Welfare Reform Act 2007 (c. 5)

(The document as of February, 2008)

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" (f) does not have limited capability for work; " .

(3) In section 3 (income-based conditions), in subsection (1)--

(a) in paragraph (b), for "or state pension credit" substitute ", state pension credit or an income-related employment and support allowance";

(b) after paragraph (dd) insert--

" (de) is not a member of a couple the other member of which is entitled to an income-related employment and support allowance; " .

(4) In section 3A (conditions for claims by joint-claim couples), in subsection (1), after paragraph (cc) insert--

" (cd) that neither member of the couple is entitled to an income-related employment and support allowance; " .

(5) In section 35 (interpretation)--

(a) in subsection (1), after the definition of "income-based jobseeker's allowance" insert--

" "income-related employment and support allowance" means an income-related allowance under Part 1 of the Welfare Reform Act 2007 (employment and support allowance); " ;

(b) in subsection (2), for "capable of work" substitute "limited capability for work".

(6) In Schedule 1 (supplementary provisions), for paragraph 2, and the italic cross-heading immediately preceding it, substitute--

" Limited capability for work

2 (1) The question whether a person has, or does not have, limited capability for work shall be determined, for the purposes of this Act, in accordance with the provisions of Part 1 of the Welfare Reform Act 2007 (employment and support allowance).

(2) References in Part 1 of the Welfare Reform Act 2007 to the purposes of that Part shall be construed, where the provisions of that Part have effect for the purposes of this Act, as references to the purposes of this Act. "

Pensions Act 1995 (c. 26)

13 In Schedule 4 to the Pensions Act 1995 (equalisation of pensionable ages for men and women), in paragraph 1 (enactments for the purposes of which the rules for determining pensionable age apply) for "and the State Pension Credit Act 2002" substitute ", the State Pension Credit Act 2002 and Part 1 of the Welfare Reform Act 2007".

Children (Scotland) Act 1995 (c. 36)

14 In section 22 of the Children (Scotland) Act 1995 (promotion of welfare of children in need), in subsection (4) (under which persons in receipt of certain benefits cannot be required to repay financial assistance), at the end insert " ; or

Employment Tribunals Act 1996 (c. 17)

15 (1) The Employment Tribunals Act 1996 is amended as follows.

(2) In section 16 (power to provide for recoupment of benefits)--

(a) in subsections (3)(a) and (c) and (5)(cc) and (e), for "or income support" substitute ", income support or income-related employment and support allowance";

(b) in subsection (3)(b), for "either benefit" substitute "jobseeker's allowance, income support or income-related employment and support allowance";

" (b) so as to apply to all or any of the benefits mentioned in subsection (3). "

(3) In section 17 (recoupment: further provisions), in subsection (1), for "or income support", in both places, substitute ", income support or income-related employment and support allowance".

(4) In that section, at the end insert--

" (5) In this section and section 16 "income-related employment and support allowance" means an income-related allowance under Part 1 of the Welfare Reform Act 2007 (employment and support allowance). "

Education Act 1996 (c. 56)

16 (1) The Education Act 1996 is amended as follows.

(2) In section 457 (charges and remissions policies), in subsection (4)(b) (cases where receipt of benefit by pupil's parent to give rise to remission), after sub-paragraph (ii) insert--

" (iia) in receipt of an income-related employment and support allowance, " .

(3) In section 512ZB (provision of free school lunches and milk), in subsection (4) (eligibility for free lunches), in paragraphs (a) and (b), after sub-paragraph (ii) insert--

" (iia) in receipt of an income-related employment and support allowance, " .

(4) In section 579 (interpretation), in subsection (1), after the definition of "higher education" insert--

" "income-related employment and support allowance" means an income-related allowance under Part 1 of the Welfare Reform Act 2007 (employment and support allowance); " .

Social Security Act 1998 (c. 14)

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

(2) In section 2 (use of computers), in subsection (2) (meaning of "relevant enactment"), after paragraph (i) insert " ; or

"(j) Part 1 of the Welfare Reform Act 2007. "

(3) In section 8 (which provides for any decision on a claim for a relevant benefit, or under or by virtue of a relevant enactment, to be made by the Secretary of State)--

(a) in subsection (3) (definition of "relevant benefit"), after paragraph (b) insert--

" (ba) an employment and support allowance; " ;

(b) in subsection (4) (definition of "relevant enactment"), for "or the State Pension Credit Act 2002" substitute ", the State Pension Credit Act 2002 or Part 1 of the Welfare Reform Act 2007".

(4) In section 11 (regulations with respect to decisions), in subsection (3), in the definition of "the current legislation", for "and the State Pension Credit Act 2002" substitute ", the State Pension Credit Act 2002 and Part 1 of the Welfare Reform Act 2007".

(5) In section 27 (restrictions on entitlement to benefit in certain cases of error), in subsection (7), in the definition of "benefit"--

(a) after paragraph (dd) insert--

" (de) an employment and support allowance; " ;

(b) in paragraph (e), for "to (dd)" substitute "to (de)".

(6) In section 28 (correction of errors and setting aside of decisions), in subsection (3) (definition of "relevant enactment"), at the end insert " ; or

(g) Part 1 of the Welfare Reform Act 2007. "

(7) In section 31 (incapacity for work), after subsection (1) insert--

" (1A) Regulations may provide that a determination that a person is disqualified for any period in accordance with regulations under section 18(1) to (3) of the Welfare Reform Act 2007 shall have effect for such purposes as may be prescribed as a determination that he is to be treated as not having limited capability for work for that period, and vice versa. "

(8) In Schedule 2 (decisions against which no appeal lies), in paragraph 6(b) (alteration of rates of benefit), at the end insert " , or

(iv) section 159C(1)(b) of that Act (employment and support allowance). "

(9) In Schedule 3 (decisions against which an appeal lies), in paragraph 3 (payability of benefit), at the end insert " ; or

(g) section 18 of the Welfare Reform Act 2007. "

Welfare Reform and Pensions Act 1999 (c. 30)

18 In section 72 of the Welfare Reform and Pensions Act 1999 (power to make regulations about the use and supply of social security information), in subsection (3) (provisions in connection with which the power is exercisable), at the end insert " , or

(d) Part 1 of the Welfare Reform Act 2007. "

Immigration and Asylum Act 1999 (c. 33)

19 In section 115 of the Immigration and Asylum Act 1999 (exclusion from benefits), in subsection (1) (benefits to which entitlement excluded), after "State Pension Credit Act 2002" insert "or to income-related allowance under Part 1 of the Welfare Reform Act 2007 (employment and support allowance)".

Child Support, Pensions and Social Security Act 2000 (c. 19)

20 (1) The Child Support, Pensions and Social Security Act 2000 is amended as follows.

(2) In section 62 (loss of benefit for breach of community order), after subsection (4) insert--

" (4A) The Secretary of State may by regulations provide that, where the relevant benefit is an employment and support allowance, any income-related allowance (within the meaning of Part 1 of the Welfare Reform Act 2007) shall be payable, during the whole or part of the prescribed period, as if one or more of the following applied--

(a) the rate of the allowance were such reduced rate as may be prescribed;

(b) the allowance were payable only if there is compliance by the offender with such obligations with respect to the provision of information as may be imposed by the regulations;

(3) In that section, in subsection (8), in the definition of "relevant benefit", after paragraph (b) insert--

" (ba) an employment and support allowance; " .

(4) In section 65 (loss of benefit regulations), in subsection (4) (regulations subject to affirmative resolution procedure), in paragraph (c), after "section 62(4)" insert "or (4A)".

Local Government Act 2000 (c. 22)

21 In section 94 of the Local Government Act 2000 (disclosure of information), in subsection (1) (benefit information which may be disclosed), for "or state pension credit" substitute ", state pension credit or an income-related employment and support allowance".

Adults with Incapacity (Scotland) Act 2000 (asp 4)

22 (1) The Adults with Incapacity (Scotland) Act 2000 is amended as follows.

(2) In section 39(1)(a) (which excepts from matters which may be managed those relating to benefit under the Contributions and Benefits Act), at the end insert "or Part 1 of the Welfare Reform Act 2007".

(3) In section 41(a) (duties of managers in relation to matters which may be managed), at the end insert "or Part 1 of the Welfare Reform Act 2007".

Social Security Fraud Act 2001 (c. 11)

23 (1) The Social Security Fraud Act 2001 is amended as follows.

(2) In section 7 (loss of benefit for commission of benefit offences), after subsection (4A) insert--

" (4B) The Secretary of State may by regulations provide that, where the sanctionable benefit is employment and support allowance, any income-related allowance shall be payable, during the whole or a part of any period comprised in the disqualification period, as if one or more of the following applied--

(a) the rate of the allowance were such reduced rate as may be prescribed;

(b) the allowance were payable only if there is compliance by the offender with such obligations with respect to the provision of information as may be imposed by the regulations;

(3) In that section, in subsection (8) (interpretation), in the definition of "disqualifying benefit", after paragraph (aa) insert--

" (ab) any benefit under Part 1 of the Welfare Reform Act 2007 (employment and support allowance) or under any provision having effect in Northern Ireland corresponding to that Part; " .

(4) In section 9 (effect of offences on benefits of members of offender's family), in subsection (1) (benefits to which section applies), after paragraph (bb) insert--

" (bc) employment and support allowance; " .

(5) In that section, after subsection (4A) insert--

" (4B) In relation to cases in which the benefit is employment and support allowance, the provision that may be made by virtue of subsection (2) is provision that, in the case of the offender's family member, any income-related allowance shall be payable, during the whole or a part of any period comprised in the relevant period, as if one or more of the following applied--

(a) the rate of the allowance were such reduced rate as may be prescribed;

(b) the allowance were payable only if there is compliance by the 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;

(6) In section 10 (power to supplement and mitigate loss of benefit provisions), in subsection (3) (definition of "social security benefit"), after paragraph (bb) insert--

" (bc) any benefit under Part 1 of the Welfare Reform Act 2007 (employment and support allowance) or under any provision having effect in Northern Ireland corresponding to that Part; " .

(7) In section 11 (loss of benefit regulations), in subsection (3) (regulations subject to affirmative resolution procedure), in paragraph (c), after "(4A)", in both places, insert ", (4B)".

(8) In section 13 (interpretation of sections 7 to 12), after the definitions by reference to the Jobseekers Act 1995 insert--

" "income-related allowance" has the same meaning as in Part 1 of the Welfare Reform Act 2007 (employment and support allowance); " .

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

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

(2) In section 658(4) (amount charged to tax to be calculated in accordance with section 661), after "carer's allowance," insert "contributory employment and support allowance,".

(3) In the table of taxable benefits in section 660 ("Table A"), after the entry relating to "Carer's allowance" insert--

" Contributory employment and support allowance	WRA 2007	Section 1(2)(a)
	Any provision made for Northern Ireland which corresponds to section 1(2)(a) of WRA 2007 "

(4) In section 661(1) (social security income taxable on an accruals basis), after "carer's allowance," insert--

" contributory employment and support allowance, " .

(5) In the table of benefits wholly exempt from tax in section 677 ("Table B"), after the entry relating to "Housing benefit" insert--

" Income-related employment and support allowance	WRA 2007	Section 1(2)(b)
	Any provision made for Northern Ireland which corresponds to section 1(2)(b) of WRA 2007 "

(6) In Part 1 of Schedule 1 (abbreviations of Acts), at the end insert--

" WRA 2007

The Welfare Reform Act 2007 "

Section 29

SCHEDULE 4 Transition relating to Part 1

General power to provide for transition relating to Part 1

1 (1) Regulations may make such provision as the Secretary of State considers necessary or expedient--

(a) in connection with the coming into force of any provision of, or repeal relating to, this Part, or

(b) otherwise for the purposes of, or in connection with, the transition to employment and support allowance.

(2) The following provisions of this Schedule are not to be taken as prejudicing the generality of sub-paragraph (1).

Pre-commencement claims

2 Regulations may--

(a) make provision for a claim for incapacity benefit, income support or severe disablement allowance which is made before the appointed day to be treated wholly or partly as a claim for an employment and support allowance;

(b) make provision for the purpose of enabling claims for an employment and support allowance to be made before the appointed day for a period beginning on or after that day.

Post-commencement claims

3 Regulations may--

(a) make provision excluding the making of a claim for incapacity benefit or severe disablement allowance on or after the appointed day;

(b) make provision for a claim for incapacity benefit, income support or severe disablement allowance which is made on or after the appointed day to be treated in prescribed circumstances as a claim for an employment and support allowance;

(c) make provision for a claim for an employment and support allowance to be treated wholly or partly as a claim for incapacity benefit, income support or severe disablement allowance;

(d) make provision excluding the making of a claim for an employment and support allowance by a person who is entitled to an existing award.

Award of employment and support allowance for pre-commencement period

4 Regulations may--

(a) make provision for an employment and support allowance of such a kind as the regulations may provide to be awarded in prescribed circumstances for a period before the appointed day;

(b) make provision with respect to conditions of entitlement in relation to an award under sub-paragraph (a) and the amount payable by way of an allowance under such an award.

Matching of awards of employment and support allowance

5 (1) For the purposes of this paragraph, an award of an employment and support allowance is one that falls to be made on matching terms if--

(a) it is made in pursuance of a claim by a person who was previously entitled to an existing award, and

(b) had it continued to be possible to make an award of incapacity benefit, income support on grounds of incapacity for work, or severe disablement allowance, the award which would have been made to him ("the hypothetical award") would have been made on the basis of the linking of periods of incapacity for work.

(2) Regulations may--

(a) make provision for the purpose of securing that an award of an employment and support allowance that falls to be made on matching terms is made on terms which match in whole or part the hypothetical award;

(b) make provision for the modification of matched awards for the purpose of securing that the person with the award is put in the position he would have been had he been made the hypothetical award which was then the subject of conversion under paragraph 7.

(3) In sub-paragraph (2)(b), the reference to matched awards is to awards of an employment and support allowance that have been the subject of matching in pursuance of regulations under sub-paragraph (2)(a).

6 (1) For the purposes of this paragraph an award of an employment and support allowance is one which falls to be made on matching terms if--

(a) it is made in pursuance of a claim by a person who was previously entitled to an existing award,

(b) had he continued to be entitled to that award, it would have been the subject of conversion under paragraph 7 before the date of his claim for an employment and support allowance, and

(c) had it continued to be possible to make an award of incapacity benefit, income support on grounds of incapacity for work, or severe disablement allowance, the award which would have been made to him would have been made on the basis of the linking of periods of incapacity for work.

(2) Regulations may make provision for the purpose of securing that an award of an employment and support allowance that falls to be made on matching terms is made on terms which match in whole or part the award that would have resulted from conversion under paragraph 7 had entitlement to the existing award continued.

Treatment of existing awards

7 (1) Regulations may--

(a) make provision for converting existing awards into awards of an employment and support allowance, and with respect to the terms of conversion;

(b) make provision for the termination of existing awards in prescribed circumstances.

(2) Regulations under sub-paragraph (1)(a) may, in particular--

(a) make provision for conversion of an existing award--

(i) on application, in accordance with the regulations, by the person entitled to the award, or

(ii) without application;

(b) make provision about the conditions to be satisfied in relation to an application for conversion;

(d) provide for an existing award to have effect after conversion as an award of an employment and support allowance--

(i) of such a kind,

(ii) for such period,

(iii) of such an amount, and

(iv) subject to such conditions,

as the regulations may provide;

(e) make provision for determining in connection with conversion of an existing award whether a person has limited capability for work-related activity.

(3) Regulations under sub-paragraph (1)(a) may, in relation to existing awards which have been the subject of conversion under this paragraph, include provision about revision under section 9 of the Social Security Act 1998 (c. 14), or supersession under section 10 of that Act in respect of the period before conversion.

Transitional allowances

8 (1) Regulations may--

(a) make provision for a person's continuing entitlement to an employment and support allowance awarded by virtue of regulations under paragraph 7 (a "transitional allowance") to be determined by reference to such provision as may be made by the regulations;

(b) make provision for the review of an award of a transitional allowance;

(d) make provision for this Part, or any other enactment relating to social security, to have effect with prescribed modifications in relation to a person with a transitional allowance;

(e) make provision for the purpose of enabling a transitional allowance to be revised under section 9 of the Social Security Act 1998 (c. 14) or superseded under section 10 of that Act.

(2) In this paragraph "enactment" includes an enactment contained in subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30)).

9 (1) Regulations may prescribe circumstances in which a person who is entitled to a transitional allowance immediately before reaching pensionable age is to be treated as having satisfied the condition in paragraph 5(2) of Schedule 3 to the Contributions and Benefits Act (first contribution condition for entitlement to state pension).

(2) In this paragraph, "pensionable age" has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995 (c. 26).

Post-commencement up-rating of incapacity benefit and severe disablement allowance

10 Regulations may provide for section 150 of the Administration Act (annual up-rating of benefits), so far as relating to--

(a) incapacity benefit under section 30A of the Contributions and Benefits Act, or

(b) severe disablement allowance,

to have effect with prescribed modifications in relation to tax years beginning on or after the appointed day.

Interpretation

11 In this Schedule--

"appointed day" means the day appointed for the coming into force of section 1;
"existing award" means--
(a)
an award of incapacity benefit,
(b)
an award of severe disablement allowance, and
(c)
an award of income support made to a person to whom regulation 6(4)(a) or 13(2)(b) or (bb) of, or paragraph 7(a) or (b), 10, 12 or 13 of Schedule 1B to, the Income Support (General) Regulations 1987 (S.I. 1987/1967) (persons incapable of work or disabled) applies;
"incapacity benefit" (except in paragraph 10(a)) means--
(a)
incapacity benefit under section 30A, 40 or 41 of the Contributions and Benefits Act,
(b)
long-term incapacity benefit under regulation 11(4) of the Social Security (Incapacity Benefit) (Transitional) Regulations 1995 (S.I. 1995/310) (former sickness benefit), and
(c)
invalidity benefit which has effect by virtue of regulation 17(1) of those regulations as if it were long-term incapacity benefit;
"severe disablement allowance" means severe disablement allowance under section 68 of that Act (as it has effect by virtue of article 4 of the Welfare Reform and Pensions Act 1999 (Commencement No. 9, and Transitional and Savings Provisions) Order 2000 (S.I. 2000/2958) (C. 89));
"transitional allowance" has the meaning given by paragraph 8(1)(a).

Section 40

SCHEDULE 5 Minor and consequential amendments relating to Part 2

Social Security Contributions and Benefits Act 1992 (c. 4)

1 (1) The Contributions and Benefits Act is amended as follows.

(2) In section 123(4) (income-related benefits), for the words before paragraph (a) substitute "Each billing authority and in Scotland each local authority".

(3) In section 130(2) (housing benefit: qualifying payments), for paragraph (a) substitute--

" (a) payments to a billing authority or to a local authority in Scotland in respect of council tax; " .

(4) In section 137(1) (interpretation of Part 7), after the definition of "industrial injuries scheme" insert--

" "local authority" in relation to Scotland means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994; " .

Social Security Administration Act 1992 (c. 5)

2 The Administration Act is amended as follows.

3 In section 134 (arrangements for housing benefit)--

(a) in subsection (8)(a) before "war" in each place insert "prescribed";

(b) in that subsection omit "or surviving civil partner's";

" (14) In this section "war widow's pension" includes any corresponding pension payable to a widower or surviving civil partner. "

4 In section 139 (arrangements for council tax benefit)--

(a) in subsection (6)(a) before "war" in each place insert "prescribed";

(b) in subsection (11) omit the definition of "war disablement pension" and for the definition of "war widow's pension" substitute--

" "war widow's pension" includes any corresponding pension payable to a widower or surviving civil partner. "

5 In section 139E (information about attainment of standards), in subsection (1)--

(a) for "section 139D(3)" substitute "section 139D(3A) or (3B)";

(b) after paragraph (a) insert--

" (aa) whether the authority has taken the action which it has been directed to take; " ;

6 (1) Section 139F (enforcement notices) is amended as follows.

(2) In subsection (1)--

(a) for "section 139D(3)" substitute "section 139D(3A) or (3B)";

(b) after paragraph (a) insert--

" (aa) is not satisfied that the authority has taken the action which it has been directed to take; " ;

(3) In subsection (2)(a), after "paragraph (a)" insert ", (aa)".

(4) In subsection (4), at the beginning insert "If the notice identifies directions under section 139D(3A),".

(5) After subsection (4) insert--

" (4A) If the notice identifies directions under section 139D(3B), the authority's response shall either--

(a) state that the authority has taken the action, or is likely to take it within the time specified in the directions, and justify that statement; or

(b) state that the authority has not taken the action, or is not likely to take it within that time, and (if the authority wishes) give reasons why a determination under section 139G below should not be made or should not include any particular provision. "

7 (1) Section 139G (enforcement determinations) is amended as follows.

(2) In subsection (1)--

(a) in paragraph (a) after "the standards" insert "or taken the action";

(b) in paragraph (b) after "those standards" insert "or take that action".

(3) In subsections (3) and (5)(c), after "the standards" insert "or the taking of the action".

8 (1) In section 140A(2)(c) (subsidies to certain authorities), for "or levying authority" substitute "and to each local authority in Scotland".

(2) Sub-paragraph (1) must be taken to have had effect from 1 April 1997 (the date of the coming into force of section 140A of that Act).

9 In section 140B(5A) (calculation of amount of subsidy), for "section 139D(3)" substitute "section 139D(3A) or (3B)".

10 In section 191 (interpretation), in the definition of "prescribe" at the end insert "and "prescribed" must be construed accordingly".

Local Government etc. (Scotland) Act 1994 (c. 39)

11 In Schedule 13 to the Local Government etc. (Scotland) Act 1994 (minor and consequential amendments)--

(a) paragraph 174(4) is omitted;

(b) paragraph 175(3) extends also to England and Wales and, accordingly, the amendments made by that sub-paragraph extend also to England and Wales.

Housing Act 1996 (c. 52)

12 In section 122(5) of the Housing Act 1996 for "regulations or order as are mentioned in subsection (3) or (4)" substitute "order as is mentioned in subsection (4)".

Child Support, Pensions and Social Security Act 2000 (c. 19)

13 In Schedule 7 to the Child Support, Pensions and Social Security Act 2000 (housing benefit and council tax benefit: revisions and appeals), in paragraph 1(2), after paragraph (b) insert--

" (c) a decision of a relevant authority under or by virtue of section 75 or 76 of the Administration Act that an amount of housing benefit or council tax benefit is recoverable; " .

Civil Partnership Act 2004 (c. 33)

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