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
19

“Repayments of external provider social loans
78A
Repayments of external provider social loans
(1)
Regulations may provide for the collection by the Secretary of State of
repayments of a qualifying loan—
(a)
by deduction in accordance with the regulations from
5
prescribed benefits payable to—
(i)
the borrower, or
(ii)
where the borrower is a member of a couple, the other
member of the couple, or
(b)
in any other way.
10
(2)
In subsection (1) “qualifying loan” means—
(a)
an external provider social loan, as defined by subsection (9) of
section 140ZA of the Contributions and Benefits Act, or
(b)
a loan made by virtue of arrangements made under any
provision having effect in Northern Ireland and corresponding
15
to that section.
(3)
The Secretary of State must pay any amounts collected to the person to
whom the loan is repayable, except to the extent that the regulations
otherwise provide.
(4)
In this section “couple” has the meaning given by section 137(1) of the
20
Contributions and Benefits Act.”
14
Power to restrict availability of social fund loans
In section 138 of the Social Security Contributions and Benefits Act 1992
(payments out of the social fund) after subsection (2) insert—
“(2A)
Directions given by the Secretary of State under subsection (1)(b) may
25
restrict the making of payments by way of crisis loan or budgeting loan
to persons living in areas in which external provider social loans (as
defined by section 140ZA(9)) are to any extent available.”
15
Supply of information to or by lenders making external provider social loans
After section 122F of the Social Security Administration Act 1992 (c. 5) insert—
30
“Lenders making external provider social loans
122G
Supply of information in connection with external provider social
loans
(1)
Regulations may make provision—
(a)
authorising the Secretary of State, or a person providing
35
services to the Secretary of State, to supply to relevant persons
information relating to social security, and
(b)
authorising or requiring relevant persons to supply to the
Secretary of State, or a person providing services to the
Secretary of State, information relating to the operation of
40
arrangements under section 140ZA of the Contributions and
Benefits Act (external provider social loans).

Welfare Reform Bill
Part 1 — Social security
20

(2)
In this section “relevant person” means—
(a)
a person with whom arrangements have been made under
section 140ZA of the Contributions and Benefits Act, or
(b)
a person providing services to such a person.
(3)
Regulations under this section must specify the purposes for which
5
information may be supplied by virtue of subsection (1)(a), which must
be purposes connected with external provider social loans.
(4)
Regulations may make provision as to the use or disclosure of
information supplied under the regulations (including provision
creating criminal offences).
10
(5)
In this section “external provider social loan” has the meaning given by
section 140ZA(9) of the Contributions and Benefits Act.”
Community care grants
16
Community care grants relating to specified goods or services
(1)
The Social Security Contributions and Benefits Act 1992 (c. 4) is amended as
15
follows.
(2)
In section 138 (payments out of social fund), before subsection (3) insert—
“(2B)
If or to the extent that directions issued under subsection (2) of section
140 by virtue of subsection (4)(ca) of that section require the award of a
community care grant to be expressed as the award of a payment for
20
goods or services specified in the award, the power to make a payment
out of the social fund under subsection (1)(b) shall be exercised by
making a payment to a third party specified in the award, with a view
to the third party providing, or arranging for the provision of, the
specified goods or services for the applicant.”
25
(3)
In subsection (3) of that section, for “The power” substitute “If or to the extent
that subsection (2B) does not apply, the power”.
(4)
In section 139 (awards by social fund officers), in subsection (1), after “how
much it is to be” insert “or, where section 138(2B) applies, what goods or
services are to be specified”.
30
(5)
For subsection (5) of that section substitute—
“(5)
Payment of an award shall be made to the applicant unless—
(a)
section 138(2B) applies, or
(b)
the appropriate officer determines otherwise.”
(6)
In section 140 (principles of determination), in subsection (4), after paragraph
35
(c) insert—
“(ca)
that, except in circumstances specified in the direction, an
appropriate officer shall express an award of a community care
grant as the award of a payment for goods or services that are—
(i)
determined by the appropriate officer in accordance
40
with the direction,
(ii)
specified in the award, and

Welfare Reform Bill
Part 1 — Social security
21

(iii)
to be provided by, or under arrangements made by, a
specified person with whom arrangements have been
made by the Secretary of State.”
(7)
After that subsection insert—
“(4A)
The reference in subsection (1) to the amount or value to be awarded is,
5
in a case where directions under subsection (4)(ca) apply, to be read as
a reference to the goods or services to be specified in the award.”
17
Community care grants: reviews and information
(1)
In section 38 of the Social Security Act 1998 (c. 14) (reviews of determinations)
in subsection (1)—
10
(a)
in paragraph (a), after “social fund determination” insert “other than an
excluded determination”, and
(b)
in paragraph (b), for “such a determination” substitute “a social fund
determination”.
(2)
After that subsection insert—
15
“(1A)
For the purposes of subsection (1)(a) an “excluded determination” is
any determination to award a community care grant where the award
is expressed as the award of a payment for goods or services specified
in the award, other than such a determination made in prescribed
circumstances.”
20
(3)
After section 122G of the Social Security Administration Act 1992 (c. 5) insert—
“Persons supplying goods and services to recipients of community care grants
122H
Supply of information in connection with community care grants
(1)
In this section “relevant supplier” means—
(a)
a person with whom the Secretary of State has made
25
arrangements of the kind mentioned in section 140(4)(ca)(iii) of
the Contributions and Benefits Act (arrangements for supply of
goods or services in connection with community care grants), or
(b)
a person providing services to such a person.
(2)
Regulations may make provision authorising the Secretary of State, or
30
a person providing services to the Secretary of State, to supply to
relevant suppliers information relating to community care grants.
(3)
Regulations may make provision authorising or requiring relevant
suppliers to supply to the Secretary of State or a person providing
services to the Secretary of State, information relating to the operation
35
of the arrangements.
(4)
Regulations under this section must specify the purposes for which
information may be supplied by virtue of subsection (2) or (3), which
must be purposes connected with community care grants.
(5)
Regulations may make provision as to the use or disclosure of
40
information supplied under the regulations (including provision
creating criminal offences).

Welfare Reform Bill
Part 1 — Social security
22

(6)
In this section “community care grant” has the same meaning as in Part
8 of the Contributions and Benefits Act.”
Payments on account
18
Payments on account
(1)
The Social Security Administration Act 1992 (c. 5) is amended as follows.
5
(2)
In section 5 (regulations about claims for and payments of benefit)—
(a)
in subsection (1), omit paragraph (r) (which relates to payments on
account), and
(b)
after that subsection insert—
“(1A)
Regulations may provide for the making of a payment on
10
account of a benefit to which this section applies—
(a)
where a person by or in respect of whom a claim has
been or might be made (including a person in respect of
whom an award has been made) would be in need if no
payment on account were made, or
15
(b)
where an award has been made but it is impracticable to
pay the full amount of the benefit immediately.
(1B)
Regulations may—
(a)
make provision about the manner in which payments
on account of a benefit to which this section applies are
20
to be set against subsequent payments of benefit (other
than payments on account), and
(b)
prescribe circumstances in which payments on account
are not to be set against subsequent payments of benefit
(and are not to be otherwise recoverable).”
25
(3)
In section 7 (relationship between community charge benefit and other
benefits), in subsection (2)(a) for “section 5(1)(r)” substitute “section 5(1A)”.
(4)
In section 16 (emergency payments by local authorities and other bodies), in
subsection (1), for “subsection (1)(r)” substitute “subsection (1A)”.
(5)
In section 71 (overpayments—general), for subsection (7) substitute—
30
“(7)
Circumstances may be prescribed in which a payment on account by
virtue of section 5(1A) may be recovered to the extent that it is not set
against subsequent payments of the benefit to which it relates.”
Benefit sanctions for offenders
19
Loss of benefit provisions
35
(1)
Before section 7 of the Social Security Fraud Act 2001 (c. 11) (but after the italic
heading immediately before that section) insert—
“6A
Meaning of “disqualifying benefit” and “sanctionable benefit” for
purposes of sections 6B and 7
(1)
In this section and sections 6B and 7—
40

Welfare Reform Bill
Part 1 — Social security
23

“disqualifying benefit” means (subject to any regulations under
section 10(1))—
(a)
any benefit under the Jobseekers Act 1995 or the
Jobseekers (Northern Ireland) Order 1995;
(b)
any benefit under the State Pension Credit Act 2002 or
5
the State Pension Credit Act (Northern Ireland) 2002;
(c)
any benefit under Part 1 of the Welfare Reform Act 2007
or Part 1 of the Welfare Reform Act (Northern Ireland)
2007 (employment and support allowance);
(d)
any benefit under the Social Security Contributions and
10
Benefit Act 1992 or the Social Security Contributions and
Benefits (Northern Ireland) Act 1992 other than—
(i)
maternity allowance;
(ii)
statutory sick pay and statutory maternity pay;
(e)
any war pension;
15
“sanctionable benefit” means (subject to subsection (2) and to any
regulations under section 10(1)) any disqualifying benefit other
than—
(a)
joint-claim jobseeker’s allowance;
(b)
any retirement pension;
20
(c)
graduated retirement benefit;
(d)
disability living allowance;
(e)
attendance allowance;
(f)
child benefit;
(g)
guardian’s allowance;
25
(h)
a payment out of the social fund in accordance with Part
8 of the Social Security Contributions and Benefits Act
1992;
(i)
a payment under Part 10 of that Act (Christmas
bonuses).
30
(2)
In their application to Northern Ireland sections 6B and 7 shall have
effect as if references to a sanctionable benefit were references only to a
war pension.
6B
Loss of benefit in case of conviction, penalty or caution for benefit
offence
35
(1)
Subsection (4) applies where a person (“the offender”)—
(a)
is convicted of one or more benefit offences in any proceedings,
(b)
after being given a notice under subsection (2) of the
appropriate penalty provision by an appropriate authority,
agrees in the manner specified by the appropriate authority to
40
pay a penalty under the appropriate penalty provision to the
appropriate authority by reference to an overpayment, in a case
where the offence mentioned in subsection (1)(b) of the
appropriate penalty provision is a benefit offence, or
(c)
is cautioned in respect of one or more benefit offences.
45
(2)
In subsection (1)(b)—
(a)
“the appropriate penalty provision” means section 115A of the
Administration Act (penalty as alternative to prosecution) or
section 109A of the Social Security Administration (Northern

Welfare Reform Bill
Part 1 — Social security
24

Ireland) 1992 (the corresponding provision for Northern
Ireland);
(b)
“appropriate authority” means—
(i)
in relation to section 115A of the Administration Act, the
Secretary of State or an authority which administers
5
housing benefit or council tax benefit, and
(ii)
in relation to section 109A of the Social Security
Administration (Northern Ireland) Act 1992, the
Department (within the meaning of that Act) or the
Northern Ireland Housing Executive.
10
(3)
Subsection (4) does not apply by virtue of subsection (1)(a) if, because
the proceedings in which the offender was convicted constitute the
later set of proceedings for the purposes of section 7, the restriction in
subsection (2) of that section applies in the offender’s case.
(4)
If this subsection applies and the offender is a person with respect to
15
whom the conditions for an entitlement to a sanctionable benefit are or
become satisfied at any time within the disqualification period, then,
even though those conditions are satisfied, the following restrictions
shall apply in relation to the payment of that benefit in the offender’s
case.
20
(5)
Subject to subsections (6) to (10), the sanctionable benefit shall not be
payable in the offender’s case for any period comprised in the
disqualification period.
(6)
Where the sanctionable benefit is income support, the benefit shall be
payable in the offender’s case for any period comprised in the
25
disqualification period as if the applicable amount used for the
determination under section 124(4) of the Social Security Contributions
and Benefits Act 1992 of the amount of the offender’s entitlement for
that period were reduced in such manner as may be prescribed.
(7)
The Secretary of State may by regulations provide that, where the
30
sanctionable benefit is jobseeker’s allowance, any income-based
jobseeker’s allowance shall be payable, during the whole or a part of
any period comprised in the disqualification period, as if one or more
of the following applied—
(a)
the rate of the allowance were such reduced rate as may be
35
prescribed;
(b)
the allowance were payable only if there is compliance by the
offender with such obligations with respect to the provision of
information as may be imposed by the regulations;
(c)
the allowance were payable only if the circumstances are
40
otherwise such as may be prescribed.
(8)
The Secretary of State may by regulations provide that, where the
sanctionable benefit is state pension credit, the benefit shall be payable
in the offender’s case for any period comprised in the disqualification
period as if the rate of the benefit were reduced in such manner as may
45
be prescribed.
(9)
The Secretary of State may by regulations provide that, where the
sanctionable benefit is employment and support allowance, any
income-related allowance shall be payable, during the whole or a part

Welfare Reform Bill
Part 1 — Social security
25

of any period comprised in the disqualification period, as if one or more
of the following applied—
(a)
the rate of the allowance were such reduced rate as may be
prescribed;
(b)
the allowance were payable only if there is compliance by the
5
offender with such obligations with respect to the provision of
information as may be imposed by the regulations;
(c)
the allowance were payable only if the circumstances are
otherwise such as may be prescribed.
(10)
The Secretary of State may by regulations provide that, where the
10
sanctionable benefit is housing benefit or council tax benefit, the benefit
shall be payable, during the whole or a part of any period comprised in
the disqualification period, as if one or more of the following applied—
(a)
the rate of the benefit were reduced in such manner as may be
prescribed;
15
(b)
the benefit were payable only if the circumstances are such as
may be prescribed.
(11)
For the purposes of this section the disqualification period, in relation
to any disqualifying event, means the period of four weeks beginning
with such date, falling after the date of the disqualifying event, as may
20
be determined by or in accordance with regulations made by the
Secretary of State.
(12)
This section has effect subject to section 6C.
(13)
In this section and section 6C—
“benefit offence” means—
25
(a)
any post-commencement offence in connection with a
claim for a disqualifying benefit;
(b)
any post-commencement offence in connection with the
receipt or payment of any amount by way of such a
benefit;
30
(c)
any post-commencement offence committed for the
purpose of facilitating the commission (whether or not
by the same person) of a benefit offence;
(d)
any post-commencement offence consisting in an
attempt or conspiracy to commit a benefit offence;
35
“disqualifying event” means the conviction falling within
subsection (1)(a), the agreement falling within subsection (1)(b)
or the caution falling within subsection (1)(c);
“post-commencement offence” means any criminal offence
committed after the commencement of this section.
40
6C
Section 6B: supplementary provisions
(1)
Where—
(a)
the conviction of any person of any offence is taken into account
for the purposes of the application of section 6B in relation to
that person, and
45
(b)
that conviction is subsequently quashed,

all such payments and other adjustments shall be made as would be
necessary if no restriction had been imposed by or under section 6B that
could not have been imposed if the conviction had not taken place.