Statutory Instrument 2003 No. 325

      The Housing Benefit and Council Tax Benefit (State Pension Credit) Regulations 2003


      © Crown Copyright 2003

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STATUTORY INSTRUMENTS


2003 No. 325

SOCIAL SECURITY

The Housing Benefit and Council Tax Benefit (State Pension Credit) Regulations 2003

  Made 17th February 2003 
  Laid before Parliament 20th February 2003 
  Coming into force in accordance with regulation 1(1)


ARRANGEMENT OF REGULATIONS


PART 1

General
1. Citation, commencement and interpretation

PART 2

Housing Benefit
2. Housing Benefit Regulations
3. Interpretation
4. Modification of regulation 5
5. Persons from abroad
6. Applicable amounts
7. Amendment of regulation 19
8. Income and capital
9. Provisions which do not apply
10. Continuing payments where state pension credit claimed
11. Amendment of regulation 63

PART 3

Council Tax Benefit
12. Council Tax Benefit Regulations
13. Interpretation
14. Persons from abroad
15. Applicable amounts
16. Amendment of regulation 11
17. Income and capital
18. Provisions which do not apply
19. Amendment of regulation 52
20. Continuing payments

PART 4

Schedules Common to Housing Benefit and Council Tax Benefit
21. Application of Schedule 2

PART 5

Consequential and Transitional Provisions
22. Date on which change of circumstances takes effect
23. Time claims are made or treated as made
24. Notification of change of circumstances
25. Decisions
26. Amendments relating to recovery of overpaid housing benefit or excess council tax benefit
27. Minor amendments
28. Amendment of the Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001
29. Transitional provision
30. Claims made before 6th October 2003
31. Existing claimants

  SCHEDULE 1 Provisions Conferring Powers Exercised in making these Regulations

  SCHEDULE 2 Disregards

The Secretary of State, in exercise of the powers conferred upon him by the provisions specified in Schedule 1 to this Instrument and of all other powers enabling him in that behalf, after consultation with organisations appearing to him to be representative of the authorities concerned[
1], by this Instrument, which contains only regulations made by virtue of or consequential upon paragraph 3 of Schedule 2 to, and in so far as it relates to that paragraph section 14 of, the State Pension Credit Act 2002[2] and which is made before the end of the period of 6 months beginning with the coming into force of those provisions[3], hereby makes the following Regulations:



PART 1

General

Citation, commencement and interpretation
     1.  - (1) These Regulations may be cited as the Housing Benefit and Council Tax Benefit (State Pension Credit) Regulations 2003 and shall come into force - 

    (a) for the purposes of this regulation and regulation 30, on 6th April 2003;

    (b) for all other purposes, on 6th October 2003.

    (2) In these Regulations - 

    "the Council Tax Benefit Regulations" means the Council Tax Benefit (General) Regulations 1992[5];

    "the qualifying age for state pension credit" is (in accordance with section 1(2)(b) and (6) of the State Pension Credit Act) - 

    (a) in the case of a woman, pensionable age; or

    (b) in the case of a man, the age which is pensionable age in the case of a woman born on the same day as the man;

    "the State Pension Credit Act" means the State Pension Credit Act 2002.

    (3) In Part 5 of these Regulations, references in any provision inserted - 

    (a) in the Housing Benefit Regulations to a regulation of or Schedule to those Regulations is to those provisions as modified or amended by these Regulations;

    (b) in the Council Tax Benefit Regulations to a regulation of or Schedule to those Regulations is to those provisions as modified or amended by these Regulations.



PART 2

Housing Benefit

Housing Benefit Regulations
     2.  - (1) The Housing Benefit Regulations shall have effect, except where paragraph (2) applies, in relation to any person who has attained the qualifying age for state pension credit subject to the modifications set out in this Part, Part 4 and Schedule 2.

    (2) This paragraph applies if the claimant or, if the claimant has a partner, his partner, is a person on income support or on an income-based jobseeker's allowance within the meaning of the Housing Benefit Regulations[
6].

    (3) In this Part, references to regulations and Schedules are, unless the context otherwise requires, references to regulations of and Schedules to the Housing Benefit Regulations.

Interpretation
     3.  - (1) In regulation 2 (interpretation), in paragraph (1) - 

    (a) for the definition of "assessment period", substitute - 

      " "assessment period" means the period determined - 

      (a) in relation to the earnings of a self-employed earner, in accordance with regulation 32 for the purpose of calculating the weekly earnings of the claimant; or

      (b) in relation to any other income, in accordance with regulation 28 for the purpose of calculating the weekly income of the claimant;";

    (b) for the definition of "the benefit Acts", substitute - 

    (c) after the definition of "benefit week", insert - 

      " "board and lodging accommodation" means accommodation provided to a person or, if he is a member of a family, to him or any other member of his family, for a charge which is inclusive of the provision of that accommodation and at least some cooked or prepared meals which both are cooked or prepared (by a person other than the person to whom the accommodation is provided or a member of his family) and are consumed in that accommodation or associated premises;

      "care home" has the meaning it has for the purposes of the Care Standards Act 2000[8] by virtue of section 3 of that Act and in Scotland means a care home service;

      "care home service" has the meaning assigned to it by section 2(3) of the Regulation of Care (Scotland) Act 2001[9];";

    (d) after the definition of "gateway office"[10], insert - 

      " "guarantee credit" is to be construed in accordance with sections 1 and 2 of the State Pension Credit Act;";

    (e) after the definition of "person on income support", insert - 

      " "person on state pension credit" means a person in receipt of state pension credit;";

    (f) after the definition of "retirement annuity contract" insert - 

      " "savings credit" shall be construed in accordance with sections 1 and 3 of the State Pension Credit Act;";

    (g) after the definition of "self-employment route" insert - 

      " "the State Pension Credit Act" means the State Pension Credit Act 2002;".

    (2) In that regulation, after paragraph (4A)[11], insert - 

        " (4B) In these Regulations references to any person in receipt of a guarantee credit, a savings credit or state pension credit includes a reference to a person who would be in receipt thereof but for regulation 13 of the State Pension Credit Regulations 2002[12] (small amounts of state pension credit).".

Modification of regulation 5
     4. In regulation 5 (circumstances in which a person is or is not to be treated as occupying a dwelling as his home) in paragraph (6)(c)(ii), for the words "or the claimant's applicable amount includes a provision under paragraph 9, 9A,10,11, 13 or 14 of Schedule 2", substitute "or the claimant is a person who has attained or whose partner has attained the qualifying age for state pension credit".

Persons from abroad
    
5. In regulation 7A (persons from abroad), in paragraph (5), for sub-paragraph (d), substitute - 

Applicable amounts
    
6.  - (1) For regulations 16 (applicable amounts), 17 (polygamous marriages) and 18 (patients), substitute - 

    (2) After Schedule 2 insert - 



    " SCHEDULE 2A
    Regulation 16


    APPLICABLE AMOUNTS FOR PERSONS WHO HAVE ATTAINED OR WHOSE PARTNER HAS ATTAINED THE QUALIFYING AGE FOR STATE PENSION CREDIT




    PART I

    Personal Allowances

         1. The amount specified in column (2) below in respect of each person or couple specified in column (1) shall be the amount specified for the purposes of regulation 16 - 

    (1) (2)
    Person, couple or polygamous marriage Amount
        (1) Single claimant - 

        (1) - 

    (a) aged under 65;

    (a) £102.10;

    (b) aged 65 or over.

    (b) £116.90.

        (2) Couple - 

        (2) - 

    (a) both members aged under 65;

    (a) £155.80;

    (b) one member or both members aged 65 or over.

    (b) £175.00.

        (3) If the claimant is a member of a polygamous marriage and none of the members of the marriage have attained the age of 65 - 

        (3) - 

    (a) for the claimant and the other party to the marriage;

    (a) £155.80;

    (b) for each additional spouse who is a member of the same household as the claimant.

    (b) £53.70.

        (4) If the claimant is a member of a polygamous marriage and one or more members of the marriage are aged 65 or over - 

        (4) - 

    (a) for the claimant and the other party to the marriage;

    (a) £175.00;

    (b) for each additional spouse who is a member of the same household as the claimant.

    (b) £58.10.


         2.  - (1) The amounts specified in column (2) below in respect of each person specified in column (1) shall, for the relevant period specified in column (1), be the amounts specified for the purposes of regulation 16(1)(b) - 

    (1) (2)
    Child or young person Amount
    Person in respect of the period - 

      (a) beginning on that person's date of birth and ending on the day preceding the first Monday in September following that person's sixteenth birthday;

    £38.50;
    (b) beginning on the first Monday in September following that person's sixteenth birthday and ending on the day preceding that person's nineteenth birthday.

    £38.50.

        (2) In column (1) of the Table above, "the first Monday in September" means the Monday which first occurs in the month of September in any year.



    PART II

    Family Premium

         3.  - (1) The amount for the purposes of regulation 16(1)(c) and (d) in respect of a family of which at least one member is a child or young person shall be £15.75.

        (2) The amount specified in sub-paragraph (1) shall be increased by £10.45 where at least one child is under the age of one year and for the purposes of this sub-paragraph where that child's first birthday does not fall on a Monday he shall be treated as under the age of one year until the first Monday after his first birthday.



    PART III

    Premiums

         4. The premiums specified in Part IV shall, for the purposes of regulation 16(1)(e), be applicable to a claimant who satisfies the condition specified in this Part in respect of that premium.

         5.  - (1) Subject to sub-paragraph (2), for the purposes of this Part of this Schedule, once a premium is applicable to a claimant under this Part, a person shall be treated as being in receipt of any benefit for - 

      (a) in the case of a benefit to which the Social Security (Overlapping Benefits) Regulations 1979[14] applies, any period during which, apart from the provisions of those Regulations, he would be in receipt of that benefit; and

      (b) any period spent by a person in undertaking a course of training or instruction provided or approved by the Secretary of State under section 2 of the Employment and Training Act 1973[15], or by Scottish Enterprise or Highlands and Islands Enterprise under section 2 of the Enterprise and New Towns (Scotland) Act 1990[16] or for any period during which he is in receipt of a training allowance.

        (2) For the purposes of the carer premium under paragraph 9, a person shall be treated as being in receipt of a carer's allowance under section 70 of the Contributions and Benefits Act by virtue of sub-paragraph (1)(a) only if and for so long as the person in respect of whose care the allowance has been claimed remains in receipt of attendance allowance, or the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the Contributions and Benefits Act.

    Severe disability premium
         6.  - (1) The condition is that the claimant is a severely disabled person.

        (2) For the purposes of sub-paragraph (1), a claimant shall be treated as being a severely disabled person if, and only if - 

      (a) in the case of a single claimant or a claimant who is treated as having no partner in consequence of sub-paragraph (3) - 

        (i) he is in receipt of attendance allowance, or the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the Contributions and Benefits Act; and

        (ii) subject to sub-paragraph (6), he has no non-dependants aged 18 or over normally residing with him or with whom he is normally residing; and

        (iii) no person is entitled to, and in receipt of, a carer's allowance in respect of caring for him;

      (b) in the case of a claimant who has a partner - 

        (i) the claimant is in receipt of attendance allowance, or the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the Contributions and Benefits Act; and

        (ii) his partner is also in receipt of such an allowance or, if the claimant is a member of a polygamous marriage one or more of the other members of the marriage are in receipt of such an allowance; and

        (iii) subject to sub-paragraph (6), the claimant has no non-dependants aged 18 or over normally residing with him or with whom he is normally residing,

      and either a person is entitled to and in receipt of a carer's allowance in respect of caring for only one of the couple or, if he is a member of a polygamous marriage, for one or more but not all the members of the marriage, or as the case may be, no person is entitled to and in receipt of such an allowance in respect of caring for either member of a couple or any of the members of the marriage.

        (3) Where a claimant has a partner who does not satisfy the condition in sub-paragraph (2)(b)(ii), and that partner is blind or is treated as blind within the meaning of sub-paragraph (4), that partner shall be treated for the purposes of sub-paragraph (2) as if he were not a partner of the claimant.

        (4) For the purposes of sub-paragraph (3), a person is blind if he is registered in a register compiled by a local authority under section 29 of the National Assistance Act 1948[17] (welfare services) or, in Scotland, has been certified as blind and in consequence he is registered in a register maintained by or on behalf of a regional or islands council.

        (5) For the purposes of sub-paragraph (4), a person who has ceased to be registered as blind on regaining his eyesight shall nevertheless be treated as blind and as satisfying the additional condition set out in that sub-paragraph for a period of 28 weeks following the date on which he ceased to be so registered.

        (6) For the purposes of sub-paragraph (2)(a)(ii) and (2)(b)(iii), no account shall be taken of - 

      (a) a person receiving attendance allowance, or the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the Contributions and Benefits Act; or

      (b) a person who is blind or is treated as blind within the meaning of sub-paragraphs (4) and (5).

        (7) For the purposes of sub-paragraph (2)(b), a person shall be treated - 

      (a) as being in receipt of attendance allowance, or the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the Contributions and Benefits Act, if he would, but for his being a patient for a period exceeding 28 days, be so in receipt;

      (b) as being entitled to and in receipt of a carer's allowance if he would, but for the person for whom he was caring being a patient in hospital for a period exceeding 28 days, be so entitled and in receipt.

        (8) For the purposes of sub-paragraph (2)(a)(iii) and (2)(b) - 

      (a) no account shall be taken of an award of a carer's allowance to the extent that payment of such an award is backdated for a period before the date on which the award is made; and

      (b) references to a person being in receipt of a carer's allowance shall include references to a person who would have been in receipt of that allowance but for the application of a restriction under section 7 of the Social Security Fraud Act 2001[18] (loss of benefit).

    Enhanced disability premium
         7. The condition is that the care component of disability living allowance is, or would, but for a suspension of benefit in accordance with regulations under section 113(2) of the Contributions and Benefits Act or but for an abatement as a consequence of hospitalisation, be payable at the highest rate prescribed under section 72(3) of the Contributions and Benefits Act in respect of a child or young person who is a member of the claimant's family.

    Disabled child premium
         8. The condition is that a child or young person for whom the claimant or a partner of his is responsible and who is a member of the claimant's household - 

      (a) is in receipt of disability living allowance or is no longer in receipt of such allowance because he is a patient, provided that the child or young person continues to be a member of the family; or

      (b) is blind within the meaning of paragraph 6(4) or is treated as blind in accordance with paragraph 6(5).

    Carer premium
         9.  - (1) The condition is that the claimant or his partner is, or both of them are, entitled to a carer's allowance.

        (2) Where a carer premium has been awarded but - 

      (a) the person in respect of whose care the carer's allowance has been awarded dies; or

      (b) the person in respect of whom the premium was awarded ceases to be entitled, or ceases to be treated as entitled, to a carer's allowance,

    this paragraph shall be treated as satisfied for a period of eight weeks from the relevant date specified in sub-paragraph (3).

        (3) The relevant date for the purposes of sub-paragraph (2) is - 

      (a) the Sunday following the death of the person in respect of whose care the carer's allowance has been awarded (or beginning with the date of death if the date occurred on a Sunday);

      (b) where head (a) above does not apply, the date on which that person who was entitled to a carer's allowance ceases to be entitled to it.

        (4) For the purposes of this paragraph, a person shall be treated as being entitled to and in receipt of a carer's allowance for any period not covered by an award but in respect of which a payment is made in lieu of an award.

    Persons in receipt of concessionary payments
         10. For the purpose of determining whether a premium is applicable to a person under paragraphs 6 to 9, any concessionary payment made to compensate that person for the non-payment of any benefit mentioned in those paragraphs shall be treated as if it were a payment of that benefit.

    Person in receipt of benefit
         11. For the purposes of this Part of this Schedule, a person shall be regarded as being in receipt of any benefit if, and only if, it is paid in respect of him and shall be so regarded only for any period in respect of which that benefit is paid.



    PART IV

    Amounts of premiums specified in Part III

    Premium Amount
         12.  - 

        (1) Severe disability premium - 

        (1)

    (a) where the claimant satisfies the condition in paragraph 6(2)(a);

    (a) £42.95;

    (b) where the claimant satisfies the condition in paragraph 6(2)(b) - 

      (i) in a case where there is someone in receipt of a carer's allowance or if he or any partner satisfies that condition only by virtue of paragraph 6(7);

    (b)

      (i) £42.95;

    (ii) in a case where there is no-one in receipt of such an allowance.

    (ii) £85.90.

        (2) Enhanced disability premium.

        (2) £16.60 in respect of each child or young person in respect of whom the conditions specified in paragraph 7 are satisfied.

        (3) Disabled child premium.

        (3) £41.30 in respect of each child or young person in respect of whom the condition specified in paragraph 8 is satisfied.

        (4) Carer premium.

        (4) £25.10 in respect of each person who satisfies the condition specified in paragraph 9.

    ".


Amendment of regulation 19
     7. In regulation 19 (calculation of income and capital of members of claimant's family) - 

Income and capital
    
8. For regulations 21 to 45, substitute - 

Provisions which do not apply
    
9. The following provisions of the Housing Benefit Regulations shall not apply to a claimant who has attained, or whose partner has attained, the qualifying age for state pension credit - 

Continuing payments where state pension credit claimed
    
10. After regulation 62A[75], insert - 

Amendment of regulation 63
    
11. In regulation 63 (non-dependant deductions) - 



PART 3

Council Tax Benefit

Council Tax Benefit Regulations
    
12.  - (1) The Council Tax Benefit Regulations shall have effect, except where paragraph (2) applies, in relation to any person who has attained the qualifying age for state pension credit subject to the modifications set out in this Part, Part 4 and Schedule 2.

    (2) This paragraph applies if the claimant or, if the claimant has a partner, his partner, is a person on income support or on an income-based jobseeker's allowance within the meaning of the Council Tax Benefit Regulations[
76].

    (3) In this Part, references to regulations and Schedules are, unless the context otherwise requires, references to regulations of and Schedules to the Council Tax Benefit Regulations.

    (4) Reference in any provision which has effect in accordance with this Part to a provision of the Housing Benefit Regulations is to the provision in those Regulations as modified by Part 2 of these Regulations.

Interpretation
     13.  - (1) In regulation 2 (interpretation), in paragraph (1) - 

    (a) for the definition of "assessment period", substitute - 

      " "assessment period" means the period determined - 

      (a) in relation to the earnings of a self-employed earner, in accordance with regulation 24 for the purpose of calculating the weekly earnings of the claimant; or

      (b) in relation to any other income, in accordance with regulation 20 for the purpose of calculating the weekly income of the claimant;";

    (b) for the definition of "the benefit Acts", substitute - 

    (c) after the definition of "benefit week", insert - 

      " "board and lodging accommodation" means accommodation provided to a person or, if he is a member of a family, to him or any other member of his family, for a charge which is inclusive of the provision of that accommodation and at least some cooked or prepared meals which both are cooked or prepared (by a person other than the person to whom the accommodation is provided or a member of his family) and are consumed in that accommodation or associated premises;

      "care home" has the meaning it has for the purposes of the Care Standards Act 2000[78] by virtue of section 3 of that Act and in Scotland means a care home service;

      "care home service" has the meaning assigned to it by section 2(3) of the Regulation of Care (Scotland) Act 2001[79];";

    (d) after the definition of "gateway office"[80], insert - 

      " "guarantee credit" is to be construed in accordance with sections 1 and 2 of the State Pension Credit Act;";

    (e) after the definition of "person on income support", insert - 

      " "person on state pension credit" means a person in receipt of state pension credit;";

    (f) after the definition of "retirement annuity contract" insert - 

      " "savings credit" shall be construed in accordance with sections 1 and 3 of the State Pension Credit Act;";

    (g) after the definition of "self-employment route" insert - 

      " "the State Pension Credit Act" means the State Pension Credit Act 2002;".

    (2) In that regulation, after paragraph (4A)[81], insert - 

        " (4B) In these Regulations, references to any person in receipt of a guarantee credit, a savings credit or state pension credit includes a reference to a person who would be in receipt thereof but for regulation 13 of the State Pension Credit Regulations 2002[82] (small amounts of state pension credit).".

Persons from abroad
     14. In regulation 4A (persons from abroad), in paragraph (5), for sub-paragraph (d), substitute - 

Applicable amounts
    
15.  - (1) For regulations 8 (applicable amounts), 9 (polygamous marriages) and 10 (patients), substitute - 

    (2) After Schedule 1, insert - 



    " SCHEDULE 1A
    Regulation 8


    APPLICABLE AMOUNTS FOR THOSE WHO HAVE ATTAINED OR WHOSE PARTNER HAS ATTAINED THE QUALIFYING AGE FOR STATE PENSION CREDIT




    PART I

    Personal Allowances

         1. The amount specified in column (2) below in respect of each person or couple specified in column (1) shall be the amount specified for the purposes of regulation 8 - 

    (1) Person, couple or polygamous marriage (2) Amount


        (1) Single claimant - 

      (a) aged under 65;

      (b) aged 65 or over.



        (1)  - 

      (a) £102.10;

      (b) £116.90.



        (2) Couple - 

      (a) both members aged under 65;

      (b) one member or both members aged 65 or over.



        (2)  - 

      (a) £155.80;

      (b) £175.00.



        (3) If the claimant is a member of a polygamous marriage and none of the members of the marriage have attained the age of 65 - 

      (a) for the claimant and the other party to the marriage;

      (b) for each additional spouse who is a member of the same household as the claimant.



        (3)  - 

      (a) £155.80;

      (b) £53.70.



        (4) If the claimant is a member of a polygamous marriage and one or more members of the marriage are aged 65 or over - 

      (a) for the claimant and the other party to the marriage;

      (b) for each additional spouse who is a member of the same household as the claimant.



        (4)  - 

      (a) £175.00;

      (b) £58.10.


         2.  - (1) The amounts specified in column (2) below in respect of each person specified in column (1) shall, for the relevant period specified in column (1), be the amounts specified for the purposes of regulation 8(1)(b) - 

    (1) Child or young person (2) Amount


        Person in respect of the period - 

      (a) beginning on that person's date of birth and ending on the day preceding the first Monday in September following that person's sixteenth birthday;

    £38.50;


        

      (b) beginning on the first Monday in September following that person's sixteenth birthday and ending on the day preceding that person's nineteenth birthday.

    £38.50.



        (2) In column (1) of the Table above, "the first Monday in September" means the Monday which first occurs in the month of September in any year.



    PART II

    Family Premium

         3.  - (1) The amount for the purposes of regulation 8(1)(c) and (d) in respect of a family of which at least one member is a child or young person shall be £15.75.

        (2) The amount specified in sub-paragraph (1) shall be increased by £10.45 where at least one child is under the age of one year and for the purposes of this sub-paragraph where that child's first birthday does not fall on a Monday he shall be treated as under the age of one year until the first Monday after his first birthday.



    PART III

    Premiums

         4. The premiums specified in Part IV shall, for the purposes of regulation 8(1)(e), be applicable to a claimant who satisfies the condition specified in this Part in respect of that premium.

         5.  - (1) Subject to sub-paragraph (2), for the purposes of this Part of this Schedule, once a premium is applicable to a claimant under this Part, a person shall be treated as being in receipt of any benefit for - 

      (a) in the case of a benefit to which the Social Security (Overlapping Benefits) Regulations 1979[84] applies, any period during which, apart from the provisions of those Regulations, he would be in receipt of that benefit; and

      (b) any period spent by a person in undertaking a course of training or instruction provided or approved by the Secretary of State under section 2 of the Employment and Training Act 1973[85], or by Scottish Enterprise or Highlands and Islands Enterprise under section 2 of the Enterprise and New Towns (Scotland) Act 1990[86] or for any period during which he is in receipt of a training allowance.

        (2) For the purposes of the carer premium under paragraph 9, a person shall be treated as being in receipt of a carer's allowance under section 70 of the Contributions and Benefits Act 1992 by virtue of sub-paragraph (1)(a) only if and for so long as the person in respect of whose care the allowance has been claimed remains in receipt of attendance allowance, or the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the Contributions and Benefits Act 1992.

    Severe disability premium
         6.  - (1) The condition is that the claimant is a severely disabled person.

        (2) For the purposes of sub-paragraph (1), a claimant shall be treated as being a severely disabled person if, and only if - 

      (a) in the case of a single claimant or a claimant who is treated as having no partner in consequence of sub-paragraph (3) - 

        (i) he is in receipt of attendance allowance, or the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the Contributions and Benefits Act 1992; and

        (ii) subject to sub-paragraph (6), he has no non-dependants aged 18 or over normally residing with him or with whom he is normally residing, and

        (iii) no person is entitled to, and in receipt of, a carer's allowance in respect of caring for him;

      (b) in the case of a claimant who has a partner - 

        (i) the claimant is in receipt of attendance allowance, or the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the Contributions and Benefits Act 1992; and

        (ii) his partner is also in receipt of such an allowance or, if the claimant is a member of a polygamous marriage one or more of the other members of the marriage are in receipt of such an allowance; and

        (iii) subject to sub-paragraph (6), the claimant has no non-dependants aged 18 or over normally residing with him or with whom he is normally residing,

      and either a person is entitled to and in receipt of a carer's allowance in respect of caring for only one of the couple or, if he is a member of a polygamous marriage, for one or more but not all the members of the marriage, or as the case may be, no person is entitled to and in receipt of such an allowance in respect of caring for either member of a couple or any of the members of the marriage.

        (3) Where a claimant has a partner who does not satisfy the condition in sub-paragraph (2)(b)(ii), and that partner is blind or is treated as blind within the meaning of sub-paragraph (4), that partner shall be treated for the purposes of sub-paragraph (2) as if he were not a partner of the claimant.

        (4) For the purposes of sub-paragraph (3), a person is blind if he is registered in a register compiled by a local authority under section 29 of the National Assistance Act 1948[87] (welfare services) or, in Scotland, has been certified as blind and in consequence he is registered in a register maintained by or on behalf of a regional or islands council.

        (5) For the purposes of sub-paragraph (4), a person who has ceased to be registered as blind on regaining his eyesight shall nevertheless be treated as blind and as satisfying the additional condition set out in that sub-paragraph for a period of 28 weeks following the date on which he ceased to be so registered.

        (6) For the purposes of sub-paragraph (2)(a)(ii) and (2)(b)(iii), no account shall be taken of - 

      (a) a person receiving attendance allowance, or the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the Contributions and Benefits Act 1992; or

      (b) a person who is blind or is treated as blind within the meaning of sub-paragraphs (4) and (5).

        (7) For the purposes of sub-paragraph (2)(b), a person shall be treated - 

      (a) as being in receipt of attendance allowance, or the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the Contributions and Benefits Act 1992, if he would, but for his being a patient for a period exceeding 28 days, be so in receipt;

      (b) as being entitled to and in receipt of a carer's allowance if he would, but for the person for whom he was caring being a patient in hospital for a period exceeding 28 days, be so entitled and in receipt.

        (8) For the purposes of sub-paragraph (2)(a)(iii) and (2)(b) - 

      (a) no account shall be taken of an award of a carer's allowance to the extent that payment of such an award is back-dated for a period before the date on which the award is made; and

      (b) references to a person being in receipt of a carer's allowance shall include references to a person who would have been in receipt of that allowance but for the application of a restriction under section 7 of the Social Security Fraud Act 2001[88] (loss of benefit).

    Enhanced disability premium
         7. The condition is that the care component of disability living allowance is, or would, but for a suspension of benefit in accordance with regulations under section 113(2) of the Contributions and Benefits Act 1992 or but for an abatement as a consequence of hospitalisation, be payable at the highest rate prescribed under section 72(3) of the Contributions and Benefits Act 1992 in respect of a child or young person who is a member of the claimant's family.

    Disabled child premium
         8. The condition is that a child or young person for whom the claimant or a partner of his is responsible and who is a member of the claimant's household - 

      (a) is in receipt of disability living allowance or is no longer in receipt of such allowance because he is a patient, provided that the child or young person continues to be a member of the family; or

      (b) is blind within the meaning of paragraph 6(4) or is treated as blind in accordance with paragraph 6(5).

    Carer premium
         9.  - (1) The condition is that the claimant or his partner is, or both of them are, entitled to a carer's allowance.

        (2) Where a carer premium has been awarded but - 

      (a) the person in respect of whose care the carer's allowance has been awarded dies; or

      (b) the person in respect of whom the premium was awarded ceases to be entitled, or ceases to be treated as entitled, to a carer's allowance,

    this paragraph shall be treated as satisfied for a period of eight weeks from the relevant date specified in sub-paragraph (3).

        (3) The relevant date for the purposes of sub-paragraph (2) is - 

      (a) the Sunday following the death of the person in respect of whose care the carer's allowance has been awarded (or beginning with the date of death if the date occurred on a Sunday);

      (b) where head (a) above does not apply, the date on which that person who was entitled to a carer's allowance ceases to be entitled to it.

        (4) For the purposes of this paragraph, a person shall be treated as being entitled to and in receipt of a carer's allowance for any period not covered by an award but in respect of which a payment is made in lieu of an award.

    Persons in receipt of concessionary payments
         10. For the purpose of determining whether a premium is applicable to a person under paragraphs 6 to 9, any concessionary payment made to compensate that person for the non-payment of any benefit mentioned in those paragraphs shall be treated as if it were a payment of that benefit.

    Person in receipt of benefit
         11. For the purposes of this Part of this Schedule, a person shall be regarded as being in receipt of any benefit if, and only if, it is paid in respect of him and shall be so regarded only for any period in respect of which that benefit is paid.



    PART IV

    Amounts of premiums specified in Part III

    Premium Amount
         12.  - 

        (1) Severe disability premium - 

      (a) where the claimant satisfies the condition in paragraph 6(2)(a);



        (1)  - 

      (a) £42.95;



        

      (b) where the claimant satisfies the condition in paragraph 6(2)(b) - 

        (i) in a case where there is someone in receipt of a carer's allowance or if he or any partner satisfies that condition only by virtue of paragraph 6(7);



        

      (b)

        (i) £42.95;



        

          

        (ii) in a case where there is no-one in receipt of such an allowance.



        

        (ii) £85.90.



        (2) Enhanced disability premium.



        (2) £16.60 in respect of each child or young person in respect of whom the conditions specified in paragraph 7 are satisfied.



        (3) Disabled child premium.



        (3) £41.30 in respect of each child or young person in respect of whom the condition specified in paragraph 8 is satisfied.



        (4) Carer premium.



        (4) £25.10 in respect of each person who satisfies the condition specified in paragraph 9.

    ".


Amendment of regulation 11
     16.  - (1) In regulation 11 (calculation of income and capital of members of claimant's family) - 

Income and capital
    
17. For regulations 13 to 37, substitute - 

    " Chapter II: Income and capital

    Calculation of income and capital
        
    13. The income and capital of - 

      (a) the claimant; and

      (b) any partner of the claimant,

    shall be calculated in accordance with the rules set out in this Chapter; and any reference in this Part to the claimant shall apply equally to any partner of the claimant.

    Claimant in receipt of guarantee credit
        
    14. In the case of a claimant who is in receipt, or whose partner is in receipt, of a guarantee credit, the whole of his capital and income shall be disregarded.

    Calculation of claimant's income in savings credit only cases
        
    15.  - (1) In determining the income and capital of a claimant who has, or whose partner has, an award of state pension credit comprising only the savings credit, the relevant authority shall, subject to the following provisions of this regulation, use the calculation or estimate of the claimant's or as the case may be, the claimant's partner's income and capital made by the Secretary of State for the purpose of determining that award.

        (2) The Secretary of State shall provide the relevant authority with details of the calculation or estimate - 

        (3) The details provided by the Secretary of State shall include the amount taken into account in that determination in respect of the net income of the person claiming state pension credit.

        (4) The relevant authority shall modify the amount of the net income provided by the Secretary of State only in so far as necessary to take into account - 

        (5) Regulations 17 to 36 shall not apply to the amount of the net income to be taken into account by the local authority under paragraph (1), but shall apply (so far as relevant) for the purpose of determining any modifications which fall to be made to that amount under paragraph (4).

        (6) The relevant authority shall for the purpose of determining the claimant's entitlement to council tax benefit use, except where paragraphs (7) and (8) apply, the calculation of the claimant's capital made by the Secretary of State, and shall in particular apply the provisions of regulation 30 if the claimant's capital is calculated as being in excess of £16,000.

        (7) If paragraph (8) applies, the relevant authority shall calculate the claimant's capital in accordance with regulations 30 to 36 below.

        (8) This paragraph applies if - 

      (a) the Secretary of State notifies the relevant authority that the claimant's capital has been determined as being £16,000 or less;

      (b) subsequent to that determination, the claimant's capital rises to more than £16, 000; and

      (c) the increase occurs whilst there is in force an assessed income period within the meaning of sections 6 and 9 of the State Pension Credit Act.

    Persons who have attained the qualifying age for state pension credit
         16. In the case of a claimant who has attained or whose partner has attained the qualifying age for state pension credit and neither regulation 14 nor 15 applies in his case, his income and capital shall be calculated or estimated by the relevant authority in accordance with regulations 17 to 36 below.

    Meaning of "income"
        
    17.  - (1) For the purposes of these Regulations, "income" means income of any of the following descriptions - 

      (a) earnings;

      (b) working tax credit and child tax credit;

      (c) retirement pension income within the meaning of the State Pension Credit Act[
      90];

      (d) income from annuity contracts (other than retirement pension income);

      (e) a war disablement pension or war widow's or widower's pension;

      (f) a foreign war disablement pension or war widow's or widower's pension;

      (g) income from capital other than capital disregarded under Schedule 5ZA;

      (h) social security benefits, other than retirement pension income or any of the following benefits - 

        (i) disability living allowance;

        (ii) attendance allowance payable under section 64 of the Contributions and Benefits Act 1992;

        (iii) an increase of disablement pension under section 104 or 105 of that Act;

        (iv) a payment under regulations made in exercise of the power conferred by paragraph 7(2)(b) of Part II of Schedule 8 to that Act[91];

        (v) an increase of an allowance payable in respect of constant attendance under paragraph 4 of Part I of Schedule 8 to that Act;

        (vi) any guardian's allowance payable under section 77 of that Act;

        (vii) any increase for a dependant, other than the claimant's partner, payable in accordance with Part IV of that Act;

        (viii) any social fund payment made under Part VIII of that Act;

        (ix) Christmas bonus payable under Part X of that Act;

        (x) housing benefit;

        (xi) council tax benefit;

        (xii) bereavement payment[92];

        (xiii) statutory sick pay;

        (xiv) statutory maternity pay;

        (xv) statutory paternity pay payable under Part 12ZA of the Contributions and Benefits Act 1992[93];

        (xvi) statutory adoption pay payable under Part 12ZB of the Contributions and Benefits Act 1992[94];

        (xvii) any benefit similar to those mentioned in the preceding provisions of this paragraph payable under legislation having effect in Northern Ireland;

      (i) all foreign social security benefits which are similar to the social security benefits prescribed above;

      (j) any payment made under article 37 of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 1983[95];

      (k) a pension paid to victims of National Socialist persecution under any special provision made by the law of the Federal Republic of Germany, or any part of it, or of the Republic of Austria;

      (l) payments under a scheme made under the Pneumoconiosis etc. (Worker's Compensation) Act 1979[96];

      (m) payments made towards the maintenance of the claimant by his spouse or former spouse or towards the maintenance of the claimant's partner by his spouse or former spouse, including payments made - 

        (i) under a court order;

        (ii) under an agreement for maintenance; or

        (iii) voluntarily;

      (n) payments due from any person in respect of board and lodging accommodation provided by the claimant;

      (o) payments consisting of royalties or other sums received as a consideration for the use of, or the right to use, any copyright, patent or trade mark;

      (p) any payment made to the claimant in respect of any book registered under the Public Lending Right Scheme 1982[97];

      (q) any payment, other than a payment ordered by a court or made in settlement of a claim, made by or on behalf of a former employer of a person on account of the early retirement of that person on grounds of ill-health or disability; and

      (r) any sum payable by way of pension out of money provided under the Civil List Act 1837[98], the Civil List Act 1937[99], the Civil List Act 1952[100], the Civil List Act 1972[101] or the Civil List Act 1975[102].

        (2) For the purposes of these Regulations, a claimant's capital, other than capital disregarded under Schedule 5ZA, shall be treated as if it were a weekly income - 

      (a) in the case of a claimant residing permanently in accommodation to which paragraph (5) applies, of £1 for each £500 in excess of £10,000 and £1 for any excess which is not a complete £500;

      (b) in any other case, of £1 for each £500 in excess of £6,000 and £1 for any excess which is not a complete £500.

        (3) Where the payment of any social security benefit prescribed under paragraph (1) is subject to any deduction (other than an adjustment specified in paragraph (4)) the amount to be taken into account under paragraph (1) shall be the amount before the deduction is made.

        (4) The adjustments specified in this paragraph are those made in accordance with - 

      (a) the Social Security (Overlapping Benefits) Regulations 1979[103];

      (b) the Social Security (Hospital In-Patients) Regulations 1975[104];

      (c) section 30DD or section 30E of the Contributions and Benefits Act 1992[105] (reductions in incapacity benefit in respect of pensions and councillor's allowances).

        (5) This paragraph applies to accommodation provided - 

      (a) in a care home;

      (b) in an establishment run by the Abbeyfield Society (including all bodies corporate or incorporate which are affiliated to the Society);

      (c) under section 3 of, and Part II of the Schedule to, the Polish Resettlement Act 1947[106] (provision of accommodation) where the claimant requires personal care;

      (d) under sections 21 to 24 of the National Assistance Act 1948[107] (provision of accommodation), or, in Scotland, under section 13B or 59 of the Social Work (Scotland) Act 1968[108] or section 7 of the Mental Health (Scotland) Act 1984[109] (functions of local authorities) where - 

        (i) the home in which the accommodation is provided is either owned and managed or owned or managed by a local authority; and

        (ii) the claimant occupies the accommodation other than on a temporary basis.

        (6) For the purposes of paragraph (5), a person shall be treated as residing permanently in the accommodation - 

      (a) except where sub-paragraph (b) applies, notwithstanding that he is absent from it for a period not exceeding 52 weeks;

      (b) if it is accommodation to which paragraph (5)(c) applies - 

        (i) notwithstanding that he is absent from it for a period not exceeding 13 weeks; and

        (ii) if he, with the agreement of the manager of the home, intends to return to it in due course.

    Calculation of income on a weekly basis
         18.  - (1) Subject to regulation 21 (disregard of changes in tax, contributions etc.), for the purposes of section 131(5) of the Contributions and Benefits Act 1992 (conditions for entitlement to council tax benefit) the income of a claimant who has reached the qualifying age for state pension credit shall be calculated on a weekly basis - 

      (a) by calculating or estimating the amount which is likely to be his average weekly income in accordance with this Chapter;

      (b) by adding to that amount the weekly income calculated under regulation 17(2);

      (c) by then deducting any relevant child care charges to which regulation 19 (treatment of child care charges) applies from any earnings which form part of the average weekly income or, in a case where the conditions in paragraph (2) are met, from those earnings plus whichever credit specified in sub-paragraph (b) of that paragraph is appropriate, up to a maximum deduction in respect of the claimant's family of whichever of the sums specified in paragraph (3) applies in his case.

        (2) The conditions of this paragraph are that - 

      (a) the claimant's earnings which form part of his average weekly income are less than the lower of either his relevant child care charges or whichever of the deductions specified in paragraph (3) otherwise applies in his case; and

      (b) that claimant or, if he is a member of a couple either the claimant or his partner, is in receipt of working tax credit or child tax credit.

        (3) The maximum deduction to which paragraph (1)(c) above refers shall be - 

      (a) where the claimant's family includes only one child in respect of whom relevant child care charges are paid, £94.50 per week;

      (b) where the claimant's family includes more than one child in respect of whom relevant child care charges are paid, £140 per week.

    Treatment of child care charges
         19.  - (1) This regulation applies where a claimant is incurring relevant child care charges and - 

      (a) is a lone parent and is engaged in remunerative work;

      (b) is a member of a couple both of whom are engaged in remunerative work; or

      (c) is a member of a couple where one member is engaged in remunerative work and the other member is incapacitated.

        (2) Relevant child care charges are those charges for care to which paragraphs (3) and (4) apply, and shall be estimated on a weekly basis in accordance with paragraph (7).

        (3) The charges are paid by the claimant for care which is provided - 

      (a) in the case of any child of the claimant's family who is not disabled, in respect of the period beginning on that child's date of birth and ending on the day preceding the first Monday in September following that child's fifteenth birthday; or

      (b) in the case of any child of the claimant's family who is disabled, in respect of the period beginning on that person's date of birth and ending on the day preceding the first Monday in September following that person's sixteenth birthday.

        (4) The charges are paid for care which is provided by one or more of the care providers listed in paragraph (5) and are not paid - 

      (a) in respect of the child's compulsory education; or

      (b) by a claimant to a partner or by a partner to a claimant in respect of any child for whom either or any of them is responsible in accordance with regulation 6 (circumstances in which a person is treated as responsible or not responsible for another).

        (5) The care to which paragraph (4) refers may be provided - 

      (a) by persons registered under section 71 of the Children Act 1989[110] (registration of child minders and persons providing day care for young children);

      (b) out of school hours, by a school on school premises or by a local authority - 

        (i) for children who are not disabled in respect of the period beginning on their eighth birthday and ending on the day preceding the first Monday in September following their fifteenth birthday, or

        (ii) for children who are disabled in respect of the period beginning on their eighth birthday and ending on the day preceding the first Monday in September following their sixteenth birthday;

      (c) by a child care scheme operating on Crown property where registration under section 71 of the Children Act 1989 is not required;

      (d) in schools or establishments which are exempt from registration under section 71 of the Children Act 1989 by virtue of section 71(16) of, and paragraph 3 or 4 of Schedule 9 to, that Act;

      (e) by a child care provider approved by an organisation accredited by the Secretary of State under the scheme established by the Tax Credit (New Category of Child Care Provider) Regulations 1999[111];

      (f) by persons registered under Part XA of the Children Act 1989[112];

      (g) in schools or establishments which are exempted from registration under Part XA of the Children Act 1989 by virtue of paragraph 1 or 2 of Schedule 9A to that Act[113]; or

      (h) by - 

        (i) persons registered under section 7(1) of the Regulation of Care (Scotland) Act 2001[114], or

        (ii) local authorities registered under section 33(1) of that Act,

      where the care provided is childminding or day care of children[115] within the meaning of that Act.

        (6) In paragraphs (3) and (5)(b), "the first Monday in September" means the Monday which first occurs in the month of September in any year.

        (7) Relevant child care charges shall be estimated over such period, not exceeding a year, as is appropriate in order that the average weekly charge may be estimated accurately having regard to information as to the amount of that charge provided by the child minder or person providing the care.

        (8) For the purposes of paragraph (1)(c), the other member of a couple is to be treated as incapacitated where - 

      (a) he is aged not less than 80;

      (b) he is aged less than 80 and - 

        (i) the additional conditions specified in paragraph 13 of Schedule 1 are treated as applying in his case; and

        (ii) he satisfies those conditions or would satisfy them but for his being treated as capable of work by virtue of a determination made in accordance with regulations made under section 171E of the Contributions and Benefits Act[116];

      (c) the claimant (within the meaning of regulation 2(1)) is, or is treated as, incapable of work and has been so incapable, or has been so treated as incapable, of work in accordance with the provisions of, and regulations made under, Part XIIA of the Contributions and Benefits Act 1992 (incapacity for work) for a continuous period of not less than 196 days; and for this purpose any two or more separate periods separated by a break of not more than 56 days shall be treated as one continuous period;

      (d) there is payable in respect of him one or more of the following - 

        (i) long-term incapacity benefit or short-term incapacity benefit at the higher rate specified in Schedule 4 to the Contributions and Benefits Act 1992;

        (ii) attendance allowance under section 64 of that Act;

        (iii) severe disablement allowance under section 68 of that Act;

        (iv) disability living allowance under section 71 of that Act;

        (v) increase of disablement pension under section 104 of that Act;

        (vi) a pension increase under a war pension scheme or an industrial injuries scheme which is analogous to an allowance or increase of disablement pension under head (ii), (iv) or (v) above;

      (e) a pension or allowance to which head (ii), (iv), (v) or (vi) of sub-paragraph (d) above refers was payable on account of his incapacity but has ceased to be payable in consequence of his becoming a patient within the meaning of regulation 8(5);

      (f) sub-paragraph (c) or (d) would apply to him if the legislative provisions referred to in those sub-paragraphs were provisions under any corresponding enactment having effect in Northern Ireland; or

      (g) he has an invalid carriage or other vehicle provided to him by the Secretary of State under section 5(2)(a) of, and Schedule 2 to, the National Health Service Act 1977[117] or under section 46 of the National Health Service (Scotland) Act 1978[118] or provided by the Department of Health and Social Services for Northern Ireland under Article 30(1) of the Health and Personal Social Services (Northern Ireland) Order 1972[119].

        (9) For the purposes of paragraph (8), once paragraph (8)(c) applies to the claimant, if he then ceases, for a period of 56 days or less, to be incapable, or to be treated as incapable, of work, that paragraph shall, on his again becoming so incapable, or so treated as incapable, of work at the end of that period, immediately thereafter apply to him for so long as he remains incapable, or is treated as remaining incapable, of work.

        (10) For the purposes of paragraphs (3) and (5)(b), a person is disabled if he is a person - 

      (a) in respect of whom disability living allowance is payable, or has ceased to be payable solely because he is a patient;

      (b) who is registered as blind in a register compiled under section 29 of the National Assistance Act 1948[120] (welfare services) or, in Scotland, has been certified as blind and in consequence he is registered as blind in a register maintained by or on behalf of a regional or islands council; or

      (c) who ceased to be registered as blind in such a register within the 28 weeks immediately preceding the date of claim.

        (11) For the purposes of paragraph (1), a woman on maternity leave shall be treated as if she is engaged in remunerative work for the period specified in paragraph (12) ("the relevant period") provided that - 

      (a) in the week before the period of maternity leave began she was in remunerative work;

      (b) the claimant incurred relevant child care charges within the meaning of paragraph (2) in that week; and

      (c) she is entitled to either statutory maternity pay under section 164 of the Contributions and Benefits Act 1992 or maternity allowance under section 35 of that Act.

        (12) The relevant period shall begin on the day on which the woman's maternity leave commences and shall end on - 

      (a) the date that leave ends;

      (b) if no child care element of working tax credit is in payment on the date that entitlement to maternity allowance or statutory maternity pay ends, the date that entitlement ends; or

      (c) if a child care element of working tax credit is in payment on the date that entitlement to maternity allowance or statutory maternity pay ends, the date that entitlement to that award of the child care element of working tax credit ends,

    whichever shall occur first.

        (13) In paragraph (12), "child care element" of working tax credit means the element of working tax credit prescribed under section 12 of the Tax Credits Act 2002[121] (child care element).

        (14) Where paragraph (11) applies to a woman on maternity leave any child care charges in respect of the child to whom the maternity leave relates shall not be treated as relevant child care charges for the purposes of this regulation and regulation 18.

    Calculation of weekly income
         20.  - (1) Except where paragraphs (2) and (4) apply, for the purposes of calculating the weekly income of the claimant, where the period in respect of which a payment is made - 

      (a) does not exceed a week, the whole of that payment shall be included in the claimant's weekly income;

      (b) exceeds a week, the amount to be included in the claimant's weekly income shall be determined - 

        (i) in a case where that period is a month, by multiplying the amount of the payment by 12 and dividing the product by 52;

        (ii) in a case where that period is three months, by multiplying the amount of the payment by 4 and dividing the product by 52;

        (iii) in a case where that period is a year, by dividing the amount of the payment by 52;

        (iv) in any other case, by multiplying the amount of the payment by 7 and dividing the product by the number of days in the period in respect of which it is made.

        (2) Where - 

      (a) the claimant's regular pattern of work is such that he does not work the same hours every week; or

      (b) the amount of the claimant's income fluctuates and has changed more than once,

    the weekly amount of that claimant's income shall be determined - 

        (i) if, in a case to which sub-paragraph (a) applies, there is a recognised cycle of work, by reference to his average weekly income over the period of the complete cycle (including, where the cycle involves periods in which the claimant does no work, those periods but disregarding any other absences); or

        (ii) in any other case, on the basis of - 

          (aa) the last two payments if those payments are one month or more apart;

          (bb) the last four payments if the last two payments are less than one month apart; or

          (cc) calculating or estimating such other payments as may, in the particular circumstances of the case, enable the claimant's average weekly income to be determined more accurately.

        (3) For the purposes of paragraph (2)(b) the last payments are the last payments before the date the claim was made or treated as made or, if there is a subsequent supersession under paragraph 4 of Schedule 7 to the Child Support, Pensions and Social Security Act 2000[122], the last payments before the date of the supersession.

        (4) If a claimant is entitled to receive a payment to which paragraph (5) applies, the amount of that payment shall be treated as if made in respect of a period of a year.

        (5) This paragraph applies to - 

      (a) royalties or other sums payable as a consideration for the use of, or the right to use, any copyright, patent or trade mark;

      (b) any payment made to the claimant in respect of any book registered under the Public Lending Right Scheme 1982[123]; and

      (c) any payment which is made on an occasional basis.

        (6) The period under which any benefit under the benefit Acts is to be taken into account shall be the period in respect of which that benefit is payable.

        (7) Where payments are made in a currency other than Sterling, the value of the payment shall be determined by taking the Sterling equivalent on the date the payment is made.

        (8) The sums specified in Schedule 3A shall be disregarded in calculating - 

      (a) the claimant's earnings; and

      (b) any amount to which paragraph (5) applies if the claimant or his partner is the first owner of the copyright, patent or trade mark, or the author of the book registered under the Public Lending Right Scheme 1982.

        (9) Income specified in Schedule 4A is to be disregarded in the calculation of a claimant's income.

        (10) Schedule 5ZA shall have effect so that - 

      (a) the capital specified in Part I shall be disregarded for the purpose of determining a claimant's income; and

      (b) the capital specified in Part II shall be disregarded for the purpose of determining a claimant's income under regulation 17(2).

        (11) In the case of any income taken into account for the purpose of calculating a person's income, there shall be disregarded any amount payable by way of tax.

        (12) An authority may modify this section so as to provide for disregarding, in determining a person's income, the whole or any part of any war widow's or war widower's pension payable to that person or to his partner or to a person to whom he is polygamously married.

    Disregard of changes in tax, contributions etc.
         21. In calculating the claimant's income the appropriate authority may disregard any legislative change - 

      (a) in the basic or other rates of income tax;

      (b) in the amount of any personal tax relief;

      (c) in the rates of social security contributions payable under the Contributions and Benefits Act 1992 or in the lower earnings limit or upper earnings limit for Class 1 contributions under that Act, the lower or upper limits applicable to Class 4 contributions under that Act or the amount specified in section 11(4) of that Act (small earnings exception in relation to Class 2 contributions);

      (d) in the amount of tax payable as a result of an increase in the weekly rate of Category A, B, C or D retirement pension or any addition thereto or any graduated pension payable under the Contributions and Benefits Act 1992; and

      (e) in the maximum rate of child tax credit or working tax credit,

    for a period not exceeding 30 benefit weeks beginning with the benefit week immediately following the date from which the change is effective.

    Employed earners

    Earnings of employed earners
         22.  - (1) Subject to paragraph (2), "earnings" means in the case of employment as an employed earner, any remuneration or profit derived from that employment and includes - 

      (a) any bonus or commission;

      (b) any payment in lieu of remuneration except any periodic sum paid to a claimant on account of the termination of his employment by reason of redundancy;

      (c) any payment in lieu of notice;

      (d) any holiday pay;

      (e) any payment by way of a retainer;

      (f) any payment made by the claimant's employer in respect of expenses not wholly, exclusively and necessarily incurred in the performance of the duties of the employment, including any payment made by the claimant's employer in respect of - 

        (i) travelling expenses incurred by the claimant between his home and place of employment;

        (ii) expenses incurred by the claimant under arrangements made for the care of a member of his family owing to the claimant's absence from home;

      (g) the amount of any payment by way of a non-cash voucher which has been taken into account in the computation of a person's earnings in accordance with Part V of Schedule 3 to the Social Security (Contributions) Regulations 2001[124];

      (h) statutory sick pay and statutory maternity pay payable by the employer under the Contributions and Benefits Act 1992;

      (i) statutory paternity pay payable under Part 12ZA of the Contributions and Benefits Act 1992[125];

      (j) statutory adoption pay payable under Part 12ZB of the Contributions and Benefits Act 1992[126];

      (k) any sums payable under a contract of service - 

        (i) for incapacity for work due to sickness or injury; or

        (ii) by reason of pregnancy or confinement.

        (2) Earnings shall not include - 

      (a) subject to paragraph (3), any payment in kind;

      (b) any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment;

      (c) any occupational pension;

      (d) any lump sum payment made under the Iron and Steel Re-adaptation Benefits Scheme[127];

      (e) any payment of compensation made pursuant to an award by an employment tribunal[128] established under the Employment Tribunals Act 1996[129] in respect of unfair dismissal or unlawful discrimination.

        (3) Paragraph (2)(a) shall not apply in respect of any non-cash voucher referred to in paragraph (1)(g).

    Calculation of net earnings of employed earners
         23.  - (1) For the purposes of regulation 18 (calculation of income on a weekly basis), the earnings of a claimant derived or likely to be derived from employment as an employed earner to be taken into account shall, subject to regulation 20(4) and Schedule 3A, be his net earnings.

        (2) For the purposes of paragraph (1) net earnings shall, except where paragraph (5) applies, be calculated by taking into account the gross earnings of the claimant from that employment over the assessment period, less - 

      (a) any amount deducted from those earnings by way of - 

        (i) income tax;

        (ii) primary Class 1 contributions under the Contributions and Benefits Act 1992;

      (b) one half of any sum paid by the claimant by way of a contribution towards an occupational pension scheme;

      (c) one half of the amount calculated in accordance with paragraph (4) in respect of any qualifying contribution payable by the claimant; and

      (d) where those earnings include a payment which is payable under any enactment having effect in Northern Ireland and which corresponds to statutory sick pay or statutory maternity pay, any amount deducted from those earnings by way of any contributions which are payable under any enactment having effect in Northern Ireland and which correspond to primary Class 1 contributions under the Contributions and Benefits Act 1992.

        (3) In this regulation "qualifying contribution" means any sum which is payable periodically as a contribution towards a personal pension scheme.

        (4) The amount in respect of any qualifying contribution shall be calculated by multiplying the daily amount of the qualifying contribution by the number equal to the number of days in the assessment period; and for the purposes of this regulation the daily amount of the qualifying contribution shall be determined - 

      (a) where the qualifying contribution is payable monthly, by multiplying the amount of the qualifying contribution by 12 and dividing the product by 365;

      (b) in any other case, by dividing the amount of the qualifying contribution by the number equal to the number of days in the period to which the qualifying contribution relates.

        (5) Where the earnings of a claimant are determined under sub-paragraph (b) of paragraph (2) of regulation 20 (calculation of weekly income), his net earnings shall be calculated by taking into account those earnings over the assessment period, less - 

      (a) an amount in respect of income tax equivalent to an amount calculated by applying to those earnings the lower rate or, as the case may be, the lower rate and the basic rate of tax in the year of assessment in which the claim was made less only the personal relief to which the claimant is entitled under sections 257(1), 257A(1) and 259 of the Income and Corporation Taxes Act 1988[130] (personal reliefs) as is appropriate to his circumstances but, if the assessment period is less than a year, the earnings to which the lower rate of tax is to be applied and the amount of the personal relief deductible under this sub-paragraph shall be calculated on a pro-rata basis;

      (b) an amount equivalent to the amount of the primary Class 1 contributions that would be payable by him under the Contributions and Benefits Act 1992 in respect of those earnings if such contributions were payable; and

      (c) one-half of any sum which would be payable by the claimant by way of a contribution towards an occupational or personal pension scheme, if the earnings so estimated were actual earnings.

      Self-employed earners

    Calculations of earnings of self-employed earners
         24.  - (1) Where a claimant's earnings consist of earnings from employment as a self-employed earner, the weekly amount of his earnings shall be determined by reference to his average weekly earnings from that employment - 

      (a) over a period of one year; or

      (b) where the claimant has recently become engaged in that employment or there has been a change which is likely to affect the normal pattern of business, over such other period ("computation period") as may, in the particular case, enable the weekly amount of his earnings to be determined more accurately.

        (2) For the purposes of determining the weekly amount of earnings of a claimant to whom paragraph (1)(b) applies, his earnings over the computation period shall be divided by the number equal to the number of days in that period and multiplying the quotient by 7.

        (3) The period over which the weekly amount of a claimant's earnings is calculated in accordance with this regulation shall be his assessment period.

    Earnings of self-employed earners
         25.  - (1) Subject to paragraph (2), "earnings", in the case of employment as a self-employed earner, means the gross receipts of the employment and shall include any allowance paid under section 2 of the Employment and Training Act 1973[131] or section 2 of the Enterprise and New Towns (Scotland) Act 1990[132] to the claimant for the purpose of assisting him in carrying on his business unless at the date of claim the allowance has been terminated.

        (2) "Earnings" in the case of employment as a self-employed earner does not include - 

      (a) where a claimant occupies a dwelling as his home and he provides in that dwelling board and lodging accommodation for which payment is made, those payments;

      (b) any payment made by a local authority to a claimant - 

        (i) with whom a person is accommodated by virtue of arrangements made under section 23(2)(a) of the Children Act 1989[133] (provision of accommodation and maintenance for a child whom they are looking after ) or, as the case may be, section 26(1) of the Children (Scotland) Act 1995[134]; or

        (ii) with whom a local authority foster a child under the Fostering of Children (Scotland) Regulations 1996[135];

      (c) any payment made by a voluntary organisation in accordance with section 59(1)(a) of the Children Act 1989 (provision of accommodation by voluntary organisations);

      (d) any payment made to the claimant or his partner for a person ("the person concerned") who is not normally a member of the claimant's household but is temporarily in his care, by - 

        (i) health authority;

        (ii) a local authority;

        (iii) a voluntary organisation;

        (iv) the person concerned pursuant to section 26(3A) of the National Assistance Act 1948[136]; or

        (v) a primary care trust established under section 16A of the National Health Service Act 1977[137];

      (e) any sports award.

    Calculation of net profit of self-employed earners
         26.  - (1) For the purposes of regulation 18 (calculation of income on a weekly basis), the earnings of a claimant to be taken into account shall be - 

      (a) in the case of a self-employed earner who is engaged in employment on his own account, the net profit derived from that employment;

      (b) in the case of a self-employed earner whose employment is carried on in partnership, his share of the net profit derived from that employment, less - 

        (i) an amount in respect of income tax and of social security contributions payable under the Contributions and Benefits Act 1992 calculated in accordance with regulation 27 (deduction of tax and contributions of self-employed earners); and

        (ii) one half of the amount calculated in accordance with paragraph (10) in respect of any qualifying premium.

        (2) For the purposes of paragraph (1)(a), the net profit of the employment shall, except where paragraph (8) applies, be calculated by taking into account the earnings of the employment over the assessment period less - 

      (a) subject to paragraphs (4) to (7), any expenses wholly and exclusively incurred in that period for the purposes of that employment;

      (b) an amount in respect of - 

        (i) income tax; and

        (ii) social security contributions payable under the Contributions and Benefits Act 1992,

      calculated in accordance with regulation 27 (deduction of tax and contributions of self-employed earners); and

      (c) one half of the amount calculated in accordance with paragraph (10) in respect of any qualifying premium.

        (3) For the purposes of paragraph (1)(b), the net profit of the employment shall be calculated by taking into account the earnings of the employment over the assessment period less, subject to paragraphs (4) to (7), any expenses wholly and exclusively incurred in that period for the purposes of the employment.

        (4) Subject to paragraph (5), no deduction shall be made under paragraph (2)(a) or (3), in respect of - 

      (a) any capital expenditure;

      (b) the depreciation of any capital asset;

      (c) any sum employed or intended to be employed in the setting up or expansion of the employment;

      (d) any loss incurred before the beginning of the assessment period;

      (e) the repayment of capital on any loan taken out for the purposes of the employment; and

      (f) any expenses incurred in providing business entertainment.

        (5) A deduction shall be made under paragraph (2)(a) or (3) in respect of the repayment of capital on any loan used for - 

      (a) the replacement in the course of business of equipment or machinery; and

      (b) the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair.

        (6) The relevant authority shall refuse to make a deduction in respect of any expenses under paragraph (2)(a) or (3) where it is not satisfied given the nature and the amount of the expense that it has been reasonably incurred.

        (7) For the avoidance of doubt - 

      (a) a deduction shall not be made under paragraph (2)(a) or (3) in respect of any sum unless it has been expended for the purposes of the business;

      (b) a deduction shall be made thereunder in respect of - 

        (i) the excess of any value added tax paid over value added tax received in the assessment period;

        (ii) any income expended in the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair;

        (iii) any payment of interest on a loan taken out for the purposes of the employment.

        (8) Where a claimant is engaged in employment as a child minder the net profit of the employment shall be one third of the earnings of that employment, less - 

      (a) an amount in respect of - 

        (i) income tax; and

        (ii) social security contributions payable under the Contributions and Benefits Act 1992,

      calculated in accordance with regulation 27 (deduction of tax and contributions of self-employed earners); and

      (b) one half of the amount calculated in accordance with paragraph (10) in respect of any qualifying premium.

        (9) For the avoidance of doubt where a claimant is engaged in employment as a self-employed earner and he is also engaged in one or more other employments as a self-employed or employed earner any loss incurred in any one of his employments shall not be offset against his earnings in any other of his employments.

        (10) The amount in respect of any qualifying premium shall be calculated by multiplying the daily amount of the qualifying premium by the number equal to the number of days in the assessment period; and for the purposes of this regulation the daily amount of the qualifying premium shall be determined - 

      (a) where the qualifying premium is payable monthly, by multiplying the amount of the qualifying premium by 12 and dividing the product by 365;

      (b) in any other case, by dividing the amount of the qualifying premium by the number equal to the number of days in the period to which the qualifying premium relates.

        (11) In this regulation, "qualifying premium" means any premium which is payable periodically in respect of a retirement annuity contract or a personal pension scheme and is so payable on or after the date of claim.

    Deduction of tax and contributions of self-employed earners
         27.  - (1) The amount to be deducted in respect of income tax under regulation 26(1)(b)(i), (2)(b)(i) or (8)(a)(i) (calculation of net profit of self-employed earners) shall be calculated on the basis of the amount of chargeable income and as if that income were assessable to income tax at the lower rate or, as the case may be, the lower rate and the basic rate of tax in the year of assessment in which the claim was made less only the personal relief to which the claimant is entitled under sections 257(1), 257A(1) and 259 of the Income and Corporation Taxes Act 1988[138] (personal relief) as is appropriate to his circumstances; but, if the assessment period is less than a year, the earnings to which the lower rate of tax is to be applied and the amount of the personal reliefs deductible under this paragraph shall be calculated on a pro rata basis.

        (2) The amount to be deducted in respect of social security contributions under regulation 26(1)(b)(i), (2)(b)(ii) or (8)(a)(ii) shall be the total of - 

      (a) the amount of Class 2 contributions payable under section 11(1) or, as the case may be, 11(3) of the Contributions and Benefits Act 1992 at the rate applicable at the date of claim except where the claimant's chargeable income is less than the amount specified in section 11(4) of that Act (small earnings exception) for the tax year in which the date of claim falls; but if the assessment period is less than a year, the amount specified for that tax year shall be reduced pro rata; and

      (b) the amount of Class 4 contributions (if any) which would be payable under section 15 of the Contributions and Benefits Act 1992 (Class 4 contributions recoverable under the Income Tax Acts) at the percentage rate applicable at the date of claim on so much of the chargeable income as exceeds the lower limit but does not exceed the upper limit of profits and gains applicable for the tax year in which the date of claim falls; but if the assessment period is less than a year, those limits shall be reduced pro rata.

        (3) In this regulation "chargeable income" means - 

      (a) except where sub-paragraph (b) applies, the earnings derived from the employment less any expenses deducted under paragraph (2)(a) or, as the case may be, (3) of regulation 26;

      (b) in the case of employment as a child minder, one third of the earnings of that employment.

      Other income

    Notional income
         28.  - (1) A claimant who has attained the qualifying age for state pension credit shall be treated as possessing - 

      (a) the amount of any retirement pension income - 

        (i) for which no claim has been made; and

        (ii) to which he might expect to be entitled if a claim for it were made;

      (b) income from an occupational pension scheme which the claimant elected to defer.

        (2) Where a person, aged not less than 60, is a person entitled to money purchase benefits under an occupational pension scheme or a personal pension scheme, or is a party to, or a person deriving entitlement to a pension under, a retirement annuity contract, and - 

      (a) he fails to purchase an annuity with the funds available in that scheme where - 

        (i) he defers, in whole or in part, the payment of any income which would have been payable to him by his pension fund holder;

        (ii) he fails to take any necessary action to secure that the whole of any income which would be payable to him by his pension fund holder upon his applying for it, is so paid; or

        (iii) income withdrawal is not available to him under that scheme; or

      (b) in the case of a retirement annuity contract, he fails to purchase an annuity with the funds available under that contract,

    the amount of any income foregone shall be treated as possessed by him, but only from the date on which it could be expected to be acquired were an application for it to be made.

        (3) The amount of any income foregone in a case to which either head (i) or (ii) of paragraph (2)(a) applies shall be the maximum amount of income which may be withdrawn from the fund and shall be determined by the relevant authority which shall take account of information provided by the pension fund holder in accordance with regulation 63(5) (evidence and information).

        (4) The amount of any income foregone in a case to which either head (iii) of paragraph (2)(a) or paragraph (2)(b) applies shall be the income that the claimant could have received without purchasing an annuity had the funds held under the relevant scheme or retirement annuity contract been held under a personal pension scheme or occupational pension scheme where income withdrawal was available and shall be determined in the manner specified in paragraph (3).

        (5) In paragraph (2), "money purchase benefits" has the meaning it has in the Pension Schemes Act 1993[139].

        (6) A person shall be treated as possessing income of which he has deprived himself for the purpose of securing entitlement to council tax benefit or increasing the amount of that benefit.

        (7) Where a claimant is in receipt of any benefit (other than council tax benefit) under the benefit Acts and the rate of that benefit is altered with effect from a date on or after 1st April in any year but not more than 14 days thereafter, the relevant authority shall treat the claimant as possessing such benefit at the altered rate from either 1st April or the first Monday in April in that year, whichever date the relevant authority shall select to apply in its area, to the date on which the altered rate is to take effect.

    Income paid to third parties
         29.  - (1) Any payment of income, other than a payment specified in paragraph (2), to a third party in respect of the claimant shall be treated as possessed by the claimant.

        (2) Paragraph (1) shall not apply in respect of a payment of income made under an occupational pension scheme or in respect of a pension or other periodical payment made under a personal pension scheme where - 

      (a) a bankruptcy order has been made in respect of the person in respect of whom the payment has been made or, in Scotland, the estate of that person is subject to sequestration or a judicial factor has been appointed on that person's estate under section 41 of the Solicitors (Scotland) Act 1980[140];

      (b) the payment is made to the trustee in bankruptcy or any other person acting on behalf of the creditors; and

      (c) the person referred to in sub-paragraph (a) and his partner does not possess, or is not treated as possessing, any other income apart from that payment.

      Capital

    Capital limit
         30. For the purposes of section 134(1) of the Contributions and Benefits Act 1992 as it applies to council tax benefit (no entitlement to benefit if capital exceeds a prescribed amount), the prescribed amount is £16,000.

    Calculation of capital
         31.  - (1) For the purposes of Part VII of the Contributions and Benefits Act 1992 as it applies to council tax benefit, the capital of a claimant to be taken into account shall, subject to paragraph (2), be the whole of his capital calculated in accordance with this Part.

        (2) There shall be disregarded from the calculation of the claimant's capital under paragraph (1) any capital, where applicable, specified in Schedule 5ZA.

        (3) A claimant's capital shall be treated as including any payment made to him by way of arrears of - 

      (a) child tax credit;

      (b) working tax credit;

      (c) state pension credit,

    if the payment was made in respect of a period for the whole or part of which council tax benefit was allowed before those arrears were paid.

    Calculation of capital in the United Kingdom
         32. Capital which a claimant possesses in the United Kingdom shall be calculated - 

    Calculation of capital outside the United Kingdom
        
    33. Capital which a claimant possesses in a country outside the United Kingdom shall be calculated - 

    less, where there would be expenses attributable to sale, 10 per cent. and the amount of any encumbrance secured on it.

    Notional capital
        
    34.  - (1) A claimant shall be treated as possessing capital of which he has deprived himself for the purpose of securing entitlement to council tax benefit or increasing the amount of that benefit except to the extent that the capital which he is treated as possessing is reduced in accordance with regulation 35 (diminishing notional capital rule).

        (2) Without prejudice to the generality of paragraph (1), a person who disposes of a capital resource shall be regarded as - 

        (3) Where a claimant stands in relation to a company in a position analogous to that of a sole owner or partner in the business of that company, he shall be treated as if he were such sole owner or partner and in such a case - 

        (4) For so long as a claimant undertakes activities in the course of the business of the company, the amount which he is treated as possessing under paragraph (3) shall be disregarded.

        (5) Where under this regulation a person is treated as possessing capital, the amount of that capital shall be calculated in accordance with the provisions of this Part as if it were actual capital which he does possess.

    Diminishing notional capital rule
        
    35.  - (1) Where a claimant is treated as possessing capital under regulation 34(1) (notional capital), the amount which he is treated as possessing - 

        (2) This paragraph applies to a benefit week where the claimant satisfies the conditions that - 

        (3) In a case to which paragraph (2) applies, the amount of the reduction for the purposes of paragraph (1)(a) shall be equal to the aggregate of - 

        (4) Subject to paragraph (5), for the purposes of paragraph (1)(b), the condition is that the claimant would have been entitled to council tax benefit in the relevant week but for regulation 34(1), and in such a case the amount of the reduction shall be equal to the aggregate of - 

      (a) the amount of council tax benefit to which the claimant would have been entitled in the relevant week but for regulation 34(1); and for the purposes of this sub-paragraph if the amount is in respect of a part-week that amount shall be determined by dividing the amount of council tax benefit to which he would have been so entitled by the number equal to the number of days in the part-week and multiplying the quotient so obtained by 7;

      (b) if the claimant would, but for regulation 21 of the State Pension Credit Regulations 2002, have been entitled to state pension credit in respect of the benefit week, within the meaning of regulation 1(2) of those Regulations (interpretation), which includes the last day of the relevant week, the amount to which he would have been entitled and, for the purposes of this sub-paragraph, if the amount is in respect of a part-week, that amount shall be determined by dividing the amount of the state pension credit to which he would have been so entitled by the number equal to the number of days in the part-week and multiplying the quotient so obtained by 7;

      (c) if the claimant would, but for regulation 42(1) of the Housing Benefit (General) Regulations 1987, have been entitled to housing benefit or to an additional amount of housing benefit in respect of the benefit week which includes the last day of the relevant week, the amount which is equal to - 

        (i) in a case where no housing benefit is payable, the amount to which he would have been entitled; or

        (ii) in any other case, the amount equal to the additional amount of housing benefit to which he would have been entitled;

      and, for the purposes of this sub-paragraph, if the amount is in respect of a part-week, that amount shall be determined by dividing the amount of the housing benefit to which he would have been so entitled by the number equal to the number of days in the part-week and multiplying the quotient so obtained by 7;

      (d) if the claimant would, but for regulation 113 of the Jobseeker's Allowance Regulations 1996, have been entitled to an income-based jobseeker's allowance in respect of the benefit week, within the meaning of regulation 1(3) of those Regulations (interpretation), which includes the last day of the relevant week, the amount to which he would have been entitled and, for the purposes of this sub-paragraph, if the amount is in respect of a part-week, that amount shall be determined by dividing the amount of the income-based jobseeker's allowance to which he would have been so entitled by the number equal to the number of days in the part-week and multiplying the quotient so obtained by 7.

        (5) The amount determined under paragraph (4) shall be re-determined under that paragraph if the claimant makes a further claim for council tax benefit and the conditions in paragraph (6) are satisfied, and in such a case - 

      (a) sub-paragraphs (a) to (d) of paragraph (4) shall apply as if for the words "relevant week" there were substituted the words "relevant subsequent week"; and

      (b) subject to paragraph (7), the amount as re-determined shall have effect from the first week following the relevant subsequent week in question.

        (6) The conditions are that - 

      (a) a further claim is made 26 or more weeks after - 

        (i) the date on which the claimant made a claim for council tax benefit in respect of which he was first treated as possessing the capital in question under regulation 34(1);

        (ii) in a case where there has been at least one re-determination in accordance with paragraph (5), the date on which he last made a claim for council tax benefit which resulted in the weekly amount being re-determined; or

        (iii) the date on which he last ceased to be entitled to council tax benefit,

      whichever last occurred; and

      (b) the claimant would have been entitled to council tax benefit but for regulation 34(1).

        (7) The amount as re-determined pursuant to paragraph (5) shall not have effect if it is less than the amount which applied in that case immediately before the re-determination and in such a case the higher amount shall continue to have effect.

        (8) For the purposes of this regulation - 

      (a) "part-week" in paragraph (4)(a) means a period of less than a week for which council tax benefit is allowed;

      (b) "part-week" in paragraph (4)(b) and (d) means - 

        (i) a period of less than a week which is the whole period for which state pension credit, or, as the case may be, an income-based jobseeker's allowance, is payable; and

        (ii) any other period of less than a week for which either of those benefits is payable;

      (c) "part-week" in paragraph (4)(c) means a period of less than a week for which housing benefit is payable;

      (d) "relevant week" means the benefit week or part-week in which the capital in question of which the claimant has deprived himself within the meaning of regulation 34(1) - 

        (i) was first taken into account for the purpose of determining his entitlement to council tax benefit; or

        (ii) was taken into account on a subsequent occasion for the purpose of determining or re-determining his entitlement to council tax benefit on that subsequent occasion and that determination or re-determination resulted in his beginning to receive, or ceasing to receive, council tax benefit;

      and where more than one benefit week or part-week is identified by reference to heads (i) and (ii) of this sub-paragraph the later or latest such benefit week or, as the case may be, the later or latest such part-week;

      (d) "relevant subsequent week" means the benefit week or part-week which includes the day on which the further claim or, if more than one further claim has been made, the last such claim was made.

    Capital jointly held
         36. Where a claimant and one or more other persons are beneficially entitled in possession to any capital asset, other than a capital asset disregarded under regulation 34(3), they shall be treated as if each of them were entitled in possession to the whole beneficial interest therein in an equal share and the foregoing provisions of this Chapter shall apply for the purposes of calculating the amount of capital which the claimant is treated as possessing as if it were actual capital which the claimant does possess.".

Provisions which do not apply
    
18. The following provisions of the Council Tax Benefit Regulations shall not apply to a claimant who has attained, or whose partner has attained, the qualifying age for state pension credit - 

Amendment of regulation 52
    
19. In regulation 52 (non-dependant deductions) - 

Continuing payments
    
20. After regulation 53A[144], insert - 



PART 4

Schedules Common to Housing Benefit and Council Tax Benefit

Application of Schedule 2
    
21.  - (1) Schedule 2 to these Regulations shall have effect in relation to both housing benefit and council tax benefit, but subject to any variations specified in the Schedule in its application to council tax benefit.

    (2) In its application to council tax benefit, references in Schedule 2 to "the Contributions and Benefits Act" shall be read as references to "the Contributions and Benefits Act 1992".

    (3) The provisions of Schedule 2 apply only in the case of a person who has attained or whose partner has attained the qualifying age for state pension credit, except in the case of a person to whom paragraph (4) applies.

    (4) This paragraph applies where the claimant or, if the claimant has a partner, his partner, is a person on income support or on an income-based jobseeker's allowance within the meaning of the Housing Benefit Regulations[
145] or, as the case may be, the Council Tax Benefit Regulations.



PART 5

Consequential and Transitional Provisions

Date on which change of circumstances takes effect
     22.  - (1) The Housing Benefit Regulations shall be amended in accordance with paragraphs (2) and (3).

    (2) In regulation 68[
146] (date on which change of circumstances is to take effect) - 

    (a) in paragraph (1), for the words "and subject to paragraphs (2) to (8)", substitute "and subject to the following provisions of this regulation";

    (b) after paragraph (8), add the following paragraphs - 

        " (9) Paragraph (10) applies if - 

      (a) the claimant or his partner has attained the age of 65; and

      (b) since the date in respect of which the claimant's entitlement to housing benefit first began or, if later, the anniversary date - 

        (i) a non-dependant took up residence in the claimant's dwelling; or

        (ii) the income of a non-dependant increased so that the amount of the deduction which falls to be made under regulation 63 increased.

        (10) Where this paragraph applies, the change of circumstances shall take effect from the next anniversary date following the change specified in paragraph (9)(b).

        (11) In paragraphs (9) and (10) but subject to paragraph (12), "anniversary date" means - 

      (a) in the case of a person whose entitlement to housing benefit began before 6th October 2003, the anniversary of the date of the last decision made by the relevant authority before 6th October 2003 awarding the claimant housing benefit; or

      (b) in the case of a person who claimed housing benefit on or after 6th October 2003 but before 6th October 2004 and whose award took effect from 6th October 2003, the anniversary of the date the decision on that claim was made by the relevant authority; or

      (c) in any other case, the anniversary of the date in respect of which the claimant's entitlement to housing benefit first began.

        (12) If in any particular case the date determined under sub-paragraphs (a) to (c) of sub-paragraph (11) is not the first day of a benefit week, the anniversary date in that case shall be the first day of the next benefit week to commence after the date determined under those paragraphs.".

    (3) After regulation 68A[147], insert - 

    (4) The Council Tax Benefit Regulations shall be amended in accordance with paragraphs (5) and (6).

    (5) In regulation 59[
148] (date on which change of circumstances takes effect) - 

    (a) in paragraph (1), for the words "and subject to paragraphs (2) to (9)", substitute "and subject to the following provisions of this regulation";

    (b) after paragraph (9), add the following paragraphs - 

        " (10) Paragraph (11) applies if - 

      (a) the claimant or his partner has attained the age of 65; and

      (b) since the date in respect of which the claimant's entitlement to council tax benefit first began or, if later, the anniversary date - 

        (i) a non-dependant took up residence in the claimant's dwelling; or

        (ii) the income of a non-dependant increased so that the amount of the deduction which falls to be made under regulation 52 increased.

        (11) Where this paragraph applies, the change of circumstances shall take effect from the next anniversary date following the change specified in paragraph (10)(b).

        (12) In paragraphs (10) and (11) but subject to paragraph (13), "anniversary date" means - 

      (a) in the case of a person whose entitlement to council tax benefit began before 6th October 2003, the anniversary of the date of the last decision made by the relevant authority before 6th October 2003 awarding the claimant council tax benefit;

      (b) in the case of a person who claimed council tax benefit on or after 6th October 2003 but before 6th October 2004 and whose award took effect from 6th October 2003, the anniversary of the date the decision on that claim was made by the relevant authority; or

      (c) in any other case, the anniversary of the date in respect of which the claimant's entitlement to council tax benefit first began.

        (13) If in any particular case the date determined under sub-paragraphs (a) to (c) of sub-paragraph (12) is not the first day of a benefit week, the anniversary date in that case shall be the first day of the next benefit week to commence after the date determined under those paragraphs.".

    (6) After regulation 59A[149], insert - 

Time claims are made or treated as made
    
23. In regulation 72 of the Housing Benefit Regulations and regulation 62 of the Council Tax Benefit Regulations (time and manner in which claims are to be made) - 

        " (11A) In the case of a person who has attained, or whose partner has attained, the age of 59 years and 35 weeks, paragraph (11) shall apply as if for the reference to the thirteenth benefit week, there was substituted a reference to the seventeenth benefit week.";

    (d) after paragraph (12) of regulation 62, insert - 

        " (12A) In the case of a person who has attained, or whose partner has attained, the age of 59 years and 35 weeks, paragraph (12) shall apply as if for the reference to the thirteenth benefit week, there was substituted a reference to the seventeenth benefit week.".

Notification of change of circumstances
     24.  - (1) In regulation 75 of the Housing Benefit Regulations (duty to notify change of circumstances) - 

        " (5) A person on housing benefit who is also on state pension credit must report - 

      (a) changes to his tenancy, but not changes in the amount of rent payable to a housing authority;

      (b) changes affecting the residence or income of any non-dependant normally residing with the claimant or with whom the claimant normally resides;

      (c) any absence from the dwelling which exceeds or is likely to exceed 13 weeks.

        (6) In addition to the changes required to be reported under paragraph (5), a person whose state pension credit comprises only a savings credit must also report - 

      (a) changes affecting a child living with him which may result in a change in the amount of housing benefit payable in his case, but not changes in the age of the child;

      (b) changes affecting child tax credit, child special allowance or child benefit;

      (c) any change in the amount of the claimant's capital to be taken into account which does or may take the amount of his capital to more than £16,000;

      (d) any change in the income or capital of - 

        (i) a non-dependant whose income and capital are treated as belonging to the claimant in accordance with regulation 20 (circumstances in which income of a non-dependant is to be treated as claimant's); or

        (ii) a person to whom regulation 23(4)(d) refers,

      and whether such a person or, as the case may be, non-dependant stops living or begins or resumes living with the claimant.

        (7) A person who is on housing benefit and on state pension credit need only report to the designated office the changes specified in paragraphs (5) and (6).".

    (2) In regulation 65 of the Council Tax Benefit Regulations (duty to notify change of circumstances) - 

    (a) in paragraph (1), for the words "(2), (4) and (5)", substitute "(2), (4) to (7)";

    (b) after paragraph (5)[152], add - 

        " (6) A person entitled to council tax benefit who is also on state pension credit must report - 

      (a) changes affecting the residence or income of any non-dependant normally residing with the claimant or with whom the claimant normally resides;

      (b) any absence from the dwelling which exceeds or is likely to exceed 13 weeks.

        (7) In addition to the changes required to be reported under paragraph (6), a person whose state pension credit comprises only a savings credit must also report - 

      (a) changes affecting a child living with him which may result in a change in the amount of council tax benefit allowed in his case, but not changes in the age of the child;

      (b) changes affecting child tax credit, child special allowance or child benefit;

      (c) any change in the amount of the claimant's capital to be taken into account which does or may take the amount of his capital to more than £16,000;

      (d) any change in the income or capital of - 

        (i) a non-dependant whose income and capital are treated as belonging to the claimant in accordance with regulation 12 (circumstances in which income of a non-dependant is to be treated as claimant's); or

        (ii) a person to whom regulation 15(4)(d) refers,

      and whether such a person or, as the case may be, non-dependant stops living or begins or resumes living with the claimant.

        (8) A person who is entitled to council tax benefit and on state pension credit need only report to the designated office the changes specified in paragraphs (6) and (7).".

Decisions
     25.  - (1) In both Part II of Schedule 6 to the Housing Benefit Regulations and Part II of Schedule 6 to the Council Tax Benefit Regulations (awards where income support or an income-based jobseeker's allowance is payable) - 

    (2) After sub-paragraph (1) of paragraph 9 of Schedule 6 to the Housing Benefit Regulations, insert - 

    (3) After sub-paragraph (1) of paragraph 9 of Schedule 6 to the Council Tax Benefit Regulations, insert - 

Amendments relating to recovery of overpaid housing benefit or excess council tax benefit
    
26.  - (1) In regulation 105 of the Housing Benefit Regulations[153] (recovery of overpayments from prescribed benefits), in paragraph (1), at the end, add - 

      " (f) state pension credit.".

    (2) In regulation 91 of the Council Tax Benefit Regulations[154] (recovery of excess benefit from prescribed benefits), in paragraph (1), at the end, add - 

      " (d) state pension credit.".

Minor amendments
     27.  - (1) In the provisions listed in paragraph (2), after the words "income support", wherever they occur in those provisions, insert ", state pension credit".

    (2) Those provisions are - 

Amendment of the Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001
     28. In regulation 8 of the Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001[156] (date from which a decision superseding an earlier decision takes effect) - 

    (a) in paragraph (2), for the words "in accordance with regulations 68 and 68A of the Housing Benefit Regulations or, as the case may be, regulations 59 and 59A of the Council Tax Benefit Regulations", substitute "in accordance with regulations 68, 68A or 68B of the Housing Benefit Regulations or, as the case may be, regulations 59, 59A or 59B of the Council Tax Benefit Regulations";

    (b) in paragraph (3), after "68A", insert "or 68B" and after "59A", insert "or 59B".

Transitional provision
     29. A claim for housing benefit or council tax benefit made after the day this regulation comes into force but before 6th October 2004 by a person who has attained or whose partner has attained the qualifying age for state pension credit shall be treated as made - 

whichever is the later, if the local authority is satisfied that, on that day, the claimant satisfied the conditions of entitlement to housing benefit or, as the case may be, council tax benefit.

Claims made before 6th October 2003
    
30.  - (1) This regulation applies if - 

    (2) If in the opinion of the local authority determining the claim, the conditions for the benefit claimed will be satisfied on 6th October 2003 unless there is a change in the claimant's circumstances, the authority may - 

    (3) A decision under paragraph (2)(b) to award benefit may be revised under paragraph 3 of Schedule 7 to the Child Support, Pensions and Social Security Act 2000[157] if the requirements for entitlement to housing benefit or council tax benefit are found not to have been satisfied on 6th October 2003.

Existing claimants
     31.  - (1) In the case of an existing claimant who, on 6th October 2003, has been a patient for more than 6 weeks but not more than 13 weeks - 

    (2) In this regulation - 


Malcolm Wicks
Parliamentary Under-Secretary of State, Department for Work and Pensions

17th February 2003



SCHEDULE 1

Provisions Conferring Powers Exercised in making these Regulations


Column (1) Column (2) Column (3)
Short title Provision Relevant amendments
Social Security Contributions and Benefits Act 1992[159] Section 123(1)(d) and (e) Local Government Finance Act 1992[160], Schedule 9, paragraph 1(1).
     Section 130(4)     
     Section 131(3)(b) and (10) Local Government Finance Act 1992, Schedule 9, paragraph 4.
     Section 134(1)     
     Section 135(1) and (6)     
     Section 136     
     Section 136A(3) and (4)(a) State Pension Credit Act 2002[161], Schedule 2, paragraph 3.
     Section 137(1) and (2)(c), (h) and (i)     
     Section 175(3) to (5) Social Security (Incapacity for Work) Act 1994[162], Schedule 1, paragraph 36;

Section 175 (3) to (5) is applied to provisions of the State Pension Credit Act 2002 by section 19(1) of that Act.

Social Security Administration Act 1992[163] Section 5(1)(a) to (e), (hh), (j), (k) and (p), and (6) Housing Act 1996[164], section 120;

Social Security Act 1998[165], section 74 and Schedule 7, paragraph 79;

Child Support, Pensions and Social Security Act 2000[166], Schedule 7, paragraph 21(2).

     Section 6(1)(a) to (e), (hh), (k) and (l) Local Government Finance Act 1992, Schedule 9, paragraph 12(1)(b);

Child Support, Pensions and Social Security Act 2000, Schedule 7, paragraph 21(2).

     Section 75(4)

Section 76(3)(c)

    
     Section 189(4) and (5) Social Security Act 1998, Schedule 7, paragraph 109.
Social Security Act 1998 Section 34(1) and (2)     
     Section 79(4) Applied to Schedule 7 to the Child Support, Pensions and Social Security Act 2000 by paragraph 20(3) of that Schedule.
Child Support, Pensions and Social Security Act 2000 Schedule 7, paragraphs 4(6), 12 and 20(1)(b)     
State Pension Credit Act 2002 Section 13(1)     



SCHEDULE 2
Regulation 21


Disregards


     1. The following Schedules shall have effect as follows - 

    (a) the First Schedule shall have effect as - 

      (i) Schedule 3A to the Housing Benefit Regulations; and

      (ii) Schedule 3A to the Council Tax Benefit Regulations;

    (b) the Second Schedule shall have effect as - 

      (i) Schedule 4A to the Housing Benefit Regulations; and

      (ii) Schedule 4A to the Council Tax Benefit Regulations;

    (c) the Third Schedule shall have effect as - 

      (i) Schedule 5ZA to the Housing Benefit Regulations, to be inserted immediately following Schedule 5 to those Regulations; and

      (ii) Schedule 5ZA to the Council Tax Benefit Regulations, to be inserted immediately following Schedule 5 to those Regulations.

     2.  - (1) In the First Schedule - 

    (a) in paragraphs 4(3) and 9(2)(cc) as they apply to council tax benefit, the references to Schedule 2A are references to Schedule 1A;

    (b) in paragraph 9(3)(b) as it applies to council tax benefit, the reference is to regulation 18(1)(c); and

    (c) in paragraph 8 as it applies to council tax benefit, the reference is to regulation 20(8)(b).

    (2) In the Third Schedule - 

    (a) in paragraph 10, as it applies to council tax benefit, for the words "housing benefit" substitute "council tax benefit";

    (b) in paragraph 21(3) and (4), as it applies to council tax benefit, for the words "award of housing benefit" substitute "award of council tax benefit".



THE FIRST SCHEDULE


    " Sums disregarded from claimant's earnings

         1. Where two or more of paragraphs 2 to 5 apply in any particular case the overall maximum sum which falls to be disregarded in that case under those paragraphs is restricted to - 

      (a) £25 in the case of a lone parent;

      (b) £20 in any other case.

         2. In a case where a claimant is a lone parent, £25 of earnings.

         3.  - (1) In a case of earnings from any employment or employments to which sub-paragraph (2) applies, £20.

        (2) This paragraph applies to employment - 

        (3) If the claimant's partner is engaged in any employment, so much of his earnings as would not in aggregate with the amount of the claimant's earnings disregarded under this paragraph exceed £20.

         4.  - (1) If the claimant or his partner is a carer, or both are carers, £20 of any earnings received from his or their employment.

        (2) Where the carer premium is awarded in respect of the claimant and of any partner of his, their earnings shall for the purposes of this paragraph be aggregated, but the amount to be disregarded in accordance with sub-paragraph (1) shall not exceed £20 of the aggregated amount.

        (3) In this paragraph, the claimant or his partner is a carer if paragraph 9 of Part III of Schedule 2A (carer premium) is satisfied in respect of him.

         5.  - (1) £20 is disregarded if the claimant or, if he has a partner, his partner - 

      (a) is in receipt of - 

        (i) long-term incapacity benefit under section 30A of the Contributions and Benefits Act[169];

        (ii) severe disablement allowance under section 68 of that Act[170];

        (iii) attendance allowance;

        (iv) disability living allowance under sections 71 to 76 of that Act;

        (v) any mobility supplement under article 26A of the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983[171] (including such a supplement by virtue of any other scheme or order) or under article 25A of the Personal Injuries (Civilians) Scheme 1983[172]; or

      (b) is or are registered as blind in a register compiled by a local authority under section 29 of the National Assistance Act 1948[173] (welfare services) or, in Scotland, has been certified as blind and in consequence is registered as blind in a register maintained by or on behalf of a regional or islands council; or

      (c) is, or is treated as, incapable of work in accordance with the provisions of, and regulations made under, Part XIIA of the Contributions and Benefits Act (incapacity for work), and has been incapable, or has been treated as incapable, of work for a continuous period of not less than - 

        (i) in the case of a claimant who is terminally ill within the meaning of section 30B(4) of that Act[174], 196 days;

        (ii) in any other case, 364 days.

        (2) Subject to sub-paragraph (3), £20 is disregarded if the claimant or, if he has a partner, his partner has, within a period of 8 weeks ending on the day in respect of which the claimant or his partner attains the qualifying age for state pension credit, had an award of housing benefit or council tax benefit and - 

      (a) £20 was disregarded in respect of earnings taken into account in that award;

      (b) the person whose earnings qualified for the disregard continues in employment after the termination of that award.

        (3) The disregard of £20 specified in sub-paragraph (2) applies so long as there is no break, other than a break which does not exceed 8 weeks, in a person's entitlement to housing benefit or council tax benefit or in employment following the first day in respect of which that benefit is awarded.

        (4) £20 is the maximum amount which may be disregarded under this paragraph, notwithstanding that, where the claimant has a partner, both the claimant and his partner satisfy the requirements of this paragraph.

         6. Any amount or the balance of any amount which would fall to be disregarded under paragraph 18 or 19 of Schedule 4A had the claimant's income which does not consist of earnings been sufficient to entitle him to the full disregard thereunder.

         7. Except where the claimant or his partner qualifies for a £20 disregard under the preceding provisions of this Schedule - 

      (a) £5 shall be disregarded if a claimant who has no partner has earnings;

      (b) £10 shall be disregarded if a claimant who has a partner has earnings.

         8. Any earnings, other than earnings referred to in regulation 28(8)(b), derived from employment which ended before the day in respect of which the claimant first satisfies the conditions for entitlement to housing benefit.

         9.  - (1) In a case where the claimant is a person who satisfies at least one of the conditions set out in sub-paragraph (2), and his net earnings equal or exceed the total of the amounts set out in sub-paragraph (3), the amount of his earnings that falls to be disregarded under this Schedule shall be increased by a sum equal to the 30 hour element of working tax credit referred to in regulation 20(1)(c) of the Working Tax Credit Regulations.

        (2) The conditions of this sub-paragraph are that - 

      (a) the claimant, or if he has a partner, either the claimant or his partner, is a person to whom regulation 20(1)(c) of the Working Tax Credit Regulations applies; or

      (b) the claimant - 

        (i) is, or if he has a partner, his partner is, or both the claimant and his partner are, aged at least 25 and is engaged in remunerative work for on average not less than 30 hours per week; or

        (ii) if he is a member of a couple - 

          (aa) at least one member of that couple is engaged in remunerative work for on average not less than 16 hours per week;

          (bb) the aggregate number of hours for which the couple are engaged in remunerative work is at least 30 hours per week; and

          (cc) his applicable amount includes a family premium under paragraph 3 of Schedule 2A; or

        (iii) is a lone parent who is engaged in remunerative work for on average not less than 30 hours per week; or

        (iv) is, or if he has a partner, one of them is or both are, engaged in remunerative work for on average not less than 30 hours per week and - 

          (aa) paragraph 5(1) above is satisfied in respect of one or, as the case may be, both of them; and

          (bb) the person in respect of whom it is satisfied is engaged in remunerative work for on average not less than 16 hours per week.

        (3) The following are the amounts referred to in sub-paragraph (1) - 

      (a) any amount disregarded under this Schedule;

      (b) the amount of child care charges calculated as deductible under regulation 26(1)(c); and

      (c) the amount of the element referred to in regulation 20(1)(c) of the Working Tax Credit Regulations.

        (4) The provisions of regulation 4 shall apply in determining whether or not a person works for on average not less than 30 hours per week, but as if the reference to 16 hours in paragraph (1) of that regulation was a reference to 30 hours.

        (5) In this paragraph, "the Working Tax Credit Regulations" means the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002[175].

         10. Where a payment of earnings is made in a currency other than Sterling, any banking charge or commission payable in converting that payment into Sterling.".



THE SECOND SCHEDULE


    " Amounts to be disregarded in the calculation of income other than earnings

         1. In addition to any sum which falls to be disregarded in accordance with paragraphs 2 to 6, £10 of any of the following, namely - 

         2. The whole of any amount included in a pension to which paragraph 1 relates in respect of - 

      (a) the claimant's need for constant attendance;

      (b) the claimant's exceptionally severe disablement.

         3. Any mobility supplement under article 26A of the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983[180] (including such a supplement by virtue of any other scheme or order) or under article 25A of the Personal Injuries (Civilians) Scheme 1983[181] or any payment intended to compensate for the non-payment of such a supplement.

         4. Any supplementary pension under article 29(1A) of the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983[182] (pensions to widows or widowers).

         5. In the case of a pension awarded at the supplementary rate under article 27(3) of the Personal Injuries (Civilians) Scheme 1983[183] (pensions to widows or widowers), the sum specified in paragraph 1(c) of Schedule 4 to that Scheme.

         6.  - (1) Any payment which is - 

      (a) made under any of the Dispensing Instruments to a widow of a person - 

        (i) whose death was attributable to service in a capacity analogous to service as a member of the armed forces of the Crown; and

        (ii) whose service in such capacity terminated before 31st March 1973; and

      (b) equal to the amount specified in article 29(1A) of the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983 (pensions to widows or widowers).

        (2) In this paragraph, "the Dispensing Instruments" means the Order in Council of 19th December 1881, the Royal Warrant of 27th October 1884 and the Order by His Majesty of 14th January 1922 (exceptional grants of pay, non-effective pay and allowances).

         7. £15 of any widowed parent's allowance to which the claimant is entitled under section 39A of the Contributions and Benefits Act[184].

         8. £15 of any widowed mother's allowance to which the claimant is entitled under section 37 of the Contributions and Benefits Act.

         9. Where the claimant occupies a dwelling as his home and he provides in that dwelling board and lodging accommodation, an amount, in respect of each person for whom such accommodation is provided for the whole or any part of a week, equal to - 

      (a) where the aggregate of any payments made in respect of any one week in respect of such accommodation provided to such person does not exceed £20, 100 per cent. of such payments; or

      (b) where the aggregate of any such payments exceeds £20, £20 and 50 per cent. of the excess over £20.

         10. If the claimant - 

      (a) owns the freehold or leasehold interest in any property or is a tenant of any property; and

      (b) occupies a part of that property; and

      (c) has an agreement with another person allowing that person to occupy another part of that property on payment of rent and - 

        (i) the amount paid by that person is less than £20 per week, the whole of that amount; or

        (ii) the amount paid is £20 or more per week, £20.

         11. Where a claimant receives income under an annuity purchased with a loan which satisfies the following conditions - 

      (a) that the loan was made as part of a scheme under which not less than 90 per cent. of the proceeds of the loan were applied to the purchase by the person to whom it was made of an annuity ending with his life or with the life of the survivor of two or more persons (in this paragraph referred to as "the annuitants") who include the person to whom the loan was made;

      (b) that at the time the loan was made the person to whom it was made or each of the annuitants had attained the age of 65;

      (c) that the loan was secured on a dwelling in Great Britain and the person to whom the loan was made or one of the annuitants owns an estate or interest in that dwelling;

      (d) that the person to whom the loan was made or one of the annuitants occupies the dwelling on which it was secured as his home at the time the interest is paid; and

      (e) that the interest payable on the loan is paid by the person to whom the loan was made or by one of the annuitants,

    the amount, calculated on a weekly basis, equal to - 

        (i) where, or insofar as, section 369 of the Income and Corporation Taxes Act 1988[185] (mortgage interest payable under deduction of tax) applies to the payments of interest on the loan, the interest which is payable after deduction of a sum equal to income tax on such payments at the applicable percentage of income tax within the meaning of section 369(1A) of that Act;

        (ii) in any other case, the interest which is payable on the loan without deduction of such a sum.

         12.  - (1) Any payment, other than a payment to which sub-paragraph (2) applies, made to the claimant by Trustees in exercise of a discretion exercisable by them.

        (2) This sub-paragraph applies to payments made to the claimant by Trustees in exercise of a discretion exercisable by them for the purpose of - 

      (a) obtaining food, ordinary clothing and footwear or household fuel;

      (b) the payment of rent, council tax or water charges for which that claimant or his partner is liable;

      (c) meeting housing costs of a kind specified in Schedule II to the State Pension Credit Regulations 2002[186].

        (3) In a case to which sub-paragraph (2) applies, £20 or - 

      (a) if the payment is less than £20, the whole payment;

      (b) if, in the claimant's case, £10 is disregarded in accordance with paragraph 1(a) to (f), £10 or the whole payment if it is less than £10; or

      (c) if, in the claimant's case, £15 is disregarded under paragraph 7 or paragraph 8 and - 

        (i) he has no disregard under paragraph 1(a) to (f), £5 or the whole payment if it is less than £5;

        (ii) he has a disregard under paragraph 1(a) to (f), nil.

        (4) For the purposes of this paragraph - 

      "ordinary clothing and footwear" means clothing and footwear for normal daily use, but does not include school uniforms, or clothing and footwear used solely for sporting activities; and

      "rent" means eligible rent for the purposes of the Housing Benefit (General) Regulations 1987[187] less any deductions in respect of non-dependants which fall to be made under regulation 63 (non-dependant deductions) of those Regulations.

         13. Any increase in pension under Part IV of the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983[188] paid in respect of a dependant other than the pensioner's spouse.

         14. Any payment ordered by a court to be made to the claimant or the claimant's partner in consequence of any accident, injury or disease suffered by the person or a child of the person to or in respect of whom the payments are made.

         15. Periodic payments made to the claimant or the claimant's partner under an agreement entered into in settlement of a claim made by the claimant or, as the case may be, the claimant's partner for an injury suffered by him.

         16. Any income which is payable outside the United Kingdom for such period during which there is a prohibition against the transfer to the United Kingdom of that income.

         17. Any banking charges or commission payable in converting to Sterling payments of income made in a currency other than Sterling.

         18. Where the claimant makes a parental contribution in respect of a student attending a course at an establishment in the United Kingdom or undergoing education in the United Kingdom, which contribution has been assessed for the purposes of calculating - 

      (a) under regulations made in exercise of the powers conferred by section 1 of the Education Act 1962[189], that student's award under that section;

      (b) that student's award under section 2 of that Act;

      (c) under regulations made in exercise of the powers conferred by section 49 of the Education (Scotland) Act 1980[190], that student's bursary, scholarship, or other allowance under that section or under regulations made in exercise of the powers conferred by section 73 of that Act of 1980, any payment to that student under that section; or

      (d) the student's student loan,

    an amount equal to the weekly amount of that parental contribution, but only in respect of the period for which that contribution is assessed as being payable.

         19.  - (1) Where the claimant is the parent of a student aged under 25 in advanced education who either - 

      (a) is not in receipt of any award, grant or student loan in respect of that education; or

      (b) is in receipt of an award under section 2 of the Education Act 1962 (discretionary awards) or a bursary, scholarship or other allowance under section 49(1) of the Education (Scotland) Act 1980, or a payment under section 73 of that Act of 1980,

    and the claimant makes payments by way of a contribution towards the student's maintenance, other than a parental contribution falling within paragraph 18, an amount specified in sub-paragraph (2) in respect of each week during the student's term.

        (2) For the purposes of sub-paragraph (1), the amount shall be equal to - 

      (a) the weekly amount of the payments; or

      (b) the amount by way of a personal allowance for a single claimant under 25 less the weekly amount of any award, bursary, scholarship, allowance or payment referred to in sub-paragraph (1)(b),

    whichever is less.

         20.  - (1) Where a claimant's applicable amount includes an amount by way of a family premium, £15 of any payment of maintenance, whether under a court order or not, which is made or due to be made by the claimant's spouse or former spouse, or the claimant's partner's spouse or former spouse.

        (2) For the purposes of sub-paragraph (1), where more than one maintenance payment falls to be taken into account in any week, all such payments shall be aggregated and treated as if they were a single payment.

         21. Except in a case which falls under paragraph 9 of Schedule 3A, where the claimant is entitled to the 30 hour element of working tax credit referred to in regulation 20(1)(c) of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002[191], any amount of working tax credit up to the amount specified for that element in Schedule 2 to those Regulations.".



THE THIRD SCHEDULE




 

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