House of Commons portcullis
House of Commons
Session 2008 - 09
Internet Publications
Other Bills before Parliament

Welfare Reform Bill


Welfare Reform Bill
Part 1 — Social security

13

 

Abolition of income support

7       

Abolition of income support

(1)   

This section applies if, whether as a result of—

(a)   

provision made by any regulations under section 1A(4)(c) or (6) of the

Jobseekers Act 1995 (c. 18) (as inserted by section 3 above), or

5

(b)   

provision made by or under any other enactment, or otherwise,

   

the Secretary of State considers that it is no longer appropriate for any category

of person to be prescribed under section 124(1)(e) of the Social Security

Contributions and Benefits Act 1992 (c. 4) (conditions for income support).

(2)   

The Secretary of State may by order provide for section 124 of the Social

10

Security Contributions and Benefits Act 1992 (which establishes the

entitlement to income support) to cease to have effect.

(3)   

If an order is made under subsection (2)—

(a)   

the amendments made by Schedule 2, and

(b)   

the repeals in Part 1 of Schedule 7,

15

   

have effect in accordance with provision made by the order.

(4)   

The Secretary of State may by order make such transitional or consequential

provision or savings as the Secretary of State considers necessary or expedient

for the purposes of or in connection with the abolition of income support

(including provision of the kind mentioned in section 6(2)).

20

(5)   

The consequential provision that may be made by an order under subsection

(4) includes, in particular, provision amending, repealing or revoking—

(a)   

any provision of any Act (whenever passed), or

(b)   

any provision of any instrument made under any Act (whenever

made).

25

(6)   

In subsection (5) “Act” means—

(a)   

an Act of Parliament,

(b)   

an Act of the Scottish Parliament, or

(c)   

a Measure or Act of the National Assembly for Wales.

(7)   

Subsections (3) to (5) of section 175 of the Social Security Contributions and

30

Benefits Act 1992 (supplementary provisions in relation to powers to make

subordinate legislation under that Act) apply in relation to any power to make

an order under this section as they apply to any power to make orders under

that Act.

(8)   

Any power to make an order under this section is exercisable by statutory

35

instrument.

(9)   

A statutory instrument containing an order under this section is subject to

annulment in pursuance of a resolution of either House of Parliament.

Work-related activity for claimants of employment and support allowance

8       

Power to direct claimant to undertake specific work-related activity

40

In section 15 of the Welfare Reform Act 2007 (c. 5) (directions about work-

 
 

Welfare Reform Bill
Part 1 — Social security

14

 

related activity), for subsections (1) and (2) substitute—

“(1)   

In prescribed circumstances, the Secretary of State may by direction

given to a person subject to a requirement imposed under section 13(1)

provide that the activity specified in the direction is—

(a)   

to be the only activity which, in the person’s case, is to be

5

regarded as being work-related activity; or

(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

10

circumstances;

(b)   

must be given to the person by being included in an action plan

provided to the person under section 14; and

(c)   

may be varied or revoked by a subsequent direction under

subsection (1).”

15

Jobseeker’s allowance and employment and support allowance: drugs

9       

Claimants dependent on drugs etc.

(1)   

Part 1 of Schedule 3 makes provision for or in connection with imposing

requirements on claimants for a jobseeker’s allowance in cases where—

(a)   

they are dependent on, or have a propensity to misuse, any drug, and

20

(b)   

any such dependency or propensity is a factor affecting their prospects

of obtaining or remaining in work.

(2)   

Part 1 of that Schedule also contains a power for the provisions concerned to

apply in relation to alcohol.

(3)   

Part 2 of that Schedule makes similar provision in relation to claimants for an

25

employment and support allowance.

Contributory jobseeker’s allowance and employment and support allowance

10      

Conditions for contributory jobseeker’s allowance

(1)   

Section 2 of the Jobseekers Act 1995 (c. 18) (jobseeker’s allowance: the

contribution-based conditions) is amended as follows.

30

(2)   

In subsection (2), for paragraph (b) substitute—

“(b)   

the claimant’s relevant earnings for the base year upon which

primary Class 1 contributions have been paid or treated as paid

are not less than the base year’s lower earnings limit multiplied

by 26.”

35

(3)   

After that subsection insert—

“(2A)   

Regulations may make provision for the purposes of subsection (2)(b)

for determining the claimant’s relevant earnings for the base year.

(2B)   

Regulations under subsection (2A) may, in particular, make

provision—

40

 
 

Welfare Reform Bill
Part 1 — Social security

15

 

(a)   

for making that determination by reference to the amount of a

person’s earnings for periods comprised in the base year;

(b)   

for determining the amount of a person’s earnings for any such

period by—

(i)   

first determining the amount of the earnings for the

5

period in accordance with regulations made for the

purposes of section 3(2) of the Benefits Act, and

(ii)   

then disregarding so much of the amount found in

accordance with sub-paragraph (i) as exceeded the base

year’s lower earnings limit (or the prescribed

10

equivalent).”

(4)   

In subsection (3A), for “subsections (2)(b) and (3)” substitute “subsection (3)”.

(5)   

After that subsection insert—

“(3B)   

Regulations may—

(a)   

provide for the first set of conditions to be taken to be satisfied

15

in the case of persons—

(i)   

who have been entitled to any prescribed description of

benefit during any prescribed period or at any

prescribed time, or

(ii)   

who satisfy other prescribed conditions;

20

(b)   

with a view to securing any relaxation of the requirements of

the first set of conditions in relation to persons who have been

entitled as mentioned in paragraph (a)(i), provide for that set of

conditions to apply in relation to them subject to prescribed

modifications.

25

(3C)   

In subsection (3B)—

“the first set of conditions” means the condition set out in

subsection (1)(a) and the additional conditions set out in

subsection (2);

“benefit” means—

30

(a)   

any benefit within the meaning of section 122(1) of the

Benefits Act,

(b)   

any benefit under Parts 7 to 12 of the Benefits Act,

(c)   

credits under regulations under section 22(5) of the

Benefits Act,

35

(d)   

a contribution-based jobseeker’s allowance, and

(e)   

working tax credit.”

(6)   

In paragraph 45 of Schedule 1 to the National Insurance Contributions Act 2002

(c. 19) (which amended section 2(2)(b) of the Jobseekers Act 1995 (c. 18)), for

“section 2(2)(b) and (3)” substitute “section 2(3)”.

40

11      

Conditions for contributory employment and support allowance

(1)   

Paragraph 1 of Schedule 1 to the Welfare Reform Act 2007 (c. 5) (employment

and support allowance: conditions relating to national insurance) is amended

as follows.

(2)   

In sub-paragraph (1)(a) (Class 1 or Class 2 contributions to have been paid in

45

respect of one of last three complete tax years), for “three” substitute “two”.

 
 

Welfare Reform Bill
Part 1 — Social security

16

 

(3)   

In sub-paragraph (1), for paragraph (c) substitute—

“(c)   

the claimant’s earnings determined in accordance with sub-

paragraph (2) must be not less than the base tax year’s lower

earnings limit multiplied by 26.”

(4)   

For sub-paragraphs (2) and (3) substitute—

5

    “(2)  

The earnings referred to in sub-paragraph (1)(c) are the aggregate

of—

(a)   

the claimant’s relevant earnings for the base tax year upon

which primary Class 1 contributions have been paid or

treated as paid, and

10

(b)   

the claimant’s earnings factors derived from Class 2

contributions.

      (3)  

Regulations may make provision for the purposes of sub-paragraph

(2)(a) for determining the claimant’s relevant earnings for the base

tax year.

15

     (3A)  

Regulations under sub-paragraph (3) may, in particular, make

provision—

(a)   

for making that determination by reference to the amount of

a person’s earnings for periods comprised in the base tax

year;

20

(b)   

for determining the amount of a person’s earnings for any

such period by—

(i)   

first determining the amount of the earnings for the

period in accordance with regulations made for the

purposes of section 3(2) of the Contributions and

25

Benefits Act, and

(ii)   

then disregarding so much of the amount found in

accordance with sub-paragraph (i) as exceeded the

base tax year’s lower earnings limit (or the prescribed

equivalent).”

30

(5)   

In sub-paragraph (4)—

(a)   

in paragraph (a), for “persons who” substitute “persons—

(i)   

who”,

(b)   

in that paragraph, after “prescribed time” insert “, or

(ii)   

who satisfy other prescribed conditions”, and

35

(c)   

in paragraph (b), for “so entitled” substitute “entitled as mentioned in

paragraph (a)(i)”.

Abolition of adult dependency increases

12      

Maternity allowance and carer’s allowance

(1)   

The following provisions of the Social Security Contributions and Benefits Act

40

1992 (c. 4) (“the Benefits Act”) are omitted on 6 April 2010—

(a)   

section 82 (maternity allowance: increase for adult dependants); and

(b)   

section 90 (carer’s allowance: increase for adult dependants).

(2)   

Nothing in subsection (1) or Part 2 of Schedule 7 applies in relation to—

 
 

Welfare Reform Bill
Part 1 — Social security

17

 

(a)   

the amount of a maternity allowance payable for a maternity allowance

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

(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.

5

(3)   

In subsection (2)(b)—

“a qualifying person” means a person who—

(a)   

has, before 6 April 2010, made a claim for an increase in a carer’s

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);

“the appropriate date” means whichever is the earlier of—

(a)   

6 April 2020; and

15

(b)   

the date when the qualifying person ceases to be either entitled

to that increase or a beneficiary to whom section 92 of the

Benefits Act applies in respect of that increase.

External provider social loans

13      

External provider social loans

20

(1)   

After Part 8 of the Social Security Contributions and Benefits Act 1992 (c. 4)

insert—

“Part 8ZA

External Provider Social Loans

140ZA   

  Arrangements for external provider social loans

25

(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

to eligible persons.

(2)   

In subsection (1) “eligible person” means an individual who—

30

(a)   

is in receipt of a prescribed benefit, or

(b)   

has needs of a prescribed description.

(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

made,

 
 

Welfare Reform Bill
Part 1 — Social security

18

 

(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;

(e)   

make provision as to the keeping of accounts by the lender;

(f)   

require the provision of information by the lender to the

Secretary of State;

(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

social fund.

(8)   

Any sums received by virtue of subsection (6)(b) are to be paid into the

social fund.

20

(9)   

In this Part a loan made by virtue of arrangements under this section is

referred to as an “external provider social loan”.

140ZB   

  Transfer of loans

(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

made, and

(b)   

for the right to repayment of an external provider social loan to

be transferred to the Secretary of State on the arrangements

30

ceasing to be in force.

(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

Parliament.”

40

(2)   

After section 78 of the Social Security Administration Act 1992 (c. 5) insert—

 
 

 
previous section contents continue
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2009
Revised 4 March 2009