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Jobseeker's Allowance

Mr. Healey: To ask the Secretary of State for Social Security what is the effect on the benefit of a Jobseeker's Allowance claimant who is participating on a European Social Fund course of training, if the course provider makes payments directly to (a) a childminder and (b) a person providing accommodation in circumstances where the child care or accommodation needs are directly related to participation on the course. [85751]

Angela Eagle: In these circumstances the Jobseeker's Allowance regulations allow for such payments to be ignored.

European Social Fund (Training)

Mr. Healey: To ask the Secretary of State for Social Security if recipients of (a) Incapacity Benefit and (b) Severe Disablement Allowance can participate on a European Social Fund course of training without loss of benefits. [85756]

Mr. Bayley: People undergoing certain Government training courses for which they receive a training allowance cannot also receive Incapacity Benefit or Severe Disablement Allowance. People who participate in training funded out of the European Social Fund do not receive a training allowance and may therefore continue to receive Incapacity Benefit and Severe Disablement Allowance provided they continue to satisfy the other conditions of entitlement.

However, young people under age 19 cannot get Severe Disablement Allowance if they are undergoing non- advanced education for 21 or more hours a week, not including time spent on a course specifically designed for disabled students.

Pension Legislation

Mr. Flight: To ask the Secretary of State for Social Security what plans he has for reform of the legislation which prevents transfers of protected rights from a contracted-out money purchase pension scheme; and if he will make a statement. [86308]

Mr. Timms: There is no general prohibition on transfers of protected rights from contracted-out money purchase pension schemes. The conditions under which transfers of protected rights may be made are contained in SI 1996/1461 the Protected Rights (Transfer Payment) Regulations 1996.

We have received a number of representations about these rules and will consider whether any changes are needed to this legislation.

Disability Living Allowance

Mr. Pound: To ask the Secretary of State for Social Security what progress is being made with the introduction of the system of periodic inquiry into entitlement to Disability Living Allowance; and if he will make a statement. [87144]

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Mr. Bayley: The new system of periodic inquiry into entitlement to Disability Living Allowance is being developed in close and continuing consultation with organisations of and for disabled people. These discussions have taken particular account of issues such as the appropriateness of the literature to be used, and the treatment of very sensitive cases, where special attention is required to ensure that the process meets the needs of the individual contacted. The consultation has been constructive and I can announce that inquiry action is now starting, with the first inquiries being issued today. Cases involving people with mental health problems and cases made on behalf of children will not be included in the inquiry process until special arrangements have been discussed with relevant organisations and appropriate training delivered to staff. The inquiry process will be closely monitored and initial evaluation will commence after six months of operation, in January 2000.

National Insurance

Mr. Pound: To ask the Secretary of State for Social Security what measures he is taking relating to benefit decisions which depend upon national insurance contribution issues; and if he will make a statement. [87145]

Mr. Timms: Two key initiatives are behind the changes we introduce today. The Department's reform of decision making and appeals is the first stage of our modernisation programme, intended to provide real improvements in the service we provide to Social Security and Child Support clients. Similarly the transfer of the Contributions Agency to Inland Revenue is part of extensive work to align the tax and benefits systems more closely.

I am laying regulations to support a flexible and effective dialogue between the Department and the Inland Revenue for the purposes of Social Security decision- making, helping to bring the two organisations closer together in their day-to-day operations. The regulations ensure that where a contribution issue arises in connection with a benefit decision, dispute or appeal, that issue will be decided by Inland Revenue. The provisions protect a client's rights of appeal and ensure we continue to take decisions in the most efficient and effective manner.

Benefit Entitlement

Mr. Pound: To ask the Secretary of State for Social Security what plans he has to deal with changes in a person's medical condition which effect benefit entitlement; and if he will make a statement. [87146]

Mr. Bayley: An important part of our programme of welfare reform is the need to ensure the amount of benefit paid to claimants is correct and remains correct, and that changes which could affect benefit entitlement are properly taken into account. This means having a system of review which is fair, appropriate and sensitive to the needs of individual claimants.

We have recently made changes to the Social Security (Adjudication) Regulations which, from 1 June, introduced a common test of reasonableness for both misrepresentation of, and failure to disclose information about disability-related changes. These changes applied to Disability Living Allowance, Attendance Allowance and

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benefits for people incapable of work and are intended to protect vulnerable, disabled people from an unfairness in the application of the overpayment recovery rules. They recognise that it is often very difficult for claimants to understand that gradual improvements in their medical condition, or response to new treatment which helps alleviate their problems, might have an effect on benefit. Unless it is considered that the claimant could reasonably have been expected to be aware of a fact or to have reported a change in circumstances, any resultant change in entitlement which has the effect of removing or reducing benefit will not be applied retrospectively.

Today I am laying regulations to ensure that the same provisions to benefit sick and disabled people are carried into the new system for decision making and appeals. In addition they will be extended to cover people claiming Industrial Injuries Disablement Benefit and Severe Disablement Allowance.

The regulations also deal with the circumstances in which a decision based on a determination about incapacity for work can be reconsidered. They make it clear that when deciding whether a person continues to be entitled to a benefit awarded on basis that they are still incapable of work, the decision maker may use the findings from carrying out a further All Work Test as grounds to make a new decision. The regulations provide that where the decision maker has clear information from a new medical report provided by the Department's examining doctor, that the person no longer satisfies the conditions for entitlement, the award of benefit can be changed.

This approach is in line with past practice which was called into question by a decision of the Social Security Commissioners. It is not expected that there will be any impact in the outcome of decisions in individual cases.

Habitual Residence Test

Ms Oona King: To ask the Secretary of State for Social Security if he will make a statement on the future of the habitual residence test. [87147]

Angela Eagle: We have now concluded the review of the habitual residence test and have identified a package of measures to produce a fairer and more efficient test. The test was introduced by the previous Government to tackle the perceived phenomenon of 'benefit tourism'. However, to date the majority of people adversely affected have been UK nationals.

It is right that our Social Security system should be safeguarded from abuse by people with little or no connection to the UK and we will continue to do this. Clearly though it is also important to ensure that income-related benefits are available to UK nationals and other nationals who have strong and legitimate links to this country.

We believe that the package will address these two concerns. We have accepted a recent judgment of the European Court of Justice which has made it clear that people returning to the UK from an EU member state and re-establishing their ties here should be treated as habitually resident immediately upon their return.

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However we believe it would be wrong to limit this important principle to people returning from a member state of the EU and have issued guidance to staff administering the test advising them to extend the effect of the judgment to people returning from any country overseas and re-establishing their ties here.

We also propose to legislate to add to the categories of people who are to be treated as habitually resident those people who are brought here from an area of civil unrest or who are deported to the UK. Otherwise, subject to any guidance which may be given by the House of Lords in Nessa v The Chief Adjudication Officer (1) The Secretary of State for Social Security (2), a decision on which is awaited, the habitual residence test will continue to apply to seek to prevent abuse by those who do not have the appropriate ties to this country.

We intend also to reduce the period when habitual residence inquiries are made from five years to two years and to introduce administrative improvements.

We will trial a standard proforma, with a view to national implementation, to facilitate a more consistent approach to information gathering and decision making on cases requiring habitual residence action. We will also monitor the effects of how the test now operates.

Taken together we believe these measures will result in fairer access to income-related benefits and will streamline the administrative process, while ensuring security against possible abuse of the benefits system by those with no real links to the UK.


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