ON APPEAL FROM Birmingham District Registry
Mr Justice Hickinbottom
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE UNDERHILL
and
LORD JUSTICE BRIGGS
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SMITH |
Appellant |
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- and - |
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SECRETARY OF STATE FOR WORK AND PENSIONS |
Respondent |
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Julian Milford (instructed by The Treasury Solicitor) for the Respondent
Hearing date: 20 January 2015
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Crown Copyright ©
Lord Justice Underhill :
INTRODUCTION
THE RELEVANT PROVISIONS
"(1) Regulations may make provision for or in connection with imposing on claimants in prescribed circumstances a requirement to participate in schemes of any prescribed description that are designed to assist them to obtain employment.
(2) Regulations under this section may, in particular, require participants to undertake work, or work-related activity, during any prescribed period with a view to improving their prospects of obtaining employment.
(3) In subsection (2) "work-related activity", in relation to any person, means activity which makes it more likely that the person will obtain or remain in work or be able to do so.
(4) …
(5) Regulations under this section may, in particular, make provision—
(a) for notifying participants of the requirement to participate in a scheme within subsection (1);
(b)-(f) ...
(6)-(9) …
(10) In this section ..."the jobseeking conditions" means the conditions set out in section 1 (2) (a) to (c)."
(The conditions referred to in sub-section (10) are that the person in question is available for employment, has entered into a jobseeker's agreement which remains in force, and is actively seeking employment.)
The MWAS Regulations
"'the Mandatory Work Activity Scheme' means a scheme within section 17A (schemes for assisting persons to obtain employment: 'work for your benefit' schemes etc.) of the Act known by that name and provided pursuant to arrangements made by the Secretary of State that is designed to provide work or work-related activity for up to 30 hours per week over a period of four consecutive weeks with a view to assisting claimants to improve their prospects of obtaining employment."
"3. Selection for participation in the Scheme
(1) The Secretary of State may select a claimant who is aged at least 18 for participation in the Scheme.
(2) Only a claimant who is required to meet the jobseeking conditions may be required to participate in the Scheme.
4. Requirement to participate and notification
(1) Subject to regulation 5, a claimant ("C") selected under regulation 3 is required to participate in the Scheme where the Secretary of State gives C a notice in writing complying with paragraph (2).
(2) The notice must specify—
(a) that C is required to participate in the Scheme;
(b) the day on which C's participation will start;
(c) that C's participation will be for four weeks;
(d) details of what C is required to do by way of participation in the Scheme;
(e) that the requirement to participate in the Scheme will continue until C is given notice by the Secretary of State that C's participation is no longer required, or C's award of jobseeker's allowance terminates, whichever is earlier;
(f) information about the consequences of failing to participate in the Scheme.
(3) Any changes made to the requirements mentioned in paragraph (2)(d) after the date on which C's participation starts must be notified to C in writing.
5. Circumstances in which requirement to participate in the Scheme ceases to apply
(1) A requirement to participate in the Scheme ceases to apply to a claimant ("C") if—
(a) the Secretary of State gives C notice in writing that C is no longer required to participate in the Scheme, or
(b) C's award of jobseeker's allowance terminates, whichever is earlier.
(2) The requirement ceases to apply on the day specified in the notice."
THE DECISION IN REILLY
(1) The relevant definition in regulation 2 (1) read as follows:
"'the Employment, Skills and Enterprise Scheme' means a scheme within section 17A (schemes for assisting persons to obtain employment: 'work for your benefit' schemes etc.) of the Act known by that name and provided pursuant to arrangements made by the Secretary of State that is designed to assist claimants to obtain employment or self-employment, and which may include for any individual work-related activity (including work experience or job search)".
(2) As for Part 2, regulation 3 was different from the equivalent in the MWAS Regulations since it read simply "The Secretary of State may select a claimant for participation in the Scheme": thus there was no minimum age as provided in regulation 3 (1) of the MWAS Regulations and no paragraph (2). Regulations 4 and 5 were in identical terms to the MWAS Regulations.
"Simply to give a scheme a name cannot, in context, be treated as a prescribed description of a scheme in which claimants may be required to participate, within section 17A (1)."
Sir Stanley Burnton delivered a concurring judgment, parts of which were quoted in the judgment of Lord Neuberger and Lord Toulson in the Supreme Court: see para. 15 below. Black LJ agreed with both judgments.
"(2) Day One Support for Young People is a scheme comprising up to 30 hours per week in a work placement for the benefit of the community and up to 10 hours per week of supported work search over a period of 13 weeks, for any claimant aged between 18 and 24 years who has less than 6 months work history since leaving full-time education.
(3) The Derbyshire Mandatory Youth Activity Programme is a scheme delivered in the Derbyshire Jobcentre Plus District comprising up to 30 hours per week of work-related activity for the benefit of the community and up to 6 hours per week of supported work search over a period of 8 weeks, for any claimant aged between 18 and 34 years.
(4) Full-time Training Flexibility is a scheme comprising training of 16 to 30 hours per week, for any claimant who has been receiving jobseeker's allowance for a continuous period of not less than 26 weeks ending on the first required entry date to the scheme.
(5) New Enterprise Allowance is a scheme designed to assist a claimant into self-employed earner's employment comprising guidance and support provided by a business mentor, access to a loan to help with start-up costs (subject to status) and a weekly allowance for a period of 26 weeks once the claimant starts trading.
(6) The sector-based work academy is a scheme which provides, for a period of up to 6 weeks, training to enable a claimant to gain the skills needed in the work place and a work experience placement for a period to be agreed with the claimant, and either a job interview with an employer or support to help participants through an employer's application process.
(7) Skills Conditionality is a scheme comprising training or other activity designed to assist a claimant to obtain skills needed to obtain employment.
(8) The Work Programme is a scheme designed to assist a claimant at risk of becoming long-term unemployed in which, for a period of up to 2 years, the claimant is given such support as the provider of the Work Programme considers appropriate and reasonable in the claimant's circumstances, subject to minimum levels of support published by the provider, to assist the claimant to obtain and sustain employment which may include work search support, provision of skills training and work placements for the benefit of the community."
On 26 March 2013 the Jobseekers (Back to Work Schemes) Act 2013 came into force. Its effect is retrospectively to validate the ESES Regulations.
"The First Issue: Were the 2011 Regulations ultra vires ?
43. The question to which this first issue gives rise is whether the 2011 Regulations satisfied the requirements of section 17A(1), as expanded by section 35 of the 1995 Act. The principal point in this connection is whether, as the Court of Appeal held, regulation 2 of the 2011 Regulations … contained a sufficiently prescribed description of the sbwa scheme and the CAP.
44. To recapitulate,
(a) section 17A(1) authorised the making of regulations which "impos[ed]" on claimants in prescribed circumstances a requirement to participate in schemes of any prescribed description that are designed to assist them to obtain employment", and, by section 35, "prescribed" means "specified in or determined in accordance with regulations"; and
(b) regulation 2 identified the Employment, Skills and Enterprise Scheme, which "means a scheme within section 17A … known by that name and provided pursuant to arrangements made by the Secretary of State that is designed to assist claimants to obtain employment or self-employment, and which may include for any individual work-related activity (including work experience or job search)".
45. Whether one takes the Employment, Skills and Enterprise Scheme (which is really a group of schemes including the sbwa scheme and the CAP) as a single scheme, or whether, as seems more natural, one takes the sbwa scheme and the CAP as separate schemes, they were undoubtedly schemes which fell within the ambit of regulation 2. However, the question which arises is whether regulation 2 was or contained a "prescribed description" of the scheme in question. In other words, the question is whether regulation 2 could fairly be said to have been a "regulation" either (i) which "specified a "description" of (the Employment, Skills and Enterprise Scheme or) the sbwa scheme or the CAP, or (ii) "in accordance with" which (the Employment, Skills and Enterprise Scheme or) the sbwa scheme or the CAP could be said to have been "determined".
46. For the Secretary of State, Mr Eadie QC argued that the self-evident need for flexibility in the precise characteristics of any scheme introduced under section 17A renders it unlikely that Parliament can have intended much, if anything, in the way of specific information about any scheme to be included in any regulation made thereunder. The need for flexibility cannot be doubted. As Pill LJ said in the Court of Appeal [2013] 1 WLR 2239, para 49, "[t]he needs of jobseekers will vary infinitely, as will the requirements of providers prepared to participate in arrangements with them". Over and above the question of flexibility, as Ms Lieven effectively accepted, once one decides that section 17A(1) requires more specific information about a scheme than what is contained in regulation 2, it is not easy to identify the precise extent of the information required.
47. However, even bearing in mind these points, it appears clear to us that regulation 2 does not satisfy the requirements of section 17A(1). The courts have no more important function than to ensure that the executive complies with the requirements of Parliament as expressed in a statute. Further, particularly where the statute concerned envisages regulations which will have a significant impact on the lives and livelihoods of many people, the importance of legal certainty and the impermissibility of sub-delegation are of crucial importance. The observations of Scott LJ in Blackpool Corpn v Locker [1948] 1 KB 349, 362 are in point: "John Citizen" should not be "in complete ignorance of what rights over him and his property have been secretly conferred by the minister", as otherwise "For practical purposes, the rule of law … breaks down because the aggrieved subject's legal remedy is gravely impaired".
48. More specifically, in relation to the point at issue, we cannot improve on the reasoning of Sir Stanley Burnton in the Court of Appeal, where he said, at paras 75-76:
"75. Where Parliament in a statute has required that something be prescribed in delegated legislation it envisages, and I think requires, that the delegated legislation adds something to what is contained in the primary legislation. There is otherwise no point in the requirement that the matter in question be prescribed in delegated legislation. However, the description of the Employment, Skills and Enterprise Scheme in the 2011 Regulations adds nothing to the description of such schemes in the Act … In effect the Secretary of State contends that any scheme he creates is a scheme within the meaning of section 17A notwithstanding that it is not described in any regulations made under the Act. Furthermore, it is not possible to identify any provision of the regulations that can be said to satisfy the requirement that the description be 'determined in accordance with' the Regulations …
76. Description of a scheme in regulations is important from the point of view of parliamentary oversight of the work of the administration. It is also important in enabling those who are required to participate in a scheme, or at least those advising them, to ascertain whether the requirement has been made in accordance with parliamentary authority."
49. Sir Stanley immediately went on to say,
"The question as to precisely how much detail must be included in the Regulations in order to comply with the requirements of the Act does not arise for consideration in this appeal, since the Regulations contain none."
However, while it is a fundamental duty of the courts to ensure that the executive carries out its functions in accordance with the requirements of Parliament, as expressed in primary legislation, it is also incumbent on courts to be realistic in the standards they set for such compliance. In this case, it is not only self-evident, but it is clear from the contents of regulation 3 of the 2013 Regulations … that it is not unrealistic to hold that the Secretary of State could have done significantly more than was done in the earlier regulation 2 to describe the individual schemes such as the sbwa scheme and the CAP. It is neither necessary nor appropriate for us to decide whether regulation 3 of the 2013 Regulations complies with the requirements of section 17A: the issue is not before us, and has not been argued, and in any event it may be influenced by the provisions of the 2013 Act.
50. Given the conclusion that the 2011 Regulations are ultra vires because they fail to provide a "prescribed description" of any scheme, it is strictly unnecessary to consider the further grounds raised by Miss Reilly and Mr Wilson for contending that the 2011 Regulations were invalid, but we will do so briefly. Those grounds are that the Regulations fell foul of the requirements of section 17A that any regulations made thereunder must, under subsection (1), "prescribe" the "circumstances" in which, and, under subsection (2), the "period" for which, claimants may be required to participate in prescribed schemes.
51. The Court of Appeal rejected these two further grounds, and, while accepting that each ground is not without force, we agree with the Court of Appeal. The argument that the 2011 Regulations fail to prescribe the circumstances in which a claimant may be required to participate in a scheme, was largely based on regulation 3 of the 2011 Regulations … . It is said that, by merely providing that the Secretary of State may select a claimant for participation in a scheme, it suffers from the same vice as the alleged prescribed description of the schemes, in that it does no more than sub-delegate, in a completely unqualified way, the whole exercise of prescribing the circumstances to the Secretary of State. However, as Pill LJ indicated in para 58 of his judgment, one must also consider regulation 4 in this context. It seems to us that, particularly given the need for flexibility, regulation 4 contains sufficient detail to justify the conclusion that the circumstances in which a claimant can be required to participate in a scheme is to be "determined in accordance with" the 2011 Regulations. The fact that the regulation is concerned with the contents of a notice is irrelevant to this issue, but the very open-ended nature of what is left to the Secretary of State by regulation 4 could well be a problem in other circumstances where flexibility was not so obviously essential.
52. Substantially the same point can be made about the statutory requirement in section 17A(2) for a period to be prescribed and the terms of regulations 4(2)(d) and 5(2) of the 2011 Regulations. Ms Lieven argued that the Regulations thus provide for an "open-ended period", but we do not see why that is intrinsically incapable of being a "prescribed period". Again, we agree with Pill LJ, who said, at para 59, that the period is "specified by way of events with which it will begin and end", and that, bearing in mind the "undoubted need for flexibility where possible", it is "a tenable specification"."
THE JUDGMENT OF HICKINBOTTOM J
THE APPEAL
(1) The scheme must be "designed to provide work or work-related activity" whereas the equivalent definition in the ESES Regulations provided only that it should be "designed to assist claimants to obtain employment or self-employment": it is true that it also provided that it "may include … work-related activity", but a merely inclusory provision of that kind does not help to describe the scheme.
(2) The maximum time for which the work or work-related activity may be provided is given – that is, up to thirty hours per week for four consecutive weeks. There is no equivalent in the ESES Regulations.
Mr Milford in his skeleton argument, though not in his oral submissions, relied also on regulation 3 (2) of the MWAS Regulations, which specifies conditions for being required to participate in the scheme (see para. 5 above). This too has no equivalent in the ESES Regulations. I would not myself regard conditions for participation in the scheme as part of its "description"; it seems to me more natural to describe them as part of the "prescribed circumstances" also referred to in section 17A (1). But the issue is not critical because of the other points which I have identified. In my view those points mean that it is not possible to say of the MWAS Regulations, as Pill LJ did of the ESES Regulations, that they do no more than give the scheme a name. To put the same thing another way, Mr Smith drew attention to Sir Stanley Burnton's point, endorsed by the Supreme Court, that it is a requirement that "the delegated legislation adds something to what is contained in the primary legislation". The ESES Regulations did indeed add literally nothing, save a name; but the MWAS Regulations prescribe that the scheme must require that claimants do work or work-related activity and prescribe the maximum time for which they should do it.
CONCLUSION
Lord Justice Briggs:
Lord Justice Richards: