Welfare Reform Bill

Session 2010 - 12
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Other Bills before Parliament

Welfare Reform Bill

Welfare Reform Bill
Part 1 — Universal credit
Chapter 3 — Supplementary and general
16

Universal credit and other benefits
33
Abolition of benefits
(1)
The following benefits are abolished—
(a)
income-based jobseeker’s allowance under the Jobseekers Act 1995;
(b)
income-related employment and support allowance under Part 1 of the
5
Welfare Reform Act 2007;
(c)
income support under section 124 of the Social Security Contributions
and Benefits Act 1992;
(d)
housing benefit under section 130 of that Act;
(e)
council tax benefit under section 131 of that Act;
10
(f)
child tax credit and working tax credit under the Tax Credits Act 2002.
(2)
In subsection (1)—
(a)
“income-based jobseeker’s allowance” has the same meaning as in the
Jobseekers Act 1995;
(b)
“income-related employment and support allowance” means an
15
employment and support allowance entitlement to which is based on
section 1(2)(b) of the Welfare Reform Act 2007.
(3)
Schedule 3 contains consequential amendments.
34
Universal credit and state pension credit
Schedule 4 provides for a housing element of state pension credit in
20
consequence of the abolition of housing benefit by section 33.
35
Universal credit and working-age benefits
Schedule 5 makes further provision relating to universal credit, jobseeker’s
allowance and employment and support allowance.
36
Migration to universal credit
25
Schedule 6 contains provision about the replacement of benefits by universal
credit.
General
37
Capability for work or work-related activity
(1)
For the purposes of this Part a claimant has limited capability for work if—
30
(a)
the claimant’s capability for work is limited by their physical or mental
condition, and
(b)
the limitation is such that it is not reasonable to require the claimant to
work.
(2)
For the purposes of this Part a claimant has limited capability for work-related
35
activity if—
(a)
the claimant’s capability for work-related activity is limited by their
physical or mental condition, and

Welfare Reform Bill
Part 1 — Universal credit
Chapter 3 — Supplementary and general
17

(b)
the limitation is such that it is not reasonable to require the claimant to
undertake work-related activity.
(3)
The question whether a claimant has limited capability for work or work-
related activity for the purposes of this Part is to be determined in accordance
with regulations.
5
(4)
Regulations under this section must, subject as follows, provide for
determination of that question on the basis of an assessment (or repeated
assessments) of the claimant.
(5)
Regulations under this section may for the purposes of an assessment—
(a)
require a claimant to provide information or evidence (and may require
10
it to be provided in a prescribed manner or form);
(b)
require a claimant to attend and submit to a medical examination at a
place, date and time determined under the regulations.
(6)
Regulations under this section may make provision for a claimant to be treated
as having or not having limited capability for work or work-related activity.
15
(7)
Regulations under subsection (6) may provide for a claimant who fails to
comply with a requirement imposed under subsection (5) without a good
reason to be treated as not having limited capability for work or work-related
activity.
(8)
Regulations under subsection (6) may provide for a claimant to be treated as
20
having limited capability for work until—
(a)
it has been determined whether or not that is the case, or
(b)
the claimant is under any other provision of regulations under
subsection (6) treated as not having it.
(9)
Regulations under this section may provide for determination of the question
25
of whether a claimant has limited capability for work or work-related activity
even where the claimant is for the time being treated under regulations under
subsection (6) as having limited capability for work or work-related activity.
38
Information
Information supplied under Chapter 2 of this Part or section 37 is to be taken
30
for all purposes to be information relating to social security.
39
Couples
(1)
In this Part “couple” means—
(a)
a man and woman who are married to each other and are members of
the same household;
35
(b)
a man and woman who are not married to each other but are living
together as husband and wife;
(c)
two people of the same sex who are civil partners of each other and are
members of the same household;
(d)
two people of the same sex who are not civil partners of each other but
40
are living together as civil partners.
(2)
For the purposes of this section, two people of the same sex are to be treated as
living together as if they were civil partners if, and only if, they would be
treated as living together as husband and wife were they of opposite sexes.

Welfare Reform Bill
Part 1 — Universal credit
Chapter 3 — Supplementary and general
18

(3)
For the purposes of this section regulations may prescribe—
(a)
circumstances in which the fact that two persons are husband and wife
or are civil partners is to be disregarded;
(b)
circumstances in which a man and a woman are to be treated as living
together as husband and wife;
5
(c)
circumstances in which people are to be treated as being or not being
members of the same household.
40
Interpretation of Part 1
In this Part—
“assessment period” has the meaning given by section 7(2);
10
“child” means a person under the age of 16;
“claim” means claim for universal credit;
“claimant” means a single claimant or each of joint claimants;
“couple” has the meaning given by section 39;
“disabled” has such meaning as may be prescribed;
15
“joint claimants” means members of a couple who jointly make a claim or
in relation to whom an award of universal credit is made;
“limited capability for work” and “limited capability for work-related
activity” are to be construed in accordance with section 37(1) and (2);
“prescribed” means specified or provided for in regulations;
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“primary legislation” means an Act, Act of the Scottish Parliament or Act
or Measure of the National Assembly for Wales;
“qualifying young person” has the meaning given in section 10(5);
“regular and substantial caring responsibilities” has such meaning as may
be prescribed;
25
“responsible carer”, in relation to a child, has the meaning given in section
19(6);
“secondary legislation” means an instrument made under primary
legislation”;
“severely disabled” has such meaning as may be prescribed;
30
“single claimant” means a single person who makes a claim for universal
credit or in relation to whom an award of universal credit is made as a
single person;
“single person” is to be construed in accordance with section 1(2)(a);
“work” has such meaning as may be prescribed;
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“work availability requirement” has the meaning given by section 18(1);
“work preparation requirement” has the meaning given by section 16(1);
“work search requirement” has the meaning given by section 17(1);
“work-focused interview requirement” has the meaning given by section
15(1);
40
“work-related activity”, in relation to a person, means activity which
makes it more likely that the person will obtain or remain in work or be
able to do so;
“work-related requirement” has the meaning given by section 13(2).

Welfare Reform Bill
Part 1 — Universal credit
Chapter 3 — Supplementary and general
19

Regulations
41
Pilot schemes
(1)
Any power to make—
(a)
regulations under this Part,
(b)
regulations under the Social Security Administration Act 1992 relating
5
to universal credit, or
(c)
regulations under the Social Security Act 1998 relating to universal
credit,

may be exercised so as to make provision for piloting purposes.
(2)
In subsection (1), “piloting purposes”, in relation to any provision, means the
10
purposes of testing—
(a)
the extent to which the provision is likely to make universal credit
simpler to understand or to administer,
(b)
the extent to which the provision is likely to promote—
(i)
people remaining in work, or
15
(ii)
people obtaining or being able to obtain work (or more work or
better-paid work), or
(c)
the extent to which, and how, the provision is likely to affect the
conduct of claimants or other people in any other way.
(3)
Regulations made by virtue of this section are in the remainder of this section
20
referred to as a “pilot scheme”.
(4)
A pilot scheme may be limited in its application to—
(a)
one or more areas;
(b)
one or more classes of person;
(c)
persons selected—
25
(i)
by reference to prescribed criteria, or
(ii)
on a sampling basis.
(5)
A pilot scheme may not have effect for a period exceeding three years, but—
(a)
the Secretary of State may by order made by statutory instrument
provide that the pilot scheme is to continue to have effect after the time
30
when it would otherwise expire for a period not exceeding twelve
months (and may make more than one such order);
(b)
a pilot scheme may be replaced by a further pilot scheme making the
same or similar provision.
(6)
A pilot scheme may include consequential or transitional provision in relation
35
to its expiry.
42
Regulations: general
(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—
40
(a)
so as to make different provision for different cases or purposes;
(b)
in relation to all or only some of the cases or purposes for which it may
be exercised.

Welfare Reform Bill
Part 1 — Universal credit
Chapter 3 — Supplementary and general
20

(3)
Such a power includes—
(a)
power to make incidental, supplementary, consequential or
transitional provision or savings;
(b)
power to provide for a person to exercise a discretion in dealing with
any matter.
5
(4)
Each power conferred by this Part is without prejudice to the others.
(5)
Where regulations under this Part provide for an amount, the amount may be
zero.
(6)
Where regulations under this Part provide for an amount for the purposes of
an award (or a reduction from an award), the amount may be different in
10
relation to different descriptions of person, and in particular may depend on—
(a)
whether the person is a single person or a member of a couple;
(b)
the age of the person.
(7)
Regulations under section 11(4) or 12(3) which provide for the determination
or calculation of an amount may make different provision for different areas.
15
43
Regulations: procedure
(1)
Regulations made under this Part by the Secretary of State or the Welsh
Ministers are to be made by statutory instrument.
(2)
A statutory instrument containing regulations made by the Secretary of State
under this Part is subject to the negative resolution procedure, subject as
20
follows.
(3)
A statutory instrument containing the first regulations made by the Secretary
of State under any of the following, alone or with other regulations, is subject
to the affirmative resolution procedure—
(a)
section 4(7) (acceptance of claimant commitment);
25
(b)
section 5(1)(a) and (2)(a) (capital limits);
(c)
section 8(3) (income to be deducted in award calculation);
(d)
section 9(2) and (3) (standard allowance);
(e)
section 10(3) and (4) (children and young persons element);
(f)
section 11 (housing costs element);
30
(g)
section 12 (other needs and circumstances element);
(h)
section 18(3) and (5) (work availability requirement);
(i)
section 19(2)(d) (claimants subject to no work-related requirements);
(j)
sections 26 and 27 (sanctions);
(k)
section 28 (hardship payments);
35
(l)
paragraph 4 of Schedule 1 (calculation of capital and income);
(m)
paragraph 1(1) of Schedule 6 (migration), where making provision
under paragraphs 4, 5 and 6 of that Schedule.
(4)
A statutory instrument containing regulations made by the Secretary of State
by virtue of section 41 (pilot schemes), alone or with other regulations, is
40
subject to the affirmative resolution procedure.
(5)
A statutory instrument containing regulations made by the Secretary of State
under this Part is subject to the affirmative resolution procedure if—
(a)
it also contains regulations under another enactment, and

Welfare Reform Bill
Part 2 — Working-age benefits
Chapter 1 — Jobseeker’s allowance
21

(b)
an instrument containing those regulations would apart from this
section be subject to the affirmative resolution procedure.
(6)
For the purposes of subsections (2) to (5)—
(a)
a statutory instrument subject to the “negative resolution procedure” is
subject to annulment in pursuance of a resolution of either House of
5
Parliament;
(b)
a statutory instrument subject to the “affirmative resolution procedure”
may not be made unless a draft of the instrument has been laid before,
and approved by resolution of, each House of Parliament.
(7)
A statutory instrument containing regulations made by the Welsh Ministers
10
under section 32 may not be made unless a draft of the instrument has been laid
before, and approved by resolution of, the National Assembly for Wales.
(8)
Regulations made by the Scottish Ministers under section 32 are subject to—
(a)
the affirmative procedure, if they contain provision amending or
repealing primary legislation, and
15
(b)
the negative procedure, in any other case.
Part 2
Working-age benefits
Chapter 1
Jobseeker’s allowance
20
Claimant responsibilities for interim period
44
Claimant commitment for jobseeker’s allowance
(1)
The Jobseekers Act 1995 is amended as follows.
(2)
In section 1 (the jobseeker’s allowance), in subsection (2)(b) for “entered into a
jobseeker’s agreement which remains in force” there is substituted “accepted a
25
claimant commitment”.
(3)
For section 9 (the jobseeker’s agreement) there is substituted—
“9
Claimant commitment
(1)
For the purposes of this Act a “claimant commitment” is a record of a
claimant’s responsibilities in relation to an award of a jobseeker’s
30
allowance.
(2)
A claimant commitment shall—
(a)
be prepared by an employment officer,
(b)
be in such form as the Secretary of State thinks fit,
(c)
include any prescribed information, and
35
(d)
include any other information an employment officer or the
Secretary of State considers it appropriate to include.
(3)
Information included in a claimant commitment under subsection
(2)(d) may include—

Welfare Reform Bill
Part 2 — Working-age benefits
Chapter 1 — Jobseeker’s allowance
22

(a)
information in respect of the conditions mentioned in section
1(2)(a) and (c);
(b)
details of any requirement imposed on the claimant by virtue of
regulations under section 8 or 17A, or under a jobseeker’s
direction;
5
(c)
details of any consequences of a failure to comply with such a
requirement.
(4)
A claimant shall not be invited to accept a claimant commitment by an
employment officer unless, in the opinion of the employment officer,
the conditions mentioned in section 1(2)(a) and (c) would be satisfied
10
with respect to the claimant if he were to act in accordance with, or be
treated as acting in accordance with, the proposed claimant
commitment.
(5)
The employment officer may, and if asked to do so by the claimant shall
forthwith, refer a proposed claimant commitment to the Secretary of
15
State for him to determine—
(a)
whether, if the claimant were to act in accordance with the
proposed claimant commitment, he would satisfy—
(i)
the condition mentioned in section 1(2)(a), or
(ii)
the condition mentioned in section 1(2)(c), and
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(b)
whether it is reasonable to expect the claimant to have to act in
accordance with the proposed claimant commitment.
(6)
A reference under subsection (5) may only relate to information
included in the proposed claimant commitment under subsection
(3)(a).
25
(7)
On a reference under subsection (5) the Secretary of State—
(a)
shall, so far as practicable, dispose of it in accordance with this
section before the end of the period of 14 days from the date of
the reference;
(b)
may give such directions, with respect to the terms of the
30
proposed claimant commitment, as the Secretary of State
considers appropriate;
(c)
may direct that, if such conditions as he considers appropriate
are satisfied, the proposed claimant commitment is to be treated
(if accepted) as having been accepted by the claimant on such
35
date as may be specified in the direction.
(8)
Regulations may provide—
(a)
for such matters as may be prescribed to be taken into account
by the Secretary of State in giving a direction under subsection
(7)(c), and
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(b)
for such persons as may be prescribed to be notified of—
(i)
any determination of the Secretary of State under this
section;
(ii)
any direction given by the Secretary of State under this
section.
45
(9)
Regulations may provide that, in prescribed circumstances, a claimant
is to be treated as having satisfied the condition mentioned in section
1(2)(b).