Session 2010 - 11
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Welfare Reform Bill


Welfare Reform Bill
Schedule 6 — Migration to universal credit

121

 

(ii)   

”;

(b)   

“earnings,” (before “pension payments”) is repealed.

6     (1)  

Section 2 of the Welfare Reform Act 2007 (amount of contributory

allowance) is amended as follows.

      (2)  

In subsection (1)(c), after “making” there is inserted—

5

“(i)   

deductions in respect of earnings calculated in the

prescribed manner (which may include multiplying

some or all earnings by a prescribed percentage), and

(ii)   

”.

      (3)  

At the end there is inserted—

10

“(6)   

In subsection (1)(c)(i) the reference to earnings is to be construed in

accordance with sections 3, 4 and 112 of the Social Security

Contributions and Benefits Act 1992.”

Schedule 6

Section 37

 

Migration to universal credit

15

General

1     (1)  

Regulations may make provision for the purposes of, or in connection with,

replacing existing benefits with universal credit.

      (2)  

In this Schedule “existing benefit” means—

(a)   

a benefit abolished under section 34(1);

20

(b)   

any other prescribed benefit.

      (3)  

In this Schedule “appointed day” means the day appointed for the coming

into force of section 1.

Claims before the appointed day

2     (1)  

The provision referred to in paragraph 1(1) includes—

25

(a)   

provision for a claim for universal credit to be made before the

appointed day for a period beginning on or after that day;

(b)   

provision for a claim for universal credit made before the appointed

day to be treated to any extent as a claim for an existing benefit;

(c)   

provision for a claim for an existing benefit made before the

30

appointed day to be treated to any extent as a claim for universal

credit.

      (2)  

The provision referred to in paragraph 1(1) includes provision, where a

claim for universal credit is made (or is treated as made) before the

appointed day, for an award on the claim to be made in respect of a period

35

before the appointed day (including provision as to the conditions of

entitlement for, and amount of, such an award).

Claims after the appointed day

3     (1)  

The provision referred to in paragraph 1(1) includes—

 
 

Welfare Reform Bill
Schedule 6 — Migration to universal credit

122

 

(a)   

provision permanently or temporarily excluding the making of a

claim for universal credit after the appointed day by—

(i)   

a person to whom an existing benefit is awarded, or

(ii)   

a person who would be entitled to an existing benefit on

making a claim for it;

5

(b)   

provision temporarily excluding the making of a claim for universal

credit after the appointed day by any other person;

(c)   

provision excluding entitlement to universal credit temporarily or

for a particular period;

(d)   

provision for a claim for universal credit made after the appointed

10

day to be treated to any extent as a claim for an existing benefit;

(e)   

provision for a claim for an existing benefit made after the appointed

day to be treated to any extent as a claim for universal credit.

      (2)  

The provision referred to in paragraph 1(1) includes provision, where a

claim for universal credit is made (or is treated as made) after the appointed

15

day, for an award on the claim to be made in respect of a period before the

appointed day (including provision as to the conditions of entitlement for,

and amount of, such an award).

Awards

4     (1)  

The provision referred to in paragraph 1(1) includes—

20

(a)   

provision for terminating an award of an existing benefit;

(b)   

provision for making an award of universal credit, with or without

application, to a person whose award of existing benefit is

terminated.

      (2)  

The provision referred to in sub-paragraph (1)(b) includes—

25

(a)   

provision imposing requirements as to the procedure to be followed,

information to be supplied or assessments to be undergone in

relation to an award by virtue of that sub-paragraph or an

application for such an award;

(b)   

provision as to the consequences of failure to comply with any such

30

requirement;

(c)   

provision as to the terms on which, and conditions subject to which,

such an award is made, including—

(i)   

provision temporarily or permanently disapplying, or

otherwise modifying, conditions of entitlement to universal

35

credit in relation to the award;

(ii)   

provision temporarily or permanently disapplying, or

otherwise modifying, any requirement under this Part for a

person to be assessed in respect of capability for work or

work-related activity;

40

(d)   

provision as to the amount of such an award;

(e)   

provision that fulfilment of any condition relevant to entitlement to

an award of an existing benefit, or relevant to the amount of such an

award, is to be treated as fulfilment of an equivalent condition in

relation to universal credit.

45

      (3)  

Provision under sub-paragraph (2)(d) may secure that where an award of

universal credit is made by virtue of sub-paragraph (1)(b)—

 
 

Welfare Reform Bill
Schedule 6 — Migration to universal credit

123

 

(a)   

the amount of the award is not less than the amount to which the

person would have been entitled under the terminated award, or is

not less than that amount by more than a prescribed amount;

(b)   

if the person to whom it is made ceases to be entitled to universal

credit for not more than a prescribed period, the gap in entitlement

5

is disregarded in calculating the amount of any new award of

universal credit.

Work-related requirements and sanctions

5     (1)  

The provision referred to in paragraph 1(1) includes—

(a)   

provision relating to the application of work-related requirements

10

for relevant benefits;

(b)   

provision relating to the application of sanctions.

      (2)  

The provision referred to in sub-paragraph (1)(a) includes—

(a)   

provision that a claimant commitment for a relevant benefit is to be

treated as a claimant commitment for universal credit;

15

(b)   

provision that a work-related requirement for a relevant benefit is

treated as a work-related requirement for universal credit;

(c)   

provision for anything done which is relevant to compliance with a

work-related requirement for a relevant benefit to be treated as done

for the purposes of compliance with a work-related requirement for

20

universal credit;

(d)   

provision temporarily disapplying any provision of this Part in

relation to work-related requirements for universal credit.

      (3)  

The provision referred to in sub-paragraph (1)(b) includes—

(a)   

provision for a sanction relevant to an award of a relevant benefit to

25

be applied to an award of universal credit;

(b)   

provision for anything done which is relevant to the application of a

sanction for a relevant benefit to be treated as done for the purposes

of the application of a sanction for universal credit;

(c)   

provision temporarily disapplying any provision of this Part in

30

relation to the application of sanctions.

      (4)  

In this paragraph—

“relevant benefit” means—

(a)   

jobseeker’s allowance,

(b)   

employment and support allowance, and

35

(c)   

income support;

“work-related requirement” means—

(a)   

for universal credit, a work-related requirement within the

meaning of this Part;

(b)   

for jobseeker’s allowance, a requirement imposed—

40

(i)   

by virtue of regulations under section 8 or 17A of the

Jobseekers Act 1995,

(ii)   

by a jobseeker’s direction (within the meaning of

section 19A of that Act),

(iii)   

by virtue of regulations under section 2A, 2AA or 2D

45

of the Social Security Administration Act 1992, or

(iv)   

by a direction under section 2F of that Act;

 
 

Welfare Reform Bill
Schedule 7 — Jobseeker’s allowance in interim period: consequential amendments

124

 

(c)   

for employment and support allowance, a requirement

imposed—

(i)   

by virtue of regulations under section 8, 9, 11, 12 or 13

of the Welfare Reform Act 2007,

(ii)   

by a direction under section 15 of that Act,

5

(iii)   

by virtue of regulations under section 2A, 2AA or 2D

of the Social Security Administration Act 1992, or

(iv)   

by a direction under section 2F of that Act;

(d)   

for income support, a requirement imposed—

(i)   

by virtue of regulations under section 2A, 2AA or 2D

10

of the Social Security Administration Act 1992, or

(ii)   

by a direction under section 2F of that Act;

“sanction” means a reduction of benefit under—

(a)   

section 26 or 27 above,

(b)   

section 19, 19A or 19B of the Jobseekers Act 1995,

15

(c)   

section 11, 12 or 13 of the Welfare Reform Act 2007, or

(d)   

section 2A, 2AA or 2D of the Social Security Administration

Act 1992.

Tax credits

6          

In relation to the replacement of working tax credit and child tax credit with

20

universal credit, the provision referred to in paragraph 1(1) includes—

(a)   

provision modifying the application of the Tax Credits Act 2002 (or

of any provision made under it);

(b)   

provision for the purposes of recovery of overpayments of working

tax credit or child tax credit (including in particular provision for

25

treating overpayments of working tax credit or child tax credit as if

they were overpayments of universal credit).

Supplementary

7          

Regulations under paragraph 1(1) may secure the result that any gap in

entitlement to an existing benefit (or what would, but for the provisions of

30

this Part, be a gap in entitlement to an existing benefit) is to be disregarded

for the purposes of provision under such regulations.

Schedule 7

Section 48

 

Jobseeker’s allowance in interim period: consequential amendments

Jobseekers Act 1995 (c. 18)

35

1          

The Jobseekers Act 1995 is amended as follows.

2     (1)  

Section 8 (attendance etc) is amended as follows.

      (2)  

In subsection (1A)(a) (as originally enacted), for “the Secretary of State” there

is substituted “an employment officer”.

      (3)  

In subsection (2), for paragraphs (a) to (c) there is substituted “provide for

40

entitlement to a jobseeker’s allowance to cease at such time as may be

 
 

Welfare Reform Bill
Schedule 7 — Jobseeker’s allowance in interim period: consequential amendments

125

 

determined in accordance with any such regulations if, when a person fails

to comply with such regulations, that person (or, if that person is a member

of a joint-claim couple, either member of the couple) does not make

prescribed contact with an employment officer within a prescribed period of

the failure.”

5

3          

In section 16(3)(b) and 17(4) (in both places) for “good cause” there is

substituted “a good reason”.

4          

In section 17A (employment schemes), in subsection (5)(c) for “jobseeker’s

agreement to which a person is a party” there is substituted “claimant

commitment accepted by the person”.

10

5          

Section 20 (exemptions from section 19) is amended as follows—

(a)   

in the heading, after “19” there is inserted “and 19A”;

(b)   

in subsection (1), for “prevent payment” there is substituted

“authorise reduction”;

(c)   

in subsection (2), for “19” there is substituted “19A” and for “(5)”

15

there is substituted “(2)(c) to (g)”;

(d)   

in subsection (3), for “19(6)(b) or (d)” there is substituted “19(2)(b) or

(d)” and for “just cause” there is substituted “good reason”.

6          

Sections 20C and 20D (uncommenced provision relating to sanctions for

violent conduct etc) are repealed.

20

7          

In section 22 (members of the forces), in subsection (2), for “section 19(6)(b)”

there is substituted “section 19(2)(b)”.

8          

In section 35 (interpretation), in subsection (1), before the definition of

“jobseeking period” there is inserted—

“jobseeker’s direction” has the meaning given by section 19A;”.

25

9          

In section 36 (regulations and orders), after subsection (1) there is inserted—

“(1A)   

Subsection (1) does not apply to an order under section 35(1) in

relation to employment officers.”

10    (1)  

Schedule 1 (supplementary) is amended as follows.

      (2)  

In paragraph 8(b), for “entered into a jobseeker’s agreement” there is

30

substituted “accepted a claimant commitment”.

      (3)  

In paragraph 10, at the end there is inserted—

    “(6)  

References in sub-paragraphs (1) and (2) to an income-based

jobseeker’s allowance include a payment by way of such an

allowance under section 19C.”

35

Social Security Act 1998 (c.  14)

11         

In Schedule 3 to the Social Security Act 1998 (decisions against which an

appeal lies), in paragraph 8 and in the heading to that paragraph, for

“jobseeker’s agreement” there is substituted “claimant commitment”

Social Security Fraud Act 2001 (c. 11)

40

12    (1)  

Section 8 of the Social Security Fraud Act 2001 is amended as follows.

      (2)  

In subsection (2)—

 
 

Welfare Reform Bill
Schedule 7 — Jobseeker’s allowance in interim period: consequential amendments

126

 

(a)   

at the beginning there is inserted “Except in prescribed

circumstances”;

(b)   

in paragraph (b), for sub-paragraph (i) there is substituted—

“(i)   

is a person whose failure sanctionable under

section 19, 19A or 19B of the Jobseekers Act

5

1995 has given rise to a reduction under that

section; or”.

      (3)  

Subsection (5) is repealed.

Welfare Reform Act 2009 (c. 24)

13         

The Welfare Reform Act 2009 is amended as follows.

10

14         

In section 29(1) (victims of domestic violence), in sub-paragraph (3) of

paragraph 8B inserted into Schedule 1 to the Jobseekers Act 1995—

(a)   

for the first “entered into a jobseeker’s agreement” there is

substituted “accepted a claimant commitment”;

(b)   

for “9(10)” there is substituted “9(9)”;

15

(c)   

for “entered into a jobseeker’s agreement which is in force for” there

is substituted “accepted a claimant commitment during”.

15    (1)  

Section 31 (well-being of children) is amended as follows.

      (2)  

In subsection (1)—

(a)   

for “(the jobseeker’s agreement)” there is substituted “(as substituted

20

by section 44 of the Welfare Reform Act 2011 (the claimant

commitment))”;

(b)   

in the inserted subsection (4A), for “preparing a jobseeker’s

agreement for a claimant” there is substituted “considering whether

to invite a claimant to accept a claimant commitment”.

25

16    (1)  

Section 32 (contracting out) is amended as follows.

      (2)  

In subsection (2), in section 20E inserted into the Jobseekers Act 1995—

(a)   

for subsection (2)(a) and (b) there is substituted—

“(a)   

any function under section 8 (attendance etc);

(b)   

any function under section 9 or 10 in relation to a

30

claimant commitment;”;

(b)   

after subsection (2)(d) there is inserted—

“(e)   

functions under section 19 or 19A;”;

(c)   

in subsection (4), “or 17A” is repealed.

      (3)  

In subsection (3), for paragraphs (a) to (d) there is substituted—

35

“(a)   

section 8(1)(a), (1A) and (2);

(b)   

sections 9 and 10 (in all places);

(c)   

section 16(3)(b)(ii);

(d)   

sections 19 and 19A (in all places)”.

 
 

 
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Revised 17 February 2011