Welfare Reform Bill (HL Bill 75)

Welfare Reform BillPage 50

(9) After section 173 there is inserted—

173A Entitlement to be in employment

(1) For the purposes of this Act a person is entitled to engage in or to be in
any employment if (and only if)—

(a) 5the person does not under the Immigration Act 1971 require
leave to enter or remain in the United Kingdom, or

(b) the person has been granted such leave and—

(i) the leave is not invalid,

(ii) the leave has not for any reason ceased to have effect,
10and

(iii) the leave is not subject to a condition preventing the
person from accepting that employment.

(10) In Schedule 11 (statutory sick pay: circumstances in which periods of
entitlement do not arise)—

(a) 15in paragraph 2, at the end there is inserted—

(i) the employee is not entitled to be in his employment
on the relevant date.;

(b) at the end there is inserted—

9 Paragraph 2(i) above does not apply in prescribed
20circumstances.

Part 3 Other benefit changes

Industrial injuries benefit

63 Injuries arising before 5 July 1948

(1) 25In Part 5 of the Social Security Contributions and Benefits Act 1992 (industrial
injuries benefit), the following provisions are repealed—

(a) in section 94(1), the words “after 4th July 1948”;

(b) in section 103(2)(a), the words “after 4th July 1948”;

(c) in section 108(1), the words “and which developed after 4th July 1948”;

(d) 30in section 108(3), the words “but not before 5th July 1948”;

(e) in section 109(5)(a), the words “after 4th July 1948”;

(f) in section 109(5)(b) and (6)(a), the words “and developed after 4th July
1948”.

(2) Accordingly, section 111 and Schedule 8 of that Act (which relate to
35compensation and benefits in respect of industrial injuries before 5 July 1948)
are repealed.

(3) The Secretary of State may make regulations—

(a) for, and in relation to, the payment of industrial injuries benefit to
persons to whom, before the commencement of this section,
40compensation or benefits were payable under section 111 of, and
Schedule 8 to, the Social Security Contributions and Benefits Act 1992;

(b) for claims for the payment of such compensation or benefit to be treated
as claims for industrial injuries benefit.

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(4) In subsection (3) “industrial injuries benefit” has the meaning given by section
122(1) of the Social Security Contributions and Benefits Act 1992.

(5) Regulations under this section are to be made by statutory instrument.

(6) A statutory instrument containing regulations under this section is subject to
5annulment in pursuance of a resolution of either House of Parliament.

64 Persons under 18

(1) In Schedule 4 to the Social Security Contributions and Benefits Act 1992 (rates
of benefits), Part 5 (rates of industrial injuries benefit) is amended as follows.

(2) In entry 1 (which relates to disablement pension (weekly rates)), in the second
10column (“Rate”)—

(a) in the opening words, for the words from “in that Table” to the end of
paragraph (b) there is substituted “in column (2) of that Table.”;

(b) in the Table, column (3) is repealed.

(3) In entry 4 (which relates to the maximum of aggregate of weekly benefit
15payable for successive accidents), in the second column (“Rate”)—

(a) paragraph (a) is repealed, except for the figure of £145.80;

(b) paragraph (b) is repealed, including the figure of £89.35.

65 Trainees

(1) After section 95 of the Social Security Contributions and Benefits Act 1992 there
20is inserted—

95A Employment training schemes etc

(1) In the industrial injuries and diseases provisions any reference to
employed earner’s employment shall be taken to include participation
in an employment training scheme or employment training course of a
25prescribed description (and “employed earner” shall be construed
accordingly).

(2) In those provisions, a reference to an employer, in relation to any such
participation, shall be taken to be a prescribed person.

(3) In this section “industrial injuries and diseases provisions” has the
30same meaning as in section 95(4) above.

(2) In section 11 of the Employment and Training Act 1973 (financial provision), in
subsection (3) (power to make payments in respect of trainees equivalent to
social security benefits payable in respect of employees), for “Parts II to V”
there is substituted “Parts 2 to 4”.

(3) 35The Secretary of State may make regulations—

(a) for, and in relation to, the payment of industrial injuries benefit to
persons to whom, before the commencement of this section, payments
were payable under section 11(3) of the Employment and Training Act
1973;

(b) 40for claims for such payments to be treated as claims for industrial
injuries benefit.

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(4) In subsection (3) “industrial injuries benefit” has the meaning given by section
122(1) of the Social Security Contributions and Benefits Act 1992.

(5) Regulations under this section are to be made by statutory instrument.

(6) A statutory instrument containing regulations under this section is subject to
5annulment in pursuance of a resolution of either House of Parliament.

66 Restriction on new claims for industrial death benefit

In Part 6 of Schedule 7 to the Social Security Contributions and Benefits Act
1992 (industrial death benefit), in paragraph 14, after sub-paragraph (1) there
is inserted—

(1A) 10No claim may be made for industrial death benefit after the coming
into force of this sub-paragraph.

67 Determinations

(1) Section 29(2) of the Social Security Act 1998 (which provides for decisions as to
whether an accident is an industrial accident in the absence of a claim for
15benefit) is repealed.

(2) In section 30 of that Act (effect of decision), in subsection (1), the words from
“(given” to “otherwise)” are repealed.

Housing benefit

68 Housing benefit: determination of appropriate maximum

(1) 20Section 130A of the Social Security Contributions and Benefits Act 1992
(appropriate maximum housing benefit) is amended as follows.

(2) In subsection (3), for “The regulations may provide” there is substituted “The
provision which may be made by the regulations includes provision”.

(3) For subsections (5) and (6) there is substituted—

(5) 25The regulations may, for the purpose of determining the AMHB,
provide for the amount of the liability mentioned in section 130(1)(a)
above to be taken to be an amount other than the actual amount of that
liability (and, without prejudice to the generality of this subsection,
may provide for it to be taken to be the amount of a rent officer
30determination).

(6) The regulations may, for that purpose, make provision for determining
the amount of liability under section 130(1)(a) above which a person is
treated as having by virtue of regulations under section 137(2)(j) below
(and, without prejudice to the generality of this subsection, may
35provide for that amount to be the amount of a rent officer
determination).

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Social fund

69 Ending of discretionary payments

(1) Section 138(1)(b) of the Social Security Contributions and Benefits Act 1992
(discretionary payments out of social fund) is repealed.

(2) 5In consequence of the provision made by subsection (1), the office of the social
fund Commissioner is abolished.

(3) Payments are to be made out of the social fund into the Consolidated Fund in
respect of—

(a) amounts allocated under section 168 of the Social Security
10Administration Act 1992 to the making of such payments as are
mentioned in section 138(1)(b) but which are not so applied in
consequence of subsection (1);

(b) sums relating to such payments as are mentioned in section 138(1)(b)
that are paid into the social fund under section 164 of the Social Security
15Administration Act 1992.

(4) The payments are to be such as the Secretary of State determines in accordance
with any directions of the Treasury to be appropriate.

(5) Subsection (3) is not to prevent the Secretary of State from re-allocating
amounts allocated under section 168(1) of the Social Security Administration
20Act 1992.

(6) The Secretary of State may by order provide for the transfer of property, rights
and liabilities from the social fund Commissioner.

(7) An order under this section may—

(a) provide for the transfer of property, rights and liabilities whether or not
25they would otherwise be capable of being transferred;

(b) make such supplementary, incidental, consequential or transitional
provision as the Secretary of State considers appropriate.

(8) An order under this section is to be made by statutory instrument.

(9) A statutory instrument containing an order under this section is subject to
30annulment in pursuance of a resolution of either House of Parliament.

(10) Schedule 8 contains consequential amendments.

70 Purposes of discretionary payments

In section 138 of the Social Security Contributions and Benefits Act 1992
(payments out of the social fund), in subsection (1)(b), for “to meet other needs”
35there is substituted “to meet—

(i) other needs, and

(ii) in the case of payments by way of budgeting loan, those
needs for which provision is made by paragraph (a),.

71 Determination of amount or value of budgeting loan

(1) 40Section 140 of the Social Security Contributions and Benefits Act 1992
(principles of determination) is amended as follows.

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

(da) that the amount or value of a budgeting loan is not to exceed a
sum specified or determined as specified in the direction;.

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

(4ZA) 5A direction under subsection (4)(da) may require the sum to be
determined by applying, or by a method that includes applying, a
multiplier specified in the direction in circumstances specified in the
direction to the most recent relevant sum published by the Secretary of
State.

(4ZB) 10A relevant sum is a sum determined from time to time by reference to
so much of any relevant allocation under section 168(1) to (4) of the
Administration Act as is available for making payments.

72 External provider social loans and community care grants

Sections 16 to 21 of the Welfare Reform Act 2009 (provisions relating to external
15provider social loans and community care grants), which have not been
brought into force, are repealed.

State pension credit

73 State pension credit: carers

(1) The State Pension Credit Act 2002 is amended as follows.

(2) 20In section 2 (guarantee credit), in subsection (8), for paragraphs (a) and (b)
there is substituted—

(a) the claimant has regular and substantial caring responsibilities,
or

(b) the claimant is a member of a couple the other member of which
25has such responsibilities,.

(3) In section 17 (interpretation), in subsection (1), in the appropriate place there is
inserted—

  • “regular and substantial caring responsibilities” has such
    meaning as may be prescribed;.

74 30State pension credit: capital limit

(1) In section 1 of the State Pension Credit Act 2002 (entitlement), in subsection
(2)—

(a) in paragraph (b), the final “and” is repealed;

(b) at the end there is inserted “and

(d) 35his capital does not exceed a prescribed amount.

(2) In section 19 of that Act (regulations and orders), in subsection (2), before
paragraph (a) there is inserted—

(za) section 1(2)(d),.

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Part 4 Personal independence payment

Personal independence payment

75 Personal independence payment

(1) 5An allowance known as personal independence payment is payable in
accordance with this Part.

(2) A person’s entitlement to personal independence payment may be an
entitlement to—

(a) the daily living component (see section 76);

(b) 10the mobility component (see section 77); or

(c) both those components.

(3) A person is not entitled to personal independence payment unless the person
meets prescribed conditions relating to residence and presence in Great
Britain.

76 15Daily living component

(1) A person is entitled to the daily living component at the standard rate if—

(a) the person’s ability to carry out daily living activities is limited by the
person’s physical or mental condition; and

(b) the person meets the required period condition.

(2) 20A person is entitled to the daily living component at the enhanced rate if—

(a) the person’s ability to carry out daily living activities is severely limited
by the person’s physical or mental condition; and

(b) the person meets the required period condition.

(3) In this section, in relation to the daily living component—

(a) 25“the standard rate” means such weekly rate as may be prescribed;

(b) “the enhanced rate” means such weekly rate as may be prescribed.

(4) In this Part “daily living activities” means such activities as may be prescribed
for the purposes of this section.

(5) See sections 78 and 79 for provision about determining—

(a) 30whether the requirements of subsection (1)(a) or (2)(a) above are met;

(b) whether a person meets “the required period condition” for the
purposes of subsection (1)(b) or (2)(b) above.

(6) This section is subject to the provisions of this Part, or regulations under it,
relating to entitlement to the daily living component (see in particular sections
3580 (persons who are terminally ill) and 81 (persons of pensionable age)).

77 Mobility component

(1) A person is entitled to the mobility component at the standard rate if—

(a) the person is of or over the age prescribed for the purposes of this
subsection;

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(b) the person’s ability to carry out mobility activities is limited by the
person’s physical or mental condition; and

(c) the person meets the required period condition.

(2) A person is entitled to the mobility component at the enhanced rate if—

(a) 5the person is of or over the age prescribed for the purposes of this
subsection;

(b) the person’s ability to carry out mobility activities is severely limited by
the person’s physical or mental condition; and

(c) the person meets the required period condition.

(3) 10In this section, in relation to the mobility component—

(a) “the standard rate” means such weekly rate as may be prescribed;

(b) “the enhanced rate” means such weekly rate as may be prescribed.

(4) In this Part “mobility activities” means such activities as may be prescribed for
the purposes of this section.

(5) 15See sections 78 and 79 for provision about determining—

(a) whether the requirements of subsection (1)(b) or (2)(b) above are met;

(b) whether a person meets “the required period condition” for the
purposes of subsection (1)(c) or (2)(c) above.

(6) This section is subject to the provisions of this Part, or regulations under it,
20relating to entitlement to the mobility component (see in particular sections 80
and 81).

(7) Regulations may provide that a person is not entitled to the mobility
component for a period (even though the requirements in subsection (1) or (2)
are met) in prescribed circumstances where the person’s condition is such that
25during all or most of the period the person is unlikely to benefit from enhanced
mobility.

78 Ability to carry out daily living activities or mobility activities

(1) For the purposes of this Part, the following questions are to be determined in
accordance with regulations—

(a) 30whether a person’s ability to carry out daily living activities is limited
by the person’s physical or mental condition;

(b) whether a person’s ability to carry out daily living activities is severely
limited by the person’s physical or mental condition;

(c) whether a person’s ability to carry out mobility activities is limited by
35the person’s physical or mental condition;

(d) whether a person’s ability to carry out mobility activities is severely
limited by the person’s physical or mental condition.

(2) Regulations must make provision for determining, for the purposes of each of
sections 76(1) and (2) and 77(1) and (2), whether a person meets “the required
40period condition” (see further section 79).

(3) Regulations under this section—

(a) must provide for the questions mentioned in subsections (1) and (2) to
be determined, except in prescribed circumstances, on the basis of an
assessment (or repeated assessments) of the person;

(b) 45must provide for the way in which an assessment is to be carried out;

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(c) may make provision about matters which are, or are not, to be taken
into account in assessing a person.

(4) The regulations may, in particular, make provision—

(a) about the information or evidence required for the purpose of
5determining the questions mentioned in subsections (1) and (2);

(b) about the way in which that information or evidence is to be provided;

(c) requiring a person to participate in such a consultation, with a person
approved by the Secretary of State, as may be determined under the
regulations (and to attend for the consultation at a place, date and time
10determined under the regulations).

(5) The regulations may include provision—

(a) for a negative determination to be treated as made if a person fails
without a good reason to comply with a requirement imposed under
subsection (4);

(b) 15about what does or does not constitute a good reason for such a failure;

(c) about matters which are, or are not, to be taken into account in
determining whether a person has a good reason for such a failure.

(6) In subsection (5)(a) a “negative determination” means a determination that a
person does not meet the requirements of—

(a) 20section 76(1)(a) and (b) or (2)(a) and (b) (daily living component);

(b) section 77(1)(a) to (c) or (2)(a) to (c) (mobility component).

79 Required period condition: further provision

(1) Regulations under section 78(2) must provide for the question of whether a
person meets “the required period condition” for the purposes of section 76(1)
25or (2) or 77(1) or (2) to be determined by reference to—

(a) whether, as respects every time in the previous 6 months, it is likely that
if the relevant ability had been assessed at that time that ability would
have been determined to be limited or (as the case may be) severely
limited by the person’s physical or mental condition; and

(b) 30whether, as respects every time in the next 6 months, it is likely that if
the relevant ability were to be assessed at that time that ability would
be determined to be limited or (as the case may be) severely limited by
the person’s physical or mental condition.

(2) In subsection (1) “the relevant ability” means—

(a) 35in relation to section 76(1) or (2), the person’s ability to carry out daily
living activities;

(b) in relation to section 77(1) or (2), the person’s ability to carry out
mobility activities.

(3) In subsection (1)

(a) 40“assessed” means assessed in accordance with regulations under
section 78;

(b) “the previous 6 months” means the 6 months ending with the
prescribed date;

(c) “the next 6 months” means the 6 months beginning with the day after
45that date.

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(4) Regulations under section 78(2) may provide that in prescribed cases the
question of whether a person meets “the required period condition” for the
purposes of section 76(1) or (2) or 77(1) or (2)

(a) is not to be determined in accordance with the provision made by
5virtue of subsections (1) to (3) above;

(b) is to be determined in accordance with provision made in relation to
those cases by the regulations.

Entitlement and payability: further provision

80 Terminal illness

(1) 10This section applies to a person who—

(a) is terminally ill; and

(b) has made a claim for personal independence payment expressly on the
ground of terminal illness.

(2) A person to whom this section applies is entitled to the daily living component
15at the enhanced rate (and accordingly section 76(1) and (2) do not apply to such
a person).

(3) Section 77(1)(c) and (2)(c) (required period condition for mobility component)
do not apply to a person to whom this section applies.

(4) For the purposes of this section a person is “terminally ill” at any time if at that
20time the person suffers from a progressive disease and the person’s death in
consequence of that disease can reasonably be expected within 6 months.

(5) For the purposes of this section, where—

(a) a person purports to make a claim for personal independence payment
on behalf of another, and

(b) 25the claim is made expressly on the ground that the person on whose
behalf it purports to be made is terminally ill,

that person is to be regarded as making the claim despite its being made
without that person’s knowledge or authority.

(6) In subsection (2) “the enhanced rate” has the meaning given by section 76(3).

81 30Persons of pensionable age

(1) A person is not entitled to the daily living component or the mobility
component for any period after the person reaches the relevant age.

(2) In subsection (1) “the relevant age” means—

(a) pensionable age (within the meaning given by the rules in paragraph 1
35of Schedule 4 to the Pensions Act 1995); or