Welfare Reform and Work Bill (HC Bill 81)

Welfare Reform and Work BillPage 10

(5) Subsection (11) (benefits that regulations may not prescribe as welfare benefits)
is omitted.

(6) In section 97 of the Welfare Reform Act 2012 (benefit cap: supplementary),
subsection (3) (procedure for first regulations under section 96) is omitted.

(7) 5Paragraph 52 of Schedule 12 to the Pensions Act 2014 is omitted.

(8) Regulations made by the Secretary of State 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 subsections (1) to (6).

(9) Regulations under subsection (8) may in particular—

(a) 10provide for section 96 to have effect as if the amendments made by
subsections (2) to (5) and (7) 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
Secretary of State;

(b) 15provide 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),
including provision for the Secretary of State to issue notices to
20authorities administering housing benefit that have effect in relation to
persons specified, or persons of a description specified, in the notices.

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

(11) 25Regulations under subsection (8) must be made by statutory instrument.

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

8 Review of benefit cap

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

96A 30Benefit 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) The Secretary of State may, at any other time the Secretary of State
35considers 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) the national economic situation, and

(b) 40any 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
section 96(5A).

Welfare Reform and Work BillPage 11

(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) 5Regulations 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) 10provide 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
specified in a notice issued by the Secretary of State;

(b) 15provide 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), including provision for the Secretary of State to issue notices
20to 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
25regulations under subsection (4).

(9) If an early parliamentary general election is to take place in accordance
with 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
30amended as follows.

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

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

(5) After subsection (3) insert—

(3A) A statutory instrument containing regulations under section 96A(4)
35that 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
a resolution of, each House of Parliament.”

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

(7) Subsection (5) is omitted.

(8) 40In section 150 of the Social Security Administration Act 1992 (annual up-rating
of benefits), subsection (7A) (review of the benefit cap) is omitted.

Welfare Reform and Work BillPage 12

9 Freeze 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) 5For each of the tax years ending with 5 April 2017, 5 April 2018, 5 April 2019
and 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
10ending 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.

(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
15benefit.

(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
20the 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 the same
    25meaning 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;

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

  • “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) 35For 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
40with 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
    Schedule 1;

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

Welfare Reform and Work BillPage 13

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) In subsection (2)—

(a) 5in 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) at the end insert , and

(c) 10an 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
subsection is to be known as the disability element of child tax credit”.

(4) 15After 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
April 2017.

(3B) 20The 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
credit for no more than one other child or qualifying young
25person, 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
of child tax credit to vary according to whether the child or
30qualifying 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) After subsection (1) insert—

(1A) 35But 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) for “if such a” substitute “for each”;

(b) 40after “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)—

Welfare Reform and Work BillPage 14

(a) in regulation 24(1) (the child element), after “responsible” insert “and in
respect 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
5first child or qualifying young person;

(ii) in the row under “Child element” showing the amount for
second 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
10provision or savings as the Secretary of State considers necessary or expedient
in connection with the coming into force of this section.

(7) Regulations 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 15Employment 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) in subsection (1)(b), omit “or the work-related activity component”;

(b) 20omit 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) in subsection (2)(b), omit “or the work-related activity component”;

(b) 25omit 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
in connection with the coming into force of subsections (1) to (3).

(5) 30Regulations 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
disablement allowance or income support after the coming into force of
35subsections (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 Universal credit: limited capability for work element

40In section 12(2) of the Welfare Reform Act 2012 (universal credit: particular
needs or circumstances), omit paragraph (a).

Welfare Reform and Work BillPage 15

15 Universal credit: work-related requirements

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

(a) in section 20(1)(a) (claimants subject to work-focused interview
5requirement 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) the claimant is the responsible carer for a child who is
aged 2,”;

(c) 10omit 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) in regulation 91 (claimants subject to work-focused interview
requirement only), omit paragraph (1);

(b) 15regulation 91A (claimants subject to work preparation requirement) is
revoked.

Loans for mortgage interest etc

16 Loans for mortgage interest etc

(1) The Secretary of State may by regulations provide for loans to be made in
20respect of a person’s liability to make owner-occupier payments in respect of
accommodation occupied by the person 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) 25is entitled to receive income support, income-based jobseeker’s
allowance, 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 liabilities in respect of which a
30loan under the regulations may be made.

(5) Regulations under subsection (4) may in particular provide that a loan under
the regulations may only be made if, and to the extent that, a person’s liability
to make owner-occupier payments was incurred for purposes prescribed by
the regulations.

(6) 35Regulations under subsection (4) may in particular make provision about—

(a) determining or calculating the amount of a person’s liabilities;

(b) the maximum amount of a person’s liabilities in respect of which a loan
under the regulations may be made.

(7) The regulations may—

(a) 40make 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 mortgage of
or charge over a legal or beneficial interest in land or, in Scotland, by a
heritable security.

Welfare Reform and Work BillPage 16

(8) The regulations may define “owner-occupier payment”.

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

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

(11) 5A statutory instrument containing regulations under this section is subject to
annulment 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) 10circumstances in which a person is to be treated as liable or not liable to
make owner-occupier payments;

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

(3) The regulations may include—

(a) 15provision 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
requirements about receiving financial advice;

(c) provision about entering into an agreement (which may contain such
20terms and conditions as the Secretary of State thinks fit, subject to what
may be provided in the regulations);

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

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

(f) 25provision about the payment of interest, including provision
prescribing or providing for the determination of the rate of interest;

(g) provision enabling administrative costs to be charged;

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

(i) provision about accepting substituted security.

(4) 30The regulations may make provision—

(a) requiring that, in circumstances prescribed by the regulations, money
lent in respect of a person’s liability to make owner-occupier
payments—

(i) is paid directly to the qualifying lender;

(ii) 35is applied by the qualifying lender towards discharging the
person’s liability to make owner-occupier payments;

(b) for 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
40by the regulations, by deducting and retaining such part as may be
prescribed by the regulations of the amounts that would otherwise be
paid 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
45been, to credit against the liability in relation to which the amount is

Welfare Reform and Work BillPage 17

paid the amount of the difference (in addition to the payment actually
made);

(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
5the purposes of this section (other than this paragraph);

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

(i) of 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
10virtue of paragraph (b);

(f) for cases where the same person is liable to make owner-occupier
payments under more than one agreement to make such payments.

(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) 15The regulations may include—

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

(b) provision authorising the disclosure of information.

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

(a) 20a deposit taker;

(b) an insurer;

(c) a 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) 25a council constituted under section 2 of the Local Government etc.
(Scotland) Act 1994;

(e) a new town corporation;

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

(8) In this section—

  • 30“deposit taker” means—

    (a)

    a person who has permission under Part 4A of the Financial
    Services 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
    3515 of that Schedule (as a result of qualifying for authorisation
    under paragraph 12 of that Schedule) to accept deposits;

  • “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
    40of insurance, or

    (b)

    an EEA firm of the kind mentioned in paragraph 5(d) 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 effect and carry out
    45contracts of insurance.

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

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

Welfare Reform and Work BillPage 18

(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
5benefit of sums in respect of mortgage interest) is repealed.

(2) In section 3A of the State Pension Credit Act 2002 (housing credit), in
subsection (5)(a), omit the words from “(and,” to “payments)”.

(3) 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
10“payments)”.

(4) The following provisions are repealed—

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

(i) section 1;

(ii) Schedule 1;

(b) 15in 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) in the Welfare Reform Act 2012—

(i) 20in Schedule 2, paragraph 6;

(ii) in Schedule 4, paragraph 11;

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

19 Transitional provision

(1) Regulations made by the Secretary of State may make such transitional or
25transitory provision or savings as the Secretary of State considers necessary or
expedient in connection with the coming into force of sections 16 to 18.

(2) The regulations may include provision for temporarily excluding the making
of a loan under regulations under section 16 after the coming into force of
sections 16 to 18.

(3) 30Regulations under subsection (2) may in particular—

(a) provide for a temporary exclusion to continue until a time or times
specified in a notice issued by the Secretary of State;

(b) enable the Secretary of State to issue notices under paragraph (a)
specifying different times for different persons or descriptions of
35person.

(4) The regulations may include provision for enabling assistance with payments
in respect of accommodation occupied as a home to be given by means of a
qualifying benefit after the coming into force of sections 16 to 18 (including
where the making of loans is temporarily excluded).

(5) 40Regulations under subsection (4) may in particular—

(a) provide for legislation that has been repealed or revoked to be treated
as having effect;

Welfare Reform and Work BillPage 19

(b) provide for assistance by means of a qualifying benefit to continue until
a time or times specified in a notice issued by the Secretary of State;

(c) enable the Secretary of State to issue notices under paragraph (b)
specifying different times for different persons or descriptions of
5person.

(6) In this section “qualifying benefit” means income support, income-based
jobseeker’s allowance, income-related employment and support allowance,
state pension credit or universal credit.

(7) Regulations under this section may make different provision for different
10areas, cases or purposes.

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

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

Social security administration

20 15Expenses of paying sums in respect of vehicle hire etc

In the Social Security Administration Act 1992, after section 15A insert—

“Expenses in respect of vehicle hire etc

15B Expenses of paying sums in respect of vehicle hire etc

(1) This section applies where—

(a) 20a relevant benefit component is payable in respect of a person
(“the beneficiary”),

(b) an agreement has been entered into by or on behalf of the
beneficiary with a relevant provider for the lease or hire
purchase of a motor vehicle, and

ERROR:This is very likely an error in markup in the FM document. [\t(c)\t by virtue of regulations under section 5(1), the Secretary of State pays all or part of the relevant benefit component to the relevant provider for the purpose of discharging, in whole or in part, an obligation of the beneficiary under the agreement.]

(2) Regulations may make provision—

(a) 30for the expenses of the Secretary of State in administering the
making of payments to relevant providers to be defrayed, in
whole or in part, at the expense of relevant providers, whether
by requiring them to pay prescribed fees or by deducting and
retaining a prescribed part of the payments that would
35otherwise be made to them or by such other method as may be
prescribed;

(b) for the recovery from a relevant provider of any fees or other
sums due from that provider under paragraph (a).

(3) In this section—

  • 40“relevant benefit component” means—

    (a)

    the mobility component of disability living allowance, if
    it is payable at the higher rate (see section 73(11)(a) of

    Welfare Reform and Work BillPage 20

    the Social Security Contributions and Benefits Act 1992),
    or

    (b)

    the mobility component of personal independence
    payment, if it is payable at the enhanced rate (see section
    579(2) of the Welfare Reform Act 2012);

  • “relevant provider” means a person whose business consists of or
    includes the supply by way of lease or hire purchase of motor
    vehicles to persons in respect of whom a relevant benefit
    component is payable.”

10Social housing rents

21 Reduction in social housing rents

(1) In relation to each relevant year, registered providers of social housing must
secure that the amount of rent payable in respect of that relevant year by a
tenant of their social housing in England is at least 1% less than the amount of
15rent that was payable by the tenant in respect of the preceding 12 months.

(2) If—

(a) the tenancy of particular social housing comes to an end after part of a
relevant year has elapsed, or

(b) this section ceases to apply in relation to the tenancy of particular social
20housing after part of a relevant year has elapsed,

the requirement in subsection (1) has effect in relation to the part of the relevant
year falling before that time with a proportionate reduction in the maximum
amount of rent payable to the registered provider by the tenant.

(3) The amount of rent payable to the registered provider by the tenant in respect
25of the 12 months preceding the first relevant year is to be treated for the
purposes of subsection (1) as having been the greater of the following
amounts—

(a) the amount of rent that would have been payable in respect of those 12
months if the rate of rent applicable at the beginning of 8 July 2015 had
30applied during those 12 months, and

(b) if the Secretary of State consents to the use by the registered provider of
a different day (“the permitted review day”), the amount of rent that
would have been payable in respect of those 12 months if the rate of
rent applicable at the beginning of the permitted review day had
35applied during those 12 months.

(4) A consent given for the purposes of subsection (3) may be a consent given for
a particular case or for a description of cases.

(5) If a tenancy existing in the first relevant year began before the beginning of 8
July 2015 but less than 12 months before the beginning of the first relevant year,
40the tenancy is to be treated for the purposes of subsection (1) as having begun
at least 12 months before the first relevant year (and subsection (3) is to have
effect accordingly).

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

(a) 45in the case of a private registered provider whose practice as regards
the greater number of its tenancies is to change rent payable no more

Welfare Reform and Work BillPage 21

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) 5a 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.

(7) A private registered provider whose practice is as described in subsection
10(6)(a) is to be 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 (6)(b).

(8) This section is subject to—

(a) section 26 (provision about excepted cases);

(b) 15Schedule 2 (further provision about social housing rents).

22 Exceptions

(1) Section 21 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
20cost home ownership accommodation (see section 71 of the Housing
and Regeneration Act 2008).

(2) Section 21 does not apply in relation to social housing that consists of or is
included in a property if, where the property is subject to a mortgage or other
arrangement under which it is security for the payment of a sum or sums—

(a) 25the mortgagee, or a person entitled under the arrangement to be in
possession of the property, is in possession of the property,

(b) a receiver has been appointed by the mortgagee, by a person entitled
under the arrangement to do so or by the court to receive the rents and
profits of that property and that appointment is in force, or

(c) 30a person has been appointed under or because of the mortgage or the
arrangement to administer or sell or otherwise dispose of the property
and that appointment is in force.

(3) If a registered provider’s interest in property that consists of or includes social
housing—

(a) 35was mortgaged or made subject to an arrangement other than a
mortgage under which the interest in property was security for the
payment of a sum or sums, and

(b) is sold or otherwise disposed of after the coming into force of section 21
by—

(i) 40the mortgagee or a person entitled under the arrangement to do
so,

(ii) a receiver appointed by the mortgagee, by a person entitled
under the arrangement to do so or by the court to receive the
rents and profits of the interest in property, or

(iii) 45a person appointed under or because of the mortgage or the
arrangement to exercise powers that consist of or include the
sale or other disposal of the interest in property,

section 21 ceases at that time to apply in relation to that social housing.

Welfare Reform and Work BillPage 22

(4) The Secretary of State may by regulations provide for section 21 not to apply in
cases prescribed by the regulations.

(5) Regulations under subsection (4) may in particular make provision about—

(a) tenants of a description prescribed by the regulations;

(b) 5tenancies of a description prescribed by the regulations;

(c) accommodation of a description prescribed by the regulations;

(d) accommodation which satisfies conditions prescribed by the
regulations, including conditions relating to the funding of its building
or refurbishment;

(e) 10events of a description prescribed by the regulations.

(6) Regulations made by virtue of subsection (5)(a) may include provision about
tenants whose income exceeds, or whose household’s incomes exceed, an
amount prescribed by the regulations during a period prescribed by the
regulations.

(7) 15Regulations made by virtue of subsection (5)(e) may include provision about
periods during a tenancy when the rent payable is temporarily reduced or
waived.

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

(9) A statutory instrument containing regulations under this section is subject to
20annulment in pursuance of a resolution of either House of Parliament.

23 Exemption of a registered provider of social housing

(1) The regulator may issue a direction mentioned in subsection (2) in respect of a
private registered provider if—

(a) the condition in subsection (4) or (5) is satisfied, and

(b) 25the Secretary of State consents.

(2) The directions are—

(a) a direction that section 21 does not apply in relation to a private
registered provider specified in the direction;

(b) a direction that section 21 is to have effect in relation to a private
30registered provider specified in the direction as if in section 21(1) for “at
least 1% less than” there were substituted “no more than”;

(c) a direction that section 21 is to have effect in relation to a private
registered provider specified in the direction as if section 21(1) required
at least the lesser reduction specified in the direction;

(d) 35a direction that section 21 is to have effect in relation to a private
registered provider specified in the direction as if section 21(1) required
the private registered provider to secure that the amount of rent
payable by tenants of their social housing increased by no more than
the percentage specified in the direction.

(3) 40The regulator may specify in a direction—

(a) the period during which it is to have effect, and

(b) the social housing in relation to which it is to have effect.

(4) The condition in this subsection is that the regulator considers that complying
with section 21 would jeopardise the financial viability of the private registered
45provider.

Welfare Reform and Work BillPage 23

(5) The condition in this subsection is that the circumstances of the private
registered provider satisfy requirements prescribed in regulations made by the
Secretary of State.

(6) The regulator may publish a document about the measures that the regulator
5considers could be taken by a private registered provider to comply with
section 21 and to avoid jeopardising its financial viability.

(7) The Secretary of State may issue a direction mentioned in subsection (8) in
respect of a local authority if the condition in subsection (10) or (11) is satisfied.

(8) The directions are—

(a) 10a direction that section 21 does not apply in relation to a local authority
specified in the direction;

(b) a direction that section 21 is to have effect in relation to a local authority
specified in the direction as if in section 21(1) for “at least 1% less than”
there were substituted “no more than”;

(c) 15a direction that section 21 is to have effect in relation to a local authority
specified in the direction as if section 21(1) required at least the lesser
reduction specified in the direction;

(d) a direction that section 21 is to have effect in relation to a local authority
specified in the direction as if section 21(1) required the authority to
20secure that the amount of rent payable by tenants of their social
housing increased by no more than the percentage specified in the
direction.

(9) The Secretary of State may specify in a direction—

(a) the period during which it is to have effect, and

(b) 25the social housing in relation to which it is to have effect.

(10) The condition in this subsection is that the Secretary of State considers that the
local authority would be unable to avoid serious financial difficulties if it were
to comply with section 21.

(11) The condition in this subsection is that the circumstances of the local authority
30satisfy requirements prescribed in regulations made by the Secretary of State.

(12) The Secretary of State may publish a document about the measures that the
Secretary of State considers could be taken by a local authority in order to
comply with section 21 and to avoid serious financial difficulties.

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

(14) 35A statutory instrument containing regulations under this section is subject to
annulment in pursuance of a resolution of either House of Parliament.

24 Enforcement

(1) Part 2 of the Housing and Regeneration Act 2008 is amended as follows.

(2) In section 220 (grounds for giving an enforcement notice to a registered
40provider), after subsection (11) insert—

(11A) Case 11 is where the registered provider has failed to comply with
section 21 of the Welfare Reform and Work Act 2015.”

(3) In section 227 (grounds for imposing a penalty on a private registered

Welfare Reform and Work BillPage 24

provider), after subsection (7) insert—

(7A) Case 7 is where the registered provider has failed to comply with
section 21 of the Welfare Reform and Work Act 2015.”

(4) In section 237 (grounds for requiring a private registered provider to pay
5compensation), after subsection (3) insert—

(4) Case 3 is where the registered provider has failed to comply with
section 21 of the Welfare Reform and Work Act 2015.”

(5) In section 247 (management tender), in subsection (1), after paragraph (a) (and
before the “or” following it) insert—

(aa) 10a registered provider has failed to comply with section 21 of the
Welfare Reform and Work Act 2015,”.

(6) In section 251 (appointment of manager of a private registered provider), in
subsection (1) after paragraph (a) (and before the “or” following it) insert—

(aa) a private registered provider has failed to comply with section
1521 of the Welfare Reform and Work Act 2015,”.

25 Further provision about social housing rents

In Schedule 2—

(a) Part 1 makes further provision about the maximum amount of rent that
registered providers must secure is payable in respect of a relevant year
20or part of a relevant year by a tenant of their social housing in England;

(b) Part 2 contains provision about exceptions, exemptions and
enforcement;

(c) Part 3 contains general provision.

26 Provision about excepted cases

(1) 25The Secretary of State may by regulations make provision about the maximum
amount of rent payable to a registered provider in respect of a relevant year, or
a part of a relevant year, by a tenant of social housing in relation to whom—

(a) section 21 does not apply because of an exception in regulations under
section 22;

(b) 30a provision about levels of rent in Part 1 of Schedule 2 does not apply
because of an exception in regulations under paragraph 5 of that
Schedule.

(2) The Secretary of State may by regulations make provision about the maximum
amount of rent payable to a registered provider by a tenant of social housing—

(a) 35in respect of the part of the relevant year after an exception in
regulations under section 22 ceases to apply;

(b) in respect of the part of the relevant year after an exception in
regulations under paragraph 5 of Schedule 2 ceases to apply;

(c) in respect of the following relevant year (if any).

(3) 40Regulations under subsection (1) or (2) may, in particular, require registered
providers to secure that the maximum amount of rent payable in respect of a
relevant year, or part of a relevant year, is an amount determined as specified
in the regulations.

Welfare Reform and Work BillPage 25

(4) Regulations under subsection (1) or (2) may make provision about disapplying
or modifying a requirement in the regulations as it relates to a registered
provider.

(5) Regulations made by virtue of subsection (4) may, in particular, enable the
5Secretary of State or the regulator to issue a direction that disapplies or
modifies a requirement as it relates to a registered provider.

(6) Regulations made by virtue of subsection (5) may provide for a direction to
specify—

(a) the period during which it has effect;

(b) 10the social housing in relation to which it has effect.

(7) Regulations made by virtue of subsection (5) may—

(a) provide for conditions to be satisfied before a direction is issued;

(b) provide for the regulator to obtain the consent of the Secretary of State
before issuing a direction.

(8) 15Regulations under subsection (1) or (2) may make provision about the
enforcement of the regulations, including provision applying Part 2 of the
Housing and Regeneration Act 2008 with modifications.

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

(10) A statutory instrument containing regulations under this section is subject to
20annulment in pursuance of a resolution of either House of Parliament.

27 Rent standards

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
subject to sections 21 to 23 and 26 and Schedule 2.

28 25Interpretation