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Social Security (Additional Payments) Act 2022

Contents

Commentary on provisions of Act

Means-tested additional payments

Section 1: Means-tested additional payments: main payments

  1. Subsection (1) provides that the Secretary of State makes two Means-tested Additional Payments of £326 and £324 to a person with a qualifying eligible entitlement. Eligibility for the Means-tested Additional Payment is defined by a person having a qualifying entitlement to a social security benefit in respect of the first qualifying day for the first payment and the second qualifying day for the second payment. 
  2. Subsection (2) provides for HMRC to make two Means-tested Additional Payments of £326 and £324 to an eligible person. Eligibility for the Means-tested Additional Payment is defined by a person having a qualifying entitlement to Child Tax Credit or Working Tax Credit but not to a social security benefit in respect of the first qualifying day for the first payment and the second qualifying day for the second payment. 
  3. Subsection (3) defines the social security benefits as: 
    1. Universal Credit under the Welfare Reform Act 2012 or the Welfare Reform (Northern Ireland) Order 2015 (S.I 2015/2006 (N.I. 1)); 
    2. State Pension Credit under the State Pension Credit Act 2002 or the State Pension Credit Act (Northern Ireland) 2002; 
    3. An Income-Based Jobseeker’s Allowance under the Jobseekers Act 1995 or the Jobseekers (Northern Ireland) Order 1995 (S.I. 1995/2705 (N.I. 15)); 
    4. An Income-Related Employment and Support Allowance under Part 1 of the Welfare Reform Act 2007 or Part 1 of the Welfare Reform Act (Northern Ireland) 2007; 
    5. Income Support under section 124 of the Social Security Contributions and Benefits Act 1992 or section 123 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992. 
  4. Subsection (4) provides that the second qualifying day will be no later than 31 October 2022. It also provides that the Secretary of State will specify the second qualifying date in regulations. 
  5. Subsection (5) provides that the second qualifying day specified in regulations can be on a day before the regulations come into force. 
  6. Subsection (6) defines that a person is an individual or a couple (but not each member of a couple separately). 

Section 2: Qualifying entitlements

  1. Subsection (1) defines what is meant as a qualifying entitlement to a social security benefit by reference to a qualifying day: 
    1. For Universal Credit, a person must have an entitlement to a payment of at least 1p in respect of an assessment period that ends during the period of one month ending with the qualifying day, 
    2. For State Pension Credit, an Income-Based Jobseeker’s Allowance, an Income Related Employment and Support Allowance or Income Support, a person must have an entitlement to a payment of at least 1p in respect of any day during the period of one month ending with the qualifying day. 

      Example 1: Qualifying entitlement to Universal Credit for the first Means-tested Additional Payment 

      To be eligible for the first Means-tested Additional Payment a person must have an entitlement to a Universal Credit payment of at least 1p in respect of an assessment period that ends within the month ending on 25 May 2022 (26 April 2022 to 25 May 2022 inclusive). 


      Example (2): Qualifying Entitlement to Income Support for the first Means-tested Additional Payment. 

      To be eligible for the first Means-tested Additional Payment a person must have an entitlement to an Income Support payment of at least 1p on any day in the period 26 April 2022 to 25 May 2022. 

  2. Subsection (2) defines what is meant by the qualifying entitlement to Child Tax Credit or Working Tax Credit by reference to a qualifying day. A person must have received a payment or have an award in respect of any day in the period of one month ending with the qualifying day. The payment or award must be expected to total at least £26 for the tax year 2022-23.

    Example (3): Qualifying entitlement to Child Tax Credit for the first Means-tested Additional Payment.

    To be eligible for the first Means-tested Additional Payment a person must have a payment or an award of Child Tax Credit of at least £26 for the tax year 2022-23, and have received a payment or have an award on any day within the month ending on 25 May 2022 (26 April 2022 to 25 May 2022 inclusive).

  3. Subsection (3) clarifies that a person will not be eligible for the Means-Tested Benefit Payments if they have received a payment or an award made as a result of fraud.

Section 3: Applicable benefits or tax credits

  1. Subsection (1) provides that where a person has a qualifying entitlement to Universal Credit and to another social security benefit in respect of a qualifying day, the Means-tested Additional Payment is to be paid in reference to entitlement of Universal Credit. 
  2. Subsection (2) provides that where a person has a qualifying entitlement to Child Tax Credit and to Working Tax Credit in respect of a qualifying day, the Means-tested Additional Payment is to be paid in reference to entitlement of Child Tax Credit. This means that the payment will be made in the same manner as, and to the same recipient of, the Child Tax Credit. 

    Example (3): A person with a qualifying entitlement to more than one social security benefit

    An individual reaches State Pension age on 17 May and is entitled to a Universal Credit payment of at least 1p in respect of an assessment period ending on 21 May. With effect from 17 May, they also now have an entitlement to a State Pension Credit payment of at least 1p. They will be eligible for the Means-tested Additional Payment as a result of their qualifying entitlement to Universal Credit because Universal Credit takes precedence over other social security benefits as set out in Section 3(1). 

Section 4: Means-tested additional payments: final payments

  1. Subsections (1) and (2) provide that, where a person has an award or payments of tax credits totalling at least £26 for the tax year 2022-23, and did not receive payments or an award in respect of the qualifying day for the first and/or second Mean-tested Additional Payment, but HMRC subsequently finds that the person should have received payments or an award for that eligibility period, then HMRC must pay them the respective Additional Payment if they have not already received it. 
  2. Subsection (3) provides that where a person is entitled under this section to Child Tax Credit and Working Tax Credit, the Means-tested Additional Payment is to be paid in reference to entitlement of Child Tax Credit.  
  3. Subsection (4) clarifies that person will not be eligible for payments made under this section if they are awarded or have received a payment because of fraud. 

Section 5: Disability additional payments

  1. Subsection (1) provides that the Secretary of State makes a single Disability Additional Payment of £150 to each individual who is entitled to a qualifying payment of a disability benefit that is payable in respect of 25 May 2022. 
  2. Subsection (2) defines the qualifying disability benefits as: 
    1. A Disability Living Allowance under section 71 of the Social Security Contributions and Benefits Act 1992 or section 71 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992; 
    2. A Personal Independence Payment under the Welfare Reform Act 2012 or Part 5 of the Welfare Reform (Northern Ireland) Order 2015; 
    3. An Attendance Allowance under section 64 of the Social Security Contributions and Benefits Act 1992 or section 64 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992; 
    4. A Constant Attendance Allowance under section 104 of the Social Security Contributions and Benefits Act 1992 or section 104 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992; 
    5. An Adult Disability Payment under the Disability Assistance for Working Age People (Scotland) Regulations 2022 (S.S.I. 2022/54); 
    6. A Child Disability Payment under the Disability Assistance for Children and Young People (Scotland) Regulations 2021 (S.S.I 2021/174); 
    7. An Armed Forces Independence Payment under article 24A of the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011 (S.I. 2011/517); 
    8. A Constant Attendance Allowance under:
      1. Article 14 or 43 of the Personal Injuries (Civilians) Scheme 1983 (S.I. 1983/686); 
      2. Article 8 of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 2006 (S.I. 2006/606); 
    9. A Mobility Supplement under:
      1. Article 25A or 48A of the Personal Injuries (Civilians) Scheme 1983; 
      2. Article 20 of the Naval Military and Air Forces etc. (Disablement and Death) Service Pensions Order 2006. 
  3. Subsection (3) provides that where an individual is entitled to a payment of more than one disability benefit that is payable in respect of 25 May 2022, the Disability Additional Payment is to be paid in reference to the disability benefit that comes first in the list in subsection (2) which the individual has a qualifying entitlement to. 

Administration etc

Section 6: Administration of additional payments

  1. Subsection (1) provides that for the purposes of administration of the additional payments, any provisions applying in relation to a social security benefit, tax credit or disability benefit which the Additional Payment is paid in reference to, will apply as if the Additional Payment were a payment or award of the social security benefit, tax credits or disability benefit in question. 
  2. Subsection (2) provides that in subsection (1), the provisions relating to the social security benefit, tax credit or disability benefit that will apply will include: 
    1. Overpayment and recovery.
    2. Appeals relating to overpayment and recovery.
  3. Subsections (1) and (2) do not include provisions relating to appeals or reviews about entitlement to the social security benefit, tax credit or disability benefit in question. The provisions relating to the social security benefit, tax credit or disability benefit will be subject to any necessary modifications. 
  4. Subsection (3) provides that the provisions in subsection (1) equally apply to purported additional payments which were not in fact made in compliance with the duties under section (1) and (4). 
  5. Subsection (4) provides that subsection (1) (including with respect to subsection (3)) is subject to regulations made by the Secretary of State, the Treasury or HMRC under subsection (5). 
  6. Subsection (5) provides that regulations may be made in relation to the Additional Payments by the Secretary of State, the Treasury or HMRC to apply or disapply, with or without modifications, any provision applying in relation to a social security benefit, tax credit or disability benefit. 
  7. Subsection (6) provides that regulations made under subsection (5) may have effect from the day the Act comes into force.

Section 7: Cooperation etc between the Secretary of State and HMRC 

  1. Subsection (1) requires cooperation between the Secretary of State and HMRC in the delivery of these payments. 
  2. Subsections (2), (3) and (4) make provisions for data sharing between HMRC, the Secretary of State, Department for Communities in Northern Ireland and Scottish Ministers. 
  3. Subsection (2) modifies s.3 of the Social Security Act 1998 to allow for disclosure of information in relation to the Additional Payments between HMRC, Secretary of State for Work and Pensions and Secretary of State for Defence and Department for Communities. 
  4. Subsection (3) modifies s. 127 of the Welfare Reform Act such that Secretary of State and HMRC are able to share and use information in relation to the Additional Payments. 
  5. Subsection (4) modifies section 34 of the Scotland Act 2016 to allow disclosure in relation to the Additional Payments between the Secretary of State and Scottish Ministers. 
  6. Subsections (5) and (6) make provisions for instances where it is found that a payment has been made by HMRC that should have been made by the Secretary of State, or vice versa. In such cases, providing that no duplicate payment has been made, the payment shall be treated as having been made in accordance with the applicable duty, and therefore is not recoverable. This ensures that a payment does not have to be recovered and reissued by the correct body. 

Section 8: Payments to be disregarded for the purposes of tax and social security

  1. The content of this section is self-explanatory.

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