Welfare Reform Bill

Session 2010 - 12
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Other Bills before Parliament

Welfare Reform Bill

Welfare Reform Bill
Schedule 2 — Universal credit: amendments
121

(c)
the benefit were payable only if the circumstances are
otherwise such as may be prescribed;
(d)
any amount of the benefit payable in prescribed
circumstances were recoverable by the Secretary of State.”
      (4)
In subsection (7), after paragraph (c) there is inserted—
5
“(d)
any amount of the allowance payable in prescribed
circumstances were recoverable by the Secretary of State.”
59    (1)
Section 7 (loss of benefit for second or subsequent conviction of benefit
offence) is amended as follows.
      (2)
In subsection (2), for “(3)” there is substituted “(2A)”.
10
      (3)
After subsection (2) there is inserted—
“(2A)
The Secretary of State may by regulations provide that, where the
sanctionable benefit is universal credit, the benefit shall be payable,
during the whole or a part of any period comprised in the
disqualification period, as if one or more of the following applied—
15
(a)
the amount payable were reduced in such manner as may be
prescribed;
(b)
the benefit were payable only if there is compliance by the
offender with such obligations with respect to the provision
of information as may be imposed by the regulations;
20
(c)
the benefit were payable only if the circumstances are
otherwise such as may be prescribed;
(d)
any amount of the benefit payable in prescribed
circumstances were recoverable by the Secretary of State.”
      (4)
In subsection (4), after paragraph (c) there is inserted—
25
“(d)
any amount of the allowance payable in prescribed
circumstances were recoverable by the Secretary of State.”
60    (1)
Section 8 (effect of offence on joint-claim jobseeker’s allowance) is amended
as follows.
      (2)
In subsection (3)—
30
(a)
for “but” at the end of paragraph (a) there is substituted “and”;
(b)
after paragraph (a) there is inserted—
“(aa)
shall be payable in the couple’s case as if any amount
of the allowance payable in prescribed circumstances
were recoverable by the Secretary of State; but”.
35
      (3)
In subsection (4), after paragraph (c) there is inserted—
“(d)
any amount of the allowance payable in prescribed
circumstances were recoverable by the Secretary of State.”
      (4)
In the opening words to subsections (7) and (8) the words “by virtue of any
regulations” are repealed.
40
61    (1)
Section 9 (effect of offence on benefits for members of offender’s family) is
amended as follows.
      (2)
In subsection (1), before paragraph (a) there is inserted—
“(za)
universal credit;”.

Welfare Reform Bill
Schedule 2 — Universal credit: amendments
122

      (3)
In subsection (2), for “or” at the end of paragraph (b) there is substituted
“and”.
      (4)
After subsection (2) there is inserted—
“(2A)
In relation to cases in which the benefit is universal credit, the
provision that may be made by virtue of subsection (2) is provision
5
that, in the case of the offender’s family member, any universal credit
shall be payable, during the whole or a part of any period comprised
in the relevant period, as if one or more of the following applied—
(a)
the amount payable were reduced in such manner as may be
prescribed;
10
(b)
the benefit were payable only if there is compliance by the
offender or the offender’s family member, or both of them,
with such obligations with respect to the provision of
information as may be imposed by the regulations;
(c)
the benefit were payable only if the circumstances are
15
otherwise such as may be prescribed;
(d)
any amount of the benefit payable in prescribed
circumstances were recoverable by the Secretary of State.”
      (5)
In subsection (4), after paragraph (c) there is inserted—
“(d)
any amount of the allowance payable in prescribed
20
circumstances were recoverable by the Secretary of State.”
62
In section 10(3) (power to supplement and mitigate loss of benefit
provisions) after paragraph (bc) there is inserted—
“(bd)
any benefit under Part 1 of the Welfare Reform Act 2011
(universal credit) or under any provision having effect in
25
Northern Ireland corresponding to that Part;”.
63    (1)
In section 11 (loss of benefit regulations), subsection (3) is amended as
follows.
      (2)
In paragraph (c)—
(a)
for “6B(7)” there is substituted “6B(5A), (7)”;
30
(b)
for “7(4)” there is substituted “7(2A), (4)”;
(c)
for “9(4)” there is substituted “9(2A), (4)”.
      (3)
In paragraph (d) at the end there is inserted “or (aa)”.
State Pension Credit Act 2002 (c. 16)
64
In section 4 of the State Pension Credit Act 2002 (exclusions), after subsection
35
(1) there is inserted—
“(1A)
A claimant is not entitled to state pension credit if he is a member of
a couple the other member of which has not attained the qualifying
age.”
Welfare Reform Act 2007 (c. 5)
40
65
In Schedule 1 to the Welfare Reform Act 2007 (employment and support
allowance: additional conditions), in paragraph 1(5), before paragraph (a)
there is inserted—
“(za)
universal credit,”.

Welfare Reform Bill
Schedule 3 — Abolition of benefits: consequential amendments
123

Schedule 3
Section 33

Abolition of benefits: consequential amendments
Social Security Contributions and Benefits Act 1992 (c. 4)
1
The Social Security Contributions and Benefits Act 1992 is amended as
follows.
5
2
In section 22 (earnings factors), in subsections (2)(a) and (5), for “a
contributory” there is substituted “an”.
3
In section 150 (interpretation of Part 10), in subsection (2), in the definition
of “qualifying employment and support allowance”, for “a contributory
allowance” there is substituted “an employment and support allowance”.
10
Social Security Administration Act 1992 (c. 5)
4
The Social Security Administration Act 1992 is amended as follows.
5
In section 7 (relationship between benefits), in subsection (3), for
“subsections (1) and (2)” there is substituted “subsection (1)”.
6
In section 73 (overlapping benefits), in subsections (1) and (4)(c), for “a
15
contributory” there is substituted “an”.
7
In section 159B (effect of alterations affecting state pension credit), for “a
contributory”, wherever occurring, there is substituted “an”.
8
In section 159D (as inserted by Schedule 2 to this Act) (effect of alterations
affecting universal credit), for “a contributory”, wherever occurring, there is
20
substituted “an”.
Immigration and Asylum Act 1999 (c. 33)
9
In the Immigration and Asylum Act 1999, in section 115 (exclusion from
benefits of persons subject to immigration control)—
(a)
in subsection (1), after paragraph (ha) there is inserted “or”;
25
(b)
in subsection (2)(b) for “(a) to (j)” substitute “(a) to (i)”.
Child Support, Pensions and Social Security Act 2000 (c. 19)
10
The Child Support, Pensions and Social Security Act 2000 is amended as
follows.
11    (1)
Section 69 (discretionary financial assistance with housing) is amended as
30
follows.
      (2)
In subsection (1)—
(a)
for “relevant authorities” there is substituted “local authorities”;
(b)
in paragraph (a), the words from “housing benefit” to “both,” are
repealed.
35
      (3)
In subsection (2)—
(a)
in paragraph (b), for “relevant authority” there is substituted “local
authority”;

Welfare Reform Bill
Schedule 3 — Abolition of benefits: consequential amendments
124

(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)
In subsection (5), for “relevant authorities” there is substituted “local
5
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
Social Security Administration Act 1992.”
10
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)
The amount of a grant under this section shall be determined in
15
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—
““local authority” has the same meaning as in section
20
69;”;
(b)
the definition of “subsidy” is repealed.
13
After section 70 there is inserted—
“70A
Payment of grant
(1)
A grant under section 70 shall be made by the Secretary of State in
25
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)
The order may provide that if a local authority has not complied with
30
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)
Where a grant under section 70 has been paid to a local authority and
35
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,

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

Welfare Reform Bill
Schedule 3 — Abolition of benefits: consequential amendments
125

(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)
Section 70(5) to (7) applies to orders under this section.”
5
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)
15
The Social Security Fraud Act 2001 is amended as follows.
10
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”
15
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)
19
The Commissioners for Revenue and Customs Act 2005 is amended as
follows.
20
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)
25
22
The 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
30
“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”.
35
      (3)
In subsection (3), for “contributory” there is substituted “employment and
support”.

Welfare Reform Bill
Schedule 4 — Housing credit element of state pension credit
Part 1 — Amendments to State Pension Credit Act 2002
126

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)
section 18(4);
5
(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).
Corporation Tax Act 2009 (c. 4)
10
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
15
company’s PAYE and NICs liabilities), in subsection (5) after “sick pay”
there is inserted “or”.
Schedule 4
Section 34

Housing credit element of state pension credit
Part 1
20
Amendments to State Pension Credit Act 2002
State Pension Credit Act 2002 (c. 16)
1
The State Pension Credit Act 2002 is amended as follows.
2
In section 1 (entitlement), in subsection (2)(c), at the end there is inserted “or
(iii)
the conditions in section 3A(1) and (2) (housing
25
credit).”
3
In that section, in subsection (3)—
(a)
after paragraph (b) there is inserted “or
(c)
to a housing credit, calculated in accordance with
section 3A, if he satisfies the conditions in subsections
30
(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
After section 3 there is inserted—
“3A
Housing credit
35
(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.

Welfare Reform Bill
Schedule 4 — Housing credit element of state pension credit
Part 1 — Amendments to State Pension Credit Act 2002
127

(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)
Where the claimant is entitled to a housing credit, the amount of the
5
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)
the accommodation must be residential accommodation;
10
(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)
the meaning of “payments in respect of accommodation” for
15
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)
circumstances in which a claimant is to be treated as
20
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
accommodation is to be treated as included in the
25
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
the end there is inserted—
30
“(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
credit” there is inserted “or housing credit”.
35
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
In Schedule 2 (consequential amendments etc), paragraph 9(5)(a) is
40
repealed.