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Welfare Reform Act 2012

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Section 35

SCHEDULE 5E+W+SUniversal credit and other working-age benefits

This schedule has no associated Explanatory Notes

GeneralE+W+S

1(1)In this Schedule “relevant benefit“ means—E+W+S

(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 entitlementE+W+S

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.E+W+S

(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 benefitsE+W+S

3Regulations may provide—E+W+S

(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 paymentsE+W+S

4Regulations 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.E+W+S

Earnings tapersE+W+S

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

(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.E+W+S

(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.

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