The Income Support (General) Amendment No. 3 Regulations 1990

Statutory Instruments

1990 No. 1776

SOCIAL SECURITY

The Income Support (General) Amendment No. 3 Regulations 1990

Made

28th August 1990

Laid before Parliament

6th September 1990

Coming into force

—except regulation 7

1st October 1990

—regulation 7

15th October 1990

The Secretary of State for Social Security in exercise of the powers conferred by sections 22(1), (8) and (9)(a) and (b) and 84(1) of the Social Security Act 1986(1) and section 166(1) to (3) of the Social Security Act 1975(2) and of all other powers enabling him in that behalf, after agreement by the Social Security Advisory Committee that proposals to make these Regulations should not be referred to it(3), hereby makes the following Regulations:

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Income Support (General) Amendment No. 3 Regulations 1990 and shall, subject to paragraph (2), come into force as follows–

(a) except regulation 7, on 1st October 1990;

(b) regulation 7, on 15th October 1990.

(2) These Regulations shall not apply in relation to a particular claimant until the beginning of the first benefit week to commence for that claimant on or after the date specified in paragraph (1) which applies in his case; and for this purpose the expressions

“claimant” and “benefit week” have the same meanings as in the General Regulations.

(3) In these Regulations “the General Regulations” means the Income Support (General) Regulations 1987(4).

Amendment of regulation 2 of the General Regulations

2.  In regulation 2(1) of the General Regulations (interpretation) for the definition of “water charges” there shall be substituted the following definition:–

““water charges” means–

(a)

as respects England and Wales, any water and sewerage charges under Chapter IV of Part II of the Water Act 1989(5);

(b)

as respects Scotland, any water and sewerage charges under Schedule 5 to the Abolition of Domestic Rates Etc. (Scotland) Act 1987(6);

in so far as such charges are in respect of the dwelling which a person occupies as his home.”.

Amendment of regulation 3 of the General Regulations

3.  In regulation 3(2) of the General Regulations (definition of non-dependant), for sub-paragraph (d) the following sub-paragraphs shall be substituted–

“(d) any person who is liable to make payments on a commercial basis to the claimant or the claimant’s partner in respect of the occupation of the dwelling;

(da) any person to whom or to whose partner the claimant or the claimant’s partner is liable to make payments on a commercial basis in respect of the occupation of the dwelling;

(db) any other member of the household of the person to whom or to whose partner the claimant or the claimant’s partner is liable to make payments on a commercial basis in respect of the occupation of the dwelling;”.

Amendment of regulation 42 of the General Regulations

4.  In regulation 42(4)(a)(ii) of the General Regulations (notional income) the words “in England and Wales” shall be omitted.

Amendment of regulation 51 of the General Regulations

5.  In regulation 51 of the General Regulations (notional capital)–

(a) in paragraph (1) for the words from “except where” to the end there shall be inserted the words–

“except–

(a) where that capital is derived from a payment made in conse quence 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).”;

(b) in paragraph (3)(a)(ii) the words “in England and Wales” shall be omitted.

Insertion of regulation 51A into the General Regulations

6.  After regulation 51 of the General Regulations (notional capital) there shall be inserted the following regulation–

“Diminishing notional capital rule

51A.— (1) Where a claimant is treated as possessing capital under regulation 51(1) (notional capital), the amount which he is treated as possessing–

(a) in the case of a week that is subsequent to–

(i) the relevant week in respect of which the conditions set out in paragraph (2) are satisfied, or

(ii) a week which follows that relevant week and which satisfies those conditions,

shall be reduced by an amount determined under paragraph (2);

(b) in the case of a week in respect of which paragraph (1)(a) does not apply but where–

(i) that week is a week subsequent to the relevant week, and

(ii) that relevant week is a week in which the condition in paragraph (3) is satisfied,

shall be reduced by the amount determined under paragraph (3).

(2) This paragraph applies to a benefit week or part week where the claimant satisfies the conditions that–

(a) he is in receipt of income support; and

(b) but for regulation 51(1), he would have received an additional amount of income support in that benefit week or, as the case may be, that part week;

and in such a case, the amount of the reduction for the purposes of paragraph (1)(a) shall be equal to that additional amount.

(3) Subject to paragraph (4), for the purposes of paragraph (1)(b) the condition is that the claimant would have been entitled to income support in the relevant week, but for regulation 51(1), and in such a case the amount of the reduction shall be equal to the aggregate of–

(a) the amount of income support to which the claimant would have been entitled in the relevant week but for regulation 51(1); and for the purposes of this sub-paragraph if the relevant week is a part-week that amount shall be determined by dividing the amount of income support to which he would have been so entitled by the number equal to the number of days in the part-week and multiplying the quotient by 7;

(b) the amount of housing benefit (if any) equal to the difference between his maximum housing benefit and the amount (if any) of housing benefit which he is awarded in respect of the benefit week, within the meaning of regulation 2(1) of the Housing Benefit (General) Regulations 1987(7) (interpretation), which includes the last day of the relevant week;

(c) the amount of community charge benefit (if any) equal to the difference between his maximum community charge benefit and the amount (if any) of community charge benefit which he is awarded in respect of the benefit week, within the meaning of regulation 2(1) of the Community Charge Benefits (General) Regulations 1989(8) (interpretation) which includes the last day of the relevant week.

(4) The amount determined under paragraph (3) shall be re-determined under that paragraph if the claimant makes a further claim for income support and the conditions in paragraph (5) are satisfied, and in such a case–

(a) sub-paragraphs (a), (b) and (c) of paragraph (3) shall apply as if for the words “relevant week” there were substituted the words “relevant subsequent week”; and

(b) subject to paragraph (6), the amount as re-determined shall have effect from the first week following the relevant subsequent week in question.

(5) The conditions are that–

(a) a further claim is made 26 or more weeks after–

(i) the date on which the claimant made a claim for income support in respect of which he was first treated as possessing the capital in question under regulation 51(1); or

(ii) in a case where there has been at least one re-determination in accordance with paragraph (4), the date on which he last made a claim for income support which resulted in the weekly amount being re-determined; or

(iii) the date on which he last ceased to be in receipt of income support; whichever last occurred; and

(b) the claimant would have been entitled to income support but for regulation 51(1).

(6) The amount as re-determined pursuant to paragraph (4) shall not have effect if it is less than the amount which applied in that case immediately before the re-determination and in such a case the higher amount shall continue to have effect.

(7) For the purpose of this regulation–

(a) “part-week” means a period to which sub-section (1A) of section 21 of the Act (amount etc. of income support) applies;

(b) “relevant week” means the benefit week or part-week in which the capital in question of which the claimant has deprived himself within the meaning of regulation 51(1)–

(i) was first taken into account for the purpose of determining his entitlement to income support; or

(ii) was taken into account on a subsequent occasion for the purpose of determining or re-determining his entitlement to income support on that subsequent occasion and that determination or re-determination resulted in his beginning to receive, or ceasing to receive, income support;

and where more than one benefit week or part-week is identified by reference to heads (i) and (ii) of this sub-paragraph the later or latest such benefit week or, as the case may be, the later or latest such part-week;

(c) “relevant subsequent week” means the benefit week or part-week which includes the day on which the further claim or, if more than one further claim has been made, the last such claim was made.”.

Amendment of regulation 57 of the General Regulations

7.  In regulation 57 of the General Regulations (period over which payments other than periodical payments are to be taken into account), for sub-paragraph (b) of paragraph (1) there shall be substituted the following sub-paragraph–

“(b) where the payment is in respect of one, or more than one, child or young person who is a member of the family, the lesser of the amount (or the aggregate of the amounts) prescribed under Schedule 2, in respect of–

(i) the personal allowance of the claimant and each such child or young person;

(ii) any family and lone parent premium;

(iii) any disabled child premium in respect of such a child; and

(iv) any carer premium if, but only if, that premium is payable because the claimant is in receipt, or is treated as being in receipt, of invalid care allowance by reason of the fact that he is caring for such a child or young person who is severely disabled;

and the aggregate of £2 and the amount of income support which would be payable had the payment not been made.”.

Amendment of Schedule 2 to the General Regulations

8.  In Schedule 2 to the General Regulations (applicable amounts)–

(a) in paragraph 4 for the reference “8 to 14” there shall be substituted the reference “8 to 14ZA”;

(b) in paragraph 6(2) for the words “The disabled child premium to which paragraph 14 applies” there shall be substituted the words “The disabled child premium and the carer premium to which paragraphs 14 and 14ZA respectively apply”;

(c) (i) paragraph 7 shall be renumbered as sub-paragraph 7(1) and the words “Subject to sub-paragraph (2)” shall be inserted at the beginning of the sub-paragraph,

(ii) after sub-paragraph (1) there shall be added the following sub-paragraph–

“(2) For the purposes of the carer premium under paragraph 14ZA, a person shall be treated as being in receipt of invalid care allowance by virtue of sub-paragraph (1)(a) only if and for so long as the person in respect of whose care the allowance has been claimed remains in receipt of attendance allowance.”;

(d) after paragraph 14 there shall be inserted the following paragraph–

“Carer premium

14ZA.— (1) The condition is that the claimant or his partner is, or both of them are, in receipt of invalid care allowance under section 37 of the Social Security Act(9).

(2) If a claimant or his partner, or both of them, would be in receipt of invalid care allowance but for the provisions of the Social Security (Overlapping Benefits) Regulations 1979(10), where–

(a) the claim for that allowance was made on or after 1st October 1990, and

(b) the person or persons in respect of whose care the allowance has been claimed remains or remain in receipt of attendance allowance,

he or his partner, or both of them, as the case may be, shall be treated for the purposes of sub-paragraph (1) as being in receipt of invalid care allowance.”;

(e) in paragraph 15 at the end the following sub-paragraph shall be added–

“(7) Carer Premium

(7) £10 in respect of each person who satisfied the condition specified in paragraph 14ZA.”.

Amendment of Schedule 3 to the General Regulations

9.  In Schedule 3 to the General Regulations (housing costs)–

(a) in paragraph 7–

(i) for sub-paragraph (4) there shall be substituted the following sub-paragraphs–

“(4) Subject to sub-paragraph (3A), the following provisions of this paragraph, and paragraph 6, the weekly amount of eligible interest shall be the amount calculated by the formula–

where–

A

=

the gross annual interest calculated by the formula C × D;

B

=

the difference between 100% and the basic rate (expressed as a percentage) of income tax within the meaning of section 832(1) of the Income and Corporation Taxes Act 1988(11) for the year of assessment in which the payment of interest becomes due;

C

=

the amount of the loan which from time to time is outstanding and in respect of which eligible interest is payable; and

D

=

the rate of interest chargeable on that loan or any part thereof expressed as a percentage.

(4A) Where section 369 of the Income and Corporation Taxes Act 1988 (mortgage interest payable under deduction of tax) does not apply to the interest on a loan or to part of a loan, sub-paragraph (4) shall apply in respect of that loan or part as if it contained no reference to factor B.

(4B) Where the eligible interest is charged at more than one rate, the amount of that interest shall be calculated by making a separate calculation under sub-paragraph (4) in respect of each of those rates of interest and aggregating the results.

(4C) Where evidence supplied by the lender shows that the eligible interest charged is different from that calculated under sub-paragraph (4), the weekly amount of eligible interest shall be calculated by reference to the interest charged.”;

(ii) in sub-paragraph (6) for the words following head (b) there shall be substituted–

“or

(c) where, under the terms or conditions on which a loan has been made, for an initial period of at least 2 years the whole or part of the interest on that loan is not, or has not been, payable;

and, where either head (a) or (b) applies only to the extent that the arrears do not exceed 50 per cent of the eligible interest that otherwise would have been payable during the period in question and where head (c) applies only to the extent that interest is deferred and accrues further interest under the terms or conditions on which the loan is made.”;

(iii) after sub-paragraph (6) there shall be added the following sub-paragraph–

“(6A) For the purposes of sub-paragraph (6), in determining whether interest is, or is not, payable regard shall not be had to any obligation to pay interest which, under the terms or conditions on which a loan has been granted, is deferred for an initial period of at least 2 years.”;

(b) in paragraph 9, after sub-paragraph (2)(b) there shall be inserted the following head–

“(c) where the costs are inclusive of any amount in respect of repairs or improvements within the meaning of paragraph 8(3), any amount attribu table to those repairs and improvements.”;

(c) in paragraph 10–

(i) in sub-paragraph (3), for the reference “to (6)” there shall be substituted the reference “to (6A).”;

(ii) in sub-paragraph (4), the words “Subject to sub-paragraphs (5) and (6),” shall be omitted; for the words “and shall be restricted and the excess not allowed, if and to the extent that” there shall be substituted the word “where–”; and at the end there shall be added the words–

“but

for the purposes of this sub-paragraph no regard shall be had to the capital value of the dwelling occupied as the home.”;

(iii) after sub-paragraph (6) there shall be inserted the following sub-paragraph–

“(6A) Where sub-paragraph (4) applies the amounts to be met shall be restricted and the excess over the amounts which the claimant would need to obtain suitable alternative accommodation shall not be allowed.”;

(d) in paragraph 11–

(i) for sub-paragraph (2) there shall be substituted the following sub-paragraph–

“(2) In the case of a non-dependant aged 18 or more to whom sub-paragraph (1)(a) applies because he is in remunerative work, where the claimant satisfies the adjudication officer that the non-dependant’s gross weekly income is less than £56.05, the deduction to be made under this paragraph shall be the deduction specified in sub-paragraph (1)(b).”;

(ii) in sub-paragraph (7)(c), after the words “period of study” there shall be inserted the words “or, if he is not in remunerative work, during a recognised summer vacation appropriate to his course;”.

Amendment of Schedule 9 to the General Regulations

10.  In Schedule 9 to the General Regulations (sums to be disregarded in the calculation of income other than earnings)–

(a) in paragraph 15(2) the words “in England and Wales” shall be omitted;

(b) after paragraph 47 there shall be added the following paragraphs–

“48.— (1) Any payment or repayment made–

(a) as respects England and Wales, under regulation 3, 5 or 8 of the National Health Service (Travelling Expenses and Remission of Charges) Regulations 1988(12) (travelling expenses and health service supplies);

(b) as respects Scotland, under regulation 3, 5 or 8 of the National Health Service (Travelling Expenses and Remission of Charges) (Scotland) Regulations 1988(13) (travelling expenses and health service supplies).

(2) Any payment or repayment made by the Secretary of State for Health, the Secretary of State for Scotland or the Secretary of State for Wales which is analogous to a payment or repayment mentioned in sub-paragraph (1).

49.   Any payment made under regulation 9 to 11 or 13 of the Welfare Food Regulations 1988(14) (payments made in place of milk tokens or the supply of vitamins).

50.   Any payment made either by the Secretary of State for the Home Department or by the Secretary of State for Scotland under a scheme established to assist relatives and other persons to visit persons in custody.”.

Amendment of Schedule 10 to the General Regulations

11.  In Schedule 10 to the General Regulations (capital to be disregarded)–

(a) in paragraph 4(a) for the words “any member of” there shall be substituted the words “a single claimant or any member of”;

(b) in paragraph 6 at the end there shall be added the following sub-paragraph–

“(2) The assets of any business owned in whole or in part by the claimant where–

(a) he is not engaged as a self-employed earner in that business by reason of some disease or bodily or mental disablement; but

(b) he intends to become engaged (or, as the case may be, re-engaged) as a self-employed earner in that business as soon as he recovers or is able to become engaged, or re-engaged, in that business;

for a period of 26 weeks from the date on which the claim for income support is made, or is treated as made, or, if it is unreasonable to expect him to become engaged or re-engaged in that business within that period, for such longer period as is reasonable in the circumstances to enable him to become so engaged or re-engaged.”;

(c) for paragraph 12 there shall be substituted the following paragraph–

“12.   Where the funds of a trust are derived from a payment made in consequence of any personal injury to the claimant, the value of the trust fund and the value of the right to receive any payment under that trust.”;

(d) after paragraph 37, there shall be added the following paragraphs–

“38.— (1) Any payment or repayment made–

(a) as respects England and Wales, under regulation 3, 5 or 8 of the National Health Service (Travelling Expenses and Remission of Charges) Regulations 1988 (travelling expenses and health service supplies);

(b) as respects Scotland, under regulation 3, 5 or 8 of the National Health Service (Travelling Expenses and Remission of Charges) (Scotland) Regulations 1988 (travelling expenses and health service supplies);

but only for a period of 52 weeks from the date of receipt of the payment or repayment.

(2) Any payment or repayment made by the Secretary of State for Health, the Secretary of State for Scotland or the Secretary of State for Wales which is analogous to a payment or repayment mentioned in sub-paragraph (1); but only for a period of 52 weeks from the date of receipt of the payment or repayment.

39.   Any payment made under regulation 9 to 11 or 13 of the Welfare Food Regulations 1988 (payments made in place of milk tokens or the supply of vitamins), but only for a period of 52 weeks from the date of receipt of the payment.

40.   Any payment made either by the Secretary of State for the Home Department or by the Secretary of State for Scotland under a scheme established to assist relatives and other persons to visit persons in custody, but only for a period of 52 weeks from the date of receipt of the payment.

41.   Any arrears of special war widows payment which is disregarded under paragraph 47 of Schedule 9 (sums to be disregarded in the calculation of income other than earnings)(15), but only for a period of 52 weeks from the date of receipt of the arrears.”.

Signed by authority of the Secretary of State for Social Security.

Gillian Shephard

Parliamentary Under-Secretary of State,

Department of Social Security

28th August 1990

Explanatory Note

(This note is not part of the Regulations)

These Regulations further amend the Income Support (General) Regulations 1987 in the following respects–

(a) they provide that a person residing with a claimant shall not be a non-dependant where payments are made to or by a member of the claimant’s household in respect of the occupation of the dwelling (regulation 3);

(b) they provide that in Scotland, as in England and Wales, certain payments in respect of water charges are to be included as notional income (regulation 4); notional capital (regulation 5) and actual income (regulation 10(a));

(c) they provide for the reduction of notional capital (regulation 6);

(d) they make new provision in respect of the period over which payments by liable relatives are to be taken into account (regulation 7);

(e) they add a new premium, the carer premium, to the premiums which may form part of a claimant’s applicable amount where the claimant or his partner is or, in certain cases, would be in receipt of invalid care allowance (regulation 8);

(f) they make amendments to the provisions under which housing costs are calculated, including those relating to interest on loans to acquire, repair or improve the dwelling occupied as a home and the deductions made on account of non-dependants (regulation 9);

(g) they provide for the disregard of certain income and capital, including National Health Service payments, payments in place of milk tokens or the supply of vitamins and payments in connection with prison visits and, as regards capital only, extend the provisions under which assets of a business, funds held on trust and arrears of certain war widows payments may be disregarded (regulations 10(b) and 11).

(1)

1986 c. 50; section 84(1) is an interpretation provision and is cited because of the meaning assigned to the words “prescribed” and “regulations”.

(2)

1975 c. 14; section 166(1) to (3) is applied by section 83(1) of the Social Security Act 1986.

(3)

See the Social Security Act 1986, section 61(1)(b) and (10); the Social Security Act 1989 (c. 24), Schedule 8, added a definition of “regulations” to section 61(10) of the Act of 1986.

(4)

S.I. 1987/1967; the relevant amending instruments are S.I. 1988/1445, 2022 and 1990/547.

(5)

1989 c. 15.

(6)

1987 c. 47.

(7)

S.I. 1987/1971.

(8)

S.I. 1989/1321.

(9)

Section 37 was amended by the Social Security Act 1986, section 37(1) and Schedule 11 and by the Social Security Act 1989 (c. 24), Schedule 7, paragraph 10.

(10)

S.I. 1979/597.

(11)

1988 c. 1.

(12)

S.I. 1988/551.

(13)

S.I. 1988/546.

(14)

S.I. 1988/536, the relevant amending instrument is 1990/3.

(15)

Paragraph 47 was added by S.I. 1990/547.