The Social Security (Miscellaneous Amendments) (No. 5) Regulations 2007

Amendment of the Income Support (General) Regulations 1987

5.—(1) The Income Support (General) Regulations 1987 are amended as follows.

(2) In regulation 2(1) (interpretation)—

(a) in the definition of “maternity leave” for “Part III of the Employment Protection (Consolidation) Act 1978” substitute “Part VIII of the Employment Rights Act 1996(1)”;

(b) at the appropriate place insert the following definition—

““starting rate”, where it relates to the rate of tax, has the same meaning as in the Income Tax Act 2007(2) (see section 989 of that Act);”.

(3) In regulation 5 (persons treated as engaged in remunerative work)(3)—

(a) in paragraph (5) for “A person” substitute “Subject to paragraph (5A), a person”;

(b) after that paragraph insert—

“(5A) Paragraph (5) shall not apply to earnings disregarded under paragraph 1 of Schedule 8 to these regulations.”.

(4) In regulation 22A(1)(a) (reduction in applicable amount where the claimant is appealing against a decision which embodies a determination that he is not incapable of work)(4) omit “, 16, 17(c)(i) or (d)(i)”.

(5) In regulation 29(4B)(a) (calculation of earnings derived from employed earner’s employment and income other than earnings)(5) for “paragraph 8(1)(c) of Schedule 14 to the Employment Protection (Consolidation) Act 1978” substitute “section 227(1) of the Employment Rights Act 1996”.

(6) In regulation 35 (earnings of employed earners)(6)—

(a) in paragraph (1)—

(i) in sub-paragraph (g), for “68(2) or 71(2)(a) of the Employment Protection (Consolidation) Act 1978 (remedies for unfair dismissal and compensation)” substitute “112(4) or 117(3)(a) of the Employment Rights Act 1996 (the remedies: orders and compensation, enforcement of order and compensation)”;

(ii) after sub-paragraph (g) insert—

“(gg) any payment or remuneration made under section 28, 34, 64, 68 or 70 of the Employment Rights Act 1996 (right to guarantee payments, remuneration on suspension on medical or maternity grounds, complaints to employment tribunals);”;

(iii) in sub-paragraph (h) for “18(2) of the Social Security (Miscellaneous Provisions) Act 1977” substitute “112(3) of the Contributions and Benefits Act”;

(b) in paragraph (3)(a)(iii) for “81(1) of the Employment Protection (Consolidation) Act 1978” substitute “135(1) of the Employment Rights Act 1996”;

(c) in paragraph (3)(b) for “paragraph 8(1)(c) of Schedule 14 to the Employment Protection (Consolidation) Act 1978” substitute “section 227(1) of the Employment Rights Act 1996”.

(7) In regulation 39(1) (deduction of tax and contributions for self-employed earners)(7) for “lower rate”, wherever it occurs, substitute “starting rate”.

(8) In regulation 39D (deduction in respect of tax for participants in the self-employment route)(8) in paragraphs (1)(c) and (2) for “lower rate”, wherever it occurs, substitute “starting rate”.

(9) In regulation 42 (notional income)(9)—

(a) at the end of paragraph (6A)(c)(ii) add—

“; or

(d)

to a claimant who is participating in a work placement approved by the Secretary of State (or a person providing services to the Secretary of State) before the placement starts.

(6AA) In paragraph (6A)(d) “work placement” means practical work experience which is not undertaken in expectation of payment.”;

(b) in paragraph (8)(a) for “lower rate”, wherever it occurs, substitute “starting rate”.

(10) For regulation 49 (calculation of capital in the United Kingdom)(10) substitute—

“Calculation of capital in the United Kingdom

49.   Capital which a claimant possesses in the United Kingdom shall be calculated at its current market or surrender value less—

(a) where there would be expenses attributable to sale, 10 per cent; and

(b) the amount of any incumbrance secured on it.”.

(11) In Schedule 8 (sums to be disregarded in the calculation of earnings)(11)—

(a) for paragraph 1 substitute—

“1.— (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, other than items to which sub-paragraph (2) applies, paid or due to be paid from that employment which terminated before the first day of entitlement to income support;

(b) any earnings, other than a payment of the nature described in regulation 35(1)(e), paid or due to be paid from that employment which has not been terminated where the claimant is not—

(i) engaged in remunerative work, or

(ii) suspended from his employment.

(2) This sub-paragraph applies to—

(a) any payment of the nature described in regulation 35(1)(e); and

(b) any award, sum or payment of the nature described in—

(i) regulation 35(1)(g) or (h), or

(ii) section 34 or 70 of the Employment Rights Act 1996 (guarantee payments and suspension from work: complaints to employment tribunals)(12),

including any payment made following the settlement of a complaint to an employment tribunal or of court proceedings.”;

(b) for paragraph 2 substitute—

“2.— (1) In the case of a claimant to whom this paragraph applies, any earnings (other than a payment of the nature described in regulation 35(1)(e)) which relate to employment which ceased before the first day of entitlement to income support whether or not that employment has terminated.

(2) This paragraph applies to a claimant who has been engaged in part-time employment as an employed earner or, had the employment been in Great Britain, would have been so engaged; but it does not apply to a claimant who has been suspended from his employment.”.

(12) In paragraph 19 of Schedule 9 (sums to be disregarded in the calculation of income other than earnings)(13) for sub-paragraphs (a) and (b) substitute—

“(a) where the aggregate of any payments made in respect of any one week in respect of the occupation of the dwelling by that person or a member of his family, or by that person and a member of his family, is less than £20, the whole of that amount; or

(b) where the aggregate of any such payments is £20 or more per week, £20.”.

(1)

1996 c.18.

(2)

2007 c.3.

(3)

Relevant amending instruments are S.I. 1988/2022, 1989/1323.

(4)

Regulation 22A was inserted by S.I. 1996/2066.

(5)

Paragraph (4B) inserted by S.I. 1989/1323.

(6)

Relevant amending instrument is S.I. 1989/1323.

(7)

Relevant amending instruments are S.I. 1992/2155, 1994/2139, 2007/1749.

(8)

Inserted by S.I.1998/1174 and amended by S.I. 2007/1749.

(9)

Relevant amending instruments are S.I. 1992/2155, 1994/2139, 1999/2554, 2007/1749.

(10)

Relevant amending instrument is S.I. 1999/3178.

(11)

Relevant amending instruments are: S.I 1988/663, 1988/ 1323, 1988/1445, 1993/2119, 2002/3019.

(12)

1996 c.18.

(13)

Paragraph 19 was substituted by S.I. 1994/527 and amended by S.I. 1995/516 and 2007/688.