(This note is not part of the Regulations)

These Regulations further amend the Social Security (Incapacity Benefit) Regulations 1994 (S.I.1994/2946) (“the principal Regulations”), the Social Security (Claims and Payments) Regulations 1987 (S.I.1987/1968) (“the Claims and Payments Regulations”), the Social Security (Credits) Regulations 1975 (S.I.1975/556) (“the Credits Regulations”), and the Social Security (Payments on Account, Overpayments and Recovery) Regulations 1988 (S.I.1988/664) (“the Payments on Account, Overpayments and Recovery Regulations”).

The principal Regulations are amended—

a

by introducing Part IA in consequence of section 62 of the Welfare Reform and Pensions Act 1999 (c. 30) (incapacity benefit: restriction to recent contributors) so that those entitled to invalid care allowance, disability working allowance or disabled person’s tax credit will continue to meet the old first contribution condition (regulation 2(2));

b

so that certain days may be treated or not treated as days of incapacity (regulation 2(3) and (4));

c

by introducing in consequence of—

i

section 63 of the Welfare Reform and Pensions Act 1999 (incapacity benefit: reduction for pension payments) Part V which makes provision for: defining and including permanent health insurance as pension payment; the disregard of certain pension payments; the date from which pension payment is to be taken into account; the date from which a change in rate of the pension takes effect; the pension payments made other than weekly; priority of pension payment deductions; and the exemption for those entitled to the highest rate care component of disability living allowance (regulation 2(5)), and

ii

section 64 of the Welfare Reform and Pensions Act 1999 (incapacity benefit: persons incapacitated in youth) Part IV which makes provision for: circumstances in which the age limit of 20 may be extended to 25; the conditions as to presence or residence in Great Britain; the circumstances in which a person is or is not to be treated as receiving full-time education; the circumstances in which a previous claimant who does not satisfy the age condition becomes again entitled; and the circumstances in which a person formerly entitled to severe disablement allowance is transferred to incapacity benefit (regulation 2(5)).

The Claims and Payments Regulations are amended to make consequential provision so that small amounts of incapacity benefit, after reduction for pension payment, may be paid at longer intervals (regulation 3).

The Credits Regulations are amended to make consequential provision by revoking regulation 9 and to make amendments consequential on that revocation (regulation 4).

The Payments on Account, Overpayments and Recovery Regulations are amended to make consequential provision so that subsequent payment of incapacity benefit to a person incapacitated in youth is to be offset against child benefit paid in respect of him for the same period, and vice versa (regulation 5).

These Regulations also make saving provision (regulation 6).

An assessment of the impact on business of the measures arising from these Regulations, which was made during the course of the passage through Parliament of the Welfare Reform and Pensions Act 1999, is detailed in the Regulatory Impact Assessment of that Act. A copy of the Assessment has been placed in the libraries of both Houses of Parliament. Copies of the Assessment are available from the Department of Social Security, Regulatory Impact Unit, 3rd Floor, The Adelphi, 1-11 John Adam Street, London WC2N 6HT.