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

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Social Security (Miscellaneous Amendments No. 5) Regulations (Northern Ireland) 2007 and, subject to paragraphs (2) to (4), shall come into operation on 1st October 2007.

(2) Regulation 4(12)(a) and (13)(b), 7(14)(a) and (15)(b) and 9(12)(a) and (13)(b) shall come into operation on 7th April 2008.

(3) Regulations 4(12)(b) and 7(14)(b) in so far as they relate to a particular beneficiary, shall come into operation on the first day of the first benefit week to commence for that beneficiary on or after 7th April 2008.

(4) Regulation 9(12)(b), in relation to a case where rent is payable at intervals of a week or any multiple thereof, shall come into operation on 7th April 2008, and in relation to any other case, on 1st April 2008.

(5) In this regulation—

“benefit week” has the same meaning as in—

(a)

regulation 2(1)(1) of the Income Support (General) Regulations (Northern Ireland) 1987(2) so far as it relates to regulation 4(12)(b);

(b)

regulation 1(2)(3) of the Jobseeker’s Allowance Regulations (Northern Ireland) 1996(4) so far as it relates to regulation 7(14)(b).

(6) The Interpretation Act (Northern Ireland) 1954(5) shall apply to these Regulations as it applies to an Act of the Assembly.

Amendment of the Social Security (Invalid Care Allowance) Regulations

2.  In regulation 8(1) of the Social Security (Invalid Care Allowance) Regulations (Northern Ireland) 1976(6) (circumstances in which a person is or is not to be treated as gainfully employed) for “an amount equal to the lower earnings limit in force by virtue of regulations under section 5 of that Act on the last day of that week” substitute “£95·00”.

Amendment of the Social Security (General Benefit) Regulations

3.  In regulation 14 of the Social Security (General Benefit) Regulations (Northern Ireland) 1984(7) (earnings level for the purpose of unemployability supplement) for “£4,472·00” substitute “£4,602·00”.

Amendment of the Income Support (General) Regulations

4.—(1) The Income Support (General) Regulations (Northern Ireland) 1987 are amended in accordance with paragraphs (2) to (13).

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

(a) omit the definition of “lower rate”(8);

(b) in the definition of “maternity leave”(9) for “Articles 15 and 28 to 30 of the Industrial Relations (No. 2) (Northern Ireland) Order 1976” substitute “Part IX of the Employment Rights (Northern Ireland) Order 1996(10)”; and

(c) after the definition of “sports award”(11) insert—

““starting rate”, where it relates to the rate of tax, has the same meaning as in the Income Tax Act 2007(12) (see section 989 of that Act);”.

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

(a) in paragraph (5)(13) for “A person” substitute “Subject to paragraph (5A), a person”; and

(b) after paragraph (5) 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)(14) (reduction in applicable amount where the claimant is appealing against a decision which embodies a determination that he is not incapable of work) for “11, 12, 14, 15(c)(i) or (d)(i)” substitute “11 or 12”.

(5) In regulation 29(4B)(a)(15) (calculation of earnings derived from employed earner’s employment and income other than earnings) for “paragraph 5(4) of Schedule 3 to the Contracts of Employment and Redundancy Payments Act (Northern Ireland) 1965” substitute “Article 23(1) of the Employment Rights (Northern Ireland) Order 1996”.

(6) In regulation 35(16) (earnings of employed earners)—

(a) in paragraph (1)—

(i) in sub-paragraph (g) for “Article 32(2)(a) or (5) of the Industrial Relations (Northern Ireland) Order 1976 (remedies for unfair dismissal and compensation)” substitute “Article 146(4) or 151(3)(a) of the Employment Rights (Northern Ireland) Order 1996 (the remedies: orders and compensation, enforcement of order and compensation)”;

(ii) after sub-paragraph (g) insert—

“(gg) any payment or remuneration made under Article 60, 66, 96, 100 or 102 of the Employment Rights (Northern Ireland) Order 1996 (right to guarantee payments, remuneration on suspension on medical or maternity grounds, complaints to industrial tribunals);”, and

(iii) in sub-paragraph (h) for “Article 14(2) of the Social Security (Miscellaneous Provisions) (Northern Ireland) Order 1977 (certain sums to be earnings for social security purposes)” substitute “section 112(3) of the Contributions and Benefits Act (certain sums to be earnings)”; and

(b) in paragraph (3)—

(i) in sub-paragraph (a)(iii)(17) for “section 11(1) of the Contracts of Employment and Redundancy Payments Act (Northern Ireland) 1965” substitute “Article 170(1) of the Employment Rights (Northern Ireland) Order 1996”, and

(ii) in sub-paragraph (b) for “paragraph 5(4) of Schedule 3 to the Contracts of Employment and Redundancy Payments Act (Northern Ireland) 1965” substitute “Article 23(1) of the Employment Rights (Northern Ireland) Order 1996”.

(7) In regulation 39(1)(18) (deduction of tax and contributions for self-employed earners) for “lower rate”, in each place where it occurs, substitute “starting rate”.

(8) In regulation 39D (deduction in respect of tax for participants in the self-employment route) in paragraphs (1)(c) and (2)(19) for “lower rate”, in each place where it occurs, substitute “starting rate”.

(9) In regulation 42 (notional income)—

(a) omit “or” at the end of (6A)(b)(ii);

(b) at the end of paragraph (6A)(c)(20) add—

“; or

(d) to a claimant who is participating in a work placement approved by the Department for Employment and Learning (or a person providing services to that Department) before the placement starts.

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

(c) in paragraph (8)(a)(21) for “lower rate”, in each place where it occurs, substitute “starting rate”.

(10) For regulation 49(22) (calculation of capital in the United Kingdom) 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 encumbrance secured on it.”.

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

(a) for paragraph 1(23) 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 Northern Ireland, 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) or (i) (in so far as it applies to 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) or (i) (in so far as it applies to regulation 35(1)(e)); and

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

(i) regulation 35(1)(g), (h) or (i) (in so far as it applies to regulation 35(1)(g) or (h)), or

(ii) Article 66 or 102 of the Employment Rights (Northern Ireland) Order 1996 (guarantee payments and suspension from work: complaints to industrial tribunals),

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

(b) for paragraph 2(24) 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) or (i) (in so far as it applies to 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 Northern Ireland, would have been so engaged; but it does not apply to a claimant who has been suspended from his employment.”.

(12) In Schedule 9 (sums to be disregarded in the calculation of income other than earnings)—

(a) in paragraph 11(1)(25) at the end add “or a payment corresponding to such an education maintenance allowance made pursuant to section 3 of the Employment and Training Act (Northern Ireland) 1950(26)”;

(b) in paragraph 19(27) 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.”; and

(c) in paragraph 46(28) at the end add “or reduction of liability for rates under Article 30A of the Rates (Northern Ireland) Order 1977(29) (rate relief in respect of dwellings)”.

(13) In Schedule 10 (capital to be disregarded)—

(a) in paragraph 36(30) after “(reduction of liability for council tax)” insert “or reduction of liability for rates under Article 30A of the Rates (Northern Ireland) Order 1977 (rate relief in respect of dwellings)”; and

(b) in paragraph 56(31) at the end add “or a payment corresponding to such an education maintenance allowance made pursuant to section 3 of the Employment and Training Act (Northern Ireland) 1950”.

Amendment of the Social Security (Incapacity Benefit) Regulations

5.—(1) The Social Security (Incapacity Benefit) Regulations (Northern Ireland) 1994(32) are amended in accordance with paragraphs (2) and (3).

(2) Renumber regulation 3A(33) (days to be treated as days of incapacity for work) as paragraph (1) of that regulation and after that paragraph add—

“(2) Where—

(a) any day was, as a result of official error, a day of incapacity for work in a period of incapacity for work for the purposes of the previous entitlement to incapacity benefit referred to in regulation 8D(2)(a) of the Social Security (Credits) Regulations (Northern Ireland) 1975(34) (credits for the purposes of entitlement to incapacity benefit following official error); and

(b) that official error derived from the failure to transpose correctly information relating to credits for incapacity for work or approved training in the tax years from 1993-94 to 2007-08 from the Department for Work and Pensions’ Pension Strategy Computer System to Her Majesty’s Revenue and Customs’ computer system (National Insurance Recording System 2) or from related clerical procedures,

that day shall be treated as a day of incapacity for work for the purposes of the later claim referred to in paragraph (2)(d) of that regulation.

(3) In this regulation—

“Commissioner” means the Chief Social Security Commissioner or any other Social Security Commissioner and includes a tribunal of two or more Commissioners constituted under Article 16(7) of the Social Security (Northern Ireland) Order 1998(35);

“credits for incapacity for work or approved training” means earnings credited pursuant to the Social Security (Credits) Regulations (Northern Ireland) 1975 for incapacity for work or approved training(36);

“official error” means an error made by—

(a)

an officer of the Department or the Department for Work and Pensions or an officer of Revenue and Customs acting as such which no person outside the Department or Her Majesty’s Revenue and Customs caused or to which no person outside the Department or Her Majesty’s Revenue and Customs materially contributed; or

(b)

a person employed by a service provider and to which no person who was not so employed materially contributed,

but excludes any error of law which is shown to have been an error by virtue of a subsequent decision of a Commissioner or the court;

“service provider” means a person providing services to the Department, the Department for Work and Pensions or to Her Majesty’s Revenue and Customs.”.

(3) In regulation 7(37) (limit of earnings from councillor’s allowance) for “£86·00” substitute “£88·50”.

Amendment of the Social Security (Incapacity for Work) (General) Regulations

6.  In regulation 17(3) and (4) of the Social Security (Incapacity for Work) (General) Regulations (Northern Ireland) 1995(38) (exempt work) for “£86·00” substitute “£88·50”.

Amendment of the Jobseeker’s Allowance Regulations

7.—(1) The Jobseeker’s Allowance Regulations are amended in accordance with paragraphs (2) to (15).

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

(a) omit the definition of “lower rate”;

(b) in the definition of “maternity leave” for “Articles 14 to 32 of the Industrial Relations (No. 2) (Northern Ireland) Order 1976” substitute “Part IX of the Employment Rights (Northern Ireland) Order 1996(39)”; and

(c) after the definition of “sports award”(40) insert—

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

(3) In regulation 5(3) (exceptions to requirement to be available immediately: carers, voluntary workers, persons providing a service and persons under an obligation to provide notice) for “section 1 of the Contracts of Employment and Redundancy Payments Act (Northern Ireland) 1965” substitute “Article 118 of the Employment Rights (Northern Ireland) Order 1996”.

(4) In regulation 52 (persons treated as engaged in remunerative work)—

(a) in paragraph (3) for “A person” substitute “Subject to paragraph (3A), a person”; and

(b) after paragraph (3) insert—

“(3A) Paragraph (3) shall not apply to earnings disregarded under paragraph 1 of Schedule 5 to these regulations.”.

(5) In regulation 71 (voluntary redundancy)—

(a) in paragraph (1)(c)(41) for “section 16(1) of the Contracts of Employment and Redundancy Payments Act (Northern Ireland) 1965” substitute “Article 183 of the Employment Rights (Northern Ireland) Order 1996”; and

(b) in paragraph (2) for “section 11(2) of the Contracts of Employment and Redundancy Payments Act (Northern Ireland) 1965” substitute “Article 174(1) of the Employment Rights (Northern Ireland) Order 1996”.

(6) In regulation 94 (calculation of earnings derived from employed earner’s employment and income other than earnings)—

(a) in paragraph (6)(b) for “Article 49 of the Industrial Relations (Northern Ireland) Order 1976” substitute “Article 216 of the Employment Rights (Northern Ireland) Order 1996”; and

(b) in paragraph (8)(c)(ii) for “paragraph 5(4) of Schedule 3 to the Contracts of Employment and Redundancy Payments Act (Northern Ireland) 1965” substitute “Article 23(1) of the Employment Rights (Northern Ireland) Order 1996”.

(7) In regulation 98 (earnings of employed earners)—

(a) in paragraph (1)—

(i) in sub-paragraph (f)(42) for “Article 31, 32(2)(a) or (5), 39 or 41(1) to (3) of the Industrial Relations (Northern Ireland) Order 1976 (order for reinstatement or re-engagement, compensation for unfair dismissal and interim relief pending determination of complaint)” substitute “Articles 146(4), 147, 151(3)(a), 163, 166 and 167 of the Employment Rights (Northern Ireland) Order 1996 (the remedies: orders and compensation, the orders, enforcement of order and compensation, interim relief)”;

(ii) in sub-paragraph (ff) for “Article 3, 9 or 23 of the Industrial Relations (No.2) (Northern Ireland) Order 1976 (right to guarantee payment, right to remuneration on suspension on medical grounds and payments to employees out of maternity pay fund)” substitute “Article 60, 66, 96, 100 or 102 of the Employment Rights (Northern Ireland) Order 1996 (right to guarantee payments, remuneration on suspension on medical or maternity grounds, complaints to industrial tribunals)”, and

(iii) in sub paragraph (g) for “Article 33, 34, 39(1) to (10), 39A, 40, 40A, 41, 51 or 53 of the Industrial Relations (Northern Ireland) Order 1976 (compensation for unfair dismissal or redundancy on grounds of involvement in trade union activities)” substitute “Article 154(1), 156(3), 163 to 167, 217 or 220 of the Employment Rights (Northern Ireland) Order 1996 (compensation for unfair dismissal, interim relief, complaint and protective award, complaint by employee to industrial tribunal)”; and

(b) in paragraph 2(f) for “section 11(1) of the Contracts of Employment and Redundancy Payments Act (Northern Ireland) 1965” substitute “Article 170(1) of the Employment Rights (Northern Ireland) Order 1996”.

(8) In regulation 102(1)(43) (deduction of tax and contributions for self-employed earners) for “lower rate”, in each place where it occurs, substitute “starting rate”.

(9) In regulation 102D(44) (deduction in respect of tax for participants in the self-employment route) in paragraphs (1)(c) and (2) for “lower rate”, in each place where it occurs, substitute “starting rate”.

(10) In regulation 105 (notional income)—

(a) at the end of paragraph (13A)(b)(ii)(45) add—

“; or

(c) to a claimant who is participating in a work placement approved by the Department for Employment and Learning (or a person providing services to that Department) before the placement starts.”;

(b) in paragraph (15)(a)(46) for “lower rate”, in each place where it occurs, substitute “starting rate”; and

(c) in paragraph (17) after the definition of “resources” insert—

““work placement” means practical work experience which is not undertaken in expectation of payment.”.

(11) For regulation 111(47) (calculation of capital in the United Kingdom) substitute—

“Calculation of capital in the United Kingdom

111.   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 the sale, 10 per cent.; and

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

(12) In regulation 163(4)(c) (calculation of earnings) in added paragraph (4) for “lower rate” substitute “starting rate”.

(13) In Schedule 5 (sums to be disregarded in the calculation of earnings)—

(a) for paragraphs 1(48) and 2(49) 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 Northern Ireland, 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 a jobseeker’s allowance;

(b) any earnings, other than a payment of the nature described in regulation 98(1)(d) or (h) (in so far as it applies to regulation 98(1)(d)), 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 98(1)(d) or (h) (in so far as it applies to regulation 98(1)(d)); and

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

(i) regulation 98(1)(f), (g) or (h) (in so far as it relates to regulation 98(f) or (g)), or

(ii) Article 66 or 102 of the Employment Rights (Northern Ireland) Order 1996 (guarantee payments and suspension from work: complaints to industrial tribunals),

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

1A.   If the claimant’s partner has been engaged in remunerative work as an employed earner or, had the employment been in Northern Ireland, would have been so engaged, any earnings paid or due to be paid on termination of that employment by way of retirement but only if—

(a) on retirement the partner is entitled to a retirement pension under the Benefits Act, or

(b) the only reason the partner is not entitled to a retirement pension under the Benefits Act is because the contribution conditions are not satisfied.

2.— (1) In the case of a claimant to whom this paragraph applies, any earnings (other than items to which paragraph 1(2) applies) which relate to employment which ceased before the first day of entitlement to a jobseeker’s allowance 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 Northern Ireland, would have been so engaged; but it does not apply to a claimant has been suspended from his employment.”; and

(b) in paragraph 3(b) for the words “33(1)(b) of the Industrial Relations (Northern Ireland) Order 1976” to the end substitute “152(1)(b) of the Employment Rights (Northern Ireland) Order 1996 for so long as the award remains unpaid and the employer is insolvent within the meaning of Article 228 of that Order.”.

(14) In Schedule 6 (sums to be disregarded in the calculation of income other than earnings)—

(a) in paragraph 12(1)(50) at the end add “or a payment corresponding to such an education maintenance allowance made pursuant to section 3 of the Employment and Training Act (Northern Ireland) 1950”;

(b) in paragraph 20 for sub-paragraphs (a) and (b)(51) 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.”; and

(c) in paragraph 45 at the end add “or reduction of liability for rates under Article 30A of the Rates (Northern Ireland) Order 1977 (rate relief in respect of dwellings)”.

(15) In Schedule 7 (capital to be disregarded)—

(a) in paragraph 35 after “(reduction of liability for council tax)” insert “or reduction of liability for rates under Article 30A of the Rates (Northern Ireland) Order 1977 (rate relief in respect of dwellings)”; and

(b) in paragraph 50(1)(52) at the end add “or a payment corresponding to such an education maintenance allowance made pursuant to section 3 of the Employment and Training Act (Northern Ireland) 1950”.

Amendment of the State Pension Credit Regulations

8.—(1) The State Pension Credit Regulations (Northern Ireland) 2003(53) are amended in accordance with paragraphs (2) to (5).

(2) In regulation 1(2) (interpretation) in the definition of “pension fund holder” after the words “with respect to” insert “an occupational pension scheme,”.

(3) In regulation 18 (notional income)—

(a) in paragraph (1A) for “and (1C)” substitute “, (1CA) and (1CB)”; and

(b) for paragraph (1C)(54) substitute—

“(1C) Paragraphs (1CA) and (1CB) apply for the purposes of paragraph (1) (or, where applicable, paragraph (1) read with paragraph (1B)).

(1CA) Where a benefit or allowance in payment in respect of the claimant would be adjusted under the Social Security (Overlapping Benefits) Regulations (Northern Ireland) 1979(55) if the retirement pension income had been claimed, he shall be treated as possessing that income minus the benefit or allowance in payment.

(1CB) Where a benefit or allowance in payment in respect of the claimant would require an adjustment to be made under the Social Security (Overlapping Benefits) Regulations (Northern Ireland) 1979 to the amount of retirement pension income payable had it been claimed, he shall be treated as possessing that retirement pension income minus the adjustment which would be made to it.”.

(4) For regulation 19 (calculation of capital in the United Kingdom) substitute—

“Calculation of capital in the United Kingdom

19.   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 encumbrance secured on it.”.

(5) In Schedule 2, in paragraph 8(8) (general provisions applying to housing costs) for the formula substitute—

“”.

Amendment of the Housing Benefit Regulations

9.—(1) The Housing Benefit Regulations (Northern Ireland) 2006(56) are amended in accordance with paragraphs (2) to (13).

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

(a) omit the definition of “lower rate”; and

(b) after the definition of “sports award” insert—

““starting rate”, where it relates to the rate of tax, has the same meaning as in the Income Tax Act 2007(57) (see section 989 of that Act);”.

(3) In regulation 7(8) (circumstances in which a person is or is not to be treated as occupying a dwelling as his home)—

(a) for “Where a person” substitute “Where”;

(b) in sub-paragraph (a), at the beginning, insert “a person”;

(c) for sub-paragraph (b) substitute—

“(b) either—

(i) that person had claimed housing benefit before moving in and either no decision has yet been made on that claim or it has been refused but a further claim has been made or treated as made within 4 weeks of the date on which the claimant moved into the new dwelling occupied as the home, or

(ii) that person notified the move to the new dwelling as a change of circumstances under regulation 84 before the move, or the move to the new dwelling was otherwise notified before the move under that regulation; and”; and

(d) for “he shall be treated” substitute “the person shall be treated”.

(4) In regulation 32(1) (earnings of employed earners) after sub-paragraph (g) insert—

“(gg) any payment or remuneration made under Article 60, 66, 96, 100 or 102 of the Employment Rights (Northern Ireland) Order 1996 (right to guarantee payments, remuneration on suspension on medical or maternity grounds, complaints to industrial tribunals);”.

(5) In regulation 33(6)(a) (calculation of net earnings of employed earners) for “lower rate”, in each place where it occurs, substitute “starting rate”.

(6) In regulation 36(1) (deduction of tax and contributions of self-employed earners) for “lower rate”, in each place where it occurs, substitute “starting rate”.

(7) In regulation 39 (notional income)—

(a) omit “or” at the end of paragraph 10(a);

(b) at the end of paragraph (10)(b)(ii) add—

“; or

(c) to a claimant who is participating in a work placement approved by the Department for Employment and Learning (or a person providing services to that Department) before the placement starts.

(10A) In paragraph (10)(c) “work placement” means practical work experience which is not undertaken in expectation of payment.”; and

(c) in paragraph (12)(a) for “lower rate”, in each place where it occurs, substitute “starting rate”.

(8) For regulation 44 (calculation of capital in the United Kingdom) substitute—

“Calculation of capital in the United Kingdom

44.   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 the sale, 10 per cent.; and

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

(9) In regulation 77 (date on which change of circumstances is to take effect)—

(a) in paragraph (3) for “and (11)” substitute “to (12)”; and

(b) after paragraph (11) add—

“(12) Where the change of circumstances is that the person moves to a new dwelling and immediately before the move that person is treated as occupying the new dwelling in accordance with regulation 7(8) then that change of circumstances shall take effect on the first day on which the person is treated as occupying the new dwelling as the home under that regulation.”.

(10) In Schedule 4 (applicable amounts)—

(a) in paragraph 4 for “8” substitute “9”;

(b) omit paragraph 8 and the preceding heading; and

(c) omit paragraph 20(1)(58).

(11) In Schedule 5 (sums to be disregarded in the calculation of earnings)—

(a) in paragraph 1—

(i) in sub-paragraph (a) after “earnings” insert “paid or due to be paid”, and

(ii) for sub-paragraphs (b) and (c) substitute—

“(b) where before the first day of entitlement to housing benefit the employment has been terminated otherwise than because of retirement, any earnings paid or due to be paid in respect of that employment except—

(i) any payment of the nature described in regulation 32(1)(e), or

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

(aa) regulation 32(1)(g), (h), or (j) (in so far as it relates to regulation 32(1)(g) or (h)), or

(bb) Article 66 or 102 of the Employment Rights (Northern Ireland) Order 1996(59) (guarantee payments and suspension from work: complaints to industrial tribunals),

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

(c) where before the first day of entitlement to housing benefit—

(i) the employment had not been terminated, but

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

any earnings paid or due to be paid in respect of that employment except any payment or remuneration of the nature described in regulation 32(1)(e), (i), (j) (in so far as it relates to regulation 32(1)(i)) or (k).”; and

(b) in paragraph 2—

(i) for “date of claim” substitute “first day of entitlement to housing benefit”;

(ii) after “earnings” where it first occurs insert “paid or due to be paid”;

(iii) in head) (i) for “earnings to which regulation 32(1)(e) applies” substitute “any payment of the nature described in regulation 32(1)(e)”, and

(iv) in head (ii) for “earnings to which regulation 32(1)(e), (i), (k) and (j) (in so far as it relates to regulation 32(1)(i)) applies” substitute “any payment or remuneration of the nature described in regulation 32(1)(e), (i), (j) (in so far as it relates to regulation 32(1)(i)) or (k)”.

(12) In Schedule 6 (sums to be disregarded in the calculation of income other than earnings)—

(a) in paragraph 12(1) at the end add “or a payment corresponding to such an education maintenance allowance made pursuant to section 3 of the Employment and Training Act (Northern Ireland) 1950(60)”;

(b) in paragraph 23 for sub-paragraphs (a) and (b)(61) 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.”; and

(c) in paragraph 43 at the end add “or reduction of liability for rates under Article 30A of the Rates (Northern Ireland) Order 1977(62) (rate relief in respect of dwellings)”.

(13) In Schedule 7 (capital to be disregarded)—

(a) in paragraph 38 after “(reduction of liability for council tax)” insert “or reduction of liability for rates under Article 30A of the Rates (Northern Ireland) Order 1977 (rate relief in respect of dwellings)”; and

(b) in paragraph 50(1) at the end add “or a payment corresponding to such an education maintenance allowance made pursuant to section 3 of the Employment and Training Act (Northern Ireland) 1950”.

Amendment of the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations

10.—(1) The Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations (Northern Ireland) 2006(63) are amended in accordance with paragraphs (2) to (7).

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

(a) omit the definition of “lower rate”; and

(b) after the definition of “sports award” insert—

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

(3) In regulation 7(8) (circumstances in which a person is or is not to be treated as occupying a dwelling as his home)—

(a) for “Where a person” substitute “Where”;

(b) in sub-paragraph (a), at the beginning, insert “a person”;

(c) for sub-paragraph (b) substitute—

“(b) either—

(i) that person had claimed housing benefit before moving in and either no decision has yet been made on that claim or it has been refused but a further claim has been made or treated as made within 4 weeks of the date on which the claimant moved into the new dwelling occupied as the home, or

(ii) that person notified the move to the new dwelling as a change of circumstances under regulation 65 before the move, or the move to the new dwelling was otherwise notified before the move under that regulation; and”; and

(d) for “he shall be treated” substitute “the person shall be treated”.

(4) In regulation 34(5)(a) (calculation of net earnings of employed earners) for “lower rate”, in each place where it occurs, substitute “starting rate”.

(5) In regulation 38(1) (deductions of tax and contributions of self-employed earners) for “lower rate”, in each place where it occurs, substitute “starting rate”.

(6) For regulation 43 (calculation of capital in the United Kingdom) substitute—

“Calculation of capital in the United Kingdom

43.   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 the sale, 10 per cent.; and

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

(7) In regulation 57 (date on which change of circumstances is to take effect)—

(a) in paragraph (3) for “and (11)” substitute “to (11A)”; and

(b) after paragraph (11) insert—

“(11A) Where the change of circumstances is that the person moves to a new dwelling and immediately before the move that person is treated as occupying the new dwelling in accordance with regulation 7(8) then that change of circumstances shall take effect on the first day on which the person is treated as occupying the new dwelling as the home under that regulation.”.

Revocations

11.  The provisions specified in column (1) of the Schedule are revoked to the extent specified in column (3).

Sealed with the Official Seal of the Department for Social Development on 7th September 2007

(L.S.)

John O’Neill

A senior officer of the Department for Social Development

The Department of Finance and Personnel consents to regulations 9 and 10.

Sealed with the Official Seal of the Department of Finance and Personnel on 7th September 2007

(L.S.)

Adrian Arbuthnot

A senior officer of the Department of Finance and Personnel