Welfare Reform Bill (HL Bill 75)

period during which the person is undergoing imprisonment or detention in
legal custody.

Supplementary

85 Claims, awards and information

(1) 5A person is not entitled to personal independence payment for any period
before the date on which a claim for it is made or treated as made by that
person or on that person’s behalf.

(2) An award of personal independence payment is to be for a fixed term except
where the person making the award considers that a fixed term award would
10be inappropriate.

(3) In deciding whether a fixed term award would be inappropriate, that person
must have regard to guidance issued by the Secretary of State.

(4) Information supplied under this Part is to be taken for all purposes to be
information relating to social security.

86 15Report to Parliament

(1) The Secretary of State must lay before Parliament an independent report on the
operation of assessments under section 78.

(2) The report must be laid within 3 years beginning with the coming into force of
that section.

20General

87 Abolition of disability living allowance

Sections 71 to 76 of the Social Security Contributions and Benefits Act 1992
(disability living allowance) are repealed.

88 Amendments

25Schedule 9 contains amendments relating to this Part.

89 Power to make supplementary and consequential provision

(1) The Secretary of State may by regulations make such consequential,
supplementary or incidental provision in relation to any provision of this Part
as the Secretary of State considers appropriate.

(2) 30The Scottish Ministers may by regulations make such consequential,
supplementary or incidental provision in relation to any provision of this Part
as they consider appropriate, subject to subsection (3).

(3) The Scottish Ministers may only make provision under subsection (2) which
would be within the legislative competence of the Scottish Parliament if it were
35contained in an Act of that Parliament.

(4) Regulations under this section may—

(a) amend, repeal or revoke any primary or secondary legislation passed
or made before the day on which this Act is passed, or

(b) amend or repeal any provision of an Act passed on or after that day but
in the same session of Parliament.

(5) 5In this section—

(a) “primary legislation” means an Act or Act of the Scottish Parliament;

(b) “secondary legislation” means any instrument made under primary
legislation.

90 Transitional

(1) 10Regulations may make such provision as the Secretary of State considers
necessary or expedient in connection with the coming into force of any
provision of this Part.

(2) Schedule 10 (transitional provision for introduction of personal independence
payment) has effect.

91 15Regulations

(1) Regulations under this Part are to be made by the Secretary of State, unless
otherwise provided.

(2) A power to make regulations under this Part may be exercised—

(a) so as to make different provision for different cases or purposes;

(b) 20in relation to all or only some of the cases or purposes for which it may
be exercised.

(3) Such a power includes—

(a) power to make incidental, supplementary, consequential or
transitional provision or savings;

(b) 25power to provide for a person to exercise a discretion in dealing with
any matter.

(4) The power under subsection (2)(a) includes, in particular, power to make
different provision for persons of different ages.

(5) Regulations made under this Part by the Secretary of State are to be made by
30statutory instrument.

(6) A statutory instrument containing (whether alone or with other provision)
either or both of the following—

(a) the first regulations under section 78;

(b) the first regulations under that section containing provision about
35assessment of persons under the age of 16,

may not be made unless a draft of the instrument has been laid before, and
approved by a resolution of, each House of Parliament.

(7) Any other statutory instrument containing regulations under this Part is
subject to annulment in pursuance of a resolution of either House of
40Parliament.

(8) Regulations made by the Scottish Ministers under section 89 are subject to—

(a) the affirmative procedure, if they contain provision amending or
repealing primary legislation (within the meaning of that section), and

(b) the negative procedure, in any other case.

92 Interpretation of Part 4

In this Part—

• “daily living activities” has the meaning given by section 76(4);

• 5“daily living component” means the daily living component of personal
  independence payment;

• “mobility activities” has the meaning given by section 77(4);

• “mobility component” means the mobility component of personal
  independence payment;

• 10“prescribed” means prescribed by regulations.

Part 5 Social security: general

Benefit cap

93 Benefit cap

(1) 15Regulations may provide for a benefit cap to be applied to the welfare benefits
to which a single person or couple is entitled.

(2) For the purposes of this section, applying a benefit cap to welfare benefits
means securing that, where a single person’s or couple’s total entitlement to
welfare benefits in respect of the reference period exceeds the relevant amount,
20their entitlement to welfare benefits in respect of any period of the same
duration as the reference period is reduced by an amount up to or equalling the
excess.

(3) In subsection (2) the “reference period” means a period of a prescribed
duration.

(4) 25Regulations under this section may in particular—

(a) make provision as to the manner in which total entitlement to welfare
benefits for any period, or the amount of any reduction, is to be
determined;

(b) make provision as to the welfare benefit or benefits from which a
30reduction is to be made;

(c) provide for exceptions to the application of the benefit cap;

(d) make provision as to the intervals at which the benefit cap is to be
applied;

(e) make provision as to the relationship between application of the benefit
35cap and any other reduction in respect of a welfare benefit;

(f) provide that where in consequence of a change in the relevant amount,
entitlement to a welfare benefit increases or decreases, that increase or
decrease has effect without any further decision of the Secretary of
State;

(g) 40make supplementary and consequential provision.

(5) In this section the “relevant amount” is an amount specified in regulations.

(6) The amount specified under subsection (5) is to be determined by reference to
estimated average earnings.

(7) In this section “estimated average earnings” means the amount which, in the
opinion of the Secretary of State, represents at any time the average weekly
5earnings of a working household in Great Britain after deductions in respect of
tax and national insurance contributions.

(8) The Secretary of State may estimate such earnings in such manner as the
Secretary of State thinks fit.

(9) Regulations under this section may not provide for any reduction to be made
10from a welfare benefit—

(a) provision for which is within the legislative competence of the Scottish
Parliament;

(b) provision for which is within the legislative competence of the National
Assembly for Wales;

(c) 15provision for which is made by the Welsh Ministers, the First Minister
for Wales or the Counsel General to the Welsh Assembly Government.

(10) In this section—

• “couple” means two persons of a prescribed description;

• “prescribed” means prescribed in regulations;

• 20“regulations” means regulations made by the Secretary of State;

• “single person” means a person who is not a member of a couple;

• “welfare benefit” means any prescribed benefit, allowance, payment or
  credit.

(11) Regulations under subsection (10) may not prescribe as welfare benefits—

(a) 25state pension credit under the State Pension Credit Act 2002, or

(b) retirement pensions under Part 2 or 3 of the Social Security
Contributions and Benefits Act 1992.

94 Benefit cap: supplementary

(1) Regulations under section 93 may make different provision for different
30purposes or cases.

(2) Regulations under section 93 must be made by statutory instrument.

(3) A statutory instrument containing regulations under section 93 is subject to
annulment in pursuance of a resolution of either House of Parliament.

(4) In section 150 of the Social Security Administration Act 1992 (annual up-rating
35of benefits) after subsection (7) there is inserted—

“(7A) The Secretary of State—

(a) shall in each tax year review the amount specified under
subsection (5) of section 93 of the Welfare Reform Act 2011
(benefit cap) to determine whether its relationship with
40estimated average earnings (within the meaning of that section)
has changed, and

(b) after that review, may, if the Secretary of State considers it
appropriate, include in the draft of an up-rating order provision
increasing or decreasing that amount.”

(5) In Schedule 2 to the Social Security Act 1998 (decisions against which no appeal
lies) after paragraph 8 there is inserted—

“Reduction on application of benefit cap

8A A decision to apply the benefit cap in accordance with regulations
5under section 93 of the Welfare Reform Act 2011.”

Claims and awards

95 Claims and awards

(1) Section 5(1) of the Social Security Administration Act 1992 (regulations about
claims and payments) is amended as follows.

(2) 10In paragraph (d) (conditional awards), for the words from “the condition” to
the end there is substituted—

“(i) the condition that the requirements for entitlement are
satisfied at a prescribed time after the making of the
award, or

(ii) 15other prescribed conditions;”.

(3) In paragraph (e), for “those requirements” there is substituted “the conditions
referred to in paragraph (d)”.

(4) In paragraph (g) (claims made on behalf of another), after “applies” there is
inserted “(including in particular, in the case of a benefit to be claimed by
20persons jointly, enabling one person to claim for such persons jointly)”.

(5) In paragraph (j) (notice of change of circumstances etc), at the end there is
inserted “or of any other change of circumstance of a prescribed description”.

96 Powers to require information relating to claims and awards

(1) Section 5 of the Social Security Administration Act 1992 (regulations about
25claims and payments) is amended as follows.

(2) In subsection (1), paragraphs (h) and (hh) (powers to make provision requiring
the furnishing of information or evidence) are repealed.

(3) After that subsection there is inserted—

“(1A) Regulations may make provision for requiring a person of a prescribed
30description to supply any information or evidence which is, or could
be, relevant to—

(a) a claim or award relating to a benefit to which this section
applies, or

(b) potential claims or awards relating to such a benefit.”

(4) 35Subsection (3A) is repealed.

(5) In section 22 of the Social Security Act 1998 (suspension for failure to furnish
information etc), in subsection (3), for “subsection (1)(hh) of section 5” there is
substituted “section 5(1A)”.

Payments

97 Payments to joint claimants

In section 5 of the Social Security Administration Act 1992 (regulations about
claims and payments), after subsection (3A) there is inserted—

“(3B) 5The power in subsection (1)(i) above to make provision for the person
to whom a benefit is to be paid includes, in the case of a benefit awarded
to persons jointly, power to make provision for the Secretary of State to
determine to which of them all or any part of a payment should be
made, and in particular for the Secretary of State—

(a) 10to determine that payment should be made to whichever of
those persons they themselves nominate, or

(b) to determine that payment should be made to one of them
irrespective of any nomination by them.”

98 Payments on account

(1) 15In section 5(1) of the Social Security Administration Act 1992 (regulations
about claims and payments), for paragraph (r) there is substituted—

“(r) for the making of a payment on account of such a benefit—

(i) in cases where it is impracticable for a claim to be made
or determined immediately, or for an award to be
20determined or paid in full immediately,

(ii) in cases of need, or

(iii) in cases where the Secretary of State considers in
accordance with prescribed criteria that the payment
can reasonably be expected to be recovered;”.

(2) 25Section 22 of the Welfare Reform Act 2009 (payments on account), which has
not been brought into force, is repealed.

Appeals

99 Power to require consideration of revision before appeal

(1) The Social Security Act 1998 is amended as follows.

(2) 30In section 12 (appeals to First-tier Tribunal), in subsection (2)—

(a) the words from “in relation to” to the end become paragraph (a), and

(b) after that paragraph there is inserted “, or

“(b) where regulations under subsection (3A) so provide.”

(3) After subsection (3) of that section there is inserted—

“(3A) 35Regulations may provide that, in such cases or circumstances as may be
prescribed, there is a right of appeal under subsection (2) in relation to
a decision only if the Secretary of State has considered whether to revise
the decision under section 9.

(3B) The regulations may in particular provide that that condition is met
40only where—

(a) the consideration by the Secretary of State was on an
application,

(b) the Secretary of State considered issues of a specified
description, or

(c) 5the consideration by the Secretary of State satisfied any other
condition specified in the regulations.

(3C) The references in subsections (3A) and (3B) to regulations and to the
Secretary of State are subject to any enactment under or by virtue of
which the functions under this Chapter are transferred to or otherwise
10made exercisable by a person other than the Secretary of State.”

(4) In subsection (7) of that section—

(a) the words from “make provision” to the end become paragraph (a);

(b) after that paragraph there is inserted—

“(b) provide that, where in accordance with regulations
15under subsection (3A) there is no right of appeal against
a decision, any purported appeal may be treated as an
application for revision under section 9.”

(5) In section 80(1)(a) (affirmative procedure for certain regulations) after “12(2)”
there is inserted “or (3A)”.

(6) 20Schedule 11 contains similar amendments to other Acts.

(7) Subsection (8) applies where regulations under a provision mentioned in
subsection (9) are made so as to have effect in relation to a limited area (by
virtue of provision made under section 140(4)(b)).

(8) Any power to make, in connection with those regulations, provision as
25respects decisions and appeals may be exercised so that that provision applies
only in relation to the area mentioned in subsection (7).

(9) The provisions referred to in subsection (7) are—

(a) section 12(3A) of the Social Security Act 1998;

(b) section 4(1B) of the Vaccine Damage Payments Act 1979;

(c) 30subsection (2A) of section 20 of the Child Support Act 1991 (as
substituted by section 10 of the Child Support, Pensions and Social
Security Act 2000);

(d) subsection (3A) of section 20 of the Child Support Act 1991 (as it has
effect apart from section 10 of the Child Support, Pensions and Social
35Security Act 2000);

(e) section 11(2A) of the Social Security (Recovery of Benefits) Act 1997;

(f) paragraph 6(5A) of Schedule 7 to the Child Support, Pensions and
Social Security Act 2000;

(g) section 50(1A) of the Child Maintenance and Other Payments Act 2008.

100 40Supersession of decisions of former appellate bodies

(1) Schedule 12 contains amendments reinstating powers to make decisions
superseding decisions made by appellate bodies before their functions were
transferred to the First-tier Tribunal and Upper Tribunal.

(2) The following have effect as if they had come into force on 3 November 2008—

(a) 45the amendments made by Schedule 12, and

(b) if regulations made in the exercise of the powers conferred by virtue of
those amendments so provide, those regulations.

Electronic communications

101 Electronic communications

(1) 5In section 189 of the Social Security Administration Act 1992 (regulations and
orders - general), after subsection (5) there is inserted—

“(5A) The provision referred to in subsection (5) includes, in a case where
regulations under this Act require or authorise the use of electronic
communications, provision referred to in section 8(4) and (5) and 9(5)
10of the Electronic Communications Act 2000.

(5B) For the purposes of subsection (5A), references in section 8(4) and (5)
and 9(5) of the Electronic Communications Act 2000 to an order under
section 8 of that Act are to be read as references to regulations under
this Act; and references to anything authorised by such an order are to
15be read as references to anything required or authorised by such
regulations.”

(2) In section 79 of the Social Security Act 1998 (regulations and orders), after
subsection (6) there is inserted—

“(6A) The provision referred to in subsection (6) includes, in a case where
20regulations under this Act require or authorise the use of electronic
communications, provision referred to in section 8(4) and (5) and 9(5)
of the Electronic Communications Act 2000.

(6B) For the purposes of subsection (6A), references in section 8(4) and (5)
and 9(5) of the Electronic Communications Act 2000 to an order under
25section 8 of that Act are to be read as references to regulations under
this Act; and references to anything authorised by such an order are to
be read as references to anything required or authorised by such
regulations.”

Recovery of benefits

102 30Recovery of benefit payments

(1) In the Social Security Administration Act 1992, after section 71ZA there is
inserted—

“Recovery of benefit payments

71ZB Recovery of overpayments of certain benefits

(1) 35The Secretary of State may recover any amount of the following paid in
excess of entitlement—

(a) universal credit,

(b) jobseeker’s allowance,

(c) employment and support allowance, and

(d) 40except in prescribed circumstances, housing credit (within the
meaning of the State Pension Credit Act 2002).

(2) An amount recoverable under this section is recoverable from—

(a) the person to whom it was paid, or

(b) such other person (in addition to or instead of the person to
whom it was paid) as may be prescribed.

(3) 5An amount paid in pursuance of a determination is not recoverable
under this section unless the determination has been—

(a) reversed or varied on an appeal, or

(b) revised or superseded under section 9 or section 10 of the Social
Security Act 1998,

10except where regulations otherwise provide.

(4) Regulations may provide that amounts recoverable under this section
are to be calculated or estimated in a prescribed manner.

(5) Where an amount of universal credit is paid for the sole reason that a
payment by way of prescribed income is made after the date which is
15the prescribed date for payment of that income, that amount is for the
purposes of this section paid in excess of entitlement.

(6) In the case of a benefit referred to in subsection (1) which is awarded to
persons jointly, an amount paid to one of those persons may for the
purposes of this section be regarded as paid to the other.

(7) 20An amount recoverable under this section may (without prejudice to
any other means of recovery) be recovered—

(a) by deduction from benefit (section 71ZC);

(b) by deduction from earnings (section 71ZD);

(c) through the courts etc (section 71ZE);

(d) 25by adjustment of benefit (section 71ZF).

71ZC Deduction from benefit

(1) An amount recoverable from a person under section 71ZB may be
recovered by deducting the amount from payments of prescribed
benefit to the person.

(2) 30Where an amount recoverable from a person under section 71ZB was
paid to the person on behalf of another, subsection (1) authorises its
recovery from the person by deduction—

(a) from prescribed benefits to which the person is entitled,

(b) from prescribed benefits paid to the person to discharge (in
35whole or in part) an obligation owed to that person by the
person on whose behalf the recoverable amount was paid, or

(c) from prescribed benefits paid to the person to discharge (in
whole or in part) an obligation owed to that person by any other
person.

(3) 40Where an amount is recovered as mentioned in paragraph (b) of
subsection (2), the obligation specified in that paragraph shall in
prescribed circumstances be taken to be discharged by the amount of
the deduction.

(4) Where an amount is recovered as mentioned in paragraph (c) of
45subsection (2), the obligation specified in that paragraph shall in all
cases be taken to be so discharged.

71ZD Deduction from earnings

(1) Regulations may provide for amounts recoverable under section 71ZB
to be recovered by deductions from earnings.

(2) In this section “earnings” has such meaning as may be prescribed.

(3) 5Regulations under subsection (1) may include provision—

(a) requiring the person from whom an amount is recoverable (“the
beneficiary”) to disclose details of their employer, and any
change of employer, to the Secretary of State;

(b) requiring the employer, on being served with a notice by the
10Secretary of State, to make deductions from the earnings of the
beneficiary and to pay corresponding amounts to the Secretary
of State;

(c) as to the matters to be contained in such a notice and the period
for which a notice is to have effect;

(d) 15as to how payment is to be made to the Secretary of State;

(e) as to a level of earnings below which earnings must not be
reduced;

(f) allowing the employer, where the employer makes deductions,
to deduct a prescribed sum from the beneficiary’s earnings in
20respect of the employer’s administrative costs;

(g) requiring the employer to keep records of deductions;

(h) requiring the employer to notify the Secretary of State if the
beneficiary is not, or ceases to be, employed by the employer;

(i) creating a criminal offence for non-compliance with the
25regulations, punishable on summary conviction by a fine not
exceeding level 3 on the standard scale;

(j) with respect to the priority as between a requirement to deduct
from earnings under this section and—

(i) any other such requirement;

(ii) 30an order under any other enactment relating to England
and Wales which requires deduction from the
beneficiary’s earnings;

(iii) any diligence against earnings.

71ZE Court action etc

(1) 35Where an amount is recoverable under section 71ZB from a person
residing in England and Wales, the amount is, if a county court so
orders, recoverable—