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The Secretary of State for Education and Employment, in relation to regulation 3(2) of these Regulations and the Secretary of State for Social Security, in relation to the remainder of these Regulations, in exercise of the powers conferred by sections 12(1), (2) and (4)(b) and (d), 19(10)(c), 21, 35(1) and 36(1), (2) and (4) of, and paragraphs 4 and 10(1) of Schedule 1 to, the Jobseekers Act 1995[1], sections 123(1), 136(3), (4) and (5)(b), 137(1) and 175(1), (3) and (4) of the Social Security Contributions and Benefits Act[2] and sections 5(1)(i) and 189(1) and (4) of the Social Security Administration Act 1992[3], and of all other powers enabling each of them in that behalf, after consultation in respect of provisions in these Regulations relating to housing benefit and council tax benefit, with organisations appearing to the Secretary of State for Social Security to be representative of the authorities concerned[4] and after agreement by the Social Security Advisory Committee that proposals in respect of these Regulations should not be referred to it[5], hereby make the following Regulations: Citation, commencement and interpretation 1. - (1) These Regulations may be cited as the Social Security (Miscellaneous Amendments) (No. 4) Regulations 1998 and shall come into force on 1st June 1998. (2) In these Regulations -
Revocation
(ii) assistance in pursuing self-employed earner's employment;".
(3) After regulation 88 there shall be inserted the following regulation -
88A. Chapters II, III, IV, V, VII and VIII of this Part and regulations 131 to 136, 138 and 139 shall not apply to any income which is to be calculated in accordance with Chapter IVA of this Part (participants in the self-employment route of the Employment Option of the New Deal).".
(4) After regulation 102 there shall be inserted the following Chapter - Interpretation 102A. In this Chapter -
Treatment of gross receipts of participants in the self-employment route of the Employment Option of the New Deal
(b) any sum to which paragraph (4) refers.
(2) Income calculated pursuant to paragraph (1) shall be apportioned equally over a period which starts on the date the income is treated as paid under paragraph (3) and is equal in length to the period beginning with the day upon which assistance was first received under the self-employment route and ending on the last day upon which such assistance was received.
(b) in any other case, on the first day of the benefit week in which it is due to be paid.
(4) This paragraph refers, where applicable in each benefit week in respect of which income calculated pursuant to paragraph (1) is taken into account pursuant to paragraphs (2) and (3), to the sums which would have been disregarded under paragraphs 5 to 8, 11 and 12 of Schedule 6 had the income been earnings.
(b) the personal reliefs which are applicable to the person receiving assistance under the self-employment route by virtue of sections 257(1), 257A(1) and 259 of the Income and Corporation Taxes Act 1988[14] (personal reliefs) are allowable against that income; and (c) the rate at which the chargeable income less the personal relief is assessable to income tax is the lower rate of tax or, as the case may be, the lower rate and the basic rate of tax.
(2) For the purpose of paragraph (1), the lower rate of tax to be applied and the amount of the personal relief deductible shall, where the period determined under regulation 102C(2) is less than a year, be calculated on a pro rata basis.
Income to be disregarded
(b) regulation 75(1)(a)(ii)(bb) (Voluntary Sector Option of the New Deal); or (c) regulation 75(1)(a)(ii)(cc) (Environment Task Force Option of the New Deal).";
(b) at the end there shall be added the following paragraph -
(b) which is used or intended to be used to maintain repayments on a loan taken out by that person for the purpose of establishing or carrying on the commercial activity,
in respect of which such assistance is or was received.
Capital to be disregarded
(4) In the case of a person who has ceased carrying on the commercial activity in respect of which assistance was received as specified in sub-paragraph (3), the assets relating to that activity for such period as may be reasonable in the circumstances to allow for disposal of any such asset.";
(b) regulation 75(1)(a)(ii)(bb) (Voluntary Sector Option of the New Deal); or (c) regulation 75(1)(a)(ii)(cc) (Environment Task Force Option of the New Deal),
but only for a period of 52 weeks from the date of receipt of the payment.";
Amendment of the Income Support Regulations
23A. Chapters II, III, IV, V, VII and VIIA of this Part and regulations 62 to 66A, 68 and 69 shall not apply to any income which is to be calculated in accordance with Chapter IVA of this Part (participants in the self-employment route of the Employment Option of the New Deal).".
(3) After regulation 39 there shall be inserted the following Chapter - Interpretation 39A. In this Chapter -
Treatment of gross receipts of participants in the self-employment route of the Employment Option of the New Deal
(b) any sum to which paragraph (4) refers.
(2) Income calculated pursuant to paragraph (1) shall be apportioned equally over a period which starts on the date the income is treated as paid under paragraph (3) and is equal in length to the period beginning with the day upon which assistance was first received under the self-employment route and ending on the last day upon which such assistance was received.
(b) in any other case, on the first day of the benefit week in which it is due to be paid.
(4) This paragraph refers, where applicable in each benefit week in respect of which income calculated pursuant to paragraph (1) is taken into account pursuant to paragraphs (2) and (3), to the sums which would have been disregarded under paragraphs 4 to 6B and 9 of Schedule 8 had the income been earnings.
(b) the personal reliefs which are applicable to the person receiving assistance under the self-employment route by virtue of sections 257(1), 257A(1) and 259 of the Income and Corporation Taxes Act 1988[17](personal reliefs) are allowable against that income; and (c) the rate at which the chargeable income less the personal relief is assessable to income tax is the lower rate of tax or, as the case may be, the lower rate and the basic rate of tax.
(2) For the purpose of paragraph (1), the lower rate of tax to be applied and the amount of the personal relief deductible shall, where the period determined under regulation 39C(2) is less than a year, be calculated on a pro rata basis.
(4) At the end of Schedule 9[18] (sums to be disregarded in the calculation of income other than earnings) there shall be added the following paragraph -
(b) which is used or intended to be used to maintain repayments on a loan taken out by that person for the purpose of establishing or carrying on the commercial activity,
in respect of which such assistance is or was received.
Common amendments
(2) The regulations for the purposes of paragraph (1) of this regulation are -
(b) regulation 34 of the Disability Working Allowance Regulations; (c) regulation 31 of the Family Credit Regulations; (d) regulation 40 of the Housing Benefit Regulations.
(3) For each of the numbered paragraphs of the Schedules specified in paragraph (4) of this regulation (which relate to sums to be disregarded in the calculation of income other than earnings), there shall be substituted the following paragraph -
(b) regulation 75(1)(a)(ii)(bb) of those Regulations (Voluntary Sector Option of the New Deal); or (c) regulation 75(1)(a)(ii)(cc) of those Regulations (Environment Task Force Option of the New Deal).".
(4) The respective paragraph numbers and Schedules for the purposes of paragraph (3) of this regulation[19] are -
(b) paragraph 57 of Schedule 3 to the Disability Working Allowance Regulations; (c) paragraph 59 of Schedule 2 to the Family Credit Regulations; (d) paragraph 64 of Schedule 4 to the Housing Benefit Regulations; (e) paragraph 62 of Schedule 9 to the Income Support Regulations.
(5) At the end of each of the Schedules specified in paragraph (6) of this regulation (which relate to income other than earnings to be disregarded) there shall be added the following paragraph bearing the specified respective paragraph number -
(b) which is used or intended to be used to maintain repayments on a loan taken out by that person for the purpose of establishing or carrying on the commercial activity,
in respect of which such assistance is or was received.
(6) The respective paragraph numbers and Schedules for the purposes of paragraph (5) of this regulation[21] are -
(b) paragraph 59 of Schedule 3 to the Disability Working Allowance Regulations; (c) paragraph 61 of Schedule 2 to the Family Credit Regulations; (d) paragraph 66 of Schedule 4 to the Housing Benefit Regulations.
(7) At the end of each of the numbered paragraphs of the Schedules specified in paragraph (8) (which relate to sums to be disregarded in the calculation of capital), there shall be added the following sub-paragraphs -
(4) In the case of a person who has ceased carrying on the commercial activity in respect of which assistance was received as specified in sub-paragraph (3), the assets relating to that activity for such period as may be reasonable in the circumstances to allow for disposal of any such asset.".
(8) The respective paragraph numbers and Schedules for the purposes of paragraph (7) of this regulation are -
(b) paragraph 6 of Schedule 4 to the Disability Working Allowance Regulations; (c) paragraph 6 of Schedule 3 to the Family Credit Regulations[22]; (d) paragraph 7 of Schedule 5 to the Housing Benefit Regulations[23]; (e) paragraph 6 of Schedule 10 to the Income Support Regulations[24].
(9) For the numbered paragraph of each of the Schedules specified in paragraph (10) of this regulation (which relate to sums to be disregarded in the calculation of capital), there shall be substituted the following paragraph -
(b) regulation 75(1)(a)(ii)(bb) of those Regulations (Voluntary Sector Option of the New Deal); or (c) regulation 75(1)(a)(ii)(cc) of those Regulations (Environment Task Force Option of the New Deal),
but only for a period of 52 weeks from the date of receipt of the payment.".
(10) The respective paragraph numbers and Schedules for the purposes of paragraph (9) of this regulation[25] are -
(b) paragraph 51 of Schedule 4 to the Disability Working Allowance Regulations; (c) paragraph 52 of Schedule 3 to the Family Credit Regulations; (d) paragraph 53 of Schedule 5 to the Housing Benefit Regulations; (e) paragraph 50 of Schedule 10 to the Income Support Regulations.
(11) At the end of each of the Schedules specified in paragraph (12) of this regulation (which relate to sums to be disregarded in the calculation of capital) there shall be added the following paragraph bearing the specified respective paragraph number -
(12) The respective paragraph numbers and Schedules for the purposes of paragraph (11) of this regulation[26] are -
(b) paragraph 53 of Schedule 4 to the Disability Working Allowance Regulations; (c) paragraph 54 of Schedule 3 to the Family Credit Regulations; (d) paragraph 55 of Schedule 5 to the Housing Benefit Regulations; (e) paragraph 52 of Schedule 10 to the Income Support Regulations.
Consequential amendments
(b) after paragraph 66 there shall be added the following paragraph -
(3) In the Social Security (Claims and Payments) Regulations 1987[31] -
(b) in sub-paragraph (4) of paragraph 7 of Schedule 7[33] (effect of changes of circumstances in income support cases), after the words "or (2)" there shall be inserted the words "or 39C(3)".
(This note is not part of the Regulations) These Regulations amend the Jobseeker's Allowance Regulations 1996 (S.I.1996/207), the Income Support (General) Regulations 1987 (S.I.1987/1967), the Housing Benefit (General) Regulations 1987 (S.I.1987/1971), the Council Tax Benefit (General) Regulations 1992 (S.I.1992/1814), the Family Credit (General) Regulations 1987 (S.I.1987/1973), the Disability Working Allowance (General) Regulations 1991 (S.I.1991/2887), the Social Security Amendment (New Deal) Regulations 1997 (S.I.1997/2863) and the Social Security (Claims and Payments) Regulations 1987 (S.I.1987/1968). They also revoke the Jobseeker's Allowance (Amendment) Regulations 1998 (S.I.1998/71) which increased the number of waiting days before which a person may be entitled to a jobseeker's allowance from 3 to 7 (regulation 2). In particular, these Regulations prescribe that part of the Employment Option of the New Deal (as prescribed in regulation 8 of the Social Security Amendment (New Deal) Regulations 1997 (S.I.1997/2863)) shall consist of assistance in pursuing self-employed earner's employment ("the self-employment route") (regulation 3(2)). By so doing, the regulations provide that the self-employment route is an employment programme for the purposes of section 19 of the Jobseekers Act 1995 (c.18) and that if a person, without good cause, refuses or fails to participate in the self-employment route, or loses his place on the self-employment route due to misconduct, he will receive a sanction under section 19 of that Act. The Regulations also make various amendments to the rules on the treatment of income and capital in the benefits referred to above which are consequential on the introduction of the self-employment route -
Regulation 8(1) and (2) both revoke a consequential amendment in the Social Security Amendment (New Deal) Regulations 1997 and make a technical amendment relating to the numbering of paragraphs in Schedule 4 to the Housing Benefit (General) Regulations 1987. Regulation 8(3) makes a consequential amendment to the Social Security (Claims and Payments) Regulations 1987 relating to the date on which relevant changes of circumstances are to have effect for the purposes of persons entitled to a jobseeker's allowance or to income support. Notes: [1] 1995 c. 18; section 35(1) is an interpretation provision and is cited because of the meaning ascribed to the words "prescribed" and "regulations".back [2] 1992 c. 4; sections 123(1)(e) and 137 were amended to have effect with respect to council tax benefit by Schedule 9 to the Local Government Finance Act 1992 (c. 14), paragraphs 1 and 9; section 137(1) is an interpretation provision and is cited because of the meaning ascribed to the word "prescribed".back [3] 1992 c. 5; section 5 was amended to have effect in relation to jobseeker's allowance by the Jobseekers Act 1995 (c. 18), Schedule 2, paragraph 39.back [4] See section 176(1) of the Social Security Administration Act 1992 (c. 5).back [5] See sections 170 and 173(1)(b) of the Social Security Administration Act 1992, (c. 5); paragraph 67 of Schedule 2 to the Jobseekers Act 1995 added that Act to the list of "relevant enactments" in respect of which regulations must normally be referred to the Committee.back [13] Regulation 75 was substituted by S.I.1997/2863.back [14] 1988 c. 1; sections 257 to 257F were substituted for section 257 by section 33 of the Finance Act 1988 (c. 39); section 257 was amended by section 74(2) of, and Schedule 20 and Part V of Schedule 41 to, the Finance Act 1996 (c. 8) and by section 55(2) of the Finance Act 1997 (c. 16); section 259 was amended by sections 30 and 35 of the Finance Act 1988 and section 20 of the Finance (No. 2) Act 1992 (c. 48), section 77 of, and paragraph 6 of Schedule 8 to, the Finance Act 1994 (c. 9) and Schedule 20 and Part V of Schedule 41 to the Finance Act 1996 (c. 8).back [15] Paragraphs 60 and 61 were inserted by S.I.1997/2863.back [16] Paragraph 45 was inserted by S.I.1997/2863.back [17] 1988 c. 1; sections 257 to 257F were substituted for section 257 by section 33 of the Finance Act 1988 (c. 39); section 257 was amended by section 74(2) of, and Schedule 20 and Part V of Schedule 41 to, the Finance Act 1996 (c. 8) and by section 55(2) of the Finance Act 1997 (c. 16); section 259 was amended by sections 30 and 35 of the Finance Act 1988 and section 20 of the Finance (No. 2) Act 1992 (c. 48), section 77 of, and paragraph 6 of Schedule 8 to, the Finance Act 1994 (c. 9) and Schedule 20 and Part V of Schedule 41 to the Finance Act 1996 (c. 8).back [18] Paragraph 63 was added by S.I.1997/2863.back [19] The paragraphs referred to in paragraph (4) were inserted by S.I.1997/2863.back [20] S.I.1996/207; the relevant amending instrument was S.I.1998/1174.back [21] The preceding paragraphs to those referred to in paragraph (6) were inserted by S.I.1997/2863.back [22] Paragraph 6 was amended by S.I.1990/1774.back [23] Paragraph 7 was amended by S.I.1990/1775.back [24] Paragraph 6 was amended by S.I.1990/1776.back [25] The paragraphs referred to in paragraph (10) were inserted by S.I.1997/2863.back [26] The preceding paragraphs to those referred to in paragraph (12) were inserted by S.I.1997/2863.back [28] The second paragraph designated "62" was inserted by S.I.1997/65.back [30] 1968 c. 48; section 12B was inserted by the Community Care (Direct Payments) Act 1996 (c. 30), section 4.back [32] Regulation 26A was inserted by S.I.1996/1460.back [33] Paragraph 7 of Schedule 7 was substituted by S.I.1990/2208 and amended by S.I.1991/387 and 1992/247.back
[a] Amended by Correction Slip. Page 9, name of signatory: delete "Paul Howarth" substitute "Alan Howarth" back
ISBN 0 11 079002 2
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