Office of Public Sector Information

Office of Public Sector Information

Main navigation

Supplementary menus and contents

9 Extension to personal pensions of occupational pension provisions relating to the abatement of unemployment benefit and the meaning of “earnings”

(1) In section 5 of the [1980 c. 39.] Social Security (No. 2) Act 1980 (abatement of unemployment benefit on account of payments of occupational pensions) in subsections (1), (2) and (4) for the words “occupational pension” in each place where they occur there shall be substituted the words “occupational or personal pension”.

(2) In subsection (3) of that section (definitions) for the definition of “payments by way of occupational pension” there shall be substituted—

“payments by way of occupational or personal pension” means, in relation to a person, periodical payments which, in connection with the coming to an end of an employment of his, fall to be made to him—

(a) out of money provided wholly or partly by the employer or under arrangements made by the employer; or

(b) out of money provided under an enactment or instrument having the force of law in any part of the United Kingdom or elsewhere; or

(c) under a personal pension scheme as defined in section 84(1) of the [1986 c. 50.] Social Security Act 1986; or

(d) under a contract or trust scheme approved under Chapter III of Part XIV of the [1988 c. 1.] Income and Corporation Taxes Act 1988; or

(e) under a personal pension scheme approved under Chapter IV of that Part of that Act,

and such other payments as are prescribed.

(3) In sections 47B and 66A of the principal Act (earnings to include occupational pensions for the purposes of certain benefits) for the words “occupational pension” in each place where they occur there shall be substituted the words “occupational or personal pension”.

(4) In Schedule 20 to that Act (glossary of expressions) in the entry relating to “payments by way of occupational pension” for the words “occupational pension” there shall be substituted the words “occupational or personal pension”.

10 Unemployment benefit: requirement to seek employment actively

(1) Section 17 of the principal Act (determination of days for which benefit is payable) shall have effect with the amendments made by subsections (2) to (4) below, which are made for the purpose of requiring a claimant for unemployment benefit to show that he is actively seeking employment.

(2) In subsection (1)(a)(i) (days not to be treated as days of unemployment unless certain conditions are fulfilled) after the words “available to be employed in employed earner’s employment” there shall be inserted the words “and that day falls in a week in which he is, or is deemed in accordance with regulations to be, actively seeking such employment”.

(3) In subsection (2) (regulations) after paragraph (a) there shall be inserted—

(aa) make provision with respect to—

(i) steps which a person is required to take in any week if he is to be regarded as actively seeking employed earner’s employment in that week;

(ii) the meaning of “week” in subsection (1)(a)(i) above or in any other provision relating to a person’s actively seeking employed earner’s employment;.

(4) After subsection (2A) of that section (determination of actual availability for employment on review of determination of deemed availability) there shall be inserted—

(2B) Where it has been determined that a person is to be deemed in accordance with regulations to be actively seeking employed earner’s employment in any week, the question of his actually doing so in that week may be subsequently determined on a review of the determination as to his deemed doing so.

(5) In section 104 of that Act (review of decisions), in subsection (1)(d), after the words “section 17(2A)” there shall be inserted the words “or (2B)”.

11 Requalification for unemployment benefit

In section 18 of the principal Act, for subsection (2) (requalification for unemployment benefit) there shall be substituted—

(2) A person who has exhausted his right to unemployment benefit requalifies for it on the next occasion when, having again been in employment as an employed earner, he makes a claim for that benefit in circumstances such that the requalification conditions are satisfied with respect to each of at least 13 weeks in the period of 26 weeks immediately preceding—

(a) the day on which the claim is made, or

(b) if he would not requalify by reference to that day, his first day of unemployment since he was last in employment as an employed earner.

(2A) For the purposes of subsection (2) above the requalification conditions are satisfied with respect to any week if—

(a) the person in question has been in employment as an employed earner in that week;

(b) he has worked in such employment for at least 16 hours in that week; and

(c) the week begins after the last day for which he was entitled to unemployment benefit.

(2B) Subsection (2) above shall have effect in prescribed cases with the substitution for the reference to 26 weeks of a reference to such longer period as may be prescribed.

12 Disqualification for unemployment benefit

(1) In subsection (1) of section 20 of the principal Act (disqualifications etc)—

(a) at the beginning, there shall be inserted the words “Subject to section 20A below”;

(b) in paragraphs (b), (c) and (d), for the words “suitable employment” there shall be substituted the word “employment”;

(c) in paragraphs (c) and (g), immediately before the word “neglected” there shall be inserted the words “without good cause”.

(2) In subsection (1A) of that section the words “longer or” shall cease to have effect.

(3) For subsection (4) of that section (meaning of “suitable employment”) there shall be substituted—

(4) For the purposes of subsection (1) above, regulations may—

(a) prescribe matters which are or are not to be taken into account in determining whether a person does or does not have good cause for any act or omission; or

(b) prescribe circumstances in which a person is or is not to be regarded as having or not having good cause for any act or omission;

but, subject to any such regulations, in determining for the purposes of that subsection whether a person does or does not have good cause for any act or omission, there shall be disregarded any matter relating to the level of remuneration in the employment in question.

(4) After that section there shall be inserted—

20A Exemptions from disqualification for unemployment benefit

(1) Nothing in section 20 above or in regulations under that section shall be taken to disqualify a person for receiving unemployment benefit by reason only of his refusal—

(a) to seek or accept employment in a situation which is vacant in consequence of a stoppage of work due to a trade dispute; or

(b) to seek or accept during the permitted period any employment other than employment in his usual occupation at a level of remuneration not lower than he is accustomed to receive.

(2) Regulations shall make provision for the purpose of enabling any person of a prescribed description to accept any employed earner’s employment without being disqualified under—

(a) subsection (1)(a) of section 20 above, so far as it relates to a person who voluntarily leaves such employment without just cause, or

(b) subsection (1)(c) of that section,

should he leave that employment voluntarily and without just cause at any time after the end of the sixth week, but not later than the end of the twelfth week, of a trial period.

(3) In this section—

  • “permitted period”, in relation to any person, means such period, whether expired or not, as may be determined in accordance with regulations by an adjudication officer on the submission of the question whether that person is disqualified under section 20 above for receiving unemployment benefit; and any such regulations may prescribe—

(a) the day on which any such period shall be regarded as having commenced in any case;

(b) the shortest and longest periods which may be so determined in any case; and

(c) criteria to which the adjudication officer is to have regard in determining the permitted period in any case; and

  • “trial period” means a period of twelve weeks beginning with the commencement of the employment in question; but regulations may—

(a) make provision for the purpose of determining the day on which a person’s employment is to be regarded as commencing; and

(b) provide that, for the purpose of determining the time at which the sixth or twelfth week of a trial period ends, prescribed periods may be disregarded in prescribed circumstances.

(5) In Schedule 20 to that Act (glossary of expressions) in the second column of the entry relating to “employment”, the following paragraph shall be added at the end—

Regulations may make provision modifying the meaning of “employment” for the purposes of any provision of this Act.

(6) Nothing in subsection (2) above shall affect the continuing operation of the [S.I. 1988/487.] Unemployment Benefit (Disqualification Period) Order 1988 (which substituted the period of 26 weeks for the period of 13 weeks in section 20(1) of the principal Act).

Income-related benefits

13 Income support and unemployment

(1) In section 20 of the 1986 Act (income-related benefits) in subsection (3)(d)(i) (availability for employment as a condition for income support) after the words “available for” there shall be inserted the words “, and actively seeking,”.

(2) In subsection (12) of that section, for paragraph (d) (regulations defining availability for employment etc) there shall be substituted—

(d) as to circumstances in which a person is or is not to be treated as—

(i) engaged or normally engaged in remunerative work;

(ii) available for employment; or

(iii) actively seeking employment;.

14 Housing benefit to take the form of payments or reductions

(1) In section 28 of the 1986 Act (arrangements for housing benefit) after subsection (1) there shall be inserted—

(1A) The rebates and allowances referred to in subsection (1) above may take any of the following forms, that is to say—

(a) a payment or payments by the authority to the person entitled to the benefit;

(b) a reduction in the amount of any payments which that person is liable to make to the authority by way of rent or rates; or

(c) such a payment or payments and such a reduction;

and in any enactment or instrument (whenever passed or made) “pay”, in relation to housing benefit, includes discharge in any of those forms.

(2) Subsection (1) above shall be deemed to have come into force on 1st April 1988.

15 Housing benefit subsidy

(1) In section 30 of the 1986 Act, in subsection (2) (computation etc of housing benefit subsidy) the words following paragraph (b), other than those added by the Local Government and Housing Act 1989, shall cease to have effect and after that subsection there shall be inserted—

(2A) In relation to rent allowance subsidy, the Secretary of State—

(a) may specify any such additions and deductions as are referred to in paragraph (a) of subsection (2) above, and

(b) may exercise his discretion as to what is unreasonable for the purposes of paragraph (b) of that subsection,

by reference to determinations made by rent officers in exercise of functions conferred on them under section 121 of the Housing Act 1988 or section 70 of the Housing (Scotland) Act 1988 (“the Housing Act functions”).

(2B) The Secretary of State may by regulations require a local authority in any prescribed case to apply to a rent officer for a determination to be made in pursuance of the Housing Act functions and any such authority shall comply with prescribed requirements as to the time for making such an application.

(2C) Where a local authority would have been required to apply to a rent officer for a determination under the Housing Act functions in a pre-commencement case, had the first regulations under subsection (2B) above come into force on 1st April 1989, regulations may make provision—

(a) requiring the authority in prescribed circumstances to apply within a prescribed period to the rent officer for that determination to be made; and

(b) requiring the rent officer in prescribed circumstances to make that determination on prescribed assumptions;

and in this subsection “pre-commencement case” means any case which arises before the date on which the first regulations under subsection (2B) above in fact come into force.

(2) For subsection (8) of that section (conditions for payment of subsidy) there shall be substituted the following—

(8) Subsidy under this section shall be payable by the Secretary of State at such time and in such manner as the Treasury may direct.

(8A) Subsidy shall not be payable to an authority until either—

(a) they have made a claim for it in such form as the Secretary of State may determine; or

(b) if they have not made such a claim, the amount of subsidy payable to them (apart from subsection (8F) below) has been estimated under subsection (8C) below.

(8B) The Secretary of State may withhold from an authority so much of any subsidy under this section as he thinks fit until either—

(a) the authority has supplied him with prescribed particulars relating to their claim for subsidy and complied with prescribed conditions as to records, certificates, audit or otherwise; or

(b) he is satisfied that there is a good reason for the authority’s failure to supply those particulars or comply with those conditions.

(8C) If an authority has not—

(a) made a claim for subsidy,

(b) supplied the prescribed particulars referred to in paragraph (a) of subsection (8B) above, or

(c) complied with the prescribed conditions referred to in that paragraph,

within the prescribed period, then the Secretary of State may estimate the amount of subsidy payable to them (apart from subsection (8F) below) and may employ for that purpose such criteria as he considers relevant.

(8D) If the Secretary of State considers it reasonable to do so in any particular case, he may give the authority in question written notice extending any of the periods prescribed under subsection (8C) above for the purposes of paragraph (a), (b) or (c) of that subsection, as the case may be.

(8E) If an authority fails to make a claim for subsidy within such period as the Secretary of State considers reasonable, he may withhold from them such part of the subsidy as he thinks fit for so long as he thinks fit.

(8F) Where the amount of subsidy paid to an authority for any year is found to be incorrect, the amount payable to them for any subsequent year may be adjusted for the purpose of rectifying that mistake in whole or in part.

16 Expenses of Secretary of State in making transitional payments relating to income support and housing benefit

(1) Any expenses of the Secretary of State in making payments to persons falling within subsection (2) or (3) below may be paid out of money provided by Parliament.

(2) A person falls within this subsection if—

(a) he was entitled to supplementary benefit immediately before 11th April 1988, but

(b) he did not become entitled to income support in respect of the week beginning with that day.

(3) A person falls within this subsection if he was entitled to any one or more of the former housing-related benefits in respect of a qualifying week but either—

(a) he did not become entitled to housing benefit under Part II of the 1986 Act in respect of the commencement week, or

(b) the amount of any such housing benefit to which he became entitled in respect of that week was less than the amount of the former housing-related benefits to which he had been entitled in respect of the qualifying week.

(4) In this section—

  • “commencement day” means the day on which the new provisions came into force in the case of the person in question (1st or 4th April 1988, according to the circumstances);

  • “commencement week”, in relation to any person, means the week beginning with the commencement day in his case;

  • “the former housing-related benefits” means—

(a) rent rebates, rate rebates and rent allowances, within the meaning of Part II of the 1982 Act; and

(b) housing benefit supplement;

  • “the new provisions” means the following provisions of Part II of the 1986 Act, so far as relating to housing benefit, that is to say, sections 20 to 22, 28 and 29;

  • “qualifying week”, in relation to any person, means any week beginning on or after 21st March 1988 and ending before the commencement day in his case;

  • “week” means a period of seven days.

(5) For the purposes of this section—

(a) a person shall be regarded as having been entitled to housing benefit supplement in respect of a week if an amount was applicable in respect of him under regulation 19 of the [S. I. 1983/1399.] Supplementary Benefit (Requirements) Regulations 1983 in respect of that week; and

(b) the amount of housing benefit supplement to which he was entitled in respect of that week shall be taken to be an amount equal to the amount so applicable.

Up-rating

17 Rectification of mistakes in up-rating orders

(1) After section 63 of the 1986 Act (annual review of certain sums) there shall be inserted the following—

63A Rectification of mistakes in orders under section 63

(1) If the Secretary of State is satisfied that a mistake (whether in computation or otherwise) has occurred in the preparation of the previous order under section 63 above, he may by order vary the amount of any one or more of the sums specified in an enactment mentioned in subsection (1)(a) of that section by increasing or reducing it to the level at which it would have stood had the mistake not occurred.

(2) Where the amount of any such sum is varied under this section, then, for the purposes of the next review and order under that section, the amount of the sum shall be taken to be, and throughout the period under review to have been, its amount as so varied.

(2) In that Act—

(a) in section 64 (effect of alteration of rates of benefit) in subsection (1)(b), after the words “section 63” there shall be inserted the words “or 63A”;

(b) in section 83, in subsection (3) (statutory instruments which require affirmative procedure) in paragraph (d), after the words “section 63” there shall be inserted the words “or 63A”; and

(c) in subsection (5) of that section (Treasury consent) for the words “or 63” there shall be substituted the words “,63 or 63A”.

(3) In section 59B of the principal Act (retirement allowance) after subsection (5) there shall be inserted—

(5A) For the purpose of determining under subsection (5) above the weekly rate of retirement allowance in the case of a beneficiary who—

(a) retires or is deemed to have retired on 10th April 1989, and

(b) on 9th April 1989 was entitled to reduced earnings allowance at a rate which was restricted under section 59A(8) above by reference to 40 per cent. of the maximum rate of disablement pension,

it shall be assumed that the weekly rate of reduced earnings allowance to which he was entitled on 9th April 1989 was £26.96.

(4) Section 2 of the [1988 c. 7.] Social Security Act 1988 (certain persons to be entitled to reduced earnings allowance after introduction of retirement allowance etc) shall have effect with the amendments specified in subsections (5) and (6) below.

(5) After subsection (5) there shall be inserted—

(5A) For the purpose of determining under subsection (5) above the weekly rate of reduced earnings allowance payable in the case of a qualifying beneficiary, it shall be assumed that the weekly rate at which the allowance was payable to him on the relevant date was—

(a) £25.84, where that date is 10th April 1988, or

(b) £26.96, where that date is 9th April 1989.

(5B) In subsection (5A) above “qualifying beneficiary” means a person entitled to reduced earnings allowance by virtue of subsection (4) above who—

(a) did not attain pensionable age before 6th April 1987, or

(b) did not retire from regular employment before that date,

and who, on the relevant date, was entitled to the allowance at a rate which was restricted under section 59A(8) of the Social Security Act 1975 by reference to 40 per cent. of the maximum rate of disablement pension.

(6) In subsection (7) (relevant date for persons entitled to the allowance by virtue of subsection (4)(b)) after the words “by virtue” there shall be inserted the word “only”.

(7) Subsections (3) to (6) above shall be deemed to have come into force on 10th April 1989.

18 Effect of alteration in the component rates of income support

After section 64 of the 1986 Act (effect of alteration of rates of benefit) there shall be inserted—

64A Effect of alteration in the component rates of income support

(1) Subject to such exceptions and conditions as may be prescribed, where—

(a) an award of income support is in force in favour of any person (“the recipient”), and

(b) there is an alteration in any of the relevant amounts, that is to say—

(i) any of the component rates of income support,

(ii) any of the other sums specified in regulations under Part II above, or

(iii) the recipient’s benefit income, and

(c) the alteration affects the computation of the amount of income support to which the recipient is entitled,

then subsection (2) or (3) below (as the case may be) shall have effect.

(2) Where, in consequence of the alteration in question, the recipient becomes entitled to an increased or reduced amount of income support (“the new amount”), then, as from the commencing date, the amount of income support payable to or for the recipient under the award shall be the new amount, without any further decision of an adjudication officer, and the award shall have effect accordingly.

(3) Where, notwithstanding the alteration in question, the recipient continues on and after the commencing date to be entitled to the same amount of income support as before, the award shall continue in force accordingly.

(4) In any case where—

(a) there is an alteration in any of the relevant amounts, and

(b) before the commencing date (but after that date is fixed) an award of income support is made in favour of a person,

the award either may provide for income support to be paid as from the commencing date, in which case the amount shall be determined by reference to the relevant amounts which will be in force on that date, or may provide for an amount determined by reference to the amounts in force at the date of the award.

(5) In this section—

  • “alteration” means—

(a) in relation to—

(i) the component rates of income support, or

(ii) any other sums specified in regulations under Part II of this Act,

their alteration by or under any enactment, whether or not contained in that Part; and

(b) in relation to a person’s benefit income, the alteration of any of the sums referred to in section 63(1) above—

(i) by any enactment, or

(ii) by an order under section 63 or 63A above,

to the extent that any such alteration affects the amount of his benefit income;

  • “benefit income”, in relation to any person, means so much of his income as consists of—

(a) benefit under the benefit Acts, other than income support; or

(b) a war disablement pension or war widow’s pension;

  • “the commencing date”, in relation to an alteration, means the date on which the alteration comes into force in the case of the person in question;

  • “component rate”, in relation to income support, means the amount of—

(a) any of the sums specified in regulations under section 22(1) above; or

(b) the sum referred to in section 23(5)(b)(i) and (ii) above;

  • “relevant amounts” has the meaning given by subsection (1)(b) above.

Information and adjudication

19 Unauthorised disclosure of information relating to particular persons

(1) A person who is or has been employed in social security administration or adjudication is guilty of an offence if he discloses without lawful authority any information which he acquired in the course of his employment and which relates to a particular person.

(2) A person who is or has been employed in the audit of expenditure or the investigation of complaints is guilty of an offence if he discloses without lawful authority any information—

(a) which he acquired in the course of his employment;

(b) which is, or is derived from, information acquired or held by or for the purposes of any of the government departments or other bodies or persons referred to in Part I of Schedule 2 to this Act or in any corresponding enactment having effect in Northern Ireland; and

(c) which relates to a particular person.

(3) It is not an offence under this section—

(a) to disclose information in the form of a summary or collection of information so framed as not to enable information relating to any particular person to be ascertained from it; or

(b) to disclose information which has previously been disclosed to the public with lawful authority.

(4) It is a defence for a person charged with an offence under this section to prove that at the time of the alleged offence—

(a) he believed that he was making the disclosure in question with lawful authority and had no reasonable cause to believe otherwise; or

(b) he believed that the information in question had previously been disclosed to the public with lawful authority and had no reasonable cause to believe otherwise.

(5) A person guilty of an offence under this section shall be liable—

(a) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine or both; or

(b) on summary conviction, to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum or both.

(6) For the purposes of this section, the persons who are “employed in social security administration or adjudication” are—

(a) any person specified in Part I of Schedule 2 to this Act or in any corresponding enactment having effect in Northern Ireland;

(b) any other person who carries out the administrative work of any of the government departments or other bodies or persons referred to in that Part of that Schedule or that corresponding enactment; and

(c) any person who provides, or is employed in the provision of, services to any of those departments, persons or bodies;

and “employment”, in relation to any such person, shall be construed accordingly.

(7) For the purposes of subsections (2) and (6) above, any reference in Part I of Schedule 2 to this Act or any corresponding enactment having effect in Northern Ireland to a government department shall be construed in accordance with Part II of that Schedule or any corresponding enactment having effect in Northern Ireland, and for this purpose “government department” shall be taken to include the Commissioners of Inland Revenue.

(8) For the purposes of this section, the persons who are “employed in the audit of expenditure or the investigation of complaints” are—

(a) the Comptroller and Auditor General;

(b) the Comptroller and Auditor General for Northern Ireland;

(c) the Parliamentary Commissioner for Administration;

(d) the Northern Ireland Parliamentary Commissioner for Administration;

(e) the Health Service Commissioner for England;

(f) the Health Service Commissioner for Wales;

(g) the Health Service Commissioner for Scotland;

(h) the Northern Ireland Commissioner for Complaints;

(i) any member of the staff of the National Audit Office or of the Northern Ireland Audit Office;

(j) any other person who carries out the administrative work of either of those Offices, or who provides, or is employed in the provision of, services to either of them; and

(k) any officer of any of the Commissioners referred to in paragraphs (c) to (h) above;

and “employment”, in relation to any such person, shall be construed accordingly.

(9) For the purposes of this section a disclosure is to be regarded as made with lawful authority if, and only if, it is made—

(a) in accordance with his official duty—

(i) by a civil servant; or

(ii) by a person employed in the audit of expenditure or the investigation of complaints who does not fall within subsection (8)(j) above;

(b) by any other person either—

(i) for the purposes of the function in the exercise of which he holds the information and without contravening any restriction duly imposed by the person responsible; or

(ii) to, or in accordance with an authorisation duly given by, the person responsible;

(c) in accordance with any enactment or order of a court;

(d) for the purpose of instituting, or otherwise for the purposes of, any proceedings before a court or before any tribunal or other body or person referred to in Part I of Schedule 2 to this Act; or

(e) with the consent of the appropriate person;

and in this subsection “the person responsible” means the Secretary of State, the Lord Chancellor or any person authorised by the Secretary of State or the Lord Chancellor for the purposes of this subsection and includes a reference to “the person responsible” within the meaning of any corresponding enactment having effect in Northern Ireland.