Welfare Reform Act 2007

1 (1) The first condition is that— E+W+S

(a) the claimant has actually paid Class 1 or Class 2 contributions in respect of one of the last [F1 two] complete tax years (“the base tax year”) before the beginning of the relevant benefit year,

(b) those contributions must have been paid before the relevant benefit week, and

[F2 (c) the claimant's earnings determined in accordance with sub-paragraph (2) must be not less than the base tax year's lower earnings limit multiplied by 26.]

[F3 (2) The earnings referred to in sub-paragraph (1)(c) are the aggregate of—

(a) the claimant's relevant earnings for the base tax year upon which primary Class 1 contributions have been paid or treated as paid, and

(b) the claimant's earnings factors derived from Class 2 contributions.

(3) Regulations may make provision for the purposes of sub-paragraph (2)(a) for determining the claimant's relevant earnings for the base tax year.

(3A) Regulations under sub-paragraph (3) may, in particular, make provision—

(a) for making that determination by reference to the amount of a person's earnings for periods comprised in the base tax year;

(b) for determining the amount of a person's earnings for any such period by—

(i) first determining the amount of the earnings for the period in accordance with regulations made for the purposes of section 3(2) of the Contributions and Benefits Act, and

(ii) then disregarding so much of the amount found in accordance with sub-paragraph (i) as exceeded the base tax year's lower earnings limit (or the prescribed equivalent).]

(4) Regulations may—

(a) provide for the condition set out in sub-paragraph (1) to be taken to be satisfied in the case of persons who have been entitled to any prescribed description of benefit during any prescribed period or at any prescribed time;

(b) with a view to securing any relaxation of the requirements of that condition in relation to persons who have been so entitled, provide for that condition to apply in relation to them subject to prescribed modifications.

(5) In sub-paragraph (4), “benefit” means—

(a) any benefit within the meaning of section 122(1) of the Contributions and Benefits Act,

(b) any benefit under Parts 7 to 12 of that Act,

(c) credits under regulations under section 22(5) of that Act,

[F4 (ca) credits under section 23A of that Act,]

(d) a contributory allowance, and

(e) working tax credit.

Textual Amendments

F1 Word in Sch. 1 para. 1(1)(a) substituted (1.11.2010) by Welfare Reform Act 2009 (c. 24), ss. 13(2), 61(3); S.I. 2010/2377, art. 2(2)(b)

F2 Sch. 1 para. 1(1)(c) substituted (1.11.2010) by Welfare Reform Act 2009 (c. 24), ss. 13(3), 61(3); S.I. 2010/2377, art. 2(2)(b)

F3 Sch. 1 para. 1(2)-(3A) substituted for Sch. 1 para. 1(2)(3) (1.10.2010 for specified purposes, 1.11.2010 in so far as not already in force) by Welfare Reform Act 2009 (c. 24), ss. 13(4), 61(3); S.I. 2010/2377, art. 2(1)(c), (2)(c)

F4 Sch. 1 para. 1(5)(ca) inserted (26.9.2007) by Pensions Act 2007 (c. 22), s. 30(3), Sch. 1 para. 11

Commencement Information

I1 Sch. 1 para. 1(1)-(3) (5) in force at 27.10.2008 by S.I. 2008/787, art. 2(4)(d)

I2 Sch. 1 para. 1(4) in force at 18.3.2008 for specified purposes by S.I. 2008/787, art. 2(1)

I3 Sch. 1 para. 1(4) in force at 27.10.2008 in so far as not already in force by S.I. 2008/787, art. 2(4)(d)