The Jobseeker’s Allowance Regulations 1996

Regulations 99(2), 101(2) and 106(6)

SCHEDULE 6 SUMS TO BE DISREGARDED IN THE CALCULATION OF EARNINGS

1.  In the case of a claimant who has been engaged in remunerative work as an employed earner or, had the employment been in Great Britain, would have been so engaged—

(a) any earnings paid or due to be paid in respect of that employment which has terminated—

(i) by way of retirement but only if on retirement he is entitled to a retirement pension under the Benefits Act, or would be so entitled if he satisfied the contribution conditions;

(ii) otherwise than by retirement except earnings to which regulation 98(1)(b), (c), (f) and (g) applies (earnings of employed earners);

(b) where–

(i) the employment has not been terminated, but

(ii) the claimant is not engaged in remunerative work,

any earnings in respect of that employment except earnings to which regulation 98(1)(c) and (d) applies; but this sub-paragraph shall not apply where the claimant has been suspended from his employment.

2.  In the case of a claimant who, before the date of claim—

(a) has been engaged in part-time employment as an employed earner or, where the employment has been outside Great Britain, would have been so engaged had the employment been in Great Britain, and

(b) has ceased to be engaged in that employment, whether or not that employment has terminated,

any earnings in respect of that employment except earnings to which regulation 98(1)(b), (c), (d), (f) or (g) applies; but this paragraph shall not apply where the claimant has been suspended from his employment.

3.  Any payment to which regulation 98(1)(f) applies—

(a) which is due to be paid more than 52 weeks after the date of termination of the employment in respect of which the payment is made; or

(b) which is a compensatory award within the meaning of section 72(1)(b) of the Employment Protection (Consolidation) Act 1978(1) for so long as such an award remains unpaid and the employer is insolvent within the meaning of section 127 of that Act.

4.  In the case of a claimant who has been engaged in remunerative work or part-time employment as a self-employed earner or, had the employment been in Great Britain, would have been so engaged and who has ceased to be so employed, from the date of the cessation of his employment any earnings derived from that employment except earnings to which regulation 95(2) (royalties etc.) applies.

5.—(1) In a case to which this paragraph applies, £15; but notwithstanding regulation 88 (calculation of income and capital of members of claimant’s family and of a polygamous marriage), if this paragraph applies to a claimant it shall not apply to his partner except where, and to the extent that, the earnings of the claimant which are to be disregarded under this paragraph are less than £15.

(2) This paragraph applies where the claimant’s applicable amount includes, or but for his being an in-patient or in accommodation in a residential care home or nursing home or in residential accommodation would include, an amount by way of a disability premium under Schedule 1 (applicable amounts).

(3) This paragraph applies where–

(a) the claimant is a member of a couple, and–

(i) his applicable amount would include an amount by way of the disability premium under Schedule 1 but for the higher pensioner premium under that Schedule being applicable; or

(ii) had he not been an in-patient or in accommodation in a residential care home or nursing home or in residential accommodation his applicable amount would include the higher pensioner premium under that Schedule and had that been the case he would also satisfy the condition in (i) above; and

(b) he or his partner is under the age of 60 and at least one is engaged in part-time employment.

(4) This paragraph applies where–

(a) the claimant’s applicable amount includes, or but for his being an in-patient or in accommodation in a residential care home or nursing home or in residential accommodation would include, an amount by way of the higher pensioner premium under Schedule 1; and

(b) the claimant or, if he is a member of a couple, either he or his partner has attained the age of 60; and

(c) immediately before attaining that age he or, as the case may be, he or his partner was engaged in part-time employment and the claimant was entitled by virtue of sub-paragraph (2) or (3) to a disregard of £15; and

(d) he or, as the case may be, he or his partner has continued in part-time employment.

(5) This paragraph applies where–

(a) the claimant is a member of a couple and–

(i) his applicable amount would include an amount by way of the disability premium under Schedule 1 but for the pensioner premium where the claimant’s partner has attained the age of 75 being applicable under that Schedule; or

(ii) had he not been an in-patient or in accommodation in a residential care home or nursing home or in residential accommodation his applicable amount would include the pensioner premium where the claimant’s partner has attained the age of 75 under that Schedule; and had that been the case he would also satisfy the condition in (i) above; and

(b) the claimant is under the age of 60 and his partner has attained the age of 75 but is under the age of 80 and at least one member of the couple is engaged in part-time employment.

(6) This paragraph applies where–

(a) the claimant is a member of a couple and has attained the age of 60 and his partner has attained the age of 75 but is under the age of 80; and

(b) immediately before the claimant attained the age of 60 either member of the couple was engaged in part-time employment and the claimant was entitled by virtue of sub-paragraph (5) to a disregard of £15; and

(c) either he or his partner has continued in part-time employment.

(7) For the purposes of this paragraph–

(a) except where head (b) or (c) applies, no account shall be taken of any period not exceeding eight consecutive weeks occurring—

(i) on or after the date on which the claimant or, if he is a member of a couple, he or his partner attained the age of 60 during which either was or both were not engaged in part-time employment or the claimant was not entitled to a jobseeker’s allowance or income support; or

(ii) immediately after the date on which the claimant or his partner ceased to participate in arrangements for training made under section 2 of the Employment and Training Act 1973(2) or section 2 of the Enterprise and New Towns (Scotland) Act 1990(3) or to participate in an employment rehabilitation programme established under that section of the 1973 Act;

(b) in a case where the claimant has ceased to be entitled to a jobseeker’s allowance or income support because he, or if he is a member of a couple, he or his partner becomes engaged in remunerative work, no account shall be taken of any period, during which he was not entitled to a jobseeker’s allowance or income support, not exceeding the permitted period, occurring on or after the date on which the claimant or, as the case may be, his partner attained the age of 60;

(c) no account shall be taken of any period occurring on or after the date on which the claimant or, if he is a member of a couple, he or his partner attained the age of 60 during which the claimant was not entitled to a jobseeker’s allowance or income support because he or his partner was participating in arrangements for training made under section 2 of the Employment and Training Act 1973 or section 2 of the Enterprise and New Towns (Scotland) Act 1990 or participating in an employment rehabilitation programme established under that section of the 1973 Act;

6.  If an amount by way of a lone parent premium under Schedule 1 (applicable amounts) is, or but for the pensioner premium being applicable to him or for his accommodation in a residential care home, nursing home or in residential accommodation would be, included in the calculation of the claimant’s applicable amount, £15.

7.—(1) In a case to which neither paragraph 5 or 6 applies to the claimant, and subject to sub-paragraph (2), where the claimant’s applicable amount includes an amount by way of the carer premium under Schedule 1 (applicable amounts), £15 of the earnings of the person who is, or at any time in the preceding eight weeks was, in receipt of invalid care allowance or treated in accordance with paragraph 17(2) of that Schedule as being in receipt of invalid care allowance.

(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 £15 of the aggregated amount.

8.  Where the carer premium is awarded in respect of a claimant who is a member of a couple and whose earnings are less than £15, but is not awarded in respect of the other member of the couple, and that other member is engaged in an employment—

(a) specified in paragraph 9(1), so much of the other member’s earnings as would not when aggregated with the amount disregarded under paragraph 7 exceed £15;

(b) other than one specified in paragraph 9(1), so much of the other member’s earnings from such other employment up to £5 as would not when aggregated with the amount disregarded under paragraph 7 exceed £15.

9.—(1) In a case to which none of paragraphs 5 to 8 applies to the claimant, £15 of earnings derived from one or more employments as—

(a) a part-time member of a fire brigade maintained in pursuance of the Fire Services Acts 1947 to 1959(4);

(b) an auxiliary coastguard in respect of coast rescue activities;

(c) a person engaged part-time in the manning or launching of a lifeboat;

(d) a member of any territorial or reserve force prescribed in Part I of Schedule 3 to the Social Security (Contributions) Regulations 1979(5);

but, notwithstanding regulation 88 (calculation of income and capital of members of claimant’s family and of a polygamous marriage), if this paragraph applies to a claimant it shall not apply to his partner except to the extent specified in sub-paragraph (2).

(2) If the claimant’s partner is engaged in employment–

(a) specified in sub-paragraph (1), so much of his earnings as would not in aggregate with the amount of the claimant’s earnings disregarded under this paragraph exceed £15;

(b) other than one specified in sub-paragraph (1), so much of his earnings from that employment up to £5 as would not in aggregate with the claimant’s earnings disregarded under this paragraph exceed £15.

10.  Where the claimant is engaged in one or more employments specified in paragraph 9(1) but his earnings derived from such employments are less than £15 in any week and he is also engaged in any other part-time employment, so much of his earnings from that other employment up to £5 as would not in aggregate with the amount of his earnings disregarded under paragraph 9 exceed £15.

11.  Where the claimant is a member of a couple and both members of the couple are aged under 60–

(a) in a case to which none of paragraphs 5 to 10 applies, £10; but, notwithstanding regulation 88 (calculation of income and capital of members of a claimant’s family and of a polygamous marriage), if this paragraph applies to a claimant it shall not apply to his partner except where, and to the extent that, the earnings of the claimant which are to be disregarded under this sub-paragraph are less than £10;

(b) in a case to which one or more of paragraphs 5 to 10 applies and the total amount disregarded under those paragraphs is less than £10, so much of the claimant’s earnings as would not in aggregate with the amount disregarded under paragraphs 5 to 10 exceed £10.

12.  In a case to which none of paragraphs 5 to 11 applies to the claimant, £5.

13.  Notwithstanding the foregoing provisions of this Schedule, where two or more payments of the same kind and from the same source are to be taken into account in the same benefit week, because it has not been practicable to treat the payments under regulation 96(1)(b) (date on which income treated as paid) as paid on the first day of the benefit week in which they were due to be paid, there shall be disregarded from each payment the sum that would have been disregarded if the payment had been taken into account on the date on which it was due to be paid.

14.  Any earnings derived from employment which are payable in a country outside the United Kingdom for such period during which there is a prohibition against the transfer to the United Kingdom of those earnings.

15.  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.

16.  Any earnings which are due to be paid before the date of claim and which would otherwise fall to be taken into account in the same benefit week as a payment of the same kind and from the same source.

17.  Any earnings of a child or young person except earnings to which paragraph 18 applies.

18.  In the case of earnings of a child or young person who although not receiving full-time education for the purposes of section 142 of the Benefits Act (meaning of “child”) is nonetheless treated for the purposes of these Regulations as receiving relevant education and who is engaged in remunerative work–

(a) if an amount by way of a disabled child premium under Schedule 1 (applicable amounts) is, or but for his accommodation in a residential care home or nursing home would be, included in the calculation of his applicable amount and his earning capacity is not, by reason of his disability, less than 75 per cent. of that which he would, but for that disability, normally be expected to earn, £15;

(b) in any other case, £5.

19.  In the case of a claimant who–

(a) has been engaged in employment as a member of any territorial or reserve force prescribed in Part I of Schedule 3 to the Social Security (Contributions) Regulations 1979; and

(b) by reason of that employment has failed to satisfy any of the conditions of entitlement to a jobseeker’s allowance, other than the condition in section 2(1)(c) (prescribed amount of earnings) or section 3(1)(a) (income not in excess of applicable amount),

any earnings from that employment paid in respect of the period in which the claimant was not entitled to a jobseeker’s allowance.

20.  In this Schedule “part-time employment” means employment in which the person is not to be treated as engaged in remunerative work under regulation 52 or 53 (persons treated as engaged, or not engaged, in remunerative work).

21.  In paragraph 5(7)(b) “permitted period” means a period determined in accordance with regulation 3A of the Income Support Regulations(6), as it has effect by virtue of regulation 87(7) of these Regulations.

(1)

1978 c. 44; section 72 was amended by the Trade Union Reform and Employment Rights Act 1993 (c. 19), Schedule 5 paragraph 7.

(2)

1973 c. 50; section 2 was amended by section 25(1) of the Employment Act 1988 (c. 19), Part I of Schedule 7 to the Employment Act 1989 (c. 38), and section 47(1) of the Trade Union Reform and Employment Rights Act 1993 (c. 19).

(3)

1990 c. 35.

(4)

1947 c. 41; 1951 c. 27; 1959 c. 44.

(5)

S.I. 1979/591; relevant amending instruments are S.I. 1980/1975 and 1994/1553.

(6)

Regulation 3A was inserted by S.I. 1989/1678 and is amended by S.I. 1996/206.