SCHEDULE 3SUMS TO BE DISREGARDED IN THE DETERMINATION OF INCOME OTHER THAN EARNINGS

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1

Subject to sub-paragraph (2), any payment received under an insurance policy taken out to insure against the risk of being unable to maintain repayments –

a

on a loan which is secured on the dwelling which the relevant person occupies as his home; or

b

under a regulated agreement as defined for the purposes of the Consumer Credit Act 1974136 or under a hire-purchase agreement or a conditional sale agreement as defined in section 5 of the Consumer Protection Act (Northern Ireland) 1965137.

2

A payment referred to in sub-paragraph (1) shall only be disregarded to the extent that the payment received under that policy does not exceed the amounts, calculated on a weekly basis, which are used to –

a

maintain the repayments referred to in sub-paragraph (l)(a) or, as the case may be, (b); and

b

meet any amount due by way of premiums on –

i

that policy; or

ii

in a case to which sub-paragraph (l)(a) applies, an insurance policy taken out to insure against loss or damage to any building or part of a building which is occupied by the relevant person as his home and which is required as a condition of the loan referred to in sub-paragraph (l)(a).