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

SCHEDULES

SCHEDULE 9Personal independence payment: amendments

Section 91

Transport Act 1982 (c. 49)

1

In section 70 of the Transport Act 1982 (payments in respect of applicants for exemption from wearing seat belts), in subsection (2), after paragraph (a) there is inserted—

“(ab)

those in receipt of personal independence payment;”.

Child Support Act 1991 (c. 48)

2

In section 8 of the Child Support Act 1991 (role of courts with respect to maintenance for children), in subsection (8)(a), at the beginning there is inserted “an allowance under Part 4 of the Welfare Reform Act 2012 (personal independence payment) or”.

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

3

The Social Security Contributions and Benefits Act 1992 is amended as follows.

4

In section 30B (incapacity benefit: rate), in subsection (4), after paragraph (a) there is inserted—

“(aa)

is entitled to the daily living component of personal independence payment at a rate designated by regulations under this paragraph, or”.

5

(1)

Section 64 (entitlement to attendance allowance) is amended as follows.

(2)

In subsection (1), for “the care component of a disability living allowance” there is substituted “an allowance within subsection (1A)”.

(3)

After subsection (1) there is inserted—

“(1A)

The following allowances are within this subsection—

(a)

personal independence payment;

(b)

the care component of a disability living allowance.”

6

In section 150 (Christmas bonus for pensioners: interpretation), in subsection (1), after paragraph (ba) there is inserted—

“(bb)

personal independence payment;”.

Social Security Administration Act 1992 (c. 5)

7

The Social Security Administration Act 1992 is amended as follows.

8

(1)

Section 1 (entitlement to benefit dependent on claim) is amended as follows.

(2)

In subsection (3)—

(a)

before paragraph (a) there is inserted—

“(za)

for personal independence payment by virtue of section 82 of the Welfare Reform Act 2012; or”;

(b)

paragraph (b) and the “or” preceding it is repealed.

(3)

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

personal independence payment.”

9

In section 5(2) (regulations about claims for and payments of benefit), after paragraph (ac) there is inserted—

“(ad)

personal independence payment;”.

10

In section 71(11) (overpayments), after paragraph (ac) there is inserted—

“(ad)

personal independence payment;”.

11

In section 73 (overlapping benefits – general), after subsection (5) there is inserted—

“(6)

Personal independence payment is to be treated for the purposes of this section as if it were benefit as defined in section 122 of the Contributions and Benefits Act.”

12

In section 121DA (interpretation of Part 6), in subsection (1), after paragraph (hj) (inserted by Schedule 2 to this Act) there is inserted—

“(hk)

Part 4 of that Act;”.

13

In section 122B (supply of other government information for fraud prevention and verification), in subsection (3)(b), after “Welfare Reform Act 2012” (inserted by Schedule 2 to this Act) there is inserted “, Part 4 of that Act”.

14

In section 122C (supply of information to authorities administering benefit), in subsection (6)(b), after “Welfare Reform Act 2007” there is inserted “, Part 4 of the Welfare Reform Act 2012”.

15

In section 124 (age, death and marriage), in subsection (1), after paragraph (ad) (inserted by Schedule 2 to this Act) there is inserted—

“(ae)

of the provisions of Part 4 of that Act;”.

16

In section 125 (regulations as to notification of deaths), in subsection (1), after “Welfare Reform Act 2012” (inserted by Schedule 2 to this Act) there is inserted “, Part 4 of that Act”.

17

In section 150 (uprating)—

(a)

in subsection (1), after paragraph (n) (inserted by Schedule 2 to this Act) there is inserted—

“(o)

specified in regulations under section 78(3) or 79(3) of that Act;”;

(b)

in subsection (3)(b), for “or (g)” there is substituted “, (g) or (o)”.

18

In section 159 (effect of alteration in the component rates of income support), in subsection (5), in the definition of “benefit income”, after “income support;” there is inserted—

“(aa)

personal independence payment;”.

19

In section 159A (effect of alteration of rates of a jobseeker’s allowance), in subsection (5), in the definition of “benefit income”, after “Contributions and Benefits Act;” there is inserted—

“(ab)

personal independence payment;”.

20

In section 159B (effect of alterations affecting state pension credit), in subsection (6), in the definition of “benefit income”, after “Contributions and Benefits Act” there is inserted “or personal independence payment”.

21

In section 159C (effect of alteration of rates of an employment and support allowance), in subsection (6), in the definition of “benefit income”, after “Contributions and Benefits Act” there is inserted “or personal independence payment”.

22

In section 160 (implementation of increases in income support due to attainment of particular ages), in subsection (3), after “entitlement to” there is inserted “personal independence payment or to“.

23

In section 160A (implementation of increases in income-based jobseeker’s allowance due to attainment of particular ages), in subsection (3), after “Contributions and Benefits Act;” there is inserted—

“(aa)

personal independence payment;”.

24

In section 160B (implementation of increases in employment and support allowance due to attainment of particular ages), in subsection (3), for the words from “a benefit” to the end there is substituted—

“(a)

a benefit under the Contributions and Benefits Act; or

(b)

personal independence payment.”

25

In section 165 (adjustments between National Insurance Fund and Consolidated Fund), in subsection (1)(a)(iii), after “universal credit” (inserted by Schedule 2 to this Act) there is inserted “, personal independence payment”.

26

In section 170 (Social Security Advisory Committee), in subsection (5)—

(a)

in the definition of “the relevant enactments“, after paragraph (ak) (inserted by Schedule 2 to this Act) there is inserted—

“(al)

Part 4 of that Act;”;

(b)

in the definition of “the relevant Northern Ireland enactments”, after paragraph (ak) (inserted by Schedule 2 to this Act) there is inserted—

“(al)

any provisions in Northern Ireland which correspond to Part 4 of that Act;”.

27

(1)

Section 179 (reciprocal agreements) is amended as follows.

(2)

In subsection (3)(a), after “Welfare Reform Act 2012” (inserted by Schedule 2 to this Act) there is inserted “, Part 4 of that Act”.

(3)

In subsection (4), after paragraph (ag) (inserted by Schedule 2 to this Act) there is inserted—

“(ah)

to Part 4 of that Act;”.

28

In section 180 (payment of travelling expenses), in paragraphs (a) and (b)(i), after “Welfare Reform Act 2012” (inserted by Schedule 2 to this Act) there is inserted “, Part 4 of that Act”.

29

In section 182B (information about postal redirection), in subsection (5)(b), after “Welfare Reform Act 2012” (inserted by Schedule 2 to this Act) there is inserted “, Part 4 of that Act”.

30

In section 184 (control of pneumoconiosis), in paragraph (c), for “benefit as defined in section 122 of the Contributions and Benefits Act” there is substituted “personal independence payment, or benefit as defined in section 122 of the Contributions and Benefits Act,“.

31

In section 187 (inalienability), in subsection (1), after paragraph (ac) there is inserted—

“(ad)

personal independence payment;”.

32

In section 191 (interpretation), in the definition of “benefit”, for “, state pension credit and an employment and support allowance” there is substituted “state pension credit, an employment and support allowance and personal independence payment”.

33

In Schedule 7 (regulations not requiring prior submission to Social Security Advisory Committee), before paragraph 1 there is inserted—

“Personal independence payment

A1

Regulations under section 78(3) or 79(3) of the Welfare Reform Act 2012.”

Social Security (Recovery of Benefits) Act 1997 (c. 27)

34

The Social Security (Recovery of Benefits) Act 1997 is amended as follows.

35

In section 29 (general interpretation), in the definition of “benefit”, after “employment and support allowance” there is inserted “, personal independence payment”.

36

In Schedule 2 (calculation of compensation payment), in the table—

(a)

in the section relating to compensation for cost of care incurred during the relevant period, in the second column, after the entry for attendance allowance there is inserted “Daily living component of personal independence payment”;

(b)

in the section relating to compensation for loss of mobility during the relevant period, in the second column, after the entry for mobility allowance there is inserted “Mobility component of personal independence payment”.

Social Security Act 1998 (c. 14)

37

The Social Security Act 1998 is amended as follows.

38

In section 2(2) (use of computers), after paragraph (k) (inserted by Schedule 2 to this Act) there is inserted “or

(l)

Part 4 of that Act.”

39

In section 8 (decisions by Secretary of State)—

(a)

in subsection (3), after paragraph (ba) there is inserted—

“(baa)

personal independence payment;”;

(b)

in subsection (4), after the words “Welfare Reform Act 2012” (inserted by Schedule 2 to this Act) there is inserted “or Part 4 of that Act.”

40

In section 11(3) (regulations with respect to decisions), in the definition of “current legislation”, after the words “Welfare Reform Act 2012” (inserted by Schedule 2 to this Act) there is inserted “and Part 4 of that Act”.

41

In section 27(7) (restriction on entitlement in cases of error), in the definition of “benefit”—

(a)

after paragraph (de) there is inserted—

“(df)

personal independence payment;”;

(b)

in paragraph (e) for “to (de)” there is substituted “to (df)”.

42

In section 28(3) (correction of errors in decisions etc), after paragraph (h) (inserted by Schedule 2 to this Act) there is inserted “or

(i)

Part 4 of that Act.”

43

In Schedule 3 (decisions against which an appeal lies), in paragraph 3—

(a)

in paragraph (f), the final “or” is repealed;

(b)

after paragraph (g) there is inserted—

“(h)

regulations made under section 85(1) or 86(1) of the Welfare Reform Act 2012;

(i)

section 87 of that Act.”

Immigration and Asylum Act 1999 (c. 33)

44

In section 115 of the Immigration and Asylum Act 1999 (exclusion from benefits)—

(a)

in subsection (1), after “support allowance)“ there is inserted “or to personal independence payment”;

(b)

in subsection (2), at the beginning of paragraph (b) there is inserted “disability living allowance or”.

Social Security Fraud Act 2001 (c. 11)

45

The Social Security Fraud Act 2001 is amended as follows.

46

In section 6A(1) (definitions)—

(a)

in the definition of “disqualifying benefit”, after paragraph (c) there is inserted—

“(ca)

any benefit under Part 4 of the Welfare Reform Act 2012 (personal independence payment) or under any provision in Northern Ireland which corresponds to that Part;”;

(b)

in the definition of “sanctionable benefit”, after paragraph (c) there is inserted—

“(ca)

personal independence payment;”.

47

In section 10 (power to supplement and mitigate loss of benefit provisions), in subsection (3), after paragraph (bd) (inserted by Schedule 2 to this Act) there is inserted—

“(be)

any benefit under Part 4 of the Welfare Reform Act 2012 (personal independence payment) or under any provision in Northern Ireland which corresponds to that Part;”.

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

48

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

49

In section 677 (UK social security benefits wholly exempt from tax), in subsection (1), at the appropriate place in Part 1 of Table B there is inserted—

“Personal independence payment

WRA 2012

Section 77

Any provision made for Northern Ireland which corresponds to section 77 of WRA 2012”

50

In Part 1 of Schedule 1 (abbreviations of Acts), at the end there is inserted—

“WRA 2012

The Welfare Reform Act 2012”