Section 2(1) and Schedule 2 Parts I, II and III provide for a transfer of functions relating to the tax credits. Much of the detail of the social security legislation for FC and DWA is in subordinate legislation. The primary legislation therefore contains a large number of regulation making powers. In order that WFTC and DPTC can be administered by the Inland Revenue these powers, insofar as they relate to WFTC and DPTC, need to be transferred. Section 2(1) transfers the purely administrative powers to the Board of Inland Revenue, and powers affecting the levels of WFTC and DPTC to the Treasury. Functions relating to the making of decisions go to Officers of the Board of Inland Revenue.
Section 2(2) provides that functions relating to periods of awards which begin before 5 October 1999 will not transfer. They will remain with the Secretary of State for Social Security, but may be exercised by the Inland Revenue on behalf of the Secretary of State. This is because awards run for a period of 26 weeks and therefore on the transfer there will be awards in payment which were authorised before the transfer. Payments authorised under rules prevailing before 5 October will be paid from the DSS vote.
Section 2(3) makes provision for Schedule 2 Part IV which modifies certain enactments for the purposes of WFTC and DPTC.
Section 2(4) gives effect to Part V of Schedule 2, which provides for the detailed consequential amendments needed to provisions in social security legislation which apply to benefits generally, so that they can be applied for the purposes of WFTC and DPTC.
Commentary on Sections Section 2: Transfer of functions relating to tax credits