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Welfare Reform and Pensions Act 1999

Type Public General Act

Publication 1999-11-11

Last updated 2026-04-01

State In force

Department Statute Law Database

Source legislation.gov.uk

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Reform history JSON API

(d) section 88 so far as relating to the entries in Part II of Schedule 13 in respect of the Matrimonial Causes Act 1973, the Matrimonial and Family Proceedings Act 1984 and sections 9(8) and 16 of the Family Law Act 1996.

(3) The following provisions shall not come into force until such day as the Treasury may by order appoint—

(a) sections 73 to 78;

(b) section 84(1) so far as relating to paragraphs 74, 76 to 78 and 84 to 86 of Schedule 12; and

(4) The following provisions come into force on the day on which this Act is passed—

(a) sections 52, 57, 58, 60, 68 and 71;

(b) section 70 so far as relating to Part V of Schedule 8;

(d) sections 79 to 83;

(e) section 84(1) so far as relating to paragraphs 13, 79 to 83 and 87 of Schedule 12;

(f) section 84(2) to (4);

(g) section 85(1), (2), (6) and (7); and

(h) sections 86 and 87, this section and sections 90 and 91.

(5) The following provisions come into force on the day on which this Act is passed, but for the purpose only of the exercise of any power to make regulations—

(a) Parts I to IV;

(b) sections 59 and 61; and

(6) Without prejudice to section 83, an order under this section may appoint different days for different purposes or different areas.

Extent

90

(1) The following provisions extend to England and Wales only—

(a) section 15;

(b) paragraph 2 of Schedule 2, and section 18 so far as relating thereto;

(d) paragraphs 1 to 4, 64 to 66 and 70 to 72 of Schedule 12, and section 84(1) so far as relating thereto; and

(e) section 85(3) and (4).

(2) The following provisions extend to Scotland only—

(a) sections 13 and 16;

(b) paragraph 1 of Schedule 2, and section 18 so far as relating thereto;

(d) paragraphs 5 to 12 and 67 to 69 of Schedule 12, and section 84(1) so far as relating thereto; and

(e) section 85(5).

(3) The following provisions extend to England and Wales and Scotland only—

(a) Part I;

(b) sections 9 to 12, 14 and 17;

(d) sections 23, 24 and 26;

(e) Part IV except sections 42 to 44;

(f) Chapter I of Part V (except paragraph 1 of Schedule 8, and section 70 so far as relating thereto);

(g) sections 73, 75 and 77 and Schedule 9;

(h) section 79;

(i) paragraphs 1 to 8, 20 to 23, 32(b), 33, 35 and 37 of Schedule 11, and section 81 so far as relating thereto;

(j) paragraphs 14 to 63, 66(17), 76 to 80, 82, 83 and 87 of Schedule 12, and section 84(1) so far as relating thereto; and

(k) section 84(2) to (4).

(4) The following provisions extend to England and Wales, Scotland and Northern Ireland—

(a) paragraphs 3(1) and 16 of Schedule 2, and section 18 so far as relating thereto;

(b) sections 42 to 44;

(d) section 80;

(e) paragraphs 29 to 31 and 32(a) of Schedule 11, and section 81 so far as relating thereto;

(f) sections 82 and 83;

(g) paragraphs 13, 73 to 75 and 81 of Schedule 12, and section 84(1) so far as relating thereto;

(h) sections 85(1), (2), (6) and (7) and 86; and

(i) section 89, this section and section 91.

(5) The following provisions extend to Northern Ireland only—

(a) paragraph 7(2) of Schedule 2, and section 18 so far as relating thereto;

(b) sections 74, 76 and 78 and Schedule 10;

(d) paragraphs 84 to 86 of Schedule 12, and section 84(1) so far as relating thereto; and

(e) section 87.

(6) Nothing in the preceding provisions of this section applies to any repeal made by this Act; and the extent of any such repeal is the same as that of the enactment repealed.

Short title, general interpretation and Scottish devolution

91

(1) This Act may be cited as the Welfare Reform and Pensions Act 1999.

(2) In this Act—

“the Administration Act” means the Social Security Administration Act 1992;

“the Contributions and Benefits Act” means the Social Security Contributions and Benefits Act 1992.

(3) In this Act, except sections 84(2) and (3), 85(1) and (6) and 89, and in any Act amended by this Act, references to the coming into force of any provision of this Act are to its coming into force otherwise than for the purpose of authorising the making of regulations.

(4) For the purposes of the Scotland Act 1998, the following provisions shall be taken to be pre-commencement enactments within the meaning of that Act—

(a) paragraphs 8(3) and (4) and 10 of Schedule 12; and

(b) so far as relating to those provisions, sections 83, 84(1) and 89(1) and (5).

SCHEDULE 1

1

(1) The provisions specified in sub-paragraph (2) shall apply as if any pension scheme established under a trust which—

(a) is not an occupational pension scheme, but

(b) is or has been registered under section 2,

were an occupational pension scheme.

(2) The provisions are—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the following provisions of Part I of the 1995 Act—

(i) sections 3 to 11... and 15 (supervision by the Authority) except sections 7(5A)(b), 8(1)(a) and (c) and (2), 11(3A) and (3B) and 15(1),;

(ii) sections 27 to 30 (trustees: general);

(iii) sections 32 to 36 and 39 (functions of trustees) ...;

(iv) section 41 (functions of trustees or managers);

(v) section 47 (professional advisers);

(vi) section 49 (receipts, payment and records) except subsections (5) and (8) to (13);

(vii) section 50 (resolution of disputes);

(viii) section 68 (power of trustees to modify scheme by resolution) except subsection (3);

(ix) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(x) sections 91, 92 and 94 (assignment and forfeiture etc.) except section 91(5)(d);

(xi) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(xii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(xiii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(xiv) section 117 (overriding requirements); and

(xv) sections 124 and 125 (interpretation); and

(i) section 67 (accessibility of register of prohibited trustees);

(ii) Chapters 4 and 5 of Part 2 (fraud compensation and information gathering);

(iii) sections 247 to 249 (requirements for knowledge and understanding); and

(iv) section 318 (interpretation).

(3) Section 47(9) of the 1995 Act (as applied by sub-paragraph (1)) shall have effect as if the reference to any person who is or has been the employer were a reference to any person who, in pursuance of section 3(5), is or has been required—

(a) to deduct an employee’s contributions to the scheme from his remuneration; and

(b) to pay them to the trustees or managers of the scheme or to a prescribed person.

(4) Section 68 of the 1995 Act (as so applied) shall have effect as if the purposes specified in subsection (2) included enabling the conditions set out in section 1 to be fulfilled in relation to the scheme.

(5) Section 124(1) of the 1995 Act, and section 318(1) of the Pensions Act 2004, (as so applied) shall have effect as if the definition of “member” were omitted.

(6) Chapters 4 and 5 of Part 2 of the Pensions Act 2004 (as applied by sub-paragraph (1)) shall have effect with such modifications as the Secretary of State may prescribe by regulations.

2

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SCHEDULE 2

Income payments orders against pension payments

1

In section 32(2) of the Bankruptcy (Scotland) Act 1985 (vesting of estate, and dealings of debtor, after sequestration), at the beginning insert “ Notwithstanding anything in section 11 or 12 of the Welfare Reform and Pensions Act 1999, ”.

2

In section 310(7) of the Insolvency Act 1986 (bankrupt’s income against which income payments orders may be made includes certain payments under pension schemes), after “employment and” insert “ (despite anything in section 11 or 12 of the Welfare Reform and Pensions Act 1999) ”.

Extended meaning of “personal pension scheme”

3

(1) In the Pension Schemes Act 1993—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) in section 181(1) (general interpretation), for the definition of “employed earner” substitute—

“employed earner” and “self-employed earner” have the meanings given by section 2 of the Social Security Contributions and Benefits Act 1992;

(2) In consequence of sub-paragraph (1), the following provisions of that Act shall cease to have effect, namely—

(a) in subsection (2)(a)(ii) of section 73 (short service benefit), the words “or a self-employed pension arrangement” and “or arrangement”;

(b) in subsection (2)(a) of section 96 (exercise of option under section 95), sub-paragraph (iii) and the word “or” immediately preceding that sub-paragraph; and

Revaluation of earnings factors: meaning of “relevant year”

4

In section 16(5) of the Pension Schemes Act 1993 (revaluation of earnings factors for purposes of section 14: early leavers etc.), for the definition of “relevant year” substitute—

“relevant year” means any tax year in the earner’s working life,

Interim arrangements

5

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Effect of certain orders on guaranteed minimum pensions

6

In section 47 of the Pension Schemes Act 1993 (entitlement to guaranteed minimum pension for the purposes of the relationship with social security benefits), after subsection (6) (which is inserted by section 32(4) of this Act) add—

(7) For the purposes of section 46, a person shall be treated as entitled to any guaranteed minimum pension to which he would have been entitled but for any order under section 342A of the Insolvency Act 1986 (recovery of excessive pension contributions) or under section 36A of the Bankruptcy (Scotland) Act 1985.

Mandatory payment of contributions equivalent premiums

7

(1) In section 55 of the Pension Schemes Act 1993 (contributions equivalent premiums)—

(a) in subsection (2), after “the prescribed person” insert “ shall, if subsection (2B) applies, pay and otherwise ”;

(b) in subsection (2A), omit the words following paragraph (e); and

(2B) Except in prescribed circumstances, this subsection applies in any case where the earner has no accrued right to any benefit under the scheme. (2C) Where a contributions equivalent premium is required to be paid in respect of an earner by virtue of subsection (2), the prescribed person must notify the Inland Revenue of that fact within the prescribed period and in the prescribed manner.

(2) In section 51 of the Pension Schemes (Northern Ireland) Act 1993 (contributions equivalent premiums)—

(a) in subsection (2), after “the prescribed person” insert “ shall, if subsection (2B) applies, pay and otherwise ”;

(b) in subsection (2A), omit the words following paragraph (e); and

(2B) Except in prescribed circumstances, this subsection applies in any case where the earner has no accrued right to any benefit under the scheme. (2C) Where a contributions equivalent premium is required to be paid in respect of an earner by virtue of subsection (2), the prescribed person must notify the Inland Revenue of that fact within the prescribed period and in the prescribed manner.

Payment by Secretary of State of unpaid pension contributions

8

(1) Paragraph 2 of Schedule 4 to the Pension Schemes Act 1993 (priority in bankruptcy for amounts paid by Secretary of State in respect of unpaid pension contributions) is amended as follows.

(2) For sub-paragraphs (1) to (3) substitute—

(1) This Schedule applies to any sum owed on account of an employer’s contributions to a salary related contracted-out scheme which were payable in the period of 12 months immediately preceding the relevant date. (1A) The amount of the debt having priority by virtue of sub-paragraph (1) shall be taken to be an amount equal to the appropriate amount. (2) This Schedule applies to any sum owed on account of an employer’s minimum payments to a money purchase contracted-out scheme falling to be made in the period of 12 months immediately preceding the relevant date. (3) In so far as payments cannot from the terms of the scheme be identified as falling within sub-paragraph (2), the amount of the debt having priority by virtue of that sub-paragraph shall be taken to be an amount equal to the appropriate amount. (3A) In sub-paragraph (1A) or (3) “the appropriate amount” means the aggregate of— (a) the percentage for non-contributing earners of the total reckonable earnings paid or payable, in the period of 12 months referred to in sub-paragraph (1) or (2) (as the case may be), to or for the benefit of non-contributing earners; and (b) the percentage for contributing earners of the total reckonable earnings paid or payable, in that period, to or for the benefit of contributing earners.

(3) In sub-paragraph (4), for “sub-paragraph (3)” substitute “ sub-paragraph (3A) ”.

Supervision by the Occupational Pensions Regulatory Authority

9

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10

In section 8(4) of the Pensions Act 1995 (provision which may be contained in orders made by the Authority appointing pension scheme trustees), omit the word “or” at the end of paragraph (a).

11

In section 10 of the Pensions Act 1995 (imposition of civil penalties by the Authority), after subsection (8) insert—

(8A) Any penalty recoverable under this section— (a) shall, if a county court so orders, be recoverable by execution issued from the county court or otherwise as if it were payable under an order of that court; and (b) may be enforced as if it were an extract registered decree arbitral bearing a warrant for execution issued by the sheriff court of any sheriffdom in Scotland.

Occupational pension schemes: institutions who may hold money deposited by trustees etc.

12

(1) Section 49 of the Pensions Act 1995 (other responsibilities of trustees, employers, etc.) is amended as follows.

(2) In each of subsections (1) and (5) (money to be kept by trustees or employers in accounts with institutions authorised under the Banking Act 1987), for “an institution authorised under the Banking Act 1987” substitute “ a relevant institution ”.

(3) After subsection (1) insert—

(1A) In this section “relevant institution” means— (a) an institution authorised under the Banking Act 1987; (b) an institution within any of paragraphs 1 to 6 of Schedule 2 to that Act (institutions not requiring authorisation); or (c) a European authorised institution within the meaning of the Banking Coordination (Second Council Directive) Regulations 1992 which may lawfully accept deposits in the United Kingdom in accordance with those regulations.

Annual increase in rate of pension

13

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Occupational pension schemes: certificates etc. relating to minimum funding requirement

14

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Excess assets of wound-up schemes

15

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Pensions Compensation Board

16

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Diligence against pensions: Scotland

17

In section 94(3) of the Pensions Act 1995 (application of sections 91 and 92 to Scotland), at the end insert—

(f) after subsection 91(4) there is inserted— (“) Subject to section 73(3)(d) of the Debtors (Scotland) Act 1987, nothing in this section prevents any diligence mentioned in section 46 of that Act being done against a pension under an occupational pension scheme. ”

Pensionable service

18

In section 124(3) of the Pensions Act 1995 (matters to be disregarded in determining “pensionable service”), at the end insert— “ but, in its application for the purposes of section 51, paragraph (b) does not affect the operation of any rules of the scheme by virtue of which a period of service is to be rounded up or down by a period of less than a month. ”

Occupational pension schemes: rights of employee who is director of corporate trustee

19

(1) The Employment Rights Act 1996 is amended as follows.

(2) In section 46 (employee who is a trustee of a pension scheme not to be subject to detriment referable to his carrying out his functions as such a trustee), after subsection (2) insert—

(2A) This section applies to an employee who is a director of a company which is a trustee of a relevant occupational pension scheme as it applies to an employee who is a trustee of such a scheme (references to such a trustee being read for this purpose as references to such a director).

(3) In section 58 (right to time off for pension scheme trustees), after subsection (2) insert—

(2A) This section applies to an employee who is a director of a company which is a trustee of a relevant occupational pension scheme as it applies to an employee who is a trustee of such a scheme (references to such a trustee being read for this purpose as references to such a director).

(4) In section 102 (unfair dismissal of pension scheme trustees), after subsection (1) insert—

(1A) This section applies to an employee who is a director of a company which is a trustee of a relevant occupational pension scheme as it applies to an employee who is a trustee of such a scheme (references to such a trustee being read for this purpose as references to such a director).

SCHEDULE 3

1

The Matrimonial Causes Act 1973 is amended as follows.

2

After section 21 there is inserted—

(21A) (1) For the purposes of this Act, a pension sharing order is an order which— (a) provides that one party’s— (i) shareable rights under a specified pension arrangement, or (ii) shareable state scheme rights, be subject to pension sharing for the benefit of the other party, and (b) specifies the percentage value to be transferred. (2) In subsection (1) above— (a) the reference to shareable rights under a pension arrangement is to rights in relation to which pension sharing is available under Chapter I of Part IV of the Welfare Reform and Pensions Act 1999, or under corresponding Northern Ireland legislation, (b) the reference to shareable state scheme rights is to rights in relation to which pension sharing is available under Chapter II of Part IV of the Welfare Reform and Pensions Act 1999, or under corresponding Northern Ireland legislation, and (c) “party” means a party to a marriage.

3

In section 24 (property adjustment orders in connection with divorce proceedings, etc), in paragraphs (c) and (d) of subsection (1), there is inserted at the end “ , other than one in the form of a pension arrangement (within the meaning of section 25D below) ”.

4

After section 24A there is inserted—

(24B) (1) On granting a decree of divorce or a decree of nullity of marriage or at any time thereafter (whether before or after the decree is made absolute), the court may, on an application made under this section, make one or more pension sharing orders in relation to the marriage. (2) A pension sharing order under this section is not to take effect unless the decree on or after which it is made has been made absolute. (3) A pension sharing order under this section may not be made in relation to a pension arrangement which— (a) is the subject of a pension sharing order in relation to the marriage, or (b) has been the subject of pension sharing between the parties to the marriage. (4) A pension sharing order under this section may not be made in relation to shareable state scheme rights if— (a) such rights are the subject of a pension sharing order in relation to the marriage, or (b) such rights have been the subject of pension sharing between the parties to the marriage. (5) A pension sharing order under this section may not be made in relation to the rights of a person under a pension arrangement if there is in force a requirement imposed by virtue of section 25B or 25C below which relates to benefits or future benefits to which he is entitled under the pension arrangement. (24C) (1) No pension sharing order may be made so as to take effect before the end of such period after the making of the order as may be prescribed by regulations made by the Lord Chancellor. (2) The power to make regulations under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament. (24D) If a pension sharing order relates to rights under a pension arrangement, the court may include in the order provision about the apportionment between the parties of any charge under section 41 of the Welfare Reform and Pensions Act 1999 (charges in respect of pension sharing costs), or under corresponding Northern Ireland legislation.

5

In section 25 (matters to which the court is to have regard in deciding how to exercise its powers with respect to financial relief)—

(a) in subsection (1), for “or 24A” there is substituted “ , 24A or 24B ”, and

(b) in subsection (2), for “or 24A” there is substituted “ , 24A or 24B ”.

6

In section 25A(1) (court’s duty to consider desirability of exercising power to achieve clean break), for “or 24A” there is substituted “ , 24A or 24B ”.

7

(1) Section 31 (variation, discharge etc. of certain orders for financial relief) is amended as follows.

(2) In subsection (2), at the end there is inserted—

(g) a pension sharing order under section 24B above which is made at a time before the decree has been made absolute.

(3) After subsection (4) there is inserted—

(4A) In relation to an order which falls within paragraph (g) of subsection (2) above (“the subsection (2) order”)— (a) the powers conferred by this section may be exercised— (i) only on an application made before the subsection (2) order has or, but for paragraph (b) below, would have taken effect; and (ii) only if, at the time when the application is made, the decree has not been made absolute; and (b) an application made in accordance with paragraph (a) above prevents the subsection (2) order from taking effect before the application has been dealt with. (4B) No variation of a pension sharing order shall be made so as to take effect before the decree is made absolute. (4C) The variation of a pension sharing order prevents the order taking effect before the end of such period after the making of the variation as may be prescribed by regulations made by the Lord Chancellor.

(4) In subsection (5)—

(a) for “(7F)” there is substituted “ (7G) ”,

(b) for “or (e)” there is substituted “ , (e) or (g) ”, and

(5) In subsection (7B), after paragraph (b) there is inserted—

(ba) one or more pension sharing orders;

(6) After subsection (7F) there is inserted—

(7G) Subsections (3) to (5) of section 24B above apply in relation to a pension sharing order under subsection (7B) above as they apply in relation to a pension sharing order under that section.

(7) After subsection (14) there is inserted—

(15) The power to make regulations under subsection (4C) above shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

8

In section 33A (consent orders), in subsection (3), in the definition of “order for financial relief”, after “24A” there is inserted “ , 24B ”.

9

In section 37 (avoidance of transactions intended to prevent or reduce financial relief), in subsection (1), after “24,” there is inserted “ 24B, ”.

10

After section 40 there is inserted—

(40A) (1) Subsections (2) and (3) below apply where an appeal against a pension sharing order is begun on or after the day on which the order takes effect. (2) If the pension sharing order relates to a person’s rights under a pension arrangement, the appeal court may not set aside or vary the order if the person responsible for the pension arrangement has acted to his detriment in reliance on the taking effect of the order. (3) If the pension sharing order relates to a person’s shareable state scheme rights, the appeal court may not set aside or vary the order if the Secretary of State has acted to his detriment in reliance on the taking effect of the order. (4) In determining for the purposes of subsection (2) or (3) above whether a person has acted to his detriment in reliance on the taking effect of the order, the appeal court may disregard any detriment which in its opinion is insignificant. (5) Where subsection (2) or (3) above applies, the appeal court may make such further orders (including one or more pension sharing orders) as it thinks fit for the purpose of putting the parties in the position it considers appropriate. (6) Section 24C above only applies to a pension sharing order under this section if the decision of the appeal court can itself be the subject of an appeal. (7) In subsection (2) above, the reference to the person responsible for the pension arrangement is to be read in accordance with section 25D(4) above.

11

In section 52 (interpretation), in subsection (2), for “and” at the end of paragraph (a) there is substituted—

(aa) references to pension sharing orders shall be construed in accordance with section 21A above; and

SCHEDULE 4

1

(1) Section 25B of the Matrimonial Causes Act 1973 is amended as follows.

(2) In subsection (1), for “scheme”, wherever occurring, there is substituted “ arrangement ”.

(3) Subsection (2) ceases to have effect.

(4) In subsection (3), for “scheme” there is substituted “ arrangement ”.

(5) In subsection (4)—

(a) for “scheme”, wherever occurring, there is substituted “ arrangement ”, and

(b) for “trustees or managers of” there is substituted “ person responsible for ”.

(6) For subsection (5) there is substituted—

(5) The order must express the amount of any payment required to be made by virtue of subsection (4) above as a percentage of the payment which becomes due to the party with pension rights.

(7) In subsection (6)—

(a) for “trustees or managers”, in the first place, there is substituted “ person responsible for the arrangement ”, and

(b) for “the trustees or managers”, in the second place, there is substituted “ his ”.

(8) In subsection (7)—

(a) for the words from “may require any” to “those benefits” there is substituted “ has a right of commutation under the arrangement, the order may require him to exercise it to any extent ”,

(b) for “the payment of any amount commuted” there is substituted “ any payment due in consequence of commutation ”, and

(9) After that subsection there is inserted—

(7A) The power conferred by subsection (7) above may not be exercised for the purpose of commuting a benefit payable to the party with pension rights to a benefit payable to the other party. (7B) The power conferred by subsection (4) or (7) above may not be exercised in relation to a pension arrangement which— (a) is the subject of a pension sharing order in relation to the marriage, or (b) has been the subject of pension sharing between the parties to the marriage. (7C) In subsection (1) above, references to benefits under a pension arrangement include any benefits by way of pension, whether under a pension arrangement or not.

2

(1) Section 25C of that Act is amended as follows.

(2) In subsection (1), for “scheme” there is substituted “ arrangement ”.

(3) In subsection (2)—

(a) in paragraph (a)—

(i) for the words from “trustees” to “have” there is substituted “ person responsible for the pension arrangement in question has ”, and

(ii) for “them” there is substituted “ him ”, and

(b) in paragraph (c), for “trustees or managers of the pension scheme” there is substituted “ person responsible for the pension arrangement ”.

(4) In subsection (3)—

(a) for “trustees or managers” there is substituted “ person responsible for the arrangement ”, and

(b) for “the trustees, or managers,” there is substituted “ his ”.

(5) At the end there is inserted—

(4) The powers conferred by this section may not be exercised in relation to a pension arrangement which— (a) is the subject of a pension sharing order in relation to the marriage, or (b) has been the subject of pension sharing between the parties to the marriage.

3

(1) Section 25D of that Act is amended as follows.

(2) For subsection (1) there is substituted—

(1) Where— (a) an order made under section 23 above by virtue of section 25B or 25C above imposes any requirement on the person responsible for a pension arrangement (“the first arrangement”) and the party with pension rights acquires rights under another pension arrangement (“the new arrangement”) which are derived (directly or indirectly) from the whole of his rights under the first arrangement, and (b) the person responsible for the new arrangement has been given notice in accordance with regulations made by the Lord Chancellor, the order shall have effect as if it had been made instead in respect of the person responsible for the new arrangement.

(3) In subsection (2)—

(a) for “Regulations may” there is substituted “ The Lord Chancellor may by regulations ”,

(b) in paragraph (a), for “trustees or managers of a pension scheme” there is substituted “ person responsible for a pension arrangement ”,

(ab) make, in relation to payment under a mistaken belief as to the continuation in force of a provision included by virtue of section 25B or 25C above in an order under section 23 above, provision about the rights or liabilities of the payer, the payee or the person to whom the payment was due,

(d) after paragraph (b) there is inserted—

(ba) make provision for the person responsible for a pension arrangement to be discharged in prescribed circumstances from a requirement imposed by virtue of section 25B or 25C above,

(e) paragraphs (c) and (d) are omitted,

(f) for paragraph (e) there is substituted—

(e) make provision about calculation and verification in relation to the valuation of— (i) benefits under a pension arrangement, or (ii) shareable state scheme rights, for the purposes of the court’s functions in connection with the exercise of any of its powers under this Part of this Act.

, and

(g) the words after paragraph (e) are omitted.

(4) After that subsection there is inserted—

(2A) Regulations under subsection (2)(e) above may include— (a) provision for calculation or verification in accordance with guidance from time to time prepared by a prescribed person, and (b) provision by reference to regulations under section 30 or 49(4) of the Welfare Reform and Pensions Act 1999. (2B) Regulations under subsection (2) above may make different provision for different cases. (2C) Power to make regulations under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(5) For subsections (3) and (4) there is substituted—

(3) In this section and sections 25B and 25C above— - “occupational pension scheme” has the same meaning as in the Pension Schemes Act 1993; - “the party with pension rights” means the party to the marriage who has or is likely to have benefits under a pension arrangement and “the other party” means the other party to the marriage; - “pension arrangement” means— 1. an occupational pension scheme, 2. a personal pension scheme, 3. a retirement annuity contract, 4. an annuity or insurance policy purchased, or transferred, for the purpose of giving effect to rights under an occupational pension scheme or a personal pension scheme, and 5. an annuity purchased, or entered into, for the purpose of discharging liability in respect of a pension credit under section 29(1)(b) of the Welfare Reform and Pensions Act 1999 or under corresponding Northern Ireland legislation; - “personal pension scheme” has the same meaning as in the Pension Schemes Act 1993; - “prescribed” means prescribed by regulations; - “retirement annuity contract” means a contract or scheme approved under Chapter III of Part XIV of the Income and Corporation Taxes Act 1988; - “shareable state scheme rights” has the same meaning as in section 21A(1) above; and - “trustees or managers”, in relation to an occupational pension scheme or a personal pension scheme, means— 1. in the case of a scheme established under a trust, the trustees of the scheme, and 2. in any other case, the managers of the scheme. (4) In this section and sections 25B and 25C above, references to the person responsible for a pension arrangement are— (a) in the case of an occupational pension scheme or a personal pension scheme, to the trustees or managers of the scheme, (b) in the case of a retirement annuity contract or an annuity falling within paragraph (d) or (e) of the definition of “pension arrangement” above, the provider of the annuity, and (c) in the case of an insurance policy falling within paragraph (d) of the definition of that expression, the insurer.

SCHEDULE 5

Funded pension schemes

1

(1) This paragraph applies to a pension credit which derives from—

(a) a funded occupational pension scheme, or

(b) a personal pension scheme.

(2) The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by conferring appropriate rights under that scheme on the person entitled to the credit—

(a) with his consent, or

(b) in accordance with regulations made by the Secretary of State.

(3) The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by paying the amount of the credit to the person responsible for a qualifying arrangement with a view to acquiring rights under that arrangement for the person entitled to the credit if—

(a) the qualifying arrangement is not disqualified as a destination for the credit,

(b) the person responsible for that arrangement is able and willing to accept payment in respect of the credit, and

(c) payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Secretary of State.

(4) For the purposes of sub-paragraph (2), no account is to be taken of consent of the person entitled to the pension credit unless—

(a) it is given after receipt of notice in writing of an offer to discharge liability in respect of the credit by making a payment under sub-paragraph (3), or

(b) it is not withdrawn within 7 days of receipt of such notice.

Unfunded public service pension schemes

2

(1) This paragraph applies to a pension credit which derives from an occupational pension scheme which is—

(a) not funded, and

(b) a public service pension scheme.

(2) The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by conferring appropriate rights under that scheme on the person entitled to the credit.

(3) If such a scheme as is mentioned in sub-paragraph (1) is closed to new members, the appropriate authority in relation to that scheme may by regulations specify another public service pension scheme as an alternative to it for the purposes of this paragraph.

(4) Where the trustees or managers of a scheme in relation to which an alternative is specified under sub-paragraph (3) are subject to liability in respect of a pension credit, they may—

(a) discharge their liability in respect of the credit by securing that appropriate rights are conferred on the person entitled to the credit by the trustees or managers of the alternative scheme, and

(b) for the purpose of so discharging their liability, require the trustees or managers of the alternative scheme to take such steps as may be required.

(5) In sub-paragraph (3), “the appropriate authority”, in relation to a public service pension scheme, means such Minister of the Crown or government department as may be designated by the Treasury as having responsibility for the scheme.

Other unfunded occupational pension schemes

3

(1) This paragraph applies to a pension credit which derives from an occupational pension scheme which is—

(a) not funded, and

(b) not a public service pension scheme.

(2) The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by conferring appropriate rights under that scheme on the person entitled to the credit.

(3) The trustees or managers of the scheme from which a pension credit to which this paragraph applies derives may discharge their liability in respect of the credit by paying the amount of the credit to the person responsible for a qualifying arrangement with a view to acquiring rights under that arrangement for the person entitled to the credit if—

(a) the qualifying arrangement is not disqualified as a destination for the credit,

(b) the person responsible for that arrangement is able and willing to accept payment in respect of the credit, and

(c) payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Secretary of State.

Other pension arrangements

4

(1) This paragraph applies to a pension credit which derives from—

(a) a retirement annuity contract,

(b) an annuity or insurance policy purchased or transferred for the purpose of giving effect to rights under an occupational pension scheme or a personal pension scheme, or

(2) The person responsible for the pension arrangement from which a pension credit to which this paragraph applies derives may discharge his liability in respect of the credit by paying the amount of the credit to the person responsible for a qualifying arrangement with a view to acquiring rights under that arrangement for the person entitled to the credit if—

(a) the qualifying arrangement is not disqualified as a destination for the credit,

(b) the person responsible for that arrangement is able and willing to accept payment in respect of the credit, and

(c) payment is made with the consent of the person entitled to the credit, or in accordance with regulations made by the Secretary of State.

(3) The person responsible for the pension arrangement from which a pension credit to which this paragraph applies derives may discharge his liability in respect of the credit by entering into an annuity contract with the person entitled to the credit if the contract is not disqualified as a destination for the credit.

(4) The person responsible for the pension arrangement from which a pension credit to which this paragraph applies derives may, in such circumstances as the Secretary of State may prescribe by regulations, discharge his liability in respect of the credit by assuming an obligation to provide an annuity for the person entitled to the credit.

(5) In sub-paragraph (1)(c), “pension credit” includes a credit under Northern Ireland legislation corresponding to section 29(1)(b).

Appropriate rights

5

For the purposes of this Schedule, rights conferred on the person entitled to a pension credit are appropriate if—

(a) they are conferred with effect from, and including, the day on which the order, or provision, under which the credit arises takes effect, and

(b) their value, when calculated in accordance with regulations made by the Secretary of State, equals the amount of the credit.

Qualifying arrangements

6

(1) The following are qualifying arrangements for the purposes of this Schedule—

(a) an occupational pension scheme,

(b) a personal pension scheme,

(d) an appropriate policy of insurance, and

(e) an overseas arrangement within the meaning of the Contracting-out (Transfer and Transfer Payment) Regulations 1996.

(2) An annuity contract or policy of insurance is appropriate for the purposes of sub-paragraph (1) if, at the time it is entered into or taken out, the insurer with which it is entered into or taken out—

(a) is carrying on ... long-term insurance business in the United Kingdom ..., and

(b) satisfies such requirements as the Secretary of State may prescribe by regulations.

(3) “Insurer” and “long-term insurance business” have the meaning given in section 180A of the Pension Schemes Act 1993.

Disqualification as destination for pension credit

7

(1) If a pension credit derives from a pension arrangement which is a registered pension scheme under section 153 of the Finance Act 2004, an arrangement is disqualified as a destination for the credit unless—

(a) it is also registered for those purposes, or

(b) it satisfies such requirements as the Secretary of State may prescribe by regulations.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) An occupational pension scheme is disqualified as a destination for a pension credit unless the rights to be acquired under the arrangement by the person entitled to the credit are rights whose value, when calculated in accordance with regulations made by the Secretary of State, equals the credit.

(4) An annuity contract or insurance policy is disqualified as a destination for a pension credit in such circumstances as the Secretary of State may prescribe by regulations.

(5) The requirements which may be prescribed under sub-paragraph (1)(b) include, in particular, requirements of the Inland Revenue.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Adjustments to amount of pension credit

8

(1) If—

(a) a pension credit derives from an occupational pension scheme,

(b) the scheme is one to which Part 3 of the Pensions Act 2004 (scheme funding) applies,

(d) such circumstances as the Secretary of State may prescribe by regulations apply,

paragraph 1(3) shall have effect in relation to the credit as if the reference to the amount of the credit were to such lesser amount as may be determined in accordance with regulations made by the Secretary of State.

(2) Whether a scheme is underfunded for the purposes of sub-paragraph (1)(c) shall be determined in accordance with regulations made by the Secretary of State.

(3) For the purposes of that provision, the valuation day is the day by reference to which the cash equivalent on which the amount of the pension credit depends falls to be calculated.

9

If—

(a) a person’s shareable rights under a pension arrangement have become subject to a pension debit, and

(b) the person responsible for the arrangement makes a payment which is referable to those rights without knowing of the pension debit,

this Schedule shall have effect as if the amount of the corresponding pension credit were such lesser amount as may be determined in accordance with regulations made by the Secretary of State.

10

The Secretary of State may by regulations make provision for paragraph 1(3), 3(3) or 4(2) to have effect, where payment is made after the end of the implementation period for the pension credit, as if the reference to the amount of the credit were to such larger amount as may be determined in accordance with the regulations.

General

11

Liability in respect of a pension credit shall be treated as discharged if the effect of paragraph 8(1) or 9 is to reduce it to zero.

12

Liability in respect of a pension credit may not be discharged otherwise than in accordance with this Schedule.

13

Regulations under paragraph 5(b) or 7(3) may provide for calculation of the value of rights in accordance with guidance from time to time prepared by a person specified in the regulations.

14

In this Schedule—

“funded”, in relation to an occupational pension scheme, means that the scheme meets its liabilities out of a fund accumulated for the purpose during the life of the scheme;

“public service pension scheme” has the same meaning as in the Pension Schemes Act 1993.

SCHEDULE 6

1

The Contributions and Benefits Act is amended as follows.

2

After section 45A there is inserted—

(45B) (1) The weekly rate of the additional pension in a Category A retirement pension shall be reduced as follows in any case where— (a) the pensioner has become subject to a state scheme pension debit, and (b) the debit is to any extent referable to the additional pension. (2) If the pensioner became subject to the debit in or after the final relevant year, the weekly rate of the additional pension shall be reduced by the appropriate weekly amount. (3) If the pensioner became subject to the debit before the final relevant year, the weekly rate of the additional pension shall be reduced by the appropriate weekly amount multiplied by the relevant revaluation percentage. (4) The appropriate weekly amount for the purposes of subsections (2) and (3) above is the weekly rate, expressed in terms of the valuation day, at which the cash equivalent, on that day, of the pension mentioned in subsection (5) below is equal to so much of the debit as is referable to the additional pension. (5) The pension referred to above is a notional pension for the pensioner by virtue of section 44(3)(b) above which becomes payable on the later of— (a) his attaining pensionable age, and (b) the valuation day. (6) For the purposes of subsection (3) above, the relevant revaluation percentage is the percentage specified, in relation to earnings factors for the tax year in which the pensioner became subject to the debit, by the last order under section 148 of the Administration Act to come into force before the end of the final relevant year. (7) Cash equivalents for the purposes of this section shall be calculated in accordance with regulations. (8) In this section— - “final relevant year” means the tax year immediately preceding that in which the pensioner attains pensionable age; - “state scheme pension debit” means a debit under section 49(1)(a) of the Welfare Reform and Pensions Act 1999 (debit for the purposes of this Part of this Act); - “valuation day” means the day on which the pensioner became subject to the state scheme pension debit.

3

After section 55 there is inserted—

(55A) (1) A person shall be entitled to a shared additional pension if he is— (a) over pensionable age, and (b) entitled to a state scheme pension credit. (2) A person’s entitlement to a shared additional pension shall continue throughout his life. (3) The weekly rate of a shared additional pension shall be the appropriate weekly amount, unless the pensioner’s entitlement to the state scheme pension credit arose before the final relevant year, in which case it shall be that amount multiplied by the relevant revaluation percentage. (4) The appropriate weekly amount for the purposes of subsection (3) above is the weekly rate, expressed in terms of the valuation day, at which the cash equivalent, on that day, of the pensioner’s entitlement, or prospective entitlement, to the shared additional pension is equal to the state scheme pension credit. (5) The relevant revaluation percentage for the purposes of that subsection is the percentage specified, in relation to earnings factors for the tax year in which the entitlement to the state scheme pension credit arose, by the last order under section 148 of the Administration Act to come into force before the end of the final relevant year. (6) Cash equivalents for the purposes of this section shall be calculated in accordance with regulations. (7) In this section— - “final relevant year” means the tax year immediately preceding that in which the pensioner attains pensionable age; - “state scheme pension credit” means a credit under section 49(1)(b) of the Welfare Reform and Pensions Act 1999 (credit for the purposes of this Part of this Act); - “valuation day” means the day on which the pensioner becomes entitled to the state scheme pension credit. (55B) (1) The weekly rate of a shared additional pension shall be reduced as follows in any case where— (a) the pensioner has become subject to a state scheme pension debit, and (b) the debit is to any extent referable to the pension. (2) If the pensioner became subject to the debit in or after the final relevant year, the weekly rate of the pension shall be reduced by the appropriate weekly amount. (3) If the pensioner became subject to the debit before the final relevant year, the weekly rate of the additional pension shall be reduced by the appropriate weekly amount multiplied by the relevant revaluation percentage. (4) The appropriate weekly amount for the purposes of subsections (2) and (3) above is the weekly rate, expressed in terms of the valuation day, at which the cash equivalent, on that day, of the pension mentioned in subsection (5) below is equal to so much of the debit as is referable to the shared additional pension. (5) The pension referred to above is a notional pension for the pensioner by virtue of section 55A above which becomes payable on the later of— (a) his attaining pensionable age, and (b) the valuation day. (6) For the purposes of subsection (3) above, the relevant revaluation percentage is the percentage specified, in relation to earnings factors for the tax year in which the pensioner became subject to the debit, by the last order under section 148 of the Administration Act to come into force before the end of the final relevant year. (7) Cash equivalents for the purposes of this section shall be calculated in accordance with regulations. (8) In this section— - “final relevant year” means the tax year immediately preceding that in which the pensioner attains pensionable age; - “state scheme pension debit”, means a debit under section 49(1)(a) of the Welfare Reform and Pensions Act 1999 (debit for the purposes of this Part of this Act); - “valuation day” means the day on which the pensioner became subject to the state scheme pension debit. (55C) (1) For the purposes of this section, a person’s entitlement to a shared additional pension is deferred— (a) where he would be entitled to a Category A or Category B retirement pension but for the fact that his entitlement to such a pension is deferred, if and so long as his entitlement to such a pension is deferred, and (b) otherwise, if and so long as he does not become entitled to the shared additional pension by reason only of not satisfying the conditions of section 1 of the Administration Act (entitlement to benefit dependent on claim), and, in relation to a shared additional pension, “period of deferment” shall be construed accordingly. (2) Where a person’s entitlement to a shared additional pension is deferred, the rate of his shared additional pension shall be increased by an amount equal to the aggregate of the increments to which he is entitled under subsection (3) below, but only if that amount is enough to increase the rate of the pension by at least 1 per cent. (3) A person is entitled to an increment under this subsection for each complete incremental period in his period of enhancement. (4) The amount of the increment for an incremental period shall be 1/7th per cent. of the weekly rate of the shared additional pension to which the person would have been entitled for the period if his entitlement had not been deferred. (5) Amounts under subsection (4) above shall be rounded to the nearest penny, taking any 1/2p as nearest to the next whole penny. (6) Where an amount under subsection (4) above would, apart from this subsection, be a sum less than 1/2p, the amount shall be taken to be zero, notwithstanding any other provision of this Act, the Pensions Act 1995 or the Administration Act. (7) Where one or more orders have come into force under section 150 of the Administration Act during the period of enhancement, the rate for any incremental period shall be determined as if the order or orders had come into force before the beginning of the period of enhancement. (8) The sums which are the increases in the rates of shared additional pensions under this section are subject to alteration by order made by the Secretary of State under section 150 of the Administration Act. (9) In this section— - “incremental period” means any period of six days which are treated by regulations as days of increment for the purposes of this section in relation to the person and pension in question; and - “period of enhancement”, in relation to that person and that pension, means the period which— 1. begins on the same day as the period of deferment in question, and 2. ends on the same day as that period or, if earlier, on the day before the 5th anniversary of the beginning of that period.

SCHEDULE 7

Jobseekers Act 1995 (c. 18)

1

The Jobseekers Act 1995 has effect subject to the following amendments.

2

(1) Section 1 (entitlement to jobseeker’s allowance) is amended as follows.

(2) In subsection (2) (conditions of entitlement), for paragraph (d) (claimant must satisfy conditions set out in section 2 or 3) substitute—

(d) satisfies the conditions set out in section 2;

(3) After subsection (2) insert—

(2A) Subject to the provisions of this Act, a claimant who is not a member of a joint-claim couple is entitled to a jobseeker’s allowance if he satisfies— (a) the conditions set out in paragraphs (a) to (c) and (e) to (i) of subsection (2); and (b) the conditions set out in section 3. (2B) Subject to the provisions of this Act, a joint-claim couple are entitled to a jobseeker’s allowance if— (a) a claim for the allowance is made jointly by the couple; (b) each member of the couple satisfies the conditions set out in paragraphs (a) to (c) and (e) to (i) of subsection (2); and (c) the conditions set out in section 3A are satisfied in relation to the couple. (2C) Regulations may prescribe circumstances in which subsection (2A) is to apply to a claimant who is a member of a joint-claim couple. (2D) Regulations may, in respect of cases where a person would (but for the regulations) be a member of two or more joint-claim couples, make provision for only one of those couples to be a joint-claim couple; and the provision which may be so made includes provision for the couple which is to be the joint-claim couple to be nominated— (a) by the persons who are the members of the couples, or (b) in default of one of the couples being so nominated, by the Secretary of State.

(4) In subsection (4)—

(a) in the definition of “an income-based jobseeker’s allowance”, at the end insert “ or a joint-claim jobseeker’s allowance; ” and

(b) after that definition insert—

“a joint-claim couple” means a married or unmarried couple who—

are not members of any family whose members include a person in respect of whom a member of the couple is entitled to child benefit, and

are of a prescribed description;

“a joint-claim jobseeker’s allowance” means a jobseeker’s allowance entitlement to which arises by virtue of subsection (2B).

3

In section 2(1) (the contribution-based conditions), for “section 1(2)(d)(i)” substitute “ section 1(2)(d) ”.

4

(1) In subsection (1) of section 3 (the income-based conditions), for “section 1(2)(d)(ii)” substitute “ section 1(2A)(b) ”.

(2) After that section insert—

(3A) (1) The conditions referred to in section 1(2B)(c) are— (a) that the income of the joint-claim couple does not exceed the applicable amount (determined in accordance with regulations under section 4) or the couple have no income; (b) that no member of a family of which the couple are members is entitled to income support; (c) that no member of any such family (other than the couple) is entitled to an income-based jobseeker’s allowance; (d) that at least one member of the couple has reached the age of 18; and (e) that if only one member of the couple has reached the age of 18, the other member of the couple is a person— (i) in respect of whom a direction under section 16 is in force; or (ii) who has, in prescribed circumstances to be taken into account for a prescribed period, reached the age of 16. (2) Subsections (2) and (4) of section 3 shall apply in relation to a member of the couple to whom subsection (1)(e)(i) or (ii) above applies as they apply in relation to a claimant to whom subsection (1)(f)(ii) or (iii) of that section applies. (3) In subsection (1)(e)(ii) above “period” shall be construed in accordance with section 3(3). (3B) (1) Where a joint-claim couple make a claim for a joint-claim jobseeker’s allowance, they may nominate one of them as the member of the couple to whom the allowance is to be payable. (2) In default of one of them being so nominated, the allowance shall be payable to whichever of them is nominated by the Secretary of State. (3) Subsections (1) and (2) have effect subject to section 4A(4) and (7). (4) In this Act references to the nominated member of a joint-claim couple are, except where section 20A(7) applies, to the member of the couple nominated under subsection (1) or (2) above; and where section 20A(7) applies, references to the nominated member of such a couple are to the member of the couple to whom section 20A(7) provides for the allowance to be payable. (5) Nothing in this section or section 20A(7) affects the operation of any statutory provision by virtue of which any amount of the allowance is required or authorised to be paid to someone other than the nominated member of the couple.

5

(1) Section 4 (amount of jobseeker’s allowance) is amended as follows.

(2) In subsection (3) (amount payable in respect of an income-based jobseeker’s allowance), after “allowance” insert “ (other than a joint-claim jobseeker’s allowance) ”.

(3) After subsection (3) insert—

(3A) In the case of a joint-claim jobseeker’s allowance, the amount payable in respect of a joint-claim couple shall be— (a) if the couple have no income, the applicable amount; (b) if the couple have an income, the amount by which the applicable amount exceeds the couple’s income.

(4) After subsection (11) insert—

(11A) In subsections (6) to (11) “claimant” does not include— (a) a joint-claim couple, or (b) a member of such a couple (other than a person to whom regulations under section 1(2C) apply); but section 4A, which contains corresponding provisions relating to joint-claim couples, applies instead.

6

After section 4 insert—

(4A) (1) This section applies where— (a) a joint-claim couple are entitled to a joint-claim jobseeker’s allowance, and (b) one or each of the members of the couple is in addition entitled to a contribution-based jobseeker’s allowance; and in such a case the provisions of this section have effect in relation to the couple in place of section 4(3A). (2) If a joint-claim couple falling within subsection (1) have no income, the amount payable in respect of the couple by way of a jobseeker’s allowance shall be— (a) the applicable amount, if that is greater than the couple’s personal rate; and (b) the couple’s personal rate, if it is not. (3) Where the amount payable in accordance with subsection (2) is the applicable amount, the amount payable in respect of the couple by way of a jobseeker’s allowance shall be taken to consist of two elements— (a) one being an amount equal to the couple’s personal rate; and (b) the other being an amount equal to the excess of the applicable amount over the couple’s personal rate. (4) Where the amount payable in accordance with subsection (2) is the couple’s personal rate, then— (a) if each member of the couple is entitled to a contribution-based jobseeker’s allowance, an amount equal to the member’s own personal rate shall be payable in respect of the member by way of such an allowance; (b) if only one of them is so entitled, an amount equal to that member’s personal rate shall be payable in respect of the member by way of such an allowance; and in either case nothing shall be payable in respect of the couple by way of a joint-claim jobseeker’s allowance. (5) If a joint-claim couple falling within subsection (1) have an income, the amount payable in respect of the couple by way of a jobseeker’s allowance shall be— (a) the amount by which the applicable amount exceeds the couple’s income, if the amount of that excess is greater than the couple’s personal rate; and (b) the couple’s personal rate, if it is not. (6) Where the amount payable in accordance with subsection (5) is the amount by which the applicable amount exceeds the couple’s income, the amount payable in respect of the couple by way of a jobseeker’s allowance shall be taken to consist of two elements— (a) one being an amount equal to the couple’s personal rate; and (b) the other being an amount equal to the amount by which the difference between the applicable amount and the couple’s income exceeds the couple’s personal rate. (7) Where the amount payable in accordance with subsection (5) is the couple’s personal rate, subsection (4) shall apply as it applies in a case where the amount payable in accordance with subsection (2) is that rate. (8) The element of a jobseeker’s allowance mentioned in subsection (3)(a) and that mentioned in subsection (6)(a) shall be treated, for the purpose of identifying the source of the allowance, as attributable— (a) in a case where only one member of the joint-claim couple is entitled to a contribution-based jobseeker’s allowance, to that member’s entitlement to such an allowance; and (b) in a case where each member of the couple is entitled to a contribution-based jobseeker’s allowance, rateably according to their individual entitlements to such an allowance. (9) The element of a jobseeker’s allowance mentioned in subsection (3)(b) and that mentioned in subsection (6)(b) shall be treated, for the purpose of identifying the source of the allowance, as attributable to the couple’s entitlement to a joint-claim jobseeker’s allowance. (10) In this section “the couple’s personal rate”, in relation to a joint-claim couple, means— (a) where only one member of the couple is entitled to a contribution-based jobseeker’s allowance, that member’s personal rate; (b) where each member of the couple is entitled to such an allowance, the aggregate of their personal rates.

7

(1) Section 8 (power to make regulations requiring attendance etc.) is amended as follows.

(2) In subsection (1), after “claimant” insert “ (other than a joint-claim couple claiming a joint-claim jobseeker’s allowance) ”.

(3) After subsection (1) insert—

(1A) Regulations may make provision— (a) for requiring each member of a joint-claim couple claiming a joint-claim jobseeker’s allowance to attend at such place and such time as the Secretary of State may specify; (b) for requiring a member of such a couple to provide information and such evidence as may be prescribed as to his circumstances, his availability for employment and the extent to which he is actively seeking employment; (c) for requiring such a couple to jointly provide information and such evidence as may be prescribed as to the circumstances of each or either member of the couple, the availability for employment of each or either member of the couple and the extent to which each or either member of the couple is actively seeking employment; (d) where any requirement to provide information or evidence is imposed on such a couple by virtue of paragraph (c), for the joint obligation of the couple to be capable of being discharged by the provision of the information or evidence by one member of the couple.

(4) In subsection (2), after “Regulations under subsection (1)” insert “ or (1A) ”.

(5) In subsection (2)(a) (cases where entitlement to allowance may cease on account of non-compliance), after “in the case of a claimant who” insert “ , or (as the case may be) a joint-claim couple claiming a joint-claim jobseeker’s allowance a member of which, ”.

(6) In subsection (2)(b) (cases where entitlement to allowance may cease by reference to the time expired since the claimant’s last attendance)—

(a) after “he” insert “ or, as the case may be, a member of the joint-claim couple ”; and

(b) after “subsection (1)(a)” insert “ or (1A)(a) ”.

(7) For paragraph (c) of subsection (2) (provision for entitlement not to cease where good cause shown) substitute—

(c) provide for entitlement not to cease if the claimant or (as the case may be) either member of the joint-claim couple shows, within a prescribed period of the failure to comply on the part of the claimant or (as the case may be) a member of the couple, that the claimant or (as the case may be) the defaulting member of the couple had good cause for that failure; and

8

In section 9(12) (jobseeker’s agreement ends when allowance ends), at the end insert “ or to a joint-claim couple of which he is a member. ”

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

(1) Section 31 (termination of awards where another entitlement exists) is amended as follows.

(2) In subsection (1) (termination of award of income support where there will be an entitlement to a jobseeker’s allowance), after “or where he is a member of a married or unmarried couple his partner” insert “ or the couple ”.

(3) In subsection (2) (termination of award of a jobseeker’s allowance where there will be an entitlement to income support), after “or where he is a member of a married or unmarried couple his partner,” insert “ or where the award was made to a couple a member of the couple, ”.

15

(1) Section 35 (interpretation) is amended as follows.

(2) In the definition of “claimant”, at the end insert “ except that in relation to a joint-claim couple claiming a joint-claim jobseeker’s allowance it means the couple, or each member of the couple, as the context requires; ”.

(3) After the definition of “job-seeking period” insert—

“joint-claim couple” and “joint-claim jobseeker’s allowance” have the meanings given by section 1(4);

(4) After the definition of “married couple” insert—

“the nominated member”, in relation to a joint-claim couple, shall be construed in accordance with section 3B(4);

16

(1) Schedule 1 (jobseeker’s allowance: supplementary provisions) is amended as follows.

(2) After paragraph 8 (entitlement without satisfying conditions) insert—

(8A) (1) Regulations may prescribe circumstances in which a joint-claim couple may be entitled to a joint-claim jobseeker’s allowance without each member of the couple satisfying all the conditions referred to in section 1(2B)(b). (2) Regulations may prescribe circumstances in which, and a period for which, a transitional case couple may be entitled to a joint-claim jobseeker’s allowance without having jointly made a claim for it. (3) In sub-paragraph (2)— (a) “a transitional case couple” means a joint-claim couple a member of which is entitled to an income-based jobseeker’s allowance on the coming into force of Schedule 7 to the Welfare Reform and Pensions Act 1999; and (b) “period” shall be construed in accordance with section 3(3).

(3) In paragraph 9(a) (rate of allowance payable under paragraph 8), after “paragraph 8” insert “ or 8A ”.

(4) After paragraph 9 insert—

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