Welfare Reform Act 2012

(1C) (1) For the purposes of this Part a “claimant commitment” is a record of the claimant's responsibilities in relation to an award of an employment and support allowance. (2) A claimant commitment is to be prepared by the Secretary of State and may be reviewed and updated as the Secretary of State thinks fit. (3) A claimant commitment is to be in such form as the Secretary of State thinks fit. (4) A claimant commitment is to include— (a) any prescribed information, and (b) any other information the Secretary of State considers it appropriate to include. (5) For the purposes of this Part a claimant accepts a claimant commitment if, and only if, the claimant accepts the most up-to-date version of it in such manner as may be prescribed. (6) Regulations may provide that, in prescribed circumstances, a claimant is to be treated as having satisfied the condition mentioned in section 1(3)(aa).

• (4) In section 15(2)(b) (directions about work-related activity) for the words from “by” to “14” there is substituted “ in such manner as the Secretary of State thinks fit ”.

• (5) In section 16(1) (contracting out) before paragraph (a) there is inserted—

(za) any function under section 1C in relation to a claimant commitment;

• (6) In Schedule 2 (supplementary provisions) after paragraph 4 there is inserted—

(4A) Regulations may prescribe circumstances in which a person may be entitled to employment and support allowance without having accepted a claimant commitment.

• (7) In section 31(2) of the Welfare Reform Act 2009 (action plans: well-being of children), in subsection (5) inserted into section 14 of the Welfare Reform Act 2007, after “preparing any” there is inserted “ claimant commitment or ”.

Work experience etc

55

In section 13 of the Welfare Reform Act 2007 (work-related activity), after subsection (7) there is inserted—

(8) The reference to activity in subsection (7) includes work experience or a work placement.

Hardship payments

56

In the Welfare Reform Act 2007 after section 16 there is inserted—

(16A) (1) Regulations may make provision for the making of payments (“hardship payments”) by way of an employment and support allowance to a person where— (a) the amount otherwise payable to the person in respect of an employment and support allowance is reduced by virtue of regulations under section 11(3), 12(3) or 13(3), and (b) the person is or will be in hardship. (2) Regulations under this section may in particular make provision as to— (a) circumstances in which a person is to be treated as being or not being in hardship; (b) matters to be taken into account in determining whether a person is or will be in hardship; (c) requirements or conditions to be met by a person in order to receive hardship payments; (d) the amount or rate of hardship payments; (e) the period for which hardship payments may be made.

Claimant responsibilities after introduction of universal credit

Claimant responsibilities for employment and support allowance

57

• (1) The Welfare Reform Act 2007 is amended as follows.

• (2) For sections 11 to 16 (and the italic heading preceding section 11) there is substituted—

(11) (1) The following provisions of this Part provide for the Secretary of State to impose work-related requirements with which persons entitled to an employment and support allowance must comply for the purposes of this Part. (2) In this Part “work-related requirement” means— (a) a work-focused interview requirement (see section 11B); (b) a work preparation requirement (see section 11C). (3) The work-related requirements which may be imposed on a person depend on which of the following groups the person falls into— (a) persons subject to no work-related requirements (see section 11D); (b) persons subject to work-focused interview requirement only (see section 11E); (c) persons subject to work-focused interview and work preparation requirements (see section 11F). (11A) (1) A claimant commitment is a record of the responsibilities of a person entitled to an employment and support allowance in relation to the award of the allowance. (2) A claimant commitment is to be prepared by the Secretary of State and may be reviewed and updated as the Secretary of State thinks fit. (3) A claimant commitment is to be in such form as the Secretary of State thinks fit. (4) A claimant commitment is to include— (a) a record of the requirements that the person must comply with under this Part (or such of them as the Secretary of State considers it appropriate to include), (b) any prescribed information, and (c) any other information the Secretary of State considers it appropriate to include. (5) For the purposes of this Part a person accepts a claimant commitment if, and only if, the claimant accepts the most up-to-date version of it in such manner as may be prescribed. (11B) (1) In this Part a “work-focused interview requirement” is a requirement that a person participate in one or more work-focused interviews as specified by the Secretary of State. (2) A work-focused interview is an interview for prescribed purposes relating to work or work preparation. (3) The purposes which may be prescribed under subsection (2) include in particular that of making it more likely in the opinion of the Secretary of State that the person will obtain paid work (or more paid work or better-paid work). (4) The Secretary of State may specify how, when and where a work-focused interview is to take place. (11C) (1) In this Part a “work preparation requirement” is a requirement that a person take particular action specified by the Secretary of State for the purpose of making it more likely in the opinion of the Secretary of State that the person will obtain paid work (or more paid work or better-paid work). (2) The Secretary of State may under subsection (1) specify the time to be devoted to any particular action. (3) Action which may be specified under subsection (1) includes in particular— (a) attending a skills assessment; (b) improving personal presentation; (c) participating in training; (d) participating in an employment programme; (e) undertaking work experience or a work placement; (f) developing a business plan; (g) any action prescribed for the purpose in subsection (1). (4) The action which may be specified under subsection (1) includes taking part in a work-focused health-related assessment. (5) In subsection (4) “work-focused health-related assessment” means an assessment by a health care professional approved by the Secretary of State which is carried out for the purpose of assessing— (a) the extent to which the person's capability for work may be improved by taking steps in relation to their physical or mental condition, and (b) such other matters relating to their physical or mental condition and the likelihood of their obtaining or remaining in work or being able to do so as may be prescribed. (6) In subsection (5) “health care professional” means— (a) a registered medical practitioner, (b) a registered nurse, (c) an occupational therapist or physiotherapist registered with a regulatory body established by an Order in Council under section 60 of the Health Act 1999, or (d) a member of such other profession regulated by a body mentioned in section 25(3) of the National Health Service Reform and Health Care Professions Act 2002 as may be prescribed. (11D) (1) The Secretary of State may not impose any work-related requirement on a person falling within this section. (2) A person falls within this section if— (a) the person has limited capability for work and work-related activity, (b) the person has regular and substantial caring responsibilities for a severely disabled person, (c) the person is a single person responsible for a child under the age of 1, (d) the person is of a prescribed description. (3) Where a person falls within this section, any work-related requirement previously applying to the person ceases to have effect. (4) In this section— - “regular and substantial caring responsibilities” has such meaning as may be prescribed; - “severely disabled“ has such meaning as may be prescribed. (11E) (1) A person falls within this section if— (a) the person is a single person responsible for a child who is aged at least 1 and is under a prescribed age (which may not be less than 3), or (b) the person is of a prescribed description. (2) The Secretary of State may, subject to this Part, impose a work-focused interview requirement on a person entitled to an employment and support allowance who falls within this section. (3) The Secretary of State may not impose a work preparation requirement on a person falling within this section (and, where a person falls within this section, a work preparation requirement previously applying to the person ceases to have effect). (11F) (1) A person who does not fall within section 11D or 11E falls within this section. (2) The Secretary of State may, subject to this Part, impose a work preparation requirement or work-focused interview requirement on a person entitled to an employment and support allowance who falls within this section. (11G) (1) The Secretary of State may require a person entitled to an employment and support allowance to participate in an interview for any purpose relating to— (a) the imposition of a work-related requirement on the person; (b) verifying the person's compliance with a work-related requirement; (c) assisting the person to comply with a work-related requirement. (2) The Secretary of State may specify how, when and where such an interview is to take place. (3) The Secretary of State may, for the purpose of verifying a person's compliance with a work-related requirement, require the person to— (a) provide to the Secretary of State information and evidence specified by the Secretary of State in a manner so specified; (b) confirm compliance in a manner so specified. (4) The Secretary of State may require a person to report to the Secretary of State any specified changes in their circumstances which are relevant to— (a) the imposition of work-related requirements on the person; (b) the person's compliance with a work-related requirement. (11H) (1) Regulations may make provision— (a) where the Secretary of State may impose a requirement under this Part, as to when the requirement must or must not be imposed; (b) where the Secretary of State may specify any action to be taken in relation to a requirement under this Part, as to what action must or must not be specified; (c) where the Secretary of State may specify any other matter in relation to a requirement under this Part, as to what must or must not be specified in respect of that matter. (2) Where the Secretary of State may impose a work-focused interview requirement, or specify a particular action under section 11C(1), the Secretary of State must have regard to such matters as may be prescribed. (3) Where the Secretary of State may impose a requirement under this Part, or specify any action to be taken in relation to such a requirement, the Secretary of State may revoke or change what has been imposed or specified. (4) Notification of a requirement imposed under this Part (or any change to or revocation of such a requirement) is, if not included in the claimant commitment, to be in such manner as the Secretary of State may determine. (5) Regulations must make provision to secure that, in prescribed circumstances, where a person has recently been a victim of domestic violence— (a) a requirement imposed on that person under this Part ceases to have effect for a period of 13 weeks, and (b) the Secretary of State may not impose any other requirement on that person during that period. (6) For the purposes of subsection (5)— (a) “domestic violence“ has such meaning as may be prescribed; (b) “victim of domestic violence” means a person on or against whom domestic violence is inflicted or threatened (and regulations under subsection (5) may prescribe circumstances in which a person is to be treated as being or not being a victim of domestic violence); (c) a person has recently been a victim of domestic violence if a prescribed period has not expired since the violence was inflicted or threatened. (11I) Regulations may make provision as to circumstances in which a person is to be treated as having— (a) complied with or not complied with any requirement imposed under this Part or any aspect of such a requirement, or (b) taken or not taken any particular action specified by the Secretary of State in relation to such a requirement. (11J) (1) The amount of an award of an employment and support allowance is to be reduced in accordance with this section in the event of a failure by a person which is sanctionable under this section. (2) It is a failure sanctionable under this section if a person— (a) fails for no good reason to comply with a work-related requirement; (b) fails for no good reason to comply with a requirement under section 11G. (3) Regulations are to specify— (a) the amount of a reduction under this section, and (b) the period for which such a reduction has effect. (4) Regulations under subsection (3)(b) may provide that a reduction under this section in relation to any failure is to have effect for— (a) a period continuing until the person meets a compliance condition specified by the Secretary of State, (b) a fixed period not exceeding 26 weeks which is— (i) specified in the regulations, or (ii) determined in any case by the Secretary of State, or (c) a combination of both. (5) In subsection (4)(a) “compliance condition” means— (a) a condition that the failure ceases, or (b) a condition relating to future compliance with a work-related requirement or a requirement under section 11G. (6) A compliance condition specified under subsection (4)(a) may be— (a) revoked or varied by the Secretary of State; (b) notified to the person in such manner as the Secretary of State may determine. (7) A period fixed under subsection (4)(b) may in particular depend on either or both the following— (a) the number of failures by the person sanctionable under this section; (b) the period between such failures. (8) Regulations may provide— (a) for cases in which no reduction is to be made under this section; (b) for a reduction under this section made in relation to an award that is terminated to be applied to any new award made within a prescribed period of the termination; (c) for the termination or suspension of a reduction under this section. (11K) (1) The functions of the Secretary of State under sections 11 to 11I may be exercised by, or by the employees of, such person as the Secretary of State may authorise for the purpose (an “authorised person”). (2) An authorisation given by virtue of this section may authorise the exercise of a function— (a) wholly or to a limited extent; (b) generally or in particular cases or areas; (c) unconditionally or subject to conditions. (3) An authorisation under this section— (a) may specify its duration; (b) may be varied or revoked at any time by the Secretary of State; (c) does not prevent the Secretary of State or another person from exercising the function to which the authorisation relates. (4) Anything done or omitted to be done by or in relation to an authorised person (or an employee of that person) in, or in connection with, the exercise or purported exercise of the function concerned is to be treated for all purposes as done or omitted to be done by or in relation to the Secretary of State or (as the case may be) an officer of the Secretary of State. (5) Subsection (4) does not apply— (a) for the purposes of so much of any contract made between the authorised person and the Secretary of State as relates to the exercise of the function, or (b) for the purposes of any criminal proceedings brought in respect of anything done or omitted to be done by the authorised person (or an employee of that person). (6) Where— (a) the authorisation of an authorised person is revoked, and (b) at the time of the revocation so much of any contract made between the authorised person and the Secretary of State as relates to the exercise of the function is subsisting, the authorised person is entitled to treat the contract as repudiated by the Secretary of State (and not as frustrated by reason of the revocation).

• (3) In section 19 (pilot schemes), in subsection (3), for the words from “ascertaining” to the end there is substituted “testing the extent to which the provision made by the regulations is likely to promote—

• (a) people remaining in work, or

• (b) people obtaining or being able to obtain work (or more work or better-paid work).”

• (4) In section 24 (interpretation), in subsection (1)—

• (a) at the appropriate places there is inserted—

“child” means a person under the age of 16;

“single person” means an individual who is not a member of a couple (within the meaning of Part 1 of the Welfare Reform Act 2012);

“work” has such meaning as may be prescribed;

“work-focused interview requirement” has the meaning given by section 11B;

“work preparation requirement” has the meaning given by section 11C;

“work-related requirement” has the meaning given by section 11;

• (b) for the definition of “work-related activity” there is substituted—

“work-related activity”, in relation to a person, means activity which makes it more likely that the person will obtain or remain in work or be able to do so;

• (5) In section 25 (regulations), in subsection (6), for “to 15” there is substituted “ to 11J ”.

• (6) In section 26 (parliamentary control), in subsection (1), after paragraph (a) there is inserted—

(aa) the first regulations under section 11D(2)(d) or 11J,

• (7) In Schedule 2 (supplementary)—

• (a) in the heading preceding paragraph 10A, for “cause” there is substituted “ reason ”;

• (b) before paragraph 10A there is inserted—

(10ZA) Regulations may for any purpose of this Part provide for— (a) circumstances in which a person is to be treated as having or not having a good reason for an act or omission; (b) matters which are or are not to be taken into account in determining whether a person has a good reason for an act or omission.

• (c) in paragraph 10A (good cause), in sub-paragraph (1)—

• (i) for “section 11, 12 or 13“ there is substituted “ paragraph 10ZA ”;

• (ii) for “good cause” there is substituted “ a good reason ”.

• (8) In that Schedule, after paragraph 10A there is inserted—

(10B) Regulations may for any purpose of this Part specify circumstances in which a person is or is not responsible for a child.

• (9) In that Schedule, in paragraph 13 (information), for “13” there is substituted “ 11K ”.

CHAPTER 3 — Income support

Entitlement of lone parents to income support etc

58

• (1) The Welfare Reform Act 2009 is amended as follows.

• (2) In section 3(1), in paragraph (b) of subsection (1A) to be inserted into section 124 of the Social Security Contributions and Benefits Act 1992 (lone parents with a child under 7 to be included in regulations as a category of person entitled to income support), for “7” there is substituted “ 5 ”.

• (3) In section 8 (parliamentary procedure for regulations imposing a requirement on lone parents with a child under 7 to undertake work-related activity), in the heading and in subsection (1), for “7“ there is substituted “ 5 ”.

Claimant commitment for income support

59

• (1) The Social Security Contributions and Benefits Act 1992 is amended as follows.

• (2) Section 124 (income support) is amended as follows—

• (a) in subsection (1), after paragraph (e) there is inserted—

(ea) he has accepted a claimant commitment;

• (b) after subsection (1B) there is inserted—

(1C) Regulations may prescribe circumstances in which a person may be entitled to income support without having accepted a claimant commitment.

• (3) After section 124 there is inserted—

(124A) (1) For the purposes of this Part a “claimant commitment” is a record of the claimant's responsibilities in relation to an award of income support. (2) A claimant commitment is to be prepared by the Secretary of State and may be reviewed and updated as the Secretary of State thinks fit. (3) A claimant commitment is to be in such form as the Secretary of State thinks fit. (4) A claimant commitment is to include— (a) any prescribed information, and (b) any other information the Secretary of State considers it appropriate to include. (5) For the purposes of section 124 and this section a claimant accepts a claimant commitment if, and only if, the claimant accepts the most up-to-date version of it in such manner as may be prescribed. (6) Regulations may provide that in prescribed circumstances, a claimant is to be treated as having satisfied the condition mentioned in section 124(1)(ea).

• (4) In section 2F of the Social Security Administration Act 1992 (directions about work-related activity), in subsection (3)(b), for the words from “by” to “2E” there is substituted “ in such manner as the Secretary of State thinks fit ”.

• (5) In section 2G of that Act (contracting out), in subsection (1), at the end there is inserted—

(d) any function under section 124A of the Social Security Contributions and Benefits Act 1992 in relation to a claimant commitment.

CHAPTER 4 — Miscellaneous

Claimants dependent on drugs etc

Claimants dependent on drugs etc

60

• (1) Section 17C of, and Schedule A1 to, the Jobseekers Act 1995 (persons dependent on drugs etc: jobseekers allowance) are repealed.

• (2) Section 15A of, and Schedule 1A to, the Welfare Reform Act 2007 (persons dependent on drugs etc: employment and support allowance) are repealed.

• (3) In the Welfare Reform Act 2009, section 11 and Schedule 3 (which includes provision for review of the provisions repealed by this section) are repealed.

Entitlement to work

Entitlement to work: jobseeker's allowance

61

• (1) The Jobseekers Act 1995 is amended as follows.

• (2) In section 1 (jobseeker's allowance), in subsection (2), before paragraph (a) there is inserted—

(za) is entitled to be in employment in the United Kingdom;

• (3) In that section, after subsection (3) there is inserted—

(3A) For the purposes of subsection (2)(za), a person is entitled to be in employment in the United Kingdom if, and only if— (a) the person does not under the Immigration Act 1971 require leave to enter or remain in the United Kingdom, or (b) the person has been granted such leave and— (i) the leave is not invalid, (ii) the leave has not for any reason ceased to have effect, and (iii) the leave is not subject to a condition preventing the person from accepting any employment.

• (4) In Schedule 1 (supplementary provisions), after paragraph 8 there is inserted—

(8ZA) Regulations may prescribe circumstances in which a person may be entitled to a jobseeker's allowance without being entitled to be in employment in the United Kingdom.

Entitlement to work: employment and support allowance

62

• (1) The Welfare Reform Act 2007 is amended as follows.

• (2) In section 1 (employment and support allowance), in subsection (3), before paragraph (a) there is inserted—

(za) is entitled to be in employment in the United Kingdom,

• (3) In that section, after subsection (3A) there is inserted—

(3B) For the purposes of subsection (3)(za), a person is entitled to be in employment in the United Kingdom if, and only if— (a) the person does not under the Immigration Act 1971 require leave to enter or remain in the United Kingdom, or (b) the person has been granted such leave and— (i) the leave is not invalid, (ii) the leave has not for any reason ceased to have effect, and (iii) the leave is not subject to a condition preventing the person from accepting any employment.

• (4) In Schedule 2 (supplementary provisions), after paragraph 4A (as inserted by section 54 of this Act) there is inserted—

(4B) Regulations may provide that in prescribed circumstances a person who is not entitled to be in employment in the United Kingdom may nevertheless be entitled to an employment and support allowance.

Entitlement to work: maternity allowance and statutory payments

63

• (1) The Social Security Contributions and Benefits Act 1992 is amended as follows.

• (2) In section 35 (state maternity allowance)—

• (a) in subsection (1), at the end there is inserted “and

(e) at the commencement of the week referred to in paragraph (a) above she was entitled to engage in the employment referred to in paragraph (b) above.

• (b) in subsection (3), before paragraph (a) there is inserted—

(za) for circumstances in which subsection (1)(e) above does not apply;

• (3) In section 164 (statutory maternity pay)—

• (a) in subsection (2), after paragraph (a) there is inserted—

(aa) that at the end of the week immediately preceding that 14th week she was entitled to be in that employment;

• (b) in subsection (9), after paragraph (d) there is inserted—

(da) provide for circumstances in which subsection (2)(aa) above does not apply;

• (4) In section 171ZA (ordinary statutory paternity pay: birth)—

• (a) in subsection (2), after paragraph (b) there is inserted—

(ba) that at the end of the relevant week he was entitled to be in that employment;

• (b) after subsection (3) there is inserted—

(3A) Regulations may provide for circumstances in which subsection (2)(ba) above does not apply.

• (5) In section 171ZB (ordinary statutory paternity pay: adoption)—

• (a) in subsection (2), after paragraph (b) there is inserted—

(ba) that at the end of the relevant week he was entitled to be in that employment;

• (b) after subsection (3) there is inserted—

(3A) Regulations may provide for circumstances in which subsection (2)(ba) above does not apply.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) In section 171ZL (statutory adoption pay: entitlement)—

• (a) in subsection (2), after paragraph (b) there is inserted—

(ba) that at the end of the relevant week he was entitled to be in that employment;

• (b) in subsection (3), after “(2)(b)“ there is inserted “, (ba)”;

• (c) in subsection (8), before paragraph (a) there is inserted—

(za) exclude the application of subsection (2)(ba) above in prescribed circumstances;

• (9) After section 173 there is inserted—

(173A) (1) For the purposes of this Act a person is entitled to engage in or to be in any employment if (and only if)— (a) the person does not under the Immigration Act 1971 require leave to enter or remain in the United Kingdom, or (b) the person has been granted such leave and— (i) the leave is not invalid, (ii) the leave has not for any reason ceased to have effect, and (iii) the leave is not subject to a condition preventing the person from accepting that employment.

• (10) In Schedule 11 (statutory sick pay: circumstances in which periods of entitlement do not arise)—

• (a) in paragraph 2, at the end there is inserted—

(i) the employee is not entitled to be in his employment on the relevant date.

• (b) at the end there is inserted—

(9) Paragraph 2(i) above does not apply in prescribed circumstances.

Part 3 — Other benefit changes

Industrial injuries benefit

Injuries arising before 5 July 1948

64

• (1) In Part 5 of the Social Security Contributions and Benefits Act 1992 (industrial injuries benefit), the following provisions are repealed—

• (a) in section 94(1), the words “after 4th July 1948”;

• (b) in section 103(2)(a), the words “after 4th July 1948”;

• (c) in section 108(1), the words “and which developed after 4th July 1948”;

• (d) in section 108(3), the words “but not before 5th July 1948”;

• (e) in section 109(5)(a), the words “after 4th July 1948”;

• (f) in section 109(5)(b) and (6)(a), the words “and developed after 4th July 1948”.

• (2) Accordingly, section 111 and Schedule 8 of that Act (which relate to compensation and benefits in respect of industrial injuries before 5 July 1948) are repealed.

• (3) The Secretary of State may make regulations—

• (a) for, and in relation to, the payment of industrial injuries benefit to persons to whom, before the commencement of this section, compensation or benefits were payable under section 111 of, and Schedule 8 to, the Social Security Contributions and Benefits Act 1992;

• (b) for claims for the payment of such compensation or benefit to be treated as claims for industrial injuries benefit.

• (4) In subsection (3) “industrial injuries benefit” has the meaning given by section 122(1) of the Social Security Contributions and Benefits Act 1992.

• (5) Regulations under this section are to be made by statutory instrument.

• (6) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament.

Persons under 18

65

• (1) In Schedule 4 to the Social Security Contributions and Benefits Act 1992 (rates of benefits), Part 5 (rates of industrial injuries benefit) is amended as follows.

• (2) In entry 1 (which relates to disablement pension (weekly rates)), in the second column (“Rate”)—

• (a) in the opening words, for the words from “in that Table” to the end of paragraph (b) there is substituted “ in column (2) of that Table. ”;

• (b) in the Table, column (3) is repealed.

• (3) In entry 4 (which relates to the maximum of aggregate of weekly benefit payable for successive accidents), in the second column (“Rate”)—

• (a) paragraph (a) is repealed, except for the monetary amount specified;

• (b) paragraph (b) is repealed, including the monetary amount specified.

Trainees

66

• (1) After section 95 of the Social Security Contributions and Benefits Act 1992 there is inserted—

(95A) (1) In the industrial injuries and diseases provisions any reference to employed earner's employment shall be taken to include participation in an employment training scheme or employment training course of a prescribed description (and “employed earner” shall be construed accordingly). (2) In those provisions, a reference to an employer, in relation to any such participation, shall be taken to be a prescribed person. (3) In this section “industrial injuries and diseases provisions” has the same meaning as in section 95(4) above.

• (2) In section 11 of the Employment and Training Act 1973 (financial provision), in subsection (3) (power to make payments in respect of trainees equivalent to social security benefits payable in respect of employees), for “Parts II to V” there is substituted “Parts 2 to 4“.

• (3) The Secretary of State may make regulations—

• (a) for, and in relation to, the payment of industrial injuries benefit to persons to whom, before the commencement of this section, payments were payable under section 11(3) of the Employment and Training Act 1973;

• (b) for claims for such payments to be treated as claims for industrial injuries benefit.

• (4) In subsection (3) “industrial injuries benefit” has the meaning given by section 122(1) of the Social Security Contributions and Benefits Act 1992.

• (5) Regulations under this section are to be made by statutory instrument.

• (6) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament.

Restriction on new claims for industrial death benefit

67

In Part 6 of Schedule 7 to the Social Security Contributions and Benefits Act 1992 (industrial death benefit), in paragraph 14, after sub-paragraph (1) there is inserted—

(1A) No claim may be made for industrial death benefit after the coming into force of this sub-paragraph.

Determinations

68

• (1) Section 29(2) of the Social Security Act 1998 (which provides for decisions as to whether an accident is an industrial accident in the absence of a claim for benefit) is repealed.

• (2) In section 30 of that Act (effect of decision), in subsection (1), the words from “(given” to “otherwise)” are repealed.

Housing benefit

Housing benefit: determination of appropriate maximum

69

• (1) Section 130A of the Social Security Contributions and Benefits Act 1992 (appropriate maximum housing benefit) is amended as follows.

• (2) In subsection (3), for “The regulations may provide” there is substituted “ The provision which may be made by the regulations includes provision ”.

• (3) For subsections (5) and (6) there is substituted—

(5) The regulations may, for the purpose of determining the AMHB, provide for the amount of the liability mentioned in section 130(1)(a) above to be taken to be an amount other than the actual amount of that liability (and, without prejudice to the generality of this subsection, may provide for it to be taken to be the amount of a rent officer determination). (6) The regulations may, for that purpose, make provision for determining the amount of liability under section 130(1)(a) above which a person is treated as having by virtue of regulations under section 137(2)(j) below (and, without prejudice to the generality of this subsection, may provide for that amount to be the amount of a rent officer determination).

• (4) In section 176(1) of that Act (Parliamentary control), after paragraph (aa) there is inserted—

(ab) the first regulations made by virtue of section 130A(5) or (6);

Social fund

Ending of discretionary payments

70

• (1) Section 138(1)(b) of the Social Security Contributions and Benefits Act 1992 (discretionary payments out of social fund) is repealed.

• (2) In consequence of the provision made by subsection (1), the office of the social fund Commissioner is abolished.

• (3) Payments are to be made out of the social fund into the Consolidated Fund in respect of—

• (a) amounts allocated under section 168 of the Social Security Administration Act 1992 to the making of such payments as are mentioned in section 138(1)(b) but which are not so applied in consequence of subsection (1);

• (b) sums relating to such payments as are mentioned in section 138(1)(b) that are paid into the social fund under section 164 of the Social Security Administration Act 1992.

• (4) The payments are to be such as the Secretary of State determines in accordance with any directions of the Treasury to be appropriate.

• (5) Subsection (3) is not to prevent the Secretary of State from re-allocating amounts allocated under section 168(1) of the Social Security Administration Act 1992.

• (6) The Secretary of State may by order provide for the transfer of property, rights and liabilities from the social fund Commissioner.

• (7) An order under this section may—

• (a) provide for the transfer of property, rights and liabilities whether or not they would otherwise be capable of being transferred;

• (b) make such supplementary, incidental, consequential or transitional provision as the Secretary of State considers appropriate.

• (8) An order under this section is to be made by statutory instrument.

• (9) A statutory instrument containing an order under this section is subject to annulment in pursuance of a resolution of either House of Parliament.

• (10) Schedule 8 contains consequential amendments.

Purposes of discretionary payments

71

In section 138 of the Social Security Contributions and Benefits Act 1992 (payments out of the social fund), in subsection (1)(b), for “to meet other needs” there is substituted

to meet— (i) other needs, and (ii) in the case of payments by way of budgeting loan, those needs for which provision is made by paragraph (a),

Determination of amount or value of budgeting loan

72

• (1) Section 140 of the Social Security Contributions and Benefits Act 1992 (principles of determination) is amended as follows.

• (2) In subsection (4), after paragraph (d) there is inserted—

(da) that the amount or value of a budgeting loan is not to exceed a sum specified or determined as specified in the direction;

• (3) After subsection (4) there is inserted—

(4ZA) A direction under subsection (4)(da) may require the sum to be determined by applying, or by a method that includes applying, a multiplier specified in the direction in circumstances specified in the direction to the most recent relevant sum published by the Secretary of State. (4ZB) A relevant sum is a sum determined from time to time by reference to so much of any relevant allocation under section 168(1) to (4) of the Administration Act as is available for making payments.

External provider social loans and community care grants

73

Sections 16 to 21 of the Welfare Reform Act 2009 (provisions relating to external provider social loans and community care grants), which have not been brought into force, are repealed.

State pension credit

State pension credit: carers

74

• (1) The State Pension Credit Act 2002 is amended as follows.

• (2) In section 2 (guarantee credit), in subsection (8), for paragraphs (a) and (b) there is substituted—

(a) the claimant has regular and substantial caring responsibilities, or (b) the claimant is a member of a couple the other member of which has such responsibilities,

• (3) In section 17 (interpretation), in subsection (1), in the appropriate place there is inserted—

“regular and substantial caring responsibilities” has such meaning as may be prescribed;

State pension credit: capital limit

75

• (1) In section 1 of the State Pension Credit Act 2002 (entitlement), in subsection (2)—

• (a) in paragraph (b), the final “and” is repealed;

• (b) at the end there is inserted

and (d) his capital does not exceed a prescribed amount

• (2) In section 19 of that Act (regulations and orders), in subsection (2), before paragraph (a) there is inserted—

(za) section 1(2)(d),

Working tax credit

Calculation of working tax credit

76

• (1) Step 5 in regulation 7(3) of the 2002 Regulations has effect in relation to awards of working tax credit for the whole or part of the relevant year as if from the beginning of the day on 6 April 2011 the percentage to be applied under step 5 in finding the amount of the reduction were 41% (instead of 39%).

• (2) Anything done by the Commissioners before the coming into force of this section in relation to awards of working tax credit for the whole or part of the relevant year is to be treated as having been duly done, if it would have been duly done but for being done on the basis that from the beginning of the day on 6 April 2011 the percentage to be applied under step 5 was 41%.

• (3) In this section—

• “the 2002 Regulations” means the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002 (S.I. 2002/2008);

• “the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;

• “the relevant year” means the year beginning with 6 April 2011.

Part 4 — Personal independence payment

Personal independence payment

Personal independence payment

77

• (1) An allowance known as personal independence payment is payable in accordance with this Part.

• (2) A person's entitlement to personal independence payment may be an entitlement to—

• (a) the daily living component (see section 78);

• (b) the mobility component (see section 79); or

• (c) both those components.

• (3) A person is not entitled to personal independence payment unless the person meets prescribed conditions relating to residence and presence in Great Britain.

• (4) A person is not entitled to personal independence payment while they are entitled to Scottish adult disability living allowance, pension age disability payment, adult disability payment or child disability payment.

Daily living component

78

• (1) A person is entitled to the daily living component at the standard rate if—

• (a) the person's ability to carry out daily living activities is limited by the person's physical or mental condition; and

• (b) the person meets the required period condition.

• (2) A person is entitled to the daily living component at the enhanced rate if—

• (a) the person's ability to carry out daily living activities is severely limited by the person's physical or mental condition; and

• (b) the person meets the required period condition.

• (3) In this section, in relation to the daily living component—

• (a) “the standard rate” means such weekly rate as may be prescribed;

• (b) “the enhanced rate” means such weekly rate as may be prescribed.

• (4) In this Part “daily living activities“ means such activities as may be prescribed for the purposes of this section.

• (5) See sections 80 and 81 for provision about determining—

• (a) whether the requirements of subsection (1)(a) or (2)(a) above are met;

• (b) whether a person meets “the required period condition” for the purposes of subsection (1)(b) or (2)(b) above.

• (6) This section is subject to the provisions of this Part, or regulations under it, relating to entitlement to the daily living component (see in particular sections 82 (persons who are terminally ill) and 83 (persons of pensionable age)).

Mobility component

79

• (1) A person is entitled to the mobility component at the standard rate if—

• (a) the person is of or over the age prescribed for the purposes of this subsection;

• (b) the person's ability to carry out mobility activities is limited by the person's physical or mental condition; and

• (c) the person meets the required period condition.

• (2) A person is entitled to the mobility component at the enhanced rate if—

• (a) the person is of or over the age prescribed for the purposes of this subsection;

• (b) the person's ability to carry out mobility activities is severely limited by the person's physical or mental condition; and

• (c) the person meets the required period condition.

• (3) In this section, in relation to the mobility component—

• (a) “the standard rate” means such weekly rate as may be prescribed;

• (b) “the enhanced rate” means such weekly rate as may be prescribed.

• (4) In this Part “mobility activities” means such activities as may be prescribed for the purposes of this section.

• (5) See sections 80 and 81 for provision about determining—

• (a) whether the requirements of subsection (1)(b) or (2)(b) above are met;

• (b) whether a person meets “the required period condition” for the purposes of subsection (1)(c) or (2)(c) above.

• (6) This section is subject to the provisions of this Part, or regulations under it, relating to entitlement to the mobility component (see in particular sections 82 and 83).

• (7) Regulations may provide that a person is not entitled to the mobility component for a period (even though the requirements in subsection (1) or (2) are met) in prescribed circumstances where the person's condition is such that during all or most of the period the person is unlikely to benefit from enhanced mobility.

Ability to carry out daily living activities or mobility activities

80

• (1) For the purposes of this Part, the following questions are to be determined in accordance with regulations—

• (a) whether a person's ability to carry out daily living activities is limited by the person's physical or mental condition;

• (b) whether a person's ability to carry out daily living activities is severely limited by the person's physical or mental condition;

• (c) whether a person's ability to carry out mobility activities is limited by the person's physical or mental condition;

• (d) whether a person's ability to carry out mobility activities is severely limited by the person's physical or mental condition.

• (2) Regulations must make provision for determining, for the purposes of each of sections 78(1) and (2) and 79(1) and (2), whether a person meets “the required period condition” (see further section 81).

• (3) Regulations under this section—

• (a) must provide for the questions mentioned in subsections (1) and (2) to be determined, except in prescribed circumstances, on the basis of an assessment (or repeated assessments) of the person;

• (b) must provide for the way in which an assessment is to be carried out;

• (c) may make provision about matters which are, or are not, to be taken into account in assessing a person.

• (4) The regulations may, in particular, make provision—

• (a) about the information or evidence required for the purpose of determining the questions mentioned in subsections (1) and (2);

• (b) about the way in which that information or evidence is to be provided;

• (c) requiring a person to participate in such a consultation, with a person approved by the Secretary of State, as may be determined under the regulations (and to attend for the consultation at a place, date and time determined under the regulations).

• (5) The regulations may include provision—

• (a) for a negative determination to be treated as made if a person fails without a good reason to comply with a requirement imposed under subsection (4);

• (b) about what does or does not constitute a good reason for such a failure;

• (c) about matters which are, or are not, to be taken into account in determining whether a person has a good reason for such a failure.

• (6) In subsection (5)(a) a “negative determination” means a determination that a person does not meet the requirements of—

• (a) section 78(1)(a) and (b) or (2)(a) and (b) (daily living component);

• (b) section 79(1)(a) to (c) or (2)(a) to (c) (mobility component).

Required period condition: further provision

81

• (1) Regulations under section 80(2) must provide for the question of whether a person meets “the required period condition” for the purposes of section 78(1) or (2) or 79(1) or (2) to be determined by reference to—

• (a) whether, as respects every time in the previous 3 months, it is likely that if the relevant ability had been assessed at that time that ability would have been determined to be limited or (as the case may be) severely limited by the person's physical or mental condition; and

• (b) whether, as respects every time in the next 9 months, it is likely that if the relevant ability were to be assessed at that time that ability would be determined to be limited or (as the case may be) severely limited by the person's physical or mental condition.

• (2) In subsection (1) “the relevant ability” means—

• (a) in relation to section 78(1) or (2), the person's ability to carry out daily living activities;

• (b) in relation to section 79(1) or (2), the person's ability to carry out mobility activities.

• (3) In subsection (1)—

• (a) “assessed” means assessed in accordance with regulations under section 80;

• (b) “the previous 3 months” means the 3 months ending with the prescribed date;

• (c) “the next 9 months” means the 9 months beginning with the day after that date.

• (4) Regulations under section 80(2) may provide that in prescribed cases the question of whether a person meets “the required period condition” for the purposes of section 78(1) or (2) or 79(1) or (2)—

• (a) is not to be determined in accordance with the provision made by virtue of subsections (1) to (3) above;

• (b) is to be determined in accordance with provision made in relation to those cases by the regulations.

Entitlement and payability: further provision

Terminal illness

82

• (1) This section applies to a person who—

• (a) is terminally ill; and

• (b) has made a claim for personal independence payment expressly on the ground of terminal illness.

• (2) A person to whom this section applies is entitled to the daily living component at the enhanced rate (and accordingly section 78(1) and (2) do not apply to such a person).

• (3) Section 79(1)(c) and (2)(c) (required period condition for mobility component) do not apply to a person to whom this section applies.

• (4) For the purposes of this section a person is “terminally ill” at any time if at that time the person suffers from a progressive disease and the person's death in consequence of that disease can reasonably be expected within 12 months.

• (5) For the purposes of this section, where—

• (a) a person purports to make a claim for personal independence payment on behalf of another, and

• (b) the claim is made expressly on the ground that the person on whose behalf it purports to be made is terminally ill,

that person is to be regarded as making the claim despite its being made without that person's knowledge or authority.

• (6) In subsection (2) “the enhanced rate” has the meaning given by section 78(3).

Persons of pensionable age

83

• (1) A person is not entitled to the daily living component or the mobility component for any period after the person reaches the relevant age.

• (2) In subsection (1) “the relevant age” means—

• (a) pensionable age (within the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995); or

• (b) if higher, 65.

• (3) Subsection (1) is subject to such exceptions as may be provided by regulations.

No entitlement to daily living component where UK is not competent state

84

• (1) A person to whom a relevant EU Regulation applies is not entitled to the daily living component for a period unless during that period the United Kingdom is competent for payment of sickness benefits in cash to the person for the purposes of Chapter 1 of Title III of the Regulation in question.

• (2) Each of the following is a “relevant EU Regulation” for the purposes of this section—

• (a) Council Regulation (EC) No 1408/71 of 14 June 1971 , as amended from time to time, on the application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community;

• (b) Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 , as amended from time to time, on the coordination of social security systems.

Care home residents

85

• (1) Regulations may provide that no amount in respect of personal independence payment which is attributable to entitlement to the daily living component is payable in respect of a person for a period when the person meets the condition in subsection (2).

• (2) The condition is that the person is a resident of a care home in circumstances in which any of the costs of any qualifying services provided for the person are borne out of public or local funds by virtue of a specified enactment.

• (3) In this section “care home” means an establishment that provides accommodation together with nursing or personal care.

• (4) The following are “qualifying services“ for the purposes of subsection (2)—

• (a) accommodation;

• (b) board;

• (c) personal care;

• (d) such other services as may be prescribed.

• (5) The reference in subsection (2) to a “specified enactment” is to an enactment which is specified for the purposes of that subsection by regulations or is of a description so specified.

• (6) The power to specify an enactment for the purposes of subsection (2) includes power to specify it only in relation to its application for a particular purpose.

• (7) In this section “enactment” includes an enactment comprised in an Act of the Scottish Parliament or in an instrument made under such an Act.

Hospital in-patients

86

• (1) Regulations may provide as mentioned in either or both of the following paragraphs—

• (a) that no amount in respect of personal independence payment which is attributable to entitlement to the daily living component is payable in respect of a person for a period when the person meets the condition in subsection (2);

• (b) that no amount in respect of personal independence payment which is attributable to entitlement to the mobility component is payable in respect of a person for a period when the person meets the condition in subsection (2).

• (2) The condition is that the person is undergoing medical or other treatment as an in-patient at a hospital or similar institution in circumstances in which any of the costs of the treatment, accommodation and any related services provided for the person are borne out of public funds.

• (3) For the purposes of subsection (2) the question of whether any of the costs of medical or other treatment, accommodation and related services provided for a person are borne out of public funds is to be determined in accordance with the regulations.

Prisoners and detainees

87

Except to the extent that regulations provide otherwise, no amount in respect of personal independence payment is payable in respect of a person for a period during which the person is undergoing imprisonment or detention in legal custody.

Supplementary

Claims, awards and information

88

• (1) A person is not entitled to personal independence payment for any period before the date on which a claim for it is made or treated as made by that person or on that person's behalf.

• (2) An award of personal independence payment is to be for a fixed term except where the person making the award considers that a fixed term award would be inappropriate.

• (3) In deciding whether a fixed term award would be inappropriate, that person must have regard to guidance issued by the Secretary of State.

• (4) Information supplied under this Part is to be taken for all purposes to be information relating to social security.

Report to Parliament

89

The Secretary of State must lay before Parliament an independent report on the operation of assessments under section 80—

• (a) within 2 years beginning with the date on which the first regulations under that section come into force; and

• (b) within 4 years beginning with that date.

General

Abolition of disability living allowance

90

Sections 71 to 76 of the Social Security Contributions and Benefits Act 1992 (disability living allowance) are repealed.

Amendments

91

Schedule 9 contains amendments relating to this Part.

Power to make supplementary and consequential provision

92

• (1) Regulations may make such consequential, supplementary or incidental provision in relation to any provision of this Part as the Secretary of State considers appropriate.

• (2) 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 in the same session of Parliament.

• (3) 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.

Transitional

93

• (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 payment) has effect.

Regulations

94

• (1) Regulations under this Part are to be made by the Secretary of State.

• (2) A power to make regulations under this Part may be exercised—

• (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—

• (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 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) any of the following—

• (a) the first regulations under section 78(4) or 79(4);

• (b) the first regulations under section 80;

• (c) 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) Any other statutory instrument containing regulations under this Part is subject to annulment in pursuance of a resolution of either House of Parliament.

Interpretation of Part 4

95

In this Part—

• “adult disability payment” means disability assistance given in accordance with the Disability Assistance for Working Age People (Scotland) Regulations 2022;

• “child disability payment” means disability assistance given in accordance with the Disability Assistance for Children and Young People (Scotland) Regulations 2021 (S.S.I. 2021/174);

• “daily living activities” has the meaning given by section 78(4);

• “daily living component” means the daily living component of personal independence payment;

• “mobility activities” has the meaning given by section 79(4);

• “mobility component” means the mobility component of personal independence payment;

• “pension age disability payment” means disability assistance given in accordance with the Disability Assistance for Older People (Scotland) Regulations 2024;

• “prescribed” means prescribed by regulations;

• “Scottish adult disability living allowance” means disability assistance given in accordance with the Disability Assistance (Scottish Adult Disability Living Allowance) Regulations 2025.

Part 5 — Social security: general

Benefit cap

Benefit cap

96

• (1) Regulations may provide for a benefit cap to be applied to the welfare benefits to which a single person or couple is entitled.

• (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 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 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;

• (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, 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) Regulations under this section may make provision for determining the “relevant amount” for the reference period applicable in the case of a single person or couple by reference to the annual limit applicable in the case of that single person or couple.

• (5A) For the purposes of this section the “annual limit” is—

• (a) £25,323 or £16,967, for persons resident in Greater London;

• (b) £22,020 or £14,753, for other persons.

• (5B) Regulations under subsection (5) may—

• (a) specify which annual limit applies in the case of—

• (i) different prescribed descriptions of single person;

• (ii) different prescribed descriptions of couple;

• (b) define “resident” for the purposes of this section;

• (c) provide for the rounding up or down of an amount produced by dividing the amount of the annual limit by the number of periods of a duration equal to the reference period in a year.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) Regulations under this section may not provide for any reduction to be made from a welfare benefit—

• (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 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;

• “single person” means a person who is not a member of a couple;

• “welfare benefit” means—bereavement allowance (see section 39B of the Social Security Contributions and Benefits Act 1992),child benefit (see section 141 of the Social Security Contributions and Benefits Act 1992),child tax credit (see section 1(1)(a) of the Tax Credits Act 2002),employment and support allowance (see section 1 of the Welfare Reform Act 2007), including income-related employment and support allowance (as defined in section 1(7) of the Welfare Reform Act 2007),housing benefit (see section 130 of the Social Security Contributions and Benefits Act 1992),incapacity benefit (see section 30A of the Social Security Contributions and Benefits Act 1992),income support (see section 124 of the Social Security Contributions and Benefits Act 1992),jobseeker's allowance (see section 1 of the Jobseekers Act 1995), including income-based jobseeker's allowance (as defined in section 1(4) of the Jobseekers Act 1995),maternity allowance under section 35 or 35B of the Social Security Contributions and Benefits Act 1992,severe disablement allowance (see section 68 of the Social Security Contributions and Benefits Act 1992),universal credit,widow's pension (see section 38 of the Social Security Contributions and Benefits Act 1992),widowed mother's allowance (see section 37 of the Social Security Contributions and Benefits Act 1992), orwidowed parent's allowance (see section 39A of the Social Security Contributions and Benefits Act 1992).

• (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Benefit cap: review

96A

• (1) The Secretary of State must at least once every five years review the sums specified in section 96(5A) to determine whether it is appropriate to increase or decrease any one or more of those sums.

• (2) The Secretary of State may, at any other time the Secretary of State considers appropriate, review the sums specified in section 96(5A) to determine whether it is appropriate to increase or decrease any one or more of those sums.

• (3) In carrying out a review, the Secretary of State must take into account—

• (a) the national economic situation, and

• (b) any other matters that the Secretary of State considers relevant.

• (4) After carrying out a review, the Secretary of State may, if the Secretary of State considers it appropriate, by regulations amend section 96(5A) so as to increase or decrease any one or more of the sums specified in section 96(5A).

• (5) Regulations under subsection (4) may provide for amendments of section 96(5A) to come into force—

• (a) on different days for different areas;

• (b) on different days for different cases or purposes.

• (6) Regulations under subsection (4) may make such transitional or transitory provision or savings as the Secretary of State considers necessary or expedient in connection with the coming into force of any amendment made by regulations under subsection (4).

• (7) Regulations under subsection (6) may in particular—

• (a) provide for section 96(5A) to have effect as if the amendments made by regulations under subsection (4) had not been made, in relation to such persons or descriptions of persons as are specified in the regulations or generally, until a time or times specified in a notice issued by the Secretary of State;

• (b) provide for the Secretary of State to issue notices under paragraph (a) specifying different times for different persons or descriptions of person;

• (c) make provision about the issuing of notices under paragraph (a), including provision for the Secretary of State to issue notices to authorities administering housing benefit that have effect in relation to persons specified, or persons of a description specified, in the notices.

• (8) Section 176 of the Social Security Administration Act 1992 (consultation with representative organisations) does not apply in relation to regulations under subsection (4).

• (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Benefit cap: supplementary

97

• (1) Regulations under section 96 or 96A may make different provision for different purposes or cases.

• (2) Regulations under section 96 or 96A must be made by statutory instrument.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) A statutory instrument containing ... regulations under section 96 is subject to annulment in pursuance of a resolution of either House of Parliament.

• (4A) A statutory instrument containing regulations under section 96A may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) In Schedule 2 to the Social Security Act 1998 (decisions against which no appeal lies) after paragraph 8 there is inserted—

(8A) A decision to apply the benefit cap in accordance with regulations under section 96 of the Welfare Reform Act 2012.

Claims and awards

Claims and awards

98

• (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 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) ”.

• (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”.

Powers to require information relating to claims and awards

99

• (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.

• (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 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 substituted “ section 5(1A) ”.

Payments

Payments to joint claimants

100

In section 5 of the Social Security Administration Act 1992 (regulations about claims and payments), after subsection (3A) there is inserted—

(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— (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.

Payments on account

101

• (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 determined or paid in full immediately, (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 not been brought into force, is repealed.

Appeals

Power to require consideration of revision before appeal

102

• (1) The Social Security Act 1998 is amended as follows.

• (2) In section 12 (appeals to First-tier Tribunal), in subsection (2)—

• (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 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— (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 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.

• (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 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.

• (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 150(4)(b)).

• (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;

• (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 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;

• (g) section 50(1A) of the Child Maintenance and Other Payments Act 2008.

Supersession of decisions of former appellate bodies

103

• (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.

• (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

Electronic communications

104

• (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 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 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—

(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. (6B) For the purposes of subsection (6A), 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 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.

Recovery of benefits

Recovery of benefit payments

105

• (1) In the Social Security Administration Act 1992, after section 71ZA there is inserted—

(71ZB) (1) The Secretary of State may recover any amount of the following paid in excess of entitlement— (a) universal credit, (b) jobseeker's allowance, (c) employment and support allowance, and (d) except in prescribed circumstances, housing credit (within the meaning of the State Pension Credit Act 2002). (2) An amount recoverable under this section is recoverable from— (a) the person to whom it was paid, or (b) such other person (in addition to or instead of the person to whom it was paid) as may be prescribed. (3) An amount paid in pursuance of a determination is not recoverable under this section unless the determination has been— (a) reversed or varied on an appeal, or (b) revised or superseded under section 9 or section 10 of the Social Security Act 1998, except where regulations otherwise provide. (4) Regulations may provide that amounts recoverable under this section are to be calculated or estimated in a prescribed manner. (5) Where an amount of universal credit is paid for the sole reason that a payment by way of prescribed income is made after the date which is the prescribed date for payment of that income, that amount is for the purposes of this section paid in excess of entitlement. (6) In the case of a benefit referred to in subsection (1) which is awarded to persons jointly, an amount paid to one of those persons may for the purposes of this section be regarded as paid to the other. (7) An amount recoverable under this section may (without prejudice to any other means of recovery) be recovered— (a) by deduction from benefit (section 71ZC); (b) by deduction from earnings (section 71ZD); (c) through the courts etc (section 71ZE); (d) by adjustment of benefit (section 71ZF). (71ZC) (1) An amount recoverable from a person under section 71ZB may be recovered by deducting the amount from payments of prescribed benefit. (2) Where an amount recoverable from a person under section 71ZB was paid to the person on behalf of another, subsection (1) authorises its recovery from the person by deduction— (a) from prescribed benefits to which the person is entitled, (b) from prescribed benefits paid to the person to discharge (in whole or in part) an obligation owed to that person by the person on whose behalf the recoverable amount was paid, or (c) from prescribed benefits paid to the person to discharge (in whole or in part) an obligation owed to that person by any other person. (3) Where an amount is recovered as mentioned in paragraph (b) of subsection (2), the obligation specified in that paragraph shall in prescribed circumstances be taken to be discharged by the amount of the deduction. (4) Where an amount is recovered as mentioned in paragraph (c) of subsection (2), the obligation specified in that paragraph shall in all cases be taken to be so discharged. (71ZD) (1) Regulations may provide for amounts recoverable under section 71ZB to be recovered by deductions from earnings. (2) In this section “earnings” has such meaning as may be prescribed. (3) Regulations under subsection (1) may include provision— (a) requiring the person from whom an amount is recoverable (“the beneficiary”) to disclose details of their employer, and any change of employer, to the Secretary of State; (b) requiring the employer, on being served with a notice by the Secretary of State, to make deductions from the earnings of the beneficiary and to pay corresponding amounts to the Secretary of State; (c) as to the matters to be contained in such a notice and the period for which a notice is to have effect; (d) as to how payment is to be made to the Secretary of State; (e) as to a level of earnings below which earnings must not be reduced; (f) allowing the employer, where the employer makes deductions, to deduct a prescribed sum from the beneficiary's earnings in respect of the employer's administrative costs; (g) requiring the employer to keep records of deductions; (h) requiring the employer to notify the Secretary of State if the beneficiary is not, or ceases to be, employed by the employer; (i) creating a criminal offence for non-compliance with the regulations, punishable on summary conviction by a fine not exceeding level 3 on the standard scale; (j) with respect to the priority as between a requirement to deduct from earnings under this section and— (i) any other such requirement; (ii) an order under any other enactment relating to England and Wales which requires deduction from the beneficiary's earnings; (iii) any diligence against earnings. (71ZE) (1) Where an amount is recoverable under section 71ZB from a person residing in England and Wales, the amount is, if the county court so orders, recoverable— (a) under section 85 of the County Courts Act 1984, or (b) otherwise as if it were payable under an order of the court. (2) Where an amount is recoverable under section 71ZB from a person residing in Scotland, the amount recoverable may be enforced as if it were payable under an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom in Scotland. (3) Any costs of the Secretary of State in recovering an amount of benefit under this section may be recovered by him as if they were amounts recoverable under section 71ZB. (4) In any period after the coming into force of this section and before the coming into force of section 62 of the Tribunals, Courts and Enforcement Act 2007, subsection (1)(a) has effect as if it read “by execution issued from the county court”. (71ZF) Regulations may for the purpose of the recovery of amounts recoverable under section 71ZB make provision— (a) for treating any amount paid to a person under an award which it is subsequently determined was not payable— (i) as properly paid, or (ii) as paid on account of a payment which it is determined should be or should have been made, and for reducing or withholding arrears payable by virtue of the subsequent determination; (b) for treating any amount paid to one person in respect of another as properly paid for any period for which it is not payable in cases where in consequence of a subsequent determination— (i) the other person is entitled to a payment for that period, or (ii) a third person is entitled in priority to the payee to a payment for that period in respect of the other person, and by reducing or withholding any arrears payable for that period by virtue of the subsequent determination. (71ZG) (1) The Secretary of State may recover any amount paid under section 5(1)(r) (payments on account). (2) An amount recoverable under this section is recoverable from— (a) the person to whom it was paid, or (b) such other person (in addition to or instead of the person to whom it was paid) as may be prescribed. (3) Regulations may provide that amounts recoverable under this section are to be calculated or estimated in a prescribed manner. (4) In the case of a payment on account of a benefit which is awarded to persons jointly, an amount paid to one of those persons may for the purposes of this section be regarded as paid to the other. (5) Sections 71ZC, 71ZD and 71ZE apply in relation to amounts recoverable under this section as to amounts recoverable under section 71ZB. (71ZH) (1) The Secretary of State may recover any amount paid by way of— (a) a payment under section 28 of the Welfare Reform Act 2012 (universal credit hardship payments) which is recoverable under that section, (b) a payment under section 19C of the Jobseekers Act 1995 (jobseeker's allowance hardship payments) which is recoverable under that section, (c) a payment of a jobseeker's allowance under paragraph 8 or 8A of Schedule 1 to that Act (exemptions), where the allowance is payable at a prescribed rate under paragraph 9 of that Schedule and is recoverable under that paragraph, (d) a payment of a jobseeker's allowance under paragraph 10 of that Schedule (claims yet to be determined etc) which is recoverable under that paragraph, or (e) a payment which is recoverable under section 6B(5A)(d) or (7)(d), 7(2A)(d) or (4)(d), 8(3)(aa), (4)(d) or 9(2A)(d) or (4)(d) of the Social Security Fraud Act 2001. (2) An amount recoverable under this section is recoverable from— (a) the person to whom it was paid, or (b) such other person (in addition to or instead of the person to whom it was paid) as may be prescribed. (3) Regulations may provide that amounts recoverable under this section are to be calculated or estimated in a prescribed manner. (4) Where universal credit or a jobseeker's allowance is claimed by persons jointly, an amount paid to one claimant may for the purposes of this section be regarded as paid to the other. (5) Sections 71ZC to 71ZF apply in relation to amounts recoverable under this section as to amounts recoverable under section 71ZB.

• (2) In section 71 of that Act (overpayments - general), in subsection (11)(ab), at the end there is inserted “excluding housing credit (see section 71ZB)”.

• (3) In section 115A of that Act (penalty as alternative to prosecution), in subsection (1), after “71” there is inserted “ 71ZB ”.

• (4) In section 115B of that Act (penalty as alternative to prosecution: colluding employers etc)—

• (a) for subsection (4) there is substituted—

(4) If the recipient of a notice under subsection (3) above agrees, in the specified manner, to pay the penalty— (a) the amount of the penalty shall be recoverable from the recipient by the Secretary of State or authority; and (b) no criminal proceedings shall be instituted against the recipient in respect of the conduct to which the notice relates. (4A) Sections 71ZC, 71ZD and 71ZE above apply in relation to amounts recoverable under subsection (4)(a) above as to amounts recoverable by the Secretary of State under section 71ZB above (and, where the notice is given by an authority administering housing benefit or council tax benefit, those sections so apply as if references to the Secretary of State were to that authority).