Explanatory note

These Regulations establish a pilot scheme, known as the Work for Your Benefit Pilot Scheme, under the Jobseekers Act 1995 (“the Jobseekers Act”). They are made in reliance on the power to pilot regulations in section 29 of that Act. The Scheme, which is defined in regulation 2, is a scheme within section 17A(1) of the Jobseekers Act that is designed to assist jobseeker’s allowance claimants to obtain employment, including self-employment, and which includes for any individual work experience and job search.

Part 1 contains general provisions, including provisions concerning interpretation.

Part 2 concerns the circumstances in which jobseeker’s allowance claimants are required to participate in the Scheme. Regulation 3 provides that claimants who meet certain conditions can be selected for participation on a sampling basis. In particular, the claimant must be aged at least 18, have participated in the Flexible New Deal employment programme for at least 12 months, must not have already completed in the Scheme and must reside, or have a jobseeker’s allowance address for payment, in a pilot area. The pilot areas are set out in regulation 2.

Regulation 4 sets out the conditions that must be met before a claimant who is not selected on a sampling basis can be selected for participation in the Scheme. In particular, in addition to conditions relating to age and connection with a pilot area, the person must have been in receipt of a jobseeker’s allowance for at least 6 months and must not be a lone parent.

Regulation 5 requires a person so selected to participate in the scheme upon being notified by an officer of the Secretary of State, and to do so for a period of 26 weeks from the date specified in the notice.

Regulation 6 concerns the circumstances in which a claimant is not required (or no longer required) to participate in the Scheme. They include where the claimant no longer resides in a pilot area, where the claimant’s jobseeker’s allowance address for payment is no longer in such an area and where a participant reclaims a jobseeker’s allowance and at least 13 weeks has passed since the person last participated in the Scheme or, if the person failed to participate, the first day on which the person was due to do so. Regulation 6 also provides that a claimant who is not (apart from these Regulations) required to meet the jobseeking conditions is not required to participate in the Scheme.

Part 3 deals with failure to participate in the Scheme and good cause for failure to participate.

Regulation 7 sets out the circumstances in which a participant is to be regarded as having failed to comply with these Regulations. They include where a participant has refused, failed to apply for or to accept a place on the Scheme and where a participant has failed to participate in the work experience element of the Scheme.

Regulation 8 provides that claimants who fail without good cause to comply with these Regulations may have their jobseeker’s allowance stopped or reduced for 2, 4 or 26 weeks. However, those consequences do not follow where there are facts which show that the person had good cause and which could not reasonably have been brought to the attention of the Secretary of State within 5 days, beginning with the day on which the Secretary of State notifies the person of the failure. Where a claimant whose jobseeker’s allowance would otherwise be stopped or reduced for 26 weeks agrees in writing to comply with the requirement to which the determination relates, the prescribed period for the purposes of section 17A(6) or (7) of the Jobseekers Act will be either 4 weeks or the period beginning with the sanction determination and ending with the claimant’s agreement (whichever is the longer). Otherwise the period will last for 26 weeks.

Regulation 8 also makes provision for bringing the sanction period to an end in the case of claimants who are no longer required to participate in the Scheme.

Regulation 9 provides that a participant has 5 working days to show good cause for failing to comply with these Regulations. Regulation 9 also makes provision for the circumstances in which a participant is to be regarded as having good cause. It does this by applying the good cause provisions of regulation 73 (good cause for the purposes of section 19(5)(b) of the Jobseeker’s Allowance Regulations) of the Jobseeker’s Allowance Regulations 1996 (S.I. 1996/207).

Part 4 sets out the circumstances in which an income-based jobseeker’s allowance is payable even though the claimant failed without good cause to participate in the Scheme. The effect of regulation 10 is that a person who is required to participate in the Scheme is not eligible for hardship payments unless the person is in a vulnerable group (see regulation 140 (meaning of “person in hardship”) of the Jobseeker’s Allowance Regulations 1996). It also makes provision for the amount of any hardship payment to be calculated in accordance with Part IX of those Regulations. Regulation 11 makes similar provision in the case of joint-claim couples.

Part 5 (regulation 12) modifies the requirement of participants to be available for and actively seeking employment. A claimant is to be treated as actively seeking employment in any week in which the person is undertaking work experience as part of the Scheme. Also, a participant is not required to be available for employment immediately provided that the person is willing and able to take up employment on being given one week’s notice and to attend a job interview on being given 48 hour’s notice.

Part 6 makes various consequential modifications in relation to a person’s participation in the Scheme.

Regulation 13 inserts a definition of the Work for Your Benefit Pilot Scheme in various Regulations and it ensures that the existing definition of “self-employment route” includes assistance in pursuing self-employment whilst participating in the Scheme. Regulations 14 and 15 ensure that certain payments made to participants are not treated as notional income or notional capital and regulations 16 and 17 ensure that travel, childcare and other expenses paid to participants are disregarded as income and capital for the purposes of certain income-related benefits.

Regulations 18 and 19 make consequential modifications relating to sanctions. This is to ensure that a claimant who fails without good cause to comply with these Regulations is treated consistently with a claimant who incurs a sanction under section 19 of the Jobseekers Act.

Regulation 20 deals with consequential changes relation to decisions and appeals. Again, the effect is to ensure that provision is made for sanctions imposed under section 17A of the Jobseekers Act as well as those incurred under section 19 or 20A of that Act.

This Instrument contains only regulations made by virtue of, or consequential upon, section 1 of the Welfare Reform Act 2009, and is made before the expiry of the period of 6 months beginning with the coming into force of that section. These Regulations are therefore exempt in accordance with section 173(5) of the Social Security Administration Act 1992 from the requirement in section 172(1) of that Act to refer proposals to make Regulations to the Social Security Advisory Committee, and are made without reference to that Committee.

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the voluntary or private sectors.