Session 2010 - 12
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Welfare Reform Bill


Welfare Reform Bill
Part 7 — Final

107

 

is inserted—

“2A     

Restriction on section 2 arrangements: sex industry

(1)   

Arrangements made by the Secretary of State under section 2 may not

include arrangements in respect of employment for sexual purposes.

(2)   

For the purposes of this section employment is for sexual purposes if—

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(a)   

it involves the employee engaging in an activity, and

(b)   

the employee’s activity, or the way in which it is performed,

may reasonably be assumed to be intended solely or principally

to stimulate one or more other persons sexually (by whatever

means).

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(3)   

The Secretary of State may by order specify exceptions to subsection (1).

(4)   

A statutory instrument containing an order under subsection (3) is

subject to annulment in pursuance of a resolution of either House of

Parliament.”

Social Mobility and Child Poverty Commission

15

140     

Social Mobility and Child Poverty Commission

Schedule 13 amends the Child Poverty Act 2010 for the purpose of establishing

the Social Mobility and Child Poverty Commission.

Part 7

Final

20

141     

Repeals

Schedule 14 contains consequential repeals.

142     

Financial provision

There shall be paid out of money provided by Parliament—

(a)   

sums paid by the Secretary of State by way of universal credit or

25

personal independence payment;

(b)   

any other expenditure incurred in consequence of this Act by a Minister

of the Crown or the Commissioners for Her Majesty’s Revenue and

Customs;

(c)   

any increase attributable to this Act in the sums payable under any

30

other Act out of money so provided.

143     

Extent

(1)   

This Act extends to England and Wales and Scotland only, subject as follows.

(2)   

The following provisions extend to England and Wales, Scotland and Northern

Ireland—

35

(a)   

section 32 (power to make consequential and supplementary provision:

universal credit);

(b)   

section 33 (abolition of benefits);

 
 

Welfare Reform Bill
Part 7 — Final

108

 

(c)   

section 75 (calculation of working tax credit);

(d)   

section 90 (power to make consequential and supplementary provision:

personal independence payment);

(e)   

section 124(1) to (13) (tax credits: transfer of functions etc);

(f)   

section 125(1) to (9) (information-sharing between Secretary of State

5

and HMRC);

(g)   

this Part, excluding Schedule 14 (repeals).

(3)   

Sections 126 and 127 extend to England and Wales only.

(4)   

Any amendment or repeal made by this Act has the same extent as the

enactment to which it relates.

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144     

Commencement

(1)   

The following provisions of this Act come into force on the day on which it is

passed—

(a)   

section 75 (calculation of working tax credit);

(b)   

section 101 and Schedule 12 (supersession of decisions of former

15

appellate bodies) (but see section 101(2));

(c)   

section 106 (application of Limitation Act 1980) (but see section 106(4));

(d)   

section 107 (recovery of fines etc by deductions from employment and

support allowance) (but see section 107(3));

(e)   

section 124 (tax credits: transfer of functions etc);

20

(f)   

this Part, excluding Schedule 14 (repeals).

(2)   

The following provisions of this Act come into force at the end of the period of

two months beginning with the day on which it is passed—

(a)   

section 50 (dual entitlement to employment and support allowance and

jobseeker’s allowance);

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(b)   

section 59 and Part 6 of Schedule 14 (claimants dependent on drugs etc);

(c)   

sections 70 and 71 (social fund: purposes of discretionary payments and

determination of amount or value of budgeting loan);

(d)   

section 105 (recovery of child benefit and guardian’s allowance);

(e)   

section 109 (time limit for legal proceedings);

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(f)   

section 125 and Part 13 of Schedule 14 (information-sharing between

Secretary of State and HMRC);

(g)   

section 132 (information-sharing for social security or employment

purposes etc);

(h)   

section 133 (functions of registration service);

35

(i)   

section 138 (exclusion of child support maintenance from individual

voluntary arrangements);

(j)   

section 140 and Schedule 13 (Social Mobility and Child Poverty

Commission);

(k)   

Part 2 of Schedule 14 (entitlement to jobseeker’s allowance without

40

seeking employment).

(3)   

The remaining provisions of this Act come into force on such day as the

Secretary of State may by order made by statutory instrument appoint.

(4)   

An order under subsection (3) may—

(a)   

appoint different days for different purposes;

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(b)   

appoint different days for different areas in relation to—

 
 

Welfare Reform Bill
Part 7 — Final

109

 

(i)   

any provision of Part 1 (universal credit) or of Part 1 of Schedule

14;

(ii)   

section 60 or 61 (entitlement to work: jobseeker’s allowance and

employment and support allowance);

(iii)   

section 100 (consideration of revision before appeal);

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(c)   

make such transitory or transitional provision, or savings, as the

Secretary of State considers necessary or expedient.

145     

Short title

This Act may be cited as the Welfare Reform Act 2011.

 
 

Welfare Reform Bill
Schedule 1 — Universal credit: supplementary regulation-making powers

110

 

Schedules

Schedule 1

Section 30

 

Universal credit: supplementary regulation-making powers

Entitlement of joint claimants

1          

Regulations may provide for circumstances in which joint claimants may be

5

entitled to universal credit without each of them meeting all the basic

conditions referred to in section 4.

Linking periods

2          

Regulations may provide for periods of entitlement to universal credit

which are separated by no more than a prescribed number of days to be

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treated as a single period.

Couples

3     (1)  

Regulations may provide—

(a)   

for a claim made by members of a couple jointly to be treated as a

claim made by one member of the couple as a single person (or as

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claims made by both members as single persons);

(b)   

for claims made by members of a couple as single persons to be

treated as a claim made jointly by the couple.

      (2)  

Regulations may provide—

(a)   

where an award is made to joint claimants who cease to be entitled

20

to universal credit as such by ceasing to be a couple, for the making

of an award (without a claim) to either or each one of them—

(i)   

as a single person, or

(ii)   

jointly with another person;

(b)   

where an award is made to a single claimant who ceases to be

25

entitled to universal credit as such by becoming a member of a

couple, for the making of an award (without a claim) to the members

of the couple jointly;

(c)   

for the procedure to be followed, and information or evidence to be

supplied, in relation to the making of an award under this

30

paragraph.

Calculation of capital and income

4     (1)  

Regulations may for any purpose of this Part provide for the calculation or

estimation of—

(a)   

a person’s capital,

35

 

 

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Schedule 1 — Universal credit: supplementary regulation-making powers

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(b)   

a person’s earned and unearned income, and

(c)   

a person’s earned and unearned income in respect of an assessment

period.

      (2)  

Regulations under sub-paragraph (1)(c) may include provision for the

calculation to be made by reference to an average over a period, which need

5

not include the assessment period concerned.

      (3)  

Regulations under sub-paragraph (1) may—

(a)   

specify circumstances in which a person is to be treated as having or

not having capital or earned or unearned income;

(b)   

specify circumstances in which income is to be treated as capital or

10

capital as earned income or unearned income;

(c)   

specify circumstances in which unearned income is to be treated as

earned, or earned income as unearned;

(d)   

provide that a person’s capital is to be treated as yielding income at

a prescribed rate;

15

(e)   

provide that the capital or income of one member of a couple is to be

treated as that of the other member.

      (4)  

Regulations under sub-paragraph (3)(a) may in particular provide that

persons of a prescribed description are to be treated as having a prescribed

minimum level of earned income.

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      (5)  

In the case of joint claimants the income and capital of the joint claimants

includes (subject to sub-paragraph (6)) the separate income and capital of

each of them.

      (6)  

Regulations may specify circumstances in which capital and income of

either of joint claimants is to be disregarded in calculating their joint capital

25

and income.

Responsibility for children etc

5     (1)  

Regulations may for any purpose of this Part specify circumstances in which

a person is or is not responsible for a child or qualifying young person.

      (2)  

Regulations may for any purpose of this Part make provision about

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nominations of the responsible carer for a child (see section 19(6)(b)(ii)).

Vouchers

6     (1)  

This paragraph applies in relation to an award of universal credit where the

calculation of the amount of the award includes, by virtue of any provision

of this Part, an amount in respect of particular costs which a claimant may

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incur.

      (2)  

Regulations may provide for liability to pay all or part of the award to be

discharged by means of provision of a voucher.

      (3)  

But the amount paid by means of a voucher may not in any case exceed the

total of the amounts referred to in sub-paragraph (1) which are included in

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the calculation of the amount of the award.

      (4)  

For these purposes a voucher is a means other than cash by which a claimant

may to any extent meet costs referred to in sub-paragraph (1) of a particular

description.

 
 

Welfare Reform Bill
Schedule 2 — Universal credit: amendments

112

 

      (5)  

A voucher may for these purposes—

(a)   

be limited as regards the person or persons who will accept it;

(b)   

be valid only for a limited time.

Good reason

7          

Regulations may for any purpose of this Part provide for—

5

(a)   

circumstances in which a person is to be treated as having or not

having a good reason for an act or omission;

(b)   

matters which are or are not to be taken into account in determining

whether a person has a good reason for an act or omission.

Schedule 2

10

Section 31

 

Universal credit: amendments

Children Act 1989 (c. 41)

1          

In the Children Act 1989, in the following provisions, after “in receipt” there

is inserted “of universal credit (except in such circumstances as may be

prescribed),”—

15

(a)   

section 17(9) (provision of services to children in need, their families

and others);

(b)   

section 17A(5)(b) (direct payments);

(c)   

section 29(3) and (3A) (recoupment of cost of providing services etc);

(d)   

paragraph 21(4) of Schedule 2 (local authority support for children

20

and families).

Child Support Act 1991 (c. 48)

2          

In the Child Support Act 1991, in paragraph 5 of Schedule 1 (maintenance

calculations), as it has effect apart from section 1 of the Child Support,

Pensions and Social Security Act 2000, in sub-paragraph (4) after “Where”

25

there is inserted “universal credit (in such circumstances as may be

prescribed),”.

Social Security Administration Act 1992 (c. 5)

3          

The Social Security Administration Act 1992 is amended as follows.

4          

In section 1 (entitlement to benefit dependent on claim), in subsection (4),

30

before paragraph (a) there is inserted—

“(za)   

universal credit;”.

5          

In section 5 (regulations about claims and payments)—

(a)   

in subsection (2), before paragraph (a) there is inserted—

“(za)   

universal credit;”;

35

(b)   

in subsection (6), after “in relation to” there is inserted “universal

credit or”.

6     (1)  

Section 15A (payment out of benefit of sums in respect of mortgage interest)

is amended as follows.

 
 

Welfare Reform Bill
Schedule 2 — Universal credit: amendments

113

 

      (2)  

In subsection (1)—

(a)   

in paragraph (a), after “entitled, to” there is inserted “universal

credit,”;

(b)   

in paragraph (b), after “determining” there is inserted “the maximum

amount for the purposes of universal credit or”;

5

(c)   

in the words after paragraph (b), after “whose” there is inserted

“maximum amount for the purposes of universal credit or”.

      (3)  

In subsection (4)—

(a)   

in the definition of “qualifying associate”—

(i)   

before “falls” there is inserted “or universal credit”;

10

(ii)   

before “as responsible” there is inserted “or Part 1 of the

Welfare Reform Act 2011”;

(b)   

in the definition of “relevant benefits”, before paragraph (a) there is

inserted—

“(za)   

universal credit;”.

15

7          

In section 74 (income support and other payments), in subsection (2)(b), after

“by way of” there is inserted “universal credit or”.

8          

In section 74A (payments of benefit where maintenance payments collected

by Secretary of State), in subsection (7), after “applies are” there is inserted

“universal credit,”.

20

9          

In section 78 (recovery of social fund awards), in subsection (6)(d), after

“receiving” there is inserted “universal credit,”.

10         

In section 105 (failure to maintain - general), in subsection (1)(b), after

“neglect” there is inserted “universal credit,”.

11         

In section 106 (recovery of expenditure on benefit from person liable for

25

maintenance), in subsections (1), (2), (3) and (4)(a) and (b), after “income

support” there is inserted “or universal credit”.

12         

In section 108 (reduction of expenditure on income support etc), in

subsection (1)(a), after “income support” there is inserted “or universal

credit”.

30

13         

In section 109 (diversion of arrested earnings - Scotland), in subsection (1),

after “in receipt of”, in both places, there is inserted “universal credit,”.

14         

In section 121DA (interpretation of Part 6), in subsection (1), after paragraph

(hi) there is inserted—

“(hj)   

Part 1 of the Welfare Reform Act 2011;”.

35

15         

In section 122B (supply of other government information for fraud

prevention and verification), in subsection (3)(b) after “Welfare Reform Act

2007” there is inserted “, Part 1 of the Welfare Reform Act 2011”.

16    (1)  

Section 122F (supply by rent officers of information relating to housing

benefit) is amended as follows.

40

      (2)  

In the heading, for “information relating to housing benefit” there is

substituted “benefit information”.

      (3)  

In subsection (1), for “housing benefit information” there is substituted

“benefit information”.

 
 

 
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Revised 29 November 2011