The Housing Benefit and Council Tax Benefit (Miscellaneous Amendments) Regulations 2005

Amendment of the Council Tax Benefit Regulations

2.—(1) Subject to paragraph (2), the Council Tax Benefit Regulations shall be amended in accordance with the following paragraphs.

(2) The amendments made by paragraphs (6) and (7) are to the Council Tax Benefit Regulations as modified in their application to persons to whom regulation 12 of the Housing Benefit and Council Tax Benefit (State Pension Credit) Regulations 2003(1) applies.

(3) In regulation 13A(2) (treatment of child care charges)—

(a) for paragraph (1)(c), substitute—

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

(i) is incapacitated;

(ii) is an in-patient in hospital; or

(iii) is in prison (whether serving a custodial sentence or remanded in custody awaiting trial or sentence).”;

(b) after paragraph (1), insert—

“(1A) For the purposes of paragraph (1) and subject to paragraph (1C), a person to whom paragraph (1B) applies shall be treated as engaged in remunerative work for a period not exceeding 28 weeks during which he—

(a) is paid statutory sick pay;

(b) is paid short-term incapacity benefit at the lower rate under sections 30A to 30E of the Contributions and Benefits Act(3);

(c) is paid income support on the grounds of incapacity for work under regulation 4ZA of, and paragraph 7 or 14 of Schedule 1B to, the Income Support (General) Regulations 1987(4); or

(d) is credited with earnings on the grounds of incapacity for work under regulation 8B of the Social Security (Credits) Regulations 1975(5).

(1B) This paragraph applies to a person who was engaged in remunerative work immediately before—

(a) the first day of the period in respect of which he was first paid statutory sick pay, short-term incapacity benefit or income support on the grounds of incapacity for work; or

(b) the first day of the period in respect of which earnings are credited,

as the case may be.

(1C) In a case to which paragraph (1A)(c) or (d) applies, the period of 28 weeks begins on the day on which the person is first paid income support or on the first day of the period in respect of which earnings are credited, as the case may be.”;

(c) in paragraph (2ZB)(6)—

(i) at the end of sub-paragraph (a), omit “or”;

(ii) after sub-paragraph (b), add—

“; or

(c) in respect of care provided by a relative of the child wholly or mainly in the child’s home.”;

(d) in paragraph (2ZC)(7)—

(i) omit sub-paragraphs (a), (c) and (d);

(ii) after sub-paragraph (h), add—

“; or

(i) by a person prescribed in regulations made pursuant to section 12(4) of the Tax Credits Act 2002(8).”;

(e) in paragraph (7)(a)(ii)(9)—

(i) for “incurred” substitute “is incurring”;

(ii) omit “in that week”;

(f) omit paragraph (8)(10).

(4) After regulation 16 (average weekly income other than earnings), insert—

“Calculation of average weekly income from tax credits

16A.— (1) This regulation applies where a claimant receives a tax credit.

(2) Where this regulation applies, the period over which a tax credit is to be taken into account shall be the period set out in paragraph (3).

(3) Where the instalment in respect of which payment of a tax credit is made is—

(a) a daily instalment, the period is 1 day, being the day in respect of which the instalment is paid;

(b) a weekly instalment, the period is 7 days, ending on the day on which the instalment is due to be paid;

(c) a two weekly instalment, the period is 14 days, commencing 6 days before the day on which the instalment is due to be paid;

(d) a four weekly instalment, the period is 28 days, ending on the day on which the instalment is due to be paid.

(4) For the purposes of this regulation “tax credit” means child tax credit or working tax credit.”.

(5) In regulation 17 (calculation of weekly income) for “and 16 (average weekly income other than earnings)” substitute “, 16 (average weekly income other than earnings) and 16A (calculation of average weekly income from tax credits)”.

(6) In regulation 19 (treatment of child care charges)—

(a) for paragraph (1)(c), substitute—

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

(i) is incapacitated;

(ii) is an in-patient in hospital; or

(iii) is in prison (whether serving a custodial sentence or remanded in custody awaiting trial or sentence).”;

(b) after paragraph (1), insert—

“(1A) For the purposes of paragraph (1) and subject to paragraph (1C), a person to whom paragraph (1B) applies shall be treated as engaged in remunerative work for a period not exceeding 28 weeks during which he—

(a) is paid statutory sick pay;

(b) is paid short-term incapacity benefit at the lower rate under sections 30A to 30E of the Contributions and Benefits Act;

(c) is paid income support on the grounds of incapacity for work under regulation 4ZA of, and paragraph 7 or 14 of Schedule 1B to, the Income Support (General) Regulations 1987; or

(d) is credited with earnings on the grounds of incapacity for work under regulation 8B of the Social Security (Credits) Regulations 1975.

(1B) This paragraph applies to a person who was engaged in remunerative work immediately before—

(a) the first day of the period in respect of which he was first paid statutory sick pay, short-term incapacity benefit or income support on the grounds of incapacity for work; or

(b) the first day of the period in respect of which earnings are credited,

as the case may be.

(1C) In a case to which paragraph (1A)(c) or (d) applies, the period of 28 weeks begins on the day on which the person is first paid income support or on the first day of the period in respect of which earnings are credited, as the case may be.”;

(c) in paragraph (4)—

(i) at the end of sub-paragraph (a), omit “or”;

(ii) after sub-paragraph (b), add—

“; or

(c) in respect of care provided by a relative of a child wholly or mainly in the child’s home.”;

(d) in paragraph (5)—

(i) omit sub-paragraphs (a), (c) and (d);

(ii) after sub-paragraph (h), add—

“; or

(i) by a person prescribed in regulations made pursuant to section 12(4) of the Tax Credits Act 2002.”;

(e) in paragraph (11)(b)—

(i) for “incurred” substitute “is incurring”;

(ii) omit “in that week”;

(f) omit paragraph (14).

(7) After regulation 19 (treatment of child care charges), insert—

“Calculation of average weekly income from tax credits

19A.— (1) This regulation applies where a claimant receives a tax credit.

(2) Where this regulation applies, the period over which a tax credit is to be taken into account shall be the period set out in paragraph (3).

(3) Where the instalment in respect of which payment of a tax credit is made is—

(a) a daily instalment, the period is 1 day, being the day in respect of which the instalment is paid;

(b) a weekly instalment, the period is 7 days, ending on the day on which the instalment is due to be paid;

(c) a two weekly instalment, the period is 14 days, commencing 6 days before the day on which the instalment is due to be paid;

(d) a four weekly instalment, the period is 28 days, ending on the day on which the instalment is due to be paid.

(4) For the purposes of this regulation “tax credit” means working tax credit.”.

(8) In paragraph 13 of Schedule 4 (sums to be disregarded in the calculation of income other than earnings)—

(a) in sub-paragraph (1), after “sub-paragraph (2)” insert “or (2A)”;

(b) after sub-paragraph (2), insert—

“(2A) Subject to sub-paragraph (3)—

(a) a charitable payment;

(b) a voluntary payment;

(c) a payment (not falling within sub-paragraph (a) or (b) above) from a trust whose funds are derived from a payment made in consequence of any personal injury to the claimant.”;

(c) in sub-paragraph (3) for “Sub-paragraph (1) and (2)” substitute “Sub-paragraphs (1) to (2A)”;

(d) in sub-paragraph (6)—

(i) omit paragraphs (a) to (c); and

(ii) in paragraph (e) for “sub-paragraphs (a) to (d)” substitute “paragraph (d)”.

(1)

S.I. 2003/325. The relevant amending instrument is S.I. 2003/2275.

(2)

Regulation 13A was inserted by S.I. 1994/1924.

(3)

Sections 30A to 30E were inserted by the Social Security (Incapacity for Work) Act 1994 (c. 18). Section 30A(1) was substituted by, and section 30A(2) was amended by, the Welfare Reform and Pensions Act 1999 (c. 30). Section 30B(3) was amended by the Pensions Act 1995 (c. 26) and the Tax Credits Act 2002 (c. 21). Section 30C(5) was amended by the Tax Credits Act 1999 (c. 10) and substituted by the Tax Credits Act 2002.

(4)

S.I. 1987/1967. Regulation 4ZA was inserted by S.I. 1996/206. Schedule 1B was inserted by S.I. 1996/1517. The relevant amending instruments are S.I. 1997/2197, S.I. 2000/636, S.I. 2000/1981, S.I. 2001/3070 and S.I. 2002/2689.

(5)

S.I. 1975/556. The relevant amending instruments are S.I. 2000/3120 and S.I. 2003/521.

(6)

Paragraph (2ZB) was substituted by S.I. 1999/920.

(7)

Paragraph (2ZC) was substituted by S.I. 1999/920.

(8)

2002 c. 21.

(9)

Paragraph (7) was inserted by S.I. 2001/1864.

(10)

Paragraph (8) was inserted by S.I. 2001/1864.