Welfare Reform Bill

House of Commons

Session 2006 - 07
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Welfare Reform Bill

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

     (13)
In paragraph 5 of Schedule 3 (contribution conditions for widowed mother’s
allowance etc.), after sub-paragraph (6) insert—
   “(6A)
The first condition shall be taken to be satisfied if the contributor
concerned was entitled to main phase employment and support
allowance at any time during—
5
(a)
the year in which he attained pensionable age or died
under that age, or
(b)
the year immediately preceding that year.
     (6B)
The reference in sub-paragraph (6A) to main phase employment
and support allowance is to an employment and support
10
allowance in the case of which the calculation of the amount
payable in respect of the claimant includes an addition under
section 2(1)(b) or 4(2)(b) of the Welfare Reform Act 2007 (addition
where conditions of entitlement to support component or work-
related activity component satisfied).”
15
Social Security Administration Act 1992 (c. 5)
10    (1)
The Administration Act is amended as follows.
      (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;”.
20
      (3)
In section 2AA (full entitlement to certain benefits conditional on work-
focused interview for partner) in subsection (2) (benefits to which section
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
25
subsection (2) (benefits to which section applies), after paragraph (ab)
insert—
“(ac)
an employment and support allowance;”.
      (5)
In section 15A (payment out of benefit of sums in respect of mortgage
interest etc.)—
30
(a)
in subsection (1) (cases in which section applies), 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”;
(b)
in subsection (4), in the definition of “qualifying associate”, for “or
35
state pension credit” substitute “, state pension credit or an income-
related employment and support allowance” and for “or the State
Pension Credit Act 2002” substitute “, the State Pension Credit Act
2002 or Part 1 of the Welfare Reform Act 2007”;
(c)
in that subsection, in the definition of “relevant benefits”, after
40
paragraph (c) insert—
“(d)
an employment and support allowance;”.
      (6)
In section 71 (overpayments), in subsection (11) (benefits to which section
applies), after paragraph (ab) insert—
“(ac)
an employment and support allowance;”.
45
      (7)
In section 73 (overlapping benefits)—

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Schedule 3 — Consequential amendments relating to Part 1
61

(a)
in subsection (1), after “contribution-based jobseeker’s allowance”
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)—
5
(a)
in subsections (1)(b) and (2)(b), for “or state pension credit”
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
10
an income-related employment and support allowance”.
      (9)
In section 74A (payment of benefit where maintenance payments collected
by Secretary of State), in subsection (7) (benefits to which section applies),
after “an income-based jobseeker’s allowance” insert “, an income-related
employment and support allowance”.
15
     (10)
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”
20
insert “or an income-related employment and support allowance”.
     (11)
In section 109(1) (diversion of arrested earnings to the Secretary of State -
Scotland), after “income support”, in both places, insert “or an income-
related employment and support allowance”.
     (12)
In section 121DA (interpretation of Part 6), in subsection (1) (definition of
25
“relevant social security legislation”), after paragraph (hh) insert—
“(hi)
Part 1 of the Welfare Reform Act 2007;”.
     (13)
In section 122ZA (supply of tax information to assess certain employment or
training schemes), in subsection (6)(b), after “the Jobseekers Act 1995 (c. 18)”
insert “, Part 1 of the Welfare Reform Act 2007”.
30
     (14)
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 2007”.
     (15)
In section 122C (supply of information to authorities administering benefit),
in subsection (6)(b), after “the Jobseekers Act 1995” insert “, Part 1 of the
35
Welfare Reform Act 2007”.
     (16)
In section 124 (provisions relating to age, death and marriage), in subsection
(1), before “and” at the end of paragraph (ab) insert—
“(ac)
of the provisions of Part 1 of the Welfare Reform Act 2007;”.
     (17)
In section 125 (regulations as to notification of death), in subsection (1), after
40
“the State Pension Credit Act 2002” insert “, Part 1 of the Welfare Reform Act
2007”.
     (18)
In section 126 (personal representatives to give information about the estate
of a deceased person who was in receipt of certain benefits), in subsection
(1), after “state pension credit” insert “, an income-related employment and
45
support allowance”.

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Schedule 3 — Consequential amendments relating to Part 1
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     (19)
In section 130 (duties of employers: statutory sick pay), in subsection (1)
(power to require employer to supply information in connection with
making of claim for certain benefits by employee), at the end insert—
“(f)
an employment and support allowance.”
     (20)
In section 132 (power to require employers to provide information in
5
connection with claims to certain benefits), in subsection (1), after paragraph
(a) insert—
“(aa)
an employment and support allowance;”.
     (21)
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
10
Credit Act 2002” substitute “, the State Pension Credit Act 2002 or Part 1 of
the Welfare Reform Act 2007”.
     (22)
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
15
employment and support allowance,”;
(b)
in subsection (6), in the definition of “component”, at the end insert—
“(c)
in relation to a contributory employment and
support allowance, means any of the sums
specified in regulations under Part 1 of the
20
Welfare Reform Act 2007 which are relevant
in calculating the amount payable by way of a
contributory employment and support
allowance;”.
     (23)
After section 159B insert—
25
“159C
Effect of alteration of rates of an employment and support allowance
(1)
Subject to such exceptions and conditions as may be prescribed,
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
30
(b)
an alteration—
(i)
in any component of the allowance,
(ii)
in the recipient’s benefit income, or
(iii)
in the recipient’s war disablement or war widow’s or
widower’s pension,
35

affects the computation of the amount of the employment
and support allowance to which he is entitled.
(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
40
employment and support allowance payable in the case of the
recipient under the award shall be the increased or reduced amount,
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
45
and after the commencing date to be entitled to the same amount by
way of an employment and support allowance as before, the award
shall continue in force accordingly.

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Schedule 3 — Consequential amendments relating to Part 1
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(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 2007 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
     (24)
After section 160A insert—
“160B
Implementation of increases in employment and support allowance
due to attainment of particular ages
(1)
This section applies where—

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Schedule 3 — Consequential amendments relating to Part 1
64

(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 2007.”
     (25)
In section 164 (destination of repayments), in subsection (1), after “section 38
of the Jobseekers Act 1995” insert “, section 26 of the Welfare Reform Act
30
2007”.
     (26)
In section 165(6)(a) (under which no adjustment between the National
Insurance Fund and the Consolidated Fund is required for administrative
expenses of the Secretary of State relating to benefits payable out of money
provided by Parliament), for “or section 20 of the State Pension Credit Act
35
2002” substitute “, section 20 of the State Pension Credit Act 2002 or section
26 of the Welfare Reform Act 2007”.
     (27)
In section 166 (financial review and report), in subsection (2) (duty at end of
each review period to review operation of certain provisions)—
(a)
after paragraph (b) insert—
40
“(ba)
the provisions of Part 1 of the Welfare Reform Act
2007 relating to contributory employment and
support allowance;”;
(b)
in paragraph (c), for “and (b)” substitute “to (ba)”.
     (28)
In section 170 (Social Security Advisory Committee), in subsection (5)—
45
(a)
in the definition of “the relevant enactments”, after paragraph (ai)

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Schedule 3 — Consequential amendments relating to Part 1
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insert—
“(aia)
the provisions of Part 1 of the Welfare Reform Act
2007;”;
(b)
in the definition of “the relevant Northern Ireland enactments”, after
paragraph (ai) insert—
5
“(aia)
any provisions in Northern Ireland which correspond
to provisions of Part 1 of the Welfare Reform Act
2007;”.
     (29)
In section 179 (reciprocal agreements with countries outside the United
Kingdom)—
10
(a)
in subsection (3)(a), after “the State Pension Credit Act 2002” insert “,
Part 1 of the Welfare Reform Act 2007”;
(b)
in subsection (4), before “and” at the end of paragraph (ae) insert
“and
(af)
Part 1 of the Welfare Reform Act 2007;”;
15
(c)
in subsection (5), after paragraph (ab) insert—
“(ac)
employment and support allowance;”.
     (30)
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 2007”.
20
     (31)
In section 187 (certain benefits to be inalienable), in subsection (1), after
paragraph (ab) insert—
“(ac)
an employment and support allowance;”.
     (32)
In section 191 (general interpretation)—
(a)
in the definition of “benefit”, for “and state pension credit” substitute
25
“, 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 2007 (employment and support
30
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 2007 (employment and
35
support allowance);”.
Local Government Finance Act 1992 (c. 14)
11    (1)
The Local Government Finance Act 1992 is amended as follows.
      (2)
In Schedule 4 (enforcement in England and Wales)—
(a)
in paragraph 6 (deductions from income support etc.), in sub-
40
paragraphs (1) and (2)(b), for “or state pension credit” substitute “,
state pension credit or an income-related employment and support
allowance”;
(b)
in paragraph 12 (relationship between remedies), after sub-

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Schedule 3 — Consequential amendments relating to Part 1
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paragraph (1)(bb) insert—
“(bc)
deductions from income-related employment and
support allowance may be resorted to more than
once.”’;
(c)
after paragraph 20 insert—
5
“21
In this Schedule, “income-related employment and
support allowance” means an income-related allowance
under Part 1 of the Welfare Reform Act 2007 (employment
and support allowance).”
      (3)
In Schedule 8 (enforcement in Scotland)—
10
(a)
in paragraph 6 (deductions from income support etc.), in sub-
paragraphs (1) and (2)(b), for “or state pension credit” substitute “,
state pension credit or an income-related employment and support
allowance”;
(b)
in that paragraph, at the end insert—
15
    “(3)
In this paragraph, “income-related employment and
support allowance” means an income-related allowance
under Part 1 of the Welfare Reform Act 2007 (employment
and support allowance).”
Jobseekers Act 1995 (c. 18)
20
12    (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—
“(f)
does not have limited capability for work;”.
      (3)
In section 3 (income-based conditions), in subsection (1)—
25
(a)
in paragraph (b), for “or state pension credit” substitute “, state
pension credit or an income-related employment and support
allowance”;
(b)
after paragraph (dd) insert—
“(de)
is not a member of a couple the other member of
30
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),
after paragraph (cc) insert—
“(cd)
that neither member of the couple is entitled to an income-
35
related employment and support allowance;”.
      (5)
In section 35 (interpretation)—
(a)
in subsection (1), after the definition of “income-based jobseeker’s
allowance” insert—
““income-related employment and support allowance”
40
means an income-related allowance under Part 1 of
the Welfare Reform Act 2007 (employment and
support allowance);”;
(b)
in subsection (2), for “capable of work” substitute “limited capability
for work”.
45
      (6)
In Schedule 1 (supplementary provisions), for paragraph 2, and the italic