heading to that paragraph, for

25“jobseeker’s agreement” there is substituted “claimant commitment”.

Social Security Fraud Act 2001 (c. 11)2001 (c. 11)

12 (1) Section 8 of the Social Security Fraud Act 2001 is amended as follows.

(2) In subsection (2)—

(a) at the beginning there is inserted “Except in prescribed

30circumstances”;

(b) in paragraph (b), for sub-paragraph (i) there is substituted—

“(i) is a person whose failure sanctionable under

section 19, 19A or 19B of the Jobseekers Act

1995 has given rise to a reduction under that

35section; or”.

(3) Subsection (5) is repealed.

Welfare Reform Act 2009 (c. 24)2009 (c. 24)

13 The Welfare Reform Act 2009 is amended as follows.

14 In section 29(1) (victims of domestic violence), in sub-paragraph (3) of

40paragraph 8B inserted into Schedule 1 to the Jobseekers Act 1995—

(a) for the first “entered into a jobseeker’s agreement” there is

substituted “accepted a claimant commitment”;

(b) for “9(10)” there is substituted “9(9)”;

(c) for “entered into a jobseeker’s agreement which is in force for” there

5is substituted “accepted a claimant commitment during”.

15 (1) Section 31 (well-being of children) is amended as follows.

(2) In subsection (1)—

(a) for “(the jobseeker’s agreement)” there is substituted “(as substituted

by section 44 of the Welfare Reform Act 2011 (the claimant

10commitment))”;

(b) in the inserted subsection (4A), for “preparing a jobseeker’s

agreement for a claimant” there is substituted “considering whether

to invite a claimant to accept a claimant commitment”.

16 (1) Section 32 (contracting out) is amended as follows.

(2) 15In subsection (2), in section 20E inserted into the Jobseekers Act 1995—

(a) for subsection (2)(a) and (b) there is substituted—

“(a) any function under section 8 (attendance etc);

(b) any function under section 9 or 10 in relation to a

claimant commitment;”;

(b) 20after subsection (2)(d) there is inserted—

“(e) functions under section 19 or 19A;”;

(c) in subsection (4), “or 17A” is repealed.

(3) In subsection (3), for paragraphs (a) to (d) there is substituted—

“(a) section 8(1)(a), (1A) and (2);

(b) 25sections 9 and 10 (in all places);

(c) section 16(3)(b)(ii);

(d) sections 19 and 19A (in all places);”.

Section 69

SCHEDULE 8 Social fund discretionary payments: consequential amendments

1 30The Social Security Administration Act 1992 is amended as follows.

2 In section 78(4) (recovery of funeral payments out of social fund), after

“Payments” there is inserted “out of the social fund”.

3 In section 79 (recovery of Northern Ireland payments), in paragraph (c), for

the words from “under subsection” to the end there is substituted “under

35section 71(8)”.

4 In Part 1 of Schedule 4 (persons employed in social security administration),

under the heading “Former officers”, after the entry for “A social fund

officer” there is inserted—

“The social fund Commissioner.

40A social fund inspector.

A member of any staff employed in connection with the social

fund.”

Section 88

SCHEDULE 9 Personal independence payment: amendments

5Transport Act 1982 (c. 49)Transport Act 1982 (c. 49)

1 In section 70 of the Transport Act 1982 (payments in respect of applicants for

exemption from wearing seat belts), in subsection (2), after paragraph (a)

there is inserted—

“(ab) those in receipt of personal independence payment;”.

10Inheritance Tax Act 1984 (c. 51)Inheritance Tax Act 1984 (c. 51)

2 The Inheritance Tax Act 1984 is amended as follows.

3 (1) Section 74 (pre-1981 trusts for disabled persons) is amended as follows.

(2) In subsection (4), after paragraph (b) there is inserted—

“(ba) is in receipt of the daily living component of personal

15independence payment at a rate designated by regulations

made by the Secretary of State, or”.

(3) After subsection (4) there is inserted—

“(5) The power to make regulations under subsection (4)(ba) is

exercisable by statutory instrument; and a statutory instrument

20containing such regulations is subject to annulment in pursuance of

a resolution of either House of Parliament.”

4 (1) Section 89 (trusts for disabled persons) is amended as follows.

(2) In subsection (4), after paragraph (b) there is inserted—

“(ba) in receipt of the daily living component of personal

25independence payment at a rate designated by regulations

made by the Secretary of State, or”.

(3) In subsection (5)—

(a) after paragraph (a) there is inserted—

“(aa) would have been in receipt of the daily living

30component of personal independence payment at a

rate designated for the purposes of subsection (4)(ba)

had provision made by regulations under section

83(1)(a) of the Welfare Reform Act 2011 (no payment

in respect of daily living component for persons for

35whom certain services are provided) been ignored,

or”;

(b) in paragraph (b), for “either of the Acts” there is substituted “the

Act”.

(4) In subsection (6)—