Welfare Reform and Pensions Act 1999 (c. 30)

(The document as of February, 2008)

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(a) after "conditions" there shall be inserted "mentioned in subsection (1)(a) above"; and

(b) in paragraph (a), for "the day in question" there shall be substituted "the relevant day".

(3) After that subsection there shall be inserted--

" (2A) The conditions mentioned in subsection (1)(b) above are that--

(a) he is aged 16 or over on the relevant day;

(b) he is under the age of 20 or, in prescribed cases, 25 on a day which forms part of the period of incapacity for work;

(c) he was incapable of work throughout a period of 196 consecutive days immediately preceding the relevant day, or an earlier day in the period of incapacity for work on which he was aged 16 or over;

(d) on the relevant day he satisfies the prescribed conditions as to residence in Great Britain, or as to presence there; and

(e) he is not, on that day, a person who is receiving full-time education. "

(4) In subsection (3) of that section, after "benefit" there shall be inserted "under subsection (1)(a) above".

(5) After subsection (5) of that section there shall be inserted--

" (6) Regulations may provide that persons who have previously been entitled to incapacity benefit shall, in prescribed circumstances, be entitled to short-term incapacity benefit under subsection (1)(b) above notwithstanding that they do not satisfy the condition set out in paragraph (b) of subsection (2A) above.

(7) Regulations may prescribe the circumstances in which a person is or is not to be treated as receiving full-time education for the purposes of paragraph (e) of that subsection. "

65 Abolition of severe disablement allowance

Sections 68 and 69 of the Contributions and Benefits Act (severe disablement allowance) shall cease to have effect.

Disability benefits

66 Attendance allowance

(1) After subsection (3) of section 64 of the Contributions and Benefits Act (entitlement to attendance allowance) there shall be added--

" (4) Circumstances may be prescribed in which a person is to be taken to satisfy or not to satisfy such of the conditions mentioned in subsections (2) and (3) above as may be prescribed. "

(2) In subsection (1) of section 66 of that Act (attendance allowance for the terminally ill)--

(a) in paragraph (a)(i), for the words from "for the remainder of his life" to "terminally ill" there shall be substituted "for so much of the period for which he is terminally ill as does not fall before the date of the claim";

(b) in paragraph (a)(ii), for "that date", in the first place where those words occur, there shall be substituted "the date of the claim or, if later, the first date on which he is terminally ill"; and

(c) in paragraph (b), for "the remainder of the person's life, beginning with that date" there shall be substituted "so much of the period for which he is terminally ill as does not fall before the date of the claim".

67 Disability living allowance

(1) In subsection (3) of section 71 of the Contributions and Benefits Act (disability living allowance), for "for life" there shall be substituted "for an indefinite period".

(2) In subsection (5)(b) of section 72 of that Act (the care component), for "for the remainder of his life beginning with that date" there shall be substituted "for so much of the period for which he is terminally ill as does not fall before the date of the claim".

(3) In subsection (1) of section 73 of that Act (the mobility component), for "the age of 5" there shall be substituted "the relevant age" and after that subsection there shall be inserted--

" (1A) In subsection (1) above "the relevant age" means--

(a) in relation to the conditions mentioned in paragraph (a), (b) or (c) of that subsection, the age of 3;

(b) in relation to the conditions mentioned in paragraph (d) of that subsection, the age of 5. "

(4) Subsection (3) does not affect awards made before the day on which that subsection comes into force.

Miscellaneous

68 Certain overpayments of benefit not to be recoverable

(1) An overpayment to which this section applies shall not be recoverable from the payee, whether by the Secretary of State or a local authority, under any provision made by or under Part III of the Administration Act (overpayments and adjustments of benefit).

(2) This section applies to an overpayment if--

(a) it is in respect of a qualifying benefit;

(b) it is referable to a decision given on a review that there has been an alteration in the relevant person's condition, being a decision to which effect is required to be given as from a date earlier than that on which it was given;

(d) the overpayment is not excluded by virtue of subsection (6).

(3) In subsection (2)(b) the reference to a decision on a review that there has been an alteration in the relevant person's condition is a reference to a decision so given that that person's physical or mental condition either was at the time when the original decision was given, or has subsequently become, different from that on which that decision was based, with the result--

(a) that he did not at that time, or (as the case may be) has subsequently ceased to, meet any of the conditions contained in the following provisions of the Contributions and Benefits Act, namely--

(i) section 64 (attendance allowance),

(ii) section 72(1) or (2) (care component of disability living allowance), and

(iii) section 73(1) or (2) (mobility component of that allowance); or

(b) that he was at that time, or (as the case may be) has subsequently become, capable of work in accordance with regulations made under section 171C(2) of that Act (the all work test).

(4) For the purposes of this section "qualifying benefit" means--

(a) attendance allowance;

(b) disability living allowance;

(c) any benefit awarded wholly or partly by reason of a person being (or being treated as being) in receipt of a component (at any rate) of disability living allowance or in receipt of attendance allowance;

(d) incapacity benefit;

(e) any benefit (other than incapacity benefit) awarded wholly or partly by reason of a person being (or being treated as being) incapable of work; or

(f) any benefit awarded wholly or partly by reason of a person being (or being treated as being) in receipt of any benefit falling within paragraph (c), (d) or (e).

(5) For the purposes of this section--

(a) "review" means a review taking place by virtue of section 25(1)(a) or (b), 30(2)(a) or (b) or 35(1)(a) or (b) of the Administration Act;

(b) "the relevant person", in relation to a review, means the person to whose entitlement to a qualifying benefit or to whose incapacity for work the review related; and

(c) "the original decision", in relation to a review, means the decision as to any such entitlement or incapacity to which the review related.

(6) An overpayment is excluded by virtue of this subsection if (before or after the passing of this Act)--

(a) the payee has agreed to pay a penalty in respect of the overpayment under section 115A of the Administration Act,

(b) the payee has been convicted of any offence (under section 111A or 112(1) or (1A) of that Act or otherwise) in connection with the overpayment, or

(c) proceedings have been instituted against the payee for such an offence and the proceedings have not been determined or abandoned.

(7) Nothing in this section applies to an overpayment to the extent that it was recovered from the payee (by any means) before 26th February 1999.

(8) In this section--

"benefit" includes any amount included in--
(a)
the applicable amount in relation to an income-related benefit (as defined by section 135(1) of the Contributions and Benefits Act), or
(b)
the applicable amount in relation to a jobseeker's allowance (as defined by section 4(5) of the [1995 c. 18.] Jobseekers Act 1995);
"income-related benefit" has the meaning given by section 123(1) of the Contributions and Benefits Act;
"overpayment" means an amount of benefit paid in excess of entitlement;
"the payee", in relation to an overpayment, means the person to whom that amount was paid.

69 Child benefit: claimant to state national insurance number

In section 13 of the Administration Act (entitlement to child benefit dependent on claim), after subsection (1) there shall be inserted--

" (1A) No person shall be entitled to child benefit unless subsection (1B) below is satisfied in relation to him.

(1B) This subsection is satisfied in relation to a person if--

(a) his claim for child benefit is accompanied by--

(i) a statement of his national insurance number and information or evidence establishing that that number has been allocated to him; or

(ii) information or evidence enabling the national insurance number that has been allocated to him to be ascertained; or

(b) he makes an application for a national insurance number to be allocated to him which is accompanied by information or evidence enabling such a number to be so allocated.

(1C) Regulations may make provision disapplying subsection (1A) above in the case of--

(a) prescribed descriptions of persons making claims, or

(b) prescribed descriptions of children in respect of whom child benefit is claimed,

or in other prescribed circumstances. "

70 Welfare benefits: miscellaneous amendments

Schedule 8 (which makes minor and consequential amendments of provisions relating to welfare benefits) shall have effect.

Supplementary

71 Sharing of functions as regards claims and information

After section 7 of the Administration Act there shall be inserted--

" Sharing of functions as regards certain claims and information

7A Sharing of functions as regards certain claims and information

(1) Regulations may, for the purpose of supplementing the persons or bodies to whom claims for relevant benefits may be made, make provision--

(a) as regards housing benefit or council tax benefit, for claims for that benefit to be made to--

(i) a Minister of the Crown, or

(ii) a person providing services to a Minister of the Crown;

(b) as regards any other relevant benefit, for claims for that benefit to be made to--

(i) a local authority,

(ii) a person providing services to a local authority, or

(iii) a person authorised to exercise any function of a local authority relating to housing benefit or council tax benefit.

(2) Regulations may make provision for or in connection with--

(a) the forwarding by a relevant authority of--

(i) claims received by virtue of any provision authorised by subsection (1) above, and

(ii) information or evidence supplied in connection with making such claims (whether supplied by persons making the claims or by other persons);

(b) the receiving and forwarding by a relevant authority of information or evidence relating to social security matters supplied by, or the obtaining by a relevant authority of such information or evidence from--

(i) persons making, or who have made, claims for a relevant benefit, or

(ii) other persons in connection with such claims,

including information or evidence not relating to the claims or benefit in question;

(c) the recording by a relevant authority of information or evidence relating to social security matters supplied to, or obtained by, the authority and the holding by the authority of such information or evidence (whether as supplied or obtained or as recorded);

(d) the giving of information or advice with respect to social security matters by a relevant authority to persons making, or who have made, claims for a relevant benefit.

(3) In paragraphs (b) and (d) of subsection (2) above--

(a) references to claims for a relevant benefit are to such claims whether made as mentioned in subsection (1)(a) or (b) above or not; and

(b) references to persons who have made such claims include persons to whom awards of benefit have been made on the claims.

(4) Regulations under this section may make different provision for different areas.

(5) Regulations under any other enactment may make such different provision for different areas as appears to the Secretary of State expedient in connection with any exercise by regulations under this section of the power conferred by subsection (4) above.

(6) In this section--

(a) "benefit" includes child support or a war pension (any reference to a claim being read, in relation to child support, as a reference to an application under the [1991 c. 48.] Child Support Act 1991 for a maintenance assessment);

(b) "local authority" means an authority administering housing benefit or council tax benefit;

(i) a Minister of the Crown,

(ii) a person providing services to a Minister of the Crown,

(iii) a local authority,

(iv) a person providing services to a local authority, or

(v) a person authorised to exercise any function of a local authority relating to housing benefit or council tax benefit;

(d) "relevant benefit" means housing benefit, council tax benefit or any other benefit prescribed for the purposes of this section;

(e) "social security matters" means matters relating to social security, child support or war pensions;

and in this subsection "war pension" means a war pension within the meaning of section 25 of the [1989 c. 24.] Social Security Act 1989 (establishment and functions of war pensions committees). "

72 Supply of information for certain purposes

(1) The Secretary of State may by regulations make such provision for or in connection with any of the following matters, namely--

(a) the use by a person within subsection (2) of social security information held by that person,

(b) the supply (whether to a person within subsection (2) or otherwise) of social security information held by a person within that subsection,

(d) the circumstances and extent (if any) in and to which a person to whom such information is supplied under the regulations may supply it to any other person (whether within subsection (2) or not),

as the Secretary of State considers appropriate in connection with any provision to which subsection (3) applies or in connection with any scheme or arrangements to which subsection (4) applies.

(2) The persons within this subsection are--

(a) a Minister of the Crown;

(b) a person providing services to, or designated for the purposes of this section by an order of, a Minister of the Crown;

(d) a person providing services to, or authorised to exercise any function of, any such authority.

(3) This subsection applies to any provision made by or under--

(a) any of the sections of the Administration Act inserted by section 57, 58 or 71 of this Act,

(b) section 60 of this Act, or

(4) This subsection applies to--

(a) any scheme designated by regulations under subsection (1), being a scheme operated by the Secretary of State (whether under arrangements with any other person or not) for any purposes connected with employment or training in the case of persons of a particular category or description;

(b) any arrangements of a description specified in such regulations, being arrangements made by the Secretary of State for any such purposes.

(5) Regulations under subsection (1) may, in particular, authorise information supplied to a person under the regulations--

(a) to be used for the purpose of amending or supplementing other information held by that person; and

(b) if it is so used, to be supplied to any other person, and used for any purpose, to whom or for which that other information could be supplied or used.

(6) In this section--

"relevant purposes" means purposes connected with--
(a)
social security, child support or war pensions, or
(b)
employment or training;
"social security information" means information relating to social security, child support or war pensions;

and in this subsection "war pensions" means war pensions within the meaning of section 25 of the [1989 c. 24.] Social Security Act 1989 (establishment and functions of war pensions committees).

(7) Any reference in this section to purposes connected with employment or training includes purposes connected with the existing or future employment or training prospects or needs of persons, and (in particular) assisting or encouraging persons to enhance their employment prospects.

Chapter II National Insurance contributions

73 New threshold for primary Class 1 contributions

Schedule 9 (which amends the Contributions and Benefits Act, the Administration Act and the [1993 c. 48.] Pension Schemes Act 1993 so as to make provision for and in connection with the introduction of a new primary threshold for primary Class 1 contributions) shall have effect.

74 New threshold for primary Class 1 contributions: Northern Ireland

Schedule 10 (which amends the [1992 c. 7.] Social Security Contributions and Benefits (Northern Ireland) Act 1992, the [1992 c. 8.] Social Security Administration (Northern Ireland) Act 1992 and the [1993 c. 49.] Pension Schemes (Northern Ireland) Act 1993 so as to make provision for and in connection with the introduction for Northern Ireland of a new primary threshold for primary Class 1 contributions) shall have effect.

75 Earnings of workers supplied by service companies etc

After section 4 of the Contributions and Benefits Act there shall be inserted--

" 4A Earnings of workers supplied by service companies etc

(1) Regulations may make provision for securing that where--

(a) an individual ("the worker") personally performs, or is under an obligation personally to perform, services for the purposes of a business carried on by another person ("the client"),

(b) the performance of those services by the worker is (within the meaning of the regulations) referable to arrangements involving a third person (and not referable to any contract between the client and the worker), and

(c) the circumstances are such that, were the services to be performed by the worker under a contract between him and the client, he would be regarded for the purposes of the applicable provisions of this Act as employed in employed earner's employment by the client,

relevant payments or benefits are, to the specified extent, to be treated for those purposes as earnings paid to the worker in respect of an employed earner's employment of his.

(2) For the purposes of this section--

(a) "the intermediary" means--

(i) where the third person mentioned in subsection (1)(b) above has such a contractual or other relationship with the worker as may be specified, that third person, or

(ii) where that third person does not have such a relationship with the worker, any other person who has both such a relationship with the worker and such a direct or indirect contractual or other relationship with the third person as may be specified; and

(b) a person may be the intermediary despite being--

(i) a person with whom the worker holds any office or employment, or

(ii) a body corporate, unincorporated body or partnership of which the worker is a member;

and subsection (1) above applies whether or not the client is a person with whom the worker holds any office or employment.

(3) Regulations under this section may, in particular, make provision--

(a) for the worker to be treated for the purposes of the applicable provisions of this Act, in relation to the specified amount of relevant payments or benefits (the worker's "attributable earnings"), as employed in employed earner's employment by the intermediary;

(b) for the intermediary (whether or not he fulfils the conditions prescribed under section 1(6)(a) above for secondary contributors) to be treated for those purposes as the secondary contributor in respect of the worker's attributable earnings;

(i) any deductions to be made, and

(ii) in other respects the manner and basis in and on which the amount of the worker's attributable earnings for any specified period is to be calculated or estimated,

in connection with relevant payments or benefits;

(d) for aggregating any such amount, for purposes relating to contributions, with other earnings of the worker during any such period;

(e) for determining the date by which contributions payable in respect of the worker's attributable earnings are to be paid and accounted for;

(f) for apportioning payments or benefits of any specified description, in such manner or on such basis as may be specified, for the purpose of determining the part of any such payment or benefit which is to be treated as a relevant payment or benefit for the purposes of the regulations;

(g) for disregarding for the purposes of the applicable provisions of this Act, in relation to relevant payments or benefits, an employed earner's employment in which the worker is employed (whether by the intermediary or otherwise) to perform the services in question;

(h) for otherwise securing that a double liability to pay any amount by way of a contribution of any description does not arise in relation to a particular payment or benefit or (as the case may be) a particular part of a payment or benefit;

(i) for securing that, to the specified extent, two or more persons, whether--

(i) connected persons (within the meaning of section 839 of the [1988 c. 1.] Income and Corporation Taxes Act 1988), or

(ii) persons of any other specified description,

are treated as a single person for any purposes of the regulations;

(j) (without prejudice to paragraph (i) above) for securing that a contract made with a person other than the client is to be treated for any such purposes as made with the client;

(k) for excluding or modifying the application of the regulations in relation to such cases, or payments or benefits of such description, as may be specified.

(4) Regulations made in pursuance of subsection (3)(c) above may, in particular, make provision--

(a) for the making of a deduction of a specified amount in respect of general expenses of the intermediary as well as deductions in respect of particular expenses incurred by him;

(b) for securing reductions in the amount of the worker's attributable earnings on account of--

(i) any secondary Class 1 contributions already paid by the intermediary in respect of actual earnings of the worker, and

(ii) any such contributions that will be payable by him in respect of the worker's attributable earnings.

(5) Regulations under this section may make provision for securing that, in applying any provisions of the regulations, any term of a contract or other arrangement which appears to be of a description specified in the regulations is to be disregarded.

(6) In this section--

"the applicable provisions of this Act" means this Part of this Act and Parts II to V below;
"business" includes any activity carried on--
(a)
by a government department or public or local authority (in the United Kingdom or elsewhere), or
(b)
by a body corporate, unincorporated body or partnership;
"relevant payments or benefits" means payments or benefits of any specified description made or provided (whether to the intermediary or the worker or otherwise) in connection with the performance by the worker of the services in question;
"specified" means prescribed by or determined in accordance with regulations under this section.

(7) Any reference in this section to the performance by the worker of any services includes a reference to any such obligation of his to perform them as is mentioned in subsection (1)(a) above.

(8) Regulations under this section shall be made by the Treasury with the concurrence of the Secretary of State.

(9) If, on any modification of the statutory provisions relating to income tax, it appears to the Treasury to be expedient to modify any of the preceding provisions of this section for the purpose of assimilating the law relating to income tax and the law relating to contributions under this Part of this Act, the Treasury may with the concurrence of the Secretary of State by order make such modifications of the preceding provisions of this section as the Treasury think appropriate for that purpose. "

76 Earnings of workers supplied by service companies etc: Northern Ireland

After section 4 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 there shall be inserted--