The Family Credit (General) Regulations 1987

[F1 Normal weekly earnings of employed earners U.K.

14.— (1) Where a claimant’s income consists of earnings from employment as an employed earner, [F2 except where those earnings arise from employment as a director,] his normal weekly earnings from that employment shall, subject to [F3 paragraphs (3) to (6C)], be determined [F4 by taking account of his earnings from that employment which are received in the assessment period relevant to his case, whether the amount so received was earned in respect of that period or not, and in accordance with the following provisions of this regulation.]

(2) A claimant’s assessment period, subject to [F5 paragraphs (2A) to (6C)] , shall be, in respect of a claimant whose pay period is—

(a) [F6 a week—

(i) except where head (ii) applies, a period of 6 consecutive weeks immediately preceding the week of claim; or

(ii) where the [F7 appropriate officer] has insufficient information for the claimant’s normal weekly earnings to be determined in accordance with head (i), a period of 6 consecutive weeks ending with the week before the week immediately preceding the week of claim;]

(aa) [F8 a fortnight—

(i) except where head (ii) applies, a period of three consecutive fortnights immediately preceding the week of claim; or

(ii) where the [F9 appropriate officer] has insufficient information for the claimant’s normal weekly earnings to be determined in accordance with head (i), a period of three consecutive fortnights ending with the fortnight before the week immediately preceding the week of claim;]

(b) four weeks or a month, a period of 12 consecutive weeks or, as the case may be, 3 consecutive months, immediately preceding the week of claim;

(c) any period of less than one month (a shorter period), other than one to which sub-paragraph (a) or (b) refers, 6 consecutive shorter periods immediately preceding the week of claim;

(d) any period of more than one month (a longer period), a period of one year ending immediately before the week of claim.

[F10 (2A) Where an [F11 appropriate officer] considers, on the basis of available evidence, that the claimant has elected to work fewer hours than he would otherwise have worked in the whole or part of the assessment period referred to in paragraph (2) with the result that, but for this paragraph, he would secure entitlement or increased entitlement to [F12 working families' tax credit], the adjudication officer may determine the claimant’s normal weekly earnings by [F13 taking account of his earnings received] during the period equal to, and ending immediately before, the period determined in accordance with paragraph (2), unless the claimant satisfies him that the reason for reducing his hours of work was otherwise than to secure such an entitlement or increased entitlement.]

(3) Where during a claimant’s assessment period his earnings are reduced because of his involvement in a trade dispute at his place of employment [F14 or because of his absence from work by reason of jury service], that assessment period shall be varied in that—

(a) any pay period during which his earnings are so reduced shall be omitted from it; and

(b) subject to sub-paragraph (c), his assessment period shall commence one pay period earlier (the extra period) for each period so omitted;

(c) where any extra period under sub-paragraph (b) is one in which his earnings are reduced because of his involvement in a trade dispute at his place of employment [F14 or because of his absence from work by reason of jury service], that extra period shall also be omitted from his assessment period and his assessment period shall commence one pay period earlier, for each extra period so omitted,

but so that his assessment period remains a period equal in length to the assessment period which would otherwise apply in his case under paragraph (2) but as if the words “consecutive” and “immediately” were omitted from that paragraph on each occasion where they appear.

(4) Where a claimant’s earnings, whether during his assessment period or not, include a bonus or commission which is paid within 52 weeks preceding the week of claim and that bonus or commission is paid separately from his other earnings or is paid in respect of a period longer than the pay period relating to the other earnings with which it is paid, his normal weekly earnings shall be treated as including an amount in respect of that bonus or commission calculated in accordance with regulation 20A (calculation of bonus or commission).

(5) Where at the date of claim—

(a) the claimant—

(i) has been in his employment, or

(ii) after a continuous period of interruption exceeding 4 weeks, has resumed his employment, or

(iii) has changed the number of hours for which he is contracted to work; and

(b) the period of his employment or the period since he resumed his employment or the period since the change in the number of hours took place, as the case may be, is less than the assessment period in paragraph (2) appropriate in his case,

his normal weekly earnings shall be determined in accordance with paragraph (6).

(6) In a case to which this paragraph applies, the [F15 the Board] shall require the claimant’s employer to furnish him with an estimate of the claimant’s likely earnings for the pay period for which he is or will normally be paid and the claimant’s normal earnings shall be determined by [F16 taking account of] that estimate.

[F17 (6ZA) Where at the date of claim—

(a) the claimant is a Crown servant posted overseas or a partner of such a Crown servant, and

(b) either or both of them has employment other than as a Crown servant which is carried on in an overseas territory,

the Board shall require either or both of them to furnish either evidence of earnings from that employment or, if that is not available, an estimate of likely earnings from that employment for the pay periods for which they will normally be paid, and normal weekly earnings shall be determined by taking account of that evidence or estimate.]

[F18 (6A) Where—

(a) the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer, and

(b) the next payment from her employer following the date of the claim is a payment which will include statutory maternity pay paid to her for a full pay period at the lower rate only,

the Board shall require the claimant to furnish them with an estimate of her likely earnings and statutory maternity pay to be contained in that payment, and her normal weekly earnings shall be determined by taking account of that estimate.

(6B) Where—

(a) the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer,

(b) the claim is made during a maternity pay period and at a time when less than half of that maternity pay period has expired, and

(c) in consequence the next payment from her employer following the date of the claim is a payment which will not include statutory maternity pay paid to her for a full pay period at the lower rate only,

the Board shall require the claimant to furnish them with an estimate of her likely earnings and statutory maternity pay to be contained in the first future payment from her employer in which statutory maternity pay will be paid to her at the lower rate only, and her normal weekly earnings shall be determined by taking account of that estimate.

(6C) Where—

(a) the claimant is entitled at the date of the claim to statutory maternity pay and is or will be receiving extra statutory maternity pay from her employer,

(b) the claim is made during a maternity pay period and at a time when more than half of that maternity pay period has expired, and

(c) in consequence the next payment from her employer following the date of the claim is a payment which will not include statutory maternity pay paid to her for a full pay period at the lower rate only,

the Board shall require the claimant to furnish them with details of her earnings and statutory maternity pay contained in the payment from her employer immediately preceding the date of the claim, and her normal weekly earnings shall be determined accordingly.]

(7) For the purposes of this regulation—

(a) the claimant’s earnings shall be calculated in accordance with Chapter III of this Part;

(b) “pay period” means the period in respect of which a claimant is, or expects to be [F19 normally] paid by his employer, being a week, a fortnight, four weeks, a month or other shorter or longer period, as the case may be.]

Textual Amendments

F1 Reg. 14 substituted (7.4.1992) by The Family Credit (General) Amendment Regulations 1992 (S.I. 1992/573), regs. 1(1), 4

F2 Words in reg. 14(1) substituted (12.4.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1994 (S.I. 1994/527), regs. 1(1)(c), 11(a)

F3 Words in reg. 14(1) substituted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 13(2)

F4 Words in reg. 14(1) substituted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 3(2)(a)

F5 Words in reg. 14(2) substituted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 13(3)

F6 Reg. 14(2)(a) substituted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 12(a)(ii)

F7 Words in reg. 14(2)(a)(ii) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(5), (6)(a)

F8 Reg. 14(2)(aa) substituted (9.4.1996) by The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1996 (S.I. 1996/462), regs. 1(5), 7

F9 Words in reg. 14(2)(aa)(ii) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(5), (6)(a)

F10 Reg. 14(2A) substituted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 12(b)

F11 Words in reg. 14(2A) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(5), (6)(a)

F12 Words in reg. 14(2A) substituted (5.10.1999) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(1), Sch. 1 para. 1(viii)

F13 Words in reg. 14(2A) substituted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 3(2)(b)

F14 Words in reg. 14(3) inserted (with effect in accordance with reg. 5(4) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments No. 4) Regulations 2000 (S.I. 2000/2978), regs. 1(1), 5(3)

F15 Words in reg. 14(6) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Schemes (Miscellaneous Amendments) Regulations 1999 (S.I. 1999/2487), regs. 1(1), 26(3), (4)(a)

F16 Words in reg. 14(6) substituted (7.1.1997) by The Disability Working Allowance and Family Credit (General) Amendment Regulations 1996 (S.I. 1996/3137), regs. 1, 3(2)(c)

F17 Reg. 14(6ZA) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by Tax Credits (Miscellaneous Amendments No.4) Regulations 2002 (S.I. 2002/1696), regs. 1(1), 7

F18 Reg. 14(6A)-(6C) inserted (with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax Credits (Miscellaneous Amendments No. 3) Regulations 2001 (S.I. 2001/892), regs. 1(2), 13(4)

F19 Words in reg. 14(7)(b) substituted (4.10.1994) by The Income-related Benefits Schemes (Miscellaneous Amendments) (No.5) Regulations 1994 (S.I. 1994/2139), regs. 1(1)(b), 12(c)