Welfare Reform Act 2012

41 Pilot schemes

(1) Any power to make—

(a) regulations under this Part,

(b) regulations under the Social Security Administration Act 1992 relating to universal credit, or

(c) regulations under the Social Security Act 1998 relating to universal credit,

may be exercised so as to make provision for piloting purposes.

(2) In subsection (1), “piloting purposes”, in relation to any provision, means the purposes of testing—

(a) the extent to which the provision is likely to make universal credit simpler to understand or to administer,

(b) the extent to which the provision is likely to promote—

(i) people remaining in work, or

(ii) people obtaining or being able to obtain work (or more work or better-paid work), or

(c) the extent to which, and how, the provision is likely to affect the conduct of claimants or other people in any other way.

(3) Regulations made by virtue of this section are in the remainder of this section referred to as a “pilot scheme“.

(4) A pilot scheme may be limited in its application to—

(a) one or more areas;

(b) one or more classes of person;

(c) persons selected—

(i) by reference to prescribed criteria, or

(ii) on a sampling basis.

(5) A pilot scheme may not have effect for a period exceeding three years, but—

(a) the Secretary of State may by order made by statutory instrument provide that the pilot scheme is to continue to have effect after the time when it would otherwise expire for a period not exceeding twelve months (and may make more than one such order);

(b) a pilot scheme may be replaced by a further pilot scheme making the same or similar provision.

(6) A pilot scheme may include consequential or transitional provision in relation to its expiry.