Income to be disregarded4.

In Schedule 7 to the Jobseeker’s Allowance Regulations M1 (income to be disregarded)—

(a)

for paragraph 60, there shall be substituted the following paragraph—

“60.

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).”;

(b)

at the end there shall be added the following paragraph—

“62.

(1)

Subject to sub-paragraph (2), 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 payment to that person—

(a)

to meet expenses wholly and necessarily incurred whilst carrying on the commercial activity;

(b)

which is used or intended to be used to maintain repayments on a loan taken out by that person for the purpose of establishing or carrying on the commercial activity,

in respect of which such assistance is or was received.

(2)

Sub-paragraph (1) shall apply only in respect of payments which are paid to that person from the special account as defined for the purposes of Chapter IVA of Part VIII.”.