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Abolition of income support |
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7 | Abolition of income support |
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(1) | This section applies if, whether as a result of— |
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(a) | provision made by any regulations under section 1A(4)(c) or (6) of the |
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Jobseekers Act 1995 (c. 18) (as inserted by section 3 above), or |
| 5 |
(b) | provision made by or under any other enactment, or otherwise, |
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| the Secretary of State considers that it is no longer appropriate for any category |
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of person to be prescribed under section 124(1)(e) of the Social Security |
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Contributions and Benefits Act 1992 (c. 4) (conditions for income support). |
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(2) | The Secretary of State may by order provide for section 124 of the Social |
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Security Contributions and Benefits Act 1992 (which establishes the |
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entitlement to income support) to cease to have effect. |
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(3) | If an order is made under subsection (2)— |
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(a) | the amendments made by Schedule 2, and |
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(b) | the repeals in Part 1 of Schedule 7, |
| 15 |
| have effect in accordance with provision made by the order. |
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(4) | The Secretary of State may by order make such transitional or consequential |
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provision or savings as the Secretary of State considers necessary or expedient |
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for the purposes of or in connection with the abolition of income support |
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(including provision of the kind mentioned in section 6(2)). |
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(5) | The consequential provision that may be made by an order under subsection |
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(4) includes, in particular, provision amending, repealing or revoking— |
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(a) | any provision of any Act (whenever passed), or |
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(b) | any provision of any instrument made under any Act (whenever |
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(6) | In subsection (5) “Act” means— |
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(a) | an Act of Parliament, |
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(b) | an Act of the Scottish Parliament, or |
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(c) | a Measure or Act of the National Assembly for Wales. |
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(7) | Subsections (3) to (5) of section 175 of the Social Security Contributions and |
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Benefits Act 1992 (supplementary provisions in relation to powers to make |
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subordinate legislation under that Act) apply in relation to any power to make |
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an order under this section as they apply to any power to make orders under |
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(8) | Any power to make an order under this section is exercisable by statutory |
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(9) | A statutory instrument containing an order under this section is subject to |
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annulment in pursuance of a resolution of either House of Parliament. |
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Work-related activity for claimants of employment and support allowance |
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8 | Power to direct claimant to undertake specific work-related activity |
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In section 15 of the Welfare Reform Act 2007 (c. 5) (directions about work- |
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|
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|
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|
related activity), for subsections (1) and (2) substitute— |
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“(1) | In prescribed circumstances, the Secretary of State may by direction |
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given to a person subject to a requirement imposed under section 13(1) |
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provide that the activity specified in the direction is— |
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(a) | to be the only activity which, in the person’s case, is to be |
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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 |
| |
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(2) | A direction under subsection (1) given to any person— |
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(a) | must be reasonable, having regard to the person’s |
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(b) | must be given to the person by being included in an action plan |
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provided to the person under section 14; and |
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(c) | may be varied or revoked by a subsequent direction under |
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Jobseeker’s allowance and employment and support allowance: drugs |
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9 | Claimants dependent on drugs etc. |
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(1) | Part 1 of Schedule 3 makes provision for or in connection with imposing |
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requirements on claimants for a jobseeker’s allowance in cases where— |
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(a) | they are dependent on, or have a propensity to misuse, any drug, and |
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(b) | any such dependency or propensity is a factor affecting their prospects |
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of obtaining or remaining in work. |
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(2) | Part 1 of that Schedule also contains a power for the provisions concerned to |
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apply in relation to alcohol. |
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(3) | Part 2 of that Schedule makes similar provision in relation to claimants for an |
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employment and support allowance. |
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Contributory jobseeker’s allowance and employment and support allowance |
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10 | Conditions for contributory jobseeker’s allowance |
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(1) | Section 2 of the Jobseekers Act 1995 (c. 18) (jobseeker’s allowance: the |
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contribution-based conditions) is amended as follows. |
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(2) | In subsection (2), for paragraph (b) substitute— |
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“(b) | the claimant’s relevant earnings for the base year upon which |
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primary Class 1 contributions have been paid or treated as paid |
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are not less than the base year’s lower earnings limit multiplied |
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(3) | After that subsection insert— |
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“(2A) | Regulations may make provision for the purposes of subsection (2)(b) |
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for determining the claimant’s relevant earnings for the base year. |
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(2B) | Regulations under subsection (2A) may, in particular, make |
| |
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|
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|
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|
(a) | for making that determination by reference to the amount of a |
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person’s earnings for periods comprised in the base year; |
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(b) | for determining the amount of a person’s earnings for any such |
| |
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(i) | first determining the amount of the earnings for the |
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period in accordance with regulations made for the |
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purposes of section 3(2) of the Benefits Act, and |
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(ii) | then disregarding so much of the amount found in |
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accordance with sub-paragraph (i) as exceeded the base |
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year’s lower earnings limit (or the prescribed |
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(4) | In subsection (3A), for “subsections (2)(b) and (3)” substitute “subsection (3)”. |
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(5) | After that subsection insert— |
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(a) | provide for the first set of conditions to be taken to be satisfied |
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(i) | who have been entitled to any prescribed description of |
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benefit during any prescribed period or at any |
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(ii) | who satisfy other prescribed conditions; |
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(b) | with a view to securing any relaxation of the requirements of |
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the first set of conditions in relation to persons who have been |
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entitled as mentioned in paragraph (a)(i), provide for that set of |
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conditions to apply in relation to them subject to prescribed |
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“the first set of conditions” means the condition set out in |
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subsection (1)(a) and the additional conditions set out in |
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(a) | any benefit within the meaning of section 122(1) of the |
| |
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(b) | any benefit under Parts 7 to 12 of the Benefits Act, |
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(c) | credits under regulations under section 22(5) of the |
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(d) | a contribution-based jobseeker’s allowance, and |
| |
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(6) | In paragraph 45 of Schedule 1 to the National Insurance Contributions Act 2002 |
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(c. 19) (which amended section 2(2)(b) of the Jobseekers Act 1995 (c. 18)), for |
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“section 2(2)(b) and (3)” substitute “section 2(3)”. |
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11 | Conditions for contributory employment and support allowance |
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(1) | Paragraph 1 of Schedule 1 to the Welfare Reform Act 2007 (c. 5) (employment |
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and support allowance: conditions relating to national insurance) is amended |
| |
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(2) | In sub-paragraph (1)(a) (Class 1 or Class 2 contributions to have been paid in |
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respect of one of last three complete tax years), for “three” substitute “two”. |
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|
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|
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|
(3) | In sub-paragraph (1), for paragraph (c) substitute— |
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“(c) | the claimant’s earnings determined in accordance with sub- |
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paragraph (2) must be not less than the base tax year’s lower |
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earnings limit multiplied by 26.” |
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(4) | For sub-paragraphs (2) and (3) substitute— |
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“(2) | The earnings referred to in sub-paragraph (1)(c) are the aggregate |
| |
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(a) | the claimant’s relevant earnings for the base tax year upon |
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which primary Class 1 contributions have been paid or |
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(b) | the claimant’s earnings factors derived from Class 2 |
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(3) | Regulations may make provision for the purposes of sub-paragraph |
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(2)(a) for determining the claimant’s relevant earnings for the base |
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(3A) | Regulations under sub-paragraph (3) may, in particular, make |
| |
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(a) | for making that determination by reference to the amount of |
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a person’s earnings for periods comprised in the base tax |
| |
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(b) | for determining the amount of a person’s earnings for any |
| |
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(i) | first determining the amount of the earnings for the |
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period in accordance with regulations made for the |
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purposes of section 3(2) of the Contributions and |
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(ii) | then disregarding so much of the amount found in |
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accordance with sub-paragraph (i) as exceeded the |
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base tax year’s lower earnings limit (or the prescribed |
| |
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(5) | In sub-paragraph (4)— |
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(a) | in paragraph (a), for “persons who” substitute “persons— |
| |
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(b) | in that paragraph, after “prescribed time” insert “, or |
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(ii) | who satisfy other prescribed conditions”, and |
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(c) | in paragraph (b), for “so entitled” substitute “entitled as mentioned in |
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Abolition of adult dependency increases |
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12 | Maternity allowance and carer’s allowance |
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(1) | The following provisions of the Social Security Contributions and Benefits Act |
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1992 (c. 4) (“the Benefits Act”) are omitted on 6 April 2010— |
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(a) | section 82 (maternity allowance: increase for adult dependants); and |
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(b) | section 90 (carer’s allowance: increase for adult dependants). |
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(2) | Nothing in subsection (1) or Part 2 of Schedule 7 applies in relation to— |
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|
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|
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|
(a) | the amount of a maternity allowance payable for a maternity allowance |
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period (within the meaning of section 35(2) of the Benefits Act) which |
| |
begins before 6 April 2010 but ends on or after that date, or |
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(b) | the amount of a carer’s allowance payable to a qualifying person at any |
| |
time on or after 6 April 2010 but before the appropriate date. |
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(3) | In subsection (2)(b)— |
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“a qualifying person” means a person who— |
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(a) | has, before 6 April 2010, made a claim for an increase in a carer’s |
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allowance under section 90 of the Benefits Act; and |
| |
(b) | immediately before that date is either entitled to the increase |
| 10 |
claimed or a beneficiary to whom section 92 of the Benefits Act |
| |
applies in respect of that increase (continuation of awards |
| |
where fluctuating earnings); |
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“the appropriate date” means whichever is the earlier of— |
| |
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(b) | the date when the qualifying person ceases to be either entitled |
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to that increase or a beneficiary to whom section 92 of the |
| |
Benefits Act applies in respect of that increase. |
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External provider social loans |
| |
13 | External provider social loans |
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(1) | After Part 8 of the Social Security Contributions and Benefits Act 1992 (c. 4) |
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| |
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External Provider Social Loans |
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140ZA | Arrangements for external provider social loans |
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(1) | The Secretary of State may with the consent of the Treasury make such |
| |
arrangements as the Secretary of State thinks fit with any person for the |
| |
purpose of securing the making by that person (“the lender”) of loans |
| |
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(2) | In subsection (1) “eligible person” means an individual who— |
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(a) | is in receipt of a prescribed benefit, or |
| |
(b) | has needs of a prescribed description. |
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(3) | Arrangements under this section may relate to particular areas in Great |
| |
Britain or to the whole of Great Britain. |
| |
(4) | Arrangements under this section may provide for the making of |
| 35 |
payments by the Secretary of State to the lender— |
| |
(a) | in respect of sums required for making loans, and |
| |
(b) | in respect of other expenses of the lender. |
| |
(5) | Arrangements under this section may in particular— |
| |
(a) | specify categories of eligible person to whom a loan may not be |
| 40 |
| |
|
| |
|
| |
|
(b) | make provision as to the criteria to be applied by the lender in |
| |
determining whether to make a particular loan; |
| |
(c) | specify circumstances in which a loan may or may not be made; |
| |
(d) | make provision as to the manner in which the terms and |
| |
conditions relating to repayment of the loan are to be |
| 5 |
determined by the lender; |
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(e) | make provision as to the keeping of accounts by the lender; |
| |
(f) | require the provision of information by the lender to the |
| |
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(g) | require the provision to prospective borrowers of information |
| 10 |
or guidance about budgeting. |
| |
(6) | Arrangements under this section may also— |
| |
(a) | make provision as to the duration of the arrangements and as to |
| |
the circumstances in which they may be terminated; |
| |
(b) | provide for the making of payments by the lender to the |
| 15 |
Secretary of State if the arrangements cease to be in force. |
| |
(7) | Any payments by virtue of subsection (4)(a) are to be made out of the |
| |
| |
(8) | Any sums received by virtue of subsection (6)(b) are to be paid into the |
| |
| 20 |
(9) | In this Part a loan made by virtue of arrangements under this section is |
| |
referred to as an “external provider social loan”. |
| |
| |
(1) | Arrangements under section 140ZA may provide— |
| |
(a) | for the right to repayment of a loan made under section |
| 25 |
138(1)(b) before the arrangements come into force to be |
| |
transferred to the person with whom the arrangements are |
| |
| |
(b) | for the right to repayment of an external provider social loan to |
| |
be transferred to the Secretary of State on the arrangements |
| 30 |
| |
(2) | Regulations may make provision modifying any provision of this Act, |
| |
the Administration Act or the Social Security Act 1998 in its application |
| |
to loans in relation to which provision made by virtue of subsection |
| |
(1)(a) or (b) has effect. |
| 35 |
140ZC | Annual report on operation of arrangements |
| |
(1) | The Secretary of State shall prepare an annual report on the operation |
| |
of arrangements under section 140ZA. |
| |
(2) | A copy of every such report shall be laid before each House of |
| |
| 40 |
(2) | After section 78 of the Social Security Administration Act 1992 (c. 5) insert— |
| |
|
| |
|