Welfare Reform Act 2007

Part 1 E+W+S Contributory allowance

Conditions relating to national insurance E+W+S

1 (1) The first condition is that— E+W+S

(a) the claimant has actually paid Class 1 or Class 2 contributions in respect of one of the last three complete tax years (“the base tax year”) before the beginning of the relevant benefit year,

(b) those contributions must have been paid before the relevant benefit week, and

(c) the earnings factor derived as mentioned in sub-paragraph (2) must be not less than the base tax year's lower earnings limit multiplied by 25.

(2) The earnings factor referred to in sub-paragraph (1)(c) is the aggregate of the claimant's earnings factors derived—

(a) from so much of his earnings as did not exceed the base tax year's upper earnings limit and upon which primary Class 1 contributions have been paid or treated as paid, and

(b) from Class 2 contributions.

(3) Where primary Class 1 contributions have been paid or treated as paid on any part of a person's earnings, sub-paragraph (2)(a) shall have effect as if such contributions had been paid or treated as paid on so much of the earnings as did not exceed the base tax year's upper earnings limit.

(4) Regulations may—

(a) provide for the condition set out in sub-paragraph (1) to be taken to be satisfied in the case of persons who have been entitled to any prescribed description of benefit during any prescribed period or at any prescribed time;

(b) with a view to securing any relaxation of the requirements of that condition in relation to persons who have been so entitled, provide for that condition to apply in relation to them subject to prescribed modifications.

(5) In sub-paragraph (4), “benefit” means—

(a) any benefit within the meaning of section 122(1) of the Contributions and Benefits Act,

(b) any benefit under Parts 7 to 12 of that Act,

(c) credits under regulations under section 22(5) of that Act,

[F1 (ca) credits under section 23A of that Act,]

(d) a contributory allowance, and

(e) working tax credit.

Textual Amendments

F1 Sch. 1 para. 1(5)(ca) inserted (26.9.2007) by Pensions Act 2007 (c. 22), s. 30(3), Sch. 1 para. 11

Commencement Information

I1 Sch. 1 para. 1(1)-(3) (5) in force at 27.10.2008 by S.I. 2008/787, art. 2(4)(d)

I2 Sch. 1 para. 1(4) in force at 18.3.2008 for specified purposes by S.I. 2008/787, art. 2(1)

I3 Sch. 1 para. 1(4) in force at 27.10.2008 in so far as not already in force by S.I. 2008/787, art. 2(4)(d)

2 (1) The second condition is that— E+W+S

(a) the claimant has in respect of the last two complete tax years before the beginning of the relevant benefit year either paid or been credited with Class 1 or Class 2 contributions or been credited with earnings, and

(b) the earnings factor derived as mentioned in sub-paragraph (2) must be not less in each of those years than the year's lower earnings limit multiplied by 50.

(2) The earnings factor referred to in sub-paragraph (1)(b) is the aggregate of the claimant's earnings factors derived—

(a) from so much of his earnings as did not exceed the upper earnings limit for the year and upon which primary Class 1 contributions have been paid or treated as paid or from earnings credited, and

(b) from Class 2 contributions.

(3) Where primary Class 1 contributions have been paid or treated as paid on any part of a person's earnings, sub-paragraph (2)(a) shall have effect as if such contributions had been paid or treated as paid on so much of the earnings as did not exceed the upper earnings limit for the year.

Commencement Information

I4 Sch. 1 para. 2 in force at 27.10.2008 by S.I. 2008/787, art. 2(4)(d)

3 (1) For the purposes of paragraphs 1 and 2— E+W+S

(a) “benefit year” means a period which is a benefit year for the purposes of Part 2 of the Contributions and Benefits Act or such other period as may be prescribed for the purposes of this Part of this Schedule;

(b) “Class 1 contributions”, “Class 2 contributions” and “primary Class 1 contributions” have the same meaning as in the Contributions and Benefits Act (see section 1 of that Act);

(c) “earnings” shall be construed in accordance with sections 3, 4 and 112 of that Act;

(d) “earnings factor” shall be construed in accordance with sections 22 and 23 of that Act;

(e) “lower earnings limit” and “upper earnings limit” shall be construed in accordance with section 5 of that Act and references to the lower or upper earnings limit of a tax year are to whatever is (or was) the limit in force for that year under that section;

(f) “relevant benefit year” is the benefit year which includes the beginning of the period of limited capability for work which includes the relevant benefit week;

(g) “tax year” means the 12 months beginning with 6th April in any year.

(2) Regulations may provide for sub-paragraph (1)(f) to have effect in prescribed circumstances with prescribed modifications in the case of—

(a) a person who has previously ceased to be entitled to a contributory allowance;

(b) a person who has made a claim for an employment and support allowance in connection with which he failed to satisfy one or both of the conditions in paragraphs 1 and 2.

Modifications etc. (not altering text)

C1 Sch. 1 para. 3(1)(f) modified (27.10.2008) by Employment and Support Allowance Regulations 2008 (S.I. 2008/794), regs. 1(a), 13

Commencement Information

I5 Sch. 1 para. 3(1) in force at 27.10.2008 by S.I. 2008/787, art. 2(4)(d)

I6 Sch. 1 para. 3(2) in force at 18.3.2008 for specified purposes by S.I. 2008/787, art. 2(1)

I7 Sch. 1 para. 3(2) in force at 27.10.2008 in so far as not already in force by S.I. 2008/787, art. 2(4)(d)

Condition relating to youth E+W+S

4 (1) The third condition is that — E+W+S

(a) the claimant was under 20 or, in prescribed cases, 25 when the relevant period of limited capability for work began,

(b) he is not receiving full-time education,

(c) he satisfies such conditions as may be prescribed with respect to residence or presence in Great Britain (or both), and

(d) there has been a day in the relevant period of limited capability for work—

(i) which was a day on which he was aged at least 16, and

(ii) which was preceded by a period of 196 consecutive days throughout which he had limited capability for work.

(2) In sub-paragraph (1), “relevant period of limited capability for work” means the period of limited capability for work which includes the relevant benefit week.

(3) Regulations may prescribe circumstances in which sub-paragraph (1)(a) does not apply in the case of a person who has previously ceased to be entitled to an employment and support allowance to which he was entitled by virtue of satisfying the condition set out in sub-paragraph (1).

(4) Regulations may make provision about when, for the purposes of sub-paragraph (1)(b), a person is, or is not, to be treated as receiving full-time education.

Modifications etc. (not altering text)

C2 Sch. 1 para. 4(1)(a) excluded (27.10.2008) by Employment and Support Allowance Regulations 2008 (S.I. 2008/794), regs. 1(a), 10

Commencement Information

I8 Sch. 1 para. 4(1)(a) (c) (3) (4) in force at 18.3.2008 for specified purposes by S.I. 2008/787, art. 2(1)

I9 Sch. 1 para. 4(1)(a) (c) (3) (4) in force at 27.10.2008 in so far as not already in force by S.I. 2008/787, art. 2(4)(d)

I10 Sch. 1 para. 4(1)(b) (d) (2) in force at 27.10.2008 by S.I. 2008/787, art. 2(4)(d)

“Relevant benefit week” E+W+S

5 E+W+S In this Part of this Schedule, “relevant benefit week” means the week in relation to which the question of entitlement to an employment and support allowance is being considered.

Commencement Information

I11 Sch. 1 para. 5 in force at 27.10.2008 by S.I. 2008/787, art. 2(4)(d)