Welfare Reform Bill

House of Commons

Session 2005 - 06
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Welfare Reform Bill

Welfare Reform Bill
Schedule 2 — Employment and support allowance: supplementary provisions
52

Schedule 2
Section 20

Employment and support allowance: supplementary provisions
Limited capability for work
1
Regulations may make provision—
(a)
for a person to be treated in prescribed circumstances as having, or
5
as not having, limited capability for work;
(b)
for the question of whether a person has limited capability for work
to be determined notwithstanding that he is for the time being
treated by virtue of regulations under sub-paragraph (a) as having
limited capability for work;
10
(c)
for the question of whether a person has limited capability for work
to be determined afresh in prescribed circumstances.
Waiting days
2
Except in prescribed circumstances, a person is not entitled to an
employment and support allowance in respect of a prescribed number of
15
days at the beginning of a period of limited capability for work.
Periods of less than a week
3
Regulations may make provision in relation to—
(a)
entitlement to an employment and support allowance, or
(b)
the amount payable by way of such an allowance,
20

in respect of any period of less than a week.
Linking periods
4     (1)
Regulations may provide for circumstances in which a period of limited
capability for work which is separated from another period of limited
capability for work by not more than a prescribed length of time is to be
25
treated for the purposes of this Part as a continuation of the earlier period.
      (2)
Regulations may provide, in relation to periods which are linked by virtue
of regulations under sub-paragraph (1), that a condition which was satisfied
in relation to the earlier period is to be treated for the purposes of this Part
as satisfied in relation to the later period.
30
Presence in Great Britain
5
Regulations may make provision for the purposes of this Part as to the
circumstances in which a person is to be treated as being, or not being, in
Great Britain.
Contributory allowance: entitlement in case of absence from Great Britain
35
6
Regulations may provide that in prescribed circumstances a claimant who is
not in Great Britain may nevertheless be entitled to a contributory
allowance.

Welfare Reform Bill
Schedule 2 — Employment and support allowance: supplementary provisions
53

Contributory allowance: modification in relation to employment on ships etc.
7     (1)
Regulations may modify any provision of this Part, so far as relating to a
contributory allowance, in its application to any person who is, has been, or
is to be—
(a)
employed on board any ship, vessel, hovercraft or aircraft,
5
(b)
outside Great Britain at any prescribed time or in any prescribed
circumstances, or
(c)
in prescribed employment in connection with continental shelf
operations.
      (2)
Regulations under this paragraph may, in particular, provide—
10
(a)
for any provision of this Part to apply even though it would not
otherwise apply;
(b)
for any such provision not to apply even though it would otherwise
apply;
(c)
for the taking of evidence, in a country or territory outside Great
15
Britain, by a consular official or other prescribed person;
(d)
for enabling the whole, or any part, of a contributory allowance to be
paid to such of the claimant’s dependants as may be prescribed.
      (3)
In this paragraph, “continental shelf operations” has the same meaning as in
section 120 of the Contributions and Benefits Act.
20
Income-related allowance: entitlement in case of absence from Great Britain
8     (1)
Regulations may provide that in prescribed circumstances a claimant who is
entitled to an income-related allowance immediately before ceasing to be in
Great Britain continues to be entitled to such an allowance after ceasing to
be in Great Britain.
25
      (2)
Regulations may modify any provision of this Part, so far as relating to an
income-related allowance, in its application to a person who is entitled to
such an allowance by virtue of regulations under sub-paragraph (1).
      (3)
Regulations under sub-paragraph (2) may, in particular, provide—
(a)
for any provision of this Part to apply even though it would not
30
otherwise apply;
(b)
for any such provision not to apply even though it would otherwise
apply.
Limited capability for work-related activity
9
Regulations may make provision—
35
(a)
for a person to be treated in prescribed circumstances as having, or
as not having, limited capability for work-related activity;
(b)
for the question of whether a person has limited capability for work-
related activity to be determined afresh in prescribed circumstances.
Effect of work
40
10
Regulations may prescribe circumstances in which a person is to be treated
as not entitled to an employment and support allowance because of his
doing work.

Welfare Reform Bill
Schedule 2 — Employment and support allowance: supplementary provisions
54

Treatment of allowance as “benefit”
11
Regulations may provide for—
(a)
an employment and support allowance,
(b)
a contributory allowance, or
(c)
an income-related allowance,
5

to be treated, for prescribed purposes of the Contributions and Benefits Act,
as a benefit, or a benefit of a prescribed description.
Attribution of reductions in cases where allowance taken to consist of two elements
12
Where an employment and support allowance is taken by virtue of section
6(5) to consist of two elements, any reduction in the amount payable in
10
respect of the allowance which falls to be made by virtue of—
(a)
section 10,
(b)
section 11,
(c)
section 12, or
(d)
section 2AA of the Administration Act (full entitlement to certain
15
benefits conditional on work-focused interview for partner),

shall be treated as reducing such of those elements by such amount as may
be prescribed.
Treatment of information supplied as information relating to social security
13
Information supplied in pursuance of regulations under any of sections 8 to
20
12 shall be taken for all purposes to be information relating to social security.
Advance claims
14
This Part shall have effect with prescribed modifications in relation to cases
where a claim to an employment and support allowance is by virtue of
regulations under section 5(1)(c) of the Administration Act (advance claims)
25
made, or treated as if made, for a period wholly or partly after the date on
which it is made.
Members of the forces
15    (1)
Regulations may modify—
(a)
any provision of this Part, or
30
(b)
any corresponding provision made for Northern Ireland,

in its application to persons who are or have been members of Her Majesty’s
forces.
      (2)
For the purposes of this paragraph, Her Majesty’s forces shall be taken to
consist of prescribed establishments and organisations in which persons
35
serve under the control of the Defence Council.

Welfare Reform Bill
Schedule 3 — Consequential amendments relating to Part 1
55

Schedule 3
Section 25

Consequential amendments relating to Part 1
Child Support Act 1991 (c. 48)
1     (1)
The Child Support Act 1991 is amended as follows.
      (2)
In section 6 (applications by those claiming or receiving benefit), in
5
subsection (1), after “income-based jobseeker’s allowance” insert “, an
income-related employment and support allowance”.
      (3)
In section 46 (reduced benefit decisions), in subsection (10)(c) (definition of
“relevant benefit”), for “or an income-based jobseeker’s allowance”
substitute “, an income-based jobseeker’s allowance, an income-related
10
employment and support allowance”.
      (4)
In section 54 (interpretation), after the definition of “income-based
jobseeker’s allowance” insert—
““income-related employment and support allowance” means
an income-related allowance under Part 1 of the Welfare
15
Reform Act 2006 (employment and support allowance);”.
Criminal Justice Act 1991 (c. 53)
2
In section 24 of the Criminal Justice Act 1991 (recovery of fines etc. by
deduction from income support)—
(a)
in subsections (1) and (2)(d), for “or state pension credit” substitute
20
“, state pension credit or an income-related employment and support
allowance”;
(b)
in subsection (4), after the definition of “fine” insert—
““income-related employment and support allowance”
means an income-related allowance under Part 1 of
25
the Welfare Reform Act 2006 (employment and
support allowance);”.
Social Security Contributions and Benefits Act 1992 (c. 4)
3     (1)
The Contributions and Benefits Act is amended as follows.
      (2)
In section 22 (earnings factors)—
30
(a)
in subsection (2) (purposes for which a person may be treated as
having annual earnings factors), in paragraph (a), after “jobseeker’s
allowance” insert “, to a contributory employment and support
allowance”;
(b)
in subsection (5) (power to provide for crediting earnings or Class 2
35
contributions), after “jobseeker’s allowance” insert “, to a
contributory employment and support allowance”.
      (3)
At the end of section 22 insert—
“(8)
In this section, “contributory employment and support allowance”
means a contributory allowance under Part 1 of the Welfare Reform
40
Act 2006 (employment and support allowance).”
      (4)
Sections 30A to 30E (incapacity benefit) cease to have effect.

Welfare Reform Bill
Schedule 3 — Consequential amendments relating to Part 1
56

      (5)
In section 124 (income support), in subsection (1), after paragraph (g) insert
“; and
(h)
he is not entitled to an employment and support allowance
and, if he is a member of a couple, the other member of the
couple is not entitled to an income-related employment and
5
support allowance.”
      (6)
At the end of section 124 insert—
“(7)
In this section, “income-related employment and support allowance”
means an income-related allowance under Part 1 of the Welfare
Reform Act 2006 (employment and support allowance).”
10
      (7)
In section 150 (interpretation of Part 10: Christmas bonus)—
(a)
in subsection (1) (definition of “qualifying benefit”), after paragraph
(b) insert—
“(ba)
a qualifying employment and support allowance;”;
(b)
in subsection (2), after the definition of “the qualifying age for state
15
pension credit” insert—
““qualifying employment and support allowance”
means an employment and support allowance under
Part 1 of the Welfare Reform Act 2006 the calculation
of the amount of which includes an addition in
20
respect of the support component or the work-related
activity component;”.
      (8)
Sections 171A to 171G (incapacity for work) cease to have effect.
Social Security Administration Act 1992 (c. 5)
4     (1)
The Administration Act is amended as follows.
25
      (2)
In section 1 (entitlement to benefit dependent on claim), in subsection (4)
(definition of “benefit”), after “state pension credit;” insert—
“(ac)
an employment and support allowance;”.
      (3)
In section 2AA (full entitlement to certain benefits conditional on work-
focused interview for partner) in subsection (2) (benefits to which section
30
applies), at the end insert “; and
(f)
an employment and support allowance.”
      (4)
In section 5 (regulations about claims for and payments of benefit), in
subsection (2) (benefits to which section applies), after paragraph (ab)
insert—
35
“(ac)
an employment and support allowance;”.
      (5)
In section 15A (payment out of benefit of sums in respect of mortgage
interest etc.)—
(a)
in subsection (1) (cases in which section applies), for “or an income-
based jobseeker’s allowance”, in each place, substitute “, an income-
40
based jobseeker’s allowance or an income-related employment and
support allowance”;
(b)
in subsection (4), in the definition of “qualifying associate”, for “or
state pension credit” substitute “, state pension credit or an income-
related employment and support allowance” and for “or the State
45

Welfare Reform Bill
Schedule 3 — Consequential amendments relating to Part 1
57

Pension Credit Act 2002” substitute “, the State Pension Credit Act
2002 or Part 1 of the Welfare Reform Act 2006”;
(c)
in that subsection, in the definition of “relevant benefits”, after
paragraph (c) insert—
“(d)
an employment and support allowance;”.
5
      (6)
In section 71 (overpayments), in subsection (11) (benefits to which section
applies), after paragraph (ab) insert—
“(ac)
an employment and support allowance;”.
      (7)
In section 73 (overlapping benefits)—
(a)
in subsection (1), after “contribution-based jobseeker’s allowance”
10
insert “or a contributory employment and support allowance”;
(b)
in subsection (4), at the end of paragraph (b) insert “or
(c)
a contributory employment and support allowance,”.
      (8)
In section 74 (income support and other payments)—
(a)
in subsections (1)(b) and (2)(b), for “or state pension credit”
15
substitute “, state pension credit or an income-related employment
and support allowance”;
(b)
in subsection (3)(b), for “or an income-based jobseeker’s allowance”,
in each place, substitute “, an income-based jobseeker’s allowance or
an income-related employment and support allowance”.
20
      (9)
In section 105 (failure to maintain)—
(a)
in subsection (1)(b), for “or an income-based jobseeker’s allowance”
substitute “, an income-based jobseeker’s allowance or an income-
related employment and support allowance”;
(b)
in subsection (4), after “an income-based jobseeker’s allowance”
25
insert “or an income-related employment and support allowance”.
     (10)
In section 121DA (interpretation of Part 6), in subsection (1) (definition of
“relevant social security legislation”), after paragraph (hh) insert—
“(hi)
Part 1 of the Welfare Reform Act 2006;”.
     (11)
In section 122ZA (supply of tax information to assess certain employment or
30
training schemes), in subsection (6)(b), after “the Jobseekers Act 1995 (c. 18)”
insert “, Part 1 of the Welfare Reform Act 2006”.
     (12)
In section 122B (supply of other government information for fraud
prevention and verification), in subsection (3)(b), after “the Jobseekers Act
1995” insert “, Part 1 of the Welfare Reform Act 2006”.
35
     (13)
In section 122C (supply of information to authorities administering benefit),
in subsection (6)(b), after “the Jobseekers Act 1995” insert “, Part 1 of the
Welfare Reform Act 2006”.
     (14)
In section 124 (provisions relating to age, death and marriage), in subsection
(1), before “and” at the end of paragraph (ab) insert—
40
“(ac)
of the provisions of Part 1 of the Welfare Reform Act 2006;”.
     (15)
In section 125 (regulations as to notification of death), in subsection (1), after
“the State Pension Credit Act 2002” insert “, Part 1 of the Welfare Reform Act
2006”.
     (16)
In section 126 (personal representatives to give information about the estate
45
of a deceased person who was in receipt of certain benefits), in subsection

Welfare Reform Bill
Schedule 3 — Consequential amendments relating to Part 1
58

(1), after “state pension credit” insert “, an income-related employment and
support allowance”.
     (17)
In section 132 (power to require employers to provide information in
connection with claims to certain benefits), in subsection (1), after paragraph
(a) insert—
5
“(aa)
an employment and support allowance;”.
     (18)
In section 150(7) (power to include in annual up-rating order provision for
increase in sums not required to be up-rated), for “or the State Pension
Credit Act 2002” substitute “, the State Pension Credit Act 2002 or Part 1 of
the Welfare Reform Act 2006”.
10
     (19)
In section 159B (effect of alterations affecting state pension credit)—
(a)
before “or” at the end of subsection (1)(b)(iii) insert—
“(iiia)
in any component of a contributory
employment and support allowance,”;
(b)
in subsection (6), in the definition of “component”, at the end insert—
15
“(c)
in relation to a contributory employment and
support allowance, means any of the sums
specified in regulations under Part 1 of the
Welfare Reform Act 2006 which are relevant
in calculating the amount payable by way of a
20
contributory employment and support
allowance;”.
     (20)
After section 159B insert—
“159C
Effect of alteration of rates of an employment and support allowance
(1)
Subject to such exceptions and conditions as may be prescribed,
25
subsection (2) or (3) shall have effect where—
(a)
an award of an employment and support allowance is in
force in favour of any person (“the recipient”), and
(b)
an alteration—
(i)
in any component of the allowance,
30
(ii)
in the recipient’s benefit income, or
(iii)
in the recipient’s war disablement or war widow’s or
widower’s pension,

affects the computation of the amount of the employment
and support allowance to which he is entitled.
35
(2)
Where, as a result of the alteration, the amount of the employment
and support allowance to which the recipient is entitled is increased
or reduced, then, as from the commencing date, the amount of the
employment and support allowance payable in the case of the
recipient under the award shall be the increased or reduced amount,
40
without any further decision of the Secretary of State; and the award
shall have effect accordingly.
(3)
Where, notwithstanding the alteration, the recipient continues on
and after the commencing date to be entitled to the same amount by
way of an employment and support allowance as before, the award
45
shall continue in force accordingly.