SCHEDULES

SCHEDULE 5Universal credit and other working-age benefits

Section 35

General

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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

I12

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

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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.