Welfare Reform Bill (HL Bill 75)

(b) in paragraph (e), for “relevant authorities” there is substituted “local
authorities”;

(c) in paragraphs (f), (g) and (h), for “relevant authority” there is
substituted “local authority”.

(4) 5In subsection (5), for “relevant authorities” there is substituted “local
authorities”.

(5) In subsection (7), for the definition of “relevant authority” there is
substituted—

• ““local authority” has the meaning given by section 191 of the
  10Social Security Administration Act 1992.”

12 (1) Section 70 (grants towards cost of discretionary housing payments) is
amended as follows.

(2) In subsection (1), after “payments” there is inserted “(“grants”)”.

(3) For subsection (2) there is substituted—

“(2) 15The amount of a grant under this section shall be determined in
accordance with an order made by the Secretary of State with the
consent of the Treasury.”

(4) In subsection (8)—

(a) for the definition of “relevant authority” there is substituted—

• 20““local authority” has the same meaning as in section
  69;”;

(b) the definition of “subsidy” is repealed.

13 After section 70 there is inserted—

“70A Payment of grant

(1) 25A grant under section 70 shall be made by the Secretary of State in
such instalments, at such times, in such manner and subject to such
conditions as to claims, records, certificates, audit or otherwise as
may be provided by order of the Secretary of State with the consent
of the Treasury.

(2) 30The order may provide that if a local authority has not complied with
the conditions specified in it within such period as may be specified
in it, the Secretary of State may estimate the amount of grant under
section 70 payable to the authority and employ for that purpose such
criteria as he considers relevant.

(3) 35Where a grant under section 70 has been paid to a local authority and
it appears to the Secretary of State that—

(a) the grant has been overpaid, or

(b) there has been a breach of any condition specified in an order
under this section,

40he may recover from the authority the whole or such part of the
payment as he may determine.

(4) Without prejudice to the other methods of recovery, a sum
recoverable under this section may be recovered by withholding or
reducing subsidy.

(5) An order under this section may be made before, during or after the
end of the period to which it relates.

(6) In this section “local authority” has the same meaning as in section
69.

(7) 5Section 70(5) to (7) applies to orders under this section.”

Capital Allowances Act 2001 (c. 2)Capital Allowances Act 2001 (c. 2)

14 In Schedule A1 to the Capital Allowances Act 2001 (first-year tax credits), in
paragraph 17(1)(b) after “sick pay,” there is inserted “or”.

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

15 10The Social Security Fraud Act 2001 is amended as follows.

(16) In section 6B (loss of benefit for conviction etc), in subsection (5), for “to (10)” there is substituted “and (8)”.

(17) In section 7 (loss of benefit for repeated conviction etc), in subsection (2), for “to (5)” there is substituted “and (4A)”.

(18) In section 11 (regulations), in subsection (3)(c), for the words from “section” to the end there is substituted “section 6B(5A) or (8), 7(2A) or (4A) or 9(2A) or (4A)”.

Commissioners for Revenue and Customs Act 2005 (c. 11)Commissioners for Revenue and Customs Act 2005 (c. 11)

19 15The Commissioners for Revenue and Customs Act 2005 is amended as
follows.

(20) In section 5 (initial functions), in subsection (1), after paragraph (a) there is inserted “and”.

(21) In section 44 (payment into Consolidated Fund), in subsection (3), after paragraph (b) there is inserted “and”.

Welfare Reform Act 2007 (c. 5)2007 (c. 5)

22 20The Welfare Reform Act 2007 is amended as follows.

23 In section 1 (employment and support allowance), in subsection (3)(d), at the
end there is inserted “and”.

24 In section 2 (amount of contributory allowance), in subsection (1), for “In the
case of a contributory allowance, the amount payable” there is substituted
25“The amount payable by way of an employment and support allowance”.

25 (1) Section 27 (financial provisions) is amended as follows.

(2) In subsection (1), for the words from “so much of” to the end there is
substituted “any sums payable by way of employment and support
allowance”.

(3) 30In subsection (3), for “contributory” there is substituted “employment and
support”.

26 In each of the following provisions, for “a contributory allowance” there is
substituted “an employment and support allowance”—

(a) section 1A(1) and (2) (as inserted by section 51 of this Act);

(b) section 3(2)(d);

(c) 5section 18(4);

(d) section 20(2), (3)(a), (b) and (c), (4), (5)(a), (b) and (c), (6), (7)(a), (b)
and (c);

(e) in Schedule 1, paragraphs 1(5)(d) and 3(2)(a);

(f) in Schedule 2, paragraphs 6 and 7(2)(d).

10Corporation Tax Act 2009 (c. 4)Corporation Tax Act 2009 (c. 4)

27 The Corporation Tax Act 2009 is amended as follows.

(28) In section 1059 (relief relating to SME R&D: total amount of company’s PAYE and NICs liabilities), in subsection (5) after “sick pay” there is inserted “or”.

(29) In section 1108 (relief relating to vaccine research etc: total amount of company’s PAYE and NICs liabilities), in subsection (5) after “sick pay” there is inserted “or”.

Section 35

SCHEDULE 4 15Housing credit element of state pension credit

Part 1 Amendments to State Pension Credit Act 2002

State Pension Credit Act 2002 (c. 16)2002 (c. 16)

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

2 20In section 1 (entitlement), in subsection (2)(c), at the end there is inserted “or

“(iii) the conditions in section 3A(1) and (2) (housing
credit).”

3 In that section, in subsection (3)—

(a) after paragraph (b) there is inserted “or

“(c) 25to a housing credit, calculated in accordance with
section 3A, if he satisfies the conditions in subsections
(1) and (2) of that section,”;

(b) for the words from “(or to both)” to the end there is substituted “(or
to more than one of them, if he satisfies the relevant conditions)”.

4 30After section 3 there is inserted—

“3A Housing credit

(1) The first of the conditions mentioned in section 1(2)(c)(iii) is that the
claimant is liable to make payments in respect of the accommodation
he occupies as his home.

(2) The second of the conditions mentioned in section 1(2)(c)(iii) is that
the claimant’s capital and income are such that the amount of the
housing credit payable (if he were entitled to it) would not be less
than a prescribed amount.

(3) 5Where the claimant is entitled to a housing credit, the amount of the
housing credit shall be an amount calculated in or determined under
regulations (which may be zero).

(4) For the purposes of subsection (1)—

(a) the accommodation must be in Great Britain;

(b) 10the accommodation must be residential accommodation;

(c) it is immaterial whether the accommodation consists of the
whole or part of a building and whether or not it comprises
separate and self-contained premises.

(5) Regulations may make provision as to—

(a) 15the meaning of “payments in respect of accommodation” for
the purposes of this section (and, in particular, as to the extent
to which such payments include mortgage payments);

(b) circumstances in which a claimant is to be treated as liable or
not liable to make such payments;

(c) 20circumstances in which a claimant is to be treated as
occupying or not occupying accommodation as his home
(and, in particular, for temporary absences to be
disregarded);

(d) circumstances in which land used for the purposes of any
25accommodation is to be treated as included in the
accommodation.

(6) Regulations under this section may make different provision for
different areas.”

5 In section 7 (fixing of retirement provision for assessed income period), at
30the end there is inserted—

“(10) Regulations may prescribe circumstances in which subsection (3)
does not apply for the purposes of determining the amount of a
housing credit to which the claimant is entitled.”

6 In section 12 (polygamous marriages), in subsection (2)(b), after “savings
35credit” there is inserted “or housing credit”.

7 In section 17 (interpretation), in subsection (1), after the definition of
“guarantee credit” there is inserted—

• ““housing credit” shall be construed in accordance with
  sections 1 and 3A;”.

(8) 40In Schedule 2 (consequential amendments etc), paragraph 9(5)(a) is repealed.

Part 2 Amendments to other Acts

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

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

10 5In section 5 (regulations about claims and payments) in subsection (6),
before “subsection” there is inserted “or housing credit (within the meaning
of the State Pension Credit Act 2002)”.

11 In section 15A (mortgage interest)—

(a) in subsection (1A)—

(i) 10in paragraph (b), for “the appropriate minimum guarantee
for the purposes of” there is substituted “entitlement to”;

(ii) in the closing words, for “appropriate minimum guarantee
for the purposes of” there is substituted “entitlement to”;

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

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

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

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

(4) After that subsection there is inserted—

“(5) 20In this section “housing credit” has the same meaning as in the State
Pension Credit Act 2002”.

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

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

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

(3) 25In subsection (1), at the end there is inserted “or housing credit (within the
meaning of the State Pension Credit Act 2002)”.

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

14 In section 69 of the Child Support, Pensions and Social Security Act 2000
(discretionary financial assistance with housing), in subsection (1)(a), after
30“universal credit” there is inserted “or housing credit (within the meaning of
the State Pension Credit Act 2002)”.

Section 36

SCHEDULE 5 Universal credit and other working-age benefits

General

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

(a) 5jobseeker’s allowance, or

(b) employment and support allowance.

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

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

(b) a work-related requirement within the meaning of the Jobseekers
10Act 1995, or

(c) a work-related requirement within the meaning of Part 1 of the
Welfare Reform Act 2007.

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

(a) section 26 or 27,

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

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

Dual entitlement

2 (1) Regulations may make provision as to the amount payable by way of a
relevant benefit where a person is entitled to that benefit and universal
20credit.

(2) Regulations under sub-paragraph (1) may in particular provide for no
amount to be payable by way of a relevant benefit.

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

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

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

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

(a) provision securing that compliance with a work-related requirement
for a relevant benefit is to be treated as compliance with a work-
30related requirement for universal credit;

(b) provision disapplying any requirement on the Secretary of State to
impose, or a person to comply with, a work-related requirement for
a relevant benefit or universal credit.

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

(a) 35provision for the order in which sanctions are to be applied to
awards of relevant benefit and universal credit;

(b) provision to secure that the application of a sanction to an award of
a relevant benefit does not result in an increase of the amount of an
award of universal credit.

40Movement between working-age benefits

3 Regulations may provide—

(a) in a case where a person ceases to be entitled to universal credit and
becomes entitled to a relevant benefit, for a sanction relating to the
award of universal credit to be applied to the award of the relevant
benefit;

(b) 5in a case where a person ceases to be entitled to a relevant benefit and
becomes entitled to universal credit, for a sanction relating to the
award of the relevant benefit to be applied to the award of universal
credit;

(c) in a case where a person ceases to be entitled to one relevant benefit
10and becomes entitled to the other, for a sanction relating to the award
of the former to apply to the award of the latter.

Hardship payments

4 Regulations under section 28 (hardship payments) may be made in relation
to a person whose award of universal credit is reduced by virtue of
15regulations under paragraph 2(3)(b) or 3(b) as in relation to a person whose
award is reduced under section 26 or 27.

Earnings tapers

5 In section 4 of the Jobseekers Act 1995 (amount payable by way of a
jobseeker’s allowance), in subsection (1)(b)—

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

“(i) deductions in respect of earnings calculated in
the prescribed manner (which may include
multiplying some or all earnings by a
prescribed percentage), and

(ii)”; 25

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

6 (1) Section 2 of the Welfare Reform Act 2007 (amount of contributory
allowance) is amended as follows.

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

“(i) 30deductions in respect of earnings calculated in the
prescribed manner (which may include multiplying
some or all earnings by a prescribed percentage), and

(ii)”.

(3) At the end there is inserted—

“(6) 35In subsection (1)(c)(i) the reference to earnings is to be construed in
accordance with sections 3, 4 and 112 of the Social Security
Contributions and Benefits Act 1992.”

Section 37

SCHEDULE 6 Migration to universal credit

General

1 (1) Regulations may make provision for the purposes of, or in connection with,
5replacing existing benefits with universal credit.

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

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

(b) any other prescribed benefit.

(3) In this Schedule “appointed day” means the day appointed for the coming
10into force of section 1.

Claims before the appointed day

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

(a) provision for a claim for universal credit to be made before the
appointed day for a period beginning on or after that day;

(b) 15provision for a claim for universal credit made before the appointed
day to be treated to any extent as a claim for an existing benefit;

(c) provision for a claim for an existing benefit made before the
appointed day to be treated to any extent as a claim for universal
credit.

(2) 20The provision referred to in paragraph 1(1) includes provision, where a
claim for universal credit is made (or is treated as made) before the
appointed day, for an award on the claim to be made in respect of a period
before the appointed day (including provision as to the conditions of
entitlement for, and amount of, such an award).

25Claims after the appointed day

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

(a) provision permanently or temporarily excluding the making of a
claim for universal credit after the appointed day by—

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

(ii) 30a person who would be entitled to an existing benefit on
making a claim for it;

(b) provision temporarily excluding the making of a claim for universal
credit after the appointed day by any other person;

(c) provision excluding entitlement to universal credit temporarily or
35for a particular period;

(d) provision for a claim for universal credit made after the appointed
day to be treated to any extent as a claim for an existing benefit;

(e) provision for a claim for an existing benefit made after the appointed
day to be treated to any extent as a claim for universal credit.

(2) 40The provision referred to in paragraph 1(1) includes provision, where a
claim for universal credit is made (or is treated as made) after the appointed
day, for an award on the claim to be made in respect of a period before the

appointed day (including provision as to the conditions of entitlement for,
and amount of, such an award).

Awards

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

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

(b) provision for making an award of universal credit, with or without
application, to a person whose award of existing benefit is
terminated.

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

(a) 10provision imposing requirements as to the procedure to be followed,
information to be supplied or assessments to be undergone in
relation to an award by virtue of that sub-paragraph or an
application for such an award;

(b) provision as to the consequences of failure to comply with any such
15requirement;

(c) provision as to the terms on which, and conditions subject to which,
such an award is made, including—

(i) provision temporarily or permanently disapplying, or
otherwise modifying, conditions of entitlement to universal
20credit in relation to the award;

(ii) provision temporarily or permanently disapplying, or
otherwise modifying, any requirement under this Part for a
person to be assessed in respect of capability for work or
work-related activity;

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

(e) provision that fulfilment of any condition relevant to entitlement to
an award of an existing benefit, or relevant to the amount of such an
award, is to be treated as fulfilment of an equivalent condition in
relation to universal credit.

(3) 30Provision under sub-paragraph (2)(d) may secure that where an award of
universal credit is made by virtue of sub-paragraph (1)(b)—

(a) the amount of the award is not less than the amount to which the
person would have been entitled under the terminated award, or is
not less than that amount by more than a prescribed amount;

(b) 35if the person to whom it is made ceases to be entitled to universal
credit for not more than a prescribed period, the gap in entitlement
is disregarded in calculating the amount of any new award of
universal credit.

Work-related requirements and sanctions

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

(a) provision relating to the application of work-related requirements
for relevant benefits;

(b) provision relating to the application of sanctions.

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

(a) 45provision that a claimant commitment for a relevant benefit is to be
treated as a claimant commitment for universal credit;

(b) provision that a work-related requirement for a relevant benefit is
treated as a work-related requirement for universal credit;

(c) provision for anything done which is relevant to compliance with a
work-related requirement for a relevant benefit to be treated as done
5for the purposes of compliance with a work-related requirement for
universal credit;

(d) provision temporarily disapplying any provision of this Part in
relation to work-related requirements for universal credit.

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

(a) 10provision for a sanction relevant to an award of a relevant benefit to
be applied to an award of universal credit;

(b) provision for anything done which is relevant to the application of a
sanction for a relevant benefit to be treated as done for the purposes
of the application of a sanction for universal credit;

(c) 15provision temporarily disapplying any provision of this Part in
relation to the application of sanctions.

(4) In this paragraph—

• “relevant benefit” means—

  (a)

  jobseeker’s allowance,

  (b)

  20employment and support allowance, and

  (c)

  income support;

• “work-related requirement” means—

  (a)

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

  (b)

  25for jobseeker’s allowance, a requirement imposed—

  (i)

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

  (ii)

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

  (iii)

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

  (iv)

  by a direction under section 2F of that Act;

  (c)

  for employment and support allowance, a requirement
  imposed—

  (i)

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

  (ii)

  by a direction under section 15 of that Act,

  (iii)

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

  (iv)

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

  (d)

  for income support, a requirement imposed—

  (i)

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

  (ii)

  by a direction under section 2F of that Act;

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

  (a)

  section 26 or 27 above,

  (b)

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

  (c)

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

  Welfare Reform BillPage 130

  (d)

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

Tax credits

6 In relation to the replacement of working tax credit and child tax credit with
5universal credit, the provision referred to in paragraph 1(1) includes—

(a) provision modifying the application of the Tax Credits Act 2002 (or
of any provision made under it);

(b) provision for the purposes of recovery of overpayments of working
tax credit or child tax credit (including in particular provision for
10treating overpayments of working tax credit or child tax credit as if
they were overpayments of universal credit).

Supplementary

7 Regulations under paragraph 1(1) may secure the result that any gap in
entitlement to an existing benefit (or what would, but for the provisions of
15this Part, be a gap in entitlement to an existing benefit) is to be disregarded
for the purposes of provision under such regulations.

Section 48

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