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Summary of the Welfare Reform Act
The Act applies to England and Wales and Scotland , but not to Northern Ireland, who will produce their own Bill.
The Act consists of five Parts:
Part 1 - Social security
Part 2 - Disabled people: right to control provision of services
Part 3 - Child maintenance
Part 4 - Birth Registration
Part 5 - Miscellaneous and supplementary
Proposals in the Act include:
Abolition of income support - The Act sets out the framework necessary for the future abolition of income support, and the movement of claimants of that benefit to jobseeker's allowance with differing degrees of conditionality, or to employment and support allowance.
Work for your benefit schemes - These mandatory schemes will be piloted for long-term jobseekers and some jobseekers who are likely to benefit from the scheme at an earlier stage. The scheme aims to give jobseekers the opportunity to develop their work skills through undertaking full time work-experience.
Lone parents and partners of benefit recipients - Parents with younger children (those not required to sign on) and partners of benefit recipients will placed in a 'Progression to Work' group. Those placed in this group are not expected to immediately return to work but will instead be given a "personalised conditionality regime which is tailored to the individual's circumstances, so that preparation for work becomes a natural progression rather than a sudden step up". Those in the Progression to Work group are required to undertake action planning and work-related activities.
Employment and support allowance (ESA) claimants - Provision is made in the Act to direct an to undertake a specific work-related activity in certain circumstances. This extends the provision in section 13 of the Welfare Reform Act 2007 which requires ESA claimants (with the exception of those in the support group) to undertake a work-related activity of their choice.
Drug users and alcohol abusers - Clause 9 and Schedule 3 of the Act provide for problem drugs users and those who have problems with alcohol to be directed to make, and comply with, a rehabilitation plan. In some circumstances they could also be required to undergo drug testing.
Contribution conditions for contributory jobseeker's allowance and employment and support allowance - These will be amended so that in order to qualify, new claimants will normally need to have paid national insurance contributions for at least 26 weeks in one of the last two tax years prior to the claim.
Adult dependency increases - There is a provision in the Act to remove adult dependency increase from maternity allowance and from carer's allowance.
Social Fund - Following the end of the consultation, the social fund: a new approach, the Act allows for the provision of 'external provider social loans' and payment of benefit on account, without the need to apply for a crisis loan.
Part 2 confers regulation-making powers that can be used to give adult disabled people greater choice and control over the way in which relevant services (defined in clause 29) are provided by relevant authorities (defined in clause 30). The Government intends that regulations should initially make pilot schemes having temporary effect, so Part 2 includes provisions allowing this. It also introduces a statutory requirement to consult over specified draft regulations.
This section deal with the enforcement of child maintenance. Currently the courts have the power to disqualify from driving or commit to prison non-resident parents who have failed to pay child maintenance. The Child Maintenance and Other Payments Act 2008 added to these powers the ability to curfew or to disqualify from holding or obtaining travel authorisation. This Part makes provision to allow the Child Maintenance and Enforcement Commission to make the decision in the case of disqualification for holding or obtaining a driving licence or travel authorisation, with the court dealing with appeals against the Commission's decision.
This section covers the joint register of the birth of children.
This Part contains clauses dealing with consequential amendments, repeals and revocations of other legislation, financial provisions, the extent of the Act, commencement of provisions of the Act, and the short title.
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