3.—(1) The Social Security (Payments on account, Overpayments and Recovery) Regulations 1988(1) shall be amended in accordance with the following provisions of this regulation.
(2) In regulation 14 (quarterly diminution of capital), in paragraph (3) in the definition of “overpayment period” after the words “income support” there shall be inserted the words “or an income-based jobseeker’s allowance,”.
(3) In regulation 15 (recovery by deduction from prescribed benefits), in paragraph (2) in sub-paragraph (d) for the words “or income-based jobseeker’s allowance” there shall be substituted the words “or a jobseeker’s allowance”.
(4) In regulation 16 (limitations on deductions from prescribed benefits)—
(a)in paragraph (4), for the words “income support or income-based jobseeker’s allowance” there shall be substituted the word “benefit”;
(b)after paragraph (4) the following paragraph shall be inserted—
“(4A) Paragraph (4) shall apply to the following benefits—
(a)income support;
(b)an income-based jobseeker’s allowance;
(c)where, if there was no entitlement to a contribution-based jobseeker’s allowance, there would be entitlement to an income-based jobseeker’s allowance at the same rate, a contribution-based jobseeker’s allowance.”;
(c)after paragraph (5) the following paragraphs shall be inserted—
“(5A) Regulation 15 shall apply to an amount of a contribution-based jobseeker’s allowance, other than a contribution-based jobseeker’s allowance to which paragraph (4) applies in accordance with paragraph (4A)(c), to which a person is presently entitled only to the extent that there may, subject to paragraphs 8 and 9 of Schedule 9 to the Claims and Payments Regulations be recovered in respect of any one benefit week a sum equal to one third of the age-related amount applicable to the claimant under section 4(1)(a) of the Jobseekers Act 1995(2).
(5B) For the purposes at paragraph (5A) where the sum that would otherwise fall to be deducted includes a fraction of a penny, the sum to be deducted shall be rounded down to the nearest whole penny.”;
(d)in paragraph (8) in the definition of “specified benefit”—
(i)in head (a) where it appears for the second time the word “benefit” shall be omitted, and after the words “instrument of payment,” where they appear for the first time there shall be inserted the words “a jobseeker’s allowance, or”; and
(ii)in head (b)—
(aa)after the words “benefit payment,” there shall be inserted the words “a jobseeker’s allowance”;
(bb)where it appears for the third time the word “benefit” shall be omitted; and
(cc)at the end the words “or income-based jobseeker’s allowance” shall be omitted.