Welfare Reform Bill

Session 2010 - 11
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Other Bills before Parliament

Welfare Reform Bill

Welfare Reform Bill
Part 4 — Personal independence payment
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General
87
Abolition of disability living allowance
Sections 71 to 76 of the Social Security Contributions and Benefits Act 1992
(disability living allowance) are repealed.
88
Amendments
5
Schedule 9 contains amendments relating to this Part.
89
Power to make supplementary and consequential provision
(1)
The Secretary of State may by regulations make such consequential,
supplementary or incidental provision in relation to any provision of this Part
as the Secretary of State considers appropriate.
10
(2)
The Scottish Ministers may by regulations make such consequential,
supplementary or incidental provision in relation to any provision of this Part
as they consider appropriate, subject to subsection (3).
(3)
The Scottish Ministers may only make provision under subsection (2) which
would be within the legislative competence of the Scottish Parliament if it were
15
contained in an Act of that Parliament.
(4)
Regulations under this section may—
(a)
amend, repeal or revoke any primary or secondary legislation passed
or made before the day on which this Act is passed, or
(b)
amend or repeal any provision of an Act passed on or after that day but
20
in the same session of Parliament.
(5)
In this section—
(a)
“primary legislation” means an Act or Act of the Scottish Parliament;
(b)
“secondary legislation” means any instrument made under primary
legislation.
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90
Transitional
(1)
Regulations may make such provision as the Secretary of State considers
necessary or expedient in connection with the coming into force of any
provision of this Part.
(2)
Schedule 10 (transitional provision for introduction of personal independence
30
payment) has effect.
91
Regulations
(1)
Regulations under this Part are to be made by the Secretary of State, unless
otherwise provided.
(2)
A power to make regulations under this Part may be exercised—
35
(a)
so as to make different provision for different cases or purposes;
(b)
in relation to all or only some of the cases or purposes for which it may
be exercised.
(3)
Such a power includes—

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(a)
power to make incidental, supplementary, consequential or
transitional provision or savings;
(b)
power to provide for a person to exercise a discretion in dealing with
any matter.
(4)
The power under subsection (2)(a) includes, in particular, power to make
5
different provision for persons of different ages.
(5)
Regulations under this Part are to be made by statutory instrument.
(6)
A statutory instrument containing (whether alone or with other provision)
either or both of the following—
(a)
the first regulations under section 78;
10
(b)
the first regulations under that section containing provision about
assessment of persons under the age of 16,

may not be made unless a draft of the instrument has been laid before, and
approved by a resolution of, each House of Parliament.
(7)
A statutory instrument containing regulations made by the Scottish Ministers
15
under section 89—
(a)
if the regulations contain provision amending or repealing primary
legislation (within the meaning of that section), may not be made unless
a draft of the instrument has been laid before, and approved by
resolution of, the Scottish Parliament, and
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(b)
in any other case, is subject to annulment in pursuance of a resolution
of the Scottish Parliament.
(8)
Any other statutory instrument containing regulations under this Part is
subject to annulment in pursuance of a resolution of either House of
Parliament.
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92
Interpretation of Part 4
In this Part—
“daily living activities” has the meaning given by section 76(4);
“daily living component” means the daily living component of personal
independence payment;
30
“mobility activities” has the meaning given by section 77(4);
“mobility component” means the mobility component of personal
independence payment;
“prescribed” means prescribed by regulations.
Part 5
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Social security: general
Benefit cap
93
Benefit cap
(1)
Regulations may provide for a benefit cap to be applied to the welfare benefits
to which a single person or couple is entitled.
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(2)
For the purposes of this section, applying a benefit cap to welfare benefits
means securing that, where a single person’s or couple’s total entitlement to
welfare benefits in respect of the reference period exceeds the relevant amount,
their entitlement to welfare benefits in respect of any period of the same
duration as the reference period is reduced by an amount up to or equalling the
5
excess.
(3)
In subsection (2) the “reference period” means a period of a prescribed
duration.
(4)
Regulations under this section may in particular—
(a)
make provision as to the manner in which total entitlement to welfare
10
benefits for any period, or the amount of any reduction, is to be
determined;
(b)
make provision as to the welfare benefit or benefits from which a
reduction is to be made;
(c)
provide for exceptions to the application of the benefit cap;
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(d)
make provision as to the intervals at which the benefit cap is to be
applied;
(e)
make provision as to the relationship between application of the benefit
cap and any other reduction in respect of a welfare benefit;
(f)
provide that where in consequence of a change in the relevant amount,
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entitlement to a welfare benefit increases or decreases, that increase or
decrease has effect without any further decision of the Secretary of
State;
(g)
make supplementary and consequential provision.
(5)
In this section the “relevant amount” is an amount specified in regulations.
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(6)
The amount specified under subsection (5) is to be determined by reference to
estimated average earnings.
(7)
In this section “estimated average earnings” means the amount which, in the
opinion of the Secretary of State, represents at any time the average weekly
earnings of a working household in Great Britain after deductions in respect of
30
tax and national insurance contributions.
(8)
The Secretary of State may estimate such earnings in such manner as the
Secretary of State thinks fit.
(9)
Regulations under this section may not provide for any reduction to be made
from a welfare benefit—
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(a)
provision for which is within the legislative competence of the Scottish
Parliament;
(b)
provision for which is within the legislative competence of the National
Assembly for Wales;
(c)
provision for which is made by the Welsh Ministers, the First Minister
40
for Wales or the Counsel General to the Welsh Assembly Government.
(10)
In this section—
“couple” means two persons of a prescribed description;
“prescribed” means prescribed in regulations;
“regulations” means regulations made by the Secretary of State;
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“single person” means a person who is not a member of a couple;

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“welfare benefit” means any prescribed benefit, allowance, payment or
credit.
(11)
Regulations under subsection (10) may not prescribe as welfare benefits—
(a)
state pension credit under the State Pension Credit Act 2002, or
(b)
retirement pensions under Part 2 or 3 of the Social Security
5
Contributions and Benefits Act 1992.
94
Benefit cap: supplementary
(1)
Regulations under section 93 may make different provision for different
purposes or cases.
(2)
Regulations under section 93 must be made by statutory instrument.
10
(3)
A statutory instrument containing regulations under section 93 is subject to
annulment in pursuance of a resolution of either House of Parliament.
(4)
In section 150 of the Social Security Administration Act 1992 (annual up-rating
of benefits) after subsection (7) there is inserted—
“(7A)
The Secretary of State—
15
(a)
shall in each tax year review the amount specified under
subsection (5) of section 93 of the Welfare Reform Act 2011
(benefit cap) to determine whether its relationship with
estimated average earnings (within the meaning of that section)
has changed, and
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(b)
after that review, may, if the Secretary of State considers it
appropriate, include in the draft of an up-rating order provision
increasing or decreasing that amount.”
(5)
In Schedule 2 to the Social Security Act 1998 (decisions against which no appeal
lies) after paragraph 8 there is inserted—
25
“Reduction on application of benefit cap
8A
A decision to apply the benefit cap in accordance with regulations
under section 93 of the Welfare Reform Act 2011.”
Claims and awards
95
Claims and awards
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(1)
Section 5(1) of the Social Security Administration Act 1992 (regulations about
claims and payments) is amended as follows.
(2)
In paragraph (d) (conditional awards), for the words from “the condition” to
the end there is substituted—
“(i)
the condition that the requirements for entitlement are
35
satisfied at a prescribed time after the making of the
award, or
(ii)
other prescribed conditions;”.
(3)
In paragraph (e), for “those requirements” there is substituted “the conditions
referred to in paragraph (d)”.
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(4)
In paragraph (g) (claims made on behalf of another), after “applies” there is
inserted “(including in particular, in the case of a benefit to be claimed by
persons jointly, enabling one person to claim for such persons jointly)”.
(5)
In paragraph (j) (notice of change of circumstances etc), at the end there is
inserted “or of any other change of circumstance of a prescribed description”.
5
96
Powers to require information relating to claims and awards
(1)
Section 5 of the Social Security Administration Act 1992 (regulations about
claims and payments) is amended as follows.
(2)
In subsection (1), paragraphs (h) and (hh) (powers to make provision requiring
the furnishing of information or evidence) are repealed.
10
(3)
After that subsection there is inserted—
“(1A)
Regulations may make provision for requiring a person of a prescribed
description to supply any information or evidence which is, or could
be, relevant to—
(a)
a claim or award relating to a benefit to which this section
15
applies, or
(b)
potential claims or awards relating to such a benefit.”
(4)
Subsection (3A) is repealed.
(5)
In section 22 of the Social Security Act 1998 (suspension for failure to furnish
information etc), in subsection (3), for “subsection (1)(hh) of section 5” there is
20
substituted “section 5(1A)”.
Payments
97
Payments to joint claimants
In section 5 of the Social Security Administration Act 1992 (regulations about
claims and payments), after subsection (3A) there is inserted—
25
“(3B)
The power in subsection (1)(i) above to make provision for the person
to whom a benefit is to be paid includes, in the case of a benefit awarded
to persons jointly, power to make provision for the Secretary of State to
determine to which of them all or any part of a payment should be
made, and in particular for the Secretary of State—
30
(a)
to determine that payment should be made to whichever of
those persons they themselves nominate, or
(b)
to determine that payment should be made to one of them
irrespective of any nomination by them.”
98
Payments on account
35
(1)
In section 5(1) of the Social Security Administration Act 1992 (regulations
about claims and payments), for paragraph (r) there is substituted—
“(r)
for the making of a payment on account of such a benefit—
(i)
in cases where it is impracticable for a claim to be made
or determined immediately, or for an award to be
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determined or paid in full immediately,

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(ii)
in cases of need, or
(iii)
in cases where the Secretary of State considers in
accordance with prescribed criteria that the payment
can reasonably be expected to be recovered;”.
(2)
Section 22 of the Welfare Reform Act 2009 (payments on account), which has
5
not ben brought into force, is repealed.
Appeals
99
Power to require consideration of revision before appeal
(1)
The Social Security Act 1998 is amended as follows.
(2)
In section 12 (appeals to First-tier Tribunal), in subsection (2)—
10
(a)
the words from “in relation to” to the end become paragraph (a), and
(b)
after that paragraph there is inserted “, or
(b)
where regulations under subsection (3A) so provide.”
(3)
After subsection (3) of that section there is inserted—
“(3A)
Regulations may provide that, in such cases or circumstances as may be
15
prescribed, there is a right of appeal under subsection (2) in relation to
a decision only if the Secretary of State has considered whether to revise
the decision under section 9.
(3B)
The regulations may in particular provide that that condition is met
only where—
20
(a)
the consideration by the Secretary of State was on an
application,
(b)
the Secretary of State considered issues of a specified
description, or
(c)
the consideration by the Secretary of State satisfied any other
25
condition specified in the regulations.
(3C)
The references in subsections (3A) and (3B) to regulations and to the
Secretary of State are subject to any enactment under or by virtue of
which the functions under this Chapter are transferred to or otherwise
made exercisable by a person other than the Secretary of State.”
30
(4)
In subsection (7) of that section—
(a)
the words from “make provision” to the end become paragraph (a);
(b)
after that paragraph there is inserted—
“(b)
provide that, where in accordance with regulations
under subsection (3A) there is no right of appeal against
35
a decision, any purported appeal may be treated as an
application for revision under section 9.”
(5)
In section 80(1)(a) (affirmative procedure for certain regulations) after “12(2)”
there is inserted “or (3A)”.
(6)
Schedule 11 contains similar amendments to other Acts.
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(7)
Subsection (8) applies where regulations under a provision mentioned in
subsection (9) are made so as to have effect in relation to a limited area (by
virtue of provision made under section 136(4)(b)).

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(8)
Any power to make, in connection with those regulations, provision as
respects decisions and appeals may be exercised so that that provision applies
only in relation to the area mentioned in subsection (7).
(9)
The provisions referred to in subsection (7) are—
(a)
section 12(3A) of the Social Security Act 1998;
5
(b)
section 4(1B) of the Vaccine Damage Payments Act 1979;
(c)
subsection (2A) of section 20 of the Child Support Act 1991 (as
substituted by section 10 of the Child Support, Pensions and Social
Security Act 2000);
(d)
subsection (3A) of section 20 of the Child Support Act 1991 (as it has
10
effect apart from section 10 of the Child Support, Pensions and Social
Security Act 2000);
(e)
section 11(2A) of the Social Security (Recovery of Benefits) Act 1997;
(f)
paragraph 6(5A) of Schedule 7 to the Child Support, Pensions and
Social Security Act 2000;
15
(g)
section 50(1A) of the Child Maintenance and Other Payments Act 2008.
100
Supersession of decisions of former appellate bodies
(1)
Schedule 12 contains amendments reinstating powers to make decisions
superseding decisions made by appellate bodies before their functions were
transferred to the First-tier Tribunal and Upper Tribunal.
20
(2)
The following have effect as if they had come into force on 3 November 2008—
(a)
the amendments made by Schedule 12, and
(b)
if regulations made in the exercise of the powers conferred by virtue of
those amendments so provide, those regulations.
Electronic communications
25
101
Electronic communications
(1)
In section 189 of the Social Security Administration Act 1992 (regulations and
orders - general), after subsection (5) there is inserted—
“(5A)
The provision referred to in subsection (5) includes, in a case where
regulations under this Act require or authorise the use of electronic
30
communications, provision referred to in section 8(4) and (5) and 9(5)
of the Electronic Communications Act 2000.
(5B)
For the purposes of subsection (5A), references in section 8(4) and (5)
and 9(5) of the Electronic Communications Act 2000 to an order under
section 8 of that Act are to be read as references to regulations under
35
this Act; and references to anything authorised by such an order are to
be read as references to anything required or authorised by such
regulations.”
(2)
In section 79 of the Social Security Act 1998 (regulations and orders), after
subsection (6) there is inserted—
40
“(6A)
The provision referred to in subsection (6) includes, in a case where
regulations under this Act require or authorise the use of electronic
communications, provision referred to in section 8(4) and (5) and 9(5)
of the Electronic Communications Act 2000.