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Welfare Reform Act 2012

Type Public General Act

Publication 2012-03-08

Last updated 2026-07-06

State In force

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(b) give an account (in such manner as the Secretary of State considers appropriate) of the effect of those measures, so far as relating to the purposes mentioned in subsection (2).

Part 7 — Final

Repeals

147

Schedule 14 contains consequential repeals.

Financial provision

148

There shall be paid out of money provided by Parliament—

(a) sums paid by the Secretary of State by way of universal credit or personal independence payment;

(b) any other expenditure incurred in consequence of this Act by a Minister of the Crown or the Commissioners for Her Majesty's Revenue and Customs;

Extent

149

(1) This Act extends to England and Wales and Scotland only, subject as follows.

(2) The following provisions extend to England and Wales, Scotland and Northern Ireland—

(a) section 32 (power to make consequential and supplementary provision: universal credit);

(b) section 33 (abolition of benefits);

(d) section 92 (power to make consequential and supplementary provision: personal independence payment);

(e) section 126(1) to (13) (tax credits: transfer of functions etc);

(f) section 127(1) to (9) (information-sharing between Secretary of State and HMRC);

(g) this Part, excluding Schedule 14 (repeals).

(3) Sections 128 and 129 extend to England and Wales only.

(4) Any amendment or repeal made by this Act has the same extent as the enactment to which it relates.

Commencement

150

(1) The following provisions of this Act come into force on the day on which it is passed—

(a) section 76 (calculation of working tax credit);

(b) section 103 and Schedule 12 (supersession of decisions of former appellate bodies) (but see section 103(2));

(d) section 109 (recovery of fines etc by deductions from employment and support allowance) (but see section 109(3));

(e) section 126 (tax credits: transfer of functions etc);

(f) this Part, excluding Schedule 14 (repeals).

(2) The following provisions of this Act come into force at the end of the period of two months beginning with the day on which it is passed—

(a) section 50 (dual entitlement to employment and support allowance and jobseeker's allowance);

(b) section 60 and Part 6 of Schedule 14 (claimants dependent on drugs etc);

(c) sections 71 and 72 (social fund: purposes of discretionary payments and determination of amount or value of budgeting loan);

(d) section 107 (recovery of child benefit and guardian's allowance);

(e) section 111 (time limit for legal proceedings);

(f) section 127 and Part 13 of Schedule 14 (information-sharing between Secretary of State and HMRC);

(g) section 134 (information-sharing for social security or employment purposes etc);

(h) section 135 (functions of registration service);

(i) section 142 (exclusion of child support maintenance from individual voluntary arrangements);

(j) section 145 and Schedule 13 (Social Mobility and Child Poverty Commission);

(k) Part 2 of Schedule 14 (entitlement to jobseeker's allowance without seeking employment).

(3) The remaining provisions of this Act come into force on such day as the Secretary of State may by order made by statutory instrument appoint.

(4) An order under subsection (3) may—

(a) appoint different days for different purposes;

(b) appoint different days for different areas in relation to—

(i) any provision of Part 1 (universal credit) or of Part 1 of Schedule 14;

(ii) section 61 or 62 (entitlement to work: jobseeker's allowance and employment and support allowance);

(iii) any provision of Part 4 (personal independence payment) or of Part 9 of Schedule 14;

(iv) section 102 (consideration of revision before appeal);

(c) make such transitory or transitional provision, or savings, as the Secretary of State considers necessary or expedient.

Short title

151

This Act may be cited as the Welfare Reform Act 2012.

SCHEDULE 1 — Universal credit: supplementary regulation-making powers

Entitlement of joint claimants

1

Regulations may provide for circumstances in which joint claimants may be entitled to universal credit without each of them meeting all the basic conditions referred to in section 4.

Linking periods

2

Regulations may provide for periods of entitlement to universal credit which are separated by no more than a prescribed number of days to be treated as a single period.

Couples

3

(1) Regulations may provide—

(a) for a claim made by members of a couple jointly to be treated as a claim made by one member of the couple as a single person (or as claims made by both members as single persons);

(b) for claims made by members of a couple as single persons to be treated as a claim made jointly by the couple.

(2) Regulations may provide—

(a) where an award is made to joint claimants who cease to be entitled to universal credit as such by ceasing to be a couple, for the making of an award (without a claim) to either or each one of them—

(i) as a single person, or

(ii) jointly with another person;

(b) where an award is made to a single claimant who ceases to be entitled to universal credit as such by becoming a member of a couple, for the making of an award (without a claim) to the members of the couple jointly;

(c) for the procedure to be followed, and information or evidence to be supplied, in relation to the making of an award under this paragraph.

Calculation of capital and income

4

(1) Regulations may for any purpose of this Part provide for the calculation or estimation of—

(a) a person's capital,

(b) a person's earned and unearned income, and

(2) Regulations under sub-paragraph (1)(c) may include provision for the calculation to be made by reference to an average over a period, which need not include the assessment period concerned.

(3) Regulations under sub-paragraph (1) may—

(a) specify circumstances in which a person is to be treated as having or not having capital or earned or unearned income;

(b) specify circumstances in which income is to be treated as capital or capital as earned income or unearned income;

(d) provide that a person's capital is to be treated as yielding income at a prescribed rate;

(e) provide that the capital or income of one member of a couple is to be treated as that of the other member.

(4) Regulations under sub-paragraph (3)(a) may in particular provide that persons of a prescribed description are to be treated as having a prescribed minimum level of earned income.

(5) In the case of joint claimants the income and capital of the joint claimants includes (subject to sub-paragraph (6)) the separate income and capital of each of them.

(6) Regulations may specify circumstances in which capital and income of either of joint claimants is to be disregarded in calculating their joint capital and income.

Responsibility for children etc

5

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

(2) Regulations may for any purpose of this Part make provision about nominations of the responsible carer for a child (see section 19(6)(b)(ii)).

Vouchers

6

(1) This paragraph applies in relation to an award of universal credit where the calculation of the amount of the award includes, by virtue of any provision of this Part, an amount in respect of particular costs which a claimant may incur.

(2) Regulations may provide for liability to pay all or part of the award to be discharged by means of provision of a voucher.

(3) But the amount paid by means of a voucher may not in any case exceed the total of the amounts referred to in sub-paragraph (1) which are included in the calculation of the amount of the award.

(4) For these purposes a voucher is a means other than cash by which a claimant may to any extent meet costs referred to in sub-paragraph (1) of a particular description.

(5) A voucher may for these purposes—

(a) be limited as regards the person or persons who will accept it;

(b) be valid only for a limited time.

7

Regulations may provide that a claimant who—

(a) has a right to reside in the United Kingdom under the EU Treaties, and

(b) would otherwise fall within section 19, 20 or 21,

is to be treated as not falling within that section.

Good reason

8

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.

SCHEDULE 2 — Universal credit: amendments

Children Act 1989 (c. 41)

1

In the Children Act 1989, in the following provisions, after “in receipt” there is inserted “ of universal credit (except in such circumstances as may be prescribed), ”

(a) section 17(9) (provision of services to children in need, their families and others);

(b) section 17A(5)(b) (direct payments);

(d) paragraph 21(4) of Schedule 2 (local authority support for children and families).

Child Support Act 1991 (c. 48)

2

In the Child Support Act 1991, in paragraph 5 of Schedule 1 (maintenance calculations), as it has effect apart from section 1 of the Child Support, Pensions and Social Security Act 2000, in sub-paragraph (4) after “Where” there is inserted “ universal credit (in such circumstances as may be prescribed), ”.

3

The Social Security Administration Act 1992 is amended as follows.

4

In section 1 (entitlement to benefit dependent on claim), in subsection (4), before paragraph (a) there is inserted—

(za) universal credit;

5

In section 5 (regulations about claims and payments)—

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

(za) universal credit;

(b) in subsection (6), after “in relation to“ there is inserted “universal credit or”.

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

In section 74 (income support and other payments), in subsection (2)(b), after “by way of” there is inserted “ universal credit or ”.

8

In section 74A (payments of benefit where maintenance payments collected by Secretary of State), in subsection (7), after “applies are” there is inserted “ universal credit, ”.

9

In section 78 (recovery of social fund awards), in subsection (6)(d), after “receiving” there is inserted “ universal credit, ”.

10

In section 105 (failure to maintain - general), in subsection (1)(b), after “neglect” there is inserted “ universal credit, ”.

11

In section 106 (recovery of expenditure on benefit from person liable for maintenance), in subsections (1), (2), (3) and (4)(a) and (b), after “income support” there is inserted “ or universal credit ”.

12

In section 108 (reduction of expenditure on income support etc), in subsection (1)(a), after “income support” there is inserted “ or universal credit ”.

13

In section 109 (diversion of arrested earnings - Scotland), in subsection (1), after “in receipt of”, in both places, there is inserted “ universal credit, ”.

14

In section 121DA (interpretation of Part 6), in subsection (1), after paragraph (hi) there is inserted—

(hj) Part 1 of the Welfare Reform Act 2012;

15

In section 122B (supply of other government information for fraud prevention and verification), in subsection (3)(b) after “Welfare Reform Act 2007” there is inserted “ , Part 1 of the Welfare Reform Act 2012 ”.

16

(1) Section 122F (supply by rent officers of information relating to housing benefit) is amended as follows.

(2) In the heading, for “information relating to housing benefit” there is substituted “ benefit information ”.

(3) In subsection (1), for “housing benefit information” there is substituted “ benefit information ”.

(4) In subsection (3)(a) after “relating to” there is inserted “ universal credit ”.

(5) In subsection (4)—

(a) for “housing benefit information” there is substituted “ benefit information ”;

(b) after “relating to” there is inserted “ universal credit ”.

17

In section 124 (age, death and marriage), in subsection (1)—

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

(b) after that paragraph there is inserted—

(ad) of the provisions of Part 1 of the Welfare Reform Act 2012;

18

In section 125 (regulations as to notification of death), in subsection (1), after “2007” there is inserted “ , Part 1 of the Welfare Reform Act 2012 ”.

19

In section 126 (information from personal representatives), in subsection (1), after “receipt of” there is inserted “ universal credit ”.

20

In section 130 (duties of employers), in subsection (1), before paragraph (a) there is inserted—

(za) universal credit;

21

In section 132 (duties of employers - statutory maternity pay etc), in subsection (1), before paragraph (a) there is inserted—

(za) universal credit;

22

In section 150 (uprating)—

(a) in subsection (1) at the end there is inserted—

(n) specified in regulations under sections 9 to 12 of the Welfare Reform Act 2012;

(b) in subsection (7), after “2007” there is inserted “ or Part 1 of the Welfare Reform Act 2012 ”.

23

After section 159C there is inserted—

(159D) (1) Subject to such exceptions and conditions as may be prescribed, subsection (2) or (3) shall have effect where— (a) an award of universal credit is in force in favour of any person (“the recipient”), and (b) an alteration— (i) in any element of universal credit, (ii) in the recipient's benefit income, (iii) in any amount to be deducted in respect of earned income under section 8(3)(a) of the Welfare Reform Act 2012, (iv) in any component of a contribution-based jobseeker's allowance, (v) in any component of a contributory employment and support allowance, or (vi) in such other matters as may be prescribed, affects the computation of the amount of universal credit to which he is entitled. (2) Where, as a result of the alteration, the amount of universal credit to which the recipient is entitled is increased or reduced, then, as from the commencing date, the amount of universal credit payable in the case of the recipient under the award shall be the increased or reduced amount, without any further decision of the Secretary of State; and the award shall have effect accordingly. (3) Where, notwithstanding the alteration, the recipient continues on and after the commencing date to be entitled to the same amount by way of universal credit as before, the award shall continue in force accordingly. (4) Subsection (5) applies where a statement is made in the House of Commons by or on behalf of the Secretary of State which specifies— (a) in relation to any of the items referred to in subsection (1)(b)(i) to (vi), the amount of the alteration which he proposes to make by an order under section 150, 150A or 152 or by or under any other enactment, and (b) the date on which he proposes to bring the alteration in force (“the proposed commencing date”). (5) If, in a case where this subsection applies, an award of universal credit is made in favour of a person before the proposed commencing date and after the date on which the statement is made, the award— (a) may provide for the universal credit to be paid as from the proposed commencing date at a rate determined by reference to the amounts of the items referred to in subsection (1)(b)(i) to (vi) which will be in force on that date, or (b) may be expressed in terms of the amounts of those items in force at the date of the award. (6) In this section— - “alteration”— 1. in relation to any element of universal credit, means its alteration by or under any enactment; 2. in relation to a person's benefit income, means the alteration of any of the sums referred to in section 150 or 150A by any enactment or by an order under section 150, 150A or 152 to the extent that any such alteration affects the amount of his benefit income; 3. in relation to any component of a contribution-based jobseeker's allowance or a contributory employment and support allowance, means its alteration by or under any enactment; 4. in relation to any other matter, has such meaning as may be prescribed; - “benefit income”, in relation to a person, means so much of his income as consists of benefit under the Contributions and Benefits Act or personal independence payment; - “the commencing date”, in relation to an alteration, means the date on which the alteration comes into force in relation to the recipient; - “component”— 1. in relation to contribution-based jobseeker's allowance, means any of the sums specified in regulations under the Jobseekers Act 1995 which are relevant in calculating the amount payable by way of a jobseeker's allowance; 2. in relation to a contributory employment and support allowance, means any of the sums specified in regulations under Part 1 of the Welfare Reform Act 2007 which are relevant in calculating the amount payable by way of such an allowance; - “element”, in relation to universal credit, means any of the amounts specified in regulations under sections 9 to 12 of the Welfare Reform Act 2012 which are included in the calculation of an award of universal credit.

24

After section 160B there is inserted—

(160C) (1) This section applies where— (a) an award of universal credit is in force in favour of a person (“the recipient”), and (b) an element has become applicable, or applicable at a particular rate, because he or some other person has reached a particular age (“the qualifying age”). (2) If, as a result of the recipient or other person reaching the qualifying age, the recipient becomes entitled to an increased amount of universal credit, the amount payable to or for him under the award shall, as from the day on which he becomes so entitled, be that increased amount, without any further decision of the Secretary of State; and the award shall have effect accordingly. (3) Subsection (2) does not apply where, in consequence of the recipient or other person reaching the qualifying age, a question arises in relation to the recipient's entitlement to— (a) a benefit under the Contribution and Benefits Act, or (b) personal independence payment. (4) Subsection (2) does not apply where, in consequence of the recipient or other person reaching the qualifying age, a question arises in relation to the recipient's entitlement to universal credit, other than— (a) the question whether the element concerned, or any other element, becomes or ceases to be applicable, or applicable at a particular rate, in the recipient's case, and (b) the question whether, in consequence, the amount of his universal credit falls to be varied. (5) In this section, “element”, in relation to universal credit, means any of the amounts specified in regulations under sections 9 to 12 of the Welfare Reform Act 2012 which are included in the calculation of an award of universal credit.

25

(1) Section 165 (adjustments between National Insurance Fund and Consolidated Fund) is amended as follows.

(2) In subsection (1)(a)(iii), after “Act” there is inserted “ , universal credit ”.

(3) In subsection (6)(a), for “or section 27 of the Welfare Reform Act 2007” there is substituted “ section 27 of the Welfare Reform Act 2007 or section 148 of the Welfare Reform Act 2012 ”.

26

(1) In section 170 (Social Security Advisory Committee), subsection (5) is amended as follows.

(2) In the definition of “the relevant enactments”—

(a) in paragraph (af), for the words from “sections 68” to “to that Act” there is substituted “sections 69 and 70 of the Child Support, Pensions and Social Security Act 2000;“;

(b) after paragraph (aj) there is inserted—

(ak) the provisions of Part 1 of the Welfare Reform Act 2012;

(3) In the definition of “the relevant Northern Ireland enactments”—

(a) in paragraph (af), for the words from “sections 68” to “to that Act” there is substituted “sections 69 and 70 of the Child Support, Pensions and Social Security Act 2000;“;

(b) after paragraph (aj) there is inserted—

(ak) any provisions in Northern Ireland which correspond to the provisions of Part 1 of the Welfare Reform Act 2012;

27

(1) Section 179 (reciprocal agreements) is amended as follows.

(2) In subsection (3)(a), after “2007” there is inserted “ , Part 1 of the Welfare Reform Act 2012 ”.

(3) In subsection (4), after paragraph (af) there is inserted—

(ag) to Part 1 of the Welfare Reform Act 2012; and

(4) In subsection (5), before paragraph (a) there is inserted—

(za) universal credit;

28

In section 180 (payment of travelling expenses), in paragraphs (a) and (b)(i), after “2007” there is inserted “ , Part 1 of the Welfare Reform Act 2012 ”.

29

In section 182B (information about postal redirection), in subsection (5)(b), after “1995” there is inserted “ , Part 1 of the Welfare Reform Act 2012 ”.

30

In section 187 (inalienability), in subsection (1), before paragraph (a) there is inserted—

(za) universal credit;

31

In section 191 (interpretation), in the definition of “benefit”, after “includes” there is inserted “ universal credit, ”.

Local Government Finance Act 1992 (c. 14)

32

The Local Government Finance Act 1992 is amended as follows.

33

(1) Schedule 4 is amended as follows.

(2) In paragraph 6—

(a) in sub-paragraph (1), after “entitled to“ there is inserted “universal credit”;

(b) in sub-paragraph (2)(b), after “by way of“ there is inserted “universal credit”.

(3) In paragraph 12(1)—

(a) after paragraph (a) there is inserted—

(aa) deductions from universal credit may be resorted to more than once;

(b) in paragraph (d), after “attachment of earnings” there is inserted “deductions from universal credit“.

34

In Schedule 8, in paragraph 6—

(a) in sub-paragraph (1), after “entitled to“ there is inserted “universal credit”;

(b) in sub-paragraph (2)(b), after “by way of“ there is inserted “universal credit”.

Jobseekers Act 1995 (c. 18)

35

In section 2 of the Jobseekers Act 1995, in subsection (3C) (as inserted by section 12(5) of the Welfare Reform Act 2009), in the definition of “benefit”, before paragraph (a) there is inserted—

(za) universal credit,

Housing Act 1996 (c. 52)

36

In section 122 of the Housing Act 1996 (rent officers), in the heading and in subsection (1), after “with” there is inserted “ universal credit, ”.

Education Act 1996 (c. 56)

37

The Education Act 1996 is amended as follows.

38

In section 457 (charges and remissions policies) in subsection (4)(b), before sub-paragraph (i) there is inserted—

(ai) in receipt of universal credit in such circumstances as may be prescribed for the purposes of this paragraph,

39

In section 512ZB (provision of free school lunches and milk: eligibility to request free milk)—

(a) in subsection (4)(a), before sub-paragraph (i) there is inserted—

(ai) in receipt of universal credit in such circumstances as may be prescribed for the purposes of this paragraph, or

(b) in subsection (4)(b), before sub-paragraph (i) there is inserted—

(ai) in receipt of universal credit in such circumstances as may be prescribed for the purposes of this paragraph, or

40

The Social Security (Recovery of Benefits) Act 1997 is amended as follows.

41

In section 29 (general interpretation), in the definition of “benefit”, after “means” there is inserted “ universal credit ”.

42

In the table in Schedule 2 (calculation of compensation payment), in the section relating to compensation for earnings lost during the relevant period, at the top of the second column insert “ Universal credit ”.

43

The Social Security Act 1998 (decisions and appeals) is amended as follows.

44

In section 2 (use of computers), in subsection (2)—

(a) in paragraph (i), the final “or” is repealed;

(b) after paragraph (j) there is inserted—

(k) Part 1 of the Welfare Reform Act 2012;

45

In section 8 (decisions by Secretary of State)—

(a) in subsection (3), after paragraph (a) there is inserted—

(aa) universal credit;

(b) in subsection (4), for “or Part 1 of the Welfare Reform Act 2007” there is substituted “ , Part 1 of the Welfare Reform Act 2007, Part 1 of the Welfare Reform Act 2012 ”.

46

In section 11 (regulations with respect to decisions), in subsection (3), for “and Part 1 of the Welfare Reform Act 2007” there is substituted “ , Part 1 of the Welfare Reform Act 2007, Part 1 of the Welfare Reform Act 2012 ”.

47

In section 27 (restriction on entitlement in cases of error), in subsection (7), in the definition of “benefit” for paragraph (f) there is substituted—

(f) universal credit

48

In section 28(3) (correction of errors in decisions etc)—

(a) in paragraph (f), the final “or” is repealed;

(b) after paragraph (g) there is inserted—

(h) Part 1 of the Welfare Reform Act 2012;

49

In section 39 (interpretation), in subsection (1), before the definition of “health care professional” there is inserted—

“claimant”, in relation to a couple jointly claiming universal credit, means the couple or either member of the couple;

50

(1) Schedule 2 (decisions against which no appeal lies) is amended as follows.

(2) In paragraph 6(b), at the end there is inserted

or (v) section 159D(1)(b) of that Act (universal credit).

(3) After paragraph 7 there is inserted—

(7A) A decision as to the amount of benefit to which a person is entitled, where it appears to the Secretary of State that the amount is determined by the recipient's entitlement to an increased amount of universal credit in the circumstances referred to in section 160C(2) of the Administration Act.

51

In Schedule 3 (decisions against which an appeal lies), after paragraph 3 there is inserted—

(3A) A decision as to the amount of a relevant benefit that is payable to a person by virtue of regulations under section 6B, 7, 8 or 9 of the Social Security Fraud Act 2001.

Immigration and Asylum Act 1999 (c. 33)

52

The Immigration and Asylum Act 1999 is amended as follows.

53

In section 97 (provision of support: supplemental), in subsection (5)—

(a) before paragraph (a) there is inserted—

(za) to such portion of the maximum amount of an award of universal credit under section 8(1) of the Welfare Reform Act 2012, or

(b) in paragraph (b) after “components” there is inserted “ or elements ”.

54

In section 115(1) (exclusion from benefits of persons subject to immigration control) after “is entitled” there is inserted “ to universal credit under Part 1 of the Welfare Reform Act 2012 or ”.

55

In section 69 of the Child Support, Pensions and Social Security Act 2000, in subsection (1)(a), after “both” there is inserted “ , universal credit ”.

56

The Social Security Fraud Act 2001 is amended as follows.

57

In section 6A (definitions), in subsection (1), in the definition of “disqualifying benefit”, at the beginning there is inserted—

(za) any benefit under Part 1 of the Welfare Reform Act 2012 (universal credit) or under any provision having effect in Northern Ireland corresponding to that Part;

58

(1) Section 6B (loss of benefit in case of conviction, penalty or caution for benefit offence) is amended as follows.

(2) In subsection (5), for “(6)” there is substituted “ (5A) ”.

(3) After subsection (5) there is inserted—

(5A) The Secretary of State may by regulations provide that, where the sanctionable benefit is universal credit, the benefit shall be payable, during the whole or a part of any period comprised in the disqualification period, as if one or more of the following applied— (a) the amount payable were reduced in such manner as may be prescribed; (b) the benefit were payable only if there is compliance by the offender with such obligations with respect to the provision of information as may be imposed by the regulations; (c) the benefit were payable only if the circumstances are otherwise such as may be prescribed; (d) any amount of the benefit payable in prescribed circumstances were recoverable by the Secretary of State.

(4) In subsection (7), after paragraph (c) there is inserted—

(d) any amount of the allowance payable in prescribed circumstances were recoverable by the Secretary of State.

59

(1) Section 7 (loss of benefit for second or subsequent conviction of benefit offence) is amended as follows.

(2) In subsection (2), for “(3)” there is substituted “ (2A) ”.

(3) After subsection (2) there is inserted—

(2A) The Secretary of State may by regulations provide that, where the sanctionable benefit is universal credit, the benefit shall be payable, during the whole or a part of any period comprised in the disqualification period, as if one or more of the following applied— (a) the amount payable were reduced in such manner as may be prescribed; (b) the benefit were payable only if there is compliance by the offender with such obligations with respect to the provision of information as may be imposed by the regulations; (c) the benefit were payable only if the circumstances are otherwise such as may be prescribed; (d) any amount of the benefit payable in prescribed circumstances were recoverable by the Secretary of State.

(4) In subsection (4), after paragraph (c) there is inserted—

(d) any amount of the allowance payable in prescribed circumstances were recoverable by the Secretary of State.

60

(1) Section 8 (effect of offence on joint-claim jobseeker's allowance) is amended as follows.

(2) In subsection (3)—

(a) for “but” at the end of paragraph (a) there is substituted “ and ”;

(b) after paragraph (a) there is inserted—

(aa) shall be payable in the couple's case as if any amount of the allowance payable in prescribed circumstances were recoverable by the Secretary of State; but

(3) In subsection (4), after paragraph (c) there is inserted—

(d) any amount of the allowance payable in prescribed circumstances were recoverable by the Secretary of State.

(4) In the opening words to subsections (7) and (8) the words “by virtue of any regulations” are repealed.

61

(1) Section 9 (effect of offence on benefits for members of offender's family) is amended as follows.

(2) In subsection (1), before paragraph (a) there is inserted—

(za) universal credit;

(3) In subsection (2), for “or” at the end of paragraph (b) there is substituted “ and ”.

(4) After subsection (2) there is inserted—

(2A) In relation to cases in which the benefit is universal credit, the provision that may be made by virtue of subsection (2) is provision that, in the case of the offender's family member, any universal credit shall be payable, during the whole or a part of any period comprised in the relevant period, as if one or more of the following applied— (a) the amount payable were reduced in such manner as may be prescribed; (b) the benefit were payable only if there is compliance by the 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 benefit were payable only if the circumstances are otherwise such as may be prescribed; (d) any amount of the benefit payable in prescribed circumstances were recoverable by the Secretary of State.

(5) In subsection (4), after paragraph (c) there is inserted—

(d) any amount of the allowance payable in prescribed circumstances were recoverable by the Secretary of State.

62

In section 10(3) (power to supplement and mitigate loss of benefit provisions) after paragraph (bc) there is inserted—

(bd) any benefit under Part 1 of the Welfare Reform Act 2012 (universal credit) or under any provision having effect in Northern Ireland corresponding to that Part;

63

(1) In section 11 (loss of benefit regulations), subsection (3) is amended as follows.

(2) In paragraph (c)—

(a) for “6B(7)” there is substituted “ 6B(5A), (7) ”;

(b) for “7(4)” there is substituted “ 7(2A), (4) ”;

(3) In paragraph (d) at the end there is inserted “or (aa)”.

State Pension Credit Act 2002 (c. 16)

64

In section 4 of the State Pension Credit Act 2002 (exclusions), after subsection (1) there is inserted—

(1A) A claimant is not entitled to state pension credit if he is a member of a couple the other member of which has not attained the qualifying age.

Welfare Reform Act 2007 (c. 5)

65

In Schedule 1 to the Welfare Reform Act 2007 (employment and support allowance: additional conditions), in paragraph 1(5), before paragraph (a) there is inserted—

(za) universal credit,

SCHEDULE 3 — Abolition of benefits: consequential amendments

1

The Social Security Contributions and Benefits Act 1992 is amended as follows.

2

In section 22 (earnings factors), in subsections (2)(a) and (5), for “a contributory” there is substituted “an“.

3

In section 150 (interpretation of Part 10), in subsection (2), in the definition of “qualifying employment and support allowance”, for “a contributory allowance” there is substituted “ an employment and support allowance ”.

4

The Social Security Administration Act 1992 is amended as follows.

5

In section 7 (relationship between benefits), in subsection (3), for “subsections (1) and (2)” there is substituted “ subsection (1) ”.

6

In section 73 (overlapping benefits), in subsections (1) and (4)(c), for “a contributory” there is substituted “an“.

7

In section 159B (effect of alterations affecting state pension credit), for “a contributory”, wherever occurring, there is substituted “ an ”.

8

In section 159D (as inserted by Schedule 2 to this Act) (effect of alterations affecting universal credit), for “a contributory“, wherever occurring, there is substituted “ an ”.

Immigration and Asylum Act 1999 (c. 33)

9

In the Immigration and Asylum Act 1999, in section 115 (exclusion from benefits of persons subject to immigration control)—

(a) in subsection (1), after paragraph (ha) there is inserted “or”;

(b) in subsection (2)(b) for “(a) to (j)“ substitute “ (a) to (i) ”.

10

The Child Support, Pensions and Social Security Act 2000 is amended as follows.

11

(1) Section 69 (discretionary financial assistance with housing) is amended as follows.

(2) In subsection (1)—

(a) for “relevant authorities” there is substituted “ local authorities ”;

(b) in paragraph (a), the words from “housing benefit” to “both,” are repealed.

(3) In subsection (2)—

(a) in paragraph (b), for “relevant authority“ there is substituted “ local authority ”;

(b) in paragraph (e), for “relevant authorities” there is substituted “ local authorities ”;

(4) In subsection (5), for “relevant authorities“ there is substituted “ local authorities ”.

(5) In subsection (7), for the definition of “relevant authority” there is substituted—

“local authority” has the meaning given by section 191 of the Social Security Administration Act 1992.

12

(1) Section 70 (grants towards cost of discretionary housing payments) is amended as follows.

(2) In subsection (1), after “payments” there is inserted “ (“grants”) ”.

(3) For subsection (2) there is substituted—

(2) The amount of a grant under this section shall be determined in accordance with an order made by the Secretary of State with the consent of the Treasury.

(4) In subsection (8)—

(a) for the definition of “relevant authority“ there is substituted—

“local authority” has the same meaning as in section 69;

(b) the definition of “subsidy” is repealed.

13

After section 70 there is inserted—

(70A) (1) A grant under section 70 shall be made by the Secretary of State in such instalments, at such times, in such manner and subject to such conditions as to claims, records, certificates, audit or otherwise as may be provided by order of the Secretary of State with the consent of the Treasury. (2) The order may provide that if a local authority has not complied with the conditions specified in it within such period as may be specified in it, the Secretary of State may estimate the amount of grant under section 70 payable to the authority and employ for that purpose such criteria as he considers relevant. (3) Where a grant under section 70 has been paid to a local authority and it appears to the Secretary of State that— (a) the grant has been overpaid, or (b) there has been a breach of any condition specified in an order under this section, he may recover from the authority the whole or such part of the payment as he may determine. (4) Without prejudice to the other methods of recovery, a sum recoverable under this section may be recovered by withholding or reducing subsidy. (5) An order under this section may be made before, during or after the end of the period to which it relates. (6) In this section “local authority“ has the same meaning as in section 69. (7) Section 70(5) to (7) applies to orders under this section.

Capital Allowances Act 2001 (c. 2)

14

In Schedule A1 to the Capital Allowances Act 2001 (first-year tax credits), in paragraph 17(1)(b) after “sick pay,” there is inserted “ or ”.

15

The Social Security Fraud Act 2001 is amended as follows.

16

In section 6B (loss of benefit for conviction etc), in subsection (5), for “to (10)” there is substituted “ and (8) ”.

17

In section 7 (loss of benefit for repeated conviction etc), in subsection (2), for “to (5)” there is substituted “ and (4A) ”.

18

In section 11 (regulations), in subsection (3)(c), for the words from “section” to the end there is substituted “ section 6B(5A) or (8), 7(2A) or (4A) or 9(2A) or (4A) ”.

Commissioners for Revenue and Customs Act 2005 (c. 11)

19

The Commissioners for Revenue and Customs Act 2005 is amended as follows.

20

In section 5 (initial functions), in subsection (1), after paragraph (a) there is inserted “and”.

21

In section 44 (payment into Consolidated Fund), in subsection (3), after paragraph (b) there is inserted “and“.

Welfare Reform Act 2007 (c. 5)

22

The Welfare Reform Act 2007 is amended as follows.

23

In section 1 (employment and support allowance), in subsection (3)(d), at the end there is inserted “and”.

24

In section 2 (amount of contributory allowance), in subsection (1), for “In the case of a contributory allowance, the amount payable“ there is substituted “ The amount payable by way of an employment and support allowance ”.

25

(1) Section 27 (financial provisions) is amended as follows.

(2) In subsection (1), for the words from “so much of” to the end there is substituted “ any sums payable by way of employment and support allowance ”.

(3) In subsection (3), for “contributory” there is substituted “ employment and support ”.

26

In each of the following provisions, for “a contributory allowance” there is substituted “ an employment and support allowance ”

(a) section 1A(1), (3), (4), (5) and (6) (as inserted by section 51 of this Act);

(b) section 1B(1) (as inserted by section 52 of this Act);

(d) section 18(4);

(e) section 20(2), (3)(a), (b) and (c), (4), (5)(a), (b) and (c), (6), (7)(a), (b) and (c);

(f) in Schedule 1, paragraphs 1(5)(d) and 3(2)(a);

(g) in Schedule 2, paragraphs 6 and 7(2)(d).

Corporation Tax Act 2009 (c. 4)

27

The Corporation Tax Act 2009 is amended as follows.

28

In section 1059 (relief relating to SME R&D: total amount of company's PAYE and NICs liabilities), in subsection (5) after “sick pay” there is inserted “ or ”.

29

In section 1108 (relief relating to vaccine research etc: total amount of company's PAYE and NICs liabilities), in subsection (5) after “sick pay” there is inserted “ or ”.

SCHEDULE 4 — Housing credit element of state pension credit

Part 1 — Amendments to State Pension Credit Act 2002

State Pension Credit Act 2002 (c. 16)

1

The State Pension Credit Act 2002 is amended as follows.

2

In section 1 (entitlement), in subsection (2)(c), at the end there is inserted

or (iii) the conditions in section 3A(1) and (2) (housing credit).

3

In that section, in subsection (3)—

(a) after paragraph (b) there is inserted

or (c) to a housing credit, calculated in accordance with section 3A, if he satisfies the conditions in subsections (1) and (2) of that section,

(b) for the words from “(or to both)” to the end there is substituted “ (or to more than one of them, if he satisfies the relevant conditions) ”.

4

After section 3 there is inserted—

(3A) (1) The first of the conditions mentioned in section 1(2)(c)(iii) is that the claimant is liable to make payments in respect of the accommodation he occupies as his home. (2) The second of the conditions mentioned in section 1(2)(c)(iii) is that the claimant's capital and income are such that the amount of the housing credit payable (if he were entitled to it) would not be less than a prescribed amount. (3) Where the claimant is entitled to a housing credit, the amount of the housing credit shall be an amount calculated in or determined under regulations (which may be zero). (4) For the purposes of subsection (1)— (a) the accommodation must be in Great Britain; (b) the accommodation must be residential accommodation; (c) it is immaterial whether the accommodation consists of the whole or part of a building and whether or not it comprises separate and self-contained premises. (5) Regulations may make provision as to— (a) the meaning of “payments in respect of accommodation” for the purposes of this section (and, in particular, as to the extent to which such payments include mortgage payments); (b) circumstances in which a claimant is to be treated as liable or not liable to make such payments; (c) circumstances in which a claimant is to be treated as occupying or not occupying accommodation as his home (and, in particular, for temporary absences to be disregarded); (d) circumstances in which land used for the purposes of any accommodation is to be treated as included in the accommodation. (6) Regulations under this section may make different provision for different areas.

5

In section 7 (fixing of retirement provision for assessed income period), at the end there is inserted—

(10) Regulations may prescribe circumstances in which subsection (3) does not apply for the purposes of determining the amount of a housing credit to which the claimant is entitled.

6

In section 12 (polygamous marriages), in subsection (2)(b), after “savings credit” there is inserted “ or housing credit ”.

7

In section 17 (interpretation), in subsection (1), after the definition of “guarantee credit” there is inserted—

“housing credit” shall be construed in accordance with sections 1 and 3A;

(8) In Schedule 2 (consequential amendments etc), paragraph 9(5)(a) is repealed.

Part 2 — Amendments to other Acts

9

The Social Security Administration Act 1992 is amended as follows.

10

In section 5 (regulations about claims and payments) in subsection (6), before “subsection” there is inserted “or housing credit (within the meaning of the State Pension Credit Act 2002)”.

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

(1) Section 122F (supply by rent officers of information) is amended as follows.

(2) In subsection (3)(a) at the end of the words in brackets there is inserted “or housing credit”.

(3) In subsection (4) at the end there is inserted “or housing credit”.

(4) After that subsection there is inserted—

(5) In this section “housing credit“ has the same meaning as in the State Pension Credit Act 2002

Housing Act 1996 (c. 52)

13

(1) Section 122 of the Housing Act 1996 (rent officers) is amended as follows.

(2) In the heading, at the end there is inserted “and housing credit”.

(3) In subsection (1), at the end there is inserted “or housing credit (within the meaning of the State Pension Credit Act 2002)“.

14

In section 69 of the Child Support, Pensions and Social Security Act 2000 (discretionary financial assistance with housing), in subsection (1)(a), after “universal credit” there is inserted “ or housing credit (within the meaning of the State Pension Credit Act 2002) ”.

SCHEDULE 5 — Universal credit and other working-age benefits

General

1

(1) In this Schedule “relevant benefit“ means—

(a) jobseeker's allowance, or

(b) employment and support allowance.

(2) In this Schedule “work-related requirement“ means—

(a) a work-related requirement within the meaning of this Part,

(b) a work-related requirement within the meaning of the Jobseekers Act 1995, or

(3) In this Schedule “sanction” means a reduction of benefit under—

(a) section 26 or 27,

(b) section 6J or 6K of the Jobseekers Act 1995, or

Dual entitlement

2

(1) Regulations may make provision as to the amount payable by way of a relevant benefit where a person is entitled to that benefit and universal credit.

(2) Regulations under sub-paragraph (1) may in particular provide for no amount to be payable by way of a relevant benefit.

(3) Regulations may, where a person is entitled to a relevant benefit and universal credit—

(a) make provision as to the application of work-related requirements;

(b) make provision as to the application of sanctions.

(4) Provision under sub-paragraph (3)(a) includes in particular—

(a) provision securing that compliance with a work-related requirement for a relevant benefit is to be treated as compliance with a work-related requirement for universal credit;

(b) provision disapplying any requirement on the Secretary of State to impose, or a person to comply with, a work-related requirement for a relevant benefit or universal credit.

(5) Provision under sub-paragraph (3)(b) includes in particular—

(a) provision for the order in which sanctions are to be applied to awards of relevant benefit and universal credit;

(b) provision to secure that the application of a sanction to an award of a relevant benefit does not result in an increase of the amount of an award of universal credit.

Movement between working-age benefits

3

Regulations may provide—

(a) in a case where a person ceases to be entitled to universal credit and becomes entitled to a relevant benefit, for a sanction relating to the award of universal credit to be applied to the award of the relevant benefit;

(b) in a case where a person ceases to be entitled to a relevant benefit and becomes entitled to universal credit, for a sanction relating to the award of the relevant benefit to be applied to the award of universal credit;

(c) in a case where a person ceases to be entitled to one relevant benefit and becomes entitled to the other, for a sanction relating to the award of the former to apply to the award of the latter.

Hardship payments

4

Regulations under section 28 (hardship payments) may be made in relation to a person whose award of universal credit is reduced by virtue of regulations under paragraph 2(3)(b) or 3(b) as in relation to a person whose award is reduced under section 26 or 27.

Earnings tapers

5

In section 4 of the Jobseekers Act 1995 (amount payable by way of a jobseeker's allowance), in subsection (1)(b)—

(a) after “making” there is inserted—

(i) deductions in respect of earnings calculated in the prescribed manner (which may include multiplying some or all earnings by a prescribed percentage), and (ii)

(b) “earnings,”(before “pension payments“) is repealed.

6

(1) Section 2 of the Welfare Reform Act 2007 (amount of contributory allowance) is amended as follows.

(2) In subsection (1)(c), after “making” there is inserted—

(i) deductions in respect of earnings calculated in the prescribed manner (which may include multiplying some or all earnings by a prescribed percentage), and (ii)

(3) At the end there is inserted—

(6) In subsection (1)(c)(i) the reference to earnings is to be construed in accordance with sections 3, 4 and 112 of the Social Security Contributions and Benefits Act 1992.

SCHEDULE 6 — Migration to universal credit

General

1

(1) Regulations may make provision for the purposes of, or in connection with, replacing existing benefits with universal credit.

(2) In this Schedule “existing benefit“ means—

(a) a benefit abolished under section 33(1);

(b) any other prescribed benefit.

(3) In this Schedule “appointed day” means the day appointed for the coming into force of section 1.

Claims before the appointed day

2

(1) The provision referred to in paragraph 1(1) includes—

(a) provision for a claim for universal credit to be made before the appointed day for a period beginning on or after that day;

(b) provision for a claim for universal credit made before the appointed day to be treated to any extent as a claim for an existing benefit;

(c) provision for a claim for an existing benefit made before the appointed day to be treated to any extent as a claim for universal credit.

(2) The provision referred to in paragraph 1(1) includes provision, where a claim for universal credit is made (or is treated as made) before the appointed day, for an award on the claim to be made in respect of a period before the appointed day (including provision as to the conditions of entitlement for, and amount of, such an award).

Claims after the appointed day

3

(1) The provision referred to in paragraph 1(1) includes—

(a) provision permanently or temporarily excluding the making of a claim for universal credit after the appointed day by—

(i) a person to whom an existing benefit is awarded, or

(ii) a person who would be entitled to an existing benefit on making a claim for it;

(b) provision temporarily excluding the making of a claim for universal credit after the appointed day by any other person;

(d) provision for a claim for universal credit made after the appointed day to be treated to any extent as a claim for an existing benefit;

(e) provision for a claim for an existing benefit made after the appointed day to be treated to any extent as a claim for universal credit.

(2) The provision referred to in paragraph 1(1) includes provision, where a claim for universal credit is made (or is treated as made) after the appointed day, for an award on the claim to be made in respect of a period before the appointed day (including provision as to the conditions of entitlement for, and amount of, such an award).

Awards

4

(1) The provision referred to in paragraph 1(1) includes—

(a) provision for terminating an award of an existing benefit;

(b) provision for making an award of universal credit, with or without application, to a person whose award of existing benefit is terminated.

(2) The provision referred to in sub-paragraph (1)(b) includes—

(a) provision imposing requirements as to the procedure to be followed, information to be supplied or assessments to be undergone in relation to an award by virtue of that sub-paragraph or an application for such an award;

(b) provision as to the consequences of failure to comply with any such requirement;

(i) provision temporarily or permanently disapplying, or otherwise modifying, conditions of entitlement to universal credit in relation to the award;

(ii) provision temporarily or permanently disapplying, or otherwise modifying, any requirement under this Part for a person to be assessed in respect of capability for work or work-related activity;

(d) provision as to the amount of such an award;

(e) provision that fulfilment of any condition relevant to entitlement to an award of an existing benefit, or relevant to the amount of such an award, is to be treated as fulfilment of an equivalent condition in relation to universal credit.

(3) Provision under sub-paragraph (2)(d) may secure that where an award of universal credit is made by virtue of sub-paragraph (1)(b)—

(a) the amount of the award is not less than the amount to which the person would have been entitled under the terminated award, or is not less than that amount by more than a prescribed amount;

(b) if the person to whom it is made ceases to be entitled to universal credit for not more than a prescribed period, the gap in entitlement is disregarded in calculating the amount of any new award of universal credit.

5

(1) The provision referred to in paragraph 1(1) includes—

(a) provision relating to the application of work-related requirements for relevant benefits;

(b) provision relating to the application of sanctions.

(2) The provision referred to in sub-paragraph (1)(a) includes—

(a) provision that a claimant commitment for a relevant benefit is to be treated as a claimant commitment for universal credit;

(b) provision that a work-related requirement for a relevant benefit is treated as a work-related requirement for universal credit;

(c) provision for anything done which is relevant to compliance with a work-related requirement for a relevant benefit to be treated as done for the purposes of compliance with a work-related requirement for universal credit;

(d) provision temporarily disapplying any provision of this Part in relation to work-related requirements for universal credit.

(3) The provision referred to in sub-paragraph (1)(b) includes—

(a) provision for a sanction relevant to an award of a relevant benefit to be applied to an award of universal credit;

(b) provision for anything done which is relevant to the application of a sanction for a relevant benefit to be treated as done for the purposes of the application of a sanction for universal credit;

(4) In this paragraph—

“relevant benefit” means—jobseeker's allowance,employment and support allowance, andincome support;

“work-related requirement” means—for universal credit, a work-related requirement within the meaning of this Part;for jobseeker's allowance, a requirement imposed—by virtue of regulations under section 8 or 17A of the Jobseekers Act 1995,by a jobseeker's direction (within the meaning of section 19A of that Act),by virtue of regulations under section 2A, 2AA or 2D of the Social Security Administration Act 1992, orby a direction under section 2F of that Act;for employment and support allowance, a requirement imposed—by virtue of regulations under section 8, 9, 11, 12 or 13 of the Welfare Reform Act 2007,by a direction under section 15 of that Act,by virtue of regulations under section 2A, 2AA or 2D of the Social Security Administration Act 1992, orby a direction under section 2F of that Act;for income support, a requirement imposed—by virtue of regulations under section 2A, 2AA or 2D of the Social Security Administration Act 1992, orby a direction under section 2F of that Act;

“sanction” means a reduction of benefit under—section 26 or 27 above,section 19, 19A or 19B of the Jobseekers Act 1995,section 11, 12 or 13 of the Welfare Reform Act 2007, orsection 2A, 2AA or 2D of the Social Security Administration Act 1992.

Tax credits

6

In relation to the replacement of working tax credit and child tax credit with universal credit, the provision referred to in paragraph 1(1) includes—

(a) provision modifying the application of the Tax Credits Act 2002 (or of any provision made under it);

(b) provision for the purposes of recovery of overpayments of working tax credit or child tax credit (including in particular provision for treating overpayments of working tax credit or child tax credit as if they were overpayments of universal credit).

Supplementary

7

Regulations under paragraph 1(1) may secure the result that any gap in entitlement to an existing benefit (or what would, but for the provisions of this Part, be a gap in entitlement to an existing benefit) is to be disregarded for the purposes of provision under such regulations.

SCHEDULE 7 — Jobseeker's allowance in interim period: consequential amendments

Jobseekers Act 1995 (c. 18)

1

The Jobseekers Act 1995 is amended as follows.

2

(1) Section 8 (attendance etc) is amended as follows.

(2) In subsection (1A)(a) (as originally enacted), for “the Secretary of State” there is substituted “an employment officer“.

(3) In subsection (2), for paragraphs (a) to (c) there is substituted “ provide for entitlement to a jobseeker's allowance to cease at such time as may be determined in accordance with any such regulations if, when a person fails to comply with such regulations, that person (or, if that person is a member of a joint-claim couple, either member of the couple) does not make prescribed contact with an employment officer within a prescribed period of the failure. ”

3

In section 16(3)(b) and 17(4) (in both places) for “good cause” there is substituted “ a good reason ”.

4

In section 17A (employment schemes), in subsection (5)(c) for “jobseeker's agreement to which a person is a party” there is substituted “ claimant commitment accepted by a person ”.

5

Section 20 (exemptions from section 19) is amended as follows—

(a) in the heading, after “19” there is inserted “ and 19A ”;

(b) in subsection (1), for “prevent payment” there is substituted “ authorise reduction ”;

(d) in subsection (3), for “19(6)(b) or (d)” there is substituted “19(2)(b) or (d)” and for “ just cause ” there is substituted “good reason”.

6

Sections 20C and 20D (uncommenced provision relating to sanctions for violent conduct etc) are repealed.

7

In section 22 (members of the forces), in subsection (2), for “section 19(6)(b)” there is substituted “ section 19(2)(b) ”.

8

In section 35 (interpretation), in subsection (1), before the definition of “jobseeking period” there is inserted—

“jobseeker's direction” has the meaning given by section 19A;

9

In section 36 (regulations and orders), after subsection (1) there is inserted—

(1A) Subsection (1) does not apply to an order under section 35(1) in relation to employment officers.

10

(1) Schedule 1 (supplementary) is amended as follows.

(2) In paragraph 8(b), for “entered into a jobseeker's agreement” there is substituted “accepted a claimant commitment“.

(3) In paragraph 10, at the end there is inserted—

(6) References in sub-paragraphs (1) and (2) to an income-based jobseeker's allowance include a payment by way of such an allowance under section 19C.

11

In Schedule 3 to the Social Security Act 1998 (decisions against which an appeal lies), in paragraph 8 and in the heading to that paragraph, for “jobseeker's agreement” there is substituted “ claimant commitment ”.

12

(1) Section 8 of the Social Security Fraud Act 2001 (effect of offence on joint-claim jobseeker's allowance) is amended as follows.

(2) In subsection (2)—

(a) at the beginning there is inserted “Except in prescribed circumstances”;

(b) in paragraph (b), for sub-paragraph (i) there is substituted—

(i) is a person whose failure sanctionable under section 19, 19A or 19B of the Jobseekers Act 1995 has given rise to a reduction under that section; or

(3) Subsection (5) is repealed.

Welfare Reform Act 2009 (c. 24)

13

The Welfare Reform Act 2009 is amended as follows.

14

In section 29(1) (victims of domestic violence), in sub-paragraph (3) of paragraph 8B inserted into Schedule 1 to the Jobseekers Act 1995—

(a) for the first “entered into a jobseeker's agreement” there is substituted “accepted a claimant commitment“;

(b) for “9(10)” there is substituted “9(9)“;

(c) for “entered into a jobseeker's agreement which is in force for” there is substituted “ accepted a claimant commitment during ”.

15

(1) Section 31 (well-being of children) is amended as follows.

(2) In subsection (1)—

(a) for “(the jobseeker's agreement)“ there is substituted “ (as substituted by section 44 of the Welfare Reform Act 2012 (the claimant commitment)) ”;

(b) in the inserted subsection (4A), for “preparing a jobseeker's agreement for a claimant” there is substituted “ considering whether to invite a claimant to accept a claimant commitment ”.

16

(1) Section 32 (contracting out) is amended as follows.

(2) In subsection (2), in section 20E inserted into the Jobseekers Act 1995—

(a) for subsection (2)(a) and (b) there is substituted—

(a) any function under section 8 (attendance etc); (b) any function under section 9 or 10 in relation to a claimant commitment;

(b) after subsection (2)(d) there is inserted—

(e) functions under section 19 or 19A;

(3) In subsection (3), for paragraphs (a) to (d) there is substituted—

(a) section 8(1)(a), (1A) and (2); (b) sections 9 and 10 (in all places); (c) section 16(3)(b)(ii); (d) sections 19 and 19A (in all places);

1

The Social Security Administration Act 1992 is amended as follows.

2

In section 78(4) (recovery of funeral payments out of social fund), after “Payments” there is inserted “ out of the social fund ”.

3

In section 79 (recovery of Northern Ireland payments), in paragraph (c), for the words from “under subsection” to the end there is substituted “ under section 71(8) ”.

4

In Part 1 of Schedule 4 (persons employed in social security administration), under the heading “Former officers”, after the entry for “A social fund officer” there is inserted—

The social fund Commissioner. A social fund inspector. A member of any staff employed in connection with the social fund.

SCHEDULE 9 — Personal independence payment: amendments

Transport Act 1982 (c. 49)

1

In section 70 of the Transport Act 1982 (payments in respect of applicants for exemption from wearing seat belts), in subsection (2), after paragraph (a) there is inserted—

(ab) those in receipt of personal independence payment;

Child Support Act 1991 (c. 48)

2

In section 8 of the Child Support Act 1991 (role of courts with respect to maintenance for children), in subsection (8)(a), at the beginning there is inserted “an allowance under Part 4 of the Welfare Reform Act 2012 (personal independence payment) or”.

3

The Social Security Contributions and Benefits Act 1992 is amended as follows.

4

In section 30B (incapacity benefit: rate), in subsection (4), after paragraph (a) there is inserted—

(aa) is entitled to the daily living component of personal independence payment at a rate designated by regulations under this paragraph, or

5

(1) Section 64 (entitlement to attendance allowance) is amended as follows.

(2) In subsection (1), for “the care component of a disability living allowance” there is substituted “ an allowance within subsection (1A) ”.

(3) After subsection (1) there is inserted—

(1A) The following allowances are within this subsection— (a) personal independence payment; (b) the care component of a disability living allowance.

6

In section 150 (Christmas bonus for pensioners: interpretation), in subsection (1), after paragraph (ba) there is inserted—

(bb) personal independence payment;

7

The Social Security Administration Act 1992 is amended as follows.

8

(1) Section 1 (entitlement to benefit dependent on claim) is amended as follows.

(2) In subsection (3)—

(a) before paragraph (a) there is inserted—

(za) for personal independence payment by virtue of section 82 of the Welfare Reform Act 2012; or

(b) paragraph (b) and the “or” preceding it is repealed.

(3) In subsection (4), after paragraph (ac) there is inserted—

(ad) personal independence payment.

9

In section 5(2) (regulations about claims for and payments of benefit), after paragraph (ac) there is inserted—

(ad) personal independence payment;

10

In section 71(11) (overpayments), after paragraph (ac) there is inserted—

(ad) personal independence payment;

11

In section 73 (overlapping benefits - general), after subsection (5) there is inserted—

(6) Personal independence payment is to be treated for the purposes of this section as if it were benefit as defined in section 122 of the Contributions and Benefits Act.

12

In section 121DA (interpretation of Part 6), in subsection (1), after paragraph (hj) (inserted by Schedule 2 to this Act) there is inserted—

(hk) Part 4 of that Act;

13

In section 122B (supply of other government information for fraud prevention and verification), in subsection (3)(b), after “Welfare Reform Act 2012” (inserted by Schedule 2 to this Act) there is inserted “, Part 4 of that Act”.

14

In section 122C (supply of information to authorities administering benefit), in subsection (6)(b), after “Welfare Reform Act 2007” there is inserted “ , Part 4 of the Welfare Reform Act 2012 ”.

15

In section 124 (age, death and marriage), in subsection (1), after paragraph (ad) (inserted by Schedule 2 to this Act) there is inserted—

(ae) of the provisions of Part 4 of that Act;

16

In section 125 (regulations as to notification of deaths), in subsection (1), after “Welfare Reform Act 2012” (inserted by Schedule 2 to this Act) there is inserted “, Part 4 of that Act”.

17

In section 150 (uprating)—

(a) in subsection (1), after paragraph (n) (inserted by Schedule 2 to this Act) there is inserted—

(o) specified in regulations under section 78(3) or 79(3) of that Act;

(b) in subsection (3)(b), for “or (g)” there is substituted “ , (g) or (o) ”.

18

In section 159 (effect of alteration in the component rates of income support), in subsection (5), in the definition of “benefit income”, after “income support;” there is inserted—

(aa) personal independence payment;

19

In section 159A (effect of alteration of rates of a jobseeker's allowance), in subsection (5), in the definition of “benefit income”, after “Contributions and Benefits Act;” there is inserted—

(ab) personal independence payment;

20

In section 159B (effect of alterations affecting state pension credit), in subsection (6), in the definition of “benefit income”, after “Contributions and Benefits Act” there is inserted “ or personal independence payment ”.

21

In section 159C (effect of alteration of rates of an employment and support allowance), in subsection (6), in the definition of “benefit income”, after “Contributions and Benefits Act” there is inserted “ or personal independence payment ”.

22

In section 160 (implementation of increases in income support due to attainment of particular ages), in subsection (3), after “entitlement to” there is inserted “personal independence payment or to“.

23

In section 160A (implementation of increases in income-based jobseeker's allowance due to attainment of particular ages), in subsection (3), after “Contributions and Benefits Act;” there is inserted—

(aa) personal independence payment;

24

In section 160B (implementation of increases in employment and support allowance due to attainment of particular ages), in subsection (3), for the words from “a benefit” to the end there is substituted—

(a) a benefit under the Contributions and Benefits Act; or (b) personal independence payment.

25

In section 165 (adjustments between National Insurance Fund and Consolidated Fund), in subsection (1)(a)(iii), after “universal credit” (inserted by Schedule 2 to this Act) there is inserted “, personal independence payment”.

26

In section 170 (Social Security Advisory Committee), in subsection (5)—

(a) in the definition of “the relevant enactments“, after paragraph (ak) (inserted by Schedule 2 to this Act) there is inserted—

Part 4 of that Act;

(b) in the definition of “the relevant Northern Ireland enactments”, after paragraph (ak) (inserted by Schedule 2 to this Act) there is inserted—

(al) any provisions in Northern Ireland which correspond to Part 4 of that Act;

27

(1) Section 179 (reciprocal agreements) is amended as follows.

(2) In subsection (3)(a), after “Welfare Reform Act 2012” (inserted by Schedule 2 to this Act) there is inserted “, Part 4 of that Act”.

(3) In subsection (4), after paragraph (ag) (inserted by Schedule 2 to this Act) there is inserted—

(ah) to Part 4 of that Act;

28

In section 180 (payment of travelling expenses), in paragraphs (a) and (b)(i), after “Welfare Reform Act 2012” (inserted by Schedule 2 to this Act) there is inserted “, Part 4 of that Act”.

29

In section 182B (information about postal redirection), in subsection (5)(b), after “Welfare Reform Act 2012” (inserted by Schedule 2 to this Act) there is inserted “, Part 4 of that Act”.

30

In section 184 (control of pneumoconiosis), in paragraph (c), for “benefit as defined in section 122 of the Contributions and Benefits Act” there is substituted “personal independence payment, or benefit as defined in section 122 of the Contributions and Benefits Act,“.

31

In section 187 (inalienability), in subsection (1), after paragraph (ac) there is inserted—

(ad) personal independence payment;

32

In section 191 (interpretation), in the definition of “benefit”, for “, state pension credit and an employment and support allowance” there is substituted “ state pension credit, an employment and support allowance and personal independence payment ”.

33

In Schedule 7 (regulations not requiring prior submission to Social Security Advisory Committee), before paragraph 1 there is inserted—

(A1) Regulations under section 78(3) or 79(3) of the Welfare Reform Act 2012.

34

The Social Security (Recovery of Benefits) Act 1997 is amended as follows.

35

In section 29 (general interpretation), in the definition of “benefit”, after “employment and support allowance” there is inserted “ , personal independence payment ”.

36

In Schedule 2 (calculation of compensation payment), in the table—

(a) in the section relating to compensation for cost of care incurred during the relevant period, in the second column, after the entry for attendance allowance there is inserted “Daily living component of personal independence payment”;

(b) in the section relating to compensation for loss of mobility during the relevant period, in the second column, after the entry for mobility allowance there is inserted “Mobility component of personal independence payment”.

37

The Social Security Act 1998 is amended as follows.

38

In section 2(2) (use of computers), after paragraph (k) (inserted by Schedule 2 to this Act) there is inserted

or (l) Part 4 of that Act.

39

In section 8 (decisions by Secretary of State)—

(a) in subsection (3), after paragraph (ba) there is inserted—

(baa) personal independence payment;

(b) in subsection (4), after the words “Welfare Reform Act 2012” (inserted by Schedule 2 to this Act) there is inserted “or Part 4 of that Act.”

40

In section 11(3) (regulations with respect to decisions), in the definition of “current legislation”, after the words “Welfare Reform Act 2012” (inserted by Schedule 2 to this Act) there is inserted “and Part 4 of that Act”.

41

In section 27(7) (restriction on entitlement in cases of error), in the definition of “benefit”—

(a) after paragraph (de) there is inserted—

(df) personal independence payment;

(b) in paragraph (e) for “to (de)” there is substituted “ to (df) ”.

42

In section 28(3) (correction of errors in decisions etc), after paragraph (h) (inserted by Schedule 2 to this Act) there is inserted

or (i) Part 4 of that Act.

43

In Schedule 3 (decisions against which an appeal lies), in paragraph 3—

(a) in paragraph (f), the final “or” is repealed;

(b) after paragraph (g) there is inserted—

(h) regulations made under section 85(1) or 86(1) of the Welfare Reform Act 2012; (i) section 87 of that Act.

Immigration and Asylum Act 1999 (c. 33)

44

In section 115 of the Immigration and Asylum Act 1999 (exclusion from benefits)—

(a) in subsection (1), after “support allowance)“ there is inserted “or to personal independence payment”;

(b) in subsection (2), at the beginning of paragraph (b) there is inserted “disability living allowance or”.

45

The Social Security Fraud Act 2001 is amended as follows.

46

In section 6A(1) (definitions)—

(a) in the definition of “disqualifying benefit”, after paragraph (c) there is inserted—

(ca) any benefit under Part 4 of the Welfare Reform Act 2012 (personal independence payment) or under any provision in Northern Ireland which corresponds to that Part;

(b) in the definition of “sanctionable benefit”, after paragraph (c) there is inserted—

(ca) personal independence payment;

47

In section 10 (power to supplement and mitigate loss of benefit provisions), in subsection (3), after paragraph (bd) (inserted by Schedule 2 to this Act) there is inserted—

(be) any benefit under Part 4 of the Welfare Reform Act 2012 (personal independence payment) or under any provision in Northern Ireland which corresponds to that Part;

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

48

The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.

49

In section 677 (UK social security benefits wholly exempt from tax), in subsection (1), at the appropriate place in Part 1 of Table B there is inserted—

Personal independence payment	WRA 2012	Section 77
	Any provision made for Northern Ireland which corresponds to section 77 of WRA 2012	Any provision made for Northern Ireland which corresponds to section 77 of WRA 2012

50

In Part 1 of Schedule 1 (abbreviations of Acts), at the end there is inserted—

WRA 2012	The Welfare Reform Act 2012

SCHEDULE 10 — Personal independence payment: transitional

General

1

(1) Regulations under section 93 may in particular make provision for the purposes of, or in connection with, replacing disability living allowance with personal independence payment.

(2) In this Schedule “the appointed day” means the day appointed for the coming into force of section 77.

Claims before the appointed day

2

(1) The provision referred to in paragraph 1(1) includes—

(a) provision for a claim for personal independence payment to be made before the appointed day for a period beginning on or after that day;

(b) provision for a claim for personal independence payment made before the appointed day to be treated to any extent as a claim for disability living allowance;

(c) provision for a claim for disability living allowance made before the appointed day to be treated to any extent as a claim for personal independence payment.

(2) The provision referred to in paragraph 1(1) includes provision, where a claim for personal independence payment is made (or treated as made) before the appointed day, for an award on the claim to be made in respect of a period before the appointed day (including provision as to the conditions of entitlement for, and the amount of, such an award).

Claims after the appointed day

3

(1) The provision referred to in paragraph 1(1) includes—

(a) provision permanently or temporarily excluding the making of a claim for personal independence payment after the appointed day by—

(i) a person to whom disability living allowance is awarded, or

(ii) a person who would be entitled to an award of disability living allowance on making a claim for it;

(b) provision temporarily excluding the making of a claim for personal independence payment after the appointed day by any other person;

(d) provision for a claim for personal independence payment made after the appointed day to be treated to any extent as a claim for disability living allowance;

(e) provision for a claim for disability living allowance made after the appointed day to be treated to any extent as a claim for personal independence payment.

(2) The provision referred to in paragraph 1(1) includes provision, where a claim for personal independence payment is made (or treated as made) after the appointed day, for an award on the claim to be made in respect of a period before the appointed day (including provision as to the conditions of entitlement for, and the amount of, such an award).

Awards

4

(1) The provision referred to in paragraph 1(1) includes—

(a) provision for terminating an award of disability living allowance;

(b) provision for making an award of personal independence payment, with or without application, to a person whose award of disability living allowance is terminated.

(2) The provision referred to in sub-paragraph (1)(b) includes—

(a) provision imposing requirements as to the procedure to be followed, information to be supplied or assessments to be undergone in relation to an award by virtue of that sub-paragraph or an application for such an award;

(b) provision as to the consequences of failure to comply with any such requirement;

(i) provision temporarily or permanently disapplying, or otherwise modifying, conditions of entitlement to personal independence payment in relation to the award;

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Welfare Reform Act 2012

Part 7 — Final

Repeals

147

Financial provision

148

Extent

149

Commencement

150

Short title

151

SCHEDULE 1 — Universal credit: supplementary regulation-making powers

Entitlement of joint claimants

1

Linking periods

2

Couples

3

Calculation of capital and income

4

Responsibility for children etc

5

Vouchers

6

Work-related requirements

7

Good reason

8

SCHEDULE 2 — Universal credit: amendments

Children Act 1989 (c. 41)

1

Child Support Act 1991 (c. 48)

2

Social Security Administration Act 1992 (c. 5)

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

Local Government Finance Act 1992 (c. 14)

32

33

34

Jobseekers Act 1995 (c. 18)

35

Housing Act 1996 (c. 52)

36

Education Act 1996 (c. 56)

37

38

39

Social Security (Recovery of Benefits) Act 1997 (c. 27)

40

41

42