The Social Security (New Deal Pilot) Regulations 1999

Explanatory Note

(This note is not part of the Regulations)

These Regulations replace the pilot scheme established by the Social Security (New Deal Pilot) Regulations 1998 (S.I. 1998/2825), which were amended by the Social Security (New Deal Pilot) Amendment Regulations 1999 (S.I. 1999/976), with a further pilot scheme. The scheme relates to persons who claim a jobseeker’s allowance and who fulfil the criteria in regulation 3, 4 or 5 as to age, the period over which they have been receiving benefit and the location of appropriate offices at which they are claiming benefit, as identified in one of the Schedules.

Regulation 6 has the effect that if such a person without good cause refuses or fails to participate in the employment programme known as the intensive activity period of the New Deal pilots for 25 plus, or loses his place on such a programme due to misconduct, he will receive a sanction under section 19 of the Jobseekers Act 1995 (“the 1995 Act”) and the Jobseeker’s Allowance Regulations 1996 (S.I. 1996/207) (“the 1996 Regulations”). The effect of this will be a two week or four week loss or reduction in his jobseeker’s allowance.

Regulation 7 has the effect that a person participating in the intensive activity period of the New Deal pilots for 25 plus shall be liable only to the employment programme sanctions under section 19(5) of the 1995 Act, rather than the sanctions under section 19(6).

Regulation 8 treats as available for employment in any week a person participating in the intensive activity period of the New Deal pilots for 25 plus and who is on an employment-related course for not less than 3 days in that week. Regulation 8 also disapplies regulation 15(a) of the 1996 Regulations (circumstances in which a person is not to be regarded as available) where a person is participating in such a course.

Regulation 9 adds to the list of circumstances to be regarded as good cause for any act or omission for the purposes of section 19 of the 1995 Act.

Regulation 10 sets out circumstances in which an income-based jobseeker’s allowance is payable to a person even though section 19 of the 1995 Act would normally prevent it.

Part III of these Regulations makes various consequential amendments to 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) so as to enable participants in the intensive activity period of the New Deal pilots for 25 plus to continue to claim those benefits—

• regulation 12 modifies the definition of “training allowance” which applies for the purposes of those benefits in relation to participants in the pilot scheme;

• regulation 13 provides that participants in the pilot scheme shall not be treated as in remunerative work;

• regulation 14 ensures that certain payments made to participants in the pilot scheme are not treated as either notional income or notional earnings, and regulation 15 ensures that such payments are not treated as notional capital;

• regulations 16 and 17 ensure that certain payments made to participants in the pilot scheme are disregarded as both income and capital;

• regulation 18 provides that participants in the pilot scheme who are receiving assistance in pursuing self-employed earner’s employment are subject to special rules as to the treatment of their income and capital.

Regulation 19 provides that these Regulations apply to a person to whom the Social Security (New Deal Pilot) Regulations 1998 applied immediately before they ceased to have effect.

These Regulations do not impose any charge on business.