Welfare Reform Act 2007 (c. 5)

(The document as of February, 2008)

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(1) The Vaccine Damage Payments Act 1979 is amended as follows.

(2) In section 4 (appeals to appeal tribunals), in subsection (1) (right of appeal), for "an appeal tribunal" substitute "an appropriate appeal tribunal" and after that subsection insert--

" (1A) In subsection (1) the reference to an appropriate appeal tribunal is--

(a) if the claimant's address is in Northern Ireland, to an appeal tribunal constituted under Chapter 1 of Part 2 of the Social Security (Northern Ireland) Order 1998;

(b) if it is not, to an appeal tribunal constituted under Chapter 1 of Part 1 of the Social Security Act 1998. "

(3) In that section, after subsection (3) insert--

" (3A) In relation to appeals under subsection (1) to an appeal tribunal constituted under Chapter 1 of Part 2 of the Social Security (Northern Ireland) Order 1998, the Department for Social Development in Northern Ireland may by regulations--

(a) make provision as to the manner in which, and the time within which, appeals are to be brought;

(b) make such provision with respect to proceedings before appeal tribunals as the Department considers appropriate.

(3B) Regulations under subsection (3A) may in particular make any provision of a kind mentioned in Schedule 4 to the Social Security (Northern Ireland) Order 1998. "

(4) In section 7A (correction of errors and setting aside of decisions), after subsection (1) insert--

" (1A) The Department for Social Development in Northern Ireland may by regulations make provision with respect to--

(a) the correction of accidental errors in any decision or record of a decision under section 4 of this Act of an appeal tribunal constituted under Chapter 1 of Part 2 of the Social Security (Northern Ireland) Order 1998; and

(b) the setting aside of any such decision in a case where it appears just to set the decision aside on the ground that--

(i) a document relating to the proceedings in which the decision was given was not sent to, or was not received at an appropriate time by, a party to the proceedings or a party's representative or was not received at an appropriate time by the appeal tribunal which gave the decision; or

(ii) a party to the proceedings or a party's representative was not present at a hearing related to the proceedings. "

(5) In section 12 (financial provisions), after subsection (3) insert--

" (3A) The Department for Social Development in Northern Ireland shall pay such travelling and other allowances as the Department may determine--

(a) to persons required under section 4 to attend before tribunals constituted under Chapter 1 of Part 2 of the Social Security (Northern Ireland) Order 1998; and

(b) in circumstances where the Department considers it appropriate, to any person who accompanies a disabled person to such a tribunal. "

Compensation for pneumoconiosis etc.

58 "Relevant employer"

(1) The Pneumoconiosis etc. (Workers' Compensation) Act 1979 (c. 41) is amended as follows.

(2) In section 2 (conditions of entitlement), in subsection (3), for the definition of "relevant employer" substitute--

" "relevant employer" has the meaning given in the Schedule to this Act. "

(3) Insert the Schedule (definition of "relevant employer") set out in Schedule 6.

(4) In section 7(3) (regulations subject to affirmative resolution), after "section 1 above" insert "or paragraph 9 of the Schedule to this Act".

59 "Dependant"

(1) In section 3 of the Pneumoconiosis etc. (Workers' Compensation) Act 1979 (dependants), in subsection (1) (definition of "dependant")--

(a) in paragraph (a), after "spouse", in each place, insert "or civil partner"; and

(b) for paragraph (c) substitute--

" (c) if neither of the preceding paragraphs applies but he left a person who was residing with him and with whom he was in a qualifying relationship, that person; " .

(2) After subsection (2) of that section insert--

" (2A) For the purposes of subsection (1)(c)--

(a) two persons of the opposite sex are in a qualifying relationship if they are living together as husband and wife;

(b) two persons of the same sex are in a qualifying relationship if they are living together as if they were civil partners.

(2B) For the purposes of subsection (2A)(b), two persons of the same sex are to be regarded as living together as if they were civil partners if, but only if, they would be regarded as living together as husband and wife were they instead two people of the opposite sex. "

(3) Subsection (5) of that section (application of subsection (1) to Scotland: substitution of paragraph (c)) ceases to have effect.

(4) In Schedule 21 to the Civil Partnership Act 2004 (c. 33) (existing provisions to which the provisions of section 246 about interpretation of references to stepchildren apply), after paragraph 11 insert--

" 11A Section 3(4) of the Pneumoconiosis etc. (Workers' Compensation) Act 1979 ("child" and "relative": establishment of relationship). "

Other

60 Power to stop payment of allowances to care home residents

(1) In section 67 of the Contributions and Benefits Act (exclusions relating to attendance allowance) for subsection (2) substitute--

" (2) Regulations may provide that an attendance allowance shall not be payable in respect of a person for a period when he is a resident of a care home in circumstances in which any of the costs of any qualifying services provided for him are borne out of public or local funds under a specified enactment.

(3) The reference in subsection (2) to a care home is to an establishment that provides accommodation together with nursing or personal care.

(4) The following are qualifying services for the purposes of subsection (2)--

(a) accommodation,

(b) board, and

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

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

(7) In this section, "enactment" includes an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament. "

(2) In section 72 of that Act (care component of disability living allowance), for subsection (8) substitute--

" (8) Regulations may provide that no amount in respect of a disability living allowance which is attributable to entitlement to the care component shall be payable in respect of a person for a period when he is a resident of a care home in circumstances in which any of the costs of any qualifying services provided for him are borne out of public or local funds under a specified enactment.

(9) The reference in subsection (8) to a care home is to an establishment that provides accommodation together with nursing or personal care.

(10) The following are qualifying services for the purposes of subsection (8)--

(a) accommodation,

(b) board, and

(11) The reference in subsection (8) to a specified enactment is to an enactment which is, or is of a description, specified for the purposes of that subsection by regulations.

(12) The power to specify an enactment for the purposes of subsection (8) includes power to specify it only in relation to its application for a particular purpose.

(13) In this section, "enactment" includes an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament. "

61 Independent Living Funds

(1) In section 1(1) of the Disability (Grants) Act 1993 (c. 14) (which lists the organisations to which grants may be made by the Secretary of State)--

(a) paragraphs (a) and (b) (Independent Living (Extension) Fund and Independent Living (1993) Fund) cease to have effect;

(b) after paragraph (c) insert " , and

(d) the Independent Living Fund (2006) established by a deed dated 10th April 2006 and made between the Secretary of State for Work and Pensions of the one part and Margaret Rosemary Cooper, Michael Beresford Boyall and Marie Theresa Martin of the other part. "

(2) In section 1(4) of that Act (modifications for Northern Ireland), in paragraph (a) (which substitutes for the Secretary of State the relevant Northern Ireland department), after "(other than the reference in subsection (1)(a) to the Secretary of State for Social Security" insert "and the reference in subsection (1)(d) to the Secretary of State for Work and Pensions".

(3) The Secretary of State may by order made by statutory instrument amend or revoke any enactment contained in subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30)) if he considers it appropriate to do so in consequence of the amendments made by this section.

(4) A statutory instrument containing an order under subsection (3) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(5) The Department for Social Development in Northern Ireland may by order made by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)) amend or revoke any enactment contained in an instrument within the meaning of section 1(c) of the Interpretation Act (Northern Ireland) 1954 (c. 33 (N.I.)) if it considers it appropriate to do so in consequence of the amendments made by this section.

(6) A statutory rule containing an order under subsection (5) shall be subject to negative resolution within the meaning of section 41(6) of the Interpretation Act (Northern Ireland) 1954.

62 Medical examinations

(1) The Social Security Act 1998 (c. 14) is amended as follows.

(2) In section 19 (medical examination required by Secretary of State), in subsections (1) and (2)(b), for "medical practitioner" substitute "health care professional approved by the Secretary of State".

(3) In section 20 (medical examination required by appeal tribunal), in subsection (2), for "medical practitioner" substitute "health care professional approved by the Secretary of State".

(4) In that section, after subsection (2), insert--

" (2A) The power under subsection (2) to refer a person to a health care professional approved by the Secretary of State includes power to specify the description of health care professional to whom the person is to be referred. "

(5) In section 39 (interpretation), in subsection (1), after the definition of "Commissioner" insert--

" "health care professional" means--

(a) a registered medical practitioner,

(b) a registered nurse,

(c) an occupational therapist or physiotherapist registered with a regulatory body established by an Order in Council under section 60 of the Health Care Act 1999, or

(d) a member of such other profession regulated by a body mentioned in section 25(3) of the National Health Service Reform and Health Care Professions Act 2002 as the Secretary of State may prescribe; " .

63 Minor and consequential amendments relating to Part 4

Schedule 7 (which makes miscellaneous minor amendments and amendments consequential on this Part) has effect.

Part 5 General

64 Northern Ireland

(1) This section applies to an Order in Council under paragraph 1(1) of the Schedule to the Northern Ireland Act 2000 (c. 1) (legislation for Northern Ireland during suspension of devolved government) which contains a statement that it is made only for purposes corresponding to those of this Act.

(2) Such an Order--

(a) is not subject to paragraph 2 of that Schedule (affirmative resolution of both Houses of Parliament), but

(b) is subject to annulment in pursuance of a resolution of either House of Parliament.

65 General interpretation

In this Act--

"Administration Act" means the Social Security Administration Act 1992 (c. 5);
"Contributions and Benefits Act" means the Social Security Contributions and Benefits Act 1992 (c. 4).

66 Financial provisions: general

(1) There shall be paid out of money provided by Parliament--

(a) any expenditure incurred by the Secretary of State in consequence of Parts 2 to 4 of this Act, and

(b) any increase attributable to this Act in the sums payable out of money so provided under any other enactment.

(2) There shall be paid into the Consolidated Fund any increase attributable to this Act in the sums payable into that Fund under any other enactment.

67 Repeals

The enactments specified in Schedule 8 are hereby repealed to the extent specified.

68 Transition

(1) The Secretary of State may by order made by statutory instrument make in connection with the coming into force of any provision of this Act, except Part 1, such transitional provision or savings as he considers necessary or expedient.

(2) The power under subsection (1) includes power to make--

(a) different provision for different cases or areas;

(b) incidental, supplementary and consequential provision.

69 Extent

(1) Subject to the following provisions, this Act extends to England and Wales and Scotland only.

(2) The following provisions extend to England and Wales only--

(a) sections 42(1) to (10) and 43, and

(b) paragraphs 6, 11(2) and 16 of Schedule 3.

(3) Paragraphs 1, 2, 4, 11(3), 14 and 22 of Schedule 3 extend to Scotland only.

(4) The following provisions also extend to Northern Ireland--

(a) sections 33(7), 49, 56, 57, 61, 64, 65, 68, this section and sections 70 and 71,

(b) paragraph 15 of Schedule 2, and sections 22 and 24 to 26 so far as relating thereto,

(c) paragraphs 5, 10(1) and (28), 17(1) and (2), 19, 23(1) to (3) and (6) to (8) and 24 of Schedule 3, and section 28 so far as relating thereto,

(d) paragraph 1 of Schedule 7, and section 63 so far as relating thereto, and

(e) Schedule 8, so far as relating to the Vaccine Damage Payments Act 1979 (c. 17), the Income and Corporation Taxes Act 1988 (c. 1), the Disability (Grants) Act 1993 (c. 14), section 2 of the Social Security Act 1998 (c. 14) and the Income Tax (Earnings and Pensions) Act 2003 (c. 1), and section 67 so far as relating thereto.

(5) The following provisions extend to Northern Ireland only--

(a) section 45, and

(b) Schedule 8, so far as relating to the Social Security Administration (Northern Ireland) Act 1992 (c. 8), and section 67 so far as relating thereto.

(6) The following provisions also extend to the Isle of Man--

(a) sections 56 and 57, section 68, this section and sections 70 and 71,

(b) paragraph 1 of Schedule 7, and section 63 so far as relating thereto, and

70 Commencement

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

(a) sections 41(2) and (3), 44, 45, 54, 55, 59, 61(1)(b) and (2) to (6) and 62,

(b) paragraphs 1 to 4, 10, 11 and 14 of Schedule 5, and section 40 so far as relating thereto,

(d) Schedule 8, so far as relating to--

(i) section 3(5) of the Pneumoconiosis etc. (Workers' Compensation) Act 1979 (c. 41),

(ii) section 140(1A) of the Contributions and Benefits Act,

(iii) sections 71(5), 71ZA(2), 134(8)(a) and 168(3)(d) of the Administration Act,

(iv) section 69(5) of the Social Security Administration (Northern Ireland) Act 1992,

(v) Schedule 13 to the Local Government etc. (Scotland) Act 1994 (c. 39),

(vi) section 38(7)(a) of, and paragraph 81(2) of Schedule 7 to, the Social Security Act 1998 (c. 14), and

(vii) paragraph 65 of Schedule 24 to the Civil Partnership Act 2004 (c. 33),

and section 67 so far as relating thereto.

(2) The remaining provisions of this Act, except--

(a) this section,

(b) sections 64, 65, 66, 68, 69 and 71, and

shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint, and different days may be so appointed for different purposes.

71 Short title

This Act may be cited as the Welfare Reform Act 2007.

SCHEDULES

Section 1

SCHEDULE 1 Employment and support allowance: additional conditions

Part 1 Contributory allowance

Conditions relating to national insurance

1 (1) The first condition is that--

(a) the claimant has actually paid Class 1 or Class 2 contributions in respect of one of the last three complete tax years ("the base tax year") before the beginning of the relevant benefit year,

(b) those contributions must have been paid before the relevant benefit week, and

(c) the earnings factor derived as mentioned in sub-paragraph (2) must be not less than the base tax year's lower earnings limit multiplied by 25.

(2) The earnings factor referred to in sub-paragraph (1)(c) is the aggregate of the claimant's earnings factors derived--

(a) from so much of his earnings as did not exceed the base tax year's upper earnings limit and upon which primary Class 1 contributions have been paid or treated as paid, and

(b) from Class 2 contributions.

(3) Where primary Class 1 contributions have been paid or treated as paid on any part of a person's earnings, sub-paragraph (2)(a) shall have effect as if such contributions had been paid or treated as paid on so much of the earnings as did not exceed the base tax year's upper earnings limit.

(4) Regulations may--

(a) provide for the condition set out in sub-paragraph (1) to be taken to be satisfied in the case of persons who have been entitled to any prescribed description of benefit during any prescribed period or at any prescribed time;

(b) with a view to securing any relaxation of the requirements of that condition in relation to persons who have been so entitled, provide for that condition to apply in relation to them subject to prescribed modifications.

(5) In sub-paragraph (4), "benefit" means--

(a) any benefit within the meaning of section 122(1) of the Contributions and Benefits Act,

(b) any benefit under Parts 7 to 12 of that Act,

(d) a contributory allowance, and

(e) working tax credit.

2 (1) The second condition is that--

(a) the claimant has in respect of the last two complete tax years before the beginning of the relevant benefit year either paid or been credited with Class 1 or Class 2 contributions or been credited with earnings, and

(b) the earnings factor derived as mentioned in sub-paragraph (2) must be not less in each of those years than the year's lower earnings limit multiplied by 50.

(2) The earnings factor referred to in sub-paragraph (1)(b) is the aggregate of the claimant's earnings factors derived--

(a) from so much of his earnings as did not exceed the upper earnings limit for the year and upon which primary Class 1 contributions have been paid or treated as paid or from earnings credited, and

(b) from Class 2 contributions.

3 (1) For the purposes of paragraphs 1 and 2--

(a) "benefit year" means a period which is a benefit year for the purposes of Part 2 of the Contributions and Benefits Act or such other period as may be prescribed for the purposes of this Part of this Schedule;

(b) "Class 1 contributions", "Class 2 contributions" and "primary Class 1 contributions" have the same meaning as in the Contributions and Benefits Act (see section 1 of that Act);

(d) "earnings factor" shall be construed in accordance with sections 22 and 23 of that Act;

(e) "lower earnings limit" and "upper earnings limit" shall be construed in accordance with section 5 of that Act and references to the lower or upper earnings limit of a tax year are to whatever is (or was) the limit in force for that year under that section;

(f) "relevant benefit year" is the benefit year which includes the beginning of the period of limited capability for work which includes the relevant benefit week;

(g) "tax year" means the 12 months beginning with 6th April in any year.

(2) Regulations may provide for sub-paragraph (1)(f) to have effect in prescribed circumstances with prescribed modifications in the case of--

(a) a person who has previously ceased to be entitled to a contributory allowance;

(b) a person who has made a claim for an employment and support allowance in connection with which he failed to satisfy one or both of the conditions in paragraphs 1 and 2.

Condition relating to youth

4 (1) The third condition is that --

(a) the claimant was under 20 or, in prescribed cases, 25 when the relevant period of limited capability for work began,

(b) he is not receiving full-time education,

(c) he satisfies such conditions as may be prescribed with respect to residence or presence in Great Britain (or both), and

(d) there has been a day in the relevant period of limited capability for work--

(i) which was a day on which he was aged at least 16, and

(ii) which was preceded by a period of 196 consecutive days throughout which he had limited capability for work.

(2) In sub-paragraph (1), "relevant period of limited capability for work" means the period of limited capability for work which includes the relevant benefit week.

(3) Regulations may prescribe circumstances in which sub-paragraph (1)(a) does not apply in the case of a person who has previously ceased to be entitled to an employment and support allowance to which he was entitled by virtue of satisfying the condition set out in sub-paragraph (1).

(4) Regulations may make provision about when, for the purposes of sub-paragraph (1)(b), a person is, or is not, to be treated as receiving full-time education.

"Relevant benefit week"

5 In this Part of this Schedule, "relevant benefit week" means the week in relation to which the question of entitlement to an employment and support allowance is being considered.

Part 2 Income-related allowance

6 (1) The conditions are that the claimant--

(a) has an income which does not exceed the applicable amount or has no income;

(b) does not have capital which, or a prescribed part of which, exceeds the prescribed amount;

(d) is not a member of a couple the other member of which is entitled to an income-related allowance, state pension credit, income support or an income-based jobseeker's allowance;

(e) is not engaged in remunerative work;

(f) is not a member of a couple the other member of which is engaged in remunerative work;

(g) is not receiving education.

(2) Where the claimant is a member of a couple, the income and capital of the other member of the couple shall, except in prescribed circumstances, be treated for the purpose of this paragraph as income and capital of the claimant.

(3) Regulations may prescribe circumstances in which, for the purposes of sub-paragraph (1)(e) and (f)--

(a) a person who is not engaged in remunerative work is to be treated as engaged in remunerative work, or

(b) a person who is engaged in remunerative work is to be treated as not engaged in remunerative work.

(4) Regulations may--

(a) make provision about when, for the purposes of sub-paragraph (1)(g), a person is, or is not, to be treated as receiving education;

(b) prescribe circumstances in which sub-paragraph (1)(g) does not apply.

(5) In this paragraph--

"applicable amount" means the amount which, in the claimant's case, is the applicable amount for the purposes of section 4(1);
"couple" means--
(a)
a man and woman who are married to each other and are members of the same household;
(b)
a man and woman who are not married to each other, but are living together as husband and wife otherwise than in prescribed circumstances;
(c)
two people of the same sex who are civil partners of each other and are members of the same household; or
(d)
two people of the same sex who are not civil partners of each other, but are living together as if they were civil partners otherwise than in prescribed circumstances;
"education" has such meaning as may be prescribed;
"income-based jobseeker's allowance" has the same meaning as in the Jobseekers Act 1995 (c. 18);
"remunerative work" has such meaning as may be prescribed.

(6) For the purposes of this paragraph, two people of the same sex are to be regarded as living together as if they were civil partners if, but only if, they would be regarded as living together as husband and wife were they instead two people of the opposite sex.

(7) Regulations may make provision for the preceding provisions of this paragraph to have effect with prescribed modifications in a case where--

(a) the claimant is a husband or wife by virtue of a marriage entered into under a law which permits polygamy,

(b) either party to the marriage has for the time being any spouse additional to the other party, and

(8) Regulations may make provision for the purposes of this paragraph as to circumstances in which people are to be treated as being or not being members of the same household.

Section 22

SCHEDULE 2 Employment and support allowance: supplementary provisions

Limited capability for work

1 Regulations may make provision--

(a) for a person to be treated in prescribed circumstances as having, or as not having, limited capability for work;

(b) for the question of whether a person has limited capability for work to be determined notwithstanding that he is for the time being treated by virtue of regulations under sub-paragraph (a) as having limited capability for work;

(c) for the question of whether a person has limited capability for work to be determined afresh in prescribed circumstances.

Waiting days

2 Except in prescribed circumstances, a person is not entitled to an employment and support allowance in respect of a prescribed number of days at the beginning of a period of limited capability for work.

Periods of less than a week

3 Regulations may make provision in relation to--

(a) entitlement to an employment and support allowance, or

(b) the amount payable by way of such an allowance,

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