Welfare Reform Bill

House of Lords

Session 2006 - 07
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Other Bills before Parliament

Welfare Reform Bill

Welfare Reform Bill
Schedule 3 — Consequential amendments relating to Part 1
69

Act, in accordance with the provisions of Part 1 of the Welfare
Reform Act 2007 (employment and support allowance).
      (2)
References in Part 1 of the Welfare Reform Act 2007 to the
purposes of that Part shall be construed, where the provisions of
that Part have effect for the purposes of this Act, as references to
5
the purposes of this Act.”
Pensions Act 1995 (c. 26)
13
In Schedule 4 to the Pensions Act 1995 (equalisation of pensionable ages for
men and women), in paragraph 1 (enactments for the purposes of which the
rules for determining pensionable age apply) for “and the State Pension
10
Credit Act 2002” substitute “, the State Pension Credit Act 2002 and Part 1 of
the Welfare Reform Act 2007”.
Children (Scotland) Act 1995 (c. 36)
14
In section 22 of the Children (Scotland) Act 1995 (promotion of welfare of
children in need), in subsection (4) (under which persons in receipt of certain
15
benefits cannot be required to repay financial assistance), at the end insert “;
or
(c)
an income-related allowance under Part 1 of the Welfare
Reform Act 2007 (employment and support allowance).”
Employment Tribunals Act 1996 (c. 17)
20
15    (1)
The Employment Tribunals Act 1996 is amended as follows.
      (2)
In section 16 (power to provide for recoupment of benefits)—
(a)
in subsections (3)(a) and (c) and (5)(cc) and (e), for “or income
support” substitute “, income support or income-related
employment and support allowance”;
25
(b)
in subsection (3)(b), for “either benefit” substitute “jobseeker’s
allowance, income support or income-related employment and
support allowance”;
(c)
in subsection (4), for paragraph (b) substitute—
“(b)
so as to apply to all or any of the benefits mentioned
30
in subsection (3).”
      (3)
In section 17 (recoupment: further provisions), in subsection (1), for “or
income support”, in both places, substitute “, income support or income-
related employment and support allowance”.
      (4)
In that section, at the end insert—
35
“(5)
In this section and section 16 “income-related employment and
support allowance” means an income-related allowance under Part
1 of the Welfare Reform Act 2007 (employment and support
allowance).”
Education Act 1996 (c. 56)
40
16    (1)
The Education Act 1996 is amended as follows.
      (2)
In section 457 (charges and remissions policies), in subsection (4)(b) (cases

Welfare Reform Bill
Schedule 3 — Consequential amendments relating to Part 1
70

where receipt of benefit by pupil’s parent to give rise to remission), after
sub-paragraph (ii) insert—
“(iia)
in receipt of an income-related employment and
support allowance,”.
      (3)
In section 512ZB (provision of free school lunches and milk), in subsection
5
(4) (eligibility for free lunches), in paragraphs (a) and (b), after sub-
paragraph (ii) insert—
“(iia)
in receipt of an income-related employment and
support allowance,”.
      (4)
In section 579 (interpretation), in subsection (1), after the definition of
10
“higher education” insert—
““income-related employment and support allowance” means
an income-related allowance under Part 1 of the Welfare
Reform Act 2007 (employment and support allowance);”.
Social Security Act 1998 (c. 14)
15
17    (1)
The Social Security Act 1998 is amended as follows.
      (2)
In section 2 (use of computers), in subsection (2) (meaning of “relevant
enactment”), after paragraph (i) insert “; or
“(j)
Part 1 of the Welfare Reform Act 2007.”
      (3)
In section 8 (which provides for any decision on a claim for a relevant
20
benefit, or under or by virtue of a relevant enactment, to be made by the
Secretary of State)—
(a)
in subsection (3) (definition of “relevant benefit”), after paragraph (b)
insert—
“(ba)
an employment and support allowance;”;
25
(b)
in subsection (4) (definition of “relevant enactment”), for “or the State
Pension Credit Act 2002” substitute “, the State Pension Credit Act
2002 or Part 1 of the Welfare Reform Act 2007”.
      (4)
In section 11 (regulations with respect to decisions), in subsection (3), in the
definition of “the current legislation”, for “and the State Pension Credit Act
30
2002” substitute “, the State Pension Credit Act 2002 and Part 1 of the Welfare
Reform Act 2007”.
      (5)
In section 27 (restrictions on entitlement to benefit in certain cases of error),
in subsection (7), in the definition of “benefit”—
(a)
after paragraph (dd) insert—
35
“(de)
an employment and support allowance;”;
(b)
in paragraph (e), for “to (dd)” substitute “to (de)”.
      (6)
In section 28 (correction of errors and setting aside of decisions), in
subsection (3) (definition of “relevant enactment”), at the end insert “; or
(g)
Part 1 of the Welfare Reform Act 2007.”
40
      (7)
In section 31 (incapacity for work), after subsection (1) insert—
“(1A)
Regulations may provide that a determination that a person is
disqualified for any period in accordance with regulations under
section 17(1) to (3) of the Welfare Reform Act 2007 shall have effect
for such purposes as may be prescribed as a determination that he is
45

Welfare Reform Bill
Schedule 3 — Consequential amendments relating to Part 1
71

to be treated as not having limited capability for work for that period,
and vice versa.”
      (8)
In Schedule 2 (decisions against which no appeal lies), in paragraph 6(b)
(alteration of rates of benefit), at the end insert “, or
(iv)
section 159C(1)(b) of that Act (employment and
5
support allowance).”
      (9)
In Schedule 3 (decisions against which an appeal lies), in paragraph 3
(payability of benefit), at the end insert “; or
(g)
section 17 of the Welfare Reform Act 2007.”
Welfare Reform and Pensions Act 1999 (c. 30)
10
18
In section 72 of the Welfare Reform and Pensions Act 1999 (power to make
regulations about the use and supply of social security information), in
subsection (3) (provisions in connection with which the power is
exercisable), at the end insert “, or
(d)
Part 1 of the Welfare Reform Act 2007.”
15
Immigration and Asylum Act 1999 (c. 33)
19
In section 115 of the Immigration and Asylum Act 1999 (exclusion from
benefits), in subsection (1) (benefits to which entitlement excluded), after
“State Pension Credit Act 2002” insert “or to income-related allowance
under Part 1 of the Welfare Reform Act 2007 (employment and support
20
allowance)”.
Child Support, Pensions and Social Security Act 2000 (c. 19)
20    (1)
The Child Support, Pensions and Social Security Act 2000 is amended as
follows.
      (2)
In section 62 (loss of benefit for breach of community order), after subsection
25
(4) insert—
“(4A)
The Secretary of State may by regulations provide that, where the
relevant benefit is an employment and support allowance, any
income-related allowance (within the meaning of Part 1 of the
Welfare Reform Act 2007) shall be payable, during the whole or part
30
of the prescribed period, as if one or more of the following applied—
(a)
the rate of the allowance were such reduced rate as may be
prescribed;
(b)
the allowance were payable only if there is compliance by the
offender with such obligations with respect to the provision
35
of information as may be imposed by the regulations;
(c)
the allowance were payable only if the circumstances are
otherwise such as may be prescribed.”
      (3)
In that section, in subsection (8), in the definition of “relevant benefit”, after
paragraph (b) insert—
40
“(ba)
an employment and support allowance;”.
      (4)
In section 65 (loss of benefit regulations), in subsection (4) (regulations
subject to affirmative resolution procedure), in paragraph (c), after “section
62(4)” insert “or (4A)”.

Welfare Reform Bill
Schedule 3 — Consequential amendments relating to Part 1
72

Local Government Act 2000 (c. 22)
21
In section 94 of the Local Government Act 2000 (disclosure of information),
in subsection (1) (benefit information which may be disclosed), for “or state
pension credit” substitute “, state pension credit or an income-related
employment and support allowance”.
5
Adults with Incapacity (Scotland) Act 2000 (asp 4)
22    (1)
The Adults with Incapacity (Scotland) Act 2000 is amended as follows.
      (2)
In section 39(1)(a) (which excepts from matters which may be managed
those relating to benefit under the Contributions and Benefits Act), at the
end insert “or Part 1 of the Welfare Reform Act 2007”.
10
      (3)
In section 41(a) (duties of managers in relation to matters which may be
managed), at the end insert “or Part 1 of the Welfare Reform Act 2007”.
Social Security Fraud Act 2001 (c. 11)
23    (1)
The Social Security Fraud Act 2001 is amended as follows.
      (2)
In section 7 (loss of benefit for commission of benefit offences), after
15
subsection (4A) insert—
“(4B)
The Secretary of State may by regulations provide that, where the
sanctionable benefit is employment and support allowance, any
income-related allowance shall be payable, during the whole or a
part of any period comprised in the disqualification period, as if one
20
or more of the following applied—
(a)
the rate of the allowance were such reduced rate as may be
prescribed;
(b)
the allowance were payable only if there is compliance by the
offender with such obligations with respect to the provision
25
of information as may be imposed by the regulations;
(c)
the allowance were payable only if the circumstances are
otherwise such as may be prescribed.”
      (3)
In that section, in subsection (8) (interpretation), in the definition of
“disqualifying benefit”, after paragraph (aa) insert—
30
“(ab)
any benefit under Part 1 of the Welfare Reform Act
2007 (employment and support allowance) or under
any provision having effect in Northern Ireland
corresponding to that Part;”.
      (4)
In section 9 (effect of offences on benefits of members of offender’s family),
35
in subsection (1) (benefits to which section applies), after paragraph (bb)
insert—
“(bc)
employment and support allowance;”.
      (5)
In that section, after subsection (4A) insert—
“(4B)
In relation to cases in which the benefit is employment and support
40
allowance, the provision that may be made by virtue of subsection
(2) is provision that, in the case of the offender’s family member, any
income-related allowance shall be payable, during the whole or a

Welfare Reform Bill
Schedule 3 — Consequential amendments relating to Part 1
73

part of any period comprised in the relevant period, as if one or more
of the following applied—
(a)
the rate of the allowance were such reduced rate as may be
prescribed;
(b)
the allowance were payable only if there is compliance by the
5
offender or the offender’s family member, or both of them,
with such obligations with respect to the provision of
information as may be imposed by the regulations;
(c)
the allowance were payable only if circumstances are
otherwise such as may be prescribed.”
10
      (6)
In section 10 (power to supplement and mitigate loss of benefit provisions),
in subsection (3) (definition of “social security benefit”), after paragraph (bb)
insert—
“(bc)
any benefit under Part 1 of the Welfare Reform Act
2007 (employment and support allowance) or under
15
any provision having effect in Northern Ireland
corresponding to that Part;”.
      (7)
In section 11 (loss of benefit regulations), in subsection (3) (regulations
subject to affirmative resolution procedure), in paragraph (c), after “(4A)”, in
both places, insert “, (4B)”.
20
      (8)
In section 13 (interpretation of sections 7 to 12), after the definitions by
reference to the Jobseekers Act 1995 insert—
““income-related allowance” has the same meaning as in Part 1
of the Welfare Reform Act 2007 (employment and support
allowance);”.
25
Income Tax (Earnings and Pensions) Act 2003 (c. 1)
24    (1)
The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.
      (2)
In section 658(4) (amount charged to tax to be calculated in accordance with
section 661), after “carer’s allowance,” insert “contributory employment and
support allowance,”.
30
      (3)
In the table of taxable benefits in section 660 (“Table A”), after the entry
relating to “Carer’s allowance” insert—

“Contributory
WRA 2007
Section 1(2)(a)

employment and

support allowance

35

Any provision made for Northern

Ireland which corresponds to

section 1(2)(a) of WRA 2007”

      (4)
In section 661(1) (social security income taxable on an accruals basis), after
“carer’s allowance,” insert—
40
“contributory employment and support allowance,”.
      (5)
In the table of benefits wholly exempt from tax in section 677 (“Table B”),
after the entry relating to “Housing benefit” insert—

Welfare Reform Bill
Schedule 4 — Transition relating to Part 1
74

“Income-related
WRA 2007
Section 1(2)(b)

employment and

support allowance

Any provision made for Northern

Ireland which corresponds to

5

section 1(2)(b) of WRA 2007”

      (6)
In Part 1 of Schedule 1 (abbre viations of Acts), at the end insert—

“WRA 2007
The Welfare Reform Act

2007”

Schedule 4
10
Section 28

Transition relating to Part 1
General power to provide for transition relating to Part 1
1     (1)
Regulations may make such provision as the Secretary of State considers
necessary or expedient—
(a)
in connection with the coming into force of any provision of, or
15
repeal relating to, this Part, or
(b)
otherwise for the purposes of, or in connection with, the transition to
employment and support allowance.
      (2)
The following provisions of this Schedule are not to be taken as prejudicing
the generality of sub-paragraph (1).
20
Pre-commencement claims
2
Regulations may—
(a)
make provision for a claim for an existing benefit which is made
before the appointed day to be treated wholly or partly as a claim for
an employment and support allowance;
25
(b)
make provision for the purpose of enabling claims for an
employment and support allowance to be made before the
appointed day for a period beginning on or after that day.
Post-commencement claims
3
Regulations may—
30
(a)
make provision excluding the making of a claim for an existing
benefit on or after the appointed day;
(b)
make provision for a claim which is made on or after the appointed
day in circumstances where the making of a claim is excluded by
virtue of regulations under sub-paragraph (a) to be treated as a claim
35
for an employment and support allowance;

Welfare Reform Bill
Schedule 4 — Transition relating to Part 1
75

(c)
make provision for a claim for an employment and support
allowance to be treated wholly or partly as a claim for an existing
benefit;
(d)
make provision excluding the making of a claim for an employment
and support allowance by a person who is entitled to an existing
5
benefit.
Award of employment and support allowance for pre-commencement period
4
Regulations may—
(a)
make provision for an employment and support allowance of such a
kind as the regulations may provide to be awarded in prescribed
10
circumstances for a period before the appointed day;
(b)
make provision with respect to conditions of entitlement in relation
to an award under sub-paragraph (a) and the amount payable by
way of an allowance under such an award.
Matching of awards of employment and support allowance
15
5     (1)
For the purposes of this paragraph, an award of an employment and support
allowance is one that falls to be made on matching terms if—
(a)
it is made in pursuance of a claim by a person who was previously
entitled to an existing benefit,
(b)
but for regulations under paragraph 3(a), he could have made a
20
further claim for that benefit, and
(c)
an award in pursuance of the further claim would have been made
on the basis of the linking of periods of incapacity for work.
      (2)
Regulations may—
(a)
make provision for the purpose of securing that an award of an
25
employment and support allowance that falls to be made on
matching terms is made on terms which match in whole or part the
award that would have been made in pursuance of a further claim to
the existing benefit;
(b)
make provision for the modification of matched awards for the
30
purpose of securing that the person with the award is put in the
position he would have been had he been made an award of the
existing benefit which was then the subject of conversion under
paragraph 7.
      (3)
In sub-paragraph (2)(b), the reference to matched awards is to awards of an
35
employment and support allowance that have been the subject of matching
in pursuance of regulations under sub-paragraph (2)(a).
6     (1)
For the purposes of this paragraph an award of an employment and support
allowance is one which falls to be made on matching terms if—
(a)
it is made in pursuance of a claim by a person who was previously
40
entitled to an existing benefit,
(b)
had he continued to be entitled to that benefit, his award would have
been the subject of conversion under paragraph 7 before the date of
his claim for an employment and support allowance,
(c)
but for regulations under paragraph 3(a), he could have made a
45
further claim for that benefit, and