PART VIII INCOME AND CAPITAL

Chapter VIIF1F2... liable relative payments

Interpretation117.

In this Chapter, unless the context otherwise requires—

  • F3...

  • “claimant" includes a young claimant;

  • F4“claimant’s family” shall be construed in accordance with section 35(1) of the Jobseekers Act 1995 (interpretation);

  • F4“housing costs” means those costs which may be met under regulation 83(f) or 84(1)(g) (housing costs);

  • “liable relative" means–

    1. (a)

      a spouseF5, former spouse, civil partner or former civil partner of a claimant or of a member of the claimant’s family;

    2. (b)

      a parent of a young claimant or of a child or young person who is a member of a claimant’s family;

    3. (c)

      a person who has not been adjudged to be the father of a young claimant or of a child or young person who is a member of a claimant’s family, where that person is contributing to the maintenance of that young claimant, child or young person and by reason of that contribution he may reasonably be treated as the father of that young claimant, child or young person;

    4. (d)

      a person liable to maintain another person by virtue of section 78(6)(c) of the Administration Act where the latter is the claimant or a member of the claimant’s family,

    and, in this definition, a reference to a child’s, young person’s or young claimant’s parent includes any person in relation to whom the child, young person or young claimant was treated as a child or a member of the family;

  • F4“ordinary clothing and footwear” means clothing and footwear for normal daily use but does not include school uniforms;

  • “payment" means a periodical payment or any other payment made by or derived from a liable relativeF6...; but it does not include any payment—

    1. (a)

      arising as a consequence of a disposition of property made in contemplation of, or as a consequence of—

      1. (i)

        an agreement to separate; or

      2. (ii)

        any proceedings for judicial separation, divorce or nullity of marriage F7or;

      3. (iii)

        F8any proceedings for separation, dissolution or nullity in relation to a civil partnership;

    2. (b)

      made after the death of the liable relative;

    3. (c)

      made by way of a gift but not in aggregate or otherwise exceeding £250 in the period of 52 weeks beginning with the date on which the payment, or if there is more than one such payment the first payment, is made; and in the case of a claimant who continues to be in receipt of an income-based jobseeker’s allowance at the end of the period of 52 weeks, this provision shall continue to apply thereafter with the modification than any subsequent period of 52 weeks shall begin with the first day of the benefit week in which the first payment is made after the end of the previous period of 52 weeks;

    4. (d)

      F9to which regulation 106(2) applies (payments in respect of children and young persons who reside at an educational establishment);

    5. (e)

      F10made to a third party, or in respect of a third party, unless the payment is—

      1. (i)

        in relation to the claimant or the claimant’s F11partner or is made or derived from a person falling within sub-paragraph (d) of the definition of liable relative; and

      2. (ii)

        F12... in respect of food, ordinary clothing or footwear, fuel, F13rent for which housing benefit is payable, housing costs to the extent that they are met under regulations 83(f) or 84(1)(g) (housing costs), council tax or water charges;

    6. (f)

      in kind;

    7. (g)

      to or in respect of a child or young person who is to be treated as not being a member of the claimant’s household under regulation 78;

    8. (h)

      which is not a periodical payment, to the extent that any amount of that payment—

      1. (i)

        has already been taken into account under this Part by virtue of a previous claim or determination; or

      2. (ii)

        has been recovered under section 74(1) of the Administration Act (prevention of duplication of payments) or is currently being recovered; or

      3. (iii)

        at the time the determination is made, has been used by the claimant except where he has deprived himself of that amount for the purpose of securing entitlement to a jobseeker’s allowance or increasing the amount of that allowance;

    9. (i)

      F14to which paragraph 70 of Schedule 7 (sums to be disregarded in the calculation of income other than earnings) applies;

  • “periodical payment" means–

    1. (a)

      a payment which is made or is due to be made at regular intervalsF15...;

    2. (b)

      in a case where the liable relative has established a pattern of making payments at regular intervals, any such payment;

    3. (c)

      any paymentF16F17... that does not exceed the amount of jobseeker’s allowance payable had that payment not been made;

    4. (d)

      any payment representing a commutation of payments to which sub-paragraph (a) or (b) of this definition applies whether made in arrears or in advance,

    but does not include a payment due to be made before the benefit week in which the claimant first became entitled to an income-based jobseeker’s allowance, which was not so made;

  • “young claimant" means a person aged 16 or over but under F1820 who makes a claim for a jobseeker’s allowance.

Treatment of F19... liable relative payments118.

Subject to regulation 119F20... a payment shall—

(a)

to the extent that it is not a payment of income, be treated as income;

(b)

be taken into account in accordance with the following provisions of this Chapter.

Disregard of payments treated as not relevant income119.

Where the Secretary of State treats any payment as not being relevant income for the purposes of section 74A of the Administration Act F21 (payment of benefit where maintenance payments collected by Secretary of State), that payment shall be disregarded in calculating a claimant’s income.

Period over which periodical payments are to be taken into account120.

(1)

The period over which a periodical payment is to be taken into account shall be–

(a)

in a case where the payment is made at regular intervals, a period equal to the length of that interval;

(b)

in a case where the payment is due to be made at regular intervals but is not so made, such number of weeks as is equal to the number obtained (and any fraction shall be treated as a corresponding fraction of a week) by dividing the amount of that payment by the weekly amount of that periodical payment as calculated in accordance with regulation 122(4);

(c)

in any other case, a period equal to a week.

(2)

The period under paragraph (1) shall begin on the date on which the payment is treated as paid under regulation 123.

Period over which payments other than periodical payments are to be taken into accountF22121.

(1)

The period over which a payment other than a periodical payment (a “non-periodical payment”) is to be taken account shall be determined as follows.

(2)

Except in a case where paragraph (4) applies, the number of weeks over which a non-periodical payment is to be taken into account shall be equal to the number obtained by dividing that payment by the amount referred to in paragraph (3).

(3)

The amount is the aggregate of £2 and—

(a)

the amount of jobseeker’s allowance that would be payable had no payment been made, F23...

F23(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)

This paragraph applies in a case where a liable relative makes a periodical payment and a non-periodical payment concurrently and the weekly amount of the periodical payment (as calculated in accordance with regulation 122) is less than B.

(5)

In a case where paragraph (4) applies, the non-periodical payment shall, subject to paragraphs (6) and (7), be taken into account over a period of the number of weeks equal to the number obtained by applying the formula—

ABC

(6)

If the liable relative ceases to make periodical payments, the balance (if any) of the non-periodical payment shall be taken into account over the number of weeks equal to the number obtained by dividing that balance by the amount referred to in paragraph (3).

(7)

If the amount of any subsequent periodical payment varies, the balance (if any) of the non-periodical payment shall be taken into account over a period of the number of weeks equal to the number obtained by applying the formula—

DBE

(8)

The period under paragraph (2) or (4) shall begin on the date on which the payment is treated as paid under regulation 123 (date on which a liable relative payment is treated as paid) and the period under paragraph (6) and (7) shall begin on the first day of the benefit week in which the cessation or variation of the periodical payment occurred.

(9)

Any fraction which arises by applying a calculation or formula referred to in this regulation shall be treated as a corresponding fraction of a week.

(10)

In paragraphs (4) to (7)—

  • A

    the amount of the non-periodical payment;

  • B

    the aggregate of £2 and the amount of jobseeker’s allowance that would be payable had the periodical payment not been madeF24...;

  • C

    the weekly amount of the periodical payment;

  • D

    the balance (if any) of the non-periodical payment;

  • E

    the weekly amount of any subsequent periodical payment.

Calculation of the weekly amount of a F25...liable relative payment122.

(1)

Where a periodical payment is made or is due to be made at intervals of one week, the weekly amount shall be the amount of that payment.

(2)

Where a periodical payment is made or is due to be made at intervals greater than one week and those intervals are monthly, the weekly amount shall be determined by multiplying the amount of the payment by 12 and dividing the product by 52.

(3)

Where a periodical payment is made or is due to be made at intervals and those intervals are neither weekly or monthly, the weekly amount shall be determined by dividing that payment by the number equal to the number of weeks (including any part of a week) in that interval.

(4)

Where a payment is made and that payment represents a commutation of periodical payments whether in arrears or in advance, the weekly amount shall be the weekly amount of the individual periodical payments so commuted as calculated under paragraphs (1) to (3) as appropriate.

(5)

The weekly amount of a payment to which regulation 121 applies (period over which payments other than periodical payments are to be taken into account) shall be equal to the amount of the divisor used in calculating the period over which the payment or, as the case may be, the balance is to be taken into account.

Date on which aF26... liable relative payment is to be treated as paid123.

(1)

A periodical payment is to be treated as paid–

(a)

in the case of a payment which is due to be made before the benefit week in which the claimant first became entitled to an income-based jobseeker’s allowance, on the day in the week in which it is due to be paid which corresponds to the first day of the benefit week;

(b)

in any other case, on the first day of the benefit week in which it is due to be paid unless, having regard to the manner in which jobseeker’s allowance is due to be paid in the particular case, it would be more practicable to treat it as paid on the first day of a subsequent benefit week.

(2)

Subject to paragraph (3), any other payment shall be treated as paid–

(a)

in the case of a payment which is made before the benefit week in which the claimant first became entitled to an income-based jobseeker’s allowance, on the day in the week in which it is paid which corresponds to the first day of the benefit week;

(b)

in any other case, on the first day of the benefit week in which it is paid unless, having regard to the manner in which jobseeker’s allowance is due to be paid in the particular case, it would be more practicable to treat it as paid on the first day of a subsequent benefit week.

(3)

Any other payment paid on a date which falls within the period in respect of which a previous payment is taken into account, not being a periodical payment, is to be treated as paid on the first day following the end of that period.

Liable relative payments to be treated as capitalF27124.

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