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

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

Part 2Working-age benefits

CHAPTER 1Jobseeker’s allowance

Claimant responsibilities for interim period

46Sanctions

(1)

For section 19 of the Jobseekers Act 1995 (circumstances in which a jobseeker’s allowance is not payable) there is substituted—

“19Higher-level sanctions

(1)

The amount of an award of a jobseeker’s allowance is to be reduced in accordance with this section in the event of a failure by the claimant which is sanctionable under this section.

(2)

It is a failure sanctionable under this section if a claimant—

(a)

through misconduct loses employment as an employed earner;

(b)

without a good reason voluntarily leaves such employment;

(c)

without a good reason refuses or fails to apply for, or accept if offered, a situation in any employment which an employment officer has informed him is vacant or about to become vacant;

(d)

without a good reason neglects to avail himself of a reasonable opportunity of employment;

(e)

without a good reason fails to participate in any scheme within section 17A(1) which is prescribed for the purposes of this section.

(3)

For the purposes of subsection (2)(b), in such circumstances as may be prescribed, including in particular where a person has been dismissed by his employer by reason of redundancy within the meaning of section 139(1) of the Employment Rights Act 1996 after volunteering or agreeing to be so dismissed, a person who might otherwise be treated as having left his employment voluntarily is to be treated as not having left voluntarily.

(4)

Regulations are to provide for—

(a)

the amount of a reduction under this section;

(b)

the period for which such a reduction has effect, not exceeding three years in relation to any failure sanctionable under this section.

(5)

Regulations under subsection (4)(b) may in particular provide for the period of a reduction to depend on either or both of the following—

(a)

the number of failures by the claimant sanctionable under this section;

(b)

the period between such failures.

(6)

Regulations may provide—

(a)

for cases in which no reduction is to be made under this section;

(b)

for a reduction under this section made in relation to an award that is terminated to be applied to any new award made within a prescribed period of the termination.

(7)

During any period for which the amount of a joint-claim jobseeker’s allowance is reduced under this section by virtue of a failure by one of the claimants which is sanctionable under this section, the allowance is payable to the other member of the couple.

19AOther sanctions

(1)

The amount of an award of a jobseeker’s allowance is to be reduced in accordance with this section in the event of a failure by the claimant which is sanctionable under this section.

(2)

It is a failure sanctionable under this section if a claimant—

(a)

without a good reason fails to comply with regulations under section 8(1) or (1A);

(b)

without a good reason fails to comply with regulations under section 17A;

(c)

without a good reason refuses or fails to carry out a jobseeker’s direction which was reasonable having regard to his circumstances;

(d)

without a good reason neglects to avail himself of a reasonable opportunity of a place on a training scheme or employment programme;

(e)

without a good reason refuses or fails to apply for, or accept if offered, a place on such a scheme or programme which an employment officer has informed him is vacant or about to become vacant;

(f)

without a good reason gives up a place on such a scheme or programme or fails to attend such a scheme or programme having been given a place on it;

(g)

through misconduct loses a place on such a scheme or programme.

(3)

But a failure is not sanctionable under this section if it is also sanctionable under section 19.

(4)

Regulations are to provide for—

(a)

the amount of a reduction under this section;

(b)

the period for which such a reduction has effect.

(5)

Regulations under subsection (4)(b) may provide that a reduction under this section in relation to any failure is to have effect for—

(a)

a period continuing until the claimant meets a compliance condition specified by the Secretary of State,

(b)

a fixed period not exceeding 26 weeks which is—

(i)

specified in the regulations, or

(ii)

determined in any case by the Secretary of State, or

(c)

a combination of both.

(6)

In subsection (5)(a) “compliance condition” means—

(a)

a condition that the failure ceases, or

(b)

a condition relating to—

(i)

future compliance with a jobseeker’s direction or any requirement imposed under section 8(1) or (1A) or 17A of this Act, or

(ii)

future avoidance of the failures referred to in subsection (2)(d) to (g).

(7)

A compliance condition specified under subsection (5)(a) may be—

(a)

revoked or varied by the Secretary of State;

(b)

notified to the claimant in such manner as the Secretary of State may determine.

(8)

The period fixed under subsection (5)(b) may in particular depend on either or both of the following—

(a)

the number of failures by the claimant sanctionable under this section;

(b)

the period between such failures.

(9)

Regulations may provide—

(a)

for cases in which no reduction is to be made under this section;

(b)

for a reduction under this section made in relation to an award that is terminated to be applied to any new award made within a prescribed period of the termination.

(10)

During any period for which the amount of a joint-claim jobseeker’s allowance is reduced under this section by virtue of a failure by one of the claimants which is sanctionable under this section, the allowance is payable to the other member of the couple.

(11)

In this section—

(a)

jobseeker’s direction” means a direction given by an employment officer (in such manner as he thinks fit) with a view to achieving one or both of the following—

(i)

assisting the claimant to find employment;

(ii)

improving the claimant’s prospects of being employed;

(b)

“training scheme“ and “employment programme” have such meaning as may be prescribed.

19BClaimants ceasing to be available for employment etc

(1)

Regulations may make provision for reduction of the amount of an award of a jobseeker’s allowance other than a joint-claim jobseeker’s allowance if the claimant—

(a)

was previously entitled to such an allowance or was a member of a couple entitled to a joint-claim jobseeker’s allowance, and

(b)

ceased to be so entitled by failing to comply with the condition in section 1(2)(a) or (c) (availability for employment and actively seeking employment).

(2)

Regulations may make provision for reduction of the amount of a joint-claim jobseeker’s allowance if one of the claimants—

(a)

was previously entitled to a jobseeker’s allowance other than a joint-claim jobseeker’s allowance, and

(b)

ceased to be so entitled by failing to comply with the condition in section 1(2)(a) or (c).

(3)

Regulations may make provision for reduction of the amount of an award of joint-claim jobseeker’s allowance if—

(a)

the couple were previously entitled to a joint-claim jobseeker’s allowance but ceased to be so entitled by either or both of them failing to comply with the condition in section 1(2)(a) or (c), or

(b)

either member of the couple was a member of another couple previously entitled to such an allowance and that couple ceased to be so entitled by that person failing to comply with the condition in section 1(2)(a) or (c).

(4)

Regulations are to provide for—

(a)

the amount of a reduction under this section;

(b)

the period for which such a reduction has effect.

(5)

The period referred to in subsection (4)(b) must not include any period after the end of the period of 13 weeks beginning with the day on which the claimant’s previous entitlement ceased.

(6)

Regulations under subsection (4)(b) may in particular provide for the period of a reduction to depend on either or both of the following—

(a)

the number of occasions on which a claimant’s entitlement has ceased as specified in subsection (1), (2) or (3);

(b)

the period between such occasions.

(7)

Regulations may provide for a reduction under this section made in relation to an award that is terminated to be applied to any new award made within a prescribed period of the termination.

(8)

During any period for which the amount of a joint-claim jobseeker’s allowance is reduced under this section by virtue of a failure by one of the claimants to comply with the condition in section 1(2)(a) or (c), the allowance is payable to the other member of the couple.

19CHardship payments

(1)

Regulations may make provision for the making of payments (“hardship payments”) by way of a jobseeker’s allowance to a claimant where—

(a)

the amount of the claimant’s award is reduced under sections 19 to 19B, and

(b)

the claimant is or will be in hardship.

(2)

Regulations under this section may in particular make provision as to—

(a)

circumstances in which a claimant is to be treated as being or not being in hardship;

(b)

matters to be taken into account in determining whether a claimant is or will be in hardship;

(c)

requirements or conditions to be met by a claimant in order to receive hardship payments;

(d)

the amount or rate of hardship payments;

(e)

the period for which hardship payments may be made;

(f)

whether hardship payments are recoverable.”

(2)

In section 37 of that Act (parliamentary control), in subsection (1), before paragraph (b) there is inserted—

“(ab)

the first regulations to be made under sections 19 to 19C;”.

(3)

In Schedule 1 to that Act—

(a)

in the heading preceding paragraph 14B for “or just cause” there is substituted “reason”;

(b)

before paragraph 14B there is inserted—

“14AA

For any purpose of this Act regulations may provide for—

(a)

circumstances in which a person is to be treated as having or not having a good reason for an act or omission;

(b)

matters which are or are not to be taken into account in determining whether a person has a good reason for an act or omission.”;

(c)

in paragraph 14B, in sub-paragraph (1)—

(i)

for “this Act” there is substituted “paragraph 14AA”;

(ii)

for “good cause or just cause“ there is substituted “a good reason”.

(4)

In Schedule 3 to the Social Security Act 1998 (decisions against which an appeal lies), in paragraph 3, paragraphs (d) and (da) are repealed.