Welfare Reform Bill

House of Commons

Session 2008 - 09
Internet Publications
Other Bills before Parliament

Welfare Reform Bill

Welfare Reform Bill
Part 1 — Social security
1

A
Bill
To
Amend the law relating to social security; to make provision enabling disabled
people to be given greater control over the way in which certain public
services are provided for them; to amend the law relating to child support; to
make provision about the registration of births; and for connected purposes.
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
Part 1
Social security
“Work for your benefit” schemes etc.
1
Schemes for assisting persons to obtain employment: “work for your benefit”
schemes etc.
5
(1)
The Jobseekers Act 1995 (c. 18) is amended as follows.
(2)
After section 17 insert—
““Work for your benefit” schemes etc.
17A
Schemes for assisting persons to obtain employment: “work for your
benefit” schemes etc.
10
(1)
Regulations may make provision for or in connection with imposing on
claimants in prescribed circumstances a requirement to participate in
schemes of any prescribed description that are designed to assist them
to obtain employment.
(2)
Regulations under this section may, in particular, require participants
15
to undertake work, or work-related activity, during any prescribed
period with a view to improving their prospects of obtaining
employment.

Bill 8
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(3)
In subsection (2) “work-related activity”, in relation to any person,
means activity which makes it more likely that the person will obtain or
remain in work or be able to do so.
(4)
Regulations under this section may not require a person to participate
in a scheme unless the person would (apart from the regulations) be
5
required to meet the jobseeking conditions.
(5)
Regulations under this section may, in particular, make provision—
(a)
for notifying participants of the requirement to participate in a
scheme within subsection (1);
(b)
for securing that participants are not required to meet the
10
jobseeking conditions or are not required to meet such of those
conditions as are specified in the regulations;
(c)
for suspending any jobseeker’s agreement to which a person is
a party for any period during which the person is a participant;
(d)
for securing that the appropriate consequence follows if a
15
participant has failed to comply with the regulations and it is
not shown, within a prescribed period, that the participant had
good cause for the failure;
(e)
prescribing matters which are, or are not, to be taken into
account in determining whether a participant has good cause
20
for any failure to comply with the regulations;
(f)
prescribing circumstances in which a participant is, or is not, to
be regarded as having good cause for any failure to comply
with the regulations.
(6)
In the case of a jobseeker’s allowance other than a joint-claim
25
jobseeker’s allowance, the appropriate consequence for the purposes of
subsection (5)(d) is that the allowance is not payable for such period (of
at least one week but not more than 26 weeks) as may be prescribed.
(7)
In the case of a joint-claim jobseeker’s allowance, the appropriate
consequence for the purposes of subsection (5)(d) is that the participant
30
is to be treated as subject to sanctions for the purposes of section 20A
for such period (of at least one week but not more than 26 weeks) as
may be prescribed.
(8)
Regulations under this section may make provision for an income-
based jobseeker’s allowance to be payable in prescribed circumstances
35
even though other provision made by the regulations would prevent
payment of it.

This subsection does not apply in the case of a joint-claim jobseeker’s
allowance (corresponding provision for which is made by section
20B(4)).
40
(9)
The provision that may be made by the regulations by virtue of
subsection (8) includes, in particular, provision for the allowance to
be—
(a)
payable only if prescribed requirements as to the provision of
information are complied with;
45
(b)
payable at a prescribed rate;
(c)
payable for a prescribed period (which may differ from any
period mentioned in subsection (6)).
(10)
In this section—

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“claimant”, in relation to a joint-claim couple claiming a joint-
claim jobseeker’s allowance, means either or both of the
members of the couple;
“the jobseeking conditions” means the conditions set out in section
1(2)(a) to (c);
5
“participant”, in relation to any time, means any person who is
required at that time to participate in a scheme within
subsection (1).
17B
Section 17A: supplemental
(1)
For the purposes of, or in connection with, any scheme within section
10
17A(1) the Secretary of State may—
(a)
make arrangements (whether or not with other persons) for the
provision of facilities;
(b)
provide support (by whatever means) for arrangements made
by other persons for the provision of facilities;
15
(c)
make payments (by way of fees, grants, loans or otherwise) to persons
undertaking the provision of facilities under arrangements within
paragraph (a) or (b);
(d)
make payments (by way of grants, loans or otherwise) to persons
participating in the scheme;
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(e)
make payments in respect of incidental expenses.
(2)
For the purposes of, or in connection with, any scheme within section
17A(1)—
(a)
the Scottish Ministers, and
(b)
the Welsh Ministers,
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may make payments (by way of fees, grants, loans or otherwise) to
persons (including the Secretary of State) undertaking the provision of
facilities under arrangements within subsection (1)(a) or (b) if the
following condition is met.
(3)
The condition is that the Scottish Ministers or the Welsh Ministers
30
consider that the facilities are capable of supporting the training in
Scotland or Wales of persons for employment.
(4)
Unless the Scottish Ministers or Welsh Ministers otherwise specify, the
payments may be used by the person to whom they are made for the
provision of any of the facilities provided under the arrangements.
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(5)
In subsections (1) to (4) “facilities” includes services, and any reference
to the provision of facilities includes the making of payments to
persons participating in the scheme.
(6)
The power of the Secretary of State to make an order under section 26
of the Employment Act 1988 (status of trainees etc) includes power to
40
make, in relation to—
(a)
persons participating in any scheme within section 17A(1), and
(b)
payments received by them by virtue of subsection (1) above,

provision corresponding to any provision which (by virtue of section
26(1) or (2) of that Act) may be made in relation to persons using such
45
facilities, and to such payments received by them, as are mentioned in
section 26(1) of that Act.”

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(3)
In section 36 (regulations and orders), after subsection (4) insert—
“(4A)
Without prejudice to the generality of the provisions of this section—
(a)
regulations under section 17A may make different provision for
different areas;
(b)
regulations under section 17A may make provision which
5
applies only in relation to an area or areas specified in the
regulations.”
(4)
In paragraph 3 of Schedule 3 to the Social Security Act 1998 (c. 14) (decisions
against which an appeal lies: payability of benefit), after paragraph (d) insert—
“(da)
regulations made under section 17A of the Jobseekers Act;”.
10
(5)
In—
(a)
section 63(2)(b)(i) of the Child Support, Pensions and Social Security
Act 2000 (c. 19) (loss of joint-claim jobseeker’s allowance), and
(b)
section 8(2)(b)(i) of the Social Security Fraud Act 2001 (c. 11) (effect of
offence on joint-claim jobseeker’s allowance),
15

after “is” insert “(or is treated as being)”.
Revised system of working-age benefits
2
Work-related activity: income support claimants and partners of claimants
(1)
The Social Security Administration Act 1992 (c. 5) is amended as follows.
(2)
After section 2C insert—
20
“2D
Work-related activity
(1)
Regulations may make provision for or in connection with imposing on
a person who is entitled to income support a requirement to undertake
work-related activity in accordance with regulations as a condition of
continuing to be entitled to the full amount of income support payable
25
apart from the regulations.
(2)
Regulations may make provision for or in connection with imposing on
a person (“P”) who—
(a)
is under pensionable age, and
(b)
is a member of a couple the other member of which (“C”) is
30
entitled to a benefit to which subsection (3) applies at a higher
rate referable to P,

a requirement to undertake work-related activity in accordance with
regulations as a condition of the benefit continuing to be payable to C
at that rate.
35
(3)
The benefits to which this subsection applies are—
(a)
income support;
(b)
an income-based jobseeker’s allowance other than a joint-claim
jobseeker’s allowance; and
(c)
an income-related employment and support allowance.
40
(4)
Regulations under this section may, in particular, make provision—

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(a)
prescribing circumstances in which a person is to be subject to
any requirement imposed by the regulations (a “relevant
requirement”);
(b)
for notifying a person of a relevant requirement;
(c)
prescribing the time or times at which a person who is subject
5
to a relevant requirement is required to undertake work-related
activity and the amount of work-related activity the person is
required at any time to undertake;
(d)
prescribing circumstances in which a person who is subject to a
relevant requirement is, or is not, to be regarded as undertaking
10
work-related activity;
(e)
in a case where C is a member of more than one couple, for
determining which of the members of the couples is to be
subject to a relevant requirement or requiring each of them to be
subject to a relevant requirement;
15
(f)
for securing that the appropriate consequence follows if —
(i)
a person who is subject to a relevant requirement has
failed to comply with the requirement, and
(ii)
it is not shown, within a prescribed period, that the
person had good cause for that failure;
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(g)
prescribing the evidence which a person who is subject to a
relevant requirement needs to provide in order to show
compliance with the requirement;
(h)
prescribing matters which are, or are not, to be taken into
account in determining whether a person had good cause for
25
any failure to comply with a relevant requirement;
(i)
prescribing circumstances in which a person is, or is not, to be
regarded as having good cause for any such failure.
(5)
For the purposes of subsection (4)(f) the appropriate consequence is
that the amount of the benefit payable is to be reduced by the
30
prescribed amount until the prescribed time.
(6)
Regulations under subsection (5) may, in relation to any such
reduction, provide—
(a)
for the amount of the reduction to be calculated in the first
instance by reference to such amount as may be prescribed;
35
(b)
for the amount as so calculated to be restricted, in prescribed
circumstances, to the prescribed extent.
(7)
Regulations under this section may include provision that in such
circumstances as the regulations may provide a person’s obligation
under the regulations to undertake work-related activity at a particular
40
time is not to apply, or is to be treated as not having applied.
(8)
For the purposes of this section and sections 2E and 2F—
(a)
“couple” has the meaning given by section 137(1) of the
Contributions and Benefits Act;
(b)
“prescribed” means specified in, or determined in accordance
45
with, regulations;
(c)
“work-related activity”, in relation to a person, means activity
which makes it more likely that the person will obtain or remain
in work or be able to do so;

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(d)
any reference to a person attaining pensionable age is, in the
case of a man born before 6 April 1955, a reference to the time
when a woman born on the same day as the man would attain
pensionable age;
(e)
any reference to a benefit payable to C at a higher rate referable
5
to P is a reference to any case where the amount payable is more
than it would be if C and P were not members of the same
couple.
(9)
Information supplied in pursuance of regulations under this section is
to be taken for all purposes to be information relating to social security.
10
2E
Action plans in connection with work-focused interviews
(1)
The Secretary of State must in prescribed circumstances provide a
document (referred to in this section as an “action plan”) prepared for
such purposes as may be prescribed to a person who is subject to a
requirement imposed under section 2A or 2AA in relation to any of the
15
following benefits.
(2)
The benefits are—
(a)
income support;
(b)
an income-based jobseeker’s allowance other than a joint-claim
jobseeker’s allowance; and
20
(c)
an income-related employment and support allowance.
(3)
Regulations may make provision about—
(a)
the form of action plans;
(b)
the content of action plans;
(c)
the review and updating of action plans.
25
(4)
Regulations under this section may, in particular, make provision for
action plans which are provided to a person who is subject under
section 2D to a requirement to undertake work-related activity to
contain particulars of activity which, if undertaken, would enable the
requirement to be met.
30
(5)
Regulations may make provision for reconsideration of an action plan
at the request of the person to whom it is provided and may, in
particular, make provision about—
(a)
the circumstances in which reconsideration may be requested;
(b)
the period within which any reconsideration must take place;
35
(c)
the matters to which regard must be had when deciding on
reconsideration whether the plan should be changed;
(d)
notification of the decision on reconsideration;
(e)
the giving of directions for the purpose of giving effect to the
decision on reconsideration.
40
2F
Directions about work-related activity
(1)
In prescribed circumstances, the Secretary of State may by direction
given to a person subject to a requirement imposed under section 2D
provide that the activity specified in the direction is—
(a)
to be the only activity which, in the person’s case, is to be
45
regarded as being work-related activity; or

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(b)
to be regarded, in the person’s case, as not being work-related
activity.
(2)
A direction under subsection (1) given to any person—
(a)
must be reasonable, having regard to the person’s
circumstances;
5
(b)
must be given to the person by being included in an action plan
provided to the person under section 2E; and
(c)
may be varied or revoked by a subsequent direction under
subsection (1).
(3)
Where a direction under subsection (1) varies or revokes a previous
10
direction, it may provide for the variation or revocation to have effect
from a time before the giving of the direction.
2G
Contracting-out
(1)
The following functions of the Secretary of State may be exercised by,
or by employees of, such person (if any) as the Secretary of State may
15
authorise for the purpose, namely—
(a)
conducting interviews under section 2A or 2AA;
(b)
providing documents under section 2E;
(c)
giving, varying or revoking directions under section 2F.
(2)
Regulations may provide for any of the following functions of the
20
Secretary of State to be exercisable by, or by employees of, such person
(if any) as the Secretary of State may authorise for the purpose—
(a)
any function under regulations under any of sections 2A to 2F,
except the making of an excluded decision (see subsection (3));
(b)
the function under section 9(1) of the 1998 Act (revision of
25
decisions) so far as relating to decisions (other than excluded
decisions) that relate to any matter arising under regulations
under any of sections 2A to 2F;
(c)
the function under section 10(1) of the 1998 Act (superseding of
decisions) so far as relating to decisions (other than excluded
30
decisions) of the Secretary of State that relate to any matter
arising under regulations under any of sections 2A to 2F;
(d)
any function under Chapter 2 of Part 1 of the 1998 Act (social
security decisions), except section 25(2) and (3) (decisions
involving issues arising on appeal in other cases), which relates
35
to the exercise of any of the functions within paragraphs (a) to
(c).
(3)
Each of the following is an “excluded decision” for the purposes of
subsection (2)—
(a)
a decision about whether a person has failed to comply with a
40
requirement imposed by regulations under section 2A, 2AA or
2D;
(b)
a decision about whether a person had good cause for failure to
comply with such a requirement;
(c)
a decision about the reduction of a benefit in consequence of a
45
failure to comply with such a requirement.
(4)
Regulations under subsection (2) may provide that a function to which
that subsection applies may be exercised—