Welfare Reform Bill

I thank the noble Lord, Lord Skelmersdale, for his amendments to Clauses 6 and 7. These clauses are closely connected to the provision made by Clause 3 for a new form of JSA to be paid to people in place of income support without paying them any less money or requiring them to meet the usual job-seeking conditions. Clause 6 enables awards of income support or income-related ESA to be stopped where appropriate, and allows for a transitional allowance to be paid for a time and at an amount that can be prescribed by regulation if such arrangements are required. There are a small number of occasions when the benefit rates for income support, ESA and JSA are not the same and, in these circumstances, we need to ensure we have the necessary provisions to protect the benefit incomes of claimants as they migrate from one benefit to another as a result of these changes. Subsection (2)(c) provides that protection, and I do not believe that noble Lords would want us to reduce clarity in the Bill on the considerations that are to take place in the determination of a transitional allowance. Clause 7 sets out the conditions which are required before a decision to abolish income support can be taken. Where these conditions exist, the Secretary of State can make an order which effectively switches off income support. It also allows him to make any transitional and consequential provisions that may be needed. Amendments 81 and 82 seek to ensure that an order made under Clause 7(4) could not be made to amend, repeal or revoke any provision or regulation made in any Act after the commencement of the Bill. I can stress again that the powers can be used only once alternative provision has been made for all income support recipients. Clauses 3 and 5 ensure that we have that provision in place. Clause 7(4) is necessary and important because it allows us to make workable transitional arrangements if the benefit rules change after this Bill is commenced. I hope that noble Lords will agree with me that such provision should be made. As I explained at the outset, in proposing to abolish income support we are not proposing that the people who get it should receive any less money or be subject to the requirements placed on people who are required to look for work. The intention is to simplify and streamline the system but not to make it any less sensitive to people’s needs. However, this provision future-proofs the legislation and will help ensure that any transitional or consequential provision made under Clause 7(4) is effective. On that basis I ask the noble Lord to withdraw his amendment.