Office of Public Sector Information
(6F) A disability working allowance shall be payable for a period of 26 weeks or such other period as may be prescribed and, subject to regulations, an award of a disability working allowance and the rate at which it is payable shall not be affected by any change of circumstances during that period or by any order under section 63 below.”.
(5) In the application of subsection (6B) of section 20 to claims made or treated as made before the first day in respect of which disability living allowance is payable paragraph (b) of that subsection shall have effect as if the following sub-paragraph were substituted for sub-paragraph (ii)—
“(ii) a mobility allowance under section 37A of that Act;”.
(6) In subsection (11)—
(a) after the definition of family there shall be inserted—
““industrial injuries scheme” means a scheme made under section 159 of the [1975 c. 14.] Social Security Act 1975 or under the [1975 c. 16.] Industrial Injuries and Diseases (Old Cases) Act 1975;”; and
(b) after the definition of unmarried couple there shall be inserted—
““war pension scheme” means a scheme under which war pensions (as defined in section 25 of the [1989 c. 24.] Social Security Act 1989) are provided;”.
(7) The following paragraph shall be inserted after subsection (12)(f)—
“(ff) specifying the descriptions of pension increases under war pension schemes or industrial injuries schemes that are analogous to the benefits mentioned in subsection (6B)(b)(i) to (iii) above;”.
(8) The following subsections shall be inserted after subsection (3) of section 21 of the 1986 Act (amount of income-related benefits)—
“(3A) Where a person is entitled to a disability working allowance by virtue of section 20(6A)(c)(i) above, the amount shall be the amount which is the appropriate maximum disability working allowance in his case.
(3B) Where a person is entitled to a disability working allowance by virtue of section 20(6A)(c)(ii) above, the amount shall be what remains after the deduction from the appropriate maximum disability working allowance of a prescribed percentage of the excess of his income over the applicable amount.”.
(9) The following paragraph shall be inserted after subsection (6)(a) of that section—
“(aa) the appropriate maximum disability working allowance;”.
(1) After section 27A of the 1986 Act there shall be inserted—
(1) In this section—
“initial claim” means a claim for a disability working allowance made by a person—
to whom it has not previously been payable; or
to whom it has not been payable during the period of 2 years immediately preceding the date on which the claim is made or is treated as made; and
“repeat claim” means any other claim for a disability working allowance.
(2) On an initial claim a declaration by the claimant that he has a physical or mental disability which puts him at a disadvantage in getting a job is conclusive, except in such circumstances as may be prescribed, that for the purposes of section 20(6A)(b) above he has such a disability (in accordance with regulations under section 20(6C) above).
(3) If—
(a) a repeat claim is made or treated as made not later than the end of the period of 8 weeks commencing with the last day of the claimant’s previous award; and
(b) on the claim which resulted in that award he qualified under section 20(6B) above by virtue—
(i) of paragraph (a) of that subsection; or
(ii) of there being payable to him a benefit under an enactment having effect in Northern Ireland and corresponding to a benefit mentioned in that paragraph,
he shall be treated on the repeat claim as if he still so qualified.
(4) Regulations may provide that an award of a disability working allowance to a person shall terminate if—
(a) a disability working allowance becomes payable in respect of some other person who was a member of his family at the date of his claim for a disability working allowance; or
(b) income support or family credit becomes payable in respect of a person who was a member of the family at that date.”.
(2) The further amendments specified in Schedule 3 to this Act shall have effect.
(1) In subsection (5)(b) of section 20 of the 1986 Act after the words “remunerative work” there shall be inserted the words—
“(bb) except in such circumstances as may be prescribed, neither he nor any member of his family is entitled to a disability working allowance;”.
(2) In subsection (10)(b) of that section after the words “income support” there shall be inserted the words “or a disability working allowance”.
(1) The following subsections shall be inserted after subsection (5) of section 15 of the 1975 Act (invalidity pension)—
“(5A) Where—
(a) a person who is engaged and normally engaged in remunerative work ceases to be so engaged; and
(b) he is entitled to a disability working allowance for the week in which there falls the last day on which he is so engaged; and
(c) he qualified for a disability working allowance for that week by virtue of an invalidity pension under this section having been payable to him; and
(d) the first relevant day after he ceases to be engaged as mentioned in paragraph (a) above is for him a day of incapacity for work and falls not later than the end of the period of two years beginning with the last day for which he was entitled to such a pension,
any day since that day which fell within a week for which he was entitled to a disability working allowance shall be treated for the purposes of any claim for such a pension for a period commencing after he ceases to be engaged as mentioned in paragraph (a) above as having been a day of incapacity for work.
(5B) Any day other than a Sunday or a day prescribed under section 17(1)(e) below is a relevant day for the purposes of subsection (5A) above.”.
(2) The following subsection shall be inserted after subsection (6B) of section 36 of that Act (severe disablement allowance)—
“(6C) Where—
(a) a person who is engaged and normally engaged in remunerative work ceases to be so engaged; and
(b) he is entitled to a disability working allowance for the week in which there falls the last day on which he is so engaged; and
(c) he qualified for a disability working allowance for that week by virtue of a severe disablement allowance having been payable to him; and
(d) the first day after he ceases to be engaged as mentioned in paragraph (a) above is a day on which he is incapable of work and falls not later than the end of the period of two years beginning with the last day for which he was entitled to a severe disablement allowance,
any day since that day which fell within a week for which he was entitled to a disability working allowance shall be treated for the purposes of any claim for a severe disablement allowance for a period commencing after he ceases to be engaged as mentioned in paragraph (a) above as having been a day on which he was both incapable of work and disabled.”.
(3) The following section shall be inserted after section 16 of the [1975 c. 60.] Social Security Pensions Act 1975—
(1) Where—
(a) a person who is engaged and normally engaged in remunerative work ceases to be so engaged; and
(b) he is entitled to a disability working allowance for the week in which there falls the last day on which he is so engaged; and
(c) he qualified for a disability working allowance for that week by virtue of an invalidity pension under section 15 or 16 above having been payable to him; and
(d) the first relevant day after he ceases to be engaged as mentioned in paragraph (a) above is a day on which he is incapable of work and falls not later than the end of the period of two years beginning with the last day for which he was entitled to such a pension,
any day since that day which fell within a week for which he was entitled to a disability working allowance shall be treated for the purposes of any claim for such a pension for a period commencing after he ceases to be engaged as mentioned in paragraph (a) above as having been a day on which he was incapable of work.
(2) Any day other than a Sunday or a day prescribed under section 17(1)(e) of the principal Act is a relevant day for the purposes of this section.”.
(4) In Schedule 20 to the 1975 Act, at the end of the definition of “week” there shall be added the words “and except in relation to disability working allowance”.
(5) Where—
(a) a person becomes entitled to an invalidity pension or a severe disablement allowance by virtue of section 15(5A) or 36(6C) of the 1975 Act or section 16A of the Social Security Pensions Act 1975; and
(b) when he was last entitled to that pension or allowance, it was increased in respect of a dependant by virtue of—
(i) regulation 8(6) of the [S.I. 1977/343.] Social Security Benefit (Dependency) Regulations 1977;
(ii) regulation 2 of the [S.I. 1984/1696.] Social Security (Savings for Existing Beneficiaries) Regulations 1984;
(iii) regulation 3 of the [S.I. 1984/1698.] Social Security Benefit (Dependency) Amendment Regulations 1984; or
(iv) regulation 4 of the [S.I. 1989/1690.] Social Security Benefit (Dependency and Computation of Earnings) Amendment Regulations 1989,
for the purpose of determining whether his pension or allowance should be increased by virtue of that regulation for any period beginning with the day on which he again becomes entitled to his pension or allowance, the increase in respect of that dependant shall be treated as having been payable to him on each day between the last day on which his pension or allowance was previously payable and the day on which he again becomes entitled to it.
The enactments mentioned in Schedule 4 to this Act are repealed to the extent specified in the third column of that Schedule.
(1) The Secretary of State may by regulations make—
(a) such consequential provision; or
(b) such savings,
as he considers necessary or expedient in preparation for or in connection with the coming into force of any provision of this Act or the operation of any enactment repealed or amended by any such provision during any period when the repeal or amendment is not wholly in force.
(2) Subsections (1), (2) and (3A) of section 166 of the 1975 Act shall apply in relation to the power conferred by this section to make regulations as they apply in relation to any power conferred by that Act to make regulations, but as if for references to that Act there were substituted references to this section.
(1) A statutory instrument containing (whether alone or with other provisions)—
(a) regulations under Chapter II of Part II of the 1975 Act which relate to disability living allowance and are made before the first day in respect of which disability living allowance is payable;
(b) regulations under sections 100A to 100D or section 104A of that Act which relate to attendance allowance or disability living allowance and are made before that day;
(c) regulations under Part II of the 1986 Act or under sections 100A to 100D or section 104A of the 1975 Act which relate to disability working allowance and are made before the first day in respect of which disability working allowance is payable;
(d) the first regulations made under section 3 above; and
(e) the first regulations made under section 5 above,
shall not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.
(2) A statutory instrument—
(a) which contains (whether alone or with other provisions) any regulations under this Act; and
(b) which is not subject to any requirement that a draft of the instrument be laid before and approved by a resolution of each House of Parliament,
shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(3) If the Treasury so direct, regulations under this Act shall be made only in conjunction with them.
An Order in Council under paragraph 1(1)(b) of Schedule 1 to the [1974 c. 28.] Northern Ireland Act 1974 (legislation for Northern Ireland in the interim period) which states that it is made only for purposes corresponding to those of this Act—
(a) shall not be subject to paragraph 1(4) and (5) of that Schedule (affirmative resolution of both Houses of Parliament); but
(b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.
There shall be paid out of money provided by Parliament—
(a) any increase attributable to the introduction of disability living allowance and the establishment of disability appeal tribunals in the administrative expenses of the Secretary of State or other government department in carrying the 1975 Act into effect which are payable out of money so provided; and
(b) any increase attributable to the introduction of disability working allowance in the expenses of the Secretary of State attributable to the 1986 Act which are so payable.
(1) This Act may be cited as the Disability Living Allowance and Disability Working Allowance Act 1991, and this Act shall be included among the Acts which may be cited together as the Social Security Acts 1975 to 1991.
(2) Apart from the provisions specified in subsection (3) below, this Act shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint; and different days may be appointed for different provisions of this Act or for different purposes of the same provision.
(3) The provisions referred to in subsection (2) above are sections 12, 13, 14 and this section.
(4) The following provisions of this Act extend to Northern Ireland—
section 4, so far as it relates to paragraphs 2, 6 and 7, 9, 11, 13 and 14, 18, 20 and 21 of Schedule 2;
section 5;
section 7, so far as it relates to paragraph 11 of Schedule 3;
section 10, so far as it relates to the repeals in Schedule 1 to the [1975 c. 24.] House of Commons Disqualification Act 1975 and Schedule 5 to the [1983 c. 55.] Value Added Tax Act 1983;
section 11;
section 12;
section 13;
section 14; and
this section.
(5) Except as provided by this section, this Act does not extend to Northern Ireland.
The Bill amends the law relating to social security so as to introduce two new benefits, disability living allowance and disability working allowance, and make connected changes.
Clause 1 adds provisions concerning disability living allowance to the Social Security Act 1975. New section 37ZA provides a new benefit to be known as disability living allowance which will have two components, a care component and a mobility component. A person’s entitlement to disability living allowance may consist of either or both components. Conditions of entitlement to the care component are specified in sections 37ZB and to the mobility component in section 37ZC. For each component, the main condition is that a person has satisfied specified criteria for 3 months and is likely to continue to do so for at least a further 9 months. Any one of three weekly rates of the care component may be payable depending on which of the specified criteria for the care component is satisfied. One of two weekly rates of the mobility component may be payable according to which of the specified criteria for the mobility component is satisfied. The effect of section 37ZD is that, with certain exceptions people aged over 65 will not be entitled to disability living allowance. Supplementary provisions relating to disability living allowance are in section 37ZE.
Clause 2 makes further amendments to the Social Security Act 1975 connected with the introduction of disability living allowance. It restricts attendance allowance to people over 65 who are not entitled to the care component of a disability living allowance and it dissolves the Attendance Allowance Board. It also abolishes mobility allowance, which is wholly superseded by the mobility component of disability living allowance.
Clause 3 establishes a Disability Living Allowance Advisory Board, provides for the Board’s functions, constitution, etc. to be specified in regulations and provides for its expenses to be met by the Secretary of State.
Clause 4 gives effect to Schedules 1 and 2. Schedule 1 contains provisions about the management of disability living allowance and attendance allowance. In place of the existing system of adjudication for attendance allowance by the Attendance Allowance Board, it introduces new adjudication arrangements for both disability living allowance and attendance allowance, including a new right of appeal to a disability appeal tribunal. Schedule 2 contains consequential amendments.
Clause 5 provides power to make regulations in relation to the substitution of disability living allowance for attendance allowance and mobility allowance and the dissolution of the Attendance Allowance Board.
Clause 6 amends sections 20 and 21 of the Social Security Act 1986 to introduce disability working allowance as the fifth income-related benefit. New subsections (6A) and (6B) of section 20 contain the qualifying conditions. Regulations will prescribe the circumstances in which a person is considered to have a disability which puts him at a disadvantage in getting a job. A person is not entitled to a disability working allowance if he or any member of his family is entitled to family credit. New section 20(6E) provides for a disability working allowance to be payable as a fixed award for 26 weeks and that, once awarded, the rate of benefit will not change, unless regulations prescribe otherwise.
Clause 7 makes supplementary provisions about disability working allowance. Subsection (1) inserts new section 27B into the Social Security Act 1986 which provides that, except where regulations prescribe otherwise, a declaration by the claimant that he has a disability which puts him at a disadvantage in getting a job will be sufficient on an initial claim. It also gives power to make regulations to terminate an award if income support, family credit or a disability working allowance becomes payable in respect of a person who is treated as a member of the family of the claimant at the date of his claim. Subsection (2) gives effect to the amendments relating to disability working allowance in Schedule 3. These amendments, among other things, apply to disability working allowance the system of adjudication introduced for disability living allowance.
Clause 8 amends section 20 of the Social Security Act 1986 so that a person is not entitled to family credit if he or any member of his family is entitled to a disability working allowance.
Clause 9 amends the Social Security Act 1975 and the Social Security Pensions Act 1975 to provide linking rules where, before taking up remunerative work and claiming a disability working allowance, a person was entitled to either an invalidity pension or a severe disablement allowance. If such a person is incapable of work on the first day after he stops work and that day falls not later than 2 years after the end of his final award of invalidity pension or severe disablement allowance, he will become eligible again for whichever of those benefits was previously in payment, without having to serve the normal qualifying period.
Clause 10 and Schedule 4 provide for repeals.
Clause 11 provides power to make consequential provision and savings by regulations.
Clause 12 contains provision about the making of regulations.
Clause 13 provides that an Order in Council under the Northern Ireland Act 1974 only for purposes corresponding to those of the Bill will be subject to negative resolution procedure.
Clause 14 provides for administrative expenses attributable to the introduction of disability living allowance and disability working allowance to be met out of Votes.
Clause 15 provides for the Bill’s short title, commencement and extent.
Financial effects of the Bill
The introduction of disability living allowance will increase expenditure out of Votes on benefit costs by about £120m in 1992/3, rising to about £240m by 1993/4. There will also be a longterm increase in administration costs of around £20m a year to be met from Votes.
Schedule 2 is likely to reduce tax revenue by around £10m a year but this is expected to be more than offset by additional income tax receipts of around £20m a year as a result of increased employment due to the introduction of disability working allowance.
The introduction of disability working allowance will be broadly neutral in expenditure terms: the gross cost of around £85m by 1993/4 will be offset by a reduction in payments of other benefits. A large proportion of this reduction will be in payments from the National Insurance Fund.
Effects of the Bill on public service manpower
The provisional assessment is that there will be a requirement for a net increase of about 900 permanent staff in the Department of Social Security as a result of introducing disability living allowance and a further 200 staff as a result of introducing disability working allowance.
Disability Living Allowance and Disability Working Allowance Act 1991