Welfare Reform and Work Bill (HL Bill 69)

Welfare Reform and Work BillPage 10

(b) provide for the Secretary of State to issue notices under paragraph (a)
specifying different times for different persons or descriptions of
person;

(c) make provision about the issuing of notices under paragraph (a),
5including provision for the Secretary of State to issue notices to
authorities administering housing benefit that have effect in relation to
persons specified, or persons of a description specified, in the notices.

(10) Section 176 of the Social Security Administration Act 1992 (consultation with
representative organisations) does not apply in relation to regulations under
10subsection (8).

(11) Regulations under subsection (8) must be made by statutory instrument.

(12) A statutory instrument containing regulations under subsection (8) is subject
to annulment in pursuance of a resolution of either House of Parliament.

8 Review of benefit cap

(1) 15After section 96 of the Welfare Reform Act 2012 insert—

96A Benefit cap: review

(1) The Secretary of State must at least once in each Parliament review the
sums specified in section 96(5A) to determine whether it is appropriate
to increase or decrease any one or more of those sums.

(2) 20The Secretary of State may, at any other time the Secretary of State
considers appropriate, review the sums specified in section 96(5A) to
determine whether it is appropriate to increase or decrease any one or
more of those sums.

(3) In carrying out a review, the Secretary of State must take into account—

(a) 25the national economic situation, and

(b) any other matters that the Secretary of State considers relevant.

(4) After carrying out a review, the Secretary of State may, if the Secretary
of State considers it appropriate, by regulations amend section 96(5A)
so as to increase or decrease any one or more of the sums specified in
30section 96(5A).

(5) Regulations under subsection (4) may provide for amendments of
section 96(5A) to come into force—

(a) on different days for different areas;

(b) on different days for different cases or purposes.

(6) 35Regulations under subsection (4) may make such transitional or
transitory provision or savings as the Secretary of State considers
necessary or expedient in connection with the coming into force of any
amendment made by regulations under subsection (4).

(7) Regulations under subsection (6) may in particular—

(a) 40provide for section 96(5A) to have effect as if the amendments
made by regulations under subsection (4) had not been made,
in relation to such persons or descriptions of persons as are
specified in the regulations or generally, until a time or times
specified in a notice issued by the Secretary of State;

Welfare Reform and Work BillPage 11

(b) provide for the Secretary of State to issue notices under
paragraph (a) specifying different times for different persons or
descriptions of person;

(c) make provision about the issuing of notices under paragraph
5(a), including provision for the Secretary of State to issue notices
to authorities administering housing benefit that have effect in
relation to persons specified, or persons of a description
specified, in the notices.

(8) Section 176 of the Social Security Administration Act 1992 (consultation
10with representative organisations) does not apply in relation to
regulations under subsection (4).

(9) If an early parliamentary general election is to take place in accordance
with section 2 of the Fixed-term Parliaments Act 2011, the duty in
subsection (1) is to be disregarded.”

(2) 15Section 97 of the Welfare Reform Act 2012 (benefit cap: supplementary) is
amended as follows.

(3) In subsection (1), after “96” insert “or 96A”.

(4) In subsection (2), after “96” insert “or 96A”.

(5) After subsection (3) insert—

(3A) 20A statutory instrument containing regulations under section 96A(4)
that decreases a sum specified in section 96(5A) may not be made
unless a draft of the instrument has been laid before, and approved by
a resolution of, each House of Parliament.”

(6) In subsection (4) (procedure for other regulations), after “96” insert “or 96A”.

(7) 25Subsection (5) is omitted.

(8) In section 150 of the Social Security Administration Act 1992 (annual up-rating
of benefits), subsection (7A) (review of the benefit cap) is omitted.

9 Freeze of certain social security benefits for four tax years

(1) For each of the tax years ending with 5 April 2017, 5 April 2018, 5 April 2019
30and 5 April 2020, the amount of each of the relevant sums is to remain the same
as it was in the tax year ending with 5 April 2016.

(2) For each of the tax years ending with 5 April 2017, 5 April 2018, 5 April 2019
and 5 April 2020, the rates of child benefit are to remain the same as they were
in the tax year ending with 5 April 2016.

(3) 35A review under section 150(1) of the Social Security Administration Act 1992
(review of whether certain benefits have retained their value) in the tax years
ending with 5 April 2016, 5 April 2017, 5 April 2018 and 5 April 2019 need not
cover any of the relevant sums or the rates of child benefit.

(4) A draft up-rating order which is laid before Parliament under section 150(2) of
40that Act in the tax years ending with 5 April 2016, 5 April 2017, 5 April 2018
and 5 April 2019 need not cover any of the relevant sums or the rates of child
benefit.

Welfare Reform and Work BillPage 12

(5) In each of the tax years ending with 5 April 2016, 5 April 2017, 5 April 2018 and
5 April 2019, the Secretary of State must lay before Parliament a copy of a
report by the Government Actuary or the Deputy Government Actuary giving
that Actuary’s opinion on the likely effect of the provision in subsection (1) on
5the National Insurance Fund in the following tax year, so far as that provision
relates to any sums payable out of the Fund.

(6) In this section—

  • “child benefit”—

    (a)

    in relation to England and Wales and Scotland, has the same
    10meaning as in Part 9 of the Social Security Contributions and
    Benefits Act 1992;

    (b)

    in relation to Northern Ireland, has the same meaning as in Part
    9 of the Social Security Contributions and Benefits (Northern
    Ireland) Act 1992;

  • 15“the relevant sums” means the sums described in paragraph 1 of Schedule
    1;

  • “tax year” means a period beginning with 6 April in one year and ending
    with 5 April in the next.

10 Freeze of certain tax credit amounts for four tax years

(1) 20For each of the tax years ending with 5 April 2017, 5 April 2018, 5 April 2019
and 5 April 2020, each of the relevant amounts is to remain the same as it was
in the tax year ending with 5 April 2016.

(2) A review under section 41 of the Tax Credits Act 2002 (review of whether
certain tax credit amounts have retained their value) in the tax years ending
25with 5 April 2016, 5 April 2017, 5 April 2018 and 5 April 2019 need not cover
any of the relevant amounts.

(3) In this section—

  • “the relevant amounts” means the amounts described in paragraph 2 of
    Schedule 1;

  • 30“tax year” means a period beginning with 6 April in one year and ending
    with 5 April in the next.

11 Changes to child tax credit

(1) Section 9 of the Tax Credits Act 2002 (maximum rate of child tax credit) is
amended as follows.

(2) 35In subsection (2)—

(a) in paragraph (a), for “all persons entitled to child tax credit, and”
substitute “every person or persons entitled to child tax credit who is,
or either or both of whom is or are, responsible for a child or qualifying
young person who was born before 6 April 2017,”;

(b) 40at the end insert , and

(c) an element which is to be included in the case of a child
or qualifying young person who is disabled or severely
disabled.”

(3) In subsection (3), at the end insert “and that specified in paragraph (c) of that
45subsection is to be known as the disability element of child tax credit”.

Welfare Reform and Work BillPage 13

(4) After subsection (3) insert—

(3A) Subsection (3B) applies in the case of a person or persons entitled to
child tax credit where the person is, or either or both of them is or are,
responsible for a child or qualifying young person born on or after 6
5April 2017.

(3B) The prescribed manner of determination in relation to the person or
persons must not include an individual element of child tax credit in
respect of the child or qualifying young person unless—

(a) he is (or they are) claiming the individual element of child tax
10credit for no more than one other child or qualifying young
person, or

(b) a prescribed exception applies.”

(5) In subsection (5), for paragraph (c) substitute—

(c) may include provision for the amount of the disability element
15of child tax credit to vary according to whether the child or
qualifying young person is disabled or severely disabled.”

12 Changes to child element of universal credit

(1) Section 10 of the Welfare Reform Act 2012 (responsibility for children and
young persons) is amended as set out in subsections (2) to (4).

(2) 20After subsection (1) insert—

(1A) But the amount mentioned in subsection (1) is to be available in respect
of a maximum of two persons who are either children or qualifying
young persons for whom a claimant is responsible.”

(3) In subsection (2)—

(a) 25for “if such a” substitute “for each”;

(b) after “person” insert “for whom a claimant is responsible who”.

(4) In subsection (4), at the end insert “or (1A)”.

(5) In the Universal Credit Regulations 2013 (S.I. 2013/376S.I. 2013/376)—

(a) in regulation 24(1) (the child element), after “responsible” insert “and in
30respect of whom an amount may be included under section 10”;

(b) in regulation 36 (table showing amount of elements), in the table—

(i) omit the row under “Child element” showing the amount for
first child or qualifying young person;

(ii) in the row under “Child element” showing the amount for
35second and each subsequent child or qualifying young person,
for “second and each subsequent” substitute “each”.

(6) The Secretary of State may by regulations make such transitional or transitory
provision or savings as the Secretary of State considers necessary or expedient
in connection with the coming into force of this section.

(7) 40Regulations under subsection (6) must be made by statutory instrument.

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

Welfare Reform and Work BillPage 14

13 Employment and support allowance: work-related activity component

(1) Part 1 of the Welfare Reform Act 2007 (employment and support allowance) is
amended as follows.

(2) In section 2 (amount of contributory allowance)—

(a) 5in subsection (1)(b), omit “or the work-related activity component”;

(b) omit subsection (3);

(c) in subsection (4), in each of paragraphs (a), (b) and (c), omit “or (3)”.

(3) In section 4 (amount of income-related allowance) (so far as it remains in
force)—

(a) 10in subsection (2)(b), omit “or the work-related activity component”;

(b) omit subsection (5);

(c) in subsection (6), in each of paragraphs (a), (b) and (c), omit “or (5)”.

(4) The Secretary of State may by regulations make such transitional or transitory
provision or savings as the Secretary of State considers necessary or expedient
15in connection with the coming into force of subsections (1) to (3).

(5) Regulations under subsection (4) may in particular make provision about
including a work-related activity component in an award of employment and
support allowance that is converted under paragraph 7 of Schedule 4 to the
Welfare Reform Act 2007 from an award of incapacity benefit, severe
20disablement allowance or income support after the coming into force of
subsections (1) to (3).

(6) Regulations under this section must be made by statutory instrument.

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

14 25Universal credit: limited capability for work element

In section 12(2) of the Welfare Reform Act 2012 (universal credit: particular
needs or circumstances), omit paragraph (a).

15 Universal credit: work-related requirements

(1) In Chapter 2 of Part 1 of the Welfare Reform Act 2012 (claimant
30responsibilities)—

(a) in section 20(1)(a) (claimants subject to work-focused interview
requirement only), for the words from “at least 1” to “3)” substitute “1”;

(b) in section 21(1) (claimants subject to work preparation requirement),
after paragraph (a) (but before the “or” immediately after it) insert—

(aa) 35the claimant is the responsible carer for a child who is
aged 2,”;

(c) omit section 21(5) (claimants of prescribed description to include
responsible carers of children aged 3 or 4).

(2) In the Universal Credit Regulations 2013 (S.I. 2013/376S.I. 2013/376)—

(a) 40in regulation 91 (claimants subject to work-focused interview
requirement only), omit paragraph (1);

(b) regulation 91A (claimants subject to work preparation requirement) is
revoked.

Welfare Reform and Work BillPage 15

Loans for mortgage interest etc

16 Loans for mortgage interest etc

(1) The Secretary of State may by regulations provide for loans to be made in
respect of a person’s liability to make owner-occupier payments in respect of
5accommodation occupied by the person as the person’s home.

(2) The regulations may make provision about eligibility to receive a loan under
the regulations.

(3) Regulations under subsection (2) may in particular require that a person—

(a) is entitled to receive income support, income-based jobseeker’s
10allowance, income-related employment and support allowance, state
pension credit or universal credit;

(b) has received such a benefit for a period prescribed by the regulations.

(4) The regulations may make provision about the liabilities in respect of which a
loan under the regulations may be made.

(5) 15Regulations under subsection (4) may in particular provide that a loan under
the regulations may only be made if, and to the extent that, a person’s liability
to make owner-occupier payments was incurred for purposes prescribed by
the regulations.

(6) Regulations under subsection (4) may in particular make provision about—

(a) 20determining or calculating the amount of a person’s liabilities;

(b) the maximum amount of a person’s liabilities in respect of which a loan
under the regulations may be made.

(7) The regulations may—

(a) make provision about determining or calculating the amount that may
25be paid by way of loan under the regulations;

(b) require that a loan under the regulations be secured by a mortgage of
or charge over a legal or beneficial interest in land or, in Scotland, by a
heritable security.

(8) The regulations may define “owner-occupier payment”.

(9) 30Regulations under this section may make different provision for different
purposes.

(10) Regulations under this section must be made by statutory instrument.

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

17 35Section 16: further provision

(1) This section makes further provision about regulations under section 16.

(2) The regulations may make provision about—

(a) circumstances in which a person is to be treated as liable or not liable to
make owner-occupier payments;

(b) 40circumstances in which a person is to be treated as occupying or not
occupying particular accommodation as a home.

Welfare Reform and Work BillPage 16

(3) The regulations may include—

(a) provision about applying for a loan;

(b) provision requiring a person to satisfy requirements prescribed by the
regulations before a loan may be made under the regulations, including
5requirements about receiving financial advice;

(c) provision about entering into an agreement (which may contain such
terms and conditions as the Secretary of State thinks fit, subject to what
may be provided in the regulations);

(d) provision about the time when, and manner in which, a loan must be
10repaid;

(e) provision about other terms upon which a loan is made;

(f) provision about the payment of interest, including provision
prescribing or providing for the determination of the rate of interest;

(g) provision enabling administrative costs to be charged;

(h) 15provision about adding administrative costs to the amount of a loan;

(i) provision about accepting substituted security.

(4) The regulations may make provision—

(a) requiring that, in circumstances prescribed by the regulations, money
lent in respect of a person’s liability to make owner-occupier
20payments—

(i) is paid directly to the qualifying lender;

(ii) is applied by the qualifying lender towards discharging the
person’s liability to make owner-occupier payments;

(b) for the costs of administering the making of payments to qualifying
25lenders to be defrayed, in whole or in part, at the expense of the
qualifying lenders, whether by requiring them to pay fees prescribed
by the regulations, by deducting and retaining such part as may be
prescribed by the regulations of the amounts that would otherwise be
paid to them or otherwise;

(c) 30for requiring a qualifying lender, in a case where by virtue of paragraph
(b) the amount paid to the lender is less than it would otherwise have
been, to credit against the liability in relation to which the amount is
paid the amount of the difference (in addition to the payment actually
made);

(d) 35for enabling a body which, or person who, would otherwise be a
qualifying lender to elect not to be regarded as a qualifying lender for
the purposes of this section (other than this paragraph);

(e) for the recovery from any body or person—

(i) of any sums paid to that body or person by way of payment
40under the regulations that ought not to have been so paid;

(ii) of any fees or other sums due from that body or person by
virtue of paragraph (b);

(f) for cases where the same person is liable to make owner-occupier
payments under more than one agreement to make such payments.

(5) 45The regulations may provide for the Secretary of State to make arrangements
with another person for the exercise of functions under the regulations.

(6) The regulations may include—

(a) provision requiring information and documents to be provided;

(b) provision authorising the disclosure of information.

Welfare Reform and Work BillPage 17

(7) The bodies and persons who are “qualifying lenders” for the purposes of this
section are—

(a) a deposit taker;

(b) an insurer;

(c) 5a county council, a county borough council, a district council, a London
Borough Council, the Common Council of the City of London or the
Council of the Isles of Scilly;

(d) a council constituted under section 2 of the Local Government etc.
(Scotland) Act 1994;

(e) 10a new town corporation;

(f) other bodies or persons prescribed by regulations under section 16.

(8) In this section—

  • “deposit taker” means—

    (a)

    a person who has permission under Part 4A of the Financial
    15Services and Markets Act 2000 to accept deposits, or

    (b)

    an EEA firm of the kind mentioned in paragraph 5(b) of
    Schedule 3 to that Act which has permission under paragraph
    15 of that Schedule (as a result of qualifying for authorisation
    under paragraph 12 of that Schedule) to accept deposits;

  • 20“insurer” means—

    (a)

    a person who has permission under Part 4A of the Financial
    Services and Markets Act 2000 to effect and carry out contracts
    of insurance, or

    (b)

    an EEA firm of the kind mentioned in paragraph 5(d) of
    25Schedule 3 to that Act which has permission under paragraph
    15 of that Schedule (as a result of qualifying for authorisation
    under paragraph 12 of that Schedule) to effect and carry out
    contracts of insurance.

(9) The definitions of “deposit taker” and ‘insurer” in this section must be read
30with—

(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section;

(c) Schedule 2 to that Act.

18 Consequential amendments

(1) 35Section 15A of the Social Security Administration Act 1992 (payment out of
benefit of sums in respect of mortgage interest) is repealed.

(2) In section 3A of the State Pension Credit Act 2002 (housing credit), in
subsection (5)(a), omit the words from “(and,” to “payments)”.

(3) In section 11 of the Welfare Reform Act 2012 (universal credit: amount in
40respect of housing costs), in subsection (3)(a), omit the words from “(and,” to
“payments)”.

(4) The following provisions are repealed—

(a) in the Social Security (Mortgage Interest Payments) Act 1992—

(i) section 1;

(ii) 45Schedule 1;

(b) in the Jobseekers Act 1995, paragraph 40(3)(b) and (4) of Schedule 2;

Welfare Reform and Work BillPage 18

(c) in the State Pension Credit Act 2002, paragraph 9 of Schedule 2;

(d) in the Civil Partnership Act 2004, paragraph 57 of Schedule 24;

(e) in the Welfare Reform Act 2007, paragraph 10(5) of Schedule 3;

(f) in the Welfare Reform Act 2012—

(i) 5in Schedule 2, paragraph 6;

(ii) in Schedule 4, paragraph 11;

(g) in the Financial Services Act 2012, paragraph 74(2) of Schedule 18.

19 Transitional provision

(1) Regulations made by the Secretary of State may make such transitional or
10transitory provision or savings as the Secretary of State considers necessary or
expedient in connection with the coming into force of sections 16 to 18.

(2) The regulations may include provision for temporarily excluding the making
of a loan under regulations under section 16 after the coming into force of
sections 16 to 18.

(3) 15Regulations under subsection (2) may in particular—

(a) provide for a temporary exclusion to continue until a time or times
specified in a notice issued by the Secretary of State;

(b) enable the Secretary of State to issue notices under paragraph (a)
specifying different times for different persons or descriptions of
20person.

(4) The regulations may include provision for enabling assistance with payments
in respect of accommodation occupied as a home to be given by means of a
qualifying benefit after the coming into force of sections 16 to 18 (including
where the making of loans is temporarily excluded).

(5) 25Regulations under subsection (4) may in particular—

(a) provide for legislation that has been repealed or revoked to be treated
as having effect;

(b) provide for assistance by means of a qualifying benefit to continue until
a time or times specified in a notice issued by the Secretary of State;

(c) 30enable the Secretary of State to issue notices under paragraph (b)
specifying different times for different persons or descriptions of
person.

(6) In this section “qualifying benefit” means income support, income-based
jobseeker’s allowance, income-related employment and support allowance,
35state pension credit or universal credit.

(7) Regulations under this section may make different provision for different
areas, cases or purposes.

(8) Regulations under this section must be made by statutory instrument.

(9) A statutory instrument containing regulations under this section is subject to
40annulment in pursuance of a resolution of either House of Parliament.

Welfare Reform and Work BillPage 19

Social security administration

20 Expenses of paying sums in respect of vehicle hire etc

In the Social Security Administration Act 1992, after section 15A insert—

“Expenses in respect of vehicle hire etc.

15B 5Expenses of paying sums in respect of vehicle hire etc.

(1) This section applies where—

(a) a relevant benefit component is payable in respect of a person
(“the beneficiary”),

(b) an agreement has been entered into by or on behalf of the
10beneficiary with a relevant provider for the lease or hire
purchase of a motor vehicle, and

(c) by virtue of regulations under section 5(1), the Secretary of State
pays all or part of the relevant benefit component to the relevant
provider for the purpose of discharging, in whole or in part, an
15obligation of the beneficiary under the agreement.

(2) Regulations may make provision—

(a) for the expenses of the Secretary of State in administering the
making of payments to relevant providers to be defrayed, in
whole or in part, at the expense of relevant providers, whether
20by requiring them to pay prescribed fees or by deducting and
retaining a prescribed part of the payments that would
otherwise be made to them or by such other method as may be
prescribed;

(b) for the recovery from a relevant provider of any fees or other
25sums due from that provider under paragraph (a).

(3) In this section—

  • “relevant benefit component” means—

    (a)

    the mobility component of disability living allowance, if
    it is payable at the higher rate (see section 73(11)(a) of
    30the Social Security Contributions and Benefits Act 1992),
    or

    (b)

    the mobility component of personal independence
    payment, if it is payable at the enhanced rate (see section
    79(2) of the Welfare Reform Act 2012);

  • 35“relevant provider” means a person whose business consists of or
    includes the supply by way of lease or hire purchase of motor
    vehicles to persons in respect of whom a relevant benefit
    component is payable.”

Social housing rents

21 40Reduction in social housing rents

(1) In relation to each relevant year, registered providers of social housing must
secure that the amount of rent payable in respect of that relevant year by a
tenant of their social housing in England is at least 1% less than the amount of
rent that was payable by the tenant in respect of the preceding 12 months.