Social Security Bill - continued        House of Commons
PART II, CONTRIBUTIONS - continued
Amendments of Administration Act - continued

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Payments of certain contributions out of the Consolidated Fund.     63. - (1) Subsection (4) of section 163 of the Administration Act (general financial arrangements) shall have effect, and shall be deemed always to have had effect, as if-
 
 
    (a) for the words "a secondary contributor" there were substituted the words "any person"; and
 
    (b) after the words "any secondary Class 1 contributions" there were inserted the words ", or any Class 1A contributions,".
      (2) Subsection (2) of section 1 of the Social Security (Miscellaneous Provisions) Act 1977 (from which subsection (4) of section 163 is derived) shall be deemed to have had effect with the same amendments as from the commencement of the Social Security (Contributions) Act 1991.
 
  PART III
  BENEFITS
 
Amendments of Contributions and Benefits Act
Daily rate of maternity allowance.     64. In subsection (5) of section 35 of the Contributions and Benefits Act (maternity allowance), for paragraphs (a) and (b) there shall be substituted the words "the amount payable by way of that allowance for any day shall be taken as one seventh of the weekly rate of the allowance".
 
Rates of short-term incapacity benefit.     65. For subsection (4) of section 44 of the Contributions and Benefits Act (Category A retirement pension) there shall be substituted the following subsection-
 
 
    "(4) The weekly rate of the basic pension shall be £62.45 except that, so far as the sum is relevant for the purpose of calculating the lower rate of short-term incapacity benefit under section 30B(3) above, it shall be £59.90.
 
      In this subsection "the lower rate" means the rate payable for the first 196 days of entitlement in any period of incapacity for work."
 
Discretionary payments out of social fund.     66. - (1) For subsection (1) of section 138 of the Contributions and Benefits Act (payments out of social fund) there shall be substituted the following subsection-
 
 
    "(1) There may be made out of the social fund, in accordance with this Part of this Act-
 
 
    (a) payments of prescribed amounts, whether in respect of prescribed items or otherwise, to meet, in prescribed circumstances, maternity expenses and funeral expenses; and
 
    (b) payments by way of community care grant, crisis loan or budgeting loan to meet other needs in accordance with directions given or guidance issued by the Secretary of State."
      (2) After subsection (4) of that section there shall be inserted the following subsection-
 
 
    "(5) In this Part-
 
 
    "budgeting loan" means a loan awarded in circumstances specified in directions issued by the Secretary of State for the purpose of defraying an intermittent expense;
 
    "community care grant" means a grant awarded in circumstances so specified for the purpose of meeting a need for community care;
 
    "crisis loan" means a loan awarded in circumstances so specified for the purpose of meeting an immediate short term need;
  and any reference in this subsection to meeting a need or defraying an expense includes a reference to helping to meet the need or to defray the expense."
 
Budgeting loans: criteria for making awards.     67. - (1) In subsection (1) of section 140 of the Contributions and Benefits Act (social fund: principles of determination), after the word "award" there shall be inserted the words "of a community care grant or a crisis loan".
 
      (2) After that subsection there shall be inserted the following subsection-
 
 
    "(1A) In determining whether to make an award of a budgeting loan to the applicant, or the amount or value to be awarded, an appropriate officer shall, subject to subsection (2) below, have regard to-
 
 
    (a) the applicant's personal circumstances; and
 
    (b) the criteria specified in paragraphs (b) to (e) of subsection (1) above;
  but where, apart from this provision, no award of such a loan would be made, the appropriate officer may, if he thinks fit, make his determination under this subsection on the basis of such other criteria as may be specified in directions issued by the Secretary of State."
 
      (3) In subsection (4) of that section, paragraph (e) shall cease to have effect and after paragraph (a) there shall be inserted the following paragraph-
 
 
    "(aa) that in circumstances specified in the direction an application for an award of a community care grant may be treated as an application for an award of a crisis loan, and vice versa;".
Power to reduce child benefit for lone parents.     68. - (1) Regulations may-
 
 
    (a) revoke any provision of regulations which prescribes a higher rate of child benefit in the case of a lone parent; or
 
    (b) vary any such provision by substituting a lower rate for the rate so prescribed,
  notwithstanding anything in section 145(4) of the Contributions and Benefits Act (which precludes regulations from prescribing a rate lower than the rate it replaces).
 
      (2) In this section "lone parent" means a parent who-
 
 
    (a) has no spouse or is not living with his spouse; and
 
    (b) is not living with any other person as his spouse.
      (3) Nothing in any enactment shall require the reference to the Social Security Advisory Committee of any regulations made by virtue of this section which are contained in a statutory instrument made before the end of the period of three months beginning with the day on which this Act is passed.
 
Statutory sick pay not precluded by maternity allowance.     69. In paragraph 2(d) of Schedule 11 to the Contributions and Benefits Act (circumstances in which periods of entitlement to statutory sick pay do not arise), the words "(ii) she was entitled to a maternity allowance, or" shall cease to have effect.
 
 
Amendments of Administration Act
Restrictions on backdating of benefit.     70. - (1) For subsection (2) of section 1 of the Administration Act (entitlement to benefit dependent on claim) there shall be substituted the following subsection-
 
 
    "(2) Except as provided by section 3 below, where under subsection (1) above a person is required to make a claim, or to be treated as making a claim, for a benefit in order to be entitled to it, the person shall not be entitled to it-
 
 
    (a) in respect of any period (or, in the case of a widow's payment, any death occurring) more than one month, or such period as may be prescribed, before the date on which the claim is made or treated as made; or
 
    (b) in such cases or circumstances as may be prescribed, in respect of any period before that date."
      (2) In section 3 of that Act (late claims for widowhood benefit where death is difficult to establish)-
 
 
    (a) in subsection (1), for the words "12 months have", in both places where they occur, there shall be substituted the words "one month has"; and
 
    (b) in subsections (2) and (3), for the words "12 months", in each place where they occur, there shall be substituted the words "one month".
Overpayments out of social fund.     71. After section 71 of the Administration Act there shall be inserted the following section-
 
 
"Overpayments out of social fund.     71ZA. - (1) Subject to subsection (2) below, section 71 above shall apply in relation to social fund payments to which this section applies as it applies in relation to payments made in respect of benefits to which that section applies.
 
    (2) Section 71 above as it so applies shall have effect as if-
 
 
    (a) in paragraph (a) of subsection (5) and subsection (5A), for the words "reversed or varied on an appeal or has been revised under section 10 or superseded under section 11" there were substituted the words "revised on a review under section 38";
 
    (b) in paragraph (b) of subsection (5), for the words "on the appeal or under that section" there were substituted the words "on the review"; and
 
    (c) subsections (7), (10A) and (10B) were omitted.
      (3) This section applies to social fund payments such as are mentioned in section 138(1)(b) of the Contributions and Benefits Act."
 
 
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Prepared 10 July 1997