Welfare Reform Bill

Session 2010 - 11
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Welfare Reform Bill

Welfare Reform Bill
Schedule 1 — Universal credit: supplementary regulation-making powers
101

Schedules
Schedule 1
Section 31

Universal credit: supplementary regulation-making powers
Entitlement of joint claimants
1
Regulations may provide for circumstances in which joint claimants may be
5
entitled to universal credit without each of them meeting all the basic
conditions referred to in section 4.
Linking periods
2
Regulations may provide for periods of entitlement to universal credit
which are separated by no more than a prescribed number of days to be
10
treated as a single period.
Couples
3     (1)
Regulations may provide—
(a)
for a claim made by members of a couple jointly to be treated as a
claim made by one member of the couple as a single person (or as
15
claims made by both members as single persons);
(b)
for claims made by members of a couple as single persons to be
treated as a claim made jointly by the couple.
      (2)
Regulations may provide—
(a)
where an award is made to joint claimants who cease to be entitled
20
to universal credit as such by ceasing to be a couple, for the making
of an award (without a claim) to either or each one of them—
(i)
as a single person, or
(ii)
jointly with another person;
(b)
where an award is made to a single claimant who ceases to be
25
entitled to universal credit as such by becoming a member of a
couple, for the making of an award (without a claim) to the members
of the couple jointly;
(c)
for the procedure to be followed, and information or evidence to be
supplied, in relation to the making of an award under this
30
paragraph.
Calculation of capital and income
4     (1)
Regulations may for any purpose of this Part provide for the calculation or
estimation of—
(a)
a person’s capital,
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Schedule 1 — Universal credit: supplementary regulation-making powers
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(b)
a person’s earned and unearned income, and
(c)
a person’s earned and unearned income in respect of an assessment
period.
      (2)
Regulations under sub-paragraph (1)(c) may include provision for the
calculation to be made by reference to an average over a period, which need
5
not include the assessment period concerned.
      (3)
Regulations under sub-paragraph (1) may—
(a)
specify circumstances in which a person is to be treated as having or
not having capital or earned or unearned income;
(b)
specify circumstances in which income is to be treated as capital or
10
capital as earned income or unearned income;
(c)
specify circumstances in which unearned income is to be treated as
earned, or earned income as unearned;
(d)
provide that a person’s capital is to be treated as yielding income at
a prescribed rate;
15
(e)
provide that the capital or income of one member of a couple is to be
treated as that of the other member.
      (4)
Regulations under sub-paragraph (3)(a) may in particular provide that
persons of a prescribed description are to be treated as having a prescribed
minimum level of earned income.
20
      (5)
In the case of joint claimants the income and capital of the joint claimants
includes (subject to sub-paragraph (6)) the separate income and capital of
each of them.
      (6)
Regulations may specify circumstances in which capital and income of
either of joint claimants is to be disregarded in calculating their joint capital
25
and income.
Responsibility for children etc
5     (1)
Regulations may for any purpose of this Part specify circumstances in which
a person is or is not responsible for a child or qualifying young person.
      (2)
Regulations may for any purpose of this Part make provision about
30
nominations of the responsible carer for a child (see section 19(6)(b)(ii)).
Vouchers
6     (1)
This paragraph applies in relation to an award of universal credit where the
calculation of the amount of the award includes, by virtue of any provision
of this Part, an amount in respect of particular costs which a claimant may
35
incur.
      (2)
Regulations may provide for liability to pay all or part of the award to be
discharged by means of provision of a voucher.
      (3)
But the amount paid by means of a voucher may not in any case exceed the
total of the amounts referred to in sub-paragraph (1) which are included in
40
the calculation of the amount of the award.
      (4)
For these purposes a voucher is a means other than cash by which a claimant
may to any extent meet costs referred to in sub-paragraph (1) of a particular
description.

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Schedule 2 — Universal credit: amendments
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      (5)
A voucher may for these purposes—
(a)
be limited as regards the person or persons who will accept it;
(b)
be valid only for a limited time.
Good reason
7
Regulations may for any purpose of this Part provide for—
5
(a)
circumstances in which a person is to be treated as having or not
having a good reason for an act or omission;
(b)
matters which are or are not to be taken into account in determining
whether a person has a good reason for an act or omission.
Schedule 2
10
Section 32

Universal credit: amendments
Children Act 1989 (c. 41)
1
In the Children Act 1989, in the following provisions, after “in receipt” there
is inserted “of universal credit (except in such circumstances as may be
prescribed),”—
15
(a)
section 17(9) (provision of services to children in need, their families
and others);
(b)
section 17A(5)(b) (direct payments);
(c)
section 29(3) and (3A) (recoupment of cost of providing services etc);
(d)
paragraph 21(4) of Schedule 2 (local authority support for children
20
and families).
Child Support Act 1991 (c. 48)
2
In the Child Support Act 1991, in paragraph 5 of Schedule 1 (maintenance
calculations), as it has effect apart from section 1 of the Child Support,
Pensions and Social Security Act 2000, in sub-paragraph (4) after “Where”
25
there is inserted “universal credit (in such circumstances as may be
prescribed),”.
Social Security Administration Act 1992 (c. 5)
3
The Social Security Administration Act 1992 is amended as follows.
4
In section 1 (entitlement to benefit dependent on claim), in subsection (4),
30
before paragraph (a) there is inserted—
“(za)
universal credit;”.
5
In section 5 (regulations about claims and payments)—
(a)
in subsection (2), before paragraph (a) there is inserted—
“(za)
universal credit;”;
35
(b)
in subsection (6), after “in relation to” there inserted “universal credit
or”.
6     (1)
Section 15A (payment out of benefit of sums in respect of mortgage interest)
is amended as follows.

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Schedule 2 — Universal credit: amendments
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      (2)
In subsection (1)—
(a)
in paragraph (a), after “entitled, to” there is inserted “universal
credit,”;
(b)
in paragraph (b), after “determining” there is inserted “the maximum
amount for the purposes of universal credit or”;
5
(c)
in the words after paragraph (b), after “whose” there is inserted
“maximum amount for the purposes of universal credit or”.
      (3)
In subsection (4)—
(a)
in the definition of “qualifying associate”—
(i)
before “falls” there is inserted “or universal credit”;
10
(ii)
before “as responsible” there is inserted “or Part 1 of the
Welfare Reform Act 2011”;
(b)
in the definition of “relevant benefits”, before paragraph (a) there is
inserted—
“(za)
universal credit;”.
15
7
In section 74 (income support and other payments), in subsection (2)(b), after
“by way of” there is inserted “universal credit or”.
8
In section 74A (payments of benefit where maintenance payments collected
by Secretary of State), in subsection (7), after “applies are” there is inserted
“universal credit,”.
20
9
In section 78 (recovery of social fund awards), in subsection (6)(d), after
“receiving” there is inserted “universal credit,”.
10
In section 105 (failure to maintain - general), in subsection (1)(b), after
“neglect” there is inserted “universal credit,”.
11
In section 106 (recovery of expenditure on benefit from person liable for
25
maintenance), in subsections (1), (2), (3) and (4)(a) and (b), after “income
support” there is inserted “or universal credit”.
12
In section 108 (reduction of expenditure on income support etc), in
subsection (1)(a), after “income support” there is inserted “or universal
credit”.
30
13
In section 109 (diversion of arrested earnings - Scotland), in subsection (1),
after “in receipt of”, in both places, there is inserted “universal credit,”.
14
In section 121DA (interpretation of Part 6), in subsection (1), after paragraph
(hi) there is inserted—
“(hj)
Part 1 of the Welfare Reform Act 2011;”.
35
15
In section 122B (supply of other government information for fraud
prevention and verification), in subsection (3)(b) after “Welfare Reform Act
2007” there is inserted “, Part 1 of the Welfare Reform Act 2011”.
16    (1)
Section 122F (supply by rent officers of information relating to housing
benefit) is amended as follows.
40
      (2)
In the heading, for “information relating to housing benefit” there is
substituted “benefit information”.
      (3)
In subsection (1), for “housing benefit information” there is substituted
“benefit information”.

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Schedule 2 — Universal credit: amendments
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      (4)
In subsection (3)(a) after “relating to” there is inserted “universal credit”.
      (5)
In subsection (4)—
(a)
for “housing benefit information” there is substituted “benefit
information”;
(b)
after “relating to” there is inserted “universal credit”.
5
17
In section 124 (age, death and marriage), in subsection (1)—
(a)
in paragraph (ac), the final “and” is repealed;
(b)
after that paragraph there is inserted—
“(ad)
of the provisions of Part 1 of the Welfare Reform Act
2011;”.
10
18
In section 125 (regulations as to notification of death), in subsection (1), after
“2007” there is inserted “, Part 1 of the Welfare Reform Act 2011”.
19
In section 126 (information from personal representatives), in subsection (1),
after “receipt of” there is inserted “universal credit”.
20
In section 130 (duties of employers), in subsection (1), before paragraph (a)
15
there is inserted—
“(za)
universal credit;”.
21
In section 132 (duties of employers - statutory maternity pay etc), in
subsection (1), before paragraph (a) there is inserted—
“(za)
universal credit;”.
20
22
In section 150 (uprating)—
(a)
in subsection (1) at the end there is inserted—
“(n)
specified in regulations under sections 9 to 12 of the
Welfare Reform Act 2011;”;
(b)
in subsection (7), after “2007” there is inserted “or Part 1 of the
25
Welfare Reform Act 2011”.
23
After section 159C there is inserted—
“159D
Effect of alterations affecting universal credit
(1)
Subject to such exceptions and conditions as may be prescribed,
subsection (2) or (3) shall have effect where—
30
(a)
an award of universal credit is in force in favour of any
person (“the recipient”), and
(b)
an alteration—
(i)
in any element of universal credit,
(ii)
in the recipient’s benefit income,
35
(iii)
in any amount to be deducted in respect of earned
income under section 8(3)(a) of the Welfare Reform
Act 2011,
(iv)
in any component of a contribution-based jobseeker’s
allowance, or
40
(v)
in any component of a contributory employment and
support allowance, or
(vi)
in such other matters as may be prescribed,

affects the computation of the amount of universal credit to
which he is entitled.
45

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(2)
Where, as a result of the alteration, the amount of universal credit to
which the recipient is entitled is increased or reduced, then, as from
the commencing date, the amount of universal credit payable in the
case of the recipient under the award shall be the increased or
reduced amount, without any further decision of the Secretary of
5
State; and the award shall have effect accordingly.
(3)
Where, notwithstanding the alteration, the recipient continues on
and after the commencing date to be entitled to the same amount by
way of universal credit as before, the award shall continue in force
accordingly.
10
(4)
Subsection (5) applies where a statement is made in the House of
Commons by or on behalf of the Secretary of State which specifies—
(a)
in relation to any of the items referred to in subsection
(1)(b)(i) to (vi), the amount of the alteration which he
proposes to make by an order under section 150, 150A or 152
15
or by or under any other enactment, and
(b)
the date on which he proposes to bring the alteration in force
(“the proposed commencing date”).
(5)
If, in a case where this subsection applies, an award of universal
credit is made in favour of a person before the proposed
20
commencing date and after the date on which the statement is made,
the award—
(a)
may provide for the universal credit to be paid as from the
proposed commencing date at a rate determined by reference
to the amounts of the items referred to in subsection (1)(b)(i)
25
to (vi) which will be in force on that date, or
(b)
may be expressed in terms of the amounts of those items in
force at the date of the award.
(6)
In this section—
“alteration”—
30
(a)
in relation to any element of universal credit, means
its alteration by or under any enactment;
(b)
in relation to a person’s benefit income, means the
alteration of any of the sums referred to in section 150
or 150A by any enactment or by an order under
35
section 150, 150A or 152 to the extent that any such
alteration affects the amount of his benefit income;
(c)
in relation to any component of a contribution-based
jobseeker’s allowance or a contributory employment
and support allowance, means its alteration by or
40
under any enactment;
(d)
in relation to any other matter, has such meaning as
may be prescribed;
“benefit income”, in relation to a person, means so much of his
income as consists of benefit under the Contributions and
45
Benefits Act or personal independence payment;
“the commencing date”, in relation to an alteration, means the
date on which the alteration comes into force in relation to the
recipient;
“component”—
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(a)
in relation to contribution-based jobseeker’s
allowance, means any of the sums specified in
regulations under the Jobseekers Act 1995 which are
relevant in calculating the amount payable by way of
a jobseeker’s allowance;
5
(b)
in relation to a contributory employment and support
allowance, means any of the sums specified in
regulations under Part 1 of the Welfare Reform Act
2007 which are relevant in calculating the amount
payable by way of such an allowance;
10
“element”, in relation to universal credit, means any of the
amounts specified in regulations under sections 9 to 12 of the
Welfare Reform Act 2011 which are included in the
calculation of an award of universal credit.”
24
After section 160B there is inserted—
15
“160C
Implementation of increases in universal credit due to attainment of
a particular age
(1)
This section applies where—
(a)
an award of universal credit is in force in favour of a person
(“the recipient”), and
20
(b)
an element has become applicable, or applicable at a
particular rate, because he or some other person has reached
a particular age (“the qualifying age”).
(2)
If, as a result of the recipient or other person reaching the qualifying
age, the recipient becomes entitled to an increased amount of
25
universal credit, the amount payable to or for him under the award
shall, as from the day on which he becomes so entitled, be that
increased amount, without any further decision of the Secretary of
State; and the award shall have effect accordingly.
(3)
Subsection (2) does not apply where, in consequence of the recipient
30
or other person reaching the qualifying age, a question arises in
relation to the recipient’s entitlement to—
(a)
a benefit under the Contribution and Benefits Act, or
(b)
personal independence payment.
(4)
Subsection (2) does not apply where, in consequence of the recipient
35
or other person reaching the qualifying age, a question arises in
relation to the recipient’s entitlement to universal credit, other
than—
(a)
the question whether the element concerned, or any other
element, becomes or ceases to be applicable, or applicable at
40
a particular rate, in the recipient’s case, and
(b)
the question whether, in consequence, the amount of his
universal credit falls to be varied.
(5)
In this section, “element”, in relation to universal credit, means any
of the amounts specified in regulations under sections 9 to 12 of the
45
Welfare Reform Act 2011 which are included in the calculation of an
award of universal credit.”