The Jobseeker’s Allowance Regulations 1996

Regulation 108(2)

SCHEDULE 8 CAPITAL TO BE DISREGARDED

1.  The dwelling occupied as the home but, notwithstanding regulation 88, (calculation of income and capital of members of claimant’s family and of a polygamous marriage), only one dwelling shall be disregarded under this paragraph.

2.  Any premises acquired for occupation by the claimant which he intends to occupy as his home within 26 weeks of the date of acquisition or such longer period as is reasonable in the circumstances to enable the claimant to obtain possession and commence occupation of the premises.

3.  Any sum directly attributable to the proceeds of sale of any premises formerly occupied by the claimant as his home which is to be used for the purchase of other premises intended for such occupation within 26 weeks of the date of sale, or such longer period as is reasonable in the circumstances to enable the claimant to complete the purchase.

4.  Any premises occupied in whole or in part by—

(a) a partner or relative of a single claimant or of any member of the family as his home where that person is aged 60 or over or is incapacitated;

(b) the former partner of a claimant as his home; but this provision shall not apply where the former partner is a person from whom the claimant is estranged or divorced.

5.  Where a claimant has ceased to occupy what was formerly the dwelling occupied as the home following his estrangement or divorce from his former partner, that dwelling for a period of 26 weeks from the date on which he ceased to occupy that dwelling.

6.  Any premises where the claimant is taking reasonable steps to dispose of those premises, for a period of 26 weeks from the date on which he first took such steps, or such longer period as is reasonable in the circumstances to enable him to dispose of those premises.

7.  Any premises which the claimant intends to occupy as his home, and in respect of which he is taking steps to obtain possession and has sought legal advice or has commenced legal proceedings with a view to obtaining possession, for a period of 26 weeks from the date on which he first sought such advice or first commenced such proceedings, whichever is earlier, or such longer period as is reasonable in the circumstances to enable him to obtain possession and commence occupation of those premises.

8.  Any premises which the claimant intends to occupy as his home to which essential repairs or alterations are required in order to render them fit for such occupation, for a period of 26 weeks from the date on which the claimant first takes steps to effect those repairs or alterations, or such longer period as is reasonable in the circumstances to enable those repairs or alterations to be carried out and the claimant to commence occupation of the premises.

9.  Any grant made to the claimant in accordance with a scheme made under section 129 of the Housing Act 1988 F1 or section 66 of the Housing (Scotland) Act 1988 F2 (schemes for payments to assist local housing authority and local authority tenants to obtain other accommodation) which is to be used—

(a) to purchase premises intended for occupation as his home; or

(b) to carry out repairs or alterations which are required to render premises fit for occupation as his home,

for a period of 26 weeks from the date on which he received such a grant or such longer period as is reasonable in the circumstances to enable the purchase, repairs or alterations to be completed and the claimant to commence occupation of those premises as his home,

Textual Amendments

F1 1988 c.50; section 129 was amended by the Local Government and Housing Act 1989 (c.42), section 194 and Schedule 12.

F2 1988 c.43.

10.  Any future interest in property of any kind, other than land or premises in respect of which the claimant has granted a subsisting lease or tenancy, including sub-leases or sub-tenancies.

11.—(1) The assets of any business owned in whole or in part by the claimant and for the purposes of which he is engaged as a self-employed earner or, if he has ceased to be so engaged, for such period as may be reasonable in the circumstances to allow for disposal of any such asset.

(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 a jobseeker’s allowance 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.

[F3 (3) In the case of a person who is receiving assistance under an employment programme specified in regulation 75(1)(a)(ii)(aa)(ii) (self-employment route of the Employment Option of the New Deal), the assets acquired by that person for the purpose of establishing or carrying on the commercial activity in respect of which such assistance is being received.

(4) n the case of a person who has ceased carrying on the commercial activity in respect of which assistance was received as specified in sub-paragraph (3), the assets relating to that activity for such period as may be reasonable in the circumstances to allow for disposal of any such asset.]

Textual Amendments

F3 Sch. 8 para. 11(3)(4) added (1.6.1998) by The Social Security (Miscellaneous Amendments) (No. 4) Regulations 1998 (S.I. 1998/1174), regs. 1(1), 5(a)

12.  Any arrears of, or any concessionary payment made to compensate for arrears due to the non-payment of—

(a) any payment specified in paragraph 7, 9 or 10 of Schedule 7 (other income to be disregarded);

(b) a jobseeker’s allowance or an income-related benefit under Part VII of the Benefits Act;

[F4 (c) any allowance paid by the Secretary of State under the Earnings Top-up Scheme,]

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

Textual Amendments

F4 Sch. 8 para. 12(c) inserted (28.10.1996) by The Social Security and Child Support (Jobseeker’s Allowance) (Miscellaneous Amendments) Regulations 1996 (S.I. 1996/2538), regs. 1, 2(14)

13.  Any sum—

(a) paid to the claimant in consequence of damage to, or loss of, the home or any personal possession and intended for its repair or replacement; or

(b) acquired by the claimant (whether as a loan or otherwise) on the express condition that it is to be used for effecting essential repairs or improvements to the home,

and which is to be used for the intended purpose, for a period of 26 weeks from the date on which it was so paid or acquired or such longer period as is reasonable in the circumstances to enable the claimant to effect the repairs, replacement or improvements.

14.  Any sum—

(a) deposited with a housing association as defined in section 1(1) of the Housing Associations Act 1985 F5 as a condition of occupying the home;

(b) which was so deposited and which is to be used for the purchase of another home, for the period of 26 weeks or such longer period as is reasonable in the circumstances to complete the purchase.

Textual Amendments

F5 1985 c.69.

15.  Any personal possessions except those which have or had been acquired by the claimant with the intention of reducing his capital in order to secure entitlement to a jobseeker’s allowance or to income support or to increase the amount of those benefits.

16.  The value of the right to receive any income under an annuity and the surrender value (if any) of such an annuity.

17.  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.

18.  The value of the right to receive any income under a life interest or from a liferent.

19.  The value of the right to receive any income which is disregarded under paragraph 14 of Schedule 6 or paragraph 24 of Schedule 7 (earnings or other income payable in a country outside the United Kingdom).

20.  The surrender value of any policy of life insurance.

21.  Where any payment of capital falls to be made by instalments, the value of the right to receive any outstanding instalments.

22.  Except in the case of a person who is, or would be prevented from being entitled to a jobseeker’s allowance by section 14 (trade disputes), any payment made by a local authority in accordance with section 17 or 24 of the Children Act 1989 F6 or, as the case may be, section 12, 24 or 26 of the Social Work (Scotland) Act 1968 F7 (local authorities’ duty to promote welfare of children and powers to grant financial assistance to persons in, or formerly in, their care).

Textual Amendments

F6 1989 c.41.

F7 1968 c.49.

23.  Any social fund payment made pursuant to Part VIII of the Benefits Act.

24.  Any refund of tax which falls to be deducted under section 369 of the Income and Corporation Taxes Act 1988 F8 (deductions of tax from certain loan interest) on a payment of relevant loan interest for the purpose of acquiring an interest in the home or carrying out repairs or improvements in the home.

Textual Amendments

F8 1988 c.1; section 369 was amended by the Finance Act 1993 (c.34), section 58 and the Finance Act 1994 (c.9), section 81.

25.  Any capital which under regulation 104, 106(1) or 136 (capital treated as income, modifications in respect of children and young persons and treatment of student loans) is to be treated as income.

26.  Where a payment of capital is made in a currency other than sterling, any banking charge or commission payable in converting that payment into sterling.

27.—(1) Any payment made under the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) (No.2) Trust, the Fund, the Eileen Trust (“the Trusts") or the Independent Living Funds.

(2) Any payment by or on behalf of a person who is suffering or who suffered from haemophilia or who is or was a qualifying person, which derives from a payment made under any of the Trusts to which sub-paragraph (1) refers and which is made to or for the benefit of—

(a) that person’s partner or former partner from whom he is not, or where that person had died was not, estranged or divorced;

(b) any child or young person who is a member of that person’s family or who was such a member and who is a member of the claimant’s family.

(3) Any payment by or on behalf of the partner or former partner of a person who is suffering or who suffered from haemophilia or who is or was a qualifying person, provided that the partner or former partner and that person are not, or if either of them has died were not, estranged or divorced, which derives from a payment made under any of the Trusts to which sub-paragraph (1) refers and which is made to or for the benefit of

(a) the person who is suffering from haemophilia or who is a qualifying person;

(b) any child or young person who is a member of that person’s family or who was such a member and who is a member of the claimant’s family.

(4) Any payment by a person who is suffering from haemophilia or who is a qualifying person, which derives from a payment made under any of the Trusts to which sub-paragraph (1) refers, where—

(a) that person has no partner or former partner from whom he is not estranged or divorced, nor any child or young person who is or had been a member of that person’s family; and

(b) the payment is made either–

(i) to that person’s parent or step-parent, or

(ii) where that person at the date of payment is a child, a young person or a student who has not completed his full-time education, and has no parent or step-parent, to his guardian,

but only for a period from the date of the payment until the end of two years from that person’s death.

(5) Any payment out of the estate of a person who suffered from haemophilia or who was a qualifying person, which derives from a payment made under any of the Trusts to which sub-paragraph (1) refers, where—

(a) that person at the date of his death (the relevant date) had no partner or former partner from whom he was not estranged or divorced, nor any child or young person who was or had been a member of his family; and

(b) the payment is made either–

(i) to that person’s parent or step-parent, or

(ii) where that person at the relevant date was a child, a young person or a student who had not completed his full-time education, and had no parent or step-parent, to his guardian,

but only for a period of two years from the relevant date.

(6) In the case of a person to whom or for whose benefit a payment referred to in this paragraph is made, any capital resource which derives from any payment of income or capital made under or deriving from any of the Trusts.

28.  The value of the right to receive an occupational or personal pension.

29.  The value of any funds held under a personal pension scheme.

30.  The value of the right to receive any rent except where the claimant has a reversionary interest in the property in respect of which rent is due.

31.  Any payment in kind made by a charity or under the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) (No.2) Trust, the Fund, the Eileen Trust or the Independent Living Funds.

32.  £200 of any payment or, if the payment is less than £200, the whole of any payment made under section 2 of the Employment and Training Act 1973 F9 or section 2 of the Enterprise and New Towns (Scotland) Act 1990, F10 as a training bonus to a person participating in arrangements for training.

Textual Amendments

F9 1973 c.50; section 2 was amended by section 25(1) of the Employment Act 1988 (c.19), Part I of Schedule 7 to the Employment Act 1989 (c.38), and section 47(1) of the Trade Union Reform and Employment Rights Act 1993 (c.19).

F10 1990 c.35.

33.  Any payment made by the Secretary of State to compensate for the loss (in whole or in part) of entitlement to housing benefit.

34.  Any payment made to a juror or a witness in respect of attendance at a court other than compensation for loss of earnings or for the loss of a benefit payable under the Act or under the Benefits Act.

35.  Any payment in consequence of a reduction of a personal community charge pursuant to regulations under section 13A of the Local Government Finance Act 1988 F11 or section 9A of the Abolition of Domestic Rates Etc (Scotland) Act 1987 F12 (reduction of liability for personal community charge) or reduction of council tax under section 13 or, as the case may be, section 80 of the Local Government Finance Act 1992 F13 (reduction of liability for council tax), but only for a period of 52 weeks from the date of the receipt of the payment.

Textual Amendments

F11 1988 c.41; section 13A was inserted by the Local Government and Housing Act 1989 (c.42) (“the 1989 Act"), Schedule 5 paragraph 5.

F12 1987 c.47; section 9A was inserted by the 1989 Act, section 143.

F13 1992 c.14.

36.—(1) Any payment or repayment made–

(a) as respects England and Wales, under regulations 3, 5 or 8 of the National Health Service (Travelling Expenses and Remission of Charges) Regulations 1988 F14 (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 F15 (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.

Textual Amendments

F14 S.I. 1988/551; relevant amending instruments are S.I. 1989/394, 1990/918, 1991/557 and 1992/1104.

F15 S.I. 1988/546.

37.  Any payment made under regulation 9 to 11 or 13 of the Welfare Food Regulations 1988 F16 (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.

Textual Amendments

F16 S.I. 1988/536; relevant amending instruments are S.I. 1990/3 and 1991/585.

38.  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.

39.  Any arrears of special war widows payment which is disregarded under paragraph 46 of Schedule 7 (sums to be disregarded in the calculation of income other than earnings) or of any amount which is disregarded under paragraph 53, 54 or 55 of that Schedule, but only for a period of 52 weeks from the date of receipt of the arrears.

40.  Any payment (other than a training allowance, or a training bonus under section 2 of the Employment and Training Act 1973) made, whether by the Secretary of State or by any other person, under the Disabled Persons (Employment) Act 1944 F17 or in accordance with arrangements made under section 2 of the Employment and Training Act 1973, to assist disabled persons to obtain or retain employment despite their disability.

Textual Amendments

F17 1944 c.10.

41.  Any payment made by a local authority under section 3 of the Disabled Persons (Employment) Act 1958 F18 to homeworkers assisted under the Blind Homeworkers Scheme.

Textual Amendments

F18 1958 c.33.

42.  Any sum of capital administered on behalf of a person under the age of 18 by the High Court under the provisions of Order 80 of the Rules of the Supreme Court F19 , the County Court under Order 10 of the County Court Rules 1981 F20 , or the Court of Protection where such sum derives from—

(a) an award of damages for a personal injury to that person; or

(b) compensation for the death of one or both parents [F21 where the person concerned is under the age of 18].

Textual Amendments

F19 S.I. 1965/1776.

F20 S.I. 1981/1687.

F21 Words in Sch. 8 para. 42 added (with effect in accordance with reg. 1(2)(3) of the amending S.I.) by The Income-related Benefits and Jobseekers Allowance (Amendment) (No. 2) Regulations 1997 (S.I. 1997/2197), regs. 1(2), 7(9)(b)(10)(f)

43.  Any sum of capital administered on behalf of a person under the age of 18 in accordance with an order made under Rule 43.15 of the Act of Sederunt (Rules of the Court of Session 1994) 1994 F22 or under Rule 131 of the Act of Sederunt (Rules of the Court, consolidation and amendment) 1965 F23 , or under Rule 36.14 of the Ordinary Cause Rules 1993 F24 or under Rule 128 of the Ordinary Cause Rules F25 , where such sum derives from—

(a) an award of damages for a personal injury to that person; or

(b) compensation for the death of one or both parents [F26 where the person concerned is under the age of 18].

Textual Amendments

F22 S.I. 1994/1443.

F23 S.I. 1965/321.

F24 First Schedule to the Sheriff Courts (Scotland) Act 1907 (c.51) as substituted in respect of causes commenced on or after 1 January 1994 by S.I. 1993/1956.

F25 First Schedule to the aforesaid Act of 1907 as substituted by S.I. 1983/747.

F26 Words in Sch. 8 para. 43 added (with effect in accordance with reg. 1(2)(3) of the amending S.I.) by The Income-related Benefits and Jobseekers Allowance (Amendment) (No. 2) Regulations 1997 (S.I. 1997/2197), regs. 1(2), 7(9)(b)(10)(f)

44.  Any payment to the claimant as holder of the Victoria Cross or George Cross.

[F27 45.   Any mandatory top-up payment made to a person pursuant to section 2 of the Employment and Training Act 1973 in respect of that person’s participation in an employment programme specified in—.

(a) regulation 75(1)(a)(ii)(aa)(ii) (self-employment route of the Employment Option of the New Deal);

(b) regulation 75(1)(a)(ii)(bb) (Voluntary Sector Option of the New Deal); or

(c) regulation 75(1)(a)(ii)(cc) (Environment Task Force Option of the New Deal),

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

Textual Amendments

F27 Sch. 8 para. 45 substituted (1.6.1998) by The Social Security (Miscellaneous Amendments) (No. 4) Regulations 1998 (S.I. 1998/1174), regs. 1(1), 5(b)

[F28 46.   Any discretionary payment to meet, or to help to meet, special needs made to a person pursuant to section 2 of the Employment and Training Act 1973 in respect of that person’s participation in the Full-Time Education and Training Option of the New Deal as specified in regulation 75(1)(b)(ii) but only for a period of 52 weeks from the date of receipt of the payment.]

Textual Amendments

F28 Sch. 8 paras. 45, 46 added (5.1.1998) by The Social Security Amendment (New Deal) Regulations 1997 (S.I. 1997/2863), regs. 1(1), 15

[F29 47.   In the case of a person who is receiving, or who has received, assistance under an employment programme specified in regulation 75(1)(a)(ii)(aa)(ii) (self-employment route of the Employment Option of the New Deal), any sum of capital which is acquired by that person for the purpose of establishing or carrying on the commercial activity in respect of which such assistance is or was received but only for a period of 52 weeks from the date on which that sum was acquired.]

Textual Amendments

F29 Sch. 8 para. 47 added (1.6.1998) by The Social Security (Miscellaneous Amendments) (No. 4) Regulations 1998 (S.I. 1998/1174), regs. 1(1), 5(c)

[F30 48.   Any discretionary payment made pursuant to section 2 of the Employment and Training Act 1973 to meet, or help meet, special needs of a person who is undertaking a qualifying course within the meaning specified in regulation 17A(7) but only for the period of 52 weeks from the date of receipt of that payment.]

Textual Amendments

F30 Sch. 8 para. 48 added (24.9.1998) by The Social Security Amendment (New Deal) (No.2) Regulations 1998 (S.I. 1998/2117), regs. 1(1), 5(1)

[F31 51.— (1) Any payment of a sports award for a period of 26 weeks from the date of receipt of that payment except to the extent that it has been made in respect of any one or more of the items specified in sub-paragraph (2).

(2) The items specified for the purposes of sub-paragraph (1) are food, ordinary clothing or footwear, household fuel, rent for which housing benefit is payable or any housing costs to the extent that they are met under regulation 83(f) or 84(1)(g) (housing costs) or any accommodation charges to the extent that they are met under regulation 86 (persons in residential care or nursing homes), of the claimant or, where the claimant is a member of a family, any other member of his family, or any council tax or water charges for which that claimant or member is liable.

(3) For the purposes of sub-paragraph (2)—

“food" does not include vitamins, minerals or other special dietary supplements intended to enhance the performance of the person in the sport in respect of which the award was made;

“ordinary clothing and footwear" means clothing or footwear for normal daily use but does not include school uniforms or clothing or footwear used solely for sporting activities.]

Textual Amendments

F31 Sch. 8 para. 51 added (23.8.1999) by The Social Security Amendment (Sports Awards) Regulations 1999 (S.I. 1999/2165), regs. 1(1), 7(5)