Joint Committee On Human Rights Seventeenth Report


3 Age Related Payments Act

Date introduced to the House of Commons

Date introduced to the House of Lords

Date given Royal Assent

Previous Reports

22 April 2004

9 June 2004

8 July 2004

None

Background

3.1 The Age Related Payments Bill was a Government Bill, introduced in the House of Commons on 22 April 2004. It had its second reading on 12 May 2004. It passed all stages in the Lords on 1 July and received Royal Assent on 8 July 2004. The Secretary of State for Work and Pensions made a statement under s. 19(1)(a) of the Human Rights Act 1998 that in his view the provisions of the Bill were compatible with Convention rights. Explanatory Notes to the Bill were published and they deal with the Government's view as to the effect of the Bill on Convention rights at paras 22-26. [9]

3.2 The Act provides for the making of a one-off lump sum payment of £100 to households with a person who is aged 70 or over on the relevant date and who is ordinarily resident in Great Britain on that date.[10] Certain categories of people who would otherwise qualify for the payment are expressly disqualified: those receiving free in-patient treatment continuously for 52 weeks before the relevant date, those in custody pursuant to a court order, and those subject to immigration control.[11]

3.3 The Act provides for age-related payments to be made without a claim being required where the Secretary of State has sufficient information to determine an individual's entitlement.[12] It also provides for a person who has not received a payment by a specified date to claim a payment.[13] Such a person is required to provide the Secretary of State with certain personal information, including their name, address, date of birth, national insurance number, and a declaration that he or she was ordinarily resident in Great Britain on the relevant date.[14] The Act provides for a right of appeal against the Secretary of State's determination of a person's entitlement to an age-related payment.[15]

3.4 Age-related payments are not to be regarded as income or capital for social security or tax credit purposes.[16]

3.5 The Act also gives the Secretary of State power to make regulations providing for age-related payments to be made to people aged 60 or over.[17] This includes the power to make such payments to any specified class within that group and in specified circumstances.[18]

3.6 The purpose of the measure is in recognition of the impact of recent council tax increases on the fixed incomes of older pensioners.

The human rights implications of the Act

The human rights which are engaged

3.7 The Act engages the right to a fair hearing under Article 6(1) ECHR, the right to respect for private and family life under Article 8, the right not to be discriminated against in the enjoyment of Convention rights under Article 14, and the right to property/peaceful enjoyment of possessions under Article 1 of Protocol No. 1.

3.8 The Act also engages Articles 2(1), 2(2) and 9 ICESCR. Under Article 9 "the States Parties recognise the right of everyone to social security, including social assistance." Under Article 2(1) states undertake to take steps, to the maximum of its available resources, with a view to achieving progressively the full realisation of the rights recognised in the Covenant by all appropriate means, including particularly by the adoption of legislative measures. Article 2(2) contains the guarantee that the rights in the Covenant will be exercised without discrimination.

The human rights issues which arise in relation to the Act

3.9 The requirement that certain personal information be required to be submitted with a claim for an age-related payment is on its face compatible with the right to respect for private and family life under Article 8 ECHR: it is proportionate to the legitimate aim of ascertaining eligibility for the benefit in question.

3.10 The opportunities for an individual to challenge a decision that they are not entitled to an age-related payment appear to satisfy the right to a fair hearing guaranteed by Article 6 ECHR.

3.11 The main human rights issue raised by the Bill is whether restricting entitlement to the payment to those over 70 has an objective and reasonable justification or is unlawful discrimination on grounds of age in breach of Article 14 ECHR in conjunction with Article 1 of Protocol No. 1.

Justification for age discrimination

3.12 The Government stated in the Explanatory Notes to the Bill that restricting entitlement to those over 70 is "justified on the grounds that members of this age group are less likely to be in work, have less money and fixed incomes". The Minister at Second Reading said:

it is particularly important to target pensioners over 70, as most people in that age group have long since stopped working and are on fixed incomes, so are disproportionately affected by council tax increases, which often take up a larger portion of their income compared with younger households. The evidence supports that conclusion, and our own experience as Members of Parliament is that the very elderly tend to be more financially disadvantaged than people in their 60s.[19]

3.13 Any differential treatment in relation to the enjoyment of a Convention right on grounds of age must be shown to be justified by reference to the purpose of the measure, the purpose of the differentiation, the impact on different classes of people, and the proportionality of that interference.

3.14 Given the stated purpose of the measure, we wrote to the Minister asking what was the rational connection between a lump-sum payment and the stated object, given that it bears no relation to different levels of council tax, or different levels of increase in different parts of the country, nor any relation to individual pensioners' means. The Minister responded on 21 July. Since the Bill has now received the Royal Assent we make no further comment, but place this correspondence on the public record.[20]


9   Bill 92-EN. Back

10   Clauses 1-3. To qualify, an individual must be ordinarily resident in Great Britain on at least one day in the relevant week and have reached the age of 70 on or before the last day of that week (clause 1(1)(a)). The relevant week is 20-26 September 2004 (clause 1(2)). Clauses 2 and 3 contain detailed provision defining when a qualifying individual is entitled to £100 and when they are entitled to a payment of £50 (e.g. because he or she is living with another qualifying individual). Back

11   Clause 4. Back

12   Clause 5(1). Back

13   Clause 5(2). Back

14   Clauses 5(3)(c) and (d). Back

15   Clause 5(5). Back

16   Clause 6. Back

17   Clause 7(1). Back

18   Clause 7(2). Back

19   HC Deb, 12 May 2004 col. 363. Back

2 20  0 See Appendix 3. Back


 
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