Explanatory Note

(This note is not part of the Regulations)

These Regulations provide for various matters which affect entitlement to family credit. Regulations 3 to 5 prescribe the circumstances in which a person is treated as being in Great Britain; and provide for 24 hours' work a week as a minimum requirement. Regulations 6 to 9 make provision in respect of children and young persons who are normally living with the claimant as members of the household.

Regulations 10 to 45 and Schedules 1, 2 and 3 are concerned with the calculation of income and capital: regulation 28 sets the capital limit at £6,000 and regulation 36 provides for tariff income on capital over £3,000 at the rate of £1 a week for every £250 excess capital.

Regulations 46 to 48 concern the computation of entitlement. Regulation 46 and Schedule 4 prescribe the maximum family credit: for the claimant (whether or not a couple) £32.10 and for each child or young person £6.05 (under 11), £11.40 (under 16), £14.70 (under 18) or £21.35 (under 19). Regulation 47 sets the applicable amount for family credit at £51.45 per week and regulation 48 fixes the percentage of income over £51.45 a week deductible from the maximum family credit at 70 per cent.

Regulations 49 to 51 provide for various situations, including the death of the claimant, which may affect an award of family credit.

These Regulations are made before the expiry of 12 months from the commencement of the provisions under which they are made: they are accordingly exempt, by section 61(5) of the Social Security Act 1986, from reference to the Social Security Advisory Committee and have not been so referred.