Welfare Reform Bill (HL Bill 124)

(a) in subsection (1), at the end there is inserted “and

“(e) at the commencement of the week referred to in
paragraph (a) above she was entitled to engage in the
employment referred to in paragraph (b) above.”;

(b) 5in subsection (3), before paragraph (a) there is inserted—

“(za) for circumstances in which subsection (1)(e) above does
not apply;”.

(3) In section 164 (statutory maternity pay)—

(a) in subsection (2), after paragraph (a) there is inserted—

“(aa) 10that at the end of the week immediately preceding that
14th week she was entitled to be in that employment;”;

(b) in subsection (9), after paragraph (d) there is inserted—

“(da) provide for circumstances in which subsection (2)(aa)
above does not apply;”.

(4) 15In section 171ZA (ordinary statutory paternity pay: birth)—

(a) in subsection (2), after paragraph (b) there is inserted—

“(ba) that at the end of the relevant week he was entitled to be
in that employment;”;

(ba) after subsection (3) there is inserted—

“(3A) 20Regulations may provide for circumstances in which subsection
(2)(ba) above does not apply.”

(5) In section 171ZB (ordinary statutory paternity pay: adoption)—

(a) in subsection (2), after paragraph (b) there is inserted—

“(ba) that at the end of the relevant week he was entitled to be
25in that employment;”;

(b) after subsection (3) there is inserted—

“(3A) Regulations may provide for circumstances in which subsection
(2)(ba) above does not apply.”

(6) In section 171ZEA (additional statutory paternity pay: birth)—

(a) 30in subsection (2), after paragraph (b) there is inserted—

“(ba) that at the end of that prescribed week the claimant was
entitled to be in that employment;”;

(b) in subsection (3), before paragraph (a) there is inserted—

“(za) exclude the application of the condition mentioned in
35paragraph (ba) of subsection (2) in prescribed
circumstances,”.

(7) In section 171ZEB (additional statutory paternity pay: adoption)—

(a) in subsection (2), after paragraph (b) there is inserted—

“(ba) that at the end of that prescribed week the claimant was
40entitled to be in that employment;”;

(b) in subsection (3), before paragraph (a) there is inserted—

“(za) exclude the application of the condition mentioned in
paragraph (ba) of subsection (2) in prescribed
circumstances,”.

(8) 45In section 171ZL (statutory adoption pay: entitlement)—

(a) in subsection (2), after paragraph (b) there is inserted—

“(ba) that at the end of the relevant week he was entitled to be
in that employment;”;

(b) in subsection (3), after “(2)(b)” there is inserted “, (ba)”;

(c) 5in subsection (8), before paragraph (a) there is inserted—

“(za) exclude the application of subsection (2)(ba) above in
prescribed circumstances;”.

(9) After section 173 there is inserted—

“173A Entitlement to be in employment

(1) 10For the purposes of this Act a person is entitled to engage in or to be in
any employment if (and only if)—

(a) the person does not under the Immigration Act 1971 require
leave to enter or remain in the United Kingdom, or

(b) the person has been granted such leave and—

(i) 15the leave is not invalid,

(ii) the leave has not for any reason ceased to have effect,
and

(iii) the leave is not subject to a condition preventing the
person from accepting that employment.”

(10) 20In 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
on the relevant date.”;

(b) 25at the end there is inserted—

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

Part 3 Other benefit changes

30Industrial injuries benefit

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

(b) 35in 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) in section 109(5)(b) and (6)(a), the words “and developed after 4th July
401948”.

(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) The Secretary of State may make regulations—

(a) 5for, 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) for claims for the payment of such compensation or benefit to be treated
10as 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) A statutory instrument containing regulations under this section is subject to
15annulment in pursuance of a resolution of either House of Parliament.

66 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) In entry 1 (which relates to disablement pension (weekly rates)), in the second
20column (“Rate”)—

(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
25payable 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.

67 Trainees

(1) After section 95 of the Social Security Contributions and Benefits Act 1992 there
30is 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
35prescribed 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
40same 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) The Secretary of State may make regulations—

(a) for, and in relation to, the payment of industrial injuries benefit to
5persons to whom, before the commencement of this section, payments
were payable under section 11(3) of the Employment and Training Act
1973;

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

(4) 10In 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) A statutory instrument containing regulations under this section is subject to
annulment in pursuance of a resolution of either House of Parliament.

68 15Restriction 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
is inserted—

“(1A) No claim may be made for industrial death benefit after the coming
20into force of this sub-paragraph.”

69 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) 25In section 30 of that Act (effect of decision), in subsection (1), the words from
“(given” to “otherwise)” are repealed.

Housing benefit

70 Housing benefit: determination of appropriate maximum

(1) Section 130A of the Social Security Contributions and Benefits Act 1992
30(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,
35provide 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) The 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
5provide for that amount to be the amount of a rent officer
determination).”

(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);”.

10Social fund

71 Ending 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
15fund Commissioner is abolished.

(3) Payments 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
20mentioned in section 138(1)(b) but which are not so applied in
consequence of subsection (1);

(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) 25The payments are to be such as the Secretary of State determines in accordance
with 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) 30The Secretary of State may by order provide for the transfer of property, rights
and 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) 35make such supplementary, incidental, consequential or transitional
provision 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) 40Schedule 8 contains consequential amendments.

72 Purposes 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) in the case of payments by way of budgeting loan, those
5needs for which provision is made by paragraph (a),”.

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

“(da) 10that 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
determined by applying, or by a method that includes applying, a
15multiplier 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
so much of any relevant allocation under section 168(1) to (4) of the
20Administration Act as is available for making payments.”

74 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.

25State pension credit

75 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) 30the 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
35inserted—

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

76 State pension credit: capital limit

(1) In section 1 of the State Pension Credit Act 2002 (entitlement), in subsection
40(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
5paragraph (a) there is inserted—

“(za) section 1(2)(d),”.

Working tax credit

77 Calculation of working tax credit

(1) Step 5 in regulation 7(3) of the 2002 Regulations has effect in relation to awards
10of 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
15relevant 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
  20Determination of Rates) Regulations 2002 (S.I. 2002/2008S.I. 2002/2008);

• “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 25Personal independence payment

Personal independence payment

78 Personal independence payment

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

(2) 30A person’s entitlement to personal independence payment may be an
entitlement to—

(a) the daily living component (see section 79);

(b) the mobility component (see section 80); or

(c) both those components.

(3) 35A person is not entitled to personal independence payment unless the person
meets prescribed conditions relating to residence and presence in Great
Britain.

79 Daily living component

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

(a) the 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) 5the person’s ability to carry out daily living activities is severely limited
by 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) 10“the enhanced rate” means such weekly rate as may be prescribed.

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

(5) See sections 81 and 82 for provision about determining—

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

(b) 15whether a person meets “the required period condition” for the
purposes 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
83 (persons who are terminally ill) and 84 (persons of pensionable age)).

80 20Mobility 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) the person’s ability to carry out mobility activities is limited by the
25person’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
subsection;

(b) 30the 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) “the standard rate” means such weekly rate as may be prescribed;

(b) 35“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 81 and 82 for provision about determining—

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

(b) 40whether 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 83
and 84).

(7) Regulations may provide that a person is not entitled to the mobility
5component 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
mobility.

81 Ability to carry out daily living activities or mobility activities

(1) 10For 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
by the person’s physical or mental condition;

(b) whether a person’s ability to carry out daily living activities is severely
15limited 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) whether a person’s ability to carry out mobility activities is severely
limited by the person’s physical or mental condition.

(2) 20Regulations must make provision for determining, for the purposes of each of
sections 79(1) and (2) and 80(1) and (2), whether a person meets “the required
period condition” (see further section 82).

(3) Regulations under this section—

(a) must provide for the questions mentioned in subsections (1) and (2) to
25be 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) may make provision about matters which are, or are not, to be taken
into account in assessing a person.

(4) 30The 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) about 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
35approved 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) The regulations may include provision—

(a) for a negative determination to be treated as made if a person fails
40without 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) about 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) 45In subsection (5)(a) a “negative determination” means a determination that a
person does not meet the requirements of—

(a) section 79(1)(a) and (b) or (2)(a) and (b) (daily living component);

(b) section 80(1)(a) to (c) or (2)(a) to (c) (mobility component).

82 Required period condition: further provision

(1) Regulations under section 81(2) must provide for the question of whether a
person meets “the required period condition” for the purposes of section 79(1)
5or (2) or 80(1) or (2) to be determined by reference to—

(a) whether, as respects every time in the previous 3 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) 10whether, as respects every time in the next 9 months, it is likely that if
the 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) 15in relation to section 79(1) or (2), the person’s ability to carry out daily
living activities;

(b) in relation to section 80(1) or (2), the person’s ability to carry out
mobility activities.

(3) In subsection (1)—

(a) 20“assessed” means assessed in accordance with regulations under
section 81;

(b) “the previous 3 months” means the 3 months ending with the
prescribed date;

(c) “the next 9 months” means the 9 months beginning with the day after
25that date.

(4) Regulations under section 81(2) may provide that in prescribed cases the
question of whether a person meets “the required period condition” for the
purposes of section 79(1) or (2) or 80(1) or (2)—

(a) is not to be determined in accordance with the provision made by
30virtue of subsections (1) to (3) above;

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

Entitlement and payability: further provision

83 Terminal illness

(1) 35This section applies to a person who—

(a) is terminally ill; and

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

(2) A person to whom this section applies is entitled to the daily living component
40at the enhanced rate (and accordingly section 79(1) and (2) do not apply to such
a person).

(3) Section 80(1)(c) and (2)(c) (required period condition for mobility component)
do not apply to a person to whom this section applies.