Welfare Reform Bill

Session 2010 - 11
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Other Bills before Parliament

Welfare Reform Bill

Welfare Reform Bill
Schedule 9 — Personal independence payment: amendments
127

Schedule 8
Section 69

Social fund discretionary payments: consequential amendments
1
The Social Security Administration Act 1992 is amended as follows.
2
In section 78(4) (recovery of funeral payments out of social fund), after
“Payments” there is inserted “out of the social fund”.
5
3
In section 79 (recovery of Northern Ireland payments), in paragraph (c), for
the words from “under subsection” to the end there is substituted “under
section 71(8)”.
4
In Part 1 of Schedule 4 (persons employed in social security administration),
under the heading “Former Officers”, after the entry for “A social fund
10
officer” there is inserted—

“The social fund Commissioner.

A social fund inspector.

A member of any staff employed in connection with the social
fund.”
15
Schedule 9
Section 88

Personal independence payment: amendments
Transport Act 1982 (c. 49)
1
In section 70 of the Transport Act 1982 (payments in respect of applicants for
exemption from wearing seat belts), in subsection (2), after paragraph (a)
20
there is inserted—
“(ab)
those in receipt of personal independence payment;”.
Inheritance Tax Act 1984 (c. 51)
2
The Inheritance Tax Act 1984 is amended as follows.
3     (1)
Section 74 (pre-1981 trusts for disabled persons) is amended as follows.
25
      (2)
In subsection (4), after paragraph (b) there is inserted—
“(ba)
is in receipt of the daily living component of personal
independence payment at a rate designated by regulations
made by the Secretary of State, or”.
      (3)
After subsection (4) there is inserted—
30
“(5)
The power to make regulations under subsection (4)(ba) is
exercisable by statutory instrument; and a statutory instrument
containing such regulations is subject to annulment in pursuance of
a resolution of either House of Parliament.”
4     (1)
Section 89 (trusts for disabled persons) is amended as follows.
35

Welfare Reform Bill
Schedule 9 — Personal independence payment: amendments
128

      (2)
In subsection (4), after paragraph (b) there is inserted—
“(ba)
in receipt of the daily living component of personal
independence payment at a rate designated by regulations
made by the Secretary of State, or”.
      (3)
In subsection (5)—
5
(a)
after paragraph (a) there is inserted—
“(aa)
would have been in receipt of the daily living
component of personal independence payment at a
rate designated for the purposes of subsection (4)(ba)
had provision made by regulations under section
10
83(1)(a) of the Welfare Reform Act 2011 (no payment
in respect of daily living component for persons for
whom certain services are provided) been ignored,
or”;
(b)
in paragraph (b), for “either of the Acts” there is substituted “the
15
Act”.
      (4)
In subsection (6)—
(a)
after paragraph (a) there is inserted—
“(ab)
that he would, when the property was transferred
into settlement, have been in receipt of the daily living
20
component of personal independence payment at a
rate designated for the purposes of subsection
(4)(ba)—
(i)
had he met the prescribed conditions as to
residence under section 75(3) of the Welfare
25
Reform Act 2011, and
(ii)
had provision made by regulations under
section 83(1)(a) of that Act been ignored, or”;
(b)
in paragraph (b)(i), for “either of the Acts” there is substituted “the
Act”.
30
      (5)
After subsection (6) there is inserted—
“(7)
The power to make regulations under subsection (4)(ba) is
exercisable by statutory instrument; and a statutory instrument
containing such regulations is subject to annulment in pursuance of
a resolution of either House of Parliament.”
35
5
In section 89A (self-settlement by person with condition expected to lead to
disability)—
(a)
in subsection (1)(b), after “section 89(4)(b) above,” there is inserted—
“(iia)
in receipt of the daily living component of
personal independence payment at a rate
40
designated for the purposes of section
89(4)(ba) above,”;
(b)
in subsection (6)(a), for “whichever of the 1992 Acts is applicable”
there is substituted “the Social Security Contributions and Benefits
(Northern Ireland) Act 1992”.
45
Child Support Act 1991 (c. 48)
6
In section 8 of the Child Support Act 1991 (role of courts with respect to
maintenance for children), in subsection (8)(a), at the beginning there is

Welfare Reform Bill
Schedule 9 — Personal independence payment: amendments
129

inserted “an allowance under Part 4 of the Welfare Reform Act 2011
(personal independence payment) or”.
Social Security Contributions and Benefits Act 1992 (c. 4)
7
The Social Security Contributions and Benefits Act 1992 is amended as
follows.
5
8
In section 30B (incapacity benefit: rate), in subsection (4), after paragraph (a)
there is inserted—
“(aa)
is entitled to the daily living component of personal
independence payment at a rate designated by regulations
under this paragraph, or”.
10
9     (1)
Section 64 (entitlement to attendance allowance) is amended as follows.
      (2)
In subsection (1), for “the care component of a disability living allowance”
there is substituted “an allowance within subsection (1A)”.
      (3)
After subsection (1) there is inserted—
“(1A)
The following allowances are within this subsection—
15
(a)
personal independence payment;
(b)
the care component of a disability living allowance.”
10
In section 150 (Christmas bonus for pensioners: interpretation), in
subsection (1), after paragraph (ba) there is inserted—
“(bb)
personal independence payment;”.
20
Social Security Administration Act 1992 (c. 5)
11
The Social Security Administration Act 1992 is amended as follows.
12    (1)
Section 1 (entitlement to benefit dependent on claim) is amended as follows.
      (2)
In subsection (3)—
(a)
before paragraph (a) there is inserted—
25
“(za)
for personal independence payment by virtue of
section 80 of the Welfare Reform Act 2011; or”;
(b)
paragraph (b) and the “or” preceding it is repealed.
      (3)
In subsection (4), after paragraph (ac) there is inserted—
“(ad)
personal independence payment.”
30
13
In section 5(2) (regulations about claims for and payments of benefit), after
paragraph (ac) there is inserted—
“(ad)
personal independence payment;”.
14
In section 71(11) (overpayments), after paragraph (ac) there is inserted—
“(ad)
personal independence payment;”.
35
15
In section 73 (overlapping benefits - general), after subsection (5) there is
inserted—
“(6)
Personal independence payment is to be treated for the purposes of
this section as if it were benefit as defined in section 122 of the
Contributions and Benefits Act.
40

Welfare Reform Bill
Schedule 9 — Personal independence payment: amendments
130

(7)
But subsection (6) does not apply for the purposes of subsection
(1)(b) (provision corresponding to which is made for personal
independence payment by section 83 of the Welfare Reform Act
2011).”
16
In section 121DA (interpretation of Part 6), in subsection (1), after paragraph
5
(hj) (inserted by Schedule 2 to this Act) there is inserted—
“(hk)
Part 4 of that Act;”.
17
In section 122B (supply of other government information for fraud
prevention and verification), in subsection (3)(b), after “Welfare Reform Act
2011” (inserted by Schedule 2 to this Act) there is inserted “, Part 4 of that
10
Act”.
18
In section 122C (supply of information to authorities administering benefit),
in subsection (6)(b), after “Welfare Reform Act 2007” there is inserted “, Part
4 of the Welfare Reform Act 2011”.
19
In section 124 (age, death and marriage), in subsection (1), after paragraph
15
(ad) (inserted by Schedule 2 to this Act), but before the “and” preceding
paragraph (b), there is inserted—
“(ae)
of the provisions of Part 4 of that Act;”.
20
In section 125 (regulations as to notification of deaths), in subsection (1),
after “Welfare Reform Act 2011” (inserted by Schedule 2 to this Act) there is
20
inserted “, Part 4 of that Act”.
21
In section 150 (uprating)—
(a)
in subsection (1), after paragraph (n) (inserted by Schedule 2 to this
Act) there is inserted—
“(o)
specified in regulations under section 76(3) or 77(3) of
25
that Act;”;
(b)
in subsection (3)(b), for “or (g)” there is substituted “, (g) or (o)”.
22
In section 159 (effect of alteration in the component rates of income support),
in subsection (5), in the definition of “benefit income”, after “income
support;” there is inserted—
30
“(aa)
personal independence payment;”.
23
In section 159A (effect of alteration of rates of a jobseeker’s allowance), in
subsection (5), in the definition of “benefit income”, after “Contributions and
Benefits Act;” there is inserted—
“(ab)
personal independence payment;”.
35
24
In section 159B (effect of alterations affecting state pension credit), in
subsection (6), in the definition of “benefit income”, after “Contributions and
Benefits Act” there is inserted “or personal independence payment”.
25
In section 159C (effect of alteration of rates of an employment and support
allowance), in subsection (6), in the definition of “benefit income”, after
40
“Contributions and Benefits Act” there is inserted “or personal
independence payment”.
26
In section 160 (implementation of increases in income support due to
attainment of particular ages), in subsection (3), after “entitlement to” there
is inserted “personal independence payment or to”.
45
27
In section 160A (implementation of increases in income-based jobseeker’s

Welfare Reform Bill
Schedule 9 — Personal independence payment: amendments
131

allowance due to attainment of particular ages), in subsection (3), after
“Contributions and Benefits Act;” there is inserted—
“(aa)
personal independence payment;”.
28
In section 160B (implementation of increases in employment and support
allowance due to attainment of particular ages), in subsection (3), for the
5
words from “a benefit” to the end there is substituted—
“(a)
a benefit under the Contributions and Benefits Act; or
(b)
personal independence payment.”
29
In section 165 (adjustments between National Insurance Fund and
Consolidated Fund), in subsection (1)(a)(iii), after “universal credit”
10
(inserted by Schedule 2 to this Act) there is inserted “, personal
independence payment”.
30
In section 170 (Social Security Advisory Committee), in subsection (5)—
(a)
in the definition of “the relevant enactments”, after paragraph (ak)
(inserted by Schedule 2 to this Act) there is inserted—
15
“(al)
Part 4 of that Act;”;
(b)
in the definition of “the relevant Northern Ireland enactments”, after
paragraph (ak) (inserted by Schedule 2 to this Act) there is inserted—
“(al)
any provisions in Northern Ireland which correspond
to Part 4 of that Act;”.
20
31    (1)
Section 179 (reciprocal agreements) is amended as follows.
      (2)
In subsection (3)(a), after “Welfare Reform Act 2011” (inserted by Schedule
2 to this Act) there is inserted “, Part 4 of that Act”.
      (3)
In subsection (4), after paragraph (ag) (inserted by Schedule 2 to this Act)
there is inserted—
25
“(ah)
to Part 4 of that Act;”.
32
In section 180 (payment of travelling expenses), in paragraphs (a) and (b)(i),
after “Welfare Reform Act 2011” (inserted by Schedule 2 to this Act) there is
inserted “, Part 4 of that Act”.
33
In section 182B (information about postal redirection), in subsection (5)(b),
30
after “Welfare Reform Act 2011” (inserted by Schedule 2 to this Act) there is
inserted “, Part 4 of that Act”.
34
In section 184 (control of pneumoconiosis), in paragraph (c), for “benefit as
defined in section 122 of the Contributions and Benefits Act” there is
substituted “personal independence payment, or benefit as defined in
35
section 122 of the Contributions and Benefits Act,”.
35
In section 187 (inalienability), in subsection (1), after paragraph (ac) there is
inserted—
“(ad)
personal independence payment;”.
36
In section 191 (interpretation), in the definition of “benefit”, for “, state
40
pension credit and an employment and support allowance” there is
substituted “state pension credit, an employment and support allowance
and personal independence payment”.
37
In Schedule 7 (regulations not requiring prior submission to Social Security

Welfare Reform Bill
Schedule 9 — Personal independence payment: amendments
132

Advisory Committee), before paragraph 1 there is inserted—
“Personal independence payment
A1
Regulations under section 76(3) or 77(3) of the Welfare Reform Act
2011.”
Taxation of Chargeable Gains Act 1992 (c. 12)
5
38
The Taxation of Chargeable Gains Act 1992 is amended as follows.
39    (1)
Section 169D (exceptions to sections 169B and 169C) is amended as follows.
      (2)
In subsection (7), after “managing his affairs;” there is inserted—
“(aa)
a person in receipt of the daily living component of personal
independence payment at a rate designated by regulations
10
made by the Secretary of State;”.
      (3)
After subsection (11) there is inserted—
“(12)
The power to make regulations under subsection (7)(aa) is
exercisable by statutory instrument; and a statutory instrument
containing such regulations is subject to annulment in pursuance of
15
a resolution of either House of Parliament.”
40    (1)
In Schedule 1 (application of exempt amount and reporting limits in cases
involving settled property), paragraph 1 is amended as follows.
      (2)
In sub-paragraph (1), for the words from “disability living allowance” to
“middle rate” there is substituted “qualifying benefit”.
20
      (3)
After sub-paragraph (1) there is inserted—
   “(1A)
For the purposes of sub-paragraph (1), each of the following is a
qualifying benefit—
(a)
personal independence payment by virtue of entitlement
to the daily living component at a rate designated by
25
regulations made by the Secretary of State;
(b)
a disability living allowance by virtue of entitlement to the
care component at the highest or middle rate.”
      (4)
After sub-paragraph (6) there is inserted—
   “(6A)
The power to make regulations under sub-paragraph (1A)(a) is
30
exercisable by statutory instrument; and a statutory instrument
containing such regulations is subject to annulment in pursuance
of a resolution of either House of Parliament.”
Finance Act 1994 (c. 9)
41    (1)
In Schedule 7A to the Finance Act 1994 (insurance premium tax: contracts
35
that are not taxable), paragraph 3 is amended as follows.
      (2)
In sub-paragraph (2)(a), for the words from “disability” to the end there is
substituted “qualifying mobility benefit”.
      (3)
In sub-paragraph (3), for “the disability living allowance or mobility
supplement” there is substituted “the qualifying mobility benefit”.
40

Welfare Reform Bill
Schedule 9 — Personal independence payment: amendments
133

      (4)
After sub-paragraph (3) there is inserted—
   “(3A)
For the purposes of this paragraph each of the following is a
qualifying mobility benefit—
(a)
the mobility component of personal independence
payment;
5
(b)
the mobility component of a disability living allowance;
(c)
a mobility supplement.”
Vehicle Excise and Registration Act 1994 (c. 22)
42    (1)
In Schedule 2 to the Vehicle Excise and Registration Act 1994 (exempt
vehicles), paragraph 19 is amended as follows.
10
      (2)
In sub-paragraph (2)(a), for the words from “a disability living allowance” to
“higher rate” there is substituted “the mobility component of a qualifying
benefit at the relevant rate”.
      (3)
After sub-paragraph (2) there is inserted—
  “(2ZA)
For the purposes of this paragraph—
15
(a)
“qualifying benefit” means personal independence
payment or a disability living allowance;
(b)
“relevant rate” means—
(i)
in relation to the mobility component of personal
independence payment, a rate designated by
20
regulations made by the Secretary of State;
(ii)
in relation to the mobility component of a disability
living allowance, the higher rate.”
      (4)
In sub-paragraph (2A)—
(a)
for the words from “a disability living allowance” to “the higher rate”
25
there is substituted “the mobility component of a qualifying benefit
at the relevant rate”;
(b)
in paragraph (a), for the words from “the allowance” to “at that rate”
there is substituted “the qualifying benefit or of receiving the
mobility component of that benefit at the relevant rate”;
30
(c)
in paragraph (c), for “the allowance at the higher rate” there is
substituted “the qualifying benefit at the relevant rate”.
      (5)
In sub-paragraph (3), for the words from “a disability living allowance” to
“the higher rate” there is substituted “the mobility component of a
qualifying benefit at the relevant rate”.
35
      (6)
In sub-paragraph (4)(a), after “in receipt of” there is inserted “personal
independence payment or”.
Value Added Tax Act 1994 (c. 23)
43
The Value Added Tax Act 1994 is amended as follows.
44
In Part 2 of Schedule 7A (charge to VAT at reduced rate), in note 6 to Group
40
3, in sub-paragraph (2) after paragraph (a) there is inserted—
“(aa)
personal independence payment;”.
45
In Part 2 of Schedule 8 (zero-rating), in Group 12—