The Income Support (General) Regulations 1987

Changes over time for: Section 51

Version Superseded: 31/10/2011

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Point in time view as at 05/08/2011. This version of this provision has been superseded.

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The Income Support (General) Regulations 1987, Section 51 is up to date with all changes known to be in force on or before 03 December 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.

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Notional capitalE+W+S

51.—(1) A claimant shall be treated as possessing capital of which he has deprived himself for the purpose of securing entitlement to income support or increasing the amount of that benefit [F1except–

(a)where that capital is derived from a payment made in consequence of any personal injury and is placed on trust for the benefit of the claimant; or

(b)to the extent that the capital which he is treated as possessing is reduced in accordance with regulation 51A (diminishing notional capital rule)] [F2or]

[F3(c)any sum to which paragraph 44(2)(a) of Schedule 10 (capital to be disregarded) applies which is administered in the way referred to in paragraph 44(1)(a);

(d)any sum to which paragraph 45(a) of Schedule 10 refers.]

(2) Except in the case of—

(a)a discretionary trust;

(b)a trust derived from a payment made in consequence of a personal injury; or

(c)any loan which would be obtainable only if secured against capital disregarded under Schedule 10, [F4or

(d)a personal pension scheme F5...] [F6or]

[F7(da)an occupational pension scheme [F8or a payment made by the Board of the Pension Protection Fund] where the claimant [F9has not attained the qualifying age for state pension credit]; or]

[F10(e)any sum to which paragraph 44(2)(a) of Schedule 10 (capital to be disregarded) applies which is administered in a way referred to in paragraph 44(1)(a); or

(f)any sum to which paragraph 45(a) of Schedule 10 refers,]

any capital which would become available to the claimant upon application being made but which has not been acquired by him shall be treated as possessed by him but only from the date on which [F11it could be expected to be acquired were an application made]

[F12(3) [F13Any payment of capital, other than a payment of capital specified in paragraph (3A)], made—

(a)to a third party in respect of a single claimant or [F14in respect of a member of the family] [F14his partner] (but not a member of the third party’s family) shall be treated—

(i)in a case where that payment is derived from a payment of any benefit under the benefit Acts, [F15a payment from the Armed Forces and Reserve Forces Compensation Scheme,] a war disablement pension[F16, war widow’s pension [F17or war widower’s pension] or a pension payable to a person as a [F18widow, widower or surviving civil partner] under F19... any power of Her Majesty otherwise than under an enactment to make provision about pensions for or in respect of persons who have been disabled or who have died in consequence of service as members of the armed forces of the Crown,] as possessed by that single claimant, if it is paid to him, [F20or by that member if it is paid to any member of the family] [F20or by his partner, if it is paid to his partner];

[F21(ia)in a case where that payment is a payment of an occupational pension [F22, a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fund], as possessed by that single claimant or, as the case may be, by [F23that member] [F23the claimant’s partner];]

(ii)in any other case, as possessed by that single claimant [F24or by that member] [F24or his partner] to the extent that it is used for the food, ordinary clothing or footwear, household fuel, rent F25... for which housing benefit [F26is payable or] F27... any housing costs to the extent that they are met under regulation 17(1)(e) and 18(1)(f) (housing costs) F28..., of that single claimant or, as the case may be, [F24of any member of that family] [F24of his partner][F29, or is used for any [F30council tax] or water charges for which that claimant or [F24member is liable] [F24partner is liable]];

(b)[F31to a single claimant or a member of the family in respect of a third party (but not in respect of another member of the family) shall be treated as possessed by that single claimant or, as the case may be, that member of the family to the extent that it is kept or used by him or used by or on behalf of any member of the family.]]

[F31to a single claimant or his partner in respect of a third party (but not in respect of another member of his family) shall be treated as possessed by that single claimant or, as the case may be, his partner, to the extent that it is kept or used by him or used by or on behalf of his partner.]

[F32(3A) Paragraph (3) shall not apply in respect of a payment of capital made—

(a)under [F33or by] the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) (No.2) Trust, the Fund, the Eileen Trust [F34, MFET Limited] [F35, the Independent Living [F36Fund (2006)] [F37, the Skipton Fund or the London Bombings Relief Charitable Fund]];

(b)pursuant to section 2 of the Employment and Training Act 1973 in respect of a person’s participation—

(i)in an employment programme specified in regulation 75(1)(a)(ii) of the Jobseeker’s Allowance Regulations 1996;

(ii)in a training scheme specified in regulation 75(1)(b)(ii) of those Regulations; or

[F38(iia)in the Intensive Activity Period specified in regulation 75(1)(a)(iv) of those RegulationsF39...; or]

(iii)in a qualifying course within the meaning specified in regulation 17A(7) of those Regulations.]

[F40(ba)in respect of a person’s participation in the Employment, Skills and Enterprise Scheme or the Mandatory Work Activity Scheme;]

[F41(c)under an occupational pension scheme[F42, in respect of a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fund] where—

(i)a bankruptcy order has been made in respect of the person in respect of whom the payment has been made or, in Scotland, the estate of that person is subject to sequestration or a judicial factor has been appointed on that person’s estate under section 41 of the Solicitors (Scotland) Act 1980;

(ii)the payment is made to the trustee in bankruptcy or any other person acting on behalf of the creditors; and

(iii)the person referred to in (i) and [F43any member of his family] [F43his partner (if any)] does not possess, or is not treated as possessing, any other income apart from that payment.]

(4) Where a claimant stands in relation to a company in a position analogous to that of a sole owner or partner in the business of that company, he shall be treated as if he were such sole owner or partner and in such a case—

(a)the value of his holding in that company shall, notwithstanding regulation 46 (calculation of capital), be disregarded; and

(b)he shall, subject to paragraph (5), be treated as possessing an amount of capital equal to the value or, as the case may be, his share of the value of the capital of that company and the foregoing provisions of this Chapter shall apply for the purposes of calculating that amount as if it were actual capital which he does possess.

(5) For so long as the claimant undertakes activities in the course of the business of the company, the amount which he is treated as possessing under paragraph (4) shall be disregarded.

(6) Where a claimant is treated as possessing capital under any of paragraphs (1) to (4), the foregoing provisions of this Chapter shall apply for the purposes of calculating its amount as if it were actual capital which he does possess.

[F44(7) For the avoidance of doubt a claimant is to be treated as possessing capital under paragraph (1) only if the capital of which he has deprived himself is actual capital.]

[F45(8) In paragraph (3) the expression “ordinary clothing or footwear” means clothing or footwear for normal daily use, but does not include school uniforms, or clothing or footwear used solely for sporting activities.]

Textual Amendments

F1Words in reg. 51(1) substituted (1.10.1990) by The Income Support (General) Amendment No. 3 Regulations 1990 (S.I. 1990/1776), regs. 1(1)(a), 5(a) (with reg. 1(2))

F2Reg. 51(1)(c) and word added (with effect in accordance with reg. 1(2)(3) of the amending S.I.) by The Income-related Benefits and Jobseeker’s Allowance (Amendment) (No. 2) Regulations 1997 (S.I. 1997/2197), regs. 1(2), 5(4)

F3Reg. 51(1)(c)(d) substituted for reg. 51(1)(c) (2.4.2007) by The Social Security (Miscellaneous Amendments) Regulations 2007 (S.I. 2007/719), regs. 1(2), 2(4)(a)

F4Reg. 51(2)(d) added (with effect in accordance with reg. 1(4) of the amending S.I.) by The Income-related Benefits Schemes and Social Security (Claims and Payments) (Miscellaneous Amendments) Regulations 1995 (S.I. 1995/2303), regs. 1(1)(a), 6(5) (with reg. 8)

F5Words in reg. 51(2)(d) omitted (16.7.2007) by virtue of The Social Security (Miscellaneous Amendments) (No. 3) Regulations 2007 (S.I. 2007/1749), regs. 1, 2(7)

F6Reg. 51(2)(e) and word added (with effect in accordance with reg. 1(2)(3) of the amending S.I.) by The Income-related Benefits and Jobseeker’s Allowance (Amendment) (No. 2) Regulations 1997 (S.I. 1997/2197), regs. 1(2), 5(4)

F7Reg. 51(2)(da) inserted (6.4.2006) by The Social Security (Miscellaneous Amendments) (No. 2) Regulations 2005 (S.I. 2005/2465), regs. 1(5)(a), 2(5)

F8Words in reg. 51(2)(da) inserted (6.4.2006) by The Social Security (Miscellaneous Amendments) Regulations 2006 (S.I. 2006/588), regs. 1(9), 2(3)(a)

F9Words in reg. 51(2)(da) substituted (6.4.2010) by The Social Security (Miscellaneous Amendments) (No. 2) Regulations 2010 (S.I. 2010/641), regs. 1(1), 2(8)

F10Reg. 51(2)(e)(f) substituted for reg. 51(2)(e) (2.4.2007) by The Social Security (Miscellaneous Amendments) Regulations 2007 (S.I. 2007/719), regs. 1(2), 2(4)(b)

F11Words in reg. 51(2) substituted (11.4.1988) by The Income Support (General) Amendment Regulations 1988 (S.I. 1988/663), regs. 1(1), 22(a)