2. In regulation 3 of the Social Security (Computation of Earnings) Regulations 1978 (payments to be disregarded)(1)
(a)in paragraph (3) after the words “For the purposes of” there shall be inserted the words “regulation 8(1) of the Social Security (Invalid Care Allowance) Regulations 1976(2) (circumstances in which a person is or is not to be treated as gainfully employed) and”;
(b)after paragraph (4) there shall be inserted the following paragraphs—
“(4A) For the purposes of regulation 7(1)(g)(i) of the Social Security (Unemployment, Sickness and Invalidity Benefit) Regulations 1983 there shall be disregarded any payment made to a councillor by way of a basic allowance or special responsibility allowance payable by virtue of regulations made under section 18(1) of the Local Government and Housing Act 1989(3).
(4B) In paragraph (4A) above “councillor” has the same meaning as in paragraph 2(6) of Schedule 8 to the Social Security Act 1989(4).”.