SCHEDULE 1Applicable amount

PART 6Transitional addition

25

1

The applicant is entitled to a transitional addition calculated in accordance with paragraph 28 where the applicant or the applicant's partner—

a

is entitled to a converted employment and support allowance F2, or would be entitled but for the application of section 1A of the Welfare Reform Act (duration of contributory allowance); or

b

is appealing a conversion decision as described in regulation 5(2)(b) of the Employment and Support Allowance (Existing Awards) Regulations and—

i

is treated as having limited capability for work by virtue of regulation 30 of the Employment and Support Allowance Regulations M1 as modified by the Employment and Support Allowance (Existing Awards) Regulations; and

ii

is not in receipt of an income-related employment and support allowance, unless the amount of the transitional addition calculated in accordance with paragraph 28 would be nil.

2

The applicant's entitlement to a transitional addition by virtue of this paragraph ends on any of the following—

a

the reduction of the transitional addition to nil in accordance with paragraph 29;

b

the end of the applicant's entitlement to council tax reduction;

c

F3the relevant person ceasing to meet the requirements of sub-paragraph (1)(a) or (b), as the case may be;

d

the applicant or the applicant's partner becoming entitled to an income-related employment and support allowance, an income-based jobseeker's allowance or income support; or

e

5th April 2020.

26

1

This paragraph applies where—

a

the applicant's entitlement to a transitional addition ends because of the ending of the applicant's entitlement to council tax reduction under—

i

paragraph 25(2)(b);

ii

paragraph 27(3)(b);

iii

sub-paragraph (3)(b) of this paragraph; or

b

within F412 weeks of that termination but before 5th April 2020 the applicant again becomes entitled to council tax reduction;

c

in the reduction week in which the applicant again becomes entitled to council tax reduction F5the relevant person is entitled to an employment and support allowance which is not income-related;

F6d

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

e

at the date on which the applicant again becomes entitled to council tax reduction neither the applicant nor the applicant's partner is entitled to an income-related employment and support allowance, an income-based jobseeker's allowance or income support.

2

Where this paragraph applies, the applicant is entitled, with effect from the day on which the applicant again becomes entitled to council tax reduction, to a transitional addition of the amount of the transitional addition that would have applied had the applicant's entitlement to a transitional addition not ended (but taking account of the effect which any intervening change of circumstances would have had by virtue of paragraph 29), unless the amount of the transitional addition would be nil.

3

The applicant's entitlement to a transitional addition by virtue of this paragraph ends on any of the following—

a

the reduction of the transitional addition to nil in accordance with paragraph 29;

b

the end of the applicant's entitlement to council tax reduction;

c

F7the relevant person no longer being entitled to the employment and support allowance referred to in sub-paragraph (1)(c);

d

the applicant or the applicant's partner becoming entitled to an income-related employment and support allowance, an income-based jobseeker's allowance or income support; or

e

5th April 2020.

27

1

This paragraph applies where—

a

the applicant's entitlement to a transitional addition ends by virtue of F8the relevant person ceasing to be entitled to an employment and support allowance under—

i

paragraph 25(2)(c);

ii

paragraph 26(3)(c); or

iii

sub-paragraph (3)(c) of this paragraph;

b

before 5th April 2020 F8the relevant person again becomes entitled to an employment and support allowance which is not income-related;

F9c

at the date on which the relevant person again becomes entitled to an employment and support allowance which is not income-related, regulation 145(1) of the Employment and Support Allowance Regulations applies to the relevant person;

d

at the date on which F10the relevant person again becomes entitled to an employment and support allowance which is not income-related, neither the applicant nor the applicant's partner is entitled to an income-related employment and support allowance, an income-based jobseeker's allowance or income support.

2

Where this paragraph applies, the applicant is entitled, with effect from the day that F11the relevant person’s entitlement to employment and support allowance takes effect for council tax reduction purposes, to a transitional addition of the amount of the transitional addition that would have applied had the applicant's entitlement to a transitional addition not ended (but taking account of the effect which any intervening change of circumstances would have had by virtue of paragraph 29), unless the amount of the transitional addition would be nil.

3

The applicant's entitlement to a transitional addition by virtue of this paragraph ends on any of the following—

a

the reduction of the transitional addition to nil in accordance with paragraph 29;

b

the end of the applicant's entitlement to council tax reduction;

c

F8the relevant person no longer being entitled to the employment and support allowance referred to in sub-paragraph (1)(b);

d

the applicant or the applicant's partner becoming entitled to an income-related employment and support allowance, an income-based jobseeker's allowance or income support; or

e

5th April 2020.

Amount of transitional addition28

1

Subject to paragraph 29, the amount of the transitional addition is the amount by which Amount A exceeds Amount B.

2

Where a conversion decision as described in regulation 5(2)(a) of the Employment and Support Allowance (Existing Awards) Regulations is made in respect of F12the relevant person

a

Amount A is the basic amount that would have applied on the day that decision took effect had that decision not been made; and

b

Amount B is the basic amount that applied on that day as a result of that decision.

3

Where F12the relevant person is appealing a conversion decision as described in regulation 5(2)(b) of the Employment and Support Allowance (Existing Awards) Regulations (a decision that an existing award does not qualify for conversion into an award of employment and support allowance) and is treated as having limited capability for work by virtue of regulation 30 of the Employment and Support Allowance Regulations M2 as modified by the Employment and Support Allowance (Existing Awards) Regulations—

a

Amount A is the basic amount that would have applied on the day F12the relevant person was first treated as having limited capability for work if the applicant's partner had not been treated as having limited capability for work; and

b

Amount B is the basic amount that applied on that day as a result of F12the relevant person being treated as having limited capability for work.

4

In this paragraph and paragraph 29, “basic amount” means the aggregate of the amounts applying in the applicant's case in accordance with regulation 21(a) to (e) (applicable amount) or regulation 22(a) to (f) (applicable amount: polygamous marriages).

29

1

Subject to sub-paragraph (2), where there is a change of circumstances which leads to an increase in the applicant's basic amount, the transitional addition that applies immediately before the change of circumstances is to be reduced by the amount by which Amount C exceeds Amount D.

2

If Amount C exceeds Amount D by more than the amount of the transitional addition that applies immediately before the change of circumstances, that transitional addition is to be reduced to nil.

3

Amount C is the basic amount that applies as a result of the increase.

4

Amount D is the basic amount that applied immediately before the increase.

F1Interpretation of Part 630

In this Part “relevant person” means the person who meets the requirements of paragraph 25(1)(a) or (b), as the case may be, by virtue of which the applicant is entitled to a transitional addition under that paragraph.