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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

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(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.

 
 

 
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