PART 4 continued
Contents page 1-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-99 100-109 110-119 120-129 130-139 140-148 150-181 Last page
Welfare Reform BillPage 60
Except to the extent that regulations provide otherwise, no amount in respect
of personal independence payment is payable in respect of a person for a
period during which the person is undergoing imprisonment or detention in
5legal custody.
(1)
A person is not entitled to personal independence payment for any period
before the date on which a claim for it is made or treated as made by that
10person or on that person’s behalf.
(2)
An award of personal independence payment is to be for a fixed term except
where the person making the award considers that a fixed term award would
be inappropriate.
(3)
In deciding whether a fixed term award would be inappropriate, that person
15must have regard to guidance issued by the Secretary of State.
(4)
Information supplied under this Part is to be taken for all purposes to be
information relating to social security.
(1)
The Secretary of State must lay before Parliament an independent report on the
20operation of assessments under section 79.
(2)
The report must be laid within 3 years beginning with the coming into force of
that section.
25Sections 71 to 76 of the Social Security Contributions and Benefits Act 1992
(disability living allowance) are repealed.
Schedule 9 contains amendments relating to this Part.
(1)
30The Secretary of State may by regulations make such consequential,
supplementary or incidental provision in relation to any provision of this Part
as the Secretary of State considers appropriate.
(2)
The Scottish Ministers may by regulations make such consequential,
supplementary or incidental provision in relation to any provision of this Part
35as they consider appropriate, subject to subsection (3).
Welfare Reform BillPage 61
(3)
The Scottish Ministers may only make provision under subsection (2) which
would be within the legislative competence of the Scottish Parliament if it were
contained in an Act of that Parliament.
(4) Regulations under this section may—
(a)
5amend, repeal or revoke any primary or secondary legislation passed
or made before the day on which this Act is passed, or
(b)
amend or repeal any provision of an Act passed on or after that day but
in the same session of Parliament.
(5) In this section—
(a) 10“primary legislation” means an Act or Act of the Scottish Parliament;
(b)
“secondary legislation” means any instrument made under primary
legislation.
(1)
Regulations may make such provision as the Secretary of State considers
15necessary or expedient in connection with the coming into force of any
provision of this Part.
(2)
Schedule 10 (transitional provision for introduction of personal independence
payment) has effect.
(1)
20Regulations 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—
(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
25be exercised.
(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
30any matter.
(4)
The power under subsection (2)(a) includes, in particular, power to make
different provision for persons of different ages.
(5)
Regulations made under this Part by the Secretary of State are to be made by
statutory instrument.
(6)
35A statutory instrument containing (whether alone or with other provision) any
of the following—
(a) the first regulations under section 77(4) or 78(4);
(b) the first regulations under section 79;
(c)
the first regulations under that section containing provision about
40assessment of persons under the age of 16,
may not be made unless a draft of the instrument has been laid before, and
approved by a resolution of, each House of Parliament.
Welfare Reform BillPage 62
(7)
Any other statutory instrument containing regulations under this Part is
subject to annulment in pursuance of a resolution of either House of
Parliament.
(8) Regulations made by the Scottish Ministers under section 90 are subject to—
(a)
5the affirmative procedure, if they contain provision amending or
repealing primary legislation (within the meaning of that section), and
(b) the negative procedure, in any other case.
In this Part—
10“daily living activities” has the meaning given by section 77(4);
“daily living component” means the daily living component of personal
independence payment;
“mobility activities” has the meaning given by section 78(4);
“mobility component” means the mobility component of personal
15independence payment;
“prescribed” means prescribed by regulations.
(1)
Regulations may provide for a benefit cap to be applied to the welfare benefits
to which a single person or couple is entitled.
(2)
For the purposes of this section, applying a benefit cap to welfare benefits
means securing that, where a single person’s or couple’s total entitlement to
25welfare benefits in respect of the reference period exceeds the relevant amount,
their entitlement to welfare benefits in respect of any period of the same
duration as the reference period is reduced by an amount up to or equalling the
excess.
(3)
In subsection (2) the “reference period” means a period of a prescribed
30duration.
(4) Regulations under this section may in particular—
(a)
make provision as to the manner in which total entitlement to welfare
benefits for any period, or the amount of any reduction, is to be
determined;
(b)
35make provision as to the welfare benefit or benefits from which a
reduction is to be made;
(c) provide for exceptions to the application of the benefit cap;
(d)
make provision as to the intervals at which the benefit cap is to be
applied;
(e)
40make provision as to the relationship between application of the benefit
cap and any other reduction in respect of a welfare benefit;
Welfare Reform BillPage 63
(f)
provide that where in consequence of a change in the relevant amount,
entitlement to a welfare benefit increases or decreases, that increase or
decrease has effect without any further decision of the Secretary of
State;
(g) 5make supplementary and consequential provision.
(5) In this section the “relevant amount” is an amount specified in regulations.
(6)
The amount specified under subsection (5) is to be determined by reference to
estimated average earnings.
(7)
In this section “estimated average earnings” means the amount which, in the
10opinion of the Secretary of State, represents at any time the average weekly
earnings of a working household in Great Britain after deductions in respect of
tax and national insurance contributions.
(8)
The Secretary of State may estimate such earnings in such manner as the
Secretary of State thinks fit.
(9)
15Regulations under this section may not provide for any reduction to be made
from a welfare benefit—
(a)
provision for which is within the legislative competence of the Scottish
Parliament;
(b)
provision for which is within the legislative competence of the National
20Assembly for Wales;
(c)
provision for which is made by the Welsh Ministers, the First Minister
for Wales or the Counsel General to the Welsh Assembly Government.
(10) In this section—
“couple” means two persons of a prescribed description;
25“prescribed” means prescribed in regulations;
“regulations” means regulations made by the Secretary of State;
“single person” means a person who is not a member of a couple;
“welfare benefit” means any prescribed benefit, allowance, payment or
credit.
(11) 30Regulations under subsection (10) may not prescribe as welfare benefits—
(a) state pension credit under the State Pension Credit Act 2002, or
(b)
retirement pensions under Part 2 or 3 of the Social Security
Contributions and Benefits Act 1992.
(1)
35Regulations under section 94 may make different provision for different
purposes or cases.
(2) Regulations under section 94 must be made by statutory instrument.
(3)
A statutory instrument containing the first regulations under section 94 may
not be made unless a draft of the instrument has been laid before, and
40approved by resolution of, each House of Parliament.
(4)
A statutory instrument containing other regulations under section 94 is subject
to annulment in pursuance of a resolution of either House of Parliament.
(5) In section 150 of the Social Security Administration Act 1992 (annual up-rating
Welfare Reform BillPage 64
of benefits) after subsection (7) there is inserted—
“(7A) The Secretary of State—
(a)
shall in each tax year review the amount specified under
subsection (5) of section 94 of the Welfare Reform Act 2011
5(benefit cap) to determine whether its relationship with
estimated average earnings (within the meaning of that section)
has changed, and
(b)
after that review may, if the Secretary of State considers it
appropriate, include in the draft of an up-rating order provision
10increasing or decreasing that amount.”
(6)
In Schedule 2 to the Social Security Act 1998 (decisions against which no appeal
lies) after paragraph 8 there is inserted—
8A
A decision to apply the benefit cap in accordance with regulations
15under section 94 of the Welfare Reform Act 2011.”
(1)
Section 5(1) of the Social Security Administration Act 1992 (regulations about
claims and payments) is amended as follows.
(2)
20In paragraph (d) (conditional awards), for the words from “the condition” to
the end there is substituted—
“(i)
the condition that the requirements for entitlement are
satisfied at a prescribed time after the making of the
award, or
(ii) 25other prescribed conditions;”.
(3)
In paragraph (e), for “those requirements” there is substituted “the conditions
referred to in paragraph (d)”.
(4)
In paragraph (g) (claims made on behalf of another), after “applies” there is
inserted “(including in particular, in the case of a benefit to be claimed by
30persons jointly, enabling one person to claim for such persons jointly)”.
(5)
In paragraph (j) (notice of change of circumstances etc), at the end there is
inserted “or of any other change of circumstance of a prescribed description”.
(1)
Section 5 of the Social Security Administration Act 1992 (regulations about
35claims and payments) is amended as follows.
(2)
In subsection (1), paragraphs (h) and (hh) (powers to make provision requiring
the furnishing of information or evidence) are repealed.
(3) After that subsection there is inserted—
“(1A)
Regulations may make provision for requiring a person of a prescribed
40description to supply any information or evidence which is, or could
be, relevant to—
Welfare Reform BillPage 65
(a)
a claim or award relating to a benefit to which this section
applies, or
(b) potential claims or awards relating to such a benefit.”
(4) Subsection (3A) is repealed.
(5)
5In section 22 of the Social Security Act 1998 (suspension for failure to furnish
information etc), in subsection (3), for “subsection (1)(hh) of section 5” there is
substituted “section 5(1A)”.
10In section 5 of the Social Security Administration Act 1992 (regulations about
claims and payments), after subsection (3A) there is inserted—
“(3B)
The power in subsection (1)(i) above to make provision for the person
to whom a benefit is to be paid includes, in the case of a benefit awarded
to persons jointly, power to make provision for the Secretary of State to
15determine to which of them all or any part of a payment should be
made, and in particular for the Secretary of State—
(a)
to determine that payment should be made to whichever of
those persons they themselves nominate, or
(b)
to determine that payment should be made to one of them
20irrespective of any nomination by them.”
(1)
In section 5(1) of the Social Security Administration Act 1992 (regulations
about claims and payments), for paragraph (r) there is substituted—
“(r) for the making of a payment on account of such a benefit—
(i)
25in cases where it is impracticable for a claim to be made
or determined immediately, or for an award to be
determined or paid in full immediately,
(ii) in cases of need, or
(iii)
in cases where the Secretary of State considers in
30accordance with prescribed criteria that the payment
can reasonably be expected to be recovered;”.
(2)
Section 22 of the Welfare Reform Act 2009 (payments on account), which has
not been brought into force, is repealed.
(1) The Social Security Act 1998 is amended as follows.
(2) In section 12 (appeals to First-tier Tribunal), in subsection (2)—
(a) the words from “in relation to” to the end become paragraph (a), and
(b) after that paragraph there is inserted “, or
“(b) 40where regulations under subsection (3A) so provide.”
Welfare Reform BillPage 66
(3) After subsection (3) of that section there is inserted—
“(3A)
Regulations may provide that, in such cases or circumstances as may be
prescribed, there is a right of appeal under subsection (2) in relation to
a decision only if the Secretary of State has considered whether to revise
5the decision under section 9.
(3B)
The regulations may in particular provide that that condition is met
only where—
(a)
the consideration by the Secretary of State was on an
application,
(b)
10the Secretary of State considered issues of a specified
description, or
(c)
the consideration by the Secretary of State satisfied any other
condition specified in the regulations.
(3C)
The references in subsections (3A) and (3B) to regulations and to the
15Secretary of State are subject to any enactment under or by virtue of
which the functions under this Chapter are transferred to or otherwise
made exercisable by a person other than the Secretary of State.”
(4) In subsection (7) of that section—
(a) the words from “make provision” to the end become paragraph (a);
(b) 20after that paragraph there is inserted—
“(b)
provide that, where in accordance with regulations
under subsection (3A) there is no right of appeal against
a decision, any purported appeal may be treated as an
application for revision under section 9.”
(5)
25In section 80(1)(a) (affirmative procedure for certain regulations) after “12(2)”
there is inserted “or (3A)”.
(6) Schedule 11 contains similar amendments to other Acts.
(7)
Subsection (8) applies where regulations under a provision mentioned in
subsection (9) are made so as to have effect in relation to a limited area (by
30virtue of provision made under section 144(4)(b)).
(8)
Any power to make, in connection with those regulations, provision as
respects decisions and appeals may be exercised so that that provision applies
only in relation to the area mentioned in subsection (7).
(9) The provisions referred to in subsection (7) are—
(a) 35section 12(3A) of the Social Security Act 1998;
(b) section 4(1B) of the Vaccine Damage Payments Act 1979;
(c)
subsection (2A) of section 20 of the Child Support Act 1991 (as
substituted by section 10 of the Child Support, Pensions and Social
Security Act 2000);
(d)
40subsection (3A) of section 20 of the Child Support Act 1991 (as it has
effect apart from section 10 of the Child Support, Pensions and Social
Security Act 2000);
(e) section 11(2A) of the Social Security (Recovery of Benefits) Act 1997;
(f)
paragraph 6(5A) of Schedule 7 to the Child Support, Pensions and
45Social Security Act 2000;
(g) section 50(1A) of the Child Maintenance and Other Payments Act 2008.
Welfare Reform BillPage 67
(1)
Schedule 12 contains amendments reinstating powers to make decisions
superseding decisions made by appellate bodies before their functions were
transferred to the First-tier Tribunal and Upper Tribunal.
(2) 5The following have effect as if they had come into force on 3 November 2008—
(a) the amendments made by Schedule 12, and
(b)
if regulations made in the exercise of the powers conferred by virtue of
those amendments so provide, those regulations.
(1)
In section 189 of the Social Security Administration Act 1992 (regulations and
orders - general), after subsection (5) there is inserted—
“(5A)
The provision referred to in subsection (5) includes, in a case where
regulations under this Act require or authorise the use of electronic
15communications, provision referred to in section 8(4) and (5) and 9(5)
of the Electronic Communications Act 2000.
(5B)
For the purposes of subsection (5A), references in section 8(4) and (5)
and 9(5) of the Electronic Communications Act 2000 to an order under
section 8 of that Act are to be read as references to regulations under
20this Act; and references to anything authorised by such an order are to
be read as references to anything required or authorised by such
regulations.”
(2)
In section 79 of the Social Security Act 1998 (regulations and orders), after
subsection (6) there is inserted—
“(6A)
25The provision referred to in subsection (6) includes, in a case where
regulations under this Act require or authorise the use of electronic
communications, provision referred to in section 8(4) and (5) and 9(5)
of the Electronic Communications Act 2000.
(6B)
For the purposes of subsection (6A), references in section 8(4) and (5)
30and 9(5) of the Electronic Communications Act 2000 to an order under
section 8 of that Act are to be read as references to regulations under
this Act; and references to anything authorised by such an order are to
be read as references to anything required or authorised by such
regulations.”
(1) In the Social Security Administration Act 1992, after section 71ZA there is
Welfare Reform BillPage 68
inserted—
(1)
The Secretary of State may recover any amount of the following paid in
5excess of entitlement—
(a) universal credit,
(b) jobseeker’s allowance,
(c) employment and support allowance, and
(d)
except in prescribed circumstances, housing credit (within the
10meaning of the State Pension Credit Act 2002).
(2) An amount recoverable under this section is recoverable from—
(a) the person to whom it was paid, or
(b)
such other person (in addition to or instead of the person to
whom it was paid) as may be prescribed.
(3)
15An amount paid in pursuance of a determination is not recoverable
under this section unless the determination has been—
(a) reversed or varied on an appeal, or
(b)
revised or superseded under section 9 or section 10 of the Social
Security Act 1998,
20except where regulations otherwise provide.
(4)
Regulations may provide that amounts recoverable under this section
are to be calculated or estimated in a prescribed manner.
(5)
Where an amount of universal credit is paid for the sole reason that a
payment by way of prescribed income is made after the date which is
25the prescribed date for payment of that income, that amount is for the
purposes of this section paid in excess of entitlement.
(6)
In the case of a benefit referred to in subsection (1) which is awarded to
persons jointly, an amount paid to one of those persons may for the
purposes of this section be regarded as paid to the other.
(7)
30An amount recoverable under this section may (without prejudice to
any other means of recovery) be recovered—
(a) by deduction from benefit (section 71ZC);
(b) by deduction from earnings (section 71ZD);
(c) through the courts etc (section 71ZE);
(d) 35by adjustment of benefit (section 71ZF).
(1)
An amount recoverable from a person under section 71ZB may be
recovered by deducting the amount from payments of prescribed
benefit.
(2)
40Where an amount recoverable from a person under section 71ZB was
paid to the person on behalf of another, subsection (1) authorises its
recovery from the person by deduction—
(a) from prescribed benefits to which the person is entitled,
Welfare Reform BillPage 69
(b)
from prescribed benefits paid to the person to discharge (in
whole or in part) an obligation owed to that person by the
person on whose behalf the recoverable amount was paid, or
(c)
from prescribed benefits paid to the person to discharge (in
5whole or in part) an obligation owed to that person by any other
person.
(3)
Where an amount is recovered as mentioned in paragraph (b) of
subsection (2), the obligation specified in that paragraph shall in
prescribed circumstances be taken to be discharged by the amount of
10the deduction.
(4)
Where an amount is recovered as mentioned in paragraph (c) of
subsection (2), the obligation specified in that paragraph shall in all
cases be taken to be so discharged.
(1)
15Regulations may provide for amounts recoverable under section 71ZB
to be recovered by deductions from earnings.
(2) In this section “earnings” has such meaning as may be prescribed.
(3) Regulations under subsection (1) may include provision—
(a)
requiring the person from whom an amount is recoverable (“the
20beneficiary”) to disclose details of their employer, and any
change of employer, to the Secretary of State;
(b)
requiring the employer, on being served with a notice by the
Secretary of State, to make deductions from the earnings of the
beneficiary and to pay corresponding amounts to the Secretary
25of State;
(c)
as to the matters to be contained in such a notice and the period
for which a notice is to have effect;
(d) as to how payment is to be made to the Secretary of State;
(e)
as to a level of earnings below which earnings must not be
30reduced;
(f)
allowing the employer, where the employer makes deductions,
to deduct a prescribed sum from the beneficiary’s earnings in
respect of the employer’s administrative costs;
(g) requiring the employer to keep records of deductions;
(h)
35requiring the employer to notify the Secretary of State if the
beneficiary is not, or ceases to be, employed by the employer;
(i)
creating a criminal offence for non-compliance with the
regulations, punishable on summary conviction by a fine not
exceeding level 3 on the standard scale;
(j)
40with respect to the priority as between a requirement to deduct
from earnings under this section and—
(i) any other such requirement;
(ii)
an order under any other enactment relating to England
and Wales which requires deduction from the
45beneficiary’s earnings;
(iii) any diligence against earnings.