Welfare Reform Bill

House of Commons

Session 2005 - 06
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Other Bills before Parliament

Welfare Reform Bill

Welfare Reform Bill
Schedule 3 — Consequential amendments relating to Part 1
59

(4)
Subsection (5) applies where a statement is made in the House of
Commons by or on behalf of the Secretary of State which specifies—
(a)
in relation to any of the items referred to in subsection
(1)(b)(i) to (iii), the amount of the alteration which he
proposes to make by an order under section 150 or 152 or by
5
or under any other enactment, and
(b)
the date on which he proposes to bring the alteration into
force (“the proposed commencing date”).
(5)
If, in a case where this subsection applies, an award of an
employment and support allowance is made in favour of a person
10
before the proposed commencing date and after the date on which
the statement is made, the award—
(a)
may provide for the employment and support allowance to
be paid as from the proposed commencing date at a rate
determined by reference to the amounts of the items referred
15
to in subsection (1)(b)(i) to (iii) which will be in force on that
date, or
(b)
may be expressed in terms of the amounts of those items in
force at the date of the award.
(6)
In this section—
20
“alteration” means—
(a)
in relation to any component of an employment and
support allowance, its alteration by or under any
enactment;
(b)
in relation to a person’s benefit income, the alteration
25
of any of the sums referred to in section 150 by any
enactment or by an order under section 150 or 152 to
the extent that any such alteration affects the amount
of his benefit income;
(c)
in relation to a person’s war disablement pension or
30
war widow’s or widower’s pension, its alteration by
or under any enactment;
“benefit income”, in relation to a person, means so much of his
income as consists of benefit under the Contributions and
Benefits Act;
35
“the commencing date”, in relation to an alteration, means the
date on which the alteration comes into force in relation to the
recipient;
“component”, in relation to an employment and support
allowance, means any of the sums specified in regulations
40
under Part 1 of the Welfare Reform Act 2006 which are
relevant in calculating the amount payable by way of an
employment and support allowance;
“war disablement pension” and “war widow’s or widower’s
pension” have the same meaning as in section 159B.”
45
     (21)
After section 160A insert—
“160B
Implementation of increases in employment and support allowance
due to attainment of particular ages
(1)
This section applies where—

Welfare Reform Bill
Schedule 3 — Consequential amendments relating to Part 1
60

(a)
an award of an employment and support allowance is in
force in favour of a person (“the recipient”), and
(b)
a component has become applicable, or applicable at a
particular rate, because he or some other person has reached
a particular age (“the qualifying age”).
5
(2)
If, as a result of the recipient or other person reaching the qualifying
age, the recipient becomes entitled to an employment and support
allowance of an increased amount, the amount payable to or for him
under the award shall, as from the day on which he becomes so
entitled, be that increased amount, without any further decision of
10
the Secretary of State; and the award shall have effect accordingly.
(3)
Subsection (2) does not apply where, in consequence of the recipient
or other person reaching the qualifying age, a question arises in
relation to the recipient’s entitlement to a benefit under the
Contributions and Benefits Act.
15
(4)
Subsection (2) does not apply where, in consequence of the recipient
or other person reaching the qualifying age, a question arises in
relation to the recipient’s entitlement to an employment and support
allowance, other than—
(a)
the question whether the component concerned, or any other
20
component, becomes or ceases to be applicable, or applicable
at a particular rate, in the recipient’s case, and
(b)
the question whether, in consequence, the amount of his
employment and support allowance falls to be varied.
(5)
In this section, “component”, in relation to a recipient and his
25
employment and support allowance, means any of the amounts
determined in accordance with regulations made under section
2(1)(a) or 4(2)(a) of the Welfare Reform Act 2006.”
     (22)
In section 164 (destination of repayments), in subsection (1), after “section 38
of the Jobseekers Act 1995” insert “, section 24 of the Welfare Reform Act
30
2006”.
     (23)
In section 170 (Social Security Advisory Committee), in subsection (5)—
(a)
in the definition of “the relevant enactments”, after paragraph (ai)
insert—
“(aia)
the provisions of Part 1 of the Welfare Reform Act
35
2006;”;
(b)
in the definition of “the relevant Northern Ireland enactments”, after
paragraph (ai) insert—
“(aia)
any provisions in Northern Ireland which correspond
to provisions of Part 1 of the Welfare Reform Act
40
2006;”.
     (24)
In section 179 (reciprocal agreements with countries outside the United
Kingdom)—
(a)
in subsection (3)(a), after “the State Pension Credit Act 2002” insert “,
Part 1 of the Welfare Reform Act 2006”;
45
(b)
in subsection (4), before “and” at the end of paragraph (ae) insert
“and
(af)
Part 1 of the Welfare Reform Act 2006;”;

Welfare Reform Bill
Schedule 3 — Consequential amendments relating to Part 1
61

(c)
in subsection (5), after paragraph (ab) insert—
“(ac)
employment and support allowance;”.
     (25)
In section 180 (payment of travelling expenses by Secretary of State), after
“the State Pension Credit Act 2002”, in both places, insert “, Part 1 of the
Welfare Reform Act 2006”.
5
     (26)
In section 187 (certain benefits to be inalienable), in subsection (1), after
paragraph (ab) insert—
“(ac)
an employment and support allowance;”.
     (27)
In section 191 (general interpretation)—
(a)
in the definition of “benefit”, for “and state pension credit” substitute
10
“, state pension credit and an employment and support allowance”;
(b)
after the definition of “the Contributions and Benefits Act” insert—
““contributory employment and support allowance”
means a contributory allowance under Part 1 of the
Welfare Reform Act 2006 (employment and support
15
allowance);”;
(c)
after the definition of “income-related benefit” insert—
““income-related employment and support allowance”
means an income-related allowance under Part 1 of
the Welfare Reform Act 2006 (employment and
20
support allowance);”.
Jobseekers Act 1995 (c. 18)
5     (1)
The Jobseekers Act 1995 is amended as follows.
      (2)
In section 1 (the jobseeker’s allowance), in subsection (2) (conditions of
entitlement), for paragraph (f) substitute—
25
“(f)
does not have limited capability for work;”.
      (3)
In section 3 (income-based conditions), in subsection (1)—
(a)
in paragraph (b), for “or state pension credit” substitute “, state
pension credit or an income-related employment and support
allowance”;
30
(b)
after paragraph (dd) insert—
“(de)
is not a member of a couple the other member of
which is entitled to an income-related employment
and support allowance;”.
      (4)
In section 3A (conditions for claims by joint-claim couples), in subsection (1),
35
after paragraph (cc) insert—
“(cd)
that neither member of the couple is entitled to an income-
related employment and support allowance;”.
      (5)
In section 35 (interpretation)—
(a)
in subsection (1), after the definition of “income-based jobseeker’s
40
allowance” insert—
““income-related employment and support allowance”
means an income-related allowance under Part 1 of
the Welfare Reform Act 2006 (employment and
support allowance);”;
45

Welfare Reform Bill
Schedule 3 — Consequential amendments relating to Part 1
62

(b)
in subsection (2), for “capable of work” substitute “limited capability
for work”.
      (6)
In Schedule 1 (supplementary provisions), for paragraph 2, and the italic
cross-heading immediately preceding it, substitute—
“Limited capability for work
5
2     (1)
The question whether a person has, or does not have, limited
capability for work shall be determined, for the purposes of this
Act, in accordance with the provisions of Part 1 of the Welfare
Reform Act 2006 (employment and support allowance).
      (2)
References in Part 1 of the Welfare Reform Act 2006 to the
10
purposes of that Part shall be construed, where the provisions of
that Part have effect for the purposes of this Act, as references to
the purposes of this Act.”
Social Security Act 1998 (c. 14)
6     (1)
The Social Security Act 1998 is amended as follows.
15
      (2)
In section 2 (use of computers), in subsection (2) (meaning of “relevant
enactment”), after paragraph (i) insert “; or
“(j)
Part 1 of the Welfare Reform Act 2006.”
      (3)
In section 8 (which provides for any decision on a claim for a relevant
benefit, or under or by virtue of a relevant enactment, to be made by the
20
Secretary of State)—
(a)
in subsection (3) (definition of “relevant benefit”), after paragraph (b)
insert—
“(ba)
an employment and support allowance;”;
(b)
in subsection (4) (definition of “relevant enactment”), for “or the State
25
Pension Credit Act 2002” substitute “, the State Pension Credit Act
2002 or Part 1 of the Welfare Reform Act 2006”.
      (4)
In section 11 (regulations with respect to decisions), in subsection (3), in the
definition of “the current legislation”, for “and the State Pension Credit Act
2002” substitute “, the State Pension Credit Act 2002 and Part 1 of the Welfare
30
Reform Act 2006”.
      (5)
In section 27 (restrictions on entitlement to benefit in certain cases of error),
in subsection (7), in the definition of “benefit”—
(a)
after paragraph (dd) insert—
“(de)
an employment and support allowance;”;
35
(b)
in paragraph (e), for “to (dd)” substitute “to (de)”.
      (6)
In section 28 (correction of errors and setting aside of decisions), in
subsection (3) (definition of “relevant enactment”), at the end insert “; or
(g)
Part 1 of the Welfare Reform Act 2006.”
      (7)
In Schedule 2 (decisions against which no appeal lies), in paragraph 6(b)
40
(alteration of rates of benefit), at the end insert “, or
(iv)
section 159C(1)(b) of that Act (employment and
support allowance).”
      (8)
In Schedule 3 (decisions against which an appeal lies), in paragraph 3

Welfare Reform Bill
Schedule 3 — Consequential amendments relating to Part 1
63

(payability of benefit), at the end insert “; or
(g)
section 17 of the Welfare Reform Act 2006.”
Welfare Reform and Pensions Act 1999 (c. 30)
7
In section 72 of the Welfare Reform and Pensions Act 1999 (power to make
regulations about the use and supply of social security information), in
5
subsection (3) (provisions in connection with which the power is
exercisable), at the end insert “, or
(d)
Part 1 of the Welfare Reform Act 2006.”
Income Tax (Earnings and Pensions) Act 2003 (c. 1)
8     (1)
The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.
10
      (2)
In section 658(4) (amount charged to tax to be calculated in accordance with section
661), after “carer’s allowance,” insert “contributory employment and support
allowance,”.
      (3)
In the table of taxable benefits in section 660 (“Table A”), after the entry relating to
“Carer’s allowance” insert—
15

“Contributory
WRA 2006
Section 1(2)(a)

employment and support

allowance

Any provision made for Northern

Ireland which corresponds to section

20

1(2)(a) of WRA 2006”

      (4)
In section 661(1) (social security income taxable on an accruals basis), after “carer’s
allowance,” insert—
“contributory employment and support allowance,”.
      (5)
In the table of benefits wholly exempt from tax in section 677 (“Table B”),
25
after the entry relating to “Housing benefit” insert—

“Income-related
WRA 2006
Section 1(2)(b)

employment and

support allowance

Any provision made for Northern

30

Ireland which corresponds to

section 1(2)(b) of WRA 2006”

      (6)
In Part 1 of Schedule 1 (abbreviations of Acts), at the end insert—

“WRA 2006
The Welfare Reform Act

2006”

35