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Statutory Instruments

1997 No. 65

SOCIAL SECURITY

The Income-related Benefits and Jobseeker’s Allowance (Miscellaneous Amendments) Regulations 1997

Made

16th January 1997

Laid before Parliament

23rd January 1997

Coming into force in accordance with regulation 1

The Secretary of State for Social Security, in exercise of the powers conferred on him by sections 123(1), 130(1), 131(10)(a), 135(1), 136(2), (3), (5)(a), (b) and (d), 137(1) and 175(1), (3) and (4) of the Social Security Contributions and Benefits Act 1992M1, sections 5(1)(p) and (6), 32(8), 75(2), 76(1), 189(1), (3) and (4) and 191 of the Social Security Administration Act 1992M2 and sections 4(5), 12(1) and (4)(b) and (d), 13(3), 35(1) and 36(1), (2) and (4) of the Jobseekers Act 1995M3 and of all other powers enabling him in that behalf, after consultation, in respect of provisions in these Regulations relating to housing benefit and council tax benefit, with organisations appearing to him to be representative of the authorities concernedM4 and after agreement by the Social Security Advisory Committee that proposals in respect of these Regulations should not be referred to itM5, hereby makes the following Regulations:

Marginal Citations

M11992 c.4; sections 123, 131, 135 and 137 were amended to have effect with respect to council tax benefit by Schedule 9 to the Local Government Finance Act 1992 (c.14), paras. 1, 4, 8 and 9; section 137(1) is an interpretation provision and is cited because of the meaning ascribed to the word “prescribed".

M21992 c.5; section 5(6) was inserted by section 120 of the Housing Act 1996 (c.52); section 76 was amended to have effect with respect to council tax benefit by Schedule 9 to the Local Government Finance Act 1992 (c.14), para. 15; section 191 is an interpretation provision and is cited because of the meaning ascribed to the word “prescribe".

M31995 c.18; section 35(1) is an interpretation provision and is cited because of the meaning ascribed to the words “prescribed" and “regulations".

M5 See sections 170 and 173(1)(b) of the Social Security Administration Act 1992 (c.5); paragraph 67 of Schedule 2 to the Jobseekers Act 1995 added that Act to the list of “relevant enactments" in respect of which regulations must normally be referred to the Committee.

Citation, commencement and interpretationE+W+S

1.—(1) These Regulations may be cited as the Income-related Benefits and Jobseeker’s Allowance (Miscellaneous Amendments) Regulations 1997 and this regulation shall come into force on 1st April 1997.

(2) In so far as these Regulations amend provisions relating to income support or jobseeker’s allowance, these Regulations shall come into force on 7th April 1997 and, in relation to any particular claimant for either of those benefits, these Regulations shall have effect from the first day of the first benefit week to commence for that claimant on or after that date.

(3) In paragraph (2) above, the expression “benefit week" shall have the same meaning as in paragraph (1) of regulation 2 of the Income Support Regulations M6 or, where appropriate, in paragraph (3) of regulation 1 of the Jobseeker’s Allowance RegulationsM7.

F1(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) In so far as these Regulations amend provisions relating to family credit or disability working allowance, these Regulations shall come into force on 8th April 1997 and, in relation to any particular claimant for either of those benefits, these Regulations shall have effect where a claimant has an award of family credit or disability working allowance which is current on 7th April 1997, on the day following the expiration of that award.

(7) In these Regulations—

F2...

“the Disability Working Allowance Regulations" means the Disability Working Allowance (General) Regulations 1991 M8;

“the Family Credit Regulations" means the Family Credit (General) Regulations 1987 M9;

F2...

“the Income Support Regulations" means the Income Support (General) Regulations 1987 M10;

“the Jobseeker’s Allowance Regulations" means the Jobseeker’s Allowance Regulations 1996 M11.

Income-related benefits and jobseeker’s allowance: disregard of certain income other than earningsE+W+S

2.F3(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) F3...

(3) In Schedule 9 to the Income Support Regulations (sums to be disregarded in the calculation of income other than earnings)—

(a)in paragraph 15B M12

(i)in sub-paragraph (1)—

(aa)in head (c), after the words “occupational pension of his", there shall be inserted the words “, or of any income from a personal pension scheme or a retirement annuity contract of his,";

(bb)for the words “or pensions" there shall be substituted the words “, pensions or income";

(ii)for sub-paragraph (2) there shall be substituted the following sub-paragraph—

(2) Where a claimant is entitled to pensions or income referred to in sub-paragraph (1) from more than one source, all such pensions and income to which he is entitled shall be aggregated for the purposes of that sub-paragraph.;

(iii)in sub-paragraph (3), for the words “occupational pension" there shall be substituted the words “pension or income referred to in sub-paragraph (1)";

(b)at the end there shall be added the following paragraphs—

58.  Any payment made under the Community Care (Direct Payments) Act 1996 or under section 12B of the Social Work (Scotland) Act 1968.

59.(1) Subject to paragraph 60, any Career Development Loan paid to the claimant pursuant to section 2 of the Employment and Training Act 1973 except to the extent that the loan has been applied for and paid in respect of living expenses for the period of education and training supported by that loan and those expenses relate to 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 17(1)(e) or 18(1)(f) (housing costs) or any accommodation charges to the extent that they are met under regulation 19 (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 this paragraph, “ordinary clothing and footwear" means clothing or footwear for normal daily use, but does not include school uniforms, or clothing and footwear used solely for sporting activities.

60.  Any Career Development Loan paid to the claimant pursuant to section 2 of the Employment and Training Act 1973 where the period of education and training supported by that loan has been completed.

61.(1) Any payment specified in sub-paragraph (2) to a claimant who was formerly a student and who has completed the course in respect of which those payments were made.

(2) The payments specified for the purposes of sub-paragraph (1) are—

(a)any grant income and covenant income as defined for the purposes of Chapter VIII of Part V;

(b)any loan made pursuant to arrangements made under section 1 of the Education (Student Loans) Act 1990 M13 or article 3 of the Education (Student Loans) (Northern Ireland) Order 1990 M14..

(4) In Schedule 7 to the Jobseeker’s Allowance Regulations (sums to be disregarded in the calculation of income other than earnings)—

(a)in paragraph 16A M15

(i)in sub-paragraph (1)—

(aa)in head (c), after the words “occupational pension of his", there shall be inserted the words “, or of any income from a personal pension scheme of his,";

(bb)for the words “or pensions" there shall be substituted the words “, pensions or income";

(ii)for sub-paragraph (2) there shall be substituted the following sub-paragraph—

(2) Where a claimant is entitled to pensions or income referred to in sub-paragraph (1) from more than one source, all such pensions and income to which he is entitled shall be aggregated for the purposes of that sub-paragraph.;

(iii)in sub-paragraph (3), for the words “occupational pension" there shall be substituted the words “pension or income referred to in sub-paragraph (1)";

(b)at the end there shall be added the following paragraphs—

56.  Any payment made under the Community Care (Direct Payments) Act 1996 or under section 12B of the Social Work (Scotland) Act 1968.

57.(1) Subject to paragraph 58, any Career Development Loan paid to the claimant pursuant to section 2 of the Employment and Training Act 1973 except to the extent that the loan has been applied for and paid in respect of living expenses for the period of education and training supported by that loan and those expenses relate to 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 this paragraph, “ordinary clothing and footwear" means clothing or footwear for normal daily use, but does not include school uniforms, or clothing and footwear used solely for sporting activities.

58.  Any Career Development Loan paid to the claimant pursuant to section 2 of the Employment and Training Act 1973 where the period of education and training supported by that loan has been completed.

59.(1) Any payment specified in sub-paragraph (2) to a claimant who was formerly a full-time student and who has completed the course in respect of which those payments were made.

(2) The payments specified for the purposes of sub-paragraph (1) are—

(a)any grant income and covenant income as defined for the purposes of Chapter IX of Part VIII;

(b)any loan made pursuant to arrangements made under section 1 of the Education (Student Loans) Act 1990 or article 3 of the Education (Student Loans) (Northern Ireland) Order 1990..

(5) At the end of the Schedules specified in paragraph (6) of this regulation (sums to be disregarded in the calculation of income other than earnings), there shall be added the following paragraphs bearing the specified respective paragraph numbers—

Any payment made under the Community Care (Direct Payments) Act 1996 or under section 12B of the Social Work (Scotland) Act 1968..

(1) Any Career Development Loan paid to the claimant pursuant to section 2 of the Employment and Training Act 1973 except to the extent that the loan has been applied for and paid in respect of living expenses for the period of education and training supported by that loan and those expenses relate to 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 or housing costs of any member of the family or any personal community charge, collective community charge contribution or any council tax for which any member of the family is liable.

(3) For the purposes of this paragraph, “ordinary clothing and footwear" means clothing or footwear for normal daily use, but does not include school uniforms, or clothing and footwear used solely for sporting activities..

(6) The respective paragraph numbers and Schedules for the purposes of paragraph (5) of this regulation are—

(a)paragraphs 55 and 56 of Schedule 3 to the Disability Working Allowance Regulations;

(b)paragraphs 57 and 58 of Schedule 2 to the Family Credit Regulations.

(7) In paragraph 22 of Schedule 2 to the Family Credit Regulations, in sub-paragraph (2)(a), for the figure “27(2)" there shall be substituted the figure “27".

Textual Amendments

Marginal Citations

M12Paragraph 15B was inserted by S.I. 1996/606.

M15Paragraph 16A was inserted by S.I. 1996/1517.

Income-related benefits and jobseeker’s allowance: capital treated as incomeE+W+S

3.—(1) In paragraph (1) of regulation 41 of the Income Support Regulations M16 (capital treated as income), after the sum “£8,000" there shall be inserted the words “or, in a case where regulation 45(b) M17 applies, £16,000".

(2) In paragraph (1) of regulation 104 of the Jobseeker’s Allowance Regulations (capital treated as income), after the sum “£8,000" there shall be inserted the words “or, in a case where regulation 107(b) M18 applies, £16,000".

(3) There shall be added as—

F4(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)paragraph (3) of regulation 28 of the Disability Working Allowance Regulations;

F5(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)paragraph (3) of regulation 25 of the Family Credit Regulations;

(e)paragraph (6) of regulation 41 of the Income Support Regulations;

(f)paragraph (5) of regulation 104 of the Jobseeker’s Allowance Regulations,

the following paragraph—

Any Career Development Loan paid pursuant to section 2 of the Employment and Training Act 1973 shall be treated as income..

Income support and jobseeker’s allowance: definition of housing benefit expenditureE+W+S

4.—(1) For the definition of “housing benefit expenditure" in paragraph (1) of regulation 2 of the Income Support Regulations there shall be substituted the following definition—

“housing benefit expenditure" means expenditure in respect of which housing benefit is payable as specified in regulation 10(1) of the Housing Benefit (General) Regulations 1987 but does not include any such expenditure in respect of which an amount is applicable under regulation 17(1)(e) or 18(1)(f) (housing costs);.

(2) For the definition of “housing benefit expenditure" in paragraph (3) of regulation 1 of the Jobseeker’s Allowance Regulations (interpretation) there shall be substituted the following definition—

“housing benefit expenditure" means expenditure in respect of which housing benefit is payable as specified in regulation 10(1) of the Housing Benefit (General) Regulations 1987 but does not include any such expenditure in respect of which an amount is applicable under regulation 83(f) or 84(1)(g) (housing costs);.

Income support and jobseeker’s allowance: treatment of Career Development Loans and calculation of income and capital of studentsE+W+S

5.—(1) In regulation 29 of the Income Support Regulations M19 (calculation of earnings derived from employed earner’s employment and income other than earnings)—

(a)in paragraph (2), for the words “paragraphs (3) and (4A) to (4D)" there shall be substituted the words “the following provisions of this regulation";

(b)after paragraph (2), there shall be inserted the following paragraphs—

(2A) The period over which a Career Development Loan, which is paid pursuant to section 2 of the Employment and Training Act 1973, shall be taken into account shall be the period of education and training intended to be supported by that loan.

(2B) Where grant income as defined in Chapter VIII of this Part has been paid to a person who ceases to be a student before the end of the period in respect of which that income is payable and, as a consequence, the whole or part of that income falls to be repaid by that person, that income shall be taken into account over the period beginning on the date on which that income is treated as paid under regulation 31 and ending—

(a)on the date on which repayment is made in full; or

(b)on the last date of the academic term or vacation during which that person ceased to be a student,

whichever shall first occur..

(2) After paragraph (2) of regulation 94 of the Jobseeker’s Allowance Regulations (calculation of earnings derived from employed earner’s employment and income other than earnings), there shall be inserted the following paragraphs—

(2A) The period over which a Career Development Loan, which is paid pursuant to section 2 of the Employment and Training Act 1973, shall be taken into account shall be the period of education and training intended to be supported by that loan.

(2B) Where grant income as defined in Chapter IX of this Part has been paid to a person who ceases to be a full-time student before the end of the period in respect of which that income is payable and, as a consequence, the whole or part of that income falls to be repaid by that person, that income shall be taken into account over the period beginning on the date on which that income is treated as paid under regulation 96 and ending—

(a)on the date on which repayment is made in full; or

(b)on the last date of the academic term or vacation during which that person ceased to be a full-time student,

whichever shall first occur..

Marginal Citations

M19Regulation 29 was amended by S.I. 1988/2022, 1989/1323 and 1990/547.

Income support and jobseeker’s allowance: calculation of weekly amount of incomeE+W+S

6.—(1) After paragraph (6) of regulation 32 of the Income Support Regulations M20 (calculation of weekly amount of income) there shall be added the following paragraph—

(6A) Where income is taken into account under paragraph (2B) of regulation 29 over the period specified in that paragraph, the amount of that income to be taken into account in respect of any week in that period shall be an amount equal to the amount of that income which would have been taken into account under regulation 62 had the person to whom that income was paid not ceased to be a student..

(2) After paragraph (6) of regulation 97 of the Jobseeker’s Allowance Regulations (calculation of weekly amount of income) there shall be inserted the following paragraph—

(7) Where income is taken into account under paragraph (2B) of regulation 94 over the period specified in that paragraph, the amount of that income to be taken into account in respect of any week in that period shall be an amount equal to the amount of that income which would have been taken into account under regulation 131 had the person to whom that income was paid not ceased to be a full-time student..

Marginal Citations

M20Regulation 32 was amended by S.I. 1988/663 and 1445, 1989/1323, 1995/482 and 1996/206.

Income support and jobseeker’s allowance: calculation of income other than earningsE+W+S

7.—(1) After paragraph (3A) of regulation 40 of the Income Support Regulations M21 (calculation of income other than earnings) there shall be inserted the following paragraph—

(3B) In the case of income to which regulation 29(2B) applies (calculation of income of former students), the amount of income to be taken into account for the purposes of paragraph (1) shall be the amount of that income calculated in accordance with regulation 32(6A) and on the basis that none of that income has been repaid..

(2) After paragraph (5) of regulation 103 of the Jobseeker’s Allowance Regulations (calculation of income other than earnings) there shall be inserted the following paragraph—

(5A) In the case of income to which regulation 94(2B) applies (calculation of income of former full-time students), the amount of income to be taken into account for the purposes of paragraph (1) shall be the amount of that income calculated in accordance with regulation 97(7) and on the basis that none of that income has been repaid..

Marginal Citations

M21Regulation 40(3A) was inserted by S.I. 1990/1549 and amended by S.I. 1991/236.

Income support and jobseeker’s allowance: calculation of tariff income from capitalE+W+S

8.  In both regulation 53 of the Income Support Regulations M22 and regulation 116 of the Jobseeker’s Allowance Regulations M23 (calculation of tariff income from capital)—

(a)in paragraph (1B)—

(i)in sub-paragraph (a), the words “, or residential accommodation" and “or accommodation" shall be omitted;

(ii)after sub-paragraph (c) there shall be inserted the following sub-paragraph—

(d)residential accommodation.;

(b)in sub-paragraph (a) of paragraph (1C), for the words “(a) or (b)" there shall be substituted the words “(a), (b) or (d)".

Marginal Citations

M22Regulation 53(1B) and (1C) was inserted by S.I. 1996/462.

M23Regulation 116(1B) and (1C) was inserted by S.I. 1996/1516.

Income support: notional capitalE+W+S

9.  In paragraph (3) of regulation 51 of the Income Support Regulations (notional capital), in sub-paragraph (a)(i), for the words “or a war widow’s pension" there shall be substituted the words “, war widow’s pension or a pension payable to a person as a widow under the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983 M24 in so far as that Order is made under the Naval and Marine Pay and Pensions Act 1865 M25 or the Pensions and Yeomanry Pay Act 1884 M26, or is made only under section 12(1) of the Social Security (Miscellaneous Provisions) Act 1977 M27 and any power of Her Majesty otherwise than under an enactment to make provision about pensions for or in respect of persons who have been disabled or who have died in consequence of service as members of the armed forces of the Crown,".

Marginal Citations

M24S.I. 1983/883; relevant amending instruments are S.I. 1993/598, 1994/1906, 1995/766 and 1996/732 and 1638. The Order needs to be read subject to the provisions of section 168 of the Pensions Act 1995 (c.26), the effect of which is to disregard subsequent marriages which have been dissolved or been the subject of a decree of judicial separation, in determining a person's entitlement to a widow's pension.

Income support: description of Greater London areaE+W+S

10.  In Schedule 3C to the Income Support Regulations M28 (the Greater London area), in paragraph (a), for the word “Barking" there shall be substituted the words “Barking and Dagenham".

Marginal Citations

M28Schedule 3C was inserted by S.I. 1992/3147.

Housing benefit and council tax benefit: recoverable overpayments and excess benefitE+W+S

F611.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Housing benefit: circumstances in which payment is to be made to a landlordE+W+S

F612.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Housing benefit: circumstances in which payment may be made to a landlordE+W+S

F613.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Housing benefit: ineligible service chargesE+W+S

F614.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Council tax benefit: maximum council tax benefitE+W+S

F615.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disability working allowance: reviewsE+W+S

16.  F7...

Textual Amendments

F7Reg. 16 revoked (5.7.1999 for specified purposes, 6.9.1999 for specified purposes, 5.10.1999 for specified purposes, 18.10.1999 for specified purposes, 29.11.1999 in so far as not already in force) by The Social Security and Child Support (Decisions and Appeals) Regulations 1999 (S.I. 1999/991), reg. 59(1), Sch. 4 (with reg. 59(2)(3))

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

Roger Evans

Parliamentary Under-Secretary of State,

Department of Social Security

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Income Support (General) Regulations 1987 (S.I. 1987/1967), the Jobseeker’s Allowance Regulations 1996 (S.I. 1996/207), the Housing Benefit (General) Regulations 1987 (S.I. 1987/1971), the Council Tax Benefit (General) Regulations 1992 (S.I. 1992/1814), the Family Credit (General) Regulations 1987 (S.I. 1987/1973) and the Disability Working Allowance (General) Regulations 1991 (S.I. 1991/2887).

In particular, these Regulations—

—provide new rules in all the income-related benefits and jobseeker’s allowance for the disregard of certain sums from the calculation of income other than earnings for the purpose of the benefits mentioned above; the new rules relate to payments made under the Community Care (Direct Payments) Act 1996 (c.30) and to Career Development Loans (regulation 2(1), (2), (3)(b), (4)(b), (5) and (6));

—extend the disregards in relation to income support and jobseeker’s allowance to income from personal pensions and retirement annuity contracts (regulation 2(3)(a) and (4)(a));

—treat Career Development Loans as income in the income-related benefits and in jobseeker’s allowance (regulation 3(3));

—modify the definition of “housing benefit expenditure" for the purpose of income support and jobseeker’s allowance (regulation 4);

—in income support and jobseeker’s allowance, ensure that a former student’s income is disregarded in respect of any period after their course or training is completed (regulation 2(3)(b) and (4)(b)) and, in relation to Career Development Loans and income paid to former students who have abandoned their course, to ensure that such income is not taken into account beyond the date the course would have ended or beyond the date any repayment has been made and to specify the rate at which such income is taken into account (regulations 5, 6 and 7);

—extend the rules on notional capital in income support in relation to pensions paid to widows of former service personnel so that they coincide with the corresponding rules relating to notional income (regulation 9);

—in housing benefit and council tax benefit, clarify the position on which official errors would result in such benefit being irrecoverable (regulation 11);

—in housing benefit, provide that where overpayments of benefit which are recovered from a landlord, the tenant’s liability to pay rent shall not be discharged in respect of the overpayment recovered (regulations 12 and 13);

—in housing benefit, specify the day on which a member of the family of a claimant for housing benefit is to be treated as reaching the age of 16 for the purpose of determining deductions to be made from the claimant’s eligible rent on account of charges made for meals which form part of that rent (regulation 14);

—in council tax benefit, provide that where a claimant’s appropriate maximum council tax benefit is calculated in a case where he is jointly and severally liable for council tax with other residents in a dwelling, a student who is excluded from entitlement to benefit shall be excluded from the calculation (regulation 15);

—change the position relating to the date upon which reviews of decisions relating to disability working allowance take effect (regulation 16);

—correct some technical errors and erroneous references (regulations 2(7), 3(1) and (2), 8 and 10).

These Regulations do not impose a charge on business.

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