Explanatory note

This Order amends—

the Welfare Reform Act 2012 (Commencement No. 9 and Transitional and Transitory Provisions and Commencement No. 8 and Savings and Transitional Provisions (Amendment)) Order 2013 (S.I. 2013/983 C. 41) (“the No. 9 Order”);

the Welfare Reform Act 2012 (Commencement No. 11 and Transitional and Transitory Provisions and Commencement No. 9 and Transitional and Transitory Provisions (Amendment)) Order 2013 (S.I. 2013/1511 C. 60) (“the No. 11 Order”);

the Welfare Reform Act 2012 (Commencement No. 13 and Transitional and Transitory Provisions) Order 2013 (S.I. 2013/2567 C. 107) (“the No. 13 Order”);

the Welfare Reform Act 2012 (Commencement No. 14 and Transitional and Transitory Provisions) Order 2013 (S.I. 2013/2846 C. 114) (“the No. 14 Order”);

the Welfare Reform Act 2012 (Commencement No. 16 and Transitional and Transitory Provisions) Order 2014 (S.I. 2014/209 C. 7) (“the No. 16 Order”);

the Welfare Reform Act 2012 (Commencement No. 17 and Transitional and Transitory Provisions) Order 2014 (S.I. 2014/1583 C. 61) (“the No. 17 Order”); and

the Welfare Reform Act 2012 (Commencement No. 19 and Transitional and Transitory Provisions and Commencement No. 9 and Transitional and Transitory Provisions (Amendment)) Order 2014 (S.I. 2014/2321 C. 99) (“the No. 19 Order”).

The above Orders (“the relevant Orders”) each make provision for the coming into force of the universal credit provisions in Part 1 of the Welfare Reform Act 2012 (c. 5) and the provisions in that Part that abolish income-related employment and support allowance and income-based jobseeker’s allowance.

Article 3 deals with cases to which the amendments of the No. 9 Order and other Orders apply, including the dates from which the amendments apply. Article 3(1) provides that the changes to Schedule 5 to the No. 9 Order made by article 4(5), to permit claims by those with responsibility for children, come into effect on 26th January 2015 where a claimant resides in any of the areas covered by the No. 9 Order. In addition, these changes also come into effect on 26th January where a claimant resides in the areas covered by the No. 11 Order, the No. 13 Order, the No. 14 Order, the No. 16 Order and the No. 17 Order (save for postcode districts and part-districts BL1 to BL4, BL5 1, BL5 3, BL6 4, BL6 9 and M26 3 in the No. 9 relevant districts and the No. 13 relevant districts (other than postcode part-district CH62 9).

Article 3(1) provides that some other technical changes to the No. 9 Order made by article 4(3) and (4) come into effect on 26th January 2015. These changes also apply to all areas covered by the other relevant Orders.

Article 3(2) provides that the changes to Schedule 5 to the No. 9 Order made by article 4(5), to permit claims by those with responsibility for children, come into effect on 2nd March 2015 where a claimant resides in postcode districts and part-districts BL1 to BL4, BL5 1, BL5 3, BL6 4, BL6 9 and M26 3 in the No. 9 relevant districts or in one of the No. 13 relevant districts, covered by the No. 17 Order, or in the areas covered by the No. 19 Order.

Article 3(3) provides that the changes to Schedule 5 to the No. 9 Order made by article 5, which increase the maximum earnings threshold and enable a claimant to have any type of account with a Credit Union, come into effect on 6th April 2015. These changes also apply to all areas covered by the other relevant Orders.

Article 4 amends Schedule 5 to the No. 9 Order so that there is no longer a general condition that a claimant must not have responsibility for children or young persons. In its place is a condition that a claimant must not have responsibility for certain children and young persons (for example most children or young persons who are looked after by a local authority and children or young persons who are entitled to a disability living allowance or personal independence payment). Article 4 also makes some technical changes to article 4 of the No. 9 Order and substitutes article 5(5) to (7) of the No. 9 Order so as to make it clear that, subject to certain exceptions, a claim for a Jobseeker’s Allowance or an Employment and Support Allowance is made when it is completed.

Article 5(a) amends paragraph 4 of Schedule 5 to the No. 9 Order which sets out the maximum income and capital that a claimant may have in order to claim universal credit. The amendments require an individual claimant to declare that his or her earned income is not expected to exceed £338 (previously £330) during the period of one month starting with the date on which the claim for universal credit is made and require a couple to declare that each member of the couple’s income is not expected to exceed £338 (previously £330) and the couple’s total earned income is not expected to exceed £541 (previously £525) during that period.

Article 5(b) amends paragraph 7(e) of Schedule 5 to the No. 9 Order which requires a claimant to have an account in order to claim universal credit. The amendments permit a claimant with any form of Credit Union account (within the meaning of the Credit Unions Act 1979 (c. 34)) to claim universal credit.

Article 6 provides that any reference in the other relevant Orders to article 5(5) to (7) of the No. 9 Order is a reference to article 5(5) to (7) as substituted by article 4(4). Provision is also made so that any reference in the No. 11 Order, the No. 13 Order, the No. 14 Order, the No. 16 Order, the No. 17 Order or the No. 19 Order to Schedule 5 of the No. 9 Order is a reference to that Schedule as amended by articles 4(5) and 5 as the case may be.

Article 7, in conjunction with article 6(2) and (4), amends the definition of “gateway conditions” in article 2(1) of the No. 11 Order to reflect the amendments to Schedule 5 to the No. 9 Order made by articles 4 and 5.

Article 8, in conjunction with article 6(3) and (4), amends the definition of “gateway conditions” in article 2(1) of the No. 17 Order to reflect the amendments to Schedule 5 to the No. 9 Order made by articles 4 and 5.

Article 9 amends article 4(6) of the No. 11 Order, the No. 13 Order, the No. 14 Order, the No. 16 Order, the No. 17 Order and the No. 19 Order so as to amend the cross-reference to article 4 of the No. 9 Order to include reference to new paragraphs (8) and (9) which are inserted by article 4(3) of this Order.