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
30

Pilot schemes
21
State pension credit: pilot schemes
(1)
The State Pension Credit Act 2002 (c. 16) is amended as follows.
(2)
Before section 19 (but after the italic heading immediately before that section)
insert—
5
“18A
Pilot schemes
(1)
Any regulations to which this subsection applies may be made so as to
have effect for a specified period not exceeding 12 months.
(2)
Subject to subsection (3), subsection (1) applies to—
(a)
regulations made under this Act, and
10
(b)
regulations made under section 1 or 5 of the Administration
Act.
(3)
Subsection (1) only applies to regulations if they are made with a view
to ascertaining whether their provisions will—
(a)
make it more likely that persons who are entitled to claim state
15
pension credit will do so;
(b)
make it more likely that persons who are entitled to claim state
pension credit will receive it.
(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”.
20
(5)
A pilot scheme may, in particular—
(a)
provide for a relevant provision not to apply, or to apply with
modifications, for the purposes of the pilot scheme, and
(b)
make different provision for different cases or circumstances.
(6)
For the purposes of subsection (5)(a), a “relevant provision” is—
25
(a)
any provision of this Act, and
(b)
section 1 of the Administration Act.
(7)
A pilot scheme may provide that no account is to be taken of any
payment made under the pilot scheme in considering a person’s—
(a)
liability to tax,
30
(b)
entitlement to benefit under an enactment relating to social
security (irrespective of the name or nature of the benefit), or
(c)
entitlement to a tax credit.
(8)
A pilot scheme may provide that its provisions are to apply only in
relation to—
35
(a)
one or more specified areas or localities;
(b)
one or more specified classes of person;
(c)
persons selected—
(i)
by reference to prescribed criteria, or
(ii)
on a sampling basis.
40
(9)
A pilot scheme may make consequential or transitional provision with
respect to the cessation of the scheme on the expiry of the specified
period.

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(10)
A pilot scheme may be replaced by a further pilot scheme making the
same or similar provision.
(11)
The power of the Secretary of State to make regulations which, by
virtue of this section, are to have effect for a limited period is
exercisable only with the consent of the Treasury.”
5
(3)
In section 19 (regulations and orders) after subsection (2) insert—
“(2A)
A statutory instrument containing regulations which, by virtue of
section 18A, are to have effect for a limited period shall not be made
unless a draft of the instrument has been laid before, and approved by
a resolution of, each House of Parliament.”
10
22
Period for which pilot schemes have effect etc.
(1)
In section 29 of the Jobseekers Act 1995 (c. 18) (pilot schemes)—
(a)
in subsection (1), for “12 months” substitute “36 months”, and
(b)
in subsection (8), for the words from “facilitate” to the end substitute
“make it more likely that persons will obtain or remain in work or be
15
able to do so”.
(2)
In section 19(1) of the Welfare Reform Act 2007 (c. 5) (pilot schemes), for “24
months” substitute “36 months”.
Miscellaneous
23
Contracting out functions under Jobseekers Act 1995
20
(1)
The Jobseekers Act 1995 is amended as follows.
(2)
Before section 21 (but after the italic heading immediately before that section)
insert—
“20E
Contracting out
(1)
The following functions of the Secretary of State may be exercised by,
25
or by employees of, such person (if any) as the Secretary of State may
authorise for the purpose, namely—
(a)
conducting interviews under section 11A;
(b)
providing documents under section 11C;
(c)
giving, varying or revoking directions under section 18B(4);
30
(d)
asking questions under paragraph 1 of Schedule A1;
(e)
making decisions under paragraph 2 or 3 of that Schedule;
(f)
exercising any functions in relation to rehabilitation plans
under paragraph 6 of that Schedule.
(2)
The following functions of officers of the Secretary of State may be
35
exercised by, or by employees of, such person (if any) as the Secretary
of State may authorise for the purpose, namely—
(a)
specifying places and times, and being contacted, under section
8;
(b)
entering into or varying any jobseeker’s agreement under
40
section 9 or 10 and referring any proposed agreement or
variation to the Secretary of State under section 9 or 10;

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(c)
giving notifications under section 16 or 18A;
(d)
giving, varying or revoking directions under section 18A.
(3)
Regulations may provide for any of the following functions of the
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—
5
(a)
any function under regulations under section 8, 11A, 11C, 17A
or 18B or Schedule A1, except the making of an excluded
decision (see subsection (4));
(b)
the function under section 9(1) of the 1998 Act (revision of
decisions) so far as relating to decisions (other than excluded
10
decisions) that relate to any matter arising under any such
regulations;
(c)
the function under section 10(1) of the 1998 Act (superseding of
decisions) so far as relating to decisions (other than excluded
decisions) of the Secretary of State that relate to any matter
15
arising under any such regulations;
(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
to the exercise of any of the functions within paragraphs (a) to
20
(c).
(4)
Each of the following is an “excluded decision” for the purposes of
subsection (3)—
(a)
a decision about whether a person has failed to comply with a
requirement imposed by regulations under section 8, 11A or
25
17A or Schedule A1;
(b)
a decision about whether a person had good cause for failure to
comply with such a requirement;
(c)
a decision about not paying or reducing a jobseeker’s allowance
in consequence of a failure to comply with such a requirement.
30
(5)
Regulations under subsection (3) may provide that a function to which
that subsection applies may be exercised—
(a)
either wholly or to such extent as the regulations may provide,
(b)
either generally or in such cases as the regulations may provide,
and
35
(c)
either unconditionally or subject to the fulfilment of such
conditions as the regulations may provide.
(6)
An authorisation given by virtue of any provision made by or under
this section may authorise the exercise of the function concerned—
(a)
either wholly or to such extent as may be specified in the
40
authorisation,
(b)
either generally or in such cases as may be so specified, and
(c)
either unconditionally or subject to the fulfilment of such
conditions as may be so specified;

but, in the case of an authorisation given by virtue of regulations under
45
subsection (3), this subsection is subject to the regulations.
(7)
An authorisation given by virtue of any provision made by or under
this section—
(a)
may specify its duration,

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(b)
may be revoked at any time by the Secretary of State, and
(c)
does not prevent the Secretary of State or any other person from
exercising the function to which the authorisation relates.
(8)
Anything done or omitted to be done by or in relation to an authorised
person (or an employee of that person) in, or in connection with, the
5
exercise or purported exercise of the function concerned is to be treated
for all purposes as done or omitted to be done by or in relation to the
Secretary of State or (as the case may be) an officer of the Secretary of
State.
(9)
But subsection (8) does not apply—
10
(a)
for the purposes of so much of any contract made between the
authorised person and the Secretary of State as relates to the
exercise of the function, or
(b)
for the purposes of any criminal proceedings brought in respect
of anything done by the authorised person (or an employee of
15
that person).
(10)
Any decision which an authorised person makes in exercise of a
function of the Secretary of State has effect as a decision of the Secretary
of State under section 8 of the 1998 Act.
(11)
Where—
20
(a)
the authorisation of an authorised person is revoked at any
time, and
(b)
at the time of the revocation so much of any contract made
between the authorised person and the Secretary of State as
relates to the exercise of the function is subsisting,
25

the authorised person is entitled to treat the contract as repudiated by
the Secretary of State (and not as frustrated by reason of the revocation).
(12)
In this section—
(a)
“the 1998 Act” means the Social Security Act 1998;
(b)
“authorised person” means a person authorised to exercise any
30
function by virtue of any provision made by or under this
section;
(c)
references to functions of the Secretary of State under any
enactment (including one comprised in regulations) include
functions which the Secretary of State has by virtue of the
35
application of section 8(1)(c) of the 1998 Act in relation to the
enactment.”
(3)
In each of the following provisions for “employment officer” substitute “officer
of the Secretary of State”—
(a)
section 8(1)(a),
40
(b)
section 9(1), (5), (6) and (7)(b),
(c)
section 10(1), (4), (5) and (6)(b)(ii),
(d)
section 16(3)(b)(ii),
(e)
section 19(5)(b)(ii), (6)(c) and (10)(b) (as the section has effect before its
substitution by paragraph 6 of Schedule 1 to this Act), and
45
(f)
section 20A(2)(b)(ii) and (f) (as the section has effect before its
substitution by paragraph 7 of that Schedule).

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(4)
In section 8(1A)(a), for “the Secretary of State” substitute “an officer of the
Secretary of State”.
(5)
In relation to any time before paragraph 4 of Schedule 1 to this Act is fully in
force, section 20E(2)(c) and (d) of the Jobseekers Act 1995 (c. 18) have effect as
if they included references to the giving of notifications or directions under
5
section 19 or 20A of that Act.
24
Attendance in connection with jobseeker’s allowance: sanctions
(1)
Section 8 of the Jobseekers Act 1995 (attendance, information and evidence) is
amended as follows.
(2)
In subsection (2), for paragraphs (a) to (c) (together with the “and” at the end
10
of paragraph (c)) substitute—
“(a)
prescribe circumstances in which a jobseeker’s allowance is not
to be payable for a prescribed period (of at least one week but
not more than two weeks) in the case of—
(i)
a claimant (other than a joint-claim couple claiming a
15
joint-claim jobseeker’s allowance) who fails to comply
with any regulations made under that subsection, or
(ii)
a joint-claim couple claiming a joint-claim jobseeker’s
allowance a member of which fails to comply with any
such regulations;
20
(b)
provide for the consequence set out in paragraph (a) not to
follow if, within a prescribed period of a person’s (“P”) failure
to comply with any such regulations (“the relevant period”), P
or, if P is a member of a joint-claim couple, either member of the
couple—
25
(i)
makes prescribed contact with an officer of the Secretary
of State, and
(ii)
shows that P had good cause for the failure;
(c)
provide for entitlement to a jobseeker’s allowance to cease at
such time as may be determined in accordance with any such
30
regulations if P or, as the case may be, a member of the couple
does not make prescribed contact with an officer of the
Secretary of State in the relevant period;
(ca)
prescribe circumstances in which a jobseeker’s allowance is to
be payable in respect of a claimant even though provision made
35
by any such regulations by virtue of paragraph (a) prevents
payment of a jobseeker’s allowance in respect of the claimant;
and”.
(3)
After that subsection insert—
“(2A)
The provision that may be made by any such regulations by virtue of
40
subsection (2)(ca) includes, in particular, provision for a jobseeker’s
allowance payable by virtue of that paragraph to be—
(a)
payable only if prescribed requirements as to the provision of
information are complied with;
(b)
payable at a prescribed rate;
45
(c)
payable for a prescribed period (which may differ from the
period mentioned in subsection (2)(a)).”

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(4)
In paragraph 3(da) of Schedule 3 to the Social Security Act 1998 (c. 14)
(decisions against which an appeal lies: payability of benefit), which is inserted
by section 1 of this Act, after “section” insert “8 or”.
25
Social security information and employment or training information
(1)
In section 2A of the Social Security Administration Act 1992 (c. 5) (claim or full
5
entitlement to certain benefits conditional on work-focused interview), after
subsection (7) insert—
“(7A)
Information supplied in pursuance of regulations under this section
shall be taken for all purposes to be information relating to social
security.”
10
(2)
In section 2AA of that Act (full entitlement to certain benefits conditional on
work-focused interview for partner), after subsection (6) insert—
“(6A)
Information supplied in pursuance of regulations under this section
shall be taken for all purposes to be information relating to social
security.”
15
(3)
In Schedule 1 to the Jobseekers Act 1995 (c. 18) (supplementary provisions
relating to jobseeker’s allowance), at the end insert—
“Treatment of information supplied as information relating to social security
19
Information supplied in pursuance of any provision made by or
under this Act shall be taken for all purposes to be information
20
relating to social security.”
(4)
In section 72 of the Welfare Reform and Pensions Act 1999 (c. 30) (supply of
information for certain purposes)—
(a)
in subsection (1)(a) and (b), after “social security information” insert
“, or information relating to employment or training,”, and
25
(b)
in subsection (7), for “purposes connected with employment or training
includes purposes connected with” substitute “information relating to,
or purposes connected with, employment or training includes
information relating to, or purposes connected with,”.
26
Persons under pensionable age to take part in work-focused interviews etc.
30
(1)
The Social Security Administration Act 1992 is amended as follows.
(2)
In section 2A (claim or full entitlement to certain benefits conditional on work-
focused interview)—
(a)
in subsection (1)(a), for sub-paragraph (ii) substitute—
“(ii)
has not attained pensionable age at the time of
35
making the claim (but see subsection (1A)),”,
(b)
in subsection (1)(b)(i), for “is under that age and” substitute “has not
attained pensionable age and is”, and
(c)
after subsection (1) insert—
“(1A)
For the purposes of subsection (1) a man born before 6 April
40
1955 is treated as attaining pensionable age when a woman born
on the same day as the man would attain pensionable age.”

Welfare Reform Bill
Part 2 — Disabled people: right to control provision of services
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(3)
In section 2AA (full entitlement to certain benefits conditional on work-
focused interview for partner)—
(a)
in subsection (1)(a), for sub-paragraphs (i) and (ii) substitute—
“(i)
has not attained pensionable age (but see
subsection (1A)), and
5
(ii)
has a partner who has also not attained
pensionable age,”, and
(b)
after subsection (1) insert—
“(1A)
For the purposes of subsection (1) a man born before 6 April
1955 is treated as attaining pensionable age when a woman born
10
on the same day as the man would attain pensionable age.”
(4)
In sections 2A(1)(a) and 2AA(1), for “a work-focused interview” substitute
“one or more work-focused interviews”, and in section 2A(1)(b), for “such an
interview” substitute “one or more work-focused interviews”.
27
Minor amendments
15
(1)
Sections 80 and 81 of the Benefits Act (which continue to have effect in certain
cases despite their repeal by the Tax Credits Act 2002 (c. 21)) are to have effect
as if the references in those sections to a child or children included references
to a qualifying young person or persons.
(2)
“Qualifying young person” has the same meaning as in Part 9 of the Benefits
20
Act.
(3)
In section 150(2) of the Benefits Act (interpretation of Part 10: Christmas
bonus), in the definition of “qualifying employment and support allowance”,
for “an employment and support allowance” substitute “a contributory
allowance”.
25
(4)
Despite the provision made by the Welfare Reform Act 2007 (Commencement
No. 6 and Consequential Provisions) Order 2008 (S.I. 2008/ 787), paragraph
9(7) and (8) of Schedule 3 to the Welfare Reform Act 2007 (c. 5) (which amend
sections 88 and 89 of the Benefits Act) are deemed not to be in force by virtue
of the provision made by that order at any time after the passing of this Act.
30
(5)
In this section “the Benefits Act” means the Social Security Contributions and
Benefits Act 1992 (c. 4).
Part 2
Disabled people: right to control provision of services
Introductory
35
28
Purpose of Part
The purpose of this Part is to enable disabled people aged 18 or over to exercise
greater choice in relation to, and greater control over, the way in which
relevant services (as defined by section 29) are provided to or for them, in cases
where the provision of the relevant services is a function of a relevant authority
40
(as defined by section 30).