Welfare Reform Act 2012 - legislation

1 Welfare Reform Act 2012 CHAPTER 5 Notes have been produced to assist in theunderstanding of this Act and are available separatelyWelfare Reform Act 2012 CHAPTER 5 CONTENTSPART 1 UNIVERSAL CREDITCHAPTER 1 ENTITLEMENT AND AWARDSI ntroductory1 Universal credit2 ClaimsEntitlement3 Entitlement4 Basic conditions5 Financial conditions6 Restrictions on entitlementAwards7 Basis of awards8 Calculation of awardsElements of an award9 Standard allowance10 Responsibility for children and young persons11 Housing costs12 Other particular needs or circumstancesWelfare Reform Act 2012 (c. 5)iiCHAPTER 2 CLAIMANT RESPONSIBILITIESI ntroductory13 Work-related requirements: introductory14 Claimant commitmentWork-related requirements15 Work-focused interview requirement16 Work preparation requirement17 Work search requirement18 Work availability requirementApplication of work-related requirements19 Claimants subject to no work-related requirements20 Claimants subject to work-focused interview requirement only21 Claimants subject to work preparation requirement22 Claimants subject to all work-related requirementsWork-related requirements.

2 Supplementary23 Connected requirements24 Imposition of requirements25 Compliance with requirementsReduction of benefit26 Higher-level sanctions27 Other sanctions28 Hardship paymentsAdministration29 Delegation and contracting outCHAPTER 3 SUPPLEMENTARY AND GENERALS upplementary and consequential30 Supplementary regulation-making powers31 Supplementary and consequential amendments32 Power to make supplementary and consequential provision etcUniversal credit and other benefits33 Abolition of benefits34 Universal credit and state pension credit35 Universal credit and working-age benefitsWelfare Reform Act 2012 (c. 5)iii36 Migration to universal creditGeneral37 Capability for work or work-related activity38 Information39 Couples40 Interpretation of Part 1 Regulations41 Pilot schemes42 Regulations: general43 Regulations: procedurePART 2 WORKING-AGE BENEFITSCHAPTER 1 JOBSEEKER S ALLOWANCEC laimant responsibilities for interim period44 Claimant commitment for jobseeker s allowance45 Interviews46 Sanctions47 Procedure for regulation-making powers48 Consequential amendmentsClaimant responsibilities after introduction of universal credit49 Claimant responsibilities for jobseeker s allowanceCHAPTER 2 EMPLOYMENT AND SUPPORT ALLOWANCEC onditions of entitlement50 Dual entitlement51 Period of entitlement to contributory allowance52 Further entitlement after time-limiting53 Condition relating to youthClaimant responsibilities for interim period54 Claimant commitment for employment and support allowance55 Work experience etc56 Hardship paymentsWelfare Reform Act 2012 (c.)

3 5)ivClaimant responsibilities after introduction of universal credit57 Claimant responsibilities for employment and support allowanceCHAPTER 3 INCOME SUPPORT58 Entitlement of lone parents to income support etc59 Claimant commitment for income supportCHAPTER 4 MISCELLANEOUSC laimants dependent on drugs etc60 Claimants dependent on drugs etcEntitlement to work61 Entitlement to work: jobseeker s allowance62 Entitlement to work: employment and support allowance63 Entitlement to work: maternity allowance and statutory paymentsPART 3 OTHER BENEFIT CHANGESI ndustrial injuries benefit64 Injuries arising before 5 July 194865 Persons under 1866 Trainees67 Restriction on new claims for industrial death benefit68 DeterminationsHousing benefit69 Housing benefit: determination of appropriate maximumSocial fund70 Ending of discretionary payments71 Purposes of discretionary payments72 Determination of amount or value of budgeting loan73 External provider social loans and community care grantsState pension credit74 State pension credit: carers75 State pension credit: capital limitWelfare Reform Act 2012 (c.

4 5)vWorking tax credit76 Calculation of working tax creditPART 4 PERSONAL INDEPENDENCE PAYMENTP ersonal independence payment77 Personal independence payment78 Daily living component79 Mobility component80 Ability to carry out daily living activities or mobility activities81 Required period condition: further provisionEntitlement and payability: further provision82 Terminal illness83 Persons of pensionable age84No entitlement to daily living component where UK is not competent state85 Care home residents86 Hospital in-patients87 Prisoners and detaineesSupplementary88 Claims, awards and information89 Report to ParliamentGeneral90 Abolition of disability living allowance91 Amendments92 Power to make supplementary and consequential provision93 Transitional94 Regulations95 Interpretation of Part 4 PART 5 SOCIAL SECURITY: GENERALB enefit cap96 Benefit cap97 Benefit cap: supplementaryClaims and awards98 Claims and awards99 Powers to require information relating to claims and awardsWelfare Reform Act 2012 (c.

5 5)viPayments100 Payments to joint claimants101 Payments on accountAppeals102 Power to require consideration of revision before appeal103 Supersession of decisions of former appellate bodiesElectronic communications104 Electronic communicationsRecovery of benefits105 Recovery of benefit payments106 Deduction from earnings: other cases107 Recovery of child benefit and guardian s allowance108 Application of Limitation Act 1980 Recovery of fines from benefit109 Recovery of fines etc by deductions from employment and support allowanceInvestigation and prosecution of offences110 Powers to require information relating to investigations111 Time limits for legal proceedings112 Prosecution powers of local authoritiesPenalties as alternative to prosecution113 Penalty in respect of benefit fraud not resulting in overpayment114 Amount of penalty115 Period for withdrawal of agreement to pay penaltyCivil penalties116 Civil penalties for incorrect statements and failures to disclose informationLoss of benefit117 Benefit offences: disqualifying and sanctionable benefits118 Benefit offences: period of sanction119 Benefit offences: sanctions for repeated benefit fraud120 Loss of tax credits121 CautionsAdministration of tax credits122 Tax credit fraud.

6 Investigation123 Information-sharing for prevention etc of tax credit fraud124 Tax credit fraud: prosecution and penalties125 Unauthorised disclosure of information relating to tax credit offencesWelfare Reform Act 2012 (c. 5)vii126 Tax credits: transfer of functions etcInformation-sharing: Secretary of State and HMRC127 Information-sharing between Secretary of State and HMRCI nformation-sharing: Secretary of State and DPP128 Information-sharing between Secretary of State and DPP129 Unlawful disclosure of information supplied under section 128 Information-sharing involving local authorities etc130 Information-sharing in relation to provision of overnight care etc131 Information-sharing in relation to Welfare services etc132 Unlawful disclosure of information supplied under section 131133 Sections 130 to 132: supplementaryInformation-sharing: miscellaneous134 Information-sharing for social security or employment purposes etcPART 6 MISCELLANEOUSTell Us Once135 Functions of registration serviceChild support maintenance136 Supporting maintenance agreements137 Collection of child support maintenance138 Indicative maintenance calculations139 Recovery of child support maintenance by deduction from benefit140 Fees141 Review of fees regulations142 Exclusion from individual voluntary arrangementsReports on decision-making143 Standards of decision-makingEmployment and training144 Use of jobcentres by sex industryChild poverty145 Social Mobility and Child Poverty Commission146UK child poverty strategiesWelfare Reform Act 2012 (c.)

7 5)viiiPART 7 FINAL147 Repeals148 Financial provision149 Extent150 Commencement151 Short titleSchedule 1 Universal credit: supplementary regulation-making powersSchedule 2 Universal credit: amendmentsSchedule 3 Abolition of benefits: consequential amendmentsSchedule 4 Housing credit element of state pension creditPart 1 Amendments to State Pension Credit Act 2002 Part 2 Amendments to other ActsSchedule 5 Universal credit and other working-age benefitsSchedule 6 Migration to universal creditSchedule 7 Jobseeker s allowance in interim period: consequentialamendmentsSchedule 8 Social fund discretionary payments: consequentialamendmentsSchedule 9 Personal independence payment: amendmentsSchedule 10 Personal independence payment: transitionalSchedule 11 Power to require consideration of revision before appealSchedule 12 Supersession of decisions of former appellate bodiesSchedule 13 Social Mobility and Child Poverty CommissionPart 1 Establishment of Social Mobility and Child PovertyCommissionPart 2 Supplementary amendments to Child Poverty Act 2010 Part 3 Supplementary amendments to other ActsSchedule 14 RepealsPart 1 Abolition of benefits superseded by universal creditPart 2 Entitlement to jobseeker s allowance without seekingemploymentPart 3 Jobseeker s allowance: responsibilities for interim periodPart 4 Jobseeker s allowance: responsibilities after introduction ofuniversal creditPart 5 Employment and support allowance: responsibilities afterintroduction of universal creditPart 6 Claimants dependent on drugs etcPart 7 Industrial injuries arising before 5 July 1948 Part 8 Social fund.

8 Ending of discretionary paymentsPart 9 Disability living allowancePart 10 Powers to require information relating to claims and awardsPart 11 Recovery of benefit paymentsPart 12 Loss of benefit: cautionsPart 13 Information-sharing between Secretary of State and HMRCPart 14 Standards of decision-makingELIZABETH IIc. 5 Welfare Reform Act 20122012 CHAPTER 5An Act to make provision for universal credit and personal independencepayment; to make other provision about social security and tax credits; tomake provision about the functions of the registration service, child supportmaintenance and the use of jobcentres; to establish the Social Mobility andChild Poverty Commission and otherwise amend the Child Poverty Act 2010;and for connected purposes.[8th March 2012 ]E IT ENACTED by the Queen s most Excellent Majesty, by and with the advice andconsent of the Lords Spiritual and Temporal, and Commons, in this presentParliament assembled, and by the authority of the same, as follows: PART 1 UNIVERSAL CREDITCHAPTER 1 ENTITLEMENT AND AWARDSI ntroductory1 Universal credit(1)A benefit known as universal credit is payable in accordance with this Part.

9 (2)Universal credit may, subject as follows, be awarded to (a)an individual who is not a member of a couple (a single person ), or(b)members of a couple jointly.(3)An award of universal credit is, subject as follows, calculated by reference to (a)a standard allowance,(b)an amount for responsibility for children or young persons,BWelfare Reform Act 2012 (c. 5)Part 1 Universal creditChapter 1 Entitlement and awards2(c)an amount for housing, and(d)amounts for other particular needs or (1)A claim may be made for universal credit by (a)a single person, or(b)members of a couple jointly.(2)Regulations may specify circumstances in which a member of a couple maymake a claim as a single (1)A single claimant is entitled to universal credit if the claimant meets (a)the basic conditions, and(b)the financial conditions for a single claimant.(2)Joint claimants are jointly entitled to universal credit if (a)each of them meets the basic conditions, and(b)they meet the financial conditions for joint conditions(1)For the purposes of section 3, a person meets the basic conditions who (a)is at least 18 years old,(b)has not reached the qualifying age for state pension credit,(c)is in Great Britain,(d)is not receiving education, and(e)has accepted a claimant commitment.

10 (2)Regulations may provide for exceptions to the requirement to meet any of thebasic conditions (and, for joint claimants, may provide for an exception for oneor both).(3)For the basic condition in subsection (1)(a) regulations may specify a differentminimum age for prescribed cases.(4)For the basic condition in subsection (1)(b), the qualifying age for state pensioncredit is that referred to in section 1(6) of the State Pension Credit Act 2002.(5)For the basic condition in subsection (1)(c) regulations may (a)specify circumstances in which a person is to be treated as being or notbeing in Great Britain;(b)specify circumstances in which temporary absence from Great Britainis disregarded;(c)modify the application of this Part in relation to a person not in GreatBritain who is by virtue of paragraph (b) entitled to universal credit.(6)For the basic condition in subsection (1)(d) regulations may (a)specify what receiving education means; Welfare Reform Act 2012 (c.)