Welfare Reform and Work Bill (HC Bill 51)

(a) provide for section 96 to have effect as if the amendments made by
subsections (2) and (3) had not been made, in relation to such persons
or descriptions of persons as are specified in the regulations or
generally, until a time or times specified in a notice issued by the
5Secretary of State;

(b) provide for the Secretary of State to issue notices under paragraph (a)
specifying different times for different persons or descriptions of
person;

(c) make provision about the issuing of notices under paragraph (a),
10including provision for the Secretary of State to issue notices to
authorities administering housing benefit that have effect in relation to
persons specified, or persons of a description specified, in the notices.

(8) Section 176 of the Social Security Administration Act 1992 (consultation with
representative organisations) does not apply in relation to regulations under
15subsection (6).

(9) Regulations under subsection (6) must be made by statutory instrument.

(10) A statutory instrument containing regulations under subsection (6) is subject
to annulment in pursuance of a resolution of either House of Parliament.

8 Review of benefit cap

(1) 20After section 96 of the Welfare Reform Act 2012 insert—

“96A Benefit cap: review

(1) The Secretary of State must at least once in each Parliament review the
sums specified in section 96(5A) to determine whether it is appropriate
to increase or decrease any one or more of those sums.

(2) 25The Secretary of State may, at any other time the Secretary of State
considers appropriate, review the sums specified in section 96(5A) to
determine whether it is appropriate to increase or decrease any one or
more of those sums.

(3) In carrying out a review, the Secretary of State must take into account—

(a) 30the national economic situation, and

(b) any other matters that the Secretary of State considers relevant.

(4) After carrying out a review, the Secretary of State may, if the Secretary
of State considers it appropriate, by regulations amend section 96(5A)
so as to increase or decrease any one or more of the sums specified in
35section 96(5A).

(5) Regulations under subsection (4) may provide for amendments of
section 96(5A) to come into force—

(a) on different days for different areas;

(b) on different days for different cases or purposes.

(6) 40Regulations under subsection (4) may make such transitional or
transitory provision or savings as the Secretary of State considers
necessary or expedient in connection with the coming into force of any
amendment made by regulations under subsection (4).

(7) Regulations under subsection (6) may in particular—

(a) provide for section 96(5A) to have effect as if the amendments
made by regulations under subsection (4) had not been made,
in relation to such persons or descriptions of persons as are
specified in the regulations or generally, until a time or times
5specified in a notice issued by the Secretary of State;

(b) provide for the Secretary of State to issue notices under
paragraph (a) specifying different times for different persons or
descriptions of person;

(c) make provision about the issuing of notices under paragraph
10(a), including provision for the Secretary of State to issue notices
to authorities administering housing benefit that have effect in
relation to persons specified, or persons of a description
specified, in the notices.

(8) If an early parliamentary general election is to take place in accordance
15with section 2 of the Fixed-term Parliaments Act 2011, the duty in
subsection (1) is to be disregarded.””

(2) Section 97 of the Welfare Reform Act 2012 (benefit cap: supplementary) is
amended as follows.

(3) In subsection (1), after “96” insert “or 96A”.

(4) 20In subsection (2), after “96” insert “or 96A”.

(5) After subsection (3) insert—

“(3A) A statutory instrument containing regulations under section 96A(4)
that decreases a sum specified in section 96(5A) may not be made
unless a draft of the instrument has been laid before, and approved by
25resolution of, each House of Parliament.””

(6) In subsection (4) (procedure for other regulations), after “96” insert “or 96A”.

(7) Subsection (5) is omitted.

(8) In section 150 of the Social Security Administration Act 1992 (annual up-rating
of benefits), subsection (7A) (review of the benefit cap) is omitted.

9 30Freeze of certain social security benefits for four tax years

(1) For each of the tax years ending with 5 April 2017, 5 April 2018, 5 April 2019
and 5 April 2020, the amount of each of the relevant sums is to remain the same
as it was in the tax year ending with 5 April 2016.

(2) For each of the tax years ending with 5 April 2017, 5 April 2018, 5 April 2019
35and 5 April 2020, the rates of child benefit are to remain the same as they were
in the tax year ending with 5 April 2016.

(3) A review under section 150(1) of the Social Security Administration Act 1992
(review of whether certain benefits have retained their value) in the tax years
ending with 5 April 2016, 5 April 2017, 5 April 2018 and 5 April 2019 need not
40cover any of the relevant sums or the rates of child benefit.

(4) A draft up-rating order which is laid before Parliament under section 150(2) of
that Act in the tax years ending with 5 April 2016, 5 April 2017, 5 April 2018
and 5 April 2019 need not cover any of the relevant sums or the rates of child
benefit.

(5) In each of the tax years ending with 5 April 2016, 5 April 2017, 5 April 2018 and
5 April 2019, the Secretary of State must lay before Parliament a copy of a
report by the Government Actuary or the Deputy Government Actuary giving
that Actuary’s opinion on the likely effect of the provision in subsection (1) on
5the National Insurance Fund in the following tax year, so far as that provision
relates to any sums payable out of the Fund.

(6) In this section—

• “child benefit”—

  (a)

  in relation to England and Wales and Scotland, has same
  10meaning as in Part 9 of the Social Security Contributions and
  Benefits Act 1992;

  (b)

  in relation to Northern Ireland, has the same meaning as in Part
  9 of the Social Security Contributions and Benefits (Northern
  Ireland) Act 1992;

• 15“the relevant sums” means the sums described in paragraph 1 of the
  Schedule;

• “tax year” means a period beginning with 6 April in one year and ending
  with 5 April in the next.

10 Freeze of certain tax credit amounts for four tax years

(1) 20For each of the tax years ending with 5 April 2017, 5 April 2018, 5 April 2019
and 5 April 2020, each of the relevant amounts is to remain the same as it was
in the tax year ending with 5 April 2016.

(2) A review under section 41 of the Tax Credits Act 2002 (review of whether
certain tax credit amounts have retained their value) in the tax years ending
25with 5 April 2016, 5 April 2017, 5 April 2018 and 5 April 2019 need not cover
any of the relevant amounts.

(3) In this section—

• “the relevant amounts” means the amounts described in paragraph 2 of
  the Schedule;

• 30“tax year” means a period beginning with 6 April in one year and ending
  with 5 April in the next.

11 Changes to child tax credit

(1) Section 9 of the Tax Credits Act 2002 (maximum rate of child tax credit) is
amended as follows.

(2) 35In subsection (2)—

(a) in paragraph (a), for “all persons entitled to child tax credit, and”
substitute “every person or persons entitled to child tax credit who is,
or either or both of whom is or are, responsible for a child or qualifying
young person who was born before 6 April 2017,”;

(b) 40at the end insert “, and

(c) an element which is to be included in the case of a child
or qualifying young person who is disabled or severely
disabled.””

(3) In subsection (3), at the end insert “and that specified in paragraph (c) of that
45subsection is to be known as the disability element of child tax credit”.

(4) After subsection (3) insert—

“(3A) Subsection (3B) applies in the case of a person or persons entitled to
child tax credit where the person is, or either or both of them is or are,
responsible for a child or qualifying young person born on or after 6
5April 2017.

(3B) The prescribed manner of determination in relation to the person or
persons must not include an individual element of child tax credit in
respect of the child or qualifying young person unless—

(a) he is (or they are) claiming the individual element of child tax
10credit for no more than one other child or qualifying young
person, or

(b) a prescribed exception applies.””

(5) In subsection (5), for paragraph (c) substitute—

“(c) may include provision for the amount of the disability element
15of child tax credit to vary according to whether the child or
qualifying young person is disabled or severely disabled.””

12 Changes to child element of universal credit

(1) Section 10 of the Welfare Reform Act 2012 (responsibility for children and
young persons) is amended as set out in subsections (2) to (4).

(2) 20After subsection (1) insert—

“(1A) But the amount mentioned in subsection (1) is to be available in respect
of a maximum of two persons who are either children or qualifying
young persons for whom a claimant is responsible.””

(3) In subsection (2)—

(a) 25for “if such a” substitute “for each”;

(b) after “person” insert “for whom a claimant is responsible who”.

(4) In subsection (4), at the end insert “or (1A)”.

(5) In the Universal Credit Regulations 2013 (S.I. 2013/376S.I. 2013/376)—

(a) in regulation 24(1) (the child element), after “responsible” insert “and in
30respect of whom an amount may be included under section 10”;

(b) in regulation 36 (table showing amount of elements), in the table—

(i) omit the row under “Child element” showing the amount for
first child or qualifying young person;

(ii) in the row under “Child element” showing the amount for
35second and each subsequent child or qualifying young person,
for “second and each subsequent” substitute “each”.

(6) The Secretary of State may by regulations make such transitional or transitory
provision or savings as the Secretary of State considers necessary or expedient
in connection with the coming into force of this section.

(7) 40Regulations under subsection (6) must be made by statutory instrument.

(8) A statutory instrument containing regulations under subsection (6) is subject
to annulment in pursuance of a resolution of either House of Parliament.

13 Employment and support allowance: work-related activity component

(1) Part 1 of the Welfare Reform Act 2007 (employment and support allowance) is
amended as follows.

(2) In section 2 (amount of contributory allowance)—

(a) 5in subsection (1)(b), omit “or the work-related activity component”;

(b) omit subsection (3);

(c) in subsection (4), in each of paragraphs (a), (b) and (c), omit “or (3)”.

(3) In section 4 (amount of income-related allowance) (so far as it remains in
force)—

(a) 10in subsection (2)(b), omit “or the work-related activity component”;

(b) omit subsection (5);

(c) in subsection (6), in each of paragraphs (a), (b) and (c), omit “or (5)”.

(4) The Secretary of State may by regulations make such transitional or transitory
provision or savings as the Secretary of State considers necessary or expedient
15in connection with the coming into force of subsections (1) to (3).

(5) Regulations under subsection (4) may in particular make provision about
including a work-related activity component in an award of employment and
support allowance that is converted under paragraph 7 of Schedule 4 to the
Welfare Reform Act 2007 from an award of incapacity benefit, severe
20disablement allowance or income support after the coming into force of
subsections (1) to (3).

(6) Regulations under this section must be made by statutory instrument.

(7) A statutory instrument containing regulations under this section is subject to
annulment in pursuance of a resolution of either House of Parliament.

14 25Universal credit: limited capability for work element

In section 12(2) of the Welfare Reform Act 2012 (universal credit: particular
needs or circumstances), omit paragraph (a).

15 Universal credit: work-related requirements

(1) In Chapter 2 of Part 1 of the Welfare Reform Act 2012 (claimant
30responsibilities)—

(a) in section 20(1)(a) (claimants subject to work-focused interview
requirement only), for the words from “at least 1” to “3)” substitute “1”;

(b) in section 21(1) (claimants subject to work preparation requirement)
after paragraph (a) (but before the “or” immediately after it) insert—

“(aa) 35the claimant is the responsible carer for a child who is
aged 2,”;”

(c) omit section 21(5) (claimants of prescribed description to include
responsible carers of children aged 3 or 4).

(2) In the Universal Credit Regulations 2013 (S.I. 2013/376S.I. 2013/376)—

(a) 40in regulation 91 (claimants subject to work-focused interview
requirement only), omit paragraph (1);

(b) regulation 91A (claimants subject to work preparation requirement) is
revoked.

Loans for mortgage interest

16 Loans for mortgage interest

(1) The Secretary of State may by regulations provide for loans to be made in respect of a
person’s liability to pay mortgage interest in relation to property occupied by the
5person as the person’s home.

(2) The regulations may make provision about eligibility to receive a loan under
the regulations.

(3) Regulations under subsection (2) may in particular require that a person—

(a) is entitled to receive income support, income-based jobseeker’s
10allowance, income-related employment and support allowance, state
pension credit or universal credit;

(b) has received such a benefit for a period prescribed by the regulations.

(4) The regulations may make provision about the amounts secured by a mortgage
in respect of which a loan under the regulations may be made.

(5) 15Regulations under subsection (4) may in particular provide that a loan under
the regulations may only be made if, and to the extent that, the mortgage
relates to amounts used for purposes prescribed by the regulations.

(6) Regulations under subsection (4) may in particular make provision about the
maximum amount secured by a mortgage in respect of which a loan under the
20regulations may be made.

(7) The regulations may—

(a) make provision about determining or calculating the amount that may
be paid by way of loan under the regulations;

(b) require that a loan under the regulations be secured by a charge over
25land or, in Scotland, by a heritable security.

(8) In this section—

• “mortgage” means a mortgage of or charge over land or, in Scotland, a
  heritable security;

• “mortgage interest” means interest on a loan which is secured by a
  30mortgage of or charge over land or, in Scotland, by a heritable security.

(9) Regulations under this section may make different provision for different
purposes.

(10) Regulations under this section must be made by statutory instrument.

(11) A statutory instrument containing regulations under this section is subject to
35annulment in pursuance of a resolution of either House of Parliament.

17 Section 16: further provision

(1) This section makes further provision about regulations under section 16.

(2) The regulations may make provision about—

(a) circumstances in which a person is to be treated as liable or not liable to
40pay mortgage interest;

(b) circumstances in which a person is to be treated as occupying or not
occupying property as a home.

(3) The regulations may include—

(a) provision about applying for a loan;

(b) provision requiring a person to satisfy requirements prescribed by the
regulations before a loan may be made under the regulations, including
5requirements about receiving financial advice;

(c) provision about the time when, and manner in which, a loan must be
repaid;

(d) provision about the other terms upon which a loan is made;

(e) provision about the payment of interest, including provision
10prescribing or providing for the determination of the rate of interest;

(f) provision enabling administrative costs to be charged;

(g) provision about adding administrative costs to the amount of a loan;

(h) provision about accepting substituted security.

(4) The regulations may make provision—

(a) 15requiring that, in circumstances prescribed by the regulations, money
lent in respect of a person’s liability to pay mortgage interest—

(i) is paid directly to the qualifying lender;

(ii) is applied by the qualifying lender towards discharging the
person’s liability to pay mortgage interest;

(b) 20for the costs of administering the making of payments to qualifying
lenders to be defrayed, in whole or in part, at the expense of the
qualifying lenders, whether by requiring them to pay fees prescribed
by the regulations, by deducting and retaining such part as may be
prescribed by the regulations of the amounts that would otherwise be
25paid to them or otherwise;

(c) for requiring a qualifying lender, in a case where by virtue of paragraph
(b) the amount paid to the lender is less than it would otherwise have
been, to credit against the liability in respect of the mortgage interest
the amount of the difference (in addition to the payment actually
30made);

(d) for enabling a body which, or person who, would otherwise be a
qualifying lender to elect not to be regarded as a qualifying lender for
the purposes of this section (other than this paragraph);

(e) for the recovery from any body or person—

(i) 35of any sums paid to that body or person by way of payment
under the regulations that ought not to have been so paid;

(ii) of any fees or other sums due from that body or person by
virtue of paragraph (b);

(f) for cases where the same person is the borrower in relation to mortgage
40interest payable in respect of two or more different loans.

(5) The regulations may provide for the Secretary of State to make arrangements
with another person for the exercise of functions under the regulations.

(6) The regulations may include—

(a) provision requiring information and documents to be provided;

(b) 45provision authorising the disclosure of information.

(7) The regulations may make provision with similar effect in relation to persons
who have entered into alternative finance arrangements (within the meaning
of Part 10A of the Income Tax Act 2007).

(8) The bodies and persons who are “qualifying lenders” for the purposes of this
section are—

(a) a deposit taker;

(b) an insurer;

(c) 5a county council, a county borough council, a district council, a London
Borough Council, the Common Council of the City of London or the
Council of the Isles of Scilly;

(d) a council constituted under section 2 of the Local Government etc.
(Scotland) Act 1994;

(e) 10a new town corporation;

(f) other bodies or persons prescribed by regulations under section 16.

(9) In this section—

• “deposit taker” means—

  (a)

  a person who has permission under Part 4A of the Financial
  15Services and Markets Act 2000 to accept deposits, or

  (b)

  an EEA firm of the kind mentioned in paragraph 5(b) of
  Schedule 3 to that Act which has permission under paragraph
  15 of that Schedule (as a result of qualifying for authorisation
  under paragraph 12 of that Schedule) to accept deposits;

• 20“insurer” means—

  (a)

  a person who has permission under Part 4A of the Financial
  Services and Markets Act 2000 to effect and carry out contracts
  of insurance, or

  (b)

  an EEA firm of the kind mentioned in paragraph 5(d) of
  25Schedule 3 to that Act which has permission under paragraph
  15 of that Schedule (as a result of qualifying for authorisation
  under paragraph 12 of that Schedule) to effect and carry out
  contracts of insurance;

• “mortgage” means a mortgage of or charge over land or, in Scotland, a
  30heritable security;

• “mortgage interest” means interest on a loan which is secured by a
  mortgage of or charge over land or, in Scotland, by a heritable security.

(10) The definitions of “deposit taker” and ‘insurer” in this section must be read
with—

(a) 35section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section;

(c) Schedule 2 to that Act.

18 Consequential amendments

(1) Section 15A of the Social Security Administration Act 1992 (payment out of
40benefit of sums in respect of mortgage interest) is repealed.

(2) In section 11 of the Welfare Reform Act 2012 (universal credit: amount in
respect of housing costs), in subsection (3)(a), omit the words from “(and” to
“payments)”.

(3) The following provisions are repealed—

(a) 45in the Social Security (Mortgage Interest Payments) Act 1992—

(i) section 1;

(ii) the Schedule;

(b) in the Jobseekers Act 1995, paragraph 40(3)(b) and (4) of Schedule 2;

(c) in the State Pension Credit Act 2002, paragraph 9 of Schedule 2;

(d) in the Civil Partnership Act 2004, paragraph 57 of Schedule 24;

(e) in the Welfare Reform Act 2007, paragraph 10(5) of Schedule 3;

(f) 5in the Welfare Reform Act 2012—

(i) in Schedule 2, paragraph 6;

(ii) in Schedule 4, paragraph 11;

(g) in the Financial Services Act 2012, paragraph 74(2) of Schedule 18.

Social housing rents

19 10Reduction in social housing rents

(1) Registered providers of social housing must secure that the amount of rent
payable in a relevant year by a tenant of their social housing in England is 1%
less than the amount that was payable by the tenant in the preceding 12
months.

(2) 15Subsection (1) is subject to subsection (3) and section 20.

(3) The amount of rent payable in the 12 months preceding the first relevant year
is to be treated as being—

(a) the amount that would have been payable in those 12 months if the rate
applicable at the beginning of 8 July 2015 had applied during those 12
20months, or

(b) if the Secretary of State consents to the use of a different day (“the
permitted review day”), the amount that would have been payable in
those 12 months if the rate applicable at the beginning of the permitted
review day had applied during those 12 months.

(4) 25Registered providers of social housing must secure that the amount of rent
payable in a relevant year or a part of a relevant year by—

(a) a person who becomes a tenant of particular social housing in England
after the beginning of the first relevant year, or

(b) a person who, having been a tenant of particular social housing in
30England but not a tenant in relation to whom this section applies,
becomes a tenant of that accommodation in relation to whom this
section applies after the beginning of the first relevant year,

is the amount that would have been payable for that year or part of a year, if
that accommodation had been available from a time before the beginning of the
35first relevant year, the person had been a tenant of that accommodation from a
time before the beginning of the first relevant year, this section had applied in
relation to the person at all times, and reasonable assumptions are made about
the rent that would have been paid.

(5) The regulator may publish a document about the assumptions that the
40regulator considers reasonable.

(6) Where—

(a) a person becomes a tenant of particular social housing in England
during a relevant year, or

(b) a person, having been a tenant of particular social housing in England
45but not a tenant in relation to whom this section applies, becomes a

tenant of that accommodation in relation to whom this section applies
during a relevant year,

references to an amount payable by the tenant in the preceding 12 months are
to be treated as references to an amount that would have been payable if the
5person had been a tenant in relation to whom this section applies for the
preceding 12 months.

(7) For the purposes of this section a relevant year, in relation to a registered
provider, is—

(a) in the case of a registered provider whose practice as regards the
10greater number of its tenants is to change rent payable no more than
once a year and with effect from a single date other than 1 April (“the
review date”)—

(i) a year beginning on the first review date to occur after 1 April
2016, or

(ii) 15a year beginning on the first, second or third anniversary of that
date;

(b) in any other case, a year beginning on 1 April 2016, 1 April 2017, 1 April
2018 or 1 April 2019.

(8) A registered provider whose practice is as described in subsection (7)(a) is to
20be regarded as having complied with the preceding subsections if it treats
tenants in its social housing as if its relevant years were the years mentioned in
subsection (7)(b).

(9) Sections 194(2A) and 198(3) of the Housing and Regeneration Act 2008 (the
powers of the regulator to set and revise standards relating to levels of rent) are
25subject to this section.

(10) In this section—

• “registered provider” means a registered provider of social housing (see
  section 80 of the Housing and Regeneration Act 2008);

• “the regulator” means the Regulator of Social Housing;

• 30“rent” has the same meaning as in Part 2 of the Housing and Regeneration
  Act 2008;

• “social housing” has the same meaning as in Part 2 of the Housing and
  Regeneration Act 2008;

• “tenant” has the same meaning as in Part 2 of the Housing and
  35Regeneration Act 2008.

20 Exceptions

(1) Section 19 does not apply in relation to a tenant of social housing if—

(a) the accommodation is low cost home ownership accommodation;

(b) the accommodation is both low cost rental accommodation and low
40cost home ownership accommodation (see section 71 of the Housing
and Regeneration Act 2008);

(c) the registered provider’s interest in property that consists of or
includes that social housing is subject to a mortgage and there is—

(i) a mortgagee in possession of that interest in the property, or

(ii) 45a receiver appointed by the mortgagee or by the court who is in
receipt of the rents and profits of that interest in the property;

(d) the registered provider’s interest in property that consists of or
includes that social housing was sold by—