Welfare Reform Bill (HL Bill 124)

Social Security (Recovery of Benefits) Act 1997 (c. 27)1997 (c. 27)

40 The Social Security (Recovery of Benefits) Act 1997 is amended as follows.

41 In section 29 (general interpretation), in the definition of “benefit”, after
“means” there is inserted “universal credit”.

42 5In the table in Schedule 2 (calculation of compensation payment), in the
section relating to compensation for earnings lost during the relevant
period, at the top of the second column insert “Universal credit”.

Social Security Act 1998 (c. 14)1998 (c. 14)

43 The Social Security Act 1998 (decisions and appeals) is amended as follows.

44 10In section 2 (use of computers), in subsection (2)—

(a) in paragraph (i), the final “or” is repealed;

(b) after paragraph (j) there is inserted—

“(k) Part 1 of the Welfare Reform Act 2012;”.

45 In section 8 (decisions by Secretary of State)—

(a) 15in subsection (3), after paragraph (a) there is inserted—

“(aa) universal credit;”;

(b) in subsection (4), for “or Part 1 of the Welfare Reform Act 2007” there
is substituted “, Part 1 of the Welfare Reform Act 2007, Part 1 of the
Welfare Reform Act 2012”.

46 20In section 11 (regulations with respect to decisions), in subsection (3), for
“and Part 1 of the Welfare Reform Act 2007” there is substituted “, Part 1 of
the Welfare Reform Act 2007, Part 1 of the Welfare Reform Act 2012”.

47 In section 27 (restriction on entitlement in cases of error), in subsection (7),
in the definition of “benefit” for paragraph (f) there is substituted—

“(f) 25universal credit”.

48 In section 28(3) (correction of errors in decisions etc)—

(a) in paragraph (f), the final “or” is repealed;

(b) after paragraph (g) there is inserted—

“(h) Part 1 of the Welfare Reform Act 2012;”.

49 30In section 39 (interpretation), in subsection (1), before the definition of
“health care professional” there is inserted—

• ““claimant”, in relation to a couple jointly claiming universal credit,
  means the couple or either member of the couple;”.

50 (1) Schedule 2 (decisions against which no appeal lies) is amended as follows.

(2) 35In paragraph 6(b), at the end there is inserted “or

“(v) section 159D(1)(b) of that Act (universal credit).”

(3) After paragraph 7 there is inserted—

“Increases in universal credit due to attainment of particular ages

7A A decision as to the amount of benefit to which a person is entitled,
40where it appears to the Secretary of State that the amount is
determined by the recipient’s entitlement to an increased amount

of universal credit in the circumstances referred to in section
160C(2) of the Administration Act.”

51 In Schedule 3 (decisions against which an appeal lies), after paragraph 3
there is inserted—

“3A

3A 5A decision as to the amount of a relevant benefit that is payable to
a person by virtue of regulations under section 6B, 7, 8 or 9 of the
Social Security Fraud Act 2001.”

Immigration and Asylum Act 1999 (c. 33)1999 (c. 33)

52 The Immigration and Asylum Act 1999 is amended as follows.

53 10In section 97 (provision of support: supplemental), in subsection (5)—

(a) before paragraph (a) there is inserted—

“(za) to such portion of the maximum amount of an award
of universal credit under section 8(1) of the Welfare
Reform Act 2012, or”;

(b) 15in paragraph (b) after “components” there is inserted “or elements”.

54 In section 115(1) (exclusion from benefits of persons subject to immigration
control) after “is entitled” there is inserted “to universal credit under Part 1
of the Welfare Reform Act 2012 or”.

Child Support, Pensions and Social Security Act 2000 (c. 19)2000 (c. 19)

55 20In section 69 of the Child Support, Pensions and Social Security Act 2000, in
subsection (1)(a), after “both” there is inserted “, universal credit”.

Social Security Fraud Act 2001 (c. 11)2001 (c. 11)

56 The Social Security Fraud Act 2001 is amended as follows.

57 In section 6A (definitions), in subsection (1), in the definition of
25“disqualifying benefit”, at the beginning there is inserted—

• “( za)

  any benefit under Part 1 of the Welfare Reform Act
  2012 (universal credit) or under any provision having
  effect in Northern Ireland corresponding to that
  Part;”.

58 (1) 30Section 6B (loss of benefit in case of conviction, penalty or caution for benefit
offence) is amended as follows.

(2) In subsection (5), for “(6)” there is substituted “(5A)”.

(3) After subsection (5) there is inserted—

“(5A) The Secretary of State may by regulations provide that, where the
35sanctionable benefit is universal credit, the benefit shall be payable,
during the whole or a part of any period comprised in the
disqualification period, as if one or more of the following applied—

(a) the amount payable were reduced in such manner as may be
prescribed;

(b) 40the benefit were payable only if there is compliance by the
offender with such obligations with respect to the provision
of information as may be imposed by the regulations;

(c) the benefit were payable only if the circumstances are
otherwise such as may be prescribed;

(d) any amount of the benefit payable in prescribed
circumstances were recoverable by the Secretary of State.”

(4) 5In subsection (7), after paragraph (c) there is inserted—

“(d) any amount of the allowance payable in prescribed
circumstances were recoverable by the Secretary of State.”

59 (1) Section 7 (loss of benefit for second or subsequent conviction of benefit
offence) is amended as follows.

(2) 10In subsection (2), for “(3)” there is substituted “(2A)”.

(3) After subsection (2) there is inserted—

“(2A) The Secretary of State may by regulations provide that, where the
sanctionable benefit is universal credit, the benefit shall be payable,
during the whole or a part of any period comprised in the
15disqualification period, as if one or more of the following applied—

(a) the amount payable were reduced in such manner as may be
prescribed;

(b) the benefit were payable only if there is compliance by the
offender with such obligations with respect to the provision
20of information as may be imposed by the regulations;

(c) the benefit were payable only if the circumstances are
otherwise such as may be prescribed;

(d) any amount of the benefit payable in prescribed
circumstances were recoverable by the Secretary of State.”

(4) 25In subsection (4), after paragraph (c) there is inserted—

“(d) any amount of the allowance payable in prescribed
circumstances were recoverable by the Secretary of State.”

60 (1) Section 8 (effect of offence on joint-claim jobseeker’s allowance) is amended
as follows.

(2) 30In subsection (3)—

(a) for “but” at the end of paragraph (a) there is substituted “and”;

(b) after paragraph (a) there is inserted—

“(aa) shall be payable in the couple’s case as if any amount
of the allowance payable in prescribed circumstances
35were recoverable by the Secretary of State; but”.

(3) In subsection (4), after paragraph (c) there is inserted—

“(d) any amount of the allowance payable in prescribed
circumstances were recoverable by the Secretary of State.”

(4) In the opening words to subsections (7) and (8) the words “by virtue of any
40regulations” are repealed.

61 (1) Section 9 (effect of offence on benefits for members of offender’s family) is
amended as follows.

(2) In subsection (1), before paragraph (a) there is inserted—

“(za) universal credit;”.

(3) In subsection (2), for “or” at the end of paragraph (b) there is substituted
“and”.

(4) After subsection (2) there is inserted—

“(2A) In relation to cases in which the benefit is universal credit, the
5provision that may be made by virtue of subsection (2) is provision
that, in the case of the offender’s family member, any universal credit
shall be payable, during the whole or a part of any period comprised
in the relevant period, as if one or more of the following applied—

(a) the amount payable were reduced in such manner as may be
10prescribed;

(b) the benefit were payable only if there is compliance by the
offender or the offender’s family member, or both of them,
with such obligations with respect to the provision of
information as may be imposed by the regulations;

(c) 15the benefit were payable only if the circumstances are
otherwise such as may be prescribed;

(d) any amount of the benefit payable in prescribed
circumstances were recoverable by the Secretary of State.”

(5) In subsection (4), after paragraph (c) there is inserted—

“(d) 20any amount of the allowance payable in prescribed
circumstances were recoverable by the Secretary of State.”

62 In section 10(3) (power to supplement and mitigate loss of benefit
provisions) after paragraph (bc) there is inserted—

“(bd) any benefit under Part 1 of the Welfare Reform Act 2012
25(universal credit) or under any provision having effect in
Northern Ireland corresponding to that Part;”.

63 (1) In section 11 (loss of benefit regulations), subsection (3) is amended as
follows.

(2) In paragraph (c)—

(a) 30for “6B(7)” there is substituted “6B(5A), (7)”;

(b) for “7(4)” there is substituted “7(2A), (4)”;

(c) for “9(4)” there is substituted “9(2A), (4)”.

(3) In paragraph (d) at the end there is inserted “or (aa)”.

State Pension Credit Act 2002 (c. 16)2002 (c. 16)

64 35In section 4 of the State Pension Credit Act 2002 (exclusions), after subsection
(1) there is inserted—

“(1A) A claimant is not entitled to state pension credit if he is a member of
a couple the other member of which has not attained the qualifying
age.”

40Welfare Reform Act 2007 (c. 5)2007 (c. 5)

65 In Schedule 1 to the Welfare Reform Act 2007 (employment and support
allowance: additional conditions), in paragraph 1(5), before paragraph (a)
there is inserted—

“(za) universal credit,”.

Section 33

SCHEDULE 3 Abolition of benefits: consequential amendments

Social Security Contributions and Benefits Act 1992 (c. 4)1992 (c. 4)

1 The Social Security Contributions and Benefits Act 1992 is amended as
5follows.

2 In section 22 (earnings factors), in subsections (2)(a) and (5), for “a
contributory” there is substituted “an”.

3 In section 150 (interpretation of Part 10), in subsection (2), in the definition
of “qualifying employment and support allowance”, for “a contributory
10allowance” there is substituted “an employment and support allowance”.

Social Security Administration Act 1992 (c. 5)1992 (c. 5)

4 The Social Security Administration Act 1992 is amended as follows.

5 In section 7 (relationship between benefits), in subsection (3), for
“subsections (1) and (2)” there is substituted “subsection (1)”.

6 15In section 73 (overlapping benefits), in subsections (1) and (4)(c), for “a
contributory” there is substituted “an”.

7 In section 159B (effect of alterations affecting state pension credit), for “a
contributory”, wherever occurring, there is substituted “an”.

8 In section 159D (as inserted by Schedule 2 to this Act) (effect of alterations
20affecting universal credit), for “a contributory”, wherever occurring, there is
substituted “an”.

Immigration and Asylum Act 1999 (c. 33)Immigration and Asylum Act 1999 (c. 33)

9 In the Immigration and Asylum Act 1999, in section 115 (exclusion from
benefits of persons subject to immigration control)—

(a) 25in subsection (1), after paragraph (ha) there is inserted “or”;

(b) in subsection (2)(b) for “(a) to (j)” substitute “(a) to (i)”.

Child Support, Pensions and Social Security Act 2000 (c. 19)2000 (c. 19)

10 The Child Support, Pensions and Social Security Act 2000 is amended as
follows.

11 (1) 30Section 69 (discretionary financial assistance with housing) is amended as
follows.

(2) In subsection (1)—

(a) for “relevant authorities” there is substituted “local authorities”;

(b) in paragraph (a), the words from “housing benefit” to “both,” are
35repealed.

(3) In subsection (2)—

(a) in paragraph (b), for “relevant authority” there is substituted “local
authority”;

(b) in paragraph (e), for “relevant authorities” there is substituted “local
authorities”;

(c) in paragraphs (f), (g) and (h), for “relevant authority” there is
substituted “local authority”.

(4) 5In subsection (5), for “relevant authorities” there is substituted “local
authorities”.

(5) In subsection (7), for the definition of “relevant authority” there is
substituted—

• ““local authority” has the meaning given by section 191 of the
  10Social Security Administration Act 1992.”

12 (1) Section 70 (grants towards cost of discretionary housing payments) is
amended as follows.

(2) In subsection (1), after “payments” there is inserted “(“grants”)”.

(3) For subsection (2) there is substituted—

“(2) 15The amount of a grant under this section shall be determined in
accordance with an order made by the Secretary of State with the
consent of the Treasury.”

(4) In subsection (8)—

(a) for the definition of “relevant authority” there is substituted—

• 20““local authority” has the same meaning as in section
  69;”;

(b) the definition of “subsidy” is repealed.

13 After section 70 there is inserted—

“70A Payment of grant

(1) 25A grant under section 70 shall be made by the Secretary of State in
such instalments, at such times, in such manner and subject to such
conditions as to claims, records, certificates, audit or otherwise as
may be provided by order of the Secretary of State with the consent
of the Treasury.

(2) 30The order may provide that if a local authority has not complied with
the conditions specified in it within such period as may be specified
in it, the Secretary of State may estimate the amount of grant under
section 70 payable to the authority and employ for that purpose such
criteria as he considers relevant.

(3) 35Where a grant under section 70 has been paid to a local authority and
it appears to the Secretary of State that—

(a) the grant has been overpaid, or

(b) there has been a breach of any condition specified in an order
under this section,

40he may recover from the authority the whole or such part of the
payment as he may determine.

(4) Without prejudice to the other methods of recovery, a sum
recoverable under this section may be recovered by withholding or
reducing subsidy.

(5) An order under this section may be made before, during or after the
end of the period to which it relates.

(6) In this section “local authority” has the same meaning as in section
69.

(7) 5Section 70(5) to (7) applies to orders under this section.”

Capital Allowances Act 2001 (c. 2)Capital Allowances Act 2001 (c. 2)

14 In Schedule A1 to the Capital Allowances Act 2001 (first-year tax credits), in
paragraph 17(1)(b) after “sick pay,” there is inserted “or”.

Social Security Fraud Act 2001 (c. 11)2001 (c. 11)

15 10The Social Security Fraud Act 2001 is amended as follows.

(16) In section 6B (loss of benefit for conviction etc), in subsection (5), for “to (10)” there is substituted “and (8)”.

(17) In section 7 (loss of benefit for repeated conviction etc), in subsection (2), for “to (5)” there is substituted “and (4A)”.

(18) In section 11 (regulations), in subsection (3)(c), for the words from “section” to the end there is substituted “section 6B(5A) or (8), 7(2A) or (4A) or 9(2A) or (4A)”.

Commissioners for Revenue and Customs Act 2005 (c. 11)Commissioners for Revenue and Customs Act 2005 (c. 11)

19 15The Commissioners for Revenue and Customs Act 2005 is amended as
follows.

(20) In section 5 (initial functions), in subsection (1), after paragraph (a) there is inserted “and”.

(21) In section 44 (payment into Consolidated Fund), in subsection (3), after paragraph (b) there is inserted “and”.

Welfare Reform Act 2007 (c. 5)2007 (c. 5)

22 20The Welfare Reform Act 2007 is amended as follows.

23 In section 1 (employment and support allowance), in subsection (3)(d), at the
end there is inserted “and”.

24 In section 2 (amount of contributory allowance), in subsection (1), for “In the
case of a contributory allowance, the amount payable” there is substituted
25“The amount payable by way of an employment and support allowance”.

25 (1) Section 27 (financial provisions) is amended as follows.

(2) In subsection (1), for the words from “so much of” to the end there is
substituted “any sums payable by way of employment and support
allowance”.

(3) 30In subsection (3), for “contributory” there is substituted “employment and
support”.

26 In each of the following provisions, for “a contributory allowance” there is
substituted “an employment and support allowance”—

(a) section 1A(1), (2), (3), (4) and (5) (as inserted by section 51 of this Act);

(b) section 1B(1) (as inserted by section 52 of this Act);

(c) 5section 3(2)(d);

(d) section 18(4);

(e) section 20(2), (3)(a), (b) and (c), (4), (5)(a), (b) and (c), (6), (7)(a), (b)
and (c);

(f) in Schedule 1, paragraphs 1(5)(d) and 3(2)(a);

(g) 10in Schedule 2, paragraphs 6 and 7(2)(d).

Corporation Tax Act 2009 (c. 4)Corporation Tax Act 2009 (c. 4)

27 The Corporation Tax Act 2009 is amended as follows.

(28) In section 1059 (relief relating to SME R&D: total amount of company’s PAYE and NICs liabilities), in subsection (5) after “sick pay” there is inserted “or”.

(29) In section 1108 (relief relating to vaccine research etc: total amount of company’s PAYE and NICs liabilities), in subsection (5) after “sick pay” there is inserted “or”.

Section 34

15SCHEDULE 4 Housing credit element of state pension credit

Part 1 Amendments to State Pension Credit Act 2002

State Pension Credit Act 2002 (c. 16)2002 (c. 16)

1 20The State Pension Credit Act 2002 is amended as follows.

2 In section 1 (entitlement), in subsection (2)(c), at the end there is inserted “or

“(iii) the conditions in section 3A(1) and (2) (housing
credit).”

3 In that section, in subsection (3)—

(a) 25after paragraph (b) there is inserted “or

“(c) to a housing credit, calculated in accordance with
section 3A, if he satisfies the conditions in subsections
(1) and (2) of that section,”;

(b) for the words from “(or to both)” to the end there is substituted “(or
30to more than one of them, if he satisfies the relevant conditions)”.

4 After section 3 there is inserted—

“3A Housing credit

(1) The first of the conditions mentioned in section 1(2)(c)(iii) is that the
claimant is liable to make payments in respect of the accommodation
35he occupies as his home.

(2) The second of the conditions mentioned in section 1(2)(c)(iii) is that
the claimant’s capital and income are such that the amount of the
housing credit payable (if he were entitled to it) would not be less
than a prescribed amount.

(3) 5Where the claimant is entitled to a housing credit, the amount of the
housing credit shall be an amount calculated in or determined under
regulations (which may be zero).

(4) For the purposes of subsection (1)—

(a) the accommodation must be in Great Britain;

(b) 10the accommodation must be residential accommodation;

(c) it is immaterial whether the accommodation consists of the
whole or part of a building and whether or not it comprises
separate and self-contained premises.

(5) Regulations may make provision as to—

(a) 15the meaning of “payments in respect of accommodation” for
the purposes of this section (and, in particular, as to the extent
to which such payments include mortgage payments);

(b) circumstances in which a claimant is to be treated as liable or
not liable to make such payments;

(c) 20circumstances in which a claimant is to be treated as
occupying or not occupying accommodation as his home
(and, in particular, for temporary absences to be
disregarded);

(d) circumstances in which land used for the purposes of any
25accommodation is to be treated as included in the
accommodation.

(6) Regulations under this section may make different provision for
different areas.”

5 In section 7 (fixing of retirement provision for assessed income period), at
30the end there is inserted—

“(10) Regulations may prescribe circumstances in which subsection (3)
does not apply for the purposes of determining the amount of a
housing credit to which the claimant is entitled.”

6 In section 12 (polygamous marriages), in subsection (2)(b), after “savings
35credit” there is inserted “or housing credit”.

7 In section 17 (interpretation), in subsection (1), after the definition of
“guarantee credit” there is inserted—

• ““housing credit” shall be construed in accordance with
  sections 1 and 3A;”.

(8) 40In Schedule 2 (consequential amendments etc), paragraph 9(5)(a) is repealed.

Part 2 Amendments to other Acts

Social Security Administration Act 1992 (c. 5)1992 (c. 5)

9 The Social Security Administration Act 1992 is amended as follows.

10 5In section 5 (regulations about claims and payments) in subsection (6),
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) 10in paragraph (b), for “the appropriate minimum guarantee
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.

12 (1) 15Section 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—

“(5) 20In this section “housing credit” has the same meaning as in the State
Pension Credit Act 2002”.

Housing Act 1996 (c. 52)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”.

(3) 25In 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)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)”.