18

1

In a case where the relevant person is a person who satisfies the conditions set out in either sub-paragraph (2) or (3), and his net earnings equal or exceed the total of the amounts set out in sub-paragraph (4), the amount of his earnings that falls to be disregarded under paragraphs 3 to 10 of this Schedule shall be increased by an amount equal to either–

a

the tax credit referred to in regulation 46(1)(aa) of the Family Credit Regulations if he satisfies the conditions of sub-paragraph (2); or

b

the tax credit referred to in regulation 51(1)(bb) of the Disability Working Allowance Regulations if he satisfies the conditions of sub-paragraph (3),

and in a case where the relevant person satisfies the conditions of both sub-paragraphs (2) and (3), his disregarded earnings shall be increased by the higher of the two amounts, or if they are the same, by that amount.

2

The conditions of this sub-paragraph are that–

a

the relevant person or, if he is a member of a couple, the relevant person or his partner, is a person to whom regulation 46(1)(aa) of the Family Credit Regulations applies; or

b

–

i

the relevant person is or, if he is a member of a couple, one member of that couple is or both members are, engaged in remunerative work for on average not less than 30 hours per week; and

ii

the relevant person’s applicable amount includes a family premium under paragraph 3 of Schedule 1 to these Regulations.

3

The conditions of this sub-paragraph are that–

a

the relevant person or, if he is a member of a couple, the relevant person or his partner, is a person to whom regulation 51(1)(bb) of the Disability Working Allowance Regulations applies; or

b

–

i

the relevant person is or, if he is a member of a couple, one member of that couple is or both members are, engaged in remunerative work for on average not less than 30 hours per week; and

ii

the relevant person’s applicable amount includes a higher pensioner premium or a disability premium under paragraph 10 or 11 of Schedule 1 to these Regulations respectively; and

iii

where he is a member of a couple, at least one member of that couple satisfies the qualifying conditions for the higher pensioner premium or the disability premium referred to in sub-paragraph (ii) above and is engaged in remunerative work for on average not less than 16 hours per week.

4

The following are the amounts referred to in sub-paragraph (1)–

a

the amount calculated as disregardable from the relevant person’s earnings under paragraphs 3 to 10 of this Schedule;

b

the amount of child care charges calculated as deductible under regulation 18(1); and

c

–

i

in the case of a relevant person who satisfies the conditions of sub-paragraph (2), the amount of the tax credit referred to in regulation 46(1)(aa) of the Family Credit Regulations; or

ii

in the case of a relevant person who satisfies the conditions of sub-paragraph (3), the amount of the tax credit referred to in regulation 51(1)(bb) of the Disability Working Allowance Regulations;

and in a case where the relevant person satisfies the conditions of both sub-paragraphs (2) and (3) the higher of the two amounts or, if they are the same, that amount.

5

In this paragraph–

• “the Family Credit Regulations” means the Family Credit (General) Regulations 19878; and

• “the Disability Working Allowance Regulations” means the Disability Working Allowance (General) Regulations 19919.