some default text...

Welfare Reform Bill (HL Bill 114)

Welfare Reform BillPage 50

(10) In Schedule 11 (statutory sick pay: circumstances in which periods of
entitlement do not arise)—

(a) in paragraph 2, at the end there is inserted—

(i) the employee is not entitled to be in his employment
5on the relevant date.;

(b) at the end there is inserted—

9 Paragraph 2(i) above does not apply in prescribed
circumstances.

Part 3 10Other benefit changes

Industrial injuries benefit

63 Injuries arising before 5 July 1948

(1) In Part 5 of the Social Security Contributions and Benefits Act 1992 (industrial
injuries benefit), the following provisions are repealed—

(a) 15in section 94(1), the words “after 4th July 1948”;

(b) in section 103(2)(a), the words “after 4th July 1948”;

(c) in section 108(1), the words “and which developed after 4th July 1948”;

(d) in section 108(3), the words “but not before 5th July 1948”;

(e) in section 109(5)(a), the words “after 4th July 1948”;

(f) 20in section 109(5)(b) and (6)(a), the words “and developed after 4th July
1948”.

(2) Accordingly, section 111 and Schedule 8 of that Act (which relate to
compensation and benefits in respect of industrial injuries before 5 July 1948)
are repealed.

(3) 25The Secretary of State may make regulations—

(a) for, and in relation to, the payment of industrial injuries benefit to
persons to whom, before the commencement of this section,
compensation or benefits were payable under section 111 of, and
Schedule 8 to, the Social Security Contributions and Benefits Act 1992;

(b) 30for claims for the payment of such compensation or benefit to be treated
as claims for industrial injuries benefit.

(4) In subsection (3) “industrial injuries benefit” has the meaning given by section
122(1) of the Social Security Contributions and Benefits Act 1992.

(5) Regulations under this section are to be made by statutory instrument.

(6) 35A statutory instrument containing regulations under this section is subject to
annulment in pursuance of a resolution of either House of Parliament.

64 Persons under 18

(1) In Schedule 4 to the Social Security Contributions and Benefits Act 1992 (rates
of benefits), Part 5 (rates of industrial injuries benefit) is amended as follows.

(2) 40In entry 1 (which relates to disablement pension (weekly rates)), in the second
column (“Rate”)—

Welfare Reform BillPage 51

(a) in the opening words, for the words from “in that Table” to the end of
paragraph (b) there is substituted “in column (2) of that Table.”;

(b) in the Table, column (3) is repealed.

(3) In entry 4 (which relates to the maximum of aggregate of weekly benefit
5payable for successive accidents), in the second column (“Rate”)—

(a) paragraph (a) is repealed, except for the monetary amount specified;

(b) paragraph (b) is repealed, including the monetary amount specified.

65 Trainees

(1) After section 95 of the Social Security Contributions and Benefits Act 1992 there
10is inserted—

95A Employment training schemes etc

(1) In the industrial injuries and diseases provisions any reference to
employed earner’s employment shall be taken to include participation
in an employment training scheme or employment training course of a
15prescribed description (and “employed earner” shall be construed
accordingly).

(2) In those provisions, a reference to an employer, in relation to any such
participation, shall be taken to be a prescribed person.

(3) In this section “industrial injuries and diseases provisions” has the
20same meaning as in section 95(4) above.

(2) In section 11 of the Employment and Training Act 1973 (financial provision), in
subsection (3) (power to make payments in respect of trainees equivalent to
social security benefits payable in respect of employees), for “Parts II to V”
there is substituted “Parts 2 to 4”.

(3) 25The Secretary of State may make regulations—

(a) for, and in relation to, the payment of industrial injuries benefit to
persons to whom, before the commencement of this section, payments
were payable under section 11(3) of the Employment and Training Act
1973;

(b) 30for claims for such payments to be treated as claims for industrial
injuries benefit.

(4) In subsection (3) “industrial injuries benefit” has the meaning given by section
122(1) of the Social Security Contributions and Benefits Act 1992.

(5) Regulations under this section are to be made by statutory instrument.

(6) 35A statutory instrument containing regulations under this section is subject to
annulment in pursuance of a resolution of either House of Parliament.

66 Restriction on new claims for industrial death benefit

In Part 6 of Schedule 7 to the Social Security Contributions and Benefits Act
1992 (industrial death benefit), in paragraph 14, after sub-paragraph (1) there
40is inserted—

(1A) No claim may be made for industrial death benefit after the coming
into force of this sub-paragraph.

Welfare Reform BillPage 52

67 Determinations

(1) Section 29(2) of the Social Security Act 1998 (which provides for decisions as to
whether an accident is an industrial accident in the absence of a claim for
benefit) is repealed.

(2) 5In section 30 of that Act (effect of decision), in subsection (1), the words from
“(given” to “otherwise)” are repealed.

Housing benefit

68 Housing benefit: determination of appropriate maximum

(1) Section 130A of the Social Security Contributions and Benefits Act 1992
10(appropriate maximum housing benefit) is amended as follows.

(2) In subsection (3), for “The regulations may provide” there is substituted “The
provision which may be made by the regulations includes provision”.

(3) For subsections (5) and (6) there is substituted—

(5) The regulations may, for the purpose of determining the AMHB,
15provide for the amount of the liability mentioned in section 130(1)(a)
above to be taken to be an amount other than the actual amount of that
liability (and, without prejudice to the generality of this subsection,
may provide for it to be taken to be the amount of a rent officer
determination).

(6) 20The regulations may, for that purpose, make provision for determining
the amount of liability under section 130(1)(a) above which a person is
treated as having by virtue of regulations under section 137(2)(j) below
(and, without prejudice to the generality of this subsection, may
provide for that amount to be the amount of a rent officer
25determination).

(4) In section 176(1) of that Act (Parliamentary control), after paragraph (aa) there
is inserted—

(ab) the first regulations made by virtue of section 130A(5) or (6);.

Social fund

69 30Ending of discretionary payments

(1) Section 138(1)(b) of the Social Security Contributions and Benefits Act 1992
(discretionary payments out of social fund) is repealed.

(2) In consequence of the provision made by subsection (1), the office of the social
fund Commissioner is abolished.

(3) 35Payments are to be made out of the social fund into the Consolidated Fund in
respect of—

(a) amounts allocated under section 168 of the Social Security
Administration Act 1992 to the making of such payments as are
mentioned in section 138(1)(b) but which are not so applied in
40consequence of subsection (1);

Welfare Reform BillPage 53

(b) sums relating to such payments as are mentioned in section 138(1)(b)
that are paid into the social fund under section 164 of the Social Security
Administration Act 1992.

(4) The payments are to be such as the Secretary of State determines in accordance
5with any directions of the Treasury to be appropriate.

(5) Subsection (3) is not to prevent the Secretary of State from re-allocating
amounts allocated under section 168(1) of the Social Security Administration
Act 1992.

(6) The Secretary of State may by order provide for the transfer of property, rights
10and liabilities from the social fund Commissioner.

(7) An order under this section may—

(a) provide for the transfer of property, rights and liabilities whether or not
they would otherwise be capable of being transferred;

(b) make such supplementary, incidental, consequential or transitional
15provision as the Secretary of State considers appropriate.

(8) An order under this section is to be made by statutory instrument.

(9) A statutory instrument containing an order under this section is subject to
annulment in pursuance of a resolution of either House of Parliament.

(10) Schedule 8 contains consequential amendments.

70 20Purposes of discretionary payments

In section 138 of the Social Security Contributions and Benefits Act 1992
(payments out of the social fund), in subsection (1)(b), for “to meet other needs”
there is substituted “to meet—

(i) other needs, and

(ii) 25in the case of payments by way of budgeting loan, those
needs for which provision is made by paragraph (a),.

71 Determination of amount or value of budgeting loan

(1) Section 140 of the Social Security Contributions and Benefits Act 1992
(principles of determination) is amended as follows.

(2) 30In subsection (4), after paragraph (d) there is inserted—

(da) that the amount or value of a budgeting loan is not to exceed a
sum specified or determined as specified in the direction;.

(3) After subsection (4) there is inserted—

(4ZA) A direction under subsection (4)(da) may require the sum to be
35determined by applying, or by a method that includes applying, a
multiplier specified in the direction in circumstances specified in the
direction to the most recent relevant sum published by the Secretary of
State.

(4ZB) A relevant sum is a sum determined from time to time by reference to
40so much of any relevant allocation under section 168(1) to (4) of the
Administration Act as is available for making payments.

Welfare Reform BillPage 54

72 External provider social loans and community care grants

Sections 16 to 21 of the Welfare Reform Act 2009 (provisions relating to external
provider social loans and community care grants), which have not been
brought into force, are repealed.

5State pension credit

73 State pension credit: carers

(1) The State Pension Credit Act 2002 is amended as follows.

(2) In section 2 (guarantee credit), in subsection (8), for paragraphs (a) and (b)
there is substituted—

(a) 10the claimant has regular and substantial caring responsibilities,
or

(b) the claimant is a member of a couple the other member of which
has such responsibilities,.

(3) In section 17 (interpretation), in subsection (1), in the appropriate place there is
15inserted—

  • “regular and substantial caring responsibilities” has such
    meaning as may be prescribed;.

74 State pension credit: capital limit

(1) In section 1 of the State Pension Credit Act 2002 (entitlement), in subsection
20(2)—

(a) in paragraph (b), the final “and” is repealed;

(b) at the end there is inserted “and

(d) his capital does not exceed a prescribed amount.

(2) In section 19 of that Act (regulations and orders), in subsection (2), before
25paragraph (a) there is inserted—

(za) section 1(2)(d),.

Working tax credit

75 Calculation of working tax credit

(1) Step 5 in regulation 7(3) of the 2002 Regulations has effect in relation to awards
30of working tax credit for the whole or part of the relevant year as if from the
beginning of the day on 6 April 2011 the percentage to be applied under step 5
in finding the amount of the reduction were 41% (instead of 39%).

(2) Anything done by the Commissioners before the coming into force of this
section in relation to awards of working tax credit for the whole or part of the
35relevant year is to be treated as having been duly done, if it would have been
duly done but for being done on the basis that from the beginning of the day
on 6 April 2011 the percentage to be applied under step 5 was 41%.

(3) In this section—

  • “the 2002 Regulations” means the Tax Credits (Income Thresholds and
    40Determination of Rates) Regulations 2002 (S.I. 2002/2008S.I. 2002/2008);

  • Welfare Reform BillPage 55

  • “the Commissioners” means the Commissioners for Her Majesty’s
    Revenue and Customs;

  • “the relevant year” means the year beginning with 6 April 2011.

Part 4 5Personal independence payment

Personal independence payment

76 Personal independence payment

(1) An allowance known as personal independence payment is payable in
accordance with this Part.

(2) 10A person’s entitlement to personal independence payment may be an
entitlement to—

(a) the daily living component (see section 77);

(b) the mobility component (see section 78); or

(c) both those components.

(3) 15A person is not entitled to personal independence payment unless the person
meets prescribed conditions relating to residence and presence in Great
Britain.

77 Daily living component

(1) A person is entitled to the daily living component at the standard rate if—

(a) 20the person’s ability to carry out daily living activities is limited by the
person’s physical or mental condition; and

(b) the person meets the required period condition.

(2) A person is entitled to the daily living component at the enhanced rate if—

(a) the person’s ability to carry out daily living activities is severely limited
25by the person’s physical or mental condition; and

(b) the person meets the required period condition.

(3) In this section, in relation to the daily living component—

(a) “the standard rate” means such weekly rate as may be prescribed;

(b) “the enhanced rate” means such weekly rate as may be prescribed.

(4) 30In this Part “daily living activities” means such activities as may be prescribed
for the purposes of this section.

(5) See sections 79 and 80 for provision about determining—

(a) whether the requirements of subsection (1)(a) or (2)(a) above are met;

(b) whether a person meets “the required period condition” for the
35purposes of subsection (1)(b) or (2)(b) above.

(6) This section is subject to the provisions of this Part, or regulations under it,
relating to entitlement to the daily living component (see in particular sections
81 (persons who are terminally ill) and 82 (persons of pensionable age)).

Welfare Reform BillPage 56

78 Mobility component

(1) A person is entitled to the mobility component at the standard rate if—

(a) the person is of or over the age prescribed for the purposes of this
subsection;

(b) 5the person’s ability to carry out mobility activities is limited by the
person’s physical or mental condition; and

(c) the person meets the required period condition.

(2) A person is entitled to the mobility component at the enhanced rate if—

(a) the person is of or over the age prescribed for the purposes of this
10subsection;

(b) the person’s ability to carry out mobility activities is severely limited by
the person’s physical or mental condition; and

(c) the person meets the required period condition.

(3) In this section, in relation to the mobility component—

(a) 15“the standard rate” means such weekly rate as may be prescribed;

(b) “the enhanced rate” means such weekly rate as may be prescribed.

(4) In this Part “mobility activities” means such activities as may be prescribed for
the purposes of this section.

(5) See sections 79 and 80 for provision about determining—

(a) 20whether the requirements of subsection (1)(b) or (2)(b) above are met;

(b) whether a person meets “the required period condition” for the
purposes of subsection (1)(c) or (2)(c) above.

(6) This section is subject to the provisions of this Part, or regulations under it,
relating to entitlement to the mobility component (see in particular sections 81
25and 82).

(7) Regulations may provide that a person is not entitled to the mobility
component for a period (even though the requirements in subsection (1) or (2)
are met) in prescribed circumstances where the person’s condition is such that
during all or most of the period the person is unlikely to benefit from enhanced
30mobility.

79 Ability to carry out daily living activities or mobility activities

(1) For the purposes of this Part, the following questions are to be determined in
accordance with regulations—

(a) whether a person’s ability to carry out daily living activities is limited
35by the person’s physical or mental condition;

(b) whether a person’s ability to carry out daily living activities is severely
limited by the person’s physical or mental condition;

(c) whether a person’s ability to carry out mobility activities is limited by
the person’s physical or mental condition;

(d) 40whether a person’s ability to carry out mobility activities is severely
limited by the person’s physical or mental condition.

(2) Regulations must make provision for determining, for the purposes of each of
sections 77(1) and (2) and 78(1) and (2), whether a person meets “the required
period condition” (see further section 80).

(3) 45Regulations under this section—

Welfare Reform BillPage 57

(a) must provide for the questions mentioned in subsections (1) and (2) to
be determined, except in prescribed circumstances, on the basis of an
assessment (or repeated assessments) of the person;

(b) must provide for the way in which an assessment is to be carried out;

(c) 5may make provision about matters which are, or are not, to be taken
into account in assessing a person.

(4) The regulations may, in particular, make provision—

(a) about the information or evidence required for the purpose of
determining the questions mentioned in subsections (1) and (2);

(b) 10about the way in which that information or evidence is to be provided;

(c) requiring a person to participate in such a consultation, with a person
approved by the Secretary of State, as may be determined under the
regulations (and to attend for the consultation at a place, date and time
determined under the regulations).

(5) 15The regulations may include provision—

(a) for a negative determination to be treated as made if a person fails
without a good reason to comply with a requirement imposed under
subsection (4);

(b) about what does or does not constitute a good reason for such a failure;

(c) 20about matters which are, or are not, to be taken into account in
determining whether a person has a good reason for such a failure.

(6) In subsection (5)(a) a “negative determination” means a determination that a
person does not meet the requirements of—

(a) section 77(1)(a) and (b) or (2)(a) and (b) (daily living component);

(b) 25section 78(1)(a) to (c) or (2)(a) to (c) (mobility component).

80 Required period condition: further provision

(1) Regulations under section 79(2) must provide for the question of whether a
person meets “the required period condition” for the purposes of section 77(1)
or (2) or 78(1) or (2) to be determined by reference to—

(a) 30whether, as respects every time in the previous 6 months, it is likely that
if the relevant ability had been assessed at that time that ability would
have been determined to be limited or (as the case may be) severely
limited by the person’s physical or mental condition; and

(b) whether, as respects every time in the next 6 months, it is likely that if
35the relevant ability were to be assessed at that time that ability would
be determined to be limited or (as the case may be) severely limited by
the person’s physical or mental condition.

(2) In subsection (1) “the relevant ability” means—

(a) in relation to section 77(1) or (2), the person’s ability to carry out daily
40living activities;

(b) in relation to section 78(1) or (2), the person’s ability to carry out
mobility activities.

(3) In subsection (1)

(a) “assessed” means assessed in accordance with regulations under
45section 79;

(b) “the previous 6 months” means the 6 months ending with the
prescribed date;

Welfare Reform BillPage 58

(c) “the next 6 months” means the 6 months beginning with the day after
that date.

(4) Regulations under section 79(2) may provide that in prescribed cases the
question of whether a person meets “the required period condition” for the
5purposes of section 77(1) or (2) or 78(1) or (2)

(a) is not to be determined in accordance with the provision made by
virtue of subsections (1) to (3) above;

(b) is to be determined in accordance with provision made in relation to
those cases by the regulations.

10Entitlement and payability: further provision

81 Terminal illness

(1) This section applies to a person who—

(a) is terminally ill; and

(b) has made a claim for personal independence payment expressly on the
15ground of terminal illness.

(2) A person to whom this section applies is entitled to the daily living component
at the enhanced rate (and accordingly section 77(1) and (2) do not apply to such
a person).

(3) Section 78(1)(c) and (2)(c) (required period condition for mobility component)
20do not apply to a person to whom this section applies.

(4) For the purposes of this section a person is “terminally ill” at any time if at that
time the person suffers from a progressive disease and the person’s death in
consequence of that disease can reasonably be expected within 6 months.

(5) For the purposes of this section, where—

(a) 25a person purports to make a claim for personal independence payment
on behalf of another, and

(b) the claim is made expressly on the ground that the person on whose
behalf it purports to be made is terminally ill,

that person is to be regarded as making the claim despite its being made
30without that person’s knowledge or authority.

(6) In subsection (2) “the enhanced rate” has the meaning given by section 77(3).

82 Persons of pensionable age

(1) A person is not entitled to the daily living component or the mobility
component for any period after the person reaches the relevant age.

(2) 35In subsection (1) “the relevant age” means—

(a) pensionable age (within the meaning given by the rules in paragraph 1
of Schedule 4 to the Pensions Act 1995); or

(b) if higher, 65.

(3) Subsection (1) is subject to such exceptions as may be provided by regulations.

Welfare Reform BillPage 59

83 No entitlement to daily living component where UK is not competent state

(1) A person to whom a relevant EU Regulation applies is not entitled to the daily
living component for a period unless during that period the United Kingdom
is competent for payment of sickness benefits in cash to the person for the
5purposes of Chapter 1 of Title III of the Regulation in question.

(2) Each of the following is a “relevant EU Regulation” for the purposes of this
section—

(a) Council Regulation (EC) No 1408/71 of 14 June 1971 on the application
of social security schemes to employed persons, to self-employed
10persons and to members of their families moving within the
Community;

(b) Regulation (EC) No 883/2004 of the European Parliament and of the
Council of 29 April 2004 on the coordination of social security systems.

84 Persons receiving certain services

(1) 15Regulations may provide as mentioned in either or both of the following
paragraphs—

(a) that no amount in respect of personal independence payment which is
attributable to entitlement to the daily living component is payable in
respect of a person for a period when the person meets the condition in
20subsection (2);

(b) that no amount in respect of personal independence payment which is
attributable to entitlement to the mobility component is payable in
respect of a person for a period when the person meets the condition in
subsection (2).

(2) 25The condition is that the person is an in-patient of a hospital or similar
institution, or a resident of a care home, in circumstances in which any of the
costs of any qualifying services provided for the person are borne out of public
or local funds by virtue of a specified enactment.

(3) In this section “care home” means an establishment that provides
30accommodation together with nursing or personal care.

(4) The following are “qualifying services” for the purposes of subsection (2)—

(a) medical or other treatment which the person is undergoing as an in-
patient;

(b) accommodation;

(c) 35board;

(d) personal care;

(e) such other services as may be prescribed.

(5) The reference in subsection (2) to a “specified enactment” is to an enactment
which is specified for the purposes of that subsection by regulations or is of a
40description so specified.

(6) The power to specify an enactment for the purposes of subsection (2) includes
power to specify it only in relation to its application for a particular purpose.

(7) In this section “enactment” includes an enactment comprised in an Act of the
Scottish Parliament or in an instrument made under such an Act.