Welfare Reform Act 2012

Conditions of entitlement

50 Dual entitlement

(1) In section 1 of the Welfare Reform Act 2007 (employment and support allowance), after subsection (6) there is inserted—

“(6A) In subsection (3)(f), in relation to a contributory allowance, the reference to a couple entitled to a joint-claim jobseeker’s allowance does not include a couple so entitled by virtue of regulations under paragraph 8A of Schedule 1 to the Jobseekers Act 1995.”

(2) In a case where—

(a) an award of an employment and support allowance is made to a person in respect of any period of time before the coming into force of subsection (1), and

(b) the person was not entitled to an employment and support allowance in relation to that period but would have been had subsection (1) been in force in relation to that period,

subsection (1) shall be regarded as having been in force in relation to that period.

51 Period of entitlement to contributory allowance

(1) After section 1 of the Welfare Reform Act 2007 there is inserted—

“1A Duration of contributory allowance

(1) The period for which a person is entitled to a contributory allowance by virtue of the first and second conditions set out in Part 1 of Schedule 1 shall not exceed, in the aggregate, the relevant maximum number of days in any period for which his entitlement is established by reference (under the second condition set out in Part 1 of Schedule 1) to the same two tax years.

(2) In subsection (1) the “relevant maximum number of days” is—

(a) 365 days, or

(b) if the Secretary of State by order specifies a greater number of days, that number of days.

(3) The fact that a person’s entitlement to a contributory allowance has ceased as a result of subsection (1) does not prevent his being entitled to a further such allowance if—

(a) he satisfies the first and second conditions set out in Part 1 of Schedule 1, and

(b) the two tax years by reference to which he satisfies the second condition include at least one year which is later than the second of the two years by reference to which (under the second condition) his previous entitlement was established.

(4) The period for which a person is entitled to a contributory allowance by virtue of the third condition set out in Part 1 of Schedule 1 (youth) shall not exceed—

(a) 365 days, or

(b) if the Secretary of State by order specifies a greater number of days, that number of days.

(5) In calculating for the purposes of subsection (1) or (4) the length of the period for which a person is entitled to a contributory allowance, the following are not to be counted—

(a) days in which the person is a member of the support group,

(b) days not falling within paragraph (a) in respect of which the person is entitled to the support component referred to in section 2(1)(b), and

(c) days in the assessment phase, where the days immediately following that phase fall within paragraph (a) or (b).

(6) In calculating for the purposes of subsection (1) or (4) the length of the period for which a person is entitled to a contributory allowance, days occurring before the coming into force of this section are to be counted (as well as those occurring afterwards).”

(2) In section 25 of that Act (regulations)—

(a) in the heading, after “regulations” there is inserted “and orders“;

(b) in subsection (1), after “regulations” there is inserted “or an order“.

(3) In section 26 of that Act (Parliamentary control), at the end there is inserted—

“(3) A statutory instrument containing an order under section 1A shall be subject to annulment in pursuance of a resolution of either House of Parliament.”

(4) In Schedule 4 to that Act (transition relating to Part 1), in paragraph 7(2), at the end there is inserted—

“(f) make provision modifying the application of section 1A in relation to awards of an employment and support allowance to persons previously entitled to existing awards.”

52 Further entitlement after time-limiting

(1) After section 1A of the Welfare Reform Act 2007 (as inserted by section 51 above) there is inserted—

“1B Further entitlement after time-limiting

(1) Where a person’s entitlement to a contributory allowance has ceased as a result of section 1A (1) or (4) but—

(a) the person has not at any subsequent time ceased to have (or to be treated as having) limited capability for work,

(b) the person satisfies the basic conditions, and

(c) the person has (or is treated as having) limited capability for work-related activity,

the claimant is entitled to an employment and support allowance by virtue of this section.

(2) An employment and support allowance entitlement to which is based on this section is to be regarded as a contributory allowance for the purposes of this Part.”

(2) In section 1 of that Act (employment and support allowance), in the definition of “contributory allowance” in subsection (7), after “subsection (2)(a)” there is inserted “(and see section 1B(2))”.

53 Condition relating to youth

In section 1 of the Welfare Reform Act 2007 (employment and support allowance), after subsection (3) there is inserted—

“(3A) After the coming into force of this subsection no claim may be made for an employment and support allowance by virtue of the third condition set out in Part 1 of Schedule 1 (youth).”