The Council Tax Reduction Schemes (Prescribed Requirements) (England) Regulations 2012

regulation 14(2)(1)

SCHEDULE 4 E+W Sums disregarded from applicant’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— E+W

(a) £25 in the case of a lone parent;

(b) £20 in any other case.

Commencement Information

I1 Sch. 4 para. 1 in force at 27.11.2012, see reg. 1(1)

2.  In a case where an applicant is a lone parent, £25 of earnings. E+W

Commencement Information

I2 Sch. 4 para. 2 in force at 27.11.2012, see reg. 1(1)

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

(2) This paragraph applies to employment—

(a) as a part-time fire-fighter employed by a fire and rescue authority constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004(2) or a scheme to which section 4 of that Act applies;

[F1 (ab) as a part-time fire-fighter employed by a fire and rescue authority created by an order under section 4A of the Fire and Rescue Services Act 2004;]

[F2 (b) a part-time fire-fighter employed by the Scottish Fire and Rescue Service established under section 1A of the Fire (Scotland) Act 2005;]

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

(d) in the manning or launching of a lifeboat if the employment is part-time;

(e) as a member of any territorial or reserve force prescribed in Part I of Schedule 6 to the Social Security (Contributions) Regulations 2001(3).

(3) If—

(a) any of the earnings of the applicant or, if he has a partner, his partner, or both of them, are disregarded under sub-paragraph (1); and

(b) either of them has, or both of them have, other earnings,

so much of those other earnings as would not, in the aggregate with the earnings disregarded under that sub-paragraph, exceed £20.

Textual Amendments

F1 Sch. 4 para. 3(2)(ab) inserted (1.10.2017) by The Fire and Rescue Authority (Police and Crime Commissioner) (Application of Local Policing Provisions, Inspection, Powers to Trade and Consequential Amendments) Order 2017 (S.I. 2017/863), art. 1(1), Sch. 2 para. 8(2)

F2 Sch. 4 para. 3(2)(b) substituted (13.1.2014 with application in accordance with reg. 1(2) of the amending S.I.) by The Council Tax Reduction Schemes (Prescribed Requirements) (England) (Amendment) Regulations 2013 (S.I. 2013/3181), regs. 1(1), 2(10)

Commencement Information

I3 Sch. 4 para. 3 in force at 27.11.2012, see reg. 1(1)

4.—(1) If the applicant or, if he has a partner, his partner is a carer, or both are carers, £20 of any earnings received from his or their employment. E+W

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

(3) In this paragraph the applicant or his partner is a carer if paragraph 9 of Part 3 of Schedule 2 (amount applicable for carers) is satisfied in respect of him.

Commencement Information

I4 Sch. 4 para. 4 in force at 27.11.2012, see reg. 1(1)

5.—(1) £20 is disregarded if the applicant or, if he has a partner, his partner— E+W

(a) is in receipt of—

(i) long-term incapacity benefit under section 30A of the SSCBA;

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

(iii) attendance allowance under sections 64 to 70 of that Act;

(iv) disability living allowance;

(v) personal independence payment;

(vi) an AFIP;

(vii) any mobility supplement under article 20 of the Naval, Military and Air Forces Etc (Disablement and Death) Service Pensions Order 2006 (including such a supplement by virtue of any other scheme or order) or under article 25A of the Personal Injuries (Civilians) Scheme 1983(4);

(viii) the disability element or the severe disability element of working tax credit under Schedule 2 to the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002(5); or

(ix) main phase employment and support allowance; or

(b) is or are registered F3 ... [F4 as severely sight-impaired in a register kept by a local authority in England under section 77(1) of the Care Act 2014 (registers of sight-impaired adults)] F5 ..., in Scotland, has been certified as blind and in consequence is registered in a register maintained by or on behalf of a council constituted under section 2 of the Local Government (Scotland) Act 1994(6) [F6 or is registered as severely sight-impaired in a register kept by a local authority in Wales under section 18(1) of the Social Services and Well-being (Wales) Act 2014]; or

(c) is, or is treated as, incapable of work in accordance with the provisions of, and regulations made under, Part 12A of the SSCBA(7) (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 an applicant who is terminally ill within the meaning of section 30B(4) of the SSCBA(8), 196 days;

(ii) in any other case, 364 days; or

(d) has, or is treated as having, limited capacity for work within the meaning of section 1(4) of the Welfare Reform Act 2007 or limited capability for work-related activity within the meaning of section 2(5) of that Act and either—

(i) the assessment phase as defined in section 24(2) of the Welfare Reform Act 2007 has ended; or

(ii) regulation 7 of the Employment and Support Allowance Regulations 2008(9) [F7 or regulation 7 of the Employment and Support Allowance Regulations 2013] (circumstances where the condition that the assessment phase has ended before entitlement to the support component F8 ... arising does not apply) applies.

(2) Subject to sub-paragraph (3), £20 is disregarded if the applicant or, if he has a partner, his partner has, within a period of 8 weeks ending on the day in respect of which the applicant or his partner attains the qualifying age for state pension credit, had an award of housing benefit or council tax benefit or was in receipt of a reduction under an authority’s scheme (including under another authority’s scheme) and—

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

(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—

(a) entitlement to housing benefit; or

(b) receipt of a reduction under an authority’s (including under another authority’s) scheme; or

(c) employment,

following the first day in respect of which that benefit is awarded or the reduction given under that scheme.

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

Textual Amendments

F3 Words in Sch. 4 para. 5(1)(b) omitted (6.4.2016) by virtue of The Social Services and Well-being (Wales) Act 2014 (Consequential Amendments) (Secondary Legislation) Regulations 2016 (S.I. 2016/211), reg. 1(2), Sch. 3 para. 137(a)

F4 Words in Sch. 4 para. 5(1)(b) inserted (1.4.2015) by The Care Act 2014 (Consequential Amendments) (Secondary Legislation) Order 2015 (S.I. 2015/643), art. 1(2), Sch. para. 36(7)(b) (with art. 4)

F5 Word in Sch. 4 para. 5(1)(b) omitted (6.4.2016) by virtue of The Social Services and Well-being (Wales) Act 2014 (Consequential Amendments) (Secondary Legislation) Regulations 2016 (S.I. 2016/211), reg. 1(2), Sch. 3 para. 137(b)

F6 Words in Sch. 4 para. 5(1)(b) inserted (6.4.2016) by The Social Services and Well-being (Wales) Act 2014 (Consequential Amendments) (Secondary Legislation) Regulations 2016 (S.I. 2016/211), reg. 1(2), Sch. 3 para. 137(c)

F7 Words in Sch. 4 para. 5(1)(d)(ii) inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Council Tax Reduction Schemes (Prescribed Requirements) (England) (Amendment) (No. 2) Regulations 2014 (S.I. 2014/3312), regs. 1(1), 2(8)(a)

F8 Words in Sch. 4 para. 5(1)(d)(ii) omitted (3.4.2017) by virtue of The Employment and Support Allowance and Universal Credit (Miscellaneous Amendments and Transitional and Savings Provisions) Regulations 2017 (S.I. 2017/204), reg. 1, Sch. 1 para. 8(4) (with Sch. 2 paras. 1-7)

Commencement Information

I5 Sch. 4 para. 5 in force at 27.11.2012, see reg. 1(1)

6.—(1) Where— E+W

(a) the applicant (or if the applicant is a member of a couple, at least one member of that couple) is a person to whom sub-paragraph (5) applies;

(b) the Secretary of State is satisfied that that person is undertaking exempt work as defined in sub-paragraph (6); and

(c) paragraph 13 of Schedule 1 does not apply,

the amount specified in sub-paragraph (7) (“the specified amount”).

(2) Where this paragraph applies, paragraphs 1 to 5 and 7 do not apply; but in any case where the applicant is a lone parent, and the specified amount would be less than the amount specified in paragraph 2, then paragraph 2 applies instead of this paragraph.

(3) Notwithstanding paragraph 11 of Schedule 1 (calculation of income and capital of members applicant’s family and of a polygamous marriage), if sub-paragraph (1) applies to one member of a couple (“A”) it shall not apply to the other member of that couple (“B”) except to the extent provided in sub-paragraph (4).

(4) Where A’s earnings are less than the specified amount, there must also be disregarded so much of B’s earnings as would not when aggregated with A’s earnings exceed the specified amount; but the amount of B’s earnings which may be disregarded under this sub-paragraph is limited to a maximum of £20 unless the Secretary of State is satisfied that B is also undertaking exempt work.

(5) This sub-paragraph applies to a person who is—

(a) in receipt of a contributory employment and support allowance;

(b) in receipt of incapacity benefit;

(c) in receipt of severe disablement allowance;

(d) being credited with earnings on the grounds of incapacity for work or limited capability for work under regulation 8B of the Social Security (Credits) Regulations 1975(10).

(6) “Exempt work” means work of the kind described in—

(a) regulation 45(2), (3) or (4) of the Employment and Support Allowance Regulations 2008 [F9 or regulation 39(1)(a), (b) or (c) of the Employment and Support Allowance Regulations 2013]; or (as the case may be)

(b) regulation 17(2), (3) or (4) of the Social Security (Incapacity for Work) (General) Regulations 1995,

and, in determining for the purposes of this paragraph whether an applicant or a member of a couple is undertaking any type of exempt work, it is immaterial whether that person or their partner is also undertaking other work.

(7) The specified amount is the amount of money from time to time mentioned in any provision referred to in sub-paragraph (6) by virtue of which the work referred to in sub-paragraph (1) is exempt (or, where more than one such provision is relevant and those provisions mention different amounts of money, the highest of those amounts).

Textual Amendments

F9 Words in Sch. 4 para. 6(6)(a) inserted (with application in accordance with reg. 1(2) of the amending S.I.) by The Council Tax Reduction Schemes (Prescribed Requirements) (England) (Amendment) (No. 2) Regulations 2014 (S.I. 2014/3312), regs. 1(1), 2(8)(b)

Commencement Information

I6 Sch. 4 para. 6 in force at 27.11.2012, see reg. 1(1)

7.  Any amount or the balance of any amount which would fall to be disregarded under paragraph 18 or 19 of Schedule 5 to these Regulations had the applicant’s income which does not consist of earnings been sufficient to entitle him to the full disregarded thereunder. E+W

Commencement Information

I7 Sch. 4 para. 7 in force at 27.11.2012, see reg. 1(1)

8.  Except where the applicant or his partner qualifies for a £20 disregard under the preceding provisions of this Schedule— E+W

(a) £5 must be disregarded if an applicant who has no partner has earnings;

(b) £10 must be disregarded if an applicant who has a partner has earnings.

Commencement Information

I8 Sch. 4 para. 8 in force at 27.11.2012, see reg. 1(1)

9.  Any earnings, other than earnings referred to in paragraph 17(9)(b) of Schedule 1, derived from employment which ended before the day in respect of which the applicant first satisfies the conditions for entitlement to a reduction under an authority’s scheme. E+W

Commencement Information

I9 Sch. 4 para. 9 in force at 27.11.2012, see reg. 1(1)

10.—(1) In a case where the applicant 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 must be increased by £17.10. E+W

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

(a) the applicant, or if he has a partner, either the applicant or his partner, is a person to whom regulation 20(1)(c) of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 applies; or

(b) the applicant—

(i) is, or any partner of his is, 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; and

[F10 (bb) his family includes at least one child or young person;]

(iii) is a lone parent who is engaged in remunerative work for on average not less than 16 hours per week; or

(iv) is, or if he has a partner, one of them is, engaged in remunerative work for on average not less than 16 hours per week and paragraph 5(1) above is satisfied in respect of that person.

(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 paragraph 24(1)(c) of Schedule 1 (calculation of income on a weekly basis); and

(c) £17.10.

(4) The provisions of regulation 10 (remunerative work) are to apply in determining whether or not a person works for on average not fewer 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.

Textual Amendments

F10 Sch. 4 para. 10(2)(b)(ii)(bb) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Council Tax Reduction Schemes (Prescribed Requirements) (England) (Amendment) Regulations 2015 (S.I. 2015/2041), regs. 1(1), 2(6)

Commencement Information

I10 Sch. 4 para. 10 in force at 27.11.2012, see reg. 1(1)

11.  Where a payment of earnings is made in a currency other than Sterling, any banking charge or commission payable in converting to that payment into Sterling. E+W

Commencement Information

I11 Sch. 4 para. 11 in force at 27.11.2012, see reg. 1(1)

(1)

And see also paragraph 17 of Schedule 1.

(2)

2004 c. 21; amendments made to sections 2 and 4 are not relevant to these Regulations.

(3)

S.I. 2001/1004.

(4)

S.I. 1983/686.

(5)

S.I. 2002/2005.

(6)

1994 c. 39; section 2 was amended by paragraph 232 of Schedule 22 to the Environment Act 1995 (c. 39).

(7)

Part 12A was inserted by section 5 of the Social Security (Incapacity for Work) Act 1994 (c. 18) and amended by the Welfare Reform and Pensions Act 1999 (c. 30). It was repealed by sections 28 and 67 of, and paragraph 9 of Schedule 3 and Schedule 8 to, the Welfare Reform Act 2007 (c. 5) but those provisions are not yet in force.

(8)

Section 30B(4) was inserted by section 2 of the Social Security (Incapacity for Work) Act 1994 and amended by section 91 of, and paragraphs 3 and 4 of Schedule 9 to, the Welfare Reform Act 2012, but those amendments are not yet in force. It has also been repealed by paragraph 9 of Schedule 3 to the Welfare Reform Act 2007 but those provisions are not yet in force.

(9)

S.I. 2008/794; regulation 7 has been amended by S.I. 2008/3051, S.I. 2010/840, S.I. 2012/874 and S.I. 2012/919.

(10)

S.I. 1975/556; regulation 8B was inserted by S.I. 1996/2367. It has been amended by S.I. 2000/3120, S.I. 2003/521, S.I. 2008/1534, S.I. 2010/385 and S.I. 2012/913.