Welfare Reform and Work Bill (HL Bill 92)

Welfare Reform and Work BillPage 10

(j)

jobseeker’s allowance (see section 1 of the Jobseekers
Act 1995), including income-based jobseeker’s
allowance (as defined in section 1(4) of the Jobseekers
Act 1995),

(k)

5maternity allowance under section 35 or 35B of the
Social Security Contributions and Benefits Act 1992,

(l)

severe disablement allowance (see section 68 of the
Social Security Contributions and Benefits Act 1992),

(m)

universal credit,

(n)

10widow’s pension (see section 38 of the Social Security
Contributions and Benefits Act 1992),

(o)

widowed mother’s allowance (see section 37 of the
Social Security Contributions and Benefits Act 1992), or

(p)

widowed parent’s allowance (see section 39A of the
15Social Security Contributions and Benefits Act 1992).”

(5) Subsection (11) (benefits that regulations may not prescribe as welfare benefits)
is omitted.

(6) In section 97 of the Welfare Reform Act 2012 (benefit cap: supplementary)—

(a) subsection (3) (procedure for first regulations under section 96) is
20omitted;

(b) in subsection (4), omit “other”.

(7) Paragraph 52 of Schedule 12 to the Pensions Act 2014 is omitted.

(8) Regulations made by the Secretary of State may make such transitional or
transitory provision or savings as the Secretary of State considers necessary or
25expedient in connection with the coming into force of subsections (1) to (6).

(9) Regulations under subsection (8) may in particular—

(a) provide for section 96 to have effect as if the amendments made by
subsections (2) to (5) and (7) had not been made, in relation to such
persons or descriptions of persons as are specified in the regulations or
30generally, until a time or times specified in a notice issued by the
Secretary of State;

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

(c) 35make provision about the issuing of notices under paragraph (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.

(10) Section 176 of the Social Security Administration Act 1992 (consultation with
40representative organisations) does not apply in relation to regulations under
subsection (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.

Welfare Reform and Work BillPage 11

9 Review of benefit cap

(1) After 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
5sums specified in section 96(5A) to determine whether it is appropriate
to increase or decrease any one or more of those sums.

(2) The 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
10more of those sums.

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

(a) the 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
15of 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
section 96(5A).

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

(a) 20on different days for different areas;

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

(6) Regulations 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
25amendment made by regulations under subsection (4).

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

(a) provide 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
30specified in the regulations or generally, until a time or times
specified in a notice issued by the Secretary of State;

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

(c) 35make provision about the issuing of notices under paragraph
(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) 40Section 176 of the Social Security Administration Act 1992 (consultation
with 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
45subsection (1) is to be disregarded.”

Welfare Reform and Work BillPage 12

(2) Section 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) 5After subsection (4) insert—

(4A) A statutory instrument containing regulations under section 96A 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) Subsection (5) is omitted.

(7) 10In section 150 of the Social Security Administration Act 1992 (annual up-rating
of benefits), subsection (7A) (review of the benefit cap) is omitted.

10 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
and 5 April 2020, the amount of each of the relevant sums is to remain the same
15as 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) A review under section 150(1) of the Social Security Administration Act 1992
20(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
that Act in the tax years ending with 5 April 2016, 5 April 2017, 5 April 2018
25and 5 April 2019 need not cover any of the relevant sums or the rates of child
benefit.

(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
30that Actuary’s opinion on the likely effect of the provision in subsection (1) on
the 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)

    35in relation to England and Wales and Scotland, has the same
    meaning 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
    40Ireland) Act 1992;

  • “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.

Welfare Reform and Work BillPage 13

11 Freeze of certain tax credit amounts for four tax years

(1) For 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) 5A 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
with 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—

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

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

12 Changes to child tax credit

(1) 15Section 9 of the Tax Credits Act 2002 (maximum rate of child tax credit) is
amended as follows.

(2) In 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,
20or either or both of whom is or are, responsible for a child or qualifying
young person who was born before 6 April 2017,”;

(b) at 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
25disabled.”

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

(4) After subsection (3) insert—

(3A) Subsection (3B) applies in the case of a person or persons entitled to
30child 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
April 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
35respect of the child or qualifying young person unless—

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

(b) a prescribed exception applies.”

(5) 40In subsection (5), for paragraph (c) substitute—

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

Welfare Reform and Work BillPage 14

13 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) After subsection (1) insert—

(1A) 5But 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) for “if such a” substitute “for each”;

(b) 10after “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
respect of whom an amount may be included under section 10”;

(b) 15in 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
second and each subsequent child or qualifying young person,
20for “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) Regulations under subsection (6) must be made by statutory instrument.

(8) 25A statutory instrument containing regulations under subsection (6) is subject
to annulment in pursuance of a resolution of either House of Parliament.

14 Universal credit: work-related requirements

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

(a) 30in 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) the claimant is the responsible carer for a child who is
35aged 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) in regulation 91 (claimants subject to work-focused interview
40requirement 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

15 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.

16 35Section 15: further provision

(1) This section makes further provision about regulations under section 15.

(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 15.

(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.

17 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 170 of the Social Security Administration Act 1992 (Social Security
Advisory Committee), in subsection (5)—

(a) in the definition of “the relevant enactments”, after paragraph (an)
40insert—

(ao) sections 15, 16 and 18 of the Welfare Reform and Work
Act 2016;”;

(b) in the definition of “the relevant Northern Ireland enactments”, after
paragraph (an) insert—

(ao) 45any provisions in Northern Ireland which correspond to
sections 15, 16 and 18 of the Welfare Reform and Work
Act 2016;”.

Welfare Reform and Work BillPage 18

(3) In section 2 of the Social Security Act 1998 (use of computers), in subsection
(2)—

(a) omit the “or” after paragraph (m);

(b) after paragraph (n) insert or

(o) 5sections 15 to 18 of the Welfare Reform and Work Act
2016.”

(4) In section 8 of the Social Security Act 1998 (decisions by Secretary of State)—

(a) in subsection (3) (meaning of “relevant benefit”), after paragraph (bb)
insert—

(bc) 10a loan under section 15 of the Welfare Reform and Work
Act 2016;”;

(b) in subsection (4) (meaning of “relevant enactment”), for “or section 30
of that Act” substitute “, section 30 of that Act or sections 15 to 18 of the
Welfare Reform and Work Act 2016”.

(5) 15In section 11 of the Social Security Act 1998 (regulations with respect to
decisions), in subsection (3), in the definition of “the current legislation”, for
“and section 30 of that Act” substitute “, section 30 of that Act and sections 15
to 18 of the Welfare Reform and Work Act 2016”.

(6) In section 28 of the Social Security Act 1998 (correction of errors and setting
20aside of decisions), in subsection (3)—

(a) omit the “or” after paragraph (i);

(b) after paragraph (j) insert ; or

(k) sections 15 to 18 of the Welfare Reform and Work Act
2016.”

(7) 25In section 39 of the Social Security Act 1998 (interpretation etc of Chapter 2 of
Part 1), after subsection (1) insert—

(1A) In this Chapter—

(a) a reference to a benefit includes a reference to a loan under
section 15 of the Welfare Reform and Work Act 2016;

(b) 30a reference to a claim for a benefit includes a reference to an
application for a loan under section 15 of the Welfare Reform
and Work Act 2016;

(c) a reference to a claimant includes a reference to an applicant for
a loan under section 15 of the Welfare Reform and Work Act
352016 or, in relation to a couple jointly applying for a loan under
that section, a reference to the couple or either member of the
couple;

(d) a reference to an award of a benefit to a person includes a
reference to a decision that a person is eligible for a loan under
40section 15 of the Welfare Reform and Work Act 2016;

(e) a reference to entitlement to a benefit includes a reference to
eligibility for a loan under section 15 of the Welfare Reform and
Work Act 2016.”

(8) In section 3A of the State Pension Credit Act 2002 (housing credit), in
45subsection (5)(a), omit the words from “(and,” to “payments)”.

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

Welfare Reform and Work BillPage 19

(10) In section 131 of the Welfare Reform Act 2012 (information-sharing in relation
to welfare services etc), in subsection (12), in the definition of “relevant social
security benefit” for the words from “has” to the end substitute means—

(a) a relevant social security benefit as defined in section 121DA(7)
5of the Social Security Administration Act 1992, or

(b) a loan under section 15 of the Welfare Reform and Work Act
2016 (loans for mortgage interest etc);”.

(11) The following provisions are repealed—

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

(i) 10section 1;

(ii) Schedule 1;

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

(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) 15in the Welfare Reform Act 2007, paragraph 10(5) of Schedule 3;

(f) in the Welfare Reform Act 2012—

(i) in Schedule 2, paragraph 6;

(ii) in Schedule 4, paragraph 11;

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

18 20Transitional provision

(1) Regulations made by the Secretary of State 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 sections 15 to 17.

(2) The regulations may include provision for temporarily excluding the making
25of a loan under regulations under section 15 after the coming into force of
sections 15 to 17.

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

(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
35qualifying benefit after the coming into force of sections 15 to 17 (including
where the making of loans is temporarily excluded).

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

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

(b) 40provide 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) enable the Secretary of State to issue notices under paragraph (b)
specifying different times for different persons or descriptions of
person.