Citation and commencement

1. These Regulations may be cited as the Employment and Support Allowance (Up-rating Modification) (Transitional) Regulations 2008 and come into force on 20th January 2009.

Modification of section 150 of the Administration Act

2.–(1) This regulation applies where a claimant is entitled to incapacity benefit or severe disablement allowance which includes an amount under one of the provisions referred to in paragraph .

(2) The provisions referred to in paragraph (1) are –

(a) section 69(1)(3) of the Contributions and Benefits Act (severe disablement allowance: age related addition);

(b) regulation 10 of the Social Security (Incapacity Benefit) Regulations 1994(4) (increase in rate of incapacity benefit etc.); and

(c) regulation 18(1)(c) of the Social Security (Incapacity Benefit) (Transitional) Regulations 1995(5) (rate of long-term incapacity benefit in transitional cases).

(3) Where this regulation applies, section 150 of the Administration Act(6) (annual up-rating of benefits) is to have effect as if the following were inserted after subsection (5)–

"(5A) The Secretary of State may, in respect of each of the tax years beginning with 2009-10 and ending with 2013-14, include in the draft of an uprating order a reduction in an amount under–

(a) section 69(1) of the Contributions and Benefits Act (severe disablement allowance: age related addition);

(b) regulation 10 of the Social Security (Incapacity Benefit) Regulations 1994 (increase in rate of incapacity benefit etc.); and

(c) regulation 18(1)(c) of the Social Security (Incapacity Benefit) (Transitional) Regulations 1995 (rate of long-term incapacity benefit in transitional cases).".

EXPLANATORY NOTE

(This note is not part of these Regulations)

The regulations contained in this Instrument are either made by virtue of, or are consequential upon, provisions in Part 1 of the Welfare Reform Act 2007. This Instrument is made before the expiry of the period of 6 months beginning with the coming into force of those provisions; the regulations in it 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.

Regulation 2 modifies the effect of section 150 of the Social Security Administration Act 1992 so that the up-rating order made under that section may reduce certain amounts.

These Regulations have no impact on the cost of business, charities or the voluntary sector and an Impact Assessment has not been published. However, an Impact Assessment has been completed for the wider set of rate alignment measures announced in the White Paper "Raising expectations and increasing support" (Cm 7506) and can be found at http://www.dwp.gov.uk/welfarereform/raisingexpectations/impact-assessment.pdf.