Legislation – Welfare Reform Act 2012

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Introduction

Part 1
Universal credit

CHAPTER 1 Entitlement and awards

Introductory

1 Universal credit

2 Claims

Entitlement

3 Entitlement

4 Basic conditions

5 Financial conditions

6 Restrictions on entitlement

Awards

7 Basis of awards

8 Calculation of awards

Elements of an award

9 Standard allowance

10 Responsibility for children and young persons

11 Housing costs

12 Other particular needs or circumstances

CHAPTER 2 Claimant responsibilities

Introductory

13 Work-related requirements: introductory

14 Claimant commitment

Work-related requirements

15 Work-focused interview requirement

16 Work preparation requirement

17 Work search requirement

18 Work availability requirement

Application of work-related requirements

19 Claimants subject to no work-related requirements

20 Claimants subject to work-focused interview requirement only

21 Claimants subject to work preparation requirement

22 Claimants subject to all work-related requirements

Work-related requirements: supplementary

23 Connected requirements

24 Imposition of requirements

25 Compliance with requirements

Reduction of benefit

26 Higher-level sanctions

27 Other sanctions

28 Hardship payments

Administration

29 Delegation and contracting out

CHAPTER 3 Supplementary and general

Supplementary and consequential

30 Supplementary regulation-making powers

31 Supplementary and consequential amendments

32 Power to make supplementary and consequential provision etc

Universal credit and other benefits

33 Abolition of benefits

34 Universal credit and state pension credit

35 Universal credit and working-age benefits

36 Migration to universal credit

General

37 Capability for work or work-related activity

38 Information

39 Couples

40 Interpretation of Part 1

Regulations

41 Pilot schemes

42 Regulations: general

43 Regulations: procedure

Part 2
Working-age benefits

CHAPTER 1 Jobseeker’s allowance

Claimant responsibilities for interim period

44 Claimant commitment for jobseeker’s allowance

45 Interviews

46 Sanctions

47 Procedure for regulation-making powers

48 Consequential amendments

Claimant responsibilities after introduction of universal credit

49 Claimant responsibilities for jobseeker’s allowance

CHAPTER 2 Employment and support allowance

Conditions of entitlement

50 Dual entitlement

51 Period of entitlement to contributory allowance

52 Further entitlement after time-limiting

53 Condition relating to youth

Claimant responsibilities for interim period

54 Claimant commitment for employment and support allowance

55 Work experience etc

56 Hardship payments

Claimant responsibilities after introduction of universal credit

57 Claimant responsibilities for employment and support allowance

CHAPTER 3 Income support

58 Entitlement of lone parents to income support etc

59 Claimant commitment for income support

CHAPTER 4 Miscellaneous

Claimants dependent on drugs etc

60 Claimants dependent on drugs etc

Entitlement to work

61 Entitlement to work: jobseeker’s allowance

62 Entitlement to work: employment and support allowance

63 Entitlement to work: maternity allowance and statutory payments

Part 3
Other benefit changes

64 Injuries arising before 5 July 1948

65 Persons under 18

66 Trainees

67 Restriction on new claims for industrial death benefit

68 Determinations

69 Housing benefit: determination of appropriate maximum

70 Ending of discretionary payments

71 Purposes of discretionary payments

72 Determination of amount or value of budgeting loan

73 External provider social loans and community care grants

74 State pension credit: carers

75 State pension credit: capital limit

76 Calculation of working tax credit

Part 4
Personal independence payment

77 Personal independence payment

78 Daily living component

79 Mobility component

80 Ability to carry out daily living activities or mobility activities

81 Required period condition: further provision

82 Terminal illness

83 Persons of pensionable age

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

85 Care home residents

86 Hospital in-patients

87 Prisoners and detainees

88 Claims, awards and information

89 Report to Parliament

90 Abolition of disability living allowance

91 Amendments

92 Power to make supplementary and consequential provision

93 Transitional

94 Regulations

95 Interpretation of Part 4

Part 5
Social security: general

96 Benefit cap

96A Benefit cap: review

97 Benefit cap: supplementary

98 Claims and awards

99 Powers to require information relating to claims and awards

100 Payments to joint claimants

101 Payments on account

102 Power to require consideration of revision before appeal

103 Supersession of decisions of former appellate bodies

104 Electronic communications

105 Recovery of benefit payments

106 Deduction from earnings: other cases

107 Recovery of child benefit and guardian’s allowance

108 Application of Limitation Act 1980

109 Recovery of fines etc by deductions from employment and support allowance

110 Powers to require information relating to investigations

111 Time limits for legal proceedings

112 Prosecution powers of local authorities

113 Penalty in respect of benefit fraud not resulting in overpayment

114 Amount of penalty

115 Period for withdrawal of agreement to pay penalty

116 Civil penalties for incorrect statements and failures to disclose information

117 Benefit offences: disqualifying and sanctionable benefits

118 Benefit offences: period of sanction

119 Benefit offences: sanctions for repeated benefit fraud

120 Loss of tax credits

121 Cautions

122 Tax credit fraud: investigation

123 Information-sharing for prevention etc of tax credit fraud

124 Tax credit fraud: prosecution and penalties

125 Unauthorised disclosure of information relating to tax credit offences

126 Tax credits: transfer of functions etc

127 Information-sharing between Secretary of State and HMRC

128 Information-sharing between Secretary of State and DPP

129 Unlawful disclosure of information supplied under section 128

130 Information-sharing in relation to provision of overnight care etc

131 Information-sharing in relation to welfare services etc

132 Unlawful disclosure of information supplied under section 131

133 Sections 130 to 132: supplementary

134 Information-sharing for social security or employment purposes etc

Part 6
Miscellaneous

135 Functions of registration service

136 Supporting maintenance agreements

137 Collection of child support maintenance

138 Indicative maintenance calculations

139 Recovery of child support maintenance by deduction from benefit

140 Fees

141 Review of fees regulations

142 Exclusion from individual voluntary arrangements

143 Standards of decision-making

144 Use of jobcentres by sex industry

145 Social Mobility and Child Poverty Commission

146 UK child poverty strategies

Part 7
Final

147 Repeals

148 Financial provision

149 Extent

150 Commencement

151 Short title

SCHEDULES

SCHEDULE 1 Universal credit: supplementary regulation-making powers

SCHEDULE 2 Universal credit: amendments

SCHEDULE 3 Abolition of benefits: consequential amendments

SCHEDULE 4 Housing credit element of state pension credit

SCHEDULE 5 Universal credit and other working-age benefits

SCHEDULE 6 Migration to universal credit

SCHEDULE 7 Jobseeker’s allowance in interim period: consequential amendments

SCHEDULE 8 Social fund discretionary payments: consequential amendments

SCHEDULE 9 Personal independence payment: amendments

SCHEDULE 10 Personal independence payment: transitional

SCHEDULE 11 Power to require consideration of revision before appeal

SCHEDULE 12 Supersession of decisions of former appellate bodies

SCHEDULE 13 Social Mobility and Child Poverty Commission

SCHEDULE 14 Repeals

Changes to legislation:

Welfare Reform Act 2012, Part 3 is up to date with all changes known to be in force on or before 29 October 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

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Changes to Legislation

Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.


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Changes and effects yet to be applied to Part 3:

Part 3Other benefit changes

Industrial injuries benefit

64Injuries arising before 5 July 1948

(1)

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

(a)

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

(b)

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

(c)

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

(d)

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

(e)

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

(f)

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

(2)

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

(3)

The Secretary of State may make regulations—

(a)

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

(b)

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

(4)

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

(5)

Regulations under this section are to be made by statutory instrument.

(6)

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

65Persons under 18

(1)

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

(2)

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

(a)

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

(b)

in the Table, column (3) is repealed.

(3)

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

(a)

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

(b)

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

66Trainees

(1)

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

“95AEmployment training schemes etc

(1)

In the industrial injuries and diseases provisions any reference to employed earner’s employment shall be taken to include participation in an employment training scheme or employment training course of a prescribed description (and “employed earner” shall be construed accordingly).

(2)

In those provisions, a reference to an employer, in relation to any such participation, shall be taken to be a prescribed person.

(3)

In this section “industrial injuries and diseases provisions” has the same meaning as in section 95(4) above.”

(2)

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

(3)

The Secretary of State may make regulations—

(a)

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

(b)

for claims for such payments to be treated as claims for industrial injuries benefit.

(4)

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

(5)

Regulations under this section are to be made by statutory instrument.

(6)

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

67Restriction on new claims for industrial death benefit

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

“(1A)

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

68Determinations

(1)

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

(2)

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

Housing benefit

69Housing benefit: determination of appropriate maximum

(1)

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

(2)

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

(3)

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

“(5)

The regulations may, for the purpose of determining the AMHB, provide for the amount of the liability mentioned in section 130(1)(a) above to be taken to be an amount other than the actual amount of that liability (and, without prejudice to the generality of this subsection, may provide for it to be taken to be the amount of a rent officer determination).

(6)

The regulations may, for that purpose, make provision for determining the amount of liability under section 130(1)(a) above which a person is treated as having by virtue of regulations under section 137(2)(j) below (and, without prejudice to the generality of this subsection, may provide for that amount to be the amount of a rent officer determination).”

(4)

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

“(ab)

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

Annotations:
Commencement Information

I8S. 69 in force at 27.11.2012 for specified purposes and 1.1.2013 in so far as not already in force by S.I. 2012/2946, art. 2(1)

Social fund

70Ending of discretionary payments

(1)

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

(2)

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

(3)

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

(a)

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

(b)

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

(4)

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

(5)

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

(6)

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

(7)

An order under this section may—

(a)

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

(b)

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

(8)

An order under this section is to be made by statutory instrument.

(9)

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

(10)

Schedule 8 contains consequential amendments.

71Purposes of discretionary payments

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

(i)

other needs, and

(ii)

in the case of payments by way of budgeting loan, those needs for which provision is made by paragraph (a),”.

72Determination of amount or value of budgeting loan

(1)

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

(2)

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

“(da)

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

(3)

After subsection (4) there is inserted—

“(4ZA)

A direction under subsection (4)(da) may require the sum to be determined by applying, or by a method that includes applying, a multiplier specified in the direction in circumstances specified in the direction to the most recent relevant sum published by the Secretary of State.

(4ZB)

A relevant sum is a sum determined from time to time by reference to so much of any relevant allocation under section 168(1) to (4) of the Administration Act as is available for making payments.”

73External provider social loans and community care grants

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

State pension credit

74State pension credit: carers

(1)

The State Pension Credit Act 2002 is amended as follows.

(2)

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

“(a)

the claimant has regular and substantial caring responsibilities, or

(b)

the claimant is a member of a couple the other member of which has such responsibilities,”.

(3)

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

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

75State pension credit: capital limit

(1)

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

(a)

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

(b)

at the end there is inserted“and

(d)

his capital does not exceed a prescribed amount”.

(2)

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

“(za)

section 1(2)(d),”.

Working tax credit

76Calculation of working tax credit

(1)

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

(2)

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

(3)

In this section—

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

the Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs;

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