Schedule 3

Welfare Reform Bill

Public Bill Committees, 31 October 2006, 9:15 pm

Consequential amendments relating to Part 1

Photo of Anne McGuire

Anne McGuire (Parliamentary Under-Secretary (Disabled People), Department for Work and Pensions; Stirling, Labour)

I beg to move amendment No. 79, in schedule 3, page 55, line 2, at end insert—

A1 In section 78(2A) of the Social Work (Scotland) Act 1968 (which exempts persons in receipt of certain benefits from liability for contributions in respect of children in care etc.), after “1995)” insert “, an income-related allowance under Part 1 of the Welfare Reform Act 2006 (employment and support allowance)”.’.

Photo of Jimmy Hood

Jimmy Hood (Lanark & Hamilton East, Labour)

With this it will be convenient to discuss Government amendments Nos. 80 to 82, 84 to 109, 112 to 139, 72 to 74 and 76.

Photo of Anne McGuire

Anne McGuire (Parliamentary Under-Secretary (Disabled People), Department for Work and Pensions; Stirling, Labour)

We have set out in the schedule a number of amendments to primary legislation that follow on from the creation of the employment and support allowance. Since the Bill was introduced, we have had the opportunity to identify a number of further amendments which are necessary to ensure that the new benefit operates alongside other benefits appropriately. For example, the amendments include provisions to ensure that children in families that receive income-related employment and support allowance will, in Scotland, England and Wales, be entitled to free school meals just as families that receive income support are. Other amendments will ensure that recipients of income-related employment and support allowance will not be liable to pay contributions for various services they receive from social services, just as income support recipients are not. Further amendments will mean that deductions can be made from income-related employment and support allowance for council tax purposes just as they can be made from income support.

The changes are necessary to ensure that recipients of the new benefit are not inadvertently disadvantaged, that the relevant rights and obligations still apply to them, and that employment and support allowance fits into the framework of existing legislative provision. I urge the Committee to accept the amendments.

Amendment agreed to.

Amendments made: No. 80, in schedule 3, page 55, line 2, at end insert—

‘Education (Scotland) Act 1980 (c. 41)

A2 In section 53(3) of the Education (Scotland)Act 1980 (pupils who qualify for free school meals etc.), in paragraphs (a) and (b), after sub-paragraph (ii) insert—

“(iia) an income-related allowance under Part 1 of the Welfare Reform Act 2006 (employment and support allowance);”.’.

No. 81, in schedule 3, page 55, line 2, at end insert—

‘Transport Act 1982 (c. 49)

A3 In section 70 of the Transport Act 1982 (payments in respect of applicants for exemption from wearing seat belts), in subsection (2) (applicants who qualify), in paragraph (b), for “or an income-based jobseeker’s allowance (payable under the Jobseekers Act 1995)” substitute “, an income-based jobseeker’s allowance (payable under the Jobseekers Act 1995), an income-related allowance under Part 1 of the Welfare Reform Act 2006 (employment and support allowance),”.’.

No. 82, in schedule 3, page 55, line 2, at end insert—

‘Legal Aid (Scotland) Act 1986 (c. 47)

A4 (1) The Legal Aid (Scotland) Act 1986 is amended as follows.

(2) In section 8(b) (under which persons in receipt of certain benefits are eligible for advice and assistance), for the words from second “or” to the end substitute “, an income-based jobseeker’s allowance (payable under the Jobseekers Act 1995) or an income-related allowance under Part 1 of the Welfare Reform Act 2006 (employment and support allowance),”.

(3) In section 11(2)(b) (under which persons not in receipt of certain benefits are liable to contribute to the cost of advice and assistance), for the words from second “or” to the end substitute “, an income-based jobseeker’s allowance (payable under the Jobseekers Act 1995) or an income-related allowance under Part 1 of the Welfare Reform Act 2006 (employment and support allowance),”.’.—[Mrs. McGuire.]

Amendment proposed: No. 83, in schedule 3, page 55, line 2, at end insert—

‘Income and Corporation Taxes Act 1988 (c. 1)

A5 (1) Section 347B of the Income and Corporation Taxes Act 1988 (qualifying maintenance payments) is amended as follows.

(2) In subsection (12) (payments to be treated as maintenance payments), at the end of paragraph (b) insert “; or

“(iia) made by virtue of section [Recovery of sums in respect of maintenance] of the Welfare Reform Act 2006 (recovery of sums in respect of maintenance), or any corresponding enactment in Northern Ireland, in respect of an income-related employment and support allowance claimed by any other person,”.

(3) For subsection (13) substitute—

“(13) In subsection (12)—

“income-based jobseeker’s allowance” has the same meaning as in the Jobseekers Act 1995 or, for Northern Ireland, the same meaning as in any corresponding enactment in Northern Ireland;

“income-related employment and support allowance” means an income-related allowance under Part 1 of the Welfare Reform Act 2006 (employment and support allowance) or, for Northern Ireland, under any corresponding enactment in Northern Ireland.”’.—[Mrs. McGuire.]

Photo of Jimmy Hood

Jimmy Hood (Lanark & Hamilton East, Labour)

With this it will be convenient to discuss Government amendments Nos. 111, 75, 77 and Government new clause 1—Recovery of sums in respect of maintenance.

Amendment agreed to.

Amendments made: No. 84, in schedule 3, page 55, line 2, at end insert—

‘Children Act 1989 (c. 41)

A6 (1) The Children Act 1989 is amended as follows.

(2) In section 17 (provision of services for children in need, their families and others), in subsection (9) (persons exempt from repayment of assistance), for “or of an income-based jobseeker’s allowance” substitute “, of an income-based jobseeker’s allowance or of an income-related employment and support allowance”.

(3) In section 17A (direct payments), in subsection (5) (persons in relation to whom special provision applies), in paragraph (b), for “or of an income-based jobseeker’s allowance” substitute “, of an income-based jobseeker’s allowance or of an income-related employment and support allowance”.

(4) In section 29 (recoupment of costs of providing services etc.), in subsections (3) and (3A) (exempt persons), for “or of an income-based jobseeker’s allowance” substitute “, of an income-based jobseeker’s allowance or of an income-related employment and support allowance”.

(5) In section 105 (interpretation), 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 2006 (employment and support allowance);”.

(6) In Schedule 2 (local authority support for children and families), in paragraph 21(4) (persons exempt from liability to contribute to maintenance of children looked after by local authority), for “or of an income-based jobseeker’s allowance” substitute “, of an income-based jobseeker’s allowance or of an income-related employment and support allowance”.’.

No. 85, in schedule 3, page 55, line 5, after ‘6’ insert

‘as amended by the Child Support, Pensions and Social Security Act 2000 (c. 19)’.

No. 86, in schedule 3, page 55, line 7, at end insert—

‘( ) In that section as it has effect apart from the Child Support, Pensions and Social Security Act 2000 (c. 19) (applications by those receiving benefit), in subsection (1), after “income-based jobseeker’s allowance” insert “, an income-related employment and support allowance”.’.

No. 87, in schedule 3, page 55, line 8, after ‘46’ insert

‘as amended by the Child Support, Pensions and Social Security Act 2000 (c. 19)’.

No. 88, in schedule 3, page 55, line 11, at end insert—

‘( ) In that section as it has effect apart from the Child Support, Pensions and Social Security Act 2000 (c. 19) (failure to comply with obligations imposed by section 6), in subsection (11), in the definition of “relevant benefit”, after “income-based jobseeker’s allowance” insert “, an income-related employment and support allowance”.’.

No. 89, in schedule 3, page 55, line 11, at end insert—

‘( ) In section 47(3)(b) (persons to be exempted from payment of fees), after “income-based jobseeker’s allowance,” insert “an income-related employment and support allowance,”.’.

No. 90, in schedule 3, page 55, line 16, at end insert—

‘( ) In Part 1 of Schedule 1 as it has effect apart from the Child Support, Pensions and Social Security Act 2000 (c. 19) (calculation of child support maintenance), in paragraph 5(4)  (parents who are to be taken to have no assessable calculable income), after “income-based jobseeker’s allowance” insert “, an income-related employment and support allowance”.’.

No. 91, in schedule 3, page 55, line 29, at end insert—

‘( ) In section 6A (notional payment of primary Class 1 contribution where earnings not less than lower earnings limit), in subsection (3) (purposes for which Class 1 contribution treated as paid), at end insert “; and

(e) any purposes relating to employment and support allowance.”’.

No. 92, in schedule 3, page 55, line 42, at end insert—

‘( ) In section 61A (contributions paid in error), in subsection (3), at the end of paragraph (c) insert “and”.’.

No. 93, in schedule 3, page 55, line 42, at end insert—

‘() In section 88 (increases of benefits to be in respect of only one adult dependant), for “86A” substitute “85”.’.

No. 94, in schedule 3, page 55, line 42, at end insert—

‘( ) In section 89(1) and (1A) (earnings to include occupational and personal pensions etc. for purposes of provisions relating to increases of benefits in respect of adult dependants), for “to 86A” substitute “to 85”.’.

No. 95, in schedule 3, page 56, line 23, at end insert—

‘( ) In paragraph 5 of Schedule 3 (contribution conditions for widowed mother’s allowance etc.), after sub-paragraph (6) insert—

“(6A) The first condition shall be taken to be satisfied if the contributor concerned was entitled to main phase employment and support allowance at any time during—

(a) the year in which he attained pensionable age or died under that age, or

(b) the year immediately preceding that year.

(6B) The reference in sub-paragraph (6A) to main phase employment and support allowance is to an employment and support allowance in the case of which the calculation of the amount payable in respect of the claimant includes an addition under section 2(1)(b) or 4(2)(b) of the Welfare Reform Act 2006 (addition where conditions of entitlement to support component or work-related activity component satisfied).”’.

No. 96, in schedule 3, page 57, line 20, at end insert—

‘( ) In section 74A (payment of benefit where maintenance payments collected by Secretary of State), in subsection (7) (benefits to which section applies), after “an income-based jobseeker’s allowance” insert “, an income-related employment and support allowance”.’.

No. 97, in schedule 3, page 57, line 26, at end insert—

‘( ) In section 109(1) (diversion of arrested earnings to the Secretary of State - Scotland), after “income support”, in both places, insert “or an income-related employment and support allowance”.’.

No. 98, in schedule 3, page 58, line 2, at end insert—

‘( ) In section 130 (duties of employers: statutory sick pay), in subsection (1) (power to require employer to supply information in connection with making of claim for certain benefits by employee), at end insert—

“(f) an employment and support allowance.”’.

No. 99, in schedule 3, page 60, line 31, at end insert—

‘( ) In section 165(6)(a) (under which no adjustment between the National Insurance Fund and the Consolidated Fund is required for administrative expenses of the Secretary of State  relating to benefits payable out of money provided by Parliament), for “or section 20 of the State Pension CreditAct 2002” substitute “, section 20 of the State Pension CreditAct 2002 or section 24 of the Welfare Reform Act 2006”.’.

No. 100, in schedule 3, page 60, line 31, at end insert—

‘( ) In section 166 (financial review and report), in subsection (2) (duty at end of each review period to review operation of certain provisions)—

(a) after paragraph (b) insert—

“(ba) the provisions of Part 1 of the Welfare Reform Act 2006 relating to contributory employment and support allowance;”;

(b) in paragraph (c), for “and (b)” substitute “to (ba)”.’.

No. 101, in schedule 3, page 61, line 21, at end insert—

‘Local Government Finance Act 1992 (c. 14)

4A (1) The Local Government Finance Act 1992 is amended as follows.

(2) In Schedule 4 (enforcement in England and Wales)—

(a) in paragraph 6 (deductions from income support etc.), in sub-paragraphs (1) and (2)(b), for “or state pension credit” substitute “, state pension credit or an income-related employment and support allowance”;

(b) in paragraph 12 (relationship between remedies), after sub-paragraph (1)(bb) insert—

“(bc) deductions from income-related employment and support allowance may be resorted to more than once.”’;

(c) after paragraph 20 insert—

“21 In this Schedule, “income-related employment and support allowance” means an income-related allowance under Part 1 of the Welfare Reform Act 2006 (employment and support allowance).”

(3) In Schedule 8 (enforcement in Scotland)—

(a) in paragraph 6 (deductions from income support etc.), in sub-paragraphs (1) and (2)(b), for “or state pension credit” substitute “, state pension credit or an income-related employment and support allowance”;

(b) in that paragraph, at the end insert—

“(3) In this paragraph, “income-related employment and support allowance” means an income-related allowance under Part 1 of the Welfare Reform Act 2006 (employment and support allowance).”’.

No. 102, in schedule 3, page 62, line 13, at end insert—

‘Children (Scotland) Act 1995 (c. 36)

5A 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 end insert “; or

(c) an income-related allowance under Part 1 of the Welfare Reform Act 2006 (employment and support allowance).”’.

No. 103, in schedule 3, page 62, line 13, at end insert—

‘Employment Tribunals Act 1996 (c. 17)

‘5B (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”;

(c) in subsection (4), for paragraph (b) substitute—

“(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 2006 (employment and support allowance).”’.

No. 104, in schedule 3, page 62, line 13, at end insert—

‘Education Act 1996 (c. 56)

5C (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 2006 (employment and support allowance);”.’.

No. 105, in schedule 3, page 63, line 8, at end insert—

‘Immigration and Asylum Act 1999 (c. 33)

7A 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 2006 (employment and support allowance)”.

No. 106, in schedule 3, page 63, line 8, at end insert—

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

7B (1) Section 62 of the Child Support, Pensions and Social Security Act 2000 (loss of benefit for breach of community order) is amended as follows.

(2) 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 2006) 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;

(c) the allowance were payable only if the circumstances are otherwise such as may be prescribed.”

(3) In subsection (8), in the definition of “relevant benefit”, after paragraph (b) insert—

“(ba) an employment and support allowance;”.’.

No. 107, in schedule 3, page 63, line 8, at end insert—

‘Local Government Act 2000 (c. 22)

7C 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.’.

No. 108, in schedule 3, page 63, line 8, at end insert—

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

7D (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 end insert “or Part 1 of the Welfare Reform Act 2006”.

(3) In section 41(a) (duties of managers in relation to matters which may be managed), at end insert “or Part 1 of the Welfare Reform Act 2006”.’.

No. 109, in schedule 3, page 63, line 8, at end insert—

‘Social Security Fraud Act 2001 (c. 11)

7E (1) Section 9 of the Social Security Fraud Act 2001 (effect of offence on benefits of members of offender’s family) is amended as follows.

(2) In subsection (1) (benefits to which section applies), after paragraph (bb) insert—

“(bc) employment and support allowance;”.

(3) 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;

(c) the allowance were payable only if circumstances are otherwise such as may be prescribed.”’.—[Mrs. McGuire.]

Schedule 3, as amended, agreed to.

Clause 26 ordered to stand part of the Bill.