Welfare Reform Bill (HL Bill 124)

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Section 35

SCHEDULE 5 Universal credit and other working-age benefits

General

1 (1) In this Schedule “relevant benefit” means—

(a) 5jobseeker’s allowance, or

(b) employment and support allowance.

(2) In this Schedule “work-related requirement” means—

(a) a work-related requirement within the meaning of this Part,

(b) a work-related requirement within the meaning of the Jobseekers
10Act 1995, or

(c) a work-related requirement within the meaning of Part 1 of the
Welfare Reform Act 2007.

(3) In this Schedule “sanction” means a reduction of benefit under—

(a) section 26 or 27,

(b) 15section 6J or 6K of the Jobseekers Act 1995, or

(c) section 11J of the Welfare Reform Act 2007.

Dual entitlement

2 (1) Regulations may make provision as to the amount payable by way of a
relevant benefit where a person is entitled to that benefit and universal
20credit.

(2) Regulations under sub-paragraph (1) may in particular provide for no
amount to be payable by way of a relevant benefit.

(3) Regulations may, where a person is entitled to a relevant benefit and
universal credit—

(a) 25make provision as to the application of work-related requirements;

(b) make provision as to the application of sanctions.

(4) Provision under sub-paragraph (3)(a) includes in particular—

(a) provision securing that compliance with a work-related requirement
for a relevant benefit is to be treated as compliance with a work-
30related requirement for universal credit;

(b) provision disapplying any requirement on the Secretary of State to
impose, or a person to comply with, a work-related requirement for
a relevant benefit or universal credit.

(5) Provision under sub-paragraph (3)(b) includes in particular—

(a) 35provision for the order in which sanctions are to be applied to
awards of relevant benefit and universal credit;

(b) provision to secure that the application of a sanction to an award of
a relevant benefit does not result in an increase of the amount of an
award of universal credit.

40Movement between working-age benefits

3 Regulations may provide—

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(a) in a case where a person ceases to be entitled to universal credit and
becomes entitled to a relevant benefit, for a sanction relating to the
award of universal credit to be applied to the award of the relevant
benefit;

(b) 5in a case where a person ceases to be entitled to a relevant benefit and
becomes entitled to universal credit, for a sanction relating to the
award of the relevant benefit to be applied to the award of universal
credit;

(c) in a case where a person ceases to be entitled to one relevant benefit
10and becomes entitled to the other, for a sanction relating to the award
of the former to apply to the award of the latter.

Hardship payments

4 Regulations under section 28 (hardship payments) may be made in relation
to a person whose award of universal credit is reduced by virtue of
15regulations under paragraph 2(3)(b) or 3(b) as in relation to a person whose
award is reduced under section 26 or 27.

Earnings tapers

5 In section 4 of the Jobseekers Act 1995 (amount payable by way of a
jobseeker’s allowance), in subsection (1)(b)—

(a) 20after “making” there is inserted—

(i) deductions in respect of earnings calculated in
the prescribed manner (which may include
multiplying some or all earnings by a
prescribed percentage), and

(ii); 25

(b) “earnings,” (before “pension payments”) is repealed.

6 (1) Section 2 of the Welfare Reform Act 2007 (amount of contributory
allowance) is amended as follows.

(2) In subsection (1)(c), after “making” there is inserted—

(i) 30deductions in respect of earnings calculated in the
prescribed manner (which may include multiplying
some or all earnings by a prescribed percentage), and

(ii).

(3) At the end there is inserted—

(6) 35In subsection (1)(c)(i) the reference to earnings is to be construed in
accordance with sections 3, 4 and 112 of the Social Security
Contributions and Benefits Act 1992.

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Section 36

SCHEDULE 6 Migration to universal credit

General

1 (1) Regulations may make provision for the purposes of, or in connection with,
5replacing existing benefits with universal credit.

(2) In this Schedule “existing benefit” means—

(a) a benefit abolished under section 33(1);

(b) any other prescribed benefit.

(3) In this Schedule “appointed day” means the day appointed for the coming
10into force of section 1.

Claims before the appointed day

2 (1) The provision referred to in paragraph 1(1) includes—

(a) provision for a claim for universal credit to be made before the
appointed day for a period beginning on or after that day;

(b) 15provision for a claim for universal credit made before the appointed
day to be treated to any extent as a claim for an existing benefit;

(c) provision for a claim for an existing benefit made before the
appointed day to be treated to any extent as a claim for universal
credit.

(2) 20The provision referred to in paragraph 1(1) includes provision, where a
claim for universal credit is made (or is treated as made) before the
appointed day, for an award on the claim to be made in respect of a period
before the appointed day (including provision as to the conditions of
entitlement for, and amount of, such an award).

25Claims after the appointed day

3 (1) The provision referred to in paragraph 1(1) includes—

(a) provision permanently or temporarily excluding the making of a
claim for universal credit after the appointed day by—

(i) a person to whom an existing benefit is awarded, or

(ii) 30a person who would be entitled to an existing benefit on
making a claim for it;

(b) provision temporarily excluding the making of a claim for universal
credit after the appointed day by any other person;

(c) provision excluding entitlement to universal credit temporarily or
35for a particular period;

(d) provision for a claim for universal credit made after the appointed
day to be treated to any extent as a claim for an existing benefit;

(e) provision for a claim for an existing benefit made after the appointed
day to be treated to any extent as a claim for universal credit.

(2) 40The provision referred to in paragraph 1(1) includes provision, where a
claim for universal credit is made (or is treated as made) after the appointed
day, for an award on the claim to be made in respect of a period before the

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appointed day (including provision as to the conditions of entitlement for,
and amount of, such an award).

Awards

4 (1) The provision referred to in paragraph 1(1) includes—

(a) 5provision for terminating an award of an existing benefit;

(b) provision for making an award of universal credit, with or without
application, to a person whose award of existing benefit is
terminated.

(2) The provision referred to in sub-paragraph (1)(b) includes—

(a) 10provision imposing requirements as to the procedure to be followed,
information to be supplied or assessments to be undergone in
relation to an award by virtue of that sub-paragraph or an
application for such an award;

(b) provision as to the consequences of failure to comply with any such
15requirement;

(c) provision as to the terms on which, and conditions subject to which,
such an award is made, including—

(i) provision temporarily or permanently disapplying, or
otherwise modifying, conditions of entitlement to universal
20credit in relation to the award;

(ii) provision temporarily or permanently disapplying, or
otherwise modifying, any requirement under this Part for a
person to be assessed in respect of capability for work or
work-related activity;

(d) 25provision as to the amount of such an award;

(e) provision that fulfilment of any condition relevant to entitlement to
an award of an existing benefit, or relevant to the amount of such an
award, is to be treated as fulfilment of an equivalent condition in
relation to universal credit.

(3) 30Provision under sub-paragraph (2)(d) may secure that where an award of
universal credit is made by virtue of sub-paragraph (1)(b)—

(a) the amount of the award is not less than the amount to which the
person would have been entitled under the terminated award, or is
not less than that amount by more than a prescribed amount;

(b) 35if the person to whom it is made ceases to be entitled to universal
credit for not more than a prescribed period, the gap in entitlement
is disregarded in calculating the amount of any new award of
universal credit.

Work-related requirements and sanctions

5 (1) 40The provision referred to in paragraph 1(1) includes—

(a) provision relating to the application of work-related requirements
for relevant benefits;

(b) provision relating to the application of sanctions.

(2) The provision referred to in sub-paragraph (1)(a) includes—

(a) 45provision that a claimant commitment for a relevant benefit is to be
treated as a claimant commitment for universal credit;

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(b) provision that a work-related requirement for a relevant benefit is
treated as a work-related requirement for universal credit;

(c) provision for anything done which is relevant to compliance with a
work-related requirement for a relevant benefit to be treated as done
5for the purposes of compliance with a work-related requirement for
universal credit;

(d) provision temporarily disapplying any provision of this Part in
relation to work-related requirements for universal credit.

(3) The provision referred to in sub-paragraph (1)(b) includes—

(a) 10provision for a sanction relevant to an award of a relevant benefit to
be applied to an award of universal credit;

(b) provision for anything done which is relevant to the application of a
sanction for a relevant benefit to be treated as done for the purposes
of the application of a sanction for universal credit;

(c) 15provision temporarily disapplying any provision of this Part in
relation to the application of sanctions.

(4) In this paragraph—

  • “relevant benefit” means—

    (a)

    jobseeker’s allowance,

    (b)

    20employment and support allowance, and

    (c)

    income support;

  • “work-related requirement” means—

    (a)

    for universal credit, a work-related requirement within the
    meaning of this Part;

    (b)

    25for jobseeker’s allowance, a requirement imposed—

    (i)

    by virtue of regulations under section 8 or 17A of the
    Jobseekers Act 1995,

    (ii)

    by a jobseeker’s direction (within the meaning of
    section 19A of that Act),

    (iii)

    30by virtue of regulations under section 2A, 2AA or 2D
    of the Social Security Administration Act 1992, or

    (iv)

    by a direction under section 2F of that Act;

    (c)

    for employment and support allowance, a requirement
    imposed—

    (i)

    35by virtue of regulations under section 8, 9, 11, 12 or 13
    of the Welfare Reform Act 2007,

    (ii)

    by a direction under section 15 of that Act,

    (iii)

    by virtue of regulations under section 2A, 2AA or 2D
    of the Social Security Administration Act 1992, or

    (iv)

    40by a direction under section 2F of that Act;

    (d)

    for income support, a requirement imposed—

    (i)

    by virtue of regulations under section 2A, 2AA or 2D
    of the Social Security Administration Act 1992, or

    (ii)

    by a direction under section 2F of that Act;

  • 45“sanction” means a reduction of benefit under—

    (a)

    section 26 or 27 above,

    (b)

    section 19, 19A or 19B of the Jobseekers Act 1995,

    (c)

    section 11, 12 or 13 of the Welfare Reform Act 2007, or

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    (d)

    section 2A, 2AA or 2D of the Social Security Administration
    Act 1992.

Tax credits

6 In relation to the replacement of working tax credit and child tax credit with
5universal credit, the provision referred to in paragraph 1(1) includes—

(a) provision modifying the application of the Tax Credits Act 2002 (or
of any provision made under it);

(b) provision for the purposes of recovery of overpayments of working
tax credit or child tax credit (including in particular provision for
10treating overpayments of working tax credit or child tax credit as if
they were overpayments of universal credit).

Supplementary

7 Regulations under paragraph 1(1) may secure the result that any gap in
entitlement to an existing benefit (or what would, but for the provisions of
15this Part, be a gap in entitlement to an existing benefit) is to be disregarded
for the purposes of provision under such regulations.

Section 48

SCHEDULE 7 Jobseeker’s allowance in interim period: consequential amendments

Jobseekers Act 1995 (c. 18)1995 (c. 18)

1 20The Jobseekers Act 1995 is amended as follows.

2 (1) Section 8 (attendance etc) is amended as follows.

(2) In subsection (1A)(a) (as originally enacted), for “the Secretary of State” there
is substituted “an employment officer”.

(3) In subsection (2), for paragraphs (a) to (c) there is substituted “provide for
25entitlement to a jobseeker’s allowance to cease at such time as may be
determined in accordance with any such regulations if, when a person fails
to comply with such regulations, that person (or, if that person is a member
of a joint-claim couple, either member of the couple) does not make
prescribed contact with an employment officer within a prescribed period of
30the failure.”

3 In section 16(3)(b) and 17(4) (in both places) for “good cause” there is
substituted “a good reason”.

4 In section 17A (employment schemes), in subsection (5)(c) for “jobseeker’s
agreement to which a person is a party” there is substituted “claimant
35commitment accepted by a person”.

5 Section 20 (exemptions from section 19) is amended as follows—

(a) in the heading, after “19” there is inserted “and 19A”;

(b) in subsection (1), for “prevent payment” there is substituted
“authorise reduction”;

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(c) in subsection (2), for “19” there is substituted “19A” and for “(5)”
there is substituted “(2)(c) to (g)”;

(d) in subsection (3), for “19(6)(b) or (d)” there is substituted “19(2)(b) or
(d)” and for “just cause” there is substituted “good reason”.

6 5Sections 20C and 20D (uncommenced provision relating to sanctions for
violent conduct etc) are repealed.

7 In section 22 (members of the forces), in subsection (2), for “section 19(6)(b)”
there is substituted “section 19(2)(b)”.

8 In section 35 (interpretation), in subsection (1), before the definition of
10“jobseeking period” there is inserted—

  • jobseeker’s direction” has the meaning given by section 19A;.

9 In section 36 (regulations and orders), after subsection (1) there is inserted—

(1A) Subsection (1) does not apply to an order under section 35(1) in
relation to employment officers.

10 (1) 15Schedule 1 (supplementary) is amended as follows.

(2) In paragraph 8(b), for “entered into a jobseeker’s agreement” there is
substituted “accepted a claimant commitment”.

(3) In paragraph 10, at the end there is inserted—

(6) References in sub-paragraphs (1) and (2) to an income-based
20jobseeker’s allowance include a payment by way of such an
allowance under section 19C.

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

11 In Schedule 3 to the Social Security Act 1998 (decisions against which an
appeal lies), in paragraph 8 and in the heading to that paragraph, for
25“jobseeker’s agreement” there is substituted “claimant commitment”.

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

12 (1) Section 8 of the Social Security Fraud Act 2001 is amended as follows.

(2) In subsection (2)—

(a) at the beginning there is inserted “Except in prescribed
30circumstances”;

(b) in paragraph (b), for sub-paragraph (i) there is substituted—

(i) is a person whose failure sanctionable under
section 19, 19A or 19B of the Jobseekers Act
1995 has given rise to a reduction under that
35section; or.

(3) Subsection (5) is repealed.

Welfare Reform Act 2009 (c. 24)2009 (c. 24)

13 The Welfare Reform Act 2009 is amended as follows.

14 In section 29(1) (victims of domestic violence), in sub-paragraph (3) of
40paragraph 8B inserted into Schedule 1 to the Jobseekers Act 1995—

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(a) for the first “entered into a jobseeker’s agreement” there is
substituted “accepted a claimant commitment”;

(b) for “9(10)” there is substituted “9(9)”;

(c) for “entered into a jobseeker’s agreement which is in force for” there
5is substituted “accepted a claimant commitment during”.

15 (1) Section 31 (well-being of children) is amended as follows.

(2) In subsection (1)—

(a) for “(the jobseeker’s agreement)” there is substituted “(as substituted
by section 44 of the Welfare Reform Act 2012 (the claimant
10commitment))”;

(b) in the inserted subsection (4A), for “preparing a jobseeker’s
agreement for a claimant” there is substituted “considering whether
to invite a claimant to accept a claimant commitment”.

16 (1) Section 32 (contracting out) is amended as follows.

(2) 15In subsection (2), in section 20E inserted into the Jobseekers Act 1995—

(a) for subsection (2)(a) and (b) there is substituted—

(a) any function under section 8 (attendance etc);

(b) any function under section 9 or 10 in relation to a
claimant commitment;;

(b) 20after subsection (2)(d) there is inserted—

(e) functions under section 19 or 19A;;

(c) in subsection (4), “or 17A” is repealed.

(3) In subsection (3), for paragraphs (a) to (d) there is substituted—

(a) section 8(1)(a), (1A) and (2);

(b) 25sections 9 and 10 (in all places);

(c) section 16(3)(b)(ii);

(d) sections 19 and 19A (in all places);.

Section 71

SCHEDULE 8 Social fund discretionary payments: consequential amendments

1 30The Social Security Administration Act 1992 is amended as follows.

2 In section 78(4) (recovery of funeral payments out of social fund), after
“Payments” there is inserted “out of the social fund”.

3 In section 79 (recovery of Northern Ireland payments), in paragraph (c), for
the words from “under subsection” to the end there is substituted “under
35section 71(8)”.

4 In Part 1 of Schedule 4 (persons employed in social security administration),
under the heading “Former officers”, after the entry for “A social fund
officer” there is inserted—

The social fund Commissioner.

40A social fund inspector.

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A member of any staff employed in connection with the social
fund.

Section 92

SCHEDULE 9 Personal independence payment: amendments

5Transport Act 1982 (c. 49)Transport Act 1982 (c. 49)

1 In section 70 of the Transport Act 1982 (payments in respect of applicants for
exemption from wearing seat belts), in subsection (2), after paragraph (a)
there is inserted—

(ab) those in receipt of personal independence payment;.

10Child Support Act 1991 (c. 48)Child Support Act 1991 (c. 48)

2 In section 8 of the Child Support Act 1991 (role of courts with respect to
maintenance for children), in subsection (8)(a), at the beginning there is
inserted “an allowance under Part 4 of the Welfare Reform Act 2012
(personal independence payment) or”.

15Social Security Contributions and Benefits Act 1992 (c. 4)Social Security Contributions and Benefits Act 1992 (c. 4)

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

4 In section 30B (incapacity benefit: rate), in subsection (4), after paragraph (a)
there is inserted—

(aa) 20is entitled to the daily living component of personal
independence payment at a rate designated by regulations
under this paragraph, or.

5 (1) Section 64 (entitlement to attendance allowance) is amended as follows.

(2) In subsection (1), for “the care component of a disability living allowance”
25there is substituted “an allowance within subsection (1A)”.

(3) After subsection (1) there is inserted—

(1A) The following allowances are within this subsection—

(a) personal independence payment;

(b) the care component of a disability living allowance.

6 30In section 150 (Christmas bonus for pensioners: interpretation), in
subsection (1), after paragraph (ba) there is inserted—

(bb) personal independence payment;.

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

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

8 (1) 35Section 1 (entitlement to benefit dependent on claim) is amended as follows.

(2) In subsection (3)—

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

(za) for personal independence payment by virtue of
section 83 of the Welfare Reform Act 2012; or;

(b) paragraph (b) and the “or” preceding it is repealed.

(3) 5In subsection (4), after paragraph (ac) there is inserted—

(ad) personal independence payment.

9 In section 5(2) (regulations about claims for and payments of benefit), after
paragraph (ac) there is inserted—

(ad) personal independence payment;.

10 10In section 71(11) (overpayments), after paragraph (ac) there is inserted—

(ad) personal independence payment;.

11 In section 73 (overlapping benefits - general), after subsection (5) there is
inserted—

(6) Personal independence payment is to be treated for the purposes of
15this section as if it were benefit as defined in section 122 of the
Contributions and Benefits Act.

12 In section 121DA (interpretation of Part 6), in subsection (1), after paragraph
(hj) (inserted by Schedule 2 to this Act) there is inserted—

(hk) Part 4 of that Act;.

13 20In section 122B (supply of other government information for fraud
prevention and verification), in subsection (3)(b), after “Welfare Reform Act
2012” (inserted by Schedule 2 to this Act) there is inserted “, Part 4 of that
Act”.

14 In section 122C (supply of information to authorities administering benefit),
25in subsection (6)(b), after “Welfare Reform Act 2007” there is inserted “, Part
4 of the Welfare Reform Act 2012”.

15 In section 124 (age, death and marriage), in subsection (1), after paragraph
(ad) (inserted by Schedule 2 to this Act) there is inserted—

(ae) of the provisions of Part 4 of that Act;.

16 30In section 125 (regulations as to notification of deaths), in subsection (1),
after “Welfare Reform Act 2012” (inserted by Schedule 2 to this Act) there is
inserted “, Part 4 of that Act”.

17 In section 150 (uprating)—

(a) in subsection (1), after paragraph (n) (inserted by Schedule 2 to this
35Act) there is inserted—

(o) specified in regulations under section 79(3) or 80(3) of
that Act;;

(b) in subsection (3)(b), for “or (g)” there is substituted “, (g) or (o)”.

18 In section 159 (effect of alteration in the component rates of income support),
40in subsection (5), in the definition of “benefit income”, after “income
support;” there is inserted—

(aa) personal independence payment;.

19 In section 159A (effect of alteration of rates of a jobseeker’s allowance), in
subsection (5), in the definition of “benefit income”, after “Contributions and