Welfare Reform Act 2012

Section 35

SCHEDULE 5 Universal credit and other working-age benefits

General

1 (1) In this Schedule “relevant benefit“ means—

(a) jobseeker’s allowance, or

(b) employment and support allowance.

(2) In this Schedule “work-related requirement“ means—

(a) a work-related requirement within the meaning of this Part,

(b) a work-related requirement within the meaning of the Jobseekers Act 1995, or

(c) a work-related requirement within the meaning of Part 1 of the Welfare Reform Act 2007.

(3) In this Schedule “sanction” means a reduction of benefit under—

(a) section 26 or 27,

(b) section 6J or 6K of the Jobseekers Act 1995, or

(c) section 11J of the Welfare Reform Act 2007.

Dual entitlement

2 (1) Regulations may make provision as to the amount payable by way of a relevant benefit where a person is entitled to that benefit and universal credit.

(2) Regulations under sub-paragraph (1) may in particular provide for no amount to be payable by way of a relevant benefit.

(3) Regulations may, where a person is entitled to a relevant benefit and universal credit—

(a) make provision as to the application of work-related requirements;

(b) make provision as to the application of sanctions.

(4) Provision under sub-paragraph (3)(a) includes in particular—

(a) provision securing that compliance with a work-related requirement for a relevant benefit is to be treated as compliance with a work-related requirement for universal credit;

(b) provision disapplying any requirement on the Secretary of State to impose, or a person to comply with, a work-related requirement for a relevant benefit or universal credit.

(5) Provision under sub-paragraph (3)(b) includes in particular—

(a) provision for the order in which sanctions are to be applied to awards of relevant benefit and universal credit;

(b) provision to secure that the application of a sanction to an award of a relevant benefit does not result in an increase of the amount of an award of universal credit.

Movement between working-age benefits

3 Regulations may provide—

(a) in a case where a person ceases to be entitled to universal credit and becomes entitled to a relevant benefit, for a sanction relating to the award of universal credit to be applied to the award of the relevant benefit;

(b) in a case where a person ceases to be entitled to a relevant benefit and becomes entitled to universal credit, for a sanction relating to the award of the relevant benefit to be applied to the award of universal credit;

(c) in a case where a person ceases to be entitled to one relevant benefit and becomes entitled to the other, for a sanction relating to the award of the former to apply to the award of the latter.

Hardship payments

4 Regulations under section 28 (hardship payments) may be made in relation to a person whose award of universal credit is reduced by virtue of regulations under paragraph 2(3)(b) or 3(b) as in relation to a person whose award is reduced under section 26 or 27.

Earnings tapers

5 In section 4 of the Jobseekers Act 1995 (amount payable by way of a jobseeker’s allowance), in subsection (1)(b)—

(a) after “making” there is inserted—

“(i) deductions in respect of earnings calculated in the prescribed manner (which may include multiplying some or all earnings by a prescribed percentage), and

(ii)”;

(b) “earnings,”(before “pension payments“) is repealed.

6 (1) Section 2 of the Welfare Reform Act 2007 (amount of contributory allowance) is amended as follows.

(2) In subsection (1)(c), after “making” there is inserted—

“(i) deductions in respect of earnings calculated in the prescribed manner (which may include multiplying some or all earnings by a prescribed percentage), and

(ii)”.

(3) At the end there is inserted—

“(6) In subsection (1)(c)(i) the reference to earnings is to be construed in accordance with sections 3, 4 and 112 of the Social Security Contributions and Benefits Act 1992.”