Welfare Reform Bill (HL Bill 114)

The Secretary of State may require a claimant to report to the Secretary
of State any specified changes in their circumstances which are relevant
to—

(a) the imposition of work-related requirements on the claimant;

(b) 5the claimant’s compliance with a work-related requirement.

6H Imposition of work-related and connected requirements:
supplementary

(1) Regulations may make provision—

(a) where the Secretary of State may impose a requirement under
10the preceding provisions of this Act, as to when the requirement
must or must not be imposed;

(b) where the Secretary of State may specify any action to be taken
in relation to a requirement under the preceding provisions of
this Act, as to what action must or must not be specified;

(c) 15where the Secretary of State may specify any other matter in
relation to a such requirement, as to what must or must not be
specified in respect of that matter.

(2) Where the Secretary of State may impose a work-focused interview
requirement, or specify a particular action under section 6C(1) or
206D(1)(b), the Secretary of State must have regard to such matters as may
be prescribed.

(3) Where the Secretary of State may impose a requirement under the
preceding provisions of this Act, or specify any action to be taken in
relation to such a requirement, the Secretary of State may revoke or
25change what has been imposed or specified.

(4) Notification of a requirement imposed under the preceding provisions
of this Act (or any change to or revocation of such a requirement) is, if
not included in the claimant commitment, to be in such manner as the
Secretary of State may determine.

(5) 30Regulations must make provision to secure that, in prescribed
circumstances, where a claimant has recently been a victim of domestic
violence—

(a) a requirement imposed on the claimant under the preceding
provisions of this Act ceases to have effect for a period of 13
35weeks, and

(b) the Secretary of State may not impose any other requirement on
the claimant during that period.

(6) For the purposes of subsection (5)—

(a) “domestic violence” has such meaning as may be prescribed;

(b) 40“victim of domestic violence” means a person on or against
whom domestic violence is inflicted or threatened (and
regulations under subsection (5) may prescribe circumstances
in which a person is to be treated as being or not being a victim
of domestic violence);

(c) 45a person has recently been a victim of domestic violence if a
prescribed period has not expired since the violence was
inflicted or threatened.

6I Compliance with work-related and connected requirements

Regulations may make provision as to circumstances in which a
50claimant is to be treated as having—

(a) complied with or not complied with any requirement imposed
under the preceding provisions of this Act or any aspect of such
a requirement, or

(b) taken or not taken any particular action specified by the
55Secretary of State in relation to such a requirement.

6J Higher-level sanctions

(1) The amount of an award of jobseeker’s allowance is to be reduced in
accordance with this section in the event of a failure by a claimant
which is sanctionable under this section.

(2) 60It is a failure sanctionable under this section if a claimant—

(a) fails for no good reason to comply with a requirement imposed
by the Secretary of State under a work preparation requirement
to undertake a work placement of a prescribed description;

(b) fails for no good reason to comply with a requirement imposed
65by the Secretary of State under a work search requirement to
apply for a particular vacancy for paid work;

(c) fails for no good reason to comply with a work availability
requirement by not taking up an offer of paid work;

(d) by reason of misconduct, or voluntarily and for no good reason,
70ceases paid work or loses pay.

(3) It is a failure sanctionable under this section if, at any time before
making the claim by reference to which the award is made, the
claimant—

(a) for no good reason failed to take up an offer of paid work, or

(b) 75by reason of misconduct, or voluntarily and for no good reason,
ceased paid work or lost pay.

(4) For the purposes of subsections (2) and (3) regulations may provide—

(a) for circumstances in which ceasing to work or losing pay is to
be treated as occurring or not occurring by reason of
80misconduct or voluntarily;

(b) for loss of pay below a prescribed level to be disregarded.

(5) Regulations are to specify—

(a) the amount of a reduction under this section;

(b) the period for which such a reduction has effect, not exceeding
85three years in relation to any failure sanctionable under this
section.

(6) Regulations under subsection (5)(b) may in particular provide for the
period of a reduction to depend on either or both of the following—

(a) the number of failures by the claimant sanctionable under this
90section;

(b) the period between such failures.

(7) Regulations may provide—

(a) for cases in which no reduction is to be made under this section;

(b) for a reduction under this section made in relation to an award
that is terminated to be applied to any new award made within
a prescribed period of the termination;

(c) for the termination or suspension of a reduction under this
5section.

6K Other sanctions

(1) The amount of an award of a jobseeker’s allowance is to be reduced in
accordance with this section in the event of a failure by a claimant
which is sanctionable under this section.

(2) 10It is a failure sanctionable under this section if a claimant—

(a) fails for no good reason to comply with a work-related
requirement;

(b) fails for no good reason to comply with a requirement under
section 6G.

(3) 15But a failure by a claimant is not sanctionable under this section if it is
also a failure sanctionable under section 6J.

(4) Regulations must specify—

(a) the amount of a reduction under this section;

(b) the period for which such a reduction has effect.

(5) 20Regulations under subsection (4)(b) may provide that a reduction
under this section in relation to any failure is to have effect for—

(a) a period continuing until the claimant meets a compliance
condition specified by the Secretary of State,

(b) a fixed period not exceeding 26 weeks which is—

(i) 25specified in the regulations, or

(ii) determined in any case by the Secretary of State, or

(c) a combination of both.

(6) In subsection (5)(a) “compliance condition” means—

(a) a condition that the failure ceases, or

(b) 30a condition relating to future compliance with a work-related
requirement or a requirement under section 6G.

(7) A compliance condition specified under subsection (5)(a) may be—

(a) revoked or varied by the Secretary of State;

(b) notified to the claimant in such manner as the Secretary of State
35may determine.

(8) A period fixed under subsection (5)(b) may in particular depend on
either or both the following—

(a) the number of failures by the claimant sanctionable under this
section;

(b) 40the period between such failures.

(9) Regulations may provide—

(a) for cases in which no reduction is to be made under this section;

(b) for a reduction under this section made in relation to an award
that is terminated to be applied to any new award made within
45a prescribed period of the termination;

(c) for the termination or suspension of a reduction under this
section.

6L Delegation and contracting out

(1) The functions of the Secretary of State under sections 6 to 6I may be
5exercised by, or by the employees of, such person as the Secretary of
State may authorise for the purpose (an “authorised person”).

(2) An authorisation given by virtue of this section may authorise the
exercise of a function—

(a) wholly or to a limited extent;

(b) 10generally or in particular cases or areas;

(c) unconditionally or subject to conditions.

(3)
An authorisation under this section—

(a) may specify its duration;

(b) may be varied or revoked at any time by the Secretary of State;

(c) 15does not prevent the Secretary of State or another person from
exercising the function to which the authorisation relates.

(4)
Anything done or omitted to be done by or in relation to an authorised
person (or an employee of that person) in, or in connection with, the
exercise or purported exercise of the function concerned is to be treated
20for all purposes as done or omitted to be done by or in relation to the
Secretary of State or (as the case may be) an officer of the Secretary of
State.

(5) Subsection (4) does not apply—

(a) for the purposes of so much of any contract made between the
25authorised person and the Secretary of State as relates to the
exercise of the function, or

(b) for the purposes of any criminal proceedings brought in respect
of anything done or omitted to be done by the authorised
person (or an employee of that person).

(6) 30Where—

(a) the authorisation of an authorised person is revoked, and

(b) at the time of the revocation so much of any contract made
between the authorised person and the Secretary of State as
relates to the exercise of the function is subsisting,

35the authorised person is entitled to treat the contract as repudiated by
the Secretary of State (and not as frustrated by reason of the
revocation).”

(4) In section 29 (pilot schemes), in subsection (8), for the words from
“ascertaining” to the end there is substituted “testing the extent to which the
provision made by the regulations is likely to promote—

(a) people remaining in work, or

(b) 5people obtaining or being able to obtain work (or more work or better-
paid work).”

(5) In section 35 (interpretation), in subsection (1), at the appropriate places there
is inserted—

• ““work availability requirement” has the meaning given by
  10section 6E;”;

Welfare Reform BillPage 36

• ““work preparation requirement” has the meaning given by
  section 6C;”;

• ““work search requirement” has the meaning given by section
  6D;”;

• 5““work-focused interview requirement” has the meaning given by
  section 6B;”;

• ““work-related requirement” has the meaning given by section 6;”.

(6) In section 37 (parliamentary control), in subsection (1), after paragraph (a)
there is inserted—

“(aa) 10the first regulations to be made under section 6J or 6K;”.

CHAPTER 2 Employment and support allowance

Conditions of entitlement

50 Dual entitlement

(1) In section 1 of the Welfare Reform Act 2007 (employment and support
15allowance), after subsection (6) there is inserted—

“(6A) In subsection (3)(f), in relation to a contributory allowance, the
reference to a couple entitled to a joint-claim jobseeker’s allowance
does not include a couple so entitled by virtue of regulations under
paragraph 8A of Schedule 1 to the Jobseekers Act 1995.”

(6A) 20In a case where—

(a) an award of an employment and support allowance is made to a person
in respect of any period of time before the coming into force of
subsection (1), and

(b) the person was not entitled to an employment and support allowance
25in relation to that period but would have been had subsection (1) been
in force in relation to that period,

subsection (1) shall be regarded as having been in force in relation to that
period.

51 Period of entitlement to contributory allowance

(1) 30After section 1 of the Welfare Reform Act 2007 there is inserted—

“1A Duration of contributory allowance

(1) The period for which a person is entitled to a contributory allowance
shall not exceed, in the aggregate, 365 days in any period for which his
entitlement is established by reference (under the second condition set
35out in Part 1 of Schedule 1) to the same two tax years.

(2) The fact that a person’s entitlement to a contributory allowance has
ceased as a result of subsection (1) does not prevent his being entitled
to a further such allowance if—

(a) he satisfies the first and second conditions set out in Part 1 of
40Schedule 1, and

(b) the two tax years by reference to which he satisfies the second
condition include at least one year which is later than the
second of the two years by reference to which (under the second
condition) his previous entitlement was established.

(3) 5In calculating for the purposes of subsection (1) the length of the period
for which a person is entitled to a contributory allowance, the following
are not to be counted—

(a) days in which the person is a member of the support group,

(b) days not falling within paragraph (a) in respect of which the
10person is entitled to the support component referred to in
section 2(1)(b), and

(c) days in the assessment phase, where the days immediately
following that phase fall within paragraph (a) or (b).

(4) In calculating for the purposes of subsection (1) the length of the period
15for which a person is entitled to a contributory allowance, days
occurring before the coming into force of this section are to be counted
(as well as those occurring afterwards).”

(2) In Schedule 4 to that Act (transition relating to Part 1), in paragraph 7(2), at the
end there is inserted—

“(f) 20make provision modifying the application of section 1A in
relation to awards of an employment and support allowance to
persons previously entitled to existing awards.”

52 Condition relating to youth

(1) In section 1 of the Welfare Reform Act 2007 (employment and support
25allowance), in subsection (2)(a), the words “or the third condition set out in that
Part of that Schedule (condition relating to youth)” are repealed.

(2) In Schedule 1 to that Act (additional conditions), paragraph 4 and the
preceding cross-heading are repealed.

(3) After the coming into force of this section no claim may be made for an
30employment and support allowance by virtue of the third condition set out in
Part 1 of Schedule 1 to the Welfare Reform Act 2007 (youth).

(4) In the case of a person who at any time after the coming into force of this
section is entitled to an employment and support allowance by virtue of that
condition, the period for which the person is entitled to that allowance shall not
35exceed 365 days.

(5) In calculating for the purposes of subsection (4) the length of the period for
which a person is entitled to an employment and support allowance, the
following are not to be counted—

(a) days in which the person is a member of the support group (within the
40meaning of Part 1 of the Welfare Reform Act 2007),

(b) days not falling within paragraph (a) in respect of which the person is
entitled to the support component referred to in section 2(1)(b) of the
Welfare Reform Act 2007, and

(c) days in the assessment phase (within the meaning of Part 1 of the
45Welfare Reform Act 2007), where the days immediately following that
phase fall within paragraph (a) or (b).

(6) In calculating for the purposes of subsection (4) the length of the period for
which a person is entitled to an employment and support allowance, days
occurring before the coming into force of this section are to be counted (as well
as those occurring afterwards).

5Claimant responsibilities for interim period

53 Claimant commitment for employment and support allowance

(1) The Welfare Reform Act 2007 is amended as follows.

(2) In section 1(3) (employment and support allowance: basic conditions) after
paragraph (a) there is inserted—

“(aa) 10has accepted a claimant commitment,”.

(3) After section 1A (as inserted by section 51 above) there is inserted—

“1B Claimant commitment

(1) For the purposes of this Part a “claimant commitment” is a record of the
claimant’s responsibilities in relation to an award of an employment
15and support allowance.

(2) A claimant commitment is to be prepared by the Secretary of State and
may be reviewed and updated as the Secretary of State thinks fit.

(3) A claimant commitment is to be in such form as the Secretary of State
thinks fit.

(4) 20A claimant commitment is to include—

(a) any prescribed information, and

(b) any other information the Secretary of State considers it
appropriate to include.

(5) For the purposes of this Part a claimant accepts a claimant commitment
25if, and only if, the claimant accepts the most up-to-date version of it in
such manner as may be prescribed.

(6) Regulations may provide that, in prescribed circumstances, a claimant
is to be treated as having satisfied the condition mentioned in section
1(3)(aa).”

(4) 30In section 15(2)(b) (directions about work-related activity) for the words from
“by” to “14” there is substituted “in such manner as the Secretary of State thinks
fit”.

(5) In section 16(1) (contracting out) before paragraph (a) there is inserted—

“(za) any function under section 1B in relation to a claimant
35commitment;”.

(6) In Schedule 2 (supplementary provisions) after paragraph 4 there is inserted—

Regulations may prescribe circumstances in which a person may be
entitled to employment and support allowance without having
accepted a claimant commitment.”

(7) In section 31(2) of the Welfare Reform Act 2009 (action plans: well-being of
children), in subsection (5) inserted into section 14 of the Welfare Reform Act
2007, after “preparing any” there is inserted “claimant commitment or”.

54 Work experience etc

5In section 13 of the Welfare Reform Act 2007 (work-related activity), after
subsection (7) there is inserted—

“(8) The reference to activity in subsection (7) includes work experience or
a work placement.”

55 Hardship payments

(1) 10In the Welfare Reform Act 2007 after section 16 there is inserted—

“16A Hardship payments

(1) Regulations may make provision for the making of payments
(“hardship payments”) by way of an employment and support
allowance to a person where—

(a) 15the amount otherwise payable to the person in respect of an
employment and support allowance is reduced by virtue of
regulations under section 11(3), 12(3) or 13(3), and

(b) the person is or will be in hardship.

(2) Regulations under this section may in particular make provision as
20to—

(a) circumstances in which a person is to be treated as being or not
being in hardship;

(b) matters to be taken into account in determining whether a
person is or will be in hardship;

(c) 25requirements or conditions to be met by a person in order to
receive hardship payments;

(d) the amount or rate of hardship payments;

(e) the period for which hardship payments may be made.”

Claimant responsibilities after introduction of universal credit

56 30Claimant responsibilities for employment and support allowance

(1) The Welfare Reform Act 2007 is amended as follows.

(2) For sections 11 to 16 (and the italic heading preceding section 11) there is
substituted—

“Work-related requirements

11 35Work-related requirements

(1) The following provisions of this Part provide for the Secretary of State
to impose work-related requirements with which persons entitled to an
employment and support allowance must comply for the purposes of
this Part.