Welfare Reform and Work Bill (HL Bill 92)

Welfare Reform and Work BillPage 20

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

(7) Regulations under this section may make different provision for different
5areas, 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
annulment in pursuance of a resolution of either House of Parliament.

Social security administration

19 10Expenses 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 Expenses of paying sums in respect of vehicle hire etc.

(1) This section applies where—

(a) 15a 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
beneficiary with a relevant provider for the lease or hire
purchase of a motor vehicle, and

(c)20 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
obligation of the beneficiary under the agreement.

(2) Regulations may make provision—

(a) 25for 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
by requiring them to pay prescribed fees or by deducting and
retaining a prescribed part of the payments that would
30otherwise 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
sums due from that provider under paragraph (a).

(3) In this section—

  • 35“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
    the Contributions and Benefits Act), or

    (b)

    the mobility component of personal independence
    40payment, if it is payable at the enhanced rate (see section
    79(2) of the Welfare Reform Act 2012);

  • “relevant provider” means a person whose business consists of or
    includes the supply by way of lease or hire purchase of motor

    Welfare Reform and Work BillPage 21

    vehicles to persons in respect of whom a relevant benefit
    component is payable.”

Social housing rents

20 Reduction in social housing rents

(1) 5In 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.

(2) If—

(a) 10the tenancy of particular social housing comes to an end after part of a
relevant year has elapsed, or

(b) this section ceases to apply in relation to the tenancy of particular social
housing after part of a relevant year has elapsed,

the requirement in subsection (1) has effect in relation to the part of the relevant
15year falling before that time with a proportionate reduction in the maximum
amount of rent payable to the registered provider by the tenant.

(3) The amount of rent payable to the registered provider by the tenant in respect
of the 12 months preceding the first relevant year is to be treated for the
purposes of subsection (1) as having been the greater of the following
20amounts—

(a) the amount of rent that would have been payable in respect of those 12
months if the rate of rent applicable at the beginning of 8 July 2015 had
applied during those 12 months, and

(b) if the Secretary of State consents to the use by the registered provider of
25a different day (“the permitted review day”), the amount of rent that
would have been payable in respect of those 12 months if the rate of
rent applicable at the beginning of the permitted review day had
applied during those 12 months.

(4) A consent given for the purposes of subsection (3) may be a consent given for
30a particular case or for a description of cases.

(5) If a tenancy existing in the first relevant year began at or before the beginning
of 8 July 2015 but less than 12 months before the beginning of the first relevant
year, the tenancy is to be treated for the purposes of subsection (1) as having
begun at least 12 months before the first relevant year (and subsection (3) is to
35have effect accordingly).

(6) For the purposes of this section a relevant year, in relation to a registered
provider, is—

(a) in the case of a private registered provider whose practice as regards
the greater number of its tenancies is to change rent payable no more
40than once a year and with effect from a single date other than 1 April
(“the review date”)—

(i) a year beginning on the first review date to occur after 1 April
2016, or

(ii) a year beginning on the first, second or third anniversary of that
45date;

(b) in any other case, a year beginning on 1 April 2016, 1 April 2017, 1 April
2018 or 1 April 2019.

Welfare Reform and Work BillPage 22

(7) For the purposes of subsection (6), a private registered provider’s practice as
regards its tenancies is to be determined by reference to its practice as regards
the tenancies of its social housing in the year ending with 31 March 2016 (and
a private registered provider which has no tenancies of its social housing in
5that year is to be regarded as having no practice as regards its tenancies).

(8) A private registered provider whose practice is as described in subsection
(6)(a) is to be regarded as having complied with the preceding subsections if it
treats tenants in its social housing as if its relevant years were the years
mentioned in subsection (6)(b).

(9) 10This section is subject to—

(a) section 24 (provision about excepted cases);

(b) Schedule 2 (further provision about social housing rents).

21 Exceptions

(1) Section 20 does not apply in relation to a tenant of social housing if—

(a) 15the accommodation is low cost home ownership accommodation;

(b) the accommodation is both low cost rental accommodation and low
cost home ownership accommodation (see section 71 of the Housing
and Regeneration Act 2008).

(2) Section 20 does not apply in relation to social housing of a registered provider
20if, where the registered provider’s interest in the property that consists of or
includes the social housing is subject to a mortgage—

(a) the mortgagee is in possession of the interest in the property or the part
of the property that includes the social housing, in the exercise of the
mortgagee’s powers to enforce the mortgage,

(b) 25a receiver has been appointed in relation to the interest in the property
or the part of the property that includes the social housing by—

(i) the mortgagee, in the exercise of the mortgagee’s powers to
enforce the mortgage, or

(ii) the court, in connection with enforcing the mortgage,

30and that appointment is in force, or

(c) a person has been appointed by the mortgagee, in the exercise of the
mortgagee’s powers to enforce the mortgage (including, in the case of
a floating charge which relates to the interest in the property, the power
under paragraph 14 of Schedule B1 to the Insolvency Act 1986), to
35exercise powers that include a power to sell or otherwise dispose of the
interest in the property or the part of the property that includes the
social housing and that appointment is in force.

(3) If—

(a) a registered provider’s interest in property that consists of or includes
40social housing was made subject to a mortgage, and

(b) the interest in the property, or the interest in the part that includes the
social housing, is sold or otherwise disposed of after the coming into
force of section 20 by—

(i) the mortgagee, in the exercise of the mortgagee’s powers to
45enforce the mortgage,

(ii) a receiver appointed by the mortgagee or by the court as
described in subsection (2)(b), or

Welfare Reform and Work BillPage 23

(iii) a person appointed by the mortgagee as described in subsection
(2)(c),

section 20 ceases to apply in relation to that social housing at the time of that
sale or other disposal.

(4) 5In subsections (2) and (3)

  • “mortgage” includes a charge or other security;

  • “mortgagee” includes a person who is entitled to take steps to enforce a
    charge or other security.

(5) The Secretary of State may by regulations provide for section 20 not to apply in
10cases prescribed by the regulations.

(6) Regulations under subsection (5) may in particular make provision about—

(a) tenants of a description prescribed by the regulations;

(b) tenancies of a description prescribed by the regulations;

(c) accommodation of a description prescribed by the regulations;

(d) 15accommodation which satisfies conditions prescribed by the
regulations, including conditions relating to the funding of its building
or refurbishment;

(e) events of a description prescribed by the regulations.

(7) Regulations made by virtue of subsection (6)(a) may include provision about
20tenants whose income exceeds, or whose household’s incomes exceed, an
amount prescribed by the regulations during a period prescribed by the
regulations.

(8) Regulations made by virtue of subsection (6)(e) may include provision about
periods during a tenancy when the rent payable is temporarily reduced or
25waived.

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

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

22 Exemption of a registered provider of social housing

(1) 30The regulator may issue a direction mentioned in subsection (2) in respect of a
private registered provider if—

(a) the condition in subsection (4) or (5) is satisfied, and

(b) the Secretary of State consents.

(2) The directions are—

(a) 35a direction that section 20 does not apply in relation to a private
registered provider specified in the direction;

(b) a direction that section 20 is to have effect in relation to a private
registered provider specified in the direction as if in section 20(1) for “at
least 1% less than” there were substituted “no more than”;

(c) 40a direction that section 20 is to have effect in relation to a private
registered provider specified in the direction as if section 20(1) required
at least the lesser reduction specified in the direction;

(d) a direction that section 20 is to have effect in relation to a private
registered provider specified in the direction as if section 20(1) required
45the private registered provider to secure that the amount of rent

Welfare Reform and Work BillPage 24

payable by a tenant of their social housing increased by no more than
the percentage specified in the direction.

(3) The regulator may specify in a direction—

(a) the period during which it is to have effect, and

(b) 5the social housing in relation to which it is to have effect.

(4) The condition in this subsection is that the regulator considers that complying
with section 20 would jeopardise the financial viability of the private registered
provider.

(5) The condition in this subsection is that the circumstances of the private
10registered provider satisfy requirements prescribed in regulations made by the
Secretary of State.

(6) The regulator may publish a document about the measures that the regulator
considers could be taken by a private registered provider to comply with
section 20 and to avoid jeopardising its financial viability.

(7) 15The Secretary of State may issue a direction mentioned in subsection (8) in
respect of a local authority if the condition in subsection (10) or (11) is satisfied.

(8) The directions are—

(a) a direction that section 20 does not apply in relation to a local authority
specified in the direction;

(b) 20a direction that section 20 is to have effect in relation to a local authority
specified in the direction as if in section 20(1) for “at least 1% less than”
there were substituted “no more than”;

(c) a direction that section 20 is to have effect in relation to a local authority
specified in the direction as if section 20(1) required at least the lesser
25reduction specified in the direction;

(d) a direction that section 20 is to have effect in relation to a local authority
specified in the direction as if section 20(1) required the authority to
secure that the amount of rent payable by a tenant of their social
housing increased by no more than the percentage specified in the
30direction.

(9) The Secretary of State may specify in a direction—

(a) the period during which it is to have effect, and

(b) the social housing in relation to which it is to have effect.

(10) The condition in this subsection is that the Secretary of State considers that the
35local authority would be unable to avoid serious financial difficulties if it were
to comply with section 20.

(11) The condition in this subsection is that the circumstances of the local authority
satisfy requirements prescribed in regulations made by the Secretary of State.

(12) The Secretary of State may publish a document about the measures that the
40Secretary of State considers could be taken by a local authority in order to
comply with section 20 and to avoid serious financial difficulties.

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

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

Welfare Reform and Work BillPage 25

23 Further provision about social housing rents

In Schedule 2—

(a) Part 1 makes further provision about the maximum amount of rent that
registered providers must secure is payable in respect of a relevant year
5or part of a relevant year by a tenant of their social housing in England;

(b) Part 2 contains provision about exceptions and exemptions;

(c) Part 3 contains general provision.

24 Provision about excepted cases

(1) The Secretary of State may by regulations make provision about the maximum
10amount of rent payable to a registered provider in respect of a relevant year, or
a part of a relevant year, by a tenant of social housing in relation to whom—

(a) section 20 does not apply because of an exception in regulations under
section 21;

(b) a provision about levels of rent in Part 1 of Schedule 2 does not apply
15because of an exception in regulations under paragraph 5 of that
Schedule.

(2) The Secretary of State may by regulations make provision about the maximum
amount of rent payable to a registered provider by a tenant of social housing—

(a) in respect of the part of the relevant year after an exception in
20regulations under section 21 ceases to apply;

(b) in respect of the part of the relevant year after an exception in
regulations under paragraph 5 of Schedule 2 ceases to apply;

(c) in respect of the following relevant year (if any).

(3) Regulations under subsection (1) or (2) may, in particular, require registered
25providers to secure that the maximum amount of rent payable in respect of a
relevant year, or part of a relevant year, is an amount determined as specified
in the regulations.

(4) Regulations made by virtue of subsection (3) may, in particular, provide for
section 20 or Part 1 of Schedule 2 to have effect with modifications.

(5) 30The modifications that may be made by virtue of subsection (4) include (but are
not limited to) modifications that—

(a) provide for the maximum amount of rent to be increased from year to
year by no more than a percentage specified in the regulations;

(b) provide for the maximum amount of rent to be determined by
35disregarding the effect of a temporary reduction or waiver of rent;

(c) provide for the maximum amount of rent to be determined by reference
to a different period;

(d) provide for section 20(1) or paragraph 1(4)(c) or (5)(c) or 3(5) of
Schedule 2 to have effect as if it referred to a different percentage;

(e) 40provide for paragraph 1, 2 or 3 of Schedule 2 to have effect as if the
social rent rate were uplifted by a percentage specified in the
regulations;

(f) provide for paragraph 3(2) or (3) of Schedule 2 to have effect as if
paragraph 3(2)(a)(ii) or (4)(a)(ii) referred to a different percentage;

(g) 45provide for the maximum amount of rent to be determined by reference
to what would have been the amount if an exception in regulations
under section 21 or paragraph 5(5) of Schedule 2 (including an

Welfare Reform and Work BillPage 26

exception making such provision as is described in section 21(7) or
paragraph 5(7)) had not applied.

(6) Regulations made by virtue of subsection (5)(d) may not provide for a higher
percentage to have effect.

(7) 5Regulations made by virtue of subsection (5)(e) may, in particular, make
provision in relation to cases where an exception in regulations under
paragraph 5(5) of Schedule 2 making provision about social housing which
satisfies conditions prescribed by the regulations as to design, facilities, use or
the provision of support to tenants applies.

(8) 10Regulations under subsection (1) may not provide for a maximum amount of
rent payable by a tenant of social housing in respect of a relevant year, or a part
of a relevant year, which is less than the amount that would be payable by the
tenant in respect of that period if the rent was payable at the social rent rate in
that period, in a case where an exception in regulations under paragraph 5(5)
15of Schedule 2 applies.

(9) Regulations under subsection (1) or (2) may make provision about disapplying
or modifying a requirement in the regulations as it relates to a registered
provider.

(10) Regulations made by virtue of subsection (9) may, in particular, enable the
20Secretary of State or the regulator to issue a direction that disapplies or
modifies a requirement as it relates to a registered provider.

(11) Regulations made by virtue of subsection (10) may provide for a direction to
specify—

(a) the period during which it has effect;

(b) 25the social housing in relation to which it has effect.

(12) Regulations made by virtue of subsection (10) may—

(a) provide for conditions to be satisfied before a direction is issued;

(b) provide for the regulator to obtain the consent of the Secretary of State
before issuing a direction.

(13) 30Regulations under this section must be made by statutory instrument.

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

25 Implied terms

(1) A lease or other agreement by virtue of which a person is a tenant of a
35registered provider contains, by virtue of this subsection, an implied term
enabling the registered provider to reduce the amount of rent payable by the
tenant, without giving prior notice, where the reduction is made for the
purpose of complying with a requirement imposed by or under section 20 or
24 or Part 1 of Schedule 2.

(2) 40Subsection (1) has effect notwithstanding any express provision in a lease or
other agreement.

(3) Section 102 of the Housing Act 1985 (variation of terms of a secure tenancy) has
effect subject to subsection (1).

Welfare Reform and Work BillPage 27

26 Change of registered provider

(1) This section applies if—

(a) particular social housing of a registered provider becomes social
housing of another registered provider (“the transferee”), and

(b) 5the social housing is subject to a tenancy that began before the social
housing became the transferee’s social housing.

(2) Sections 20 to 24 and Schedule 2 have effect in relation to the amount of rent
payable by the tenant under the tenancy as if—

(a) the transferee’s relevant years were the same as the initial registered
10provider’s relevant years, and

(b) rent payable by the tenant before the social housing became the
transferee’s social housing were rent payable to the transferee in
respect of such earlier periods.

(3) Subsection (4) applies if, immediately before the social housing became the
15transferee’s social housing, a requirement imposed by or under section 20 or
24 or Part 1 of Schedule 2 was disapplied or modified as regards the social
housing—

(a) by a direction under section 22 or paragraph 6 of Schedule 2, or

(b) under section 24(9).

(4) 20If the social housing becomes the transferee’s social housing otherwise than at
the beginning of a relevant year of the initial registered provider, the
requirement continues not to apply or continues to apply as modified (as the
case may be) until—

(a) the relevant year of the initial registered provider current when the
25social housing becomes the transferee’s social housing comes to an end,
or

(b) if earlier, the tenancy comes to an end.

(5) In this section a reference to a relevant year of an initial registered provider
includes, in the case of an initial registered provider that has ceased to exist, a
30reference to what would have been a relevant year of an initial registered
provider if it had not ceased to exist.

(6) In this section “initial registered provider”, in relation to a tenancy of social
housing, means the first registered provider which—

(a) was subject to a requirement imposed by or under section 20 or 24 or
35Part 1 of Schedule 2 as regards the tenancy, or

(b) would have been so subject but for its being disapplied—

(i) by a direction under section 22 or paragraph 6 of Schedule 2 or
under section 24(9), or

(ii) by or under section 21 or paragraph 5 of Schedule 2.

27 40Enforcement

(1) Part 2 of the Housing and Regeneration Act 2008 is amended as follows.

(2) In section 220 (grounds for giving an enforcement notice to a registered
provider), after subsection (11) insert—

(11A) Case 11 is where the registered provider has failed to comply with—

(a) 45section 20 of the Welfare Reform and Work Act 2016,

Welfare Reform and Work BillPage 28

(b) regulations under section 24 of that Act, or

(c) Part 1 of Schedule 2 to that Act.”

(3) In section 227 (grounds for imposing a penalty on a private registered
provider), after subsection (7) insert—

(7A) 5Case 7 is where the registered provider has failed to comply with—

(a) section 20 of the Welfare Reform and Work Act 2016,

(b) regulations under section 24 of that Act, or

(c) Part 1 of Schedule 2 to that Act.”

(4) In section 237 (grounds for requiring a private registered provider to pay
10compensation), after subsection (3) insert—

(4) Case 3 is where the registered provider has failed to comply with—

(a) section 20 of the Welfare Reform and Work Act 2016,

(b) regulations under section 24 of that Act, or

(c) Part 1 of Schedule 2 to that Act.”

(5) 15In section 247 (management tender), in subsection (1), after paragraph (a) (and
before the “or” following it) insert—

(aa) a registered provider has failed to comply with—

(i) section 20 of the Welfare Reform and Work Act 2016,

(ii) regulations under section 24 of that Act, or

(iii) 20Part 1 of Schedule 2 to that Act,”.

(6) In section 251 (appointment of manager of a private registered provider), in
subsection (1), after paragraph (a) (and before the “or” following it) insert—

(aa) a private registered provider has failed to comply with—

(i) section 20 of the Welfare Reform and Work Act 2016,

(ii) 25regulations under section 24 of that Act, or

(iii) Part 1 of Schedule 2 to that Act,”.

28 Transitional provision

(1) This section applies if, immediately before the rent restriction period ends—

(a) a lease or other agreement by virtue of which a person is a tenant of a
30registered provider contains provision under which rent will or may be
increased with effect from a date or dates specified in the lease or other
agreement (“rent review dates”), and

(b) the registered provider is subject to a requirement imposed by or under
section 20 or 24 or Part 1 of Schedule 2 as regards the tenant.

(2) 35The lease or other agreement contains, by virtue of this subsection, an implied
term enabling the registered provider to treat a date that falls—

(a) after the rent restriction period ends, and

(b) before the first rent review date to occur after the rent restriction period
ends,

40as if that date were the first rent review date to occur after the rent restriction
period ends (instead of the date provided for in the lease or other agreement).

(3) Subsection (4) applies if, under the provision mentioned in subsection (1)(a),
the intervals between rent review dates may only be intervals of 51 weeks or
more.

Welfare Reform and Work BillPage 29

(4) The lease or other agreement contains, by virtue of this subsection, an implied
term enabling the registered provider, if it acts as mentioned in subsection (2),
to treat the relevant date as if it were the second rent review date to occur after
the rent restriction period ends (instead of the date provided for in the lease or
5other agreement).

(5) In subsection (4) “the relevant date” means the date that precedes the second
rent review date by the same period as the date treated under subsection (2) as
the first rent review date precedes the first rent review date provided for in the
lease or other agreement.

(6) 10The lease or other agreement contains, by virtue of this subsection, an implied
term requiring the registered provider, if it acts as mentioned in subsection (4),
to treat the date that precedes each subsequent rent review date by the same
period as if it were that subsequent rent review date (instead of the date
provided for in the lease or other agreement).

(7) 15The lease or other agreement contains, by virtue of this subsection, an implied
term providing that, if the registered provider treats an earlier date as if it were
a rent review date because of a term implied by subsection (2), (4) or (6), other
provision in the lease or other agreement is to have effect accordingly.

(8) Nothing in this section prevents the registered provider and the tenant varying
20or excluding by agreement a term implied by virtue of this section.

(9) Section 102 of the Housing Act 1985 (variation of terms of a secure tenancy) has
effect subject to subsections (2), (4), (6) and (7).

(10) In this section “rent restriction period”, in relation to a tenant of a registered
provider, means the period during which the registered provider might be
25subject to a requirement imposed by or under section 20 or 24 or Part 1 of
Schedule 2 as regards the tenant.

29 Rent standards

Sections 194(2A) and 198(3) of the Housing and Regeneration Act 2008 (the
powers of the regulator to set and revise standards relating to levels of rent) are
30subject to sections 20 to 22, 24 and 26 and Schedule 2.

30 Interpretation

(1) In sections 20 to 29, this section and Schedule 2—

  • “local authority” has the same meaning as in the Housing Associations
    Act 1985;

  • 35“low cost home ownership accommodation” has the meaning given by
    section 70 of the Housing and Regeneration Act 2008;

  • “low cost rental accommodation” has the meaning given by section 69 of
    the Housing and Regeneration Act 2008;

  • “private registered provider” means a private registered provider of
    40social housing (see section 80 of the Housing and Regeneration Act
    2008);

  • “registered provider” means a registered provider of social housing (see
    section 80 of the Housing and Regeneration Act 2008);

  • “the regulator” means the Regulator of Social Housing;

  • 45“relevant year” has the meaning given by section 20;

  • Welfare Reform and Work BillPage 30

  • “rent” includes payments under a licence to occupy;

  • “service charge” means an amount payable by the tenant of particular
    accommodation as part of, or in addition to, the rent, and which is
    payable, directly or indirectly, for services, repairs, maintenance,
    5improvements or insurance or the landlord’s costs of management;

  • “social housing” has the same meaning as in Part 2 of the Housing and
    Regeneration Act 2008 (see sections 68 and 72 of that Act);

  • “the social housing rents provisions” means sections 20 to 29, this section
    and Schedule 2;

  • 10“social rent rate” has the meaning given by Schedule 2;

  • “tenancy” includes a licence to occupy;

  • “tenant” includes a person who has a licence to occupy.

(2) In the social housing rents provisions, a reference to the beginning of a tenancy
is a reference to the day on which, under the terms of a lease or other
15agreement, the tenant is entitled to possession under the tenancy, subject to
subsection (3).

(3) For the purposes of the social housing rents provisions, a tenancy of particular
social housing is to be regarded as having been assigned to the tenant under
the following tenancy (and not as coming to an end) where—

(a) 20that tenancy is followed by another tenancy of that social housing and
at least one person is both a tenant under the first tenancy when it
comes to an end and a tenant under the following tenancy when it
begins,

(b) that tenancy gives rise to another person’s statutory or assured tenancy
25of that social housing by virtue of Part 1 of Schedule 1 to the Rent Act
1977 (statutory tenants by succession), or

(c) that tenancy gives rise to another tenancy of that social housing by
virtue of paragraph 13 of Schedule 1 to the Rent Act 1977 (change of
statutory tenant by agreement and with consent of landlord),

30but a tenancy of particular social housing is to be regarded as coming to an end
on being assigned by way of exchange (and the assignee is to be regarded as a
tenant whose tenancy began at that time).

(4) References to the tenant under a tenancy of particular social housing are to be
read in accordance with subsection (3).

(5) 35In determining the maximum amount of rent payable by a person who is a
tenant of social housing for part of a relevant year, a fraction of a day during
which the person is a tenant of that social housing is to be treated as a whole
day during which the person is a tenant of that social housing.

(6) In the social housing rents provisions, a reference to an amount of rent payable
40to a registered provider for social housing—

(a) in a case where the maximum amount applying under regulations
under section 24 or Part 1 of Schedule 2 is determined on a basis that
treats an amount, or a description of an amount, payable by way of
service charge as part of the rent payable, includes a reference to an
45amount, or an amount of that description, payable by way of service
charge,

(b) in a case where section 20 applies after regulations under section 24
have, or Part 1 of Schedule 2 has, applied a maximum amount
determined on a basis that treats an amount, or a description of an
50amount, payable by way of service charge as part of the rent payable,

Welfare Reform and Work BillPage 31

includes a reference to an amount, or an amount of that description,
payable by way of service charge,

(c) in a case not falling within paragraph (a) or (b) where, under the terms
of the lease or agreement, an amount, or a description of an amount,
5payable by way of service charge is part of the rent payable, includes a
reference to an amount, or an amount of that description, payable by
way of service charge, and

(d) in any other case, does not include a reference to an amount payable by
way of service charge.

10Final

31 Power to make consequential provision

(1) The Secretary of State may by regulations make such amendments and
revocations of subordinate legislation (whenever made) as appear to the
Secretary of State to be necessary or expedient in consequence of any provision
15of this Act.

(2) In this section “subordinate legislation” has the same meaning as in the
Interpretation Act 1978.

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

(4) A statutory instrument containing regulations under this section is subject to
20annulment in pursuance of a resolution of either House of Parliament.

32 Extent

(1) The following provisions of this Act extend to England and Wales, Scotland
and Northern Ireland—

(a) section 1 (full employment: reporting obligation);

(b) 25sections 5, 6 and 7 (life chances);

(c) section 10(2) and (6) (freeze of rates of child benefit for four tax years);

(d) section 11 and paragraph 2 of Schedule 1 (freeze of certain tax credit
amounts for four tax years);

(e) section 12 (changes to child tax credit);

(f) 30section 31, this section, section 33 and section 34.

(2) The following provisions of this Act extend to England and Wales—

(a) section 2 (apprenticeships reporting obligation);

(b) section 3 (support for troubled families: reporting obligation);

(c) sections 20 to 30 and Schedule 2 (reduction in social housing rents).

(3) 35The following provisions of this Act extend to England and Wales and
Scotland—

(a) sections 8 and 9 (benefit cap and review of benefit cap);

(b) section 10(1), (3), (4) and (5) and paragraph 1 of Schedule 1 (freeze of
certain benefits for four tax years);

(c) 40section 13 (changes to child element of universal credit);

(d) section 13 (employment and support allowance: work-related activity
component);

(e) section 14 (universal credit: limited capability for work element);

Welfare Reform and Work BillPage 32

(f) section 14 (universal credit: work-related requirements);

(g) sections 15 to 18 (loans for mortgage interest etc);

(h) section 19 (expenses of paying sums in respect of vehicle hire etc).

33 Commencement

(1) 5The following provisions of this Act come into force on the day on which it is
passed—

(a) section 9(6) and (7);

(b) sections 10 and 11 and Schedule 1;

(c) section 20(3) and (4);

(d) 10section 22;

(e) paragraphs 6 and 9 of Schedule 2 and section 23, so far as relating to
paragraphs 6 and 9;

(f) section 31, section 32, this section and section 34.

(2) The following provisions of this Act come into force at the end of the period of
15two months beginning on the day on which it is passed—

(a) section 1;

(b) section 2;

(c) sections 5, 6 and 7.

(3) Sections 8 and 9(1) to (5) come into force—

(a) 20for the purposes of making regulations, on the day on which this Act is
passed;

(b) for remaining purposes, on such day or days as the Secretary of State
may by regulations appoint.

(4) Section 12 comes into force—

(a) 25for the purposes of making regulations, on the day on which this Act is
passed;

(b) for remaining purposes, on 6 April 2017.

(5) Sections 20, 21 and 23 to 30 and Schedule 2, so far as not brought into force by
subsection (1), come into force—

(a) 30for the purposes of making regulations, on the day on which this Act is
passed;

(b) for remaining purposes, on such day or days as the Secretary of State
may by regulations appoint.

(6) The remaining provisions of this Act come into force on such day or days as the
35Secretary of State may by regulations appoint.

(7) Regulations under subsection (3), (5) or (6) may—

(a) appoint different days for different areas;

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

(8) Regulations under subsection (3), (5) or (6) may make such transitional or
40transitory provision or savings as the Secretary of State considers necessary or
expedient in connection with the coming into force of the provisions to which
they relate.

Welfare Reform and Work BillPage 33

(9) Section 176 of the Social Security Administration Act 1992 (consultation with
representative organisations) does not apply in relation to regulations under
this section so far as relating to section 8 or 9.

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

34 5Short title

This Act may be cited as the Welfare Reform and Work Act 2016.

Welfare Reform and Work BillPage 34

SCHEDULES

Sections 10 and 11

SCHEDULE 1 Meaning of “the relevant sums” and “the relevant amounts”

1 The “relevant sums” for the purposes of section 10 are the sums—

(a) 5specified in paragraph 1 of Schedule 2 to the Income Support
(General) Regulations 1987 (S.I. 1987/1967);

(b) specified in paragraph 1 of Schedule 3 to the Housing Benefit
Regulations 2006 (S.I. 2006/213);

(c) specified in paragraph 25 of Schedule 3 to the Housing Benefit
10Regulations 2006 (S.I. 2006/213);

(d) specified in regulations under section 4(2) of the Jobseekers Act 1995;

(e) specified in paragraph 1 of Schedule 1 to the Jobseeker’s Allowance
Regulations 1996 (S.I. 1996/207);

(f) specified in regulations under section 2(1)(a) of the Welfare Reform
15Act 2007;

(g) specified in regulations under section 2(4)(c) of the Welfare Reform
Act 2007, so far as relating to the component under section 2(3) of
that Act;

(h) specified in paragraph 1 of Schedule 4 to the Employment and
20Support Allowance Regulations 2008 (S.I. 2008/794);

(i) specified in regulations under section 4(6)(c) of the Welfare Reform
Act 2007, so far as relating to the component under section 4(5) of
that Act;

(j) specified in regulations under section 9(2) of the Welfare Reform Act
252012;

(k) specified in regulations under section 10(3) of the Welfare Reform
Act 2012 in respect of an amount to be included under section 10(2)
of that Act (but where more than one sum is so specified, only the
smaller or smallest of those sums is a “relevant sum”);

(l) 30specified in regulations under section 12(3) of the Welfare Reform
Act 2012 in respect of needs or circumstances of a claimant
prescribed by virtue of section 12(2)(a) of that Act (but not in respect
of needs or circumstances prescribed by virtue of section 12(2)(b)).

2 The “relevant amounts” for the purposes of section 11 are the amounts—

(a) 35specified in Schedule 2 to the Working Tax Credit (Entitlement and
Maximum Rate) Regulations 2002 (S.I. 2002/2005) for the basic
element, the 30 hour element, the second adult element and the lone
parent element;

(b) specified in regulation 7(4)(c) and (f) of the Child Tax Credit
40Regulations 2002 (S.I. 2002/2007).

Welfare Reform and Work BillPage 35

Section 23

SCHEDULE 2 Further provision about social housing rents

Part 1 Provision about levels of rents

5Tenancy of existing social housing

1 (1) This paragraph applies in relation to a tenant of social housing in England
if—

(a) the tenancy begins after the beginning of 8 July 2015, and

(b) the accommodation was social housing during the period starting
10with the beginning of 8 July 2015 and ending with the beginning of
the tenancy.

(2) This paragraph does not apply if paragraph 3 applies.

(3) The registered provider must secure that the maximum amount of rent
payable to the registered provider by the tenant in respect of—

(a) 15the first relevant year, where the tenancy begins before or at the
beginning of the first relevant year,

(b) the part of the relevant year falling after the beginning of the tenancy,
where the tenancy begins after the beginning of the first relevant
year and not at the beginning of a later relevant year,

(c) 20the following relevant year, where the tenancy begins as described in
paragraph (b), or

(d) the relevant year, other than the first relevant year, at the beginning
of which the tenancy begins,

is no more than would be payable if the tenant were paying rent at the higher
25of the social rent rate and the assumed rent rate in respect of that relevant
year or that part of a relevant year.

(4) The social rent rate, in relation to the rent payable by a tenant of social
housing in respect of the first or a subsequent relevant year, is the rate found
by—

(a) 30determining what would have been the rate of formula rent for that
social housing at the beginning of 8 July 2015,

(b) determining the rate of that rent when expressed by reference to a
period of 12 months (if necessary), and

(c) at the beginning of each relevant year (up to and including the
35relevant year in question), making a 1% reduction in the rate.

(5) The assumed rent rate, in relation to the rent payable by a tenant of social
housing in respect of the first or a subsequent relevant year, is the rate found
by—

(a) determining the rate of the rent that—

(i) 40was payable at the beginning of 8 July 2015 by the person
who was the tenant of that social housing, in a case where 8
July 2015 is the relevant day,

(ii) was payable at the beginning of the relevant day by the
person who was the tenant of that social housing, in a case
45where the relevant day falls after 8 July 2015 and the person

Welfare Reform and Work BillPage 36

who was the tenant at the beginning of 8 July 2015 continued
as tenant until at least that later time,

(iii) is likely to have been payable at the beginning of the relevant
day by the person who was the tenant at the beginning of 8
5July 2015 if the person’s tenancy had continued until at least
that later time, in a case where the relevant day falls after 8
July 2015 and the person who was the tenant at the beginning
of 8 July 2015 ceased to be the tenant before that later time, or

(iv) is likely to have been payable at the beginning of the relevant
10day by a tenant of that social housing, in a case where there
was no tenant at that time and sub-paragraph (iii) does not
apply,

(b) determining the rate of that rent when expressed by reference to a
period of 12 months (if necessary), and

(c) 15at the beginning of each relevant year (up to and including the
relevant year in question), making a 1% reduction in the rate.

(6) If—

(a) the tenancy comes to an end after part of a relevant year to which
sub-paragraph (3) applies has elapsed, or

(b) 20sub-paragraph (3)(a), (b), (c) or (d) ceases to apply in relation to the
tenancy after part of the relevant year in question has elapsed,

sub-paragraph (3) has effect in relation to the part of the relevant year falling
before that time with a proportionate reduction in the maximum amount of
rent payable to the registered provider by the tenant.

(7) 25The Secretary of State may by regulations define “formula rent” and may, in
particular, provide that it is a rent set in accordance with a method specified
in the regulations.

(8) Regulations under sub-paragraph (7) may, in particular, make provision by
reference to—

(a) 30the standard published in January 2015 by the regulator under
section 194(2A) of the Housing and Regeneration Act 2008 (the
powers of the regulator to set standards relating to levels of rent),

(b) Rent Standard Guidance published in January 2015 by the regulator, or

(c) Guidance on Rents for Social Housing published in May 2014 by the
35Secretary of State.

Tenancy of new social housing

2 (1) This paragraph applies in relation to a tenant of social housing in England
if—

(a) the tenancy begins after the beginning of 8 July 2015, and

(b) 40paragraph 1(1)(b) is not satisfied as regards the accommodation.

(2) This paragraph does not apply if paragraph 3 applies.

(3) If the tenancy begins before or at the beginning of the first relevant year, the
registered provider must secure that the maximum amount of rent payable
to the registered provider by the tenant in respect of the first relevant year is
45the amount that would be payable by the tenant if the social rent rate applied
during that relevant year.