Section 159C | Effect of alteration of rates of an employment and support allowance ^F1

(1)Subject to such exceptions and conditions as may be prescribed, subsection (2) or (3) shall have effect where—^F1

(a)an award of an employment and support allowance is in force in favour of any person (“the recipient”), and^F1

(b)an alteration—^F1

(i)in any component of the allowance,^F1

(ii)in the recipient’s benefit income, or^F1

(iii)in the recipient’s war disablement or war widow’s or widower’s pension,^F1

affects the computation of the amount of the employment and support allowance to which he is entitled.

(2)Where, as a result of the alteration, the amount of the employment and support allowance to which the recipient is entitled is increased or reduced, then, as from the commencing date, the amount of the employment and support allowance payable in the case of the recipient under the award shall be the increased or reduced amount, without any further decision of the Secretary of State; and the award shall have effect accordingly.^F1

(3)Where, notwithstanding the alteration, the recipient continues on and after the commencing date to be entitled to the same amount by way of an employment and support allowance as before, the award shall continue in force accordingly.^F1

(4)Subsection (5) applies where a statement is made in the House of Commons by or on behalf of the Secretary of State which specifies—^F1

(a)in relation to any of the items referred to in subsection (1)(b)(i) to (iii), the amount of the alteration which he proposes to make by an order under section 150 , 150A , 151A or 152 or by or under any other enactment, and^F1F2F3

(b)the date on which he proposes to bring the alteration into force (“the proposed commencing date”).^F1

(5)If, in a case where this subsection applies, an award of an employment and support allowance is made in favour of a person before the proposed commencing date and after the date on which the statement is made, the award—^F1

(a)may provide for the employment and support allowance to be paid as from the proposed commencing date at a rate determined by reference to the amounts of the items referred to in subsection (1)(b)(i) to (iii) which will be in force on that date, or^F1

(b)may be expressed in terms of the amounts of those items in force at the date of the award.^F1

(6)In this section—^F1F4F5F6F7

“alteration” means—

in relation to any component of an employment and support allowance, its alteration by or under any enactment;

in relation to a person’s benefit income, the alteration of any of the sums referred to in section 150, 150A or 151A by any enactment or by an order under section 150, 150A, 151A or 152 to the extent that any such alteration affects the amount of his benefit income;

in relation to a person’s war disablement pension or war widow’s or widower’s pension, its alteration by or under any enactment;

“benefit income”, in relation to a person, means so much of his income as consists of benefit under the Contributions and Benefits Act , state pension under Part 1 of the Pensions Act 2014 or personal independence payment;

“the commencing date”, in relation to an alteration, means the date on which the alteration comes into force in relation to the recipient;

“component”, in relation to an employment and support allowance, means any of the sums specified in regulations under Part 1 of the Welfare Reform Act 2007 which are relevant in calculating the amount payable by way of an employment and support allowance;

“war disablement pension” and “war widow’s or widower’s pension” have the same meaning as in section 159B.