Welfare Reform Bill

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Welfare Reform Bill

Welfare Reform Bill
Part 2 — Housing benefit and council tax benefit
26

31
Housing benefit and council tax benefit for persons taking up employment
(1)
Subsection (2) applies if a person is entitled to housing benefit or council tax
benefit (by virtue of the general conditions of entitlement) and—
(a)
he is also entitled to a prescribed benefit or his partner is entitled to
such a benefit,
5
(b)
he or his partner ceases to be entitled to the prescribed benefit in
prescribed circumstances, and
(c)
the prescribed conditions are satisfied.
(2)
That person is entitled to housing benefit or council tax benefit in accordance
with this section for a prescribed period.
10
(3)
Subsection (2) applies whether or not the person would be entitled to housing
benefit or council tax benefit by virtue of the general conditions of entitlement
for the whole or any part of the prescribed period.
(4)
A person who is entitled to housing benefit or council tax benefit by virtue of
subsection (2) must be treated for all purposes—
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(a)
as having made a claim for that benefit, and
(b)
as having complied with any requirement under or by virtue of any
enactment in connection with the making of such a claim.
(5)
Housing benefit or council tax benefit to which a person is entitled by virtue of
subsection (2) is to be funded and administered by the appropriate authority.
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(6)
Subsection (5) applies whether or not, for the whole or any part of the
prescribed period—
(a)
for the purposes of establishing an entitlement to housing benefit, the
person occupies as his home a dwelling in the area of the authority;
(b)
for the purposes of establishing an entitlement to council tax benefit,
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the person is a resident of a dwelling in the area of the authority.
(7)
The amount of housing benefit or council tax benefit payable in respect of a
person who is entitled to the benefit by virtue of subsection (2) is to be
determined in accordance with regulations made for the purposes of this
section.
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(8)
If an amount of housing benefit or council tax benefit is, by virtue of subsection
(2), payable in respect of a person by the appropriate authority for any period,
no other amount of housing benefit or council tax benefit is (by virtue of the
general conditions of entitlement) payable by that authority in respect of that
person for the same period.
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(9)
Regulations may make provision in connection with the effect of a person’s
entitlement to housing benefit or council tax benefit by virtue of subsection (2)
on an award of such benefit by virtue of the general conditions of entitlement
in respect of that person or his partner.
(10)
Regulations may provide that where—
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(a)
an amount of housing benefit or council tax benefit is, by virtue of
subsection (2), payable in respect of a person by the appropriate
authority for the whole or any part of a prescribed period, and
(b)
an amount of housing benefit or council tax benefit is (by virtue of the
general conditions of entitlement) payable by a local authority which is
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not that appropriate authority in respect of that person for the whole or
any part of that period,

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Part 2 — Housing benefit and council tax benefit
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the amount of the benefit payable by the local authority mentioned in
paragraph (b) is to be reduced by an amount determined in such manner as is
prescribed.
(11)
An amount determined for the purposes of subsection (10) may have the effect
of reducing the amount mentioned in paragraph (b) of that subsection to nil.
5
(12)
Regulations may make provision as to circumstances in which—
(a)
subsection (8) does not apply;
(b)
entitlement to housing benefit or council tax benefit of a partner of the
person mentioned in subsection (10) is to be treated as the entitlement
of that person;
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(c)
benefit is not to be reduced as mentioned in subsection (10).
(13)
For the purposes of subsection (1) a person must be treated as entitled to
housing benefit or council tax benefit by virtue of the general conditions of
entitlement if—
(a)
he is not so entitled to that benefit at the time he or his partner ceases to
15
be entitled to the prescribed benefit as mentioned in subsection (1)(b),
and
(b)
his entitlement to housing benefit or council tax benefit (as the case may
be) ceased during the prescribed period before that time.
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Section 31: supplemental
20
(1)
The administration provisions apply in relation to housing benefit or council
tax benefit to which a person is entitled by virtue of subsection (2) of section 31
subject to—
(a)
subsections (4), (5) and (6) of that section;
(b)
any prescribed modifications of those provisions which the Secretary of
25
State thinks are necessary or expedient in connection with such housing
benefit or council tax benefit.
(2)
Modifications under subsection (1)(b) may, in particular, provide that housing
benefit or council tax benefit to which a person is entitled by virtue of section
31(2) must or may take the form of a payment by the appropriate authority to
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another local authority in prescribed circumstances.
(3)
In this section the administration provisions are—
(a)
the Administration Act;
(b)
subordinate legislation (within the meaning of the Interpretation Act
1978 (c. 30)) made in pursuance of that Act.
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(4)
The power to make regulations under this section or section 31 is exercisable
by the Secretary of State by statutory instrument.
(5)
A statutory instrument containing regulations under this section or section 31
is subject to annulment in pursuance of a resolution of either House of
Parliament.
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(6)
Section 175(3) to (7) of the Contributions and Benefits Act (supplemental
provision as to regulations) applies in relation to regulations under this section
and section 31 above as it applies in relation to regulations under that Act.
(7)
In section 170 of the Administration Act (Social Security Advisory Committee),
in subsection (5)—
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Welfare Reform Bill
Part 2 — Housing benefit and council tax benefit
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(a)
in the definition of “the relevant enactments”, after paragraph (ai)
insert—
“(aj)
sections 31 and 32 of the Welfare Reform Act
2007;”;
(b)
in the definition of “the relevant Northern Ireland enactments”, after
5
paragraph (ai) insert—
“(aj)
any provisions in Northern Ireland which
correspond to sections 31 and 32 of the Welfare
Reform Act 2007;”.
(8)
For the purposes of any enactment other than a relevant enactment—
10
(a)
entitlement to housing benefit by virtue of section 31(2) above is to be
treated as entitlement under section 130 of the Contributions and
Benefits Act;
(b)
entitlement to council tax benefit by virtue of section 31(2) above is to
be treated as entitlement under section 131 of that Act.
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(9)
In subsection (8), the relevant enactments are—
(a)
the administration provisions, and
(b)
Part 7 of the Contributions and Benefits Act, except sections 123 and
134(2) and (4).
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Sections 31 and 32: interpretation
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(1)
This section has effect for the interpretation of sections 31 and 32.
(2)
The general conditions of entitlement are the conditions governing entitlement
to housing benefit or council tax benefit provided for by Part 7 of the
Contributions and Benefits Act.
(3)
The appropriate authority—
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(a)
in relation to housing benefit is the local authority or housing authority
which, immediately before the person concerned ceased to be entitled
to the prescribed benefit, funded and administered the housing benefit
to which he was entitled;
(b)
in relation to council tax benefit is the billing authority or, in Scotland,
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local authority which, immediately before the person concerned ceased
to be entitled to the prescribed benefit, funded and administered the
council tax benefit to which he was entitled.
(4)
The following expressions have the same meaning as in the Administration
Act—
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(a)
billing authority;
(b)
housing authority;
(c)
local authority.
(5)
Partner, in relation to a person, is a person who is a member of the same couple
(within the meaning of Part 7 of the Contributions and Benefits Act) as that
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person.
(6)
Prescribed means prescribed by regulations.

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Part 2 — Housing benefit and council tax benefit
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Information relating to housing benefit
(1)
Section 5 of the Administration Act (regulations about claims and benefits) is
amended as follows.
(2)
After subsection (2) insert—
“(2A)
The regulations may also require such persons as are prescribed to
5
provide a rent officer with information or evidence of such description
as is prescribed.
(2B)
For the purposes of subsection (2A), the Secretary of State may
prescribe any description of information or evidence which he thinks is
necessary or expedient to enable rent officers to carry out their
10
functions under section 122 of the Housing Act 1996.
(2C)
Information or evidence required to be provided by virtue of
subsection (2A) may relate to an individual claim or award or to any
description of claims or awards.”
(3)
Subsection (3) ceases to have effect.
15
35
Supply of information by rent officers
After section 122E of the Administration Act (supply of information between
authorities administering benefit) insert—
“Rent officers and housing benefit
122F
Supply by rent officers of information relating to housing benefit
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(1)
The Secretary of State may require a rent officer to supply housing
benefit information held by the rent officer to, or to a person providing
services to, the Secretary of State for use for purposes relating to any of
the following—
(a)
social security;
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(b)
child support;
(c)
war pensions;
(d)
employment or training;
(e)
private pensions policy or retirement planning.
(2)
Information must be supplied under subsection (1) in such manner and
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form, and in accordance with such requirements, as may be specified in
directions given by the Secretary of State.
(3)
Housing benefit information is any information which relates to the
exercise by the rent officer of any function he has under section 122 of
the Housing Act 1996 relating to housing benefit.”
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36
Payment of housing benefit
In section 134 of the Administration Act (arrangements for housing benefit), for
subsection (2) substitute—
“(2)
Housing benefit is to be paid in such manner as is prescribed, and
regulations may, in particular, provide for—
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Welfare Reform Bill
Part 2 — Housing benefit and council tax benefit
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(a)
a payment or payments by the authority administering the
benefit to the person entitled to it (E), to some other person on
E’s behalf or in respect of a liability which E has,
(b)
a reduction in the amount of any payments which E is liable to
make to the authority by way of rent, or
5
(c)
such a payment or payments and such a reduction.
(2A)
In any enactment or instrument (whenever passed or made) “pay” in
relation to housing benefit includes discharge in any manner
prescribed under subsection (2) above.
(2B)
Subsection (2) above does not affect any power under section 5 above
10
to make provision in relation to the payment of benefit.”
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Duty to send inspection reports to the Secretary of State
(1)
In section 13A of the Local Government Act 1999 (c. 27) (reports of inspections
by Auditor General for Wales), after subsection (4) insert—
“(4A)
If a report relates to any extent to the administration of housing benefit
15
or council tax benefit and the Auditor General for Wales thinks fit to do
so, he shall as soon as reasonably practicable send a copy of the report
to the Secretary of State.”
(2)
In section 29 of that Act (modifications for Wales), after subsection (2) insert—
“(2A)
Subsection (1)(a) does not apply to section 13A(4A).”
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Directions by Secretary of State
(1)
Section 139D of the Administration Act (power to give directions) is amended
in accordance with subsections (2) to (8) below.
(2)
In subsection (1) (reports that trigger the section), for paragraph (c)
substitute—
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“(c)
a copy of a report under section 102(1)(b) or (c) of the Local
Government (Scotland) Act 1973 which to any extent relates to
the administration of benefit has been sent to a local authority
and the Secretary of State under section 102(2) of that Act;”.
(3)
In subsection (1), after paragraph (c) insert—
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“(ca)
a copy of a report which has been sent to a local authority under
section 13A(3) of the Local Government Act 1999 and to the
Secretary of State under section 13A(4A) of that Act;”.
(4)
In subsection (2) for “invite” substitute “require”.
(5)
After subsection (2) insert—
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“(2A)
A requirement under subsection (2) above may specify—
(a)
any information or description of information to be provided;
(b)
the form and manner in which the information is to be
provided.
(2B)
The authority must respond to a requirement under subsection (2)
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above before the end of such period (not less than one month after the

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Part 2 — Housing benefit and council tax benefit
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day on which the requirement is made) as the Secretary of State
specifies in the requirement.
(2C)
The Secretary of State may extend the period specified under
subsection (2B) above.”
(6)
For subsection (3) substitute—
5
“(3)
After considering—
(a)
the report,
(b)
any proposals made by the authority in response to it, and
(c)
any other information he thinks is relevant,

the Secretary of State may give directions to the authority under
10
subsection (3A) or (3B) or both.
(3A)
Directions under this subsection are directions as to—
(a)
standards which the authority is to attain in the prevention and
detection of fraud relating to benefit or otherwise in the
administration of benefit;
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(b)
the time within which the standards are to be attained.
(3B)
Directions under this subsection are directions to take such action as the
Secretary of State thinks necessary or expedient for the purpose of
improving the authority’s exercise of its functions—
(a)
in relation to the prevention and detection of fraud relating to
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benefit;
(b)
otherwise in relation to the administration of benefit.
(3C)
A direction under subsection (3B) may specify the time within which
anything is to be done.”
(7)
In subsection (4), for “subsection (3)” substitute “subsection (3A)”.
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(8)
After subsection (4) insert—
“(4A)
If the Secretary of State proposes to give a direction under this section
he must give the authority to which the direction is to be addressed an
opportunity to make representations about the proposed direction.
(4B)
The Secretary of State may specify a period within which
30
representations mentioned in subsection (4A) above must be made.
(4C)
The Secretary of State may extend a period specified under subsection
(4B) above.
(4D)
Subsections (4A) to (4C) do not apply if the Secretary of State thinks that
it is necessary for a direction to be given as a matter of urgency.
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(4E)
If the Secretary of State acts under subsection (4D) he must give in
writing to the authority to which the direction is addressed his reasons
for doing so.”
(9)
After section 139D of that Act insert—
“139DA
Directions: variation and revocation
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(1)
The Secretary of State may at any time in accordance with this section
vary or revoke a direction under section 139D above.

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Part 3 — Social security administration: general
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(2)
A direction may be varied or revoked only if the Secretary of State
thinks it is necessary to do so—
(a)
in consequence of representations made by the authority to
which the direction is addressed,
(b)
to rectify an omission or error, or
5
(c)
in consequence of a material change in circumstances.
(3)
The Secretary of State must not vary a direction unless he first—
(a)
sends a copy of the proposed variation to the authority
concerned,
(b)
gives the authority his reasons for making the variation, and
10
(c)
gives the authority an opportunity to make representations
about the proposed variation.
(4)
The Secretary of State may specify a period of not less than one month
within which representations mentioned in subsection (3)(c) above
must be made.
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(5)
The Secretary of State may extend a period specified under subsection
(4) above.”
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Minor and consequential amendments relating to Part 2
Schedule 5 (which makes miscellaneous minor amendments and amendments
consequential on this Part) has effect.
20
Part 3
Social security administration: general
Sharing of social security information
40
Social security information
(1)
In the Administration Act, after section 7A (sharing of functions as regards
25
certain claims and information) insert—
“7B
Use of social security information
(1)
A relevant authority may use for a relevant purpose any social security
information which it holds.
(2)
Regulations may make provision as to the procedure to be followed by
30
a relevant authority for the purposes of any function it has relating to
the administration of a specified benefit if the authority holds social
security information which—
(a)
is relevant for the purposes of anything which may or must be
done by the authority in connection with a claim for or an
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award of the benefit, and
(b)
was used by another relevant authority in connection with a
claim for or an award of a different specified benefit or was
verified by that other authority in accordance with regulations
under section 7A(2)(e) above.
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