Welfare Reform Bill

Session 2010 - 12
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Other Bills before Parliament

Welfare Reform Bill

Welfare Reform Bill
Schedule 4 — Housing credit element of state pension credit
Part 2 — Amendments to other Acts
128

Part 2
Amendments to other Acts
Social Security Administration Act 1992 (c. 5)
9
The Social Security Administration Act 1992 is amended as follows.
10
In section 5 (regulations about claims and payments) in subsection (6),
5
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)
in paragraph (b), for “the appropriate minimum guarantee
10
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is repealed.
15
12    (1)
Section 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—
20
“(5)
In this section “housing credit” has the same meaning as in the State
Pension Credit Act 2002”.
Housing Act 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”.
25
      (3)
In 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)
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)”.

Welfare Reform Bill
Schedule 5 — Universal credit and other working-age benefits
129

Schedule 5
Section 35

Universal credit and other working-age benefits
General
1     (1)
In this Schedule “relevant benefit” means—
(a)
jobseeker’s allowance, or
5
(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
Act 1995, or
10
(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)
section 6J or 6K of the Jobseekers Act 1995, or
15
(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
credit.
20
      (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)
make provision as to the application of work-related requirements;
25
(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-
related requirement for universal credit;
30
(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)
provision for the order in which sanctions are to be applied to
35
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.
Movement between working-age benefits
40
3
Regulations may provide—

Welfare Reform Bill
Schedule 5 — Universal credit and other working-age benefits
130

(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)
in a case where a person ceases to be entitled to a relevant benefit and
5
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
and becomes entitled to the other, for a sanction relating to the award
10
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
regulations under paragraph 2(3)(b) or 3(b) as in relation to a person whose
15
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)
after “making” there is inserted—
20
“(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)
deductions in respect of earnings calculated in the
30
prescribed manner (which may include multiplying
some or all earnings by a prescribed percentage), and
(ii)
”.
      (3)
At the end there is inserted—
“(6)
In subsection (1)(c)(i) the reference to earnings is to be construed in
35
accordance with sections 3, 4 and 112 of the Social Security
Contributions and Benefits Act 1992.”

Welfare Reform Bill
Schedule 6 — Migration to universal credit
131

Schedule 6
Section 36

Migration to universal credit
General
1     (1)
Regulations may make provision for the purposes of, or in connection with,
replacing existing benefits with universal credit.
5
      (2)
In this Schedule “existing benefit” means—
(a)
a benefit abolished under section 33(1);
(b)
any other prescribed benefit.
      (3)
In this Schedule “appointed day” means the day appointed for the coming
into force of section 1.
10
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)
provision for a claim for universal credit made before the appointed
15
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)
The provision referred to in paragraph 1(1) includes provision, where a
20
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).
Claims after the appointed day
25
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)
a person who would be entitled to an existing benefit on
30
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
for a particular period;
35
(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)
The provision referred to in paragraph 1(1) includes provision, where a
40
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

Welfare Reform Bill
Schedule 6 — Migration to universal credit
132

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)
provision for terminating an award of an existing benefit;
5
(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)
provision imposing requirements as to the procedure to be followed,
10
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
requirement;
15
(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
credit in relation to the award;
20
(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)
provision as to the amount of such an award;
25
(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)
Provision under sub-paragraph (2)(d) may secure that where an award of
30
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)
if the person to whom it is made ceases to be entitled to universal
35
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)
The provision referred to in paragraph 1(1) includes—
40
(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)
provision that a claimant commitment for a relevant benefit is to be
45
treated as a claimant commitment for universal credit;

Welfare Reform Bill
Schedule 6 — Migration to universal credit
133

(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
for the purposes of compliance with a work-related requirement for
5
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)
provision for a sanction relevant to an award of a relevant benefit to
10
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)
provision temporarily disapplying any provision of this Part in
15
relation to the application of sanctions.
      (4)
In this paragraph—
“relevant benefit” means—
(a)
jobseeker’s allowance,
(b)
employment and support allowance, and
20
(c)
income support;
“work-related requirement” means—
(a)
for universal credit, a work-related requirement within the
meaning of this Part;
(b)
for jobseeker’s allowance, a requirement imposed—
25
(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)
by virtue of regulations under section 2A, 2AA or 2D
30
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)
by virtue of regulations under section 8, 9, 11, 12 or 13
35
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)
by a direction under section 2F of that Act;
40
(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;
“sanction” means a reduction of benefit under—
45
(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 Bill
Schedule 7 — Jobseeker’s allowance in interim period: consequential amendments
134

(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
universal credit, the provision referred to in paragraph 1(1) includes—
5
(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
treating overpayments of working tax credit or child tax credit as if
10
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
this Part, be a gap in entitlement to an existing benefit) is to be disregarded
15
for the purposes of provision under such regulations.
Schedule 7
Section 48

Jobseeker’s allowance in interim period: consequential amendments
Jobseekers Act 1995 (c. 18)
1
The Jobseekers Act 1995 is amended as follows.
20
2     (1)
Section 8 (attendance etc) is amended as follows.
      (2)
In subsection (1A)(a) (as originally enacted), for “the Secretary of State” there
is substituted “an employment officer”.
      (3)
In subsection (2), for paragraphs (a) to (c) there is substituted “provide for
entitlement to a jobseeker’s allowance to cease at such time as may be
25
determined in accordance with any such regulations if, when a person fails
to comply with such regulations, that person (or, if that person is a member
of a joint-claim couple, either member of the couple) does not make
prescribed contact with an employment officer within a prescribed period of
the failure.”
30
3
In section 16(3)(b) and 17(4) (in both places) for “good cause” there is
substituted “a good reason”.
4
In section 17A (employment schemes), in subsection (5)(c) for “jobseeker’s
agreement to which a person is a party” there is substituted “claimant
commitment accepted by a person”.
35
5
Section 20 (exemptions from section 19) is amended as follows—
(a)
in the heading, after “19” there is inserted “and 19A”;
(b)
in subsection (1), for “prevent payment” there is substituted
“authorise reduction”;