NOTICES OF AMENDMENTS
given up to and including
Thursday 13th May 1999
New Amendments handed in are marked thus *
CONSIDERATION OF BILL
WELFARE REFORM AND PENSIONS BILL, AS AMENDED
NOTE
The Amendments have been arranged in accordance with the Order to be proposed by Mr Secretary Darling.
Mr Secretary Darling
To move, That the Welfare Reform and Pensions Bill, as amended, be considered in the following order, namely: New Clauses; amendments relating to Clauses 1 to 6, Schedule 1, Clauses 7 to 16, Schedule 2, Clause 17, Schedule 3, Clauses 18 and 19, Schedule 4, Clauses 20 to 29, Schedule 5, Clauses 30 to 44, Schedule 6, Clauses 45 to 50, Schedule 7, Clauses 51 to 61, Schedule 8, Clauses 62 to 64, Schedule 9, Clause 65, Schedule 10, Clauses 66 to 70, Schedule 11 and Clause 71; New Schedules; amendments relating to Clauses 72 and 73, Schedule 12, Clauses 74 to 76, Schedule 13 and Clauses 77 to 79.
NEW CLAUSES
Extension of entitlement to state maternity allowance
Mr Secretary Darling
NC5
To move the following Clause:—
'.—(1) In section 35 of the Contributions and Benefits Act (state maternity allowance), for subsections (1) and (1A) there shall be substituted—
"(1) A woman shall be entitled to a maternity allowance, at the appropriate weekly rate determined under section 35A below, if—
(a) she has become pregnant and has reached, or been confined before reaching, the commencement of the 11th week before the expected week of confinement; and
(b) she has been engaged in employment as an employed or self-employed earner for any part of the week in the case of at least 26 of the 66 weeks immediately preceding the expected week of confinement; and
(c) (within the meaning of section 35A) her average weekly earnings are not less than the maternity allowance threshold; and
(d) she is not entitled to statutory maternity pay for the same week in respect of the same pregnancy."
(2) In subsection (3) of that section—
(a) for "Schedule 3, Part I, paragraph 3" there shall be substituted "section 35A below"; and
(b) for "and (c) above" there shall be substituted "above or in section 35A(2) or (3) below".
(3) After that section there shall be inserted—
| "Appropriate weekly rate of maternity allowance. | 35A.—(1) For the purposes of section 35(1) above the appropriate weekly rate is that specified in whichever of subsection (2) or (3) below applies.
(2) Where the woman's average weekly earnings are not less than the lower earnings limit for the relevant tax year, the appropriate weekly rate is a weekly rate equal to the lower rate of statutory maternity pay for the time being prescribed under section 166(3) below.
(3) Where the woman's average weekly earnings—
(a) are less than the lower earnings limit for the relevant tax year, but
(b) are not less than the maternity allowance threshold for that tax year,
the appropriate weekly rate is a weekly rate equivalent to 90 per cent. of her average weekly earnings or (if lower) the rate specified in subsection (2) above.
(4) For the purposes of this section a woman's "average weekly earnings" shall be taken to be the average weekly amount (as determined in accordance with regulations) of specified payments which—
(a) were made to her or for her benefit as an employed earner, or
(b) are (in accordance with regulations) to be treated as made to her or for her benefit as a self-employed earner,
during the specified period.
(5) Regulations may, for the purposes of subsection (4) above, provide—
(a) for the amount of any payments falling within paragraph (a) or (b) of that subsection to be calculated or estimated in such manner and on such basis as may be prescribed;
(b) for a payment made outside the specified period to be treated as made during that period where it was referable to that period or any part of it;
(c) for a woman engaged in employment as a self-employed earner to be treated as having received a payment in respect of a week—
(i) equal to the lower earnings limit in force on the last day of the week, if she paid a Class 2 contribution in respect of the week, or
(ii) equal to the maternity allowance threshold in force on that day, if she was excepted (under section 11(4) above) from liability for such a contribution in respect of the week;
(d) for aggregating payments made or treated as made to or for the benefit of a woman where, either in the same week or in different weeks, she was engaged in two or more employments (whether, in each case, as an employed earner or a self-employed earner).
(6) In this section—
(a) "the maternity allowance threshold", in relation to a tax year, means (subject to subsection (7) below) £30;
(b) "the relevant tax year" means the tax year in which the beginning of the period of 66 weeks mentioned in section 35(1)(b) above falls; and
(c) "specified" (except in subsections (7) and (8) below) means prescribed by or determined in accordance with regulations.
(7) The Secretary of State may, in relation to any tax year after 1999-2000, by order increase the amount for the time being specified in subsection (6)(a) above to such amount as is specified in the order.
(8) When deciding whether, and (if so) by how much, to increase the amount so specified the Secretary of State shall have regard to the movement, over such period as he thinks fit, in the general level of prices obtaining in Great Britain (estimated in such manner as he thinks fit); and Secretary of State shall in each tax year carry out such a review of the amount so specified as he thinks fit."
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(4) This section applies in relation to the payment of maternity allowance in cases where a woman's expected week of confinement (within the meaning of section 35 of the Contributions and Benefits Act) begins on or after 20th August 2000.'.
Optional work-focused interviews
Mr Secretary Darling
NC10
To move the following Clause:—
'. After section 2B of the Administration Act (inserted by section 49 above) there shall be inserted—
| "Optional work-focused interviews. | 2C.—(1) Regulations may make provision for conferring on local authorities functions in connection with conducting work-focused interviews in cases where such interviews are requested or consented to by persons to whom this section applies.
(2) This section applies to persons making claims for or entitled to—
(a) any of the benefits listed in section 2A(2) above, or
(b) any prescribed benefit;
and it so applies regardless of whether such persons have, in accordance with regulations under section 2A above, already taken part in interviews conducted under such regulations.
(3) The functions which may be conferred on a local authority by regulations under this section include functions relating to—
(a) the obtaining and receiving of information for the purposes of work-focused interviews conducted under the regulations;
(b) the recording and forwarding of information supplied at, or for the purposes of, such interviews;
(c) the taking of steps to identify potential employment or training opportunities for persons taking part in such interviews.
(4) Regulations under this section may make different provision for different areas or different authorities.
(5) In this section "work-focused interview", in relation to a person to whom this section applies, means an interview conducted for such purposes connected with employment or training in the case of such a person as may be prescribed; and the purposes which may be so prescribed include—
(a) purposes connected with the existing or future employment or training prospects or needs of such a person, and
(b) (in particular) assisting or encouraging such a person to enhance his employment prospects." '.
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Excessive pension contributions made by persons who have become insolvent
Mr Secretary Darling
NC11
*To move the following Clause:—
'. For sections 342A to 342C of the Insolvency Act 1986 there shall be substituted—
| "Recovery of excessive pension contributions. | 342A.—(1) Where an individual who is adjudged bankrupt—
the trustee of the bankrupt's estate may apply to the court for an order under this section.
(2) If the court is satisfied—
(a) that the rights under the arrangement are to any extent, and whether directly or indirectly, the fruits of relevant contributions, and
(b) that the making of any of the relevant contributions ("the excessive contributions") has unfairly prejudiced the individual's creditors,
the court may make such order as it thinks fit for restoring the position to what it would have been had the excessive contributions not been made.
(3) Subsection (4) applies where the court is satisfied that the value of the rights under the arrangement is, as a result of rights of the individual under the arrangement or any other pension arrangement having at any time become subject to a debit under section 23(1)(a) of the Welfare Reform and Pensions Act 1999 (debits giving effect to pension-sharing), less than it would otherwise have been.
(4) Where this subsection applies—
(a) any relevant contributions which were represented by the rights which became subject to the debit shall, for the purposes of subsection (2), be taken to be contributions of which the rights under the arrangement are the fruits, and
(b) where the relevant contributions represented by the rights under the arrangement (including those so represented by virtue of paragraph (a)) are not all excessive contributions, relevant contributions which are represented by the rights under the arrangement otherwise than by virtue of paragraph (a) shall be treated as excessive contributions before any which are so represented by virtue of that paragraph.
(5) In subsections (2) to (4) "relevant contributions" means contributions to the arrangement or any other pension arrangement—
(a) which the individual has at any time made on his own behalf, or
(b) which have at any time been made on his behalf.
(6) The court shall, in determining whether it is satisfied under subsection (2)(b), consider in particular—
(a) whether any of the contributions were made for the purpose of putting assets beyond the reach of the individual's creditors or any of them, and
(b) whether the total amount of any contributions—
(i) made by or on behalf of the individual to pension arrangements, and
(ii) represented (whether directly or indirectly) by rights under approved pension arrangements or excluded rights under unapproved pension arrangements,
is an amount which is excessive in view of the individual's circumstances when those contributions were made.
(7) For the purposes of this section and sections 342B and 342C ("the recovery provisions"), rights of an individual under an unapproved pension arrangement are excluded rights if they are rights which are excluded from his estate by virtue of regulations under section 12 of the Welfare Reform and Pensions Act 1999.
(8) In the recovery provisions—
"approved pension arrangement" has the same meaning as in section 11 of the Welfare Reform and Pensions Act 1999;
"unapproved pension arrangement" has the same meaning as in section 12 of that Act.
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| Orders under section 342A. | 342B.—(1) Without prejudice to the generality of section 342A(2), an order under section 342A may include provision—
(a) requiring the person responsible for the arrangement to pay an amount to the individual's trustee in bankruptcy,
(b) adjusting the liabilities of the arrangement in respect of the individual,
(c) adjusting any liabilities of the arrangement in respect of any other person that derive, directly or indirectly, from rights of the individual under the arrangement,
(d) for the recovery by the person responsible for the arrangement (whether by deduction from any amount which that person is ordered to pay or otherwise) of costs incurred by that person in complying in the bankrupt's case with any requirement under section 342C(1) or in giving effect to the order.
(2) In subsection (1), references to adjusting the liabilities of the arrangement in respect of a person include (in particular) reducing the amount of any benefit or future benefit to which that person is entitled under the arrangement.
(3) In subsection (1)(c), the reference to liabilities of the arrangement does not include liabilities in respect of a person which result from giving effect to an order or provision falling within section 22(1) of the Welfare Reform and Pensions Act 1999 (pension sharing orders and agreements).
(4) The maximum amount which the person responsible for an arrangement may be required to pay by an order under section 342A is the lesser of—
(a) the amount of the excessive contributions, and
(b) the value of the individual's rights under the arrangement (if the arrangement is an approved pension arrangement) or of his excluded rights under the arrangement (if the arrangement is an unapproved pension arrangement).
(5) An order under section 342A which requires the person responsible for an arrangement to pay an amount ("the restoration amount") to the individual's trustee in bankruptcy must provide for the liabilities of the arrangement to be correspondingly reduced.
(6) For the purposes of subsection (5), liabilities are correspondingly reduced if the difference between—
(a) the amount of the liabilities immediately before the reduction, and
(b) the amount of the liabilities immediately after the reduction,
is equal to the restoration amount.
(7) An order under section 342A in respect of an arrangement—
(a) shall be binding on the person responsible for the arrangement, and
(b) overrides provisions of the arrangement to the extent that they conflict with the provisions of the order.
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| Orders under section 342A: supplementary. | 342C.—(1) The person responsible for—
(a) an approved pension arrangement under which a bankrupt has rights,
(b) an unapproved pension arrangement under which a bankrupt has excluded rights, or
(c) a pension arrangement under which a bankrupt has at any time had rights,
shall, on the bankrupt's trustee in bankruptcy making a written request, provide the trustee with such information about the arrangement and rights as the trustee may reasonably require for, or in connection with, the making of applications under section 342A.
(2) Nothing in—
(a) any provision of section 159 of the Pension Schemes Act 1993 or section 91 of the Pensions Act 1995 (which prevent assignment and the making of orders which restrain a person from receiving anything which he is prevented from assigning),
(b) any provision of any enactment (whether passed or made before or after the passing of the Welfare Reform and Pensions Act 1999) corresponding to any of the provisions mentioned in paragraph (a), or
(c) any provision of the arrangement in question corresponding to any of those provisions,
applies to a court exercising its powers under section 342A.
(3) Where any sum is required by an order under section 342A to be paid to the trustee in bankruptcy, that sum shall be comprised in the bankrupt's estate.
(4) Regulations may, for the purposes of the recovery provisions, make provision about the calculation and verification of—
(a) any such value as is mentioned in section 342B(4)(b);
(b) any such amounts as are mentioned in section 342B(6)(a) and (b).
(5) The power conferred by subsection (4) includes power to provide for calculation or verification—
(a) in such manner as may, in the particular case, be approved by a prescribed person; or
(b) in accordance with guidance—
(i) from time to time prepared by a prescribed person, and
(ii) approved by the Secretary of State.
(6) References in the recovery provisions to the person responsible for a pension arrangement are to—
(a) the trustees, managers or provider of the arrangement, or
(b) the person having functions in relation to the arrangement corresponding to those of a trustee, manager or provider.
(7) In this section and sections 342A and 342B—
"prescribed" means prescribed by regulations;
"the recovery provisions" means this section and sections 342A and 342B;
"regulations" means regulations made by the Secretary of State.
(8) Regulations under the recovery provisions may—
(a) make different provision for different cases;
(b) contain such incidental, supplemental and transitional provisions as appear to the Secretary of State necessary or expedient.
(9) Regulations under the recovery provisions shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament."'.
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