Welfare Reform Bill

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Welfare Reform Bill

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

Schedule 2
Section 21

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
55

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
56

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
57

Schedule 3
Section 27

Consequential amendments relating to Part 1
Social Work (Scotland) Act 1968 (c. 49)
1
In section 78(2A) of the Social Work (Scotland) Act 1968 (which exempts
persons in receipt of certain benefits from liability for contributions in
5
respect of children in care etc.), after “1995)” insert “, an income-related
allowance under Part 1 of the Welfare Reform Act 2007 (employment and
support allowance)”.
Education (Scotland) Act 1980 (c. 41)
2
In section 53(3) of the Education (Scotland) Act 1980 (pupils who qualify for
10
free school meals etc.), in paragraphs (a) and (b), after sub-paragraph (ii)
insert—
“(iia)
an income-related allowance under Part 1 of the
Welfare Reform Act 2007 (employment and support
allowance);”.
15
Transport Act 1982 (c. 49)
3
In section 70 of the Transport Act 1982 (payments in respect of applicants for
exemption from wearing seat belts), in subsection (2) (applicants who
qualify), in paragraph (b), for “or an income-based jobseeker’s allowance
(payable under the Jobseekers Act 1995)” substitute “, an income-based
20
jobseeker’s allowance (payable under the Jobseekers Act 1995), an income-
related allowance under Part 1 of the Welfare Reform Act 2007 (employment
and support allowance),”.
Legal Aid (Scotland) Act 1986 (c. 47)
4     (1)
The Legal Aid (Scotland) Act 1986 is amended as follows.
25
      (2)
In section 8(b) (under which persons in receipt of certain benefits are eligible
for advice and assistance), for the words from second “or” to the end
substitute “, an income-based jobseeker’s allowance (payable under the
Jobseekers Act 1995) or an income-related allowance under Part 1 of the
Welfare Reform Act 2007 (employment and support allowance),”.
30
      (3)
In section 11(2)(b) (under which persons not in receipt of certain benefits are
liable to contribute to the cost of advice and assistance), for the words from
second “or” to the end substitute “, an income-based jobseeker’s allowance
(payable under the Jobseekers Act 1995) or an income-related allowance
under Part 1 of the Welfare Reform Act 2007 (employment and support
35
allowance),”.
Income and Corporation Taxes Act 1988 (c. 1)
5     (1)
Section 347B of the Income and Corporation Taxes Act 1988 (qualifying
maintenance payments) is amended as follows.
      (2)
In subsection (12) (payments to be treated as maintenance payments), at the
40

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

end of paragraph (b) insert “; or
“(iii)
made by virtue of section 22 of the Welfare Reform
Act 2007 (recovery of sums in respect of
maintenance), or any corresponding enactment in
Northern Ireland, in respect of an income-related
5
employment and support allowance claimed by any
other person,”.
      (3)
For subsection (13) substitute—
“(13)
In subsection (12)—
“income-based jobseeker’s allowance” has the same meaning as
10
in the Jobseekers Act 1995 or, for Northern Ireland, the same
meaning as in any corresponding enactment in Northern
Ireland;
“income-related employment and support allowance” means
an income-related allowance under Part 1 of the Welfare
15
Reform Act 2007 (employment and support allowance) or,
for Northern Ireland, under any corresponding enactment in
Northern Ireland.”
Children Act 1989 (c. 41)
6     (1)
The Children Act 1989 is amended as follows.
20
      (2)
In section 17 (provision of services for children in need, their families and
others), in subsection (9) (persons exempt from repayment of assistance), for
“or of an income-based jobseeker’s allowance” substitute “, of an income-
based jobseeker’s allowance or of an income-related employment and
support allowance”.
25
      (3)
In section 17A (direct payments), in subsection (5) (persons in relation to
whom special provision applies), in paragraph (b), for “or of an income-
based jobseeker’s allowance” substitute “, of an income-based jobseeker’s
allowance or of an income-related employment and support allowance”.
      (4)
In section 29 (recoupment of costs of providing services etc.), in subsections
30
(3) and (3A) (exempt persons), for “or of an income-based jobseeker’s
allowance” substitute “, of an income-based jobseeker’s allowance or of an
income-related employment and support allowance”.
      (5)
In section 105 (interpretation), in subsection (1), after the definition of
“income-based jobseeker’s allowance” insert—
35
““income-related employment and support allowance” means
an income-related allowance under Part 1 of the Welfare
Reform Act 2007 (employment and support allowance);”.
      (6)
In Schedule 2 (local authority support for children and families), in
paragraph 21(4) (persons exempt from liability to contribute to maintenance
40
of children looked after by local authority), for “or of an income-based
jobseeker’s allowance” substitute “, of an income-based jobseeker’s
allowance or of an income-related employment and support allowance”.
Child Support Act 1991 (c. 48)
7     (1)
The Child Support Act 1991 is amended as follows.
45

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

      (2)
In section 6 as amended by the Child Support, Pensions and Social Security
Act 2000 (c. 19) (applications by those claiming or receiving benefit), in
subsection (1), after “income-based jobseeker’s allowance” insert “, an
income-related employment and support allowance”.
      (3)
In that section as it has effect apart from the Child Support, Pensions and
5
Social Security Act 2000 (applications by those receiving benefit), in
subsection (1), after “income-based jobseeker’s allowance” insert “, an
income-related employment and support allowance”.
      (4)
In section 46 as amended by the Child Support, Pensions and Social Security
Act 2000 (reduced benefit decisions), in subsection (10)(c) (definition of
10
“relevant benefit”), for “or an income-based jobseeker’s allowance”
substitute “, an income-based jobseeker’s allowance, an income-related
employment and support allowance”.
      (5)
In that section as it has effect apart from the Child Support, Pensions and
Social Security Act 2000 (failure to comply with obligations imposed by
15
section 6), in subsection (11), in the definition of “relevant benefit”, after
“income-based jobseeker’s allowance” insert “, an income-related
employment and support allowance”.
      (6)
In section 47(3)(b) (persons to be exempted from payment of fees), after
“income-based jobseeker’s allowance,” insert “an income-related
20
employment and support allowance,”.
      (7)
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
25
Reform Act 2007 (employment and support allowance);”.
      (8)
In Part 1 of Schedule 1 as it has effect apart from the Child Support, Pensions
and Social Security Act 2000 (calculation of child support maintenance), in
paragraph 5(4) (parents who are to be taken to have no assessable calculable
income), after “income-based jobseeker’s allowance” insert “, an income-
30
related employment and support allowance”.
Criminal Justice Act 1991 (c. 53)
8
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
35
“, 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
40
the Welfare Reform Act 2007 (employment and
support allowance);”.
Social Security Contributions and Benefits Act 1992 (c. 4)
9     (1)
The Contributions and Benefits Act is amended as follows.
      (2)
In section 6A (notional payment of primary Class 1 contribution where
45
earnings not less than lower earnings limit), in subsection (3) (purposes for

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

which Class 1 contribution treated as paid), at the end insert “; and
(e)
any purposes relating to employment and support
allowance.”
      (3)
In section 22 (earnings factors)—
(a)
in subsection (2) (purposes for which a person may be treated as
5
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
contributions), after “jobseeker’s allowance” insert “, to a
10
contributory employment and support allowance”.
      (4)
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
Act 2007 (employment and support allowance).”
15
      (5)
Sections 30A to 30E (incapacity benefit) cease to have effect.
      (6)
In section 61A (contributions paid in error), in subsection (3), at the end of
paragraph (c) insert “and”.
      (7)
In section 88 (increases of benefits to be in respect of only one adult
dependant), for “86A” substitute “85”.
20
      (8)
In section 89(1) and (1A) (earnings to include occupational and personal
pensions etc. for purposes of provisions relating to increases of benefits in
respect of adult dependants), for “to 86A” substitute “to 85”.
      (9)
In section 124 (income support), in subsection (1), after paragraph (g) insert
“; and
25
(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
support allowance.”
     (10)
At the end of section 124 insert—
30
“(7)
In this section, “income-related employment and support allowance”
means an income-related allowance under Part 1 of the Welfare
Reform Act 2007 (employment and support allowance).”
     (11)
In section 150 (interpretation of Part 10: Christmas bonus)—
(a)
in subsection (1) (definition of “qualifying benefit”), after paragraph
35
(b) insert—
“(ba)
a qualifying employment and support allowance;”;
(b)
in subsection (2), after the definition of “the qualifying age for state
pension credit” insert—
““qualifying employment and support allowance”
40
means an employment and support allowance under
Part 1 of the Welfare Reform Act 2007 the calculation
of the amount of which includes an addition in
respect of the support component or the work-related
activity component;”.
45
     (12)
Sections 171A to 171G (incapacity for work) cease to have effect.