Welfare Reform Bill

House of Commons

Session 2008 - 09
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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,
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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)).
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(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).
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(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-

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

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(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;
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(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—

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(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
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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
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made,

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(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.
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(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.
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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.”
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(2)
After section 78 of the Social Security Administration Act 1992 (c. 5) insert—