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Welfare Reform Bill


Welfare Reform Bill
Part 1 — Employment and support allowance

15

 

(2)   

Regulations under subsection (1) shall provide for any such disqualification, or

treatment, to be for such period not exceeding 6 weeks as may be determined

in accordance with Chapter 2 of Part 1 of the Social Security Act 1998 (c. 14).

(3)   

Regulations may prescribe for the purposes of subsection (1)—

(a)   

matters which are, or are not, to be taken into account in determining

5

whether a person has good cause for any act or omission;

(b)   

circumstances in which a person is, or is not, to be regarded as having

good cause for any act or omission.

(4)   

Except where regulations otherwise provide, a person shall be disqualified for

receiving a contributory allowance for any period during which he is—

10

(a)   

absent from Great Britain, or

(b)   

undergoing imprisonment or detention in legal custody.

18      

Pilot schemes

(1)   

Any regulations to which this subsection applies may be made so as to have

effect for a specified period not exceeding 24 months.

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(2)   

Subject to subsection (3), subsection (1) applies to—

(a)   

regulations which are made under any provision of this Part, other than

sections 3, 8 and 9;

(b)   

regulations which are made under the Administration Act, so far as

they relate to an employment and support allowance.

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(3)   

Subsection (1) only applies to regulations if they are made with a view to

ascertaining whether their provisions will or will be likely to—

(a)   

encourage persons to obtain or remain in work, or

(b)   

make it more likely that persons will obtain or remain in work or be

able to do so.

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(4)   

Regulations which, by virtue of subsection (1), are to have effect for a limited

period are referred to in this section as a “pilot scheme”.

(5)   

A pilot scheme may provide that its provisions are to apply only in relation

to—

(a)   

one or more specified areas;

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(b)   

one or more specified classes of person;

(c)   

persons selected—

(i)   

by reference to prescribed criteria, or

(ii)   

on a sampling basis.

(6)   

A pilot scheme may make consequential or transitional provision with respect

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to the cessation of the scheme on the expiry of the specified period.

(7)   

A pilot scheme may be replaced by a further pilot scheme making the same or

similar provision.

19      

Relationship with statutory payments

(1)   

A person is not entitled to an employment and support allowance in respect of

40

a day if, for the purposes of statutory sick pay, that day—

(a)   

is a day of incapacity for work in relation to a contract of service, and

 
 

Welfare Reform Bill
Part 1 — Employment and support allowance

16

 

(b)   

falls within a period of entitlement (whether or not it is a qualifying

day).

(2)   

Except as regulations may provide, a woman who is entitled to statutory

maternity pay is not entitled to a contributory allowance in respect of a day that

falls within the maternity pay period.

5

(3)   

Regulations may provide that—

(a)   

an amount equal to a woman’s statutory maternity pay for a period

shall be deducted from a contributory allowance in respect of the same

period,

(b)   

a woman shall only be entitled to a contributory allowance if there is a

10

balance after the deduction, and

(c)   

if there is such a balance, a woman shall be entitled to a contributory

allowance at a weekly rate equal to it.

(4)   

Except as regulations may provide, a person who is entitled to statutory

adoption pay is not entitled to a contributory allowance in respect of a day that

15

falls within the adoption pay period.

(5)   

Regulations may provide that—

(a)   

an amount equal to a person’s statutory adoption pay for a period shall

be deducted from a contributory allowance in respect of the same

period,

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(b)   

a person shall only be entitled to a contributory allowance if there is a

balance after the deduction, and

(c)   

if there is such a balance, a person shall be entitled to a contributory

allowance at a weekly rate equal to it.

(6)   

Except as regulations may provide, a person who is entitled to additional

25

statutory paternity pay is not entitled to a contributory allowance in respect of

a day that falls within the additional paternity pay period.

(7)   

Regulations may provide that—

(a)   

an amount equal to a person’s additional statutory paternity pay for a

period shall be deducted from a contributory allowance in respect of

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the same period,

(b)   

a person shall only be entitled to a contributory allowance if there is a

balance after the deduction, and

(c)   

if there is such a balance, a person shall be entitled to a contributory

allowance at a weekly rate equal to it.

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(8)   

In this section—

“additional paternity pay period” has the meaning given in section

171ZEE(2) of the Contributions and Benefits Act;

“adoption pay period” has the meaning given in section 171ZN(2) of that

Act;

40

“maternity pay period” has the meaning given in section 165(1) of that

Act.

20      

Deemed entitlement for other purposes

Regulations may provide for a person who would be entitled to an

employment and support allowance but for the operation of any provision of,

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or made under, this Part, the Administration Act or Chapter 2 of Part 1 of the

 
 

Welfare Reform Bill
Part 1 — Employment and support allowance

17

 

Social Security Act 1998 (c. 14) (social security decisions and appeals) to be

treated as if entitled to the allowance for the purposes of any rights or

obligations (whether his own or another’s) which depend on his entitlement,

other than the right to payment of it.

21      

Supplementary provisions

5

Schedule 2 (which contains further provisions in relation to an employment

and support allowance) has effect.

22      

Recovery of sums in respect of maintenance

(1)   

Regulations may make provision for the court to have power to make a

recovery order against any person where an award of income-related

10

allowance has been made to that person’s spouse or civil partner.

(2)   

The reference in subsection (1) to a recovery order is to an order requiring the

person against whom it is made to make payments to the Secretary of State or

to such other person or persons as the court may determine.

(3)   

Regulations under subsection (1) may include—

15

(a)   

provision as to the matters to which the court is, or is not, to have

regard in determining any application under the regulations;

(b)   

provision as to the enforcement of orders under the regulations;

(c)   

provision for the transfer by the Secretary of State of the right to receive

payments under, and to exercise rights in relation to, orders under the

20

regulations.

(4)   

In this section, “the court” means—

(a)   

in relation to England and Wales, a magistrates’ court;

(b)   

in relation to Scotland, the sheriff.

General

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23      

Interpretation of Part 1

(1)   

In this Part—

“claimant” means a person who has claimed an employment and support

allowance;

“contributory allowance” has the meaning given by section 1(7);

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“employment” and “employed” have the meanings prescribed for the

purposes of this Part;

“entitled”, in relation to an employment and support allowance, is to be

construed in accordance with—

(a)   

the provisions of this Act,

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(b)   

section 1 of the Administration Act (entitlement dependent on

making of claim), and

(c)   

section 27 of the Social Security Act 1998 (c. 14) (restrictions on

entitlement in certain cases of error);

“income-related allowance” has the meaning given by section 1(7);

40

“income support” means income support under section 124 of the

Contributions and Benefits Act;

 
 

Welfare Reform Bill
Part 1 — Employment and support allowance

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“limited capability for work” shall be construed in accordance with

section 1(4);

“limited capability for work-related activity” shall be construed in

accordance with section 2(5);

“period of limited capability for work” has the meaning prescribed for the

5

purposes of this Part;

“prescribed” means specified in, or determined in accordance with,

regulations;

“regulations” means regulations made by the Secretary of State;

“week” means a period of 7 days beginning with a Sunday or such other

10

period of 7 days as may be prescribed;

“work-related activity” has the meaning given by section 12(7).

(2)   

For the purposes of this Part, the assessment phase, in relation to a claimant, is

the period—

(a)   

beginning, subject to subsection (3), with the first day of the period for

15

which he is entitled to an employment and support allowance, and

(b)   

ending with such day as may be prescribed.

(3)   

Regulations may prescribe circumstances in which the assessment phase is to

begin with such day as may be prescribed.

(4)   

For the purposes of this Part, a person is a member of the support group if he

20

is a person in respect of whom it is determined that he has, or is to be treated

as having, limited capability for work-related activity.

24      

Regulations

(1)   

Any power under this Part to make regulations shall be exercisable by

statutory instrument.

25

(2)   

Any such power may be exercised—

(a)   

in relation to all cases to which it extends,

(b)   

in relation to those cases subject to specified exceptions, or

(c)   

in relation to any specified cases or classes of case.

(3)   

Any such power may be exercised so as to make, as respects the cases in

30

relation to which it is exercised—

(a)   

the full provision to which the power extends or any less provision

(whether by way of exception or otherwise);

(b)   

the same provision for all cases in relation to which it is exercised, or

different provision for different cases or different classes of case or

35

different provision as respects the same case or class of case for

different purposes of this Part;

(c)   

any such provision either unconditionally or subject to any specified

condition.

(4)   

Where any such power is expressed to be exercisable for alternative purposes,

40

it may be exercised in relation to the same case for all or any of those purposes.

(5)   

Any such power includes power—

(a)   

to make such incidental, supplementary, consequential or transitional

provision or savings as appear to the Secretary of State to be expedient;

(b)   

to provide for a person to exercise a discretion in dealing with any

45

matter.

 
 

Welfare Reform Bill
Part 1 — Employment and support allowance

19

 

(6)   

Without prejudice to the generality of the provisions of this section, regulations

under any of sections 10 to 14 may make provision which applies only in

relation to an area or areas specified in the regulations.

(7)   

The fact that a power to make regulations is conferred by this Part is not to be

taken to prejudice the extent of any other power to make regulations so

5

conferred.

25      

Parliamentary control

(1)   

None of the following regulations shall be made unless a draft of the statutory

instrument containing them has been laid before and approved by a resolution

of each House of Parliament—

10

(a)   

the first regulations under section 12;

(b)   

regulations which by virtue of section 18(1) are to have effect for a

limited period.

(2)   

A statutory instrument that—

(a)   

contains regulations made under this Part, and

15

(b)   

is not subject to a requirement that a draft of the instrument be laid

before, and approved by a resolution of, each House of Parliament,

   

shall be subject to annulment in pursuance of a resolution of either House of

Parliament.

26      

Financial provisions relating to Part 1

20

(1)   

There shall be paid out of the National Insurance Fund so much of any sums

payable by way of employment and support allowance as is attributable to

entitlement to a contributory allowance.

(2)   

There shall be paid out of money provided by Parliament—

(a)   

so much of any sums payable by way of employment and support

25

allowance as is attributable to entitlement to an income-related

allowance, and

(b)   

any administrative expenses of the Secretary of State or the

Commissioners for Her Majesty’s Revenue and Customs in carrying

this Part into effect.

30

(3)   

The Secretary of State shall pay into the National Insurance Fund sums

estimated by him to be equivalent in amount to sums recovered by him in

connection with payments of contributory allowance.

(4)   

The Secretary of State shall pay into the Consolidated Fund sums estimated by

him to be equivalent in amount to sums recovered by him in connection with

35

payments made by way of income-related allowance.

27      

Consequential amendments relating to Part 1

(1)   

Schedule 3 (which makes amendments consequential on this Part) has effect.

(2)   

Regulations may make provision consequential on this Part amending,

repealing or revoking any provision of—

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(a)   

an Act passed on or before the last day of the Session in which this Act

is passed, or

(b)   

an instrument made under an Act before the passing of this Act.

 
 

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

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(3)   

In subsection (2), “Act” includes an Act of the Scottish Parliament.

28      

Transition relating to Part 1

Schedule 4 (which makes provision with respect to transition in relation to this

Part) has effect.

Part 2

5

Housing benefit and council tax benefit

29      

Local housing allowance

(1)   

In section 130 of the Contributions and Benefits Act (housing benefit)

subsection (4) ceases to have effect.

(2)   

After that section insert—

10

“130A   

Appropriate maximum housing benefit

(1)   

For the purposes of section 130 above, the appropriate maximum

housing benefit (in this section referred to as “the AMHB”) is

determined in accordance with this section.

(2)   

Regulations must prescribe the manner in which the AMHB is to be

15

determined.

(3)   

The regulations may provide for the AMHB to be ascertained in the

prescribed manner by reference to rent officer determinations.

(4)   

The regulations may require an authority administering housing

benefit in any prescribed case—

20

(a)   

to apply for a rent officer determination, and

(b)   

to do so within such time as may be specified in the regulations.

(5)   

The regulations may make provision as to the circumstances in which,

for the purpose of determining the AMHB, the amount of the liability

mentioned in section 130(1)(a) above must be taken to be the amount of

25

a rent officer determination instead of the actual amount of that

liability.

(6)   

Regulations under subsection (5) may also make provision for the

liability of a person who, by virtue of regulations under section 137(2)(j)

below, is treated as having a liability mentioned in section 130(1)(a)

30

above to be the amount of a rent officer determination.

(7)   

A rent officer determination is a determination made by a rent officer

in the exercise of functions under section 122 of the Housing Act 1996.”

(3)   

In Schedule 7 to the Child Support, Pensions and Social Security Act 2000

(c. 19) (housing benefit and council tax benefit: revisions and appeals), in

35

paragraph 4—

(a)   

in sub-paragraph (1) for “sub-paragraph (4)” substitute “sub-

paragraphs (4) and (4A)”;

(b)   

after sub-paragraph (4) insert—

   “(4A)  

Regulations may prescribe the cases and circumstances in

40

which, and the procedure by which, a decision relating to

 
 

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

21

 

housing benefit must be made by the appropriate relevant

authority.”

30      

Loss of housing benefit following eviction for anti-social behaviour, etc.

(1)   

After section 130A of the Contributions and Benefits Act (inserted by section

29) insert—

5

“130B   

Loss of housing benefit following eviction on certain grounds

(1)   

If the following conditions are satisfied, then housing benefit is payable

in the case of a person (“the former occupier”) subject to subsection

(4)—

(a)   

a court makes a relevant order for possession of a dwelling

10

occupied by him as his home;

(b)   

in consequence of the order he ceases to occupy the dwelling;

(c)   

either of the conditions in subsections (2) and (3) is satisfied;

and

(d)   

the conditions for entitlement to housing benefit are or become

15

satisfied with respect to him.

(2)   

The condition in this subsection is that the former occupier fails,

without good cause, to comply with a warning notice served on him by

a relevant local authority in England and Wales after he has ceased to

occupy the dwelling.

20

(3)   

The condition in this subsection is that—

(a)   

the former occupier was, after he ceased to occupy the dwelling,

required by a relevant local authority in Scotland to take

specified action with the aim mentioned in subsection (10),

(b)   

the former occupier was warned by the relevant local authority

25

that if he failed to comply with the requirement the amount of

housing benefit payable to him would be affected,

(c)   

the former occupier fails, without good cause, to comply with

the requirement, and

(d)   

the relevant local authority recommends that housing benefit be

30

payable to the former occupier subject to subsection (4).

(4)   

During the restriction period or such part of it as may be prescribed,

one or both of the following applies—

(a)   

the rate of the benefit is reduced in such a manner as may be

prescribed;

35

(b)   

the benefit is payable only if the circumstances are such as may

be prescribed.

(5)   

The restriction period begins with the earliest date on which the

conditions set out in subsections (1) to (3) are satisfied.

(6)   

That period stops running if the relevant local authority considers that

40

the restriction set out in subsection (4) should no longer apply (whether

because the former occupier is taking action to improve his behaviour

or for any other reason), but starts running again if—

(a)   

in England and Wales, the former occupier fails to comply with

a further warning notice served on him;

45

(b)   

in Scotland, the condition in subsection (7) is satisfied.

 
 

 
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