PART 6Assessment of income and capital

SECTION 2

Income

Calculation of income and capital25

The income and capital of—

a

the claimant; and

b

any partner of the claimant,

shall be calculated in accordance with the rules set out in this Part; and any reference in this Part to the claimant shall apply equally to any partner of the claimant.

Claimant in receipt of guarantee credit26

In the case of a claimant who is in receipt, or whose partner is in receipt, of a guarantee credit, the whole of his capital and income shall be disregarded.

Calculation of claimant's income and capital in savings credit only cases27

1

In determining the income and capital of a claimant who has, or whose partner has, an award of state pension credit comprising only the savings credit, the relevant authority shall, subject to the following provisions of this regulation, use the calculation or estimate of the claimant's or, as the case may be, the claimant's partner's income and capital made by the Secretary of State for the purpose of determining that award.

2

The Secretary of State shall provide the relevant authority with details of the calculation or estimate—

a

if the claimant is on housing benefit or has claimed housing benefit, within the two working days following the day the calculation or estimate was determined, or as soon as reasonably practicable thereafter; or

b

if sub-paragraph (a) does not apply, within the two working days following the day he receives information from the relevant authority that the claimant or his partner has claimed housing benefit, or as soon as reasonably practicable thereafter.

3

The details provided by the Secretary of State shall include the amount taken into account in that determination in respect of the net income of the person claiming state pension credit.

4

The relevant authority shall modify the amount of the net income provided by the Secretary of State only in so far as necessary to take into account—

a

the amount of the savings credit payable;

b

in respect of any dependent children of the claimant, childcare charges taken into account under regulation 30(1)(c) (calculation of income on a weekly basis);

c

the higher amount disregarded under these Regulations in respect of—

i

lone parent's earnings;

ii

payments of maintenance, whether under a court order or not, which is made or due to be made by—

aa

the claimant's former partner, or the claimant's partner's former partner; or

bb

the parent of a child or young person where that child or young person is a member of the claimant's family except where that parent is the claimant or the claimant's partner;

d

any amount to be disregarded by virtue of F57paragraph 5A or 9(1) of Schedule 4;

e

the income and capital of any partner of the claimant who is treated as a member of the claimant's household under regulation 21 (circumstances in which a person is to be treated as being or not being a member of the household) to the extent that it is not taken into account in determining the net income of the person claiming state pension credit;

f

regulation 24 (circumstances in which income of a non-dependent is to be treated as claimant's), if the relevant authority determines that this provision applies in the claimant's case;

g

any modification under section 134(8) of the Administration Act (modifications by resolution of an authority) which is applicable in the claimant's case.

5

Regulations 29 to 49 shall not apply to the amount of the net income to be taken into account by the local authority under paragraph (1), but shall apply (so far as relevant) for the purpose of determining any modifications which fall to be made to that amount under paragraph (4).

6

The relevant authority shall for the purpose of determining the claimant's entitlement of housing benefit use, except where paragraphs (7) and (8) apply, the calculation of the claimant's capital made by the Secretary of State, and shall in particular apply the provisions of regulation 43 if the claimant's capital is calculated as being in excess of £16,000.

7

If paragraph (8) applies, the relevant authority shall calculate the claimant's capital in accordance with regulations 43 to 49 below.

8

This paragraph applies if—

a

the Secretary of State notifies the relevant authority that the claimant's capital has been determined as being £16,000 or less;

b

subsequent to that determination the claimant's capital rises to more than £16,000; and

c

the increase occurs whilst there is in force an assessed income period within the meaning of sections 6 and 9 of the State Pension Credit Act.

Calculation of income and capital where state pension credit is not payable28

The income and capital of a person to whom neither regulation 26 nor regulation 27 applies shall be calculated or estimated by the relevant authority in accordance with regulations 29 to 49.

Meaning of “income”29

1

For the purposes of these Regulations, “income” means income of any of the following descriptions—

a

earnings;

b

working tax creditF1;

c

retirement pension income within the meaning of the State Pension Credit ActF2;

d

income from annuity contracts (other than retirement pension income);

e

a war disablement pension or war widow's or widower's pension;

f

a foreign war disablement pension or war widow's or widower's pension;

g

a guaranteed income payment;

F45h

a payment made under article 21(1)(c) of the Armed Forces and Reserve Forces (Compensation Scheme) Order 2005F3, in any case where article 23(2)(c) applies;

i

income from capital, other than capital disregarded under Part 1 of Schedule 6;

j

social security benefits, other than retirement pension income or any of the following benefits—

F120zi

universal credit;

i

disability living allowance;

F68ia

personal independence payment;

F123iaa

adult disability payment;

F69ib

armed forces independence payment;

F121ic

disability assistance given in accordance with regulations made under section 31 of the Social Security (Scotland) Act 2018;

ii

attendance allowance payable under section 64 of the Act;

iii

an increase of disablement pension under section 104 or 105 of the Act;

iv

a payment under regulations made in exercise of the power conferred by paragraph 7(2)(b) of Part 2 of Schedule 8 to the ActF4;

v

an increase of an allowance payable in respect of constant attendance under paragraph 4 of Part 1 of Schedule 8 to the Act;

vi

child benefit;

vii

any guardian's allowance payable under section 77 of the Act;

viii

any increase for a dependant, other than the claimant's partner, payable in accordance with Part 4 of the Act;

ix

any social fund payment made under Part 8 of the Act;

x

Christmas bonus payable under Part 10 of the Act;

xi

housing benefit;

F67xii

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F101xiii

bereavement support payment under section 30 of the Pensions Act 2014;

xiv

statutory sick pay;

xv

statutory maternity pay;

F64xvi

F90... statutory paternity pay payable under Part 12ZA of the Act;

F91xvia

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

xvii

statutory adoption pay payable under Part 12ZB of the ActF5;

F81xviia

statutory shared parental pay payable under Part 12ZC of the Act;

F109xviiaa

statutory parental bereavement pay payable under Part 12ZD of the Act;

F106xviib

carer’s allowance supplement payable under section 81 of the Social Security (Scotland) Act 2018;

F107xviic

early years assistance given in accordance with section 32 of the Social Security (Scotland) Act 2018;

F108xviid

funeral expense assistance given in accordance with section 34 of the Social Security (Scotland) Act 2018.

F116xviie

any Scottish child payment assistance given in accordance with section 79 of the Social Security (Scotland) Act 2018.

F117xviif

any assistance given in accordance with the Carer’s Assistance (Young Carer Grants) (Scotland) Regulations 2019;

F118xviig

short-term assistance given in accordance with regulations made under section 36 of the Social Security (Scotland) Act 2018;

F119xviih

“winter heating assistance given in accordance with regulations under section 30 of the Social Security (Scotland) Act 2018;

xviii

any benefit similar to those mentioned in the preceding provisions of this paragraph payable under legislation having effect in Northern Ireland;

k

all foreign social security benefits which are similar to the social security benefits prescribed above;

F46l

a payment made—

i

under article 30 of the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 2006, in any case where article 30(1)(b) applies; or

ii

under article 12(8) of that Order, in any case where sub-paragraph (b) of that article applies;

F99m

a pension paid by a government to victims of National Socialist persecution;

n

payments under a scheme made under the Pneumoconiosis etc. (Worker's Compensation) Act 1979F6;

o

payments made towards the maintenance of the claimant by his spouse, civil partner, former spouse or former civil partner or towards the maintenance of the claimant's partner by his spouse, civil partner, former spouse or former civil partner, including payments made—

i

under a court order;

ii

under an agreement for maintenance; or

iii

voluntarily;

p

payments due from any person in respect of board and lodging accommodation provided by the claimant;

F48q

royalties or other sums paid as a consideration for the use of, or the right to use, any copyright, design, patent or trade mark;

F49r

any payment in respect of any—

i

book registered under the Public Lending Right Scheme 1982F7; or

ii

work made under any international public lending right scheme that is analogous to the Public Lending Right Scheme 1982;

s

any payment, other than a payment ordered by a court or made in settlement of a claim, made by or on behalf of a former employer of a person on account of the early retirement of that person on grounds of ill-health or disability;

t

any sum payable by way of pension out of money provided under the Civil List Act 1837F8, the Civil List Act 1937F9, the Civil List Act 1952F10, the Civil List Act 1972 F11 or the Civil List Act 1975 F12;

u

any income in lieu of that specified in sub-paragraphs (a) to (r);

v

any payment of rent made to a claimant who—

i

owns the freehold or leasehold interest in any property or is a tenant of any property;

ii

occupies part of the property; and

iii

has an agreement with another person allowing that person to occupy that property on payment of rent; F33...

w

any payment made at regular intervals under an equity release scheme.

F34x

PPF periodic payments within the meaning of section 17(1) of the State Pension Credit Act.

F552

For the purposes of these Regulations and subject to regulation 44(2) (capital to be disregarded), a claimant’s capital shall be treated as if it were a weekly income of—

a

£1 for each £500 in excess of £10,000; and

b

£1 for any excess which is not a complete £500.

3

Where the payment of any social security benefit prescribed under paragraph (1)F102, or retirement pension income to which section 16(1)(za) to (e) of the State Pension Credit Act applies, is subject to any deduction (other than an adjustment specified in paragraph (4)) the amount to be taken into account under paragraph (1) shall be the amount before the deduction is made.

4

The adjustments specified in this paragraph are those made in accordance with—

a

the Social Security (Overlapping Benefits) Regulations 1979F13;

b

the Social Security (Hospital In-Patients) Regulations 1975F14;

c

section 30DD or section 30E of the ActF15 (reductions in incapacity benefit in respect of pensions and councillor's allowances).

F44d

section 3 of the Welfare Reform Act (deductions from contributory employment and support allowance in respect of pensions and councillor’s allowances).

F103e

section 14 of the Pensions Act 2014 (pension sharing: reduction in the sharer’s section 4 pension);

f

section 45B or 55B of the Social Security Contributions and Benefits Act 1992 (reduction of additional pension in Category A retirement pension and shared additional pension: pension sharing).

F127g

regulation 16(2) of the Carer’s Assistance (Carer Support Payment) (Scotland) Regulations 2023.

5

Where an award of any working tax credit or child tax credit under the Tax Credits Act 2002 F16 is subject to a deduction by way of recovery of an overpayment of working tax credit or child tax credit which arose in a previous tax year the amount to be taken into account under paragraph (1) shall be the amount of working tax credit or child tax credit awarded less the amount of that deduction.

F566

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F567

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

In paragraph (1)(w), “equity release scheme” means a loan—

a

made between a person (“the lender”) and the claimant;

b

by means of which a sum of money is advanced by the lender to the claimant by way of payments at regular intervals; and

c

which is secured on a dwelling in which the claimant owns an estate or interest and which he occupies as his home.

Calculation of income on a weekly basis30

1

Subject to regulation 34 (disregard of changes in tax, contributions etc.) and 61 and 62 (calculation of weekly amounts and rent free periods), for the purposes of section 130(1)(c) of the Act (conditions for entitlement to housing benefit) the income of a claimant who has reached the qualifying age for state pension credit shall be calculated on a weekly basis—

a

by calculating or estimating the amount which is likely to be his average weekly income in accordance with this Part;

b

by adding to that amount the weekly income calculated under regulation 29(2);

c

by then deducting any relevant child care charges to which regulation 31 (treatment of child care charges) applies from any earnings which form part of the average weekly income or, in a case where the conditions in paragraph (2) are met, from those earnings plus whichever credit specified in sub-paragraph (b) of that paragraph is appropriate, up to a maximum deduction in respect of the claimant's family of whichever of the sums specified in paragraph (3) applies in his case.

2

The conditions of this paragraph are that—

a

the claimant's earnings which form part of his average weekly income are less than the lower of either his relevant child care charges or whichever of the deductions specified in paragraph (3) otherwise applies in his case; and

b

that claimant or, if he is a member of a couple either the claimant or his partner, is in receipt of working tax credit or child tax credit.

3

The maximum deduction to which paragraph (1)(c) above refers shall be—

C1a

where the claimant's family includes only one child in respect of whom relevant child care charges are paid, £175.00 per week;

C2b

where the claimant's family includes more than one child in respect of whom relevant child care charges are paid, £300.00 per week.

Treatment of child care charges31

1

This regulation applies where a claimant is incurring relevant child care charges and—

a

is a lone parent and is engaged in remunerative work;

b

is a member of a couple both of whom are engaged in remunerative work; or

c

is a member of a couple where one member is engaged in remunerative work and the other—

i

is incapacitated;

ii

is an in-patient in hospital; or

iii

is in prison (whether serving a custodial sentence or remanded in custody awaiting trial or sentence).

2

For the purposes of paragraph (1) and subject to paragraph (4), a person to whom paragraph (3) applies shall be treated as engaged in remunerative work for a period not exceeding 28 weeks during which he—

a

is paid statutory sick pay;

b

is paid short-term incapacity benefit at the lower rate under sections 30A to 30E of the ActF17;

F38ba

is paid an employment and support allowance;

c

is paid income support on the grounds of incapacity for work under regulation 4ZA of, and paragraph 7 or 14 of Schedule 1B to, the Income Support RegulationsF18; or

d

is credited with earnings on the grounds of incapacity for work F39or limited capability for work under regulation 8B of the Social Security (Credits) Regulations 1975F19.

3

This paragraph applies to a person who was engaged in remunerative work immediately before—

a

the first day of the period in respect of which he was first paid statutory sick pay, short-term incapacity benefitF40, an employment and support allowance or income support on the grounds of incapacity for work; or

b

the first day of the period in respect of which earnings are credited,

as the case may be.

4

In a case to which paragraph (2)(c) or (d) applies, the period of 28 weeks begins on the day on which the person is first paid income support or on the first day of the period in respect of which earnings are credited, as the case may be.

5

Relevant child care charges are those charges for care to which paragraphs (6) and (7) apply, and shall be estimated on a weekly basis in accordance with paragraph (10).

6

The charges are paid by the claimant for care which is provided—

a

in the case of any child of the claimant's family who is not disabled, in respect of the period beginning on that child's date of birth and ending on the day preceding the first Monday in September following that child's fifteenth birthday; or

b

in the case of any child of the claimant's family who is disabled, in respect of the period beginning on that person's date of birth and ending on the day preceding the first Monday in September following that person's sixteenth birthday.

7

The charges are paid for care which is provided by one or more of the care providers listed in paragraph (8) and are not paid—

a

in respect of the child's compulsory education;

b

by a claimant to a partner or by a partner to a claimant in respect of any child for whom either or any of them is responsible in accordance with regulation 20 (circumstances in which a person is treated as responsible or not responsible for another); or

c

in respect of care provided by a relative of a child wholly or mainly in the child's home.

8

The care to which paragraph (7) refers may be provided—

a

out of school hours, by a school on school premises or by a local authority—

i

for children who are not disabled in respect of the period beginning on their eighth birthday and ending on the day preceding the first Monday in September following their fifteenth birthday; or

ii

for children who are disabled in respect of the period beginning on their eighth birthday and ending on the day preceding the first Monday in September following their sixteenth birthday;

b

by a child care provider approved by an organisation accredited by the Secretary of State under the scheme established by the Tax Credit (New Category of Child Care Provider) Regulations 1999F20;

c

by persons registered under F61Part 10A of the Children Act 1989F61Part 2 of the Children and Families (Wales) Measure 2010F21;

F62d

in schools or establishments which are exempted from registration under Part 10A of the Children Act 1989 by virtue of paragraph 1 or 2 of Schedule 9A to that ActF22;

F62by a person who is excepted from registration under Part 2 of the Children and Families (Wales) Measure 2010 because the child care that person provides is in a school or establishment referred to in article 11, 12 or 14 of the Child Minding and Day Care Exceptions (Wales) Order 2010;

F63e

by—

i

persons registered under section 59(1) of the Public Services Reform (Scotland) Act 2010; or

ii

local authorities registered under section 83(1),

where the care provided is child minding or day care of children within the meaning of that Act; or

f

by a person prescribed in regulations made pursuant to section 12(4) of the Tax Credits Act; F54or

g

by a person who is registered under Chapter 2 or 3 of Part 3 of the Childcare Act 2006; or

h

by any of the schools mentioned in section 34(2) of the Childcare Act 2006 in circumstances where the requirement to register under Chapter 2 of Part 3 of that Act does not apply by virtue of section 34(2) of that Act; or

i

by any of the schools mentioned in section 53(2) of the Childcare Act 2006 in circumstances where the requirement to register under Chapter 3 of Part 3 of that Act does not apply by virtue of section 53(2) of that Act; or

j

by any of the establishments mentioned in section 18(5) of the Childcare Act 2006 in circumstances where the care is not included in the meaning of “childcare” for the purposes of Part 1 and Part 3 of that Act by virtue of that subsection; or

k

by a foster parent F58or kinship carer under the Fostering Services Regulations 2002, the Fostering Services (Wales) Regulations 2003 or the F59Looked After Children (Scotland) Regulations 2009 in relation to a child other than one whom the foster parent is fostering F60or kinship carer is looking after; or

l

by a domiciliary care worker under the Domiciliary Care Agencies Regulations 2002 or F105by a person who is employed, or engaged under a contract for services, to provide care and support by the provider of a domiciliary support service within the meaning of Part 1 of the Regulation and Inspection of Social Care (Wales) Act 2016; or

m

by a person who is not a relative of the child wholly or mainly in the child’s home.

9

In paragraphs (6) and (8)(a), “the first Monday in September” means the Monday which first occurs in the month of September in any year.

10

Relevant child care charges shall be estimated over such period, not exceeding a year, as is appropriate in order that the average weekly charge may be estimated accurately having regard to information as to the amount of that charge provided by the child minder or person providing the care.

11

For the purposes of paragraph (1)(c) the other member of a couple is to be treated as incapacitated where—

a

he is aged not less than 80;

b

he is aged less than 80 and—

i

the additional conditions specified in paragraph 13 of Schedule 3 to the Housing Benefit Regulations 2006 are treated as applying in his case; and

ii

he satisfies those conditions or would satisfy them but for his being treated as capable of work by virtue of a determination made in accordance with regulations made under section 171E of the ActF23;

F41ba

the F104other member of the couple would be a member of the support group orF100a member of the work-related activity group but for that other member being treated as not having limited capability for work by virtue of a determination made in accordance with the Employment and Support Allowance RegulationsF74or the Employment and Support Allowance Regulations 2013;

c

the claimant is, or is treated as, incapable of work and has been so incapable, or has been so treated as incapable, of work in accordance with the provisions of, and regulations made under, Part 12A of the Act (incapacity for work) for a continuous period of not less than 196 days; and for this purpose any two or more separate periods separated by a break of not more than 56 days shall be treated as one continuous period;

F42ca

the claimant (within the meaning of regulation 2(1)) has, or is treated as having, limited capability for work and has had, or been treated as having, limited capability for work in accordance with the Employment and Support Allowance RegulationsF75or the Employment and Support Allowance Regulations 2013 for a continuous period of not less than 196 days and for this purpose any two or more separate periods separated by a break of not more than 84 days must be treated as one continuous period;

d

there is payable in respect of him one or more of the following—

i

long-term incapacity benefit or short-term incapacity benefit at the higher rate specified in paragraph 2 of Part 1 of Schedule 4 to the ActF24;

ii

attendance allowance under section 64 of the Act;

iii

severe disablement allowance under section 68 of the Act;

iv

disability living allowance under section 71 of the Act;

v

increase of disablement pension under section 104 of the Act;

vi

a pension increase F47paid as part of a war disablement pension or under an industrial injuries scheme which is analogous to an allowance or increase of disablement pension under head (ii), (iv) or (v) above;

F43vii

main phase employment and support allowance;

F70viii

personal independence payment;

F71ix

armed forces independence payment;

F124x

adult disability payment;

e

a pensionF76, allowance or payment to which head (ii), (iv), (v), (vi) or (viii) of sub-paragraph (d) above refers was payable on account of his incapacity but has ceased to be payable in consequence of his becoming a patient within the meaning of regulation 22(5) (applicable amounts);

f

F36sub-paragraph (d) or (e) would apply to him if the legislative provisions referred to in those sub-paragraphs were provisions under any corresponding enactment having effect in Northern Ireland; or

g

he has an invalid carriage or other vehicle provided to him by the Secretary of State under section 5(2)(a) of and Schedule 2 to the National Health Service Act 1977 F25 or by Scottish Ministers under section 46 of the National Health Service (Scotland) Act 1978 F26 or provided by the Department of Health and Social Services for Northern Ireland under Article 30(1) of the Health and Personal Social Services (Northern Ireland) Order 1972F27.

12

For the purposes of paragraph (11), once paragraph (11)(c) applies to the claimant, if he then ceases, for a period of 56 days or less, to be incapable, or to be treated as incapable, of work, that paragraph shall, on his again becoming so incapable, or so treated as incapable, of work at the end of that period, immediately thereafter apply to him for so long as he remains incapable, or is treated as remaining incapable, of work.

F3712A

For the purposes of paragraph (11), once paragraph (11)(ca) applies to the claimant, if he then ceases, for a period of 84 days or less, to have, or to be treated as having, limited capability for work, that paragraph is, on his again having, or being treated as having, limited capability for work at the end of that period, immediately thereafter to apply to him for so long as he has, or is treated as having, limited capability for work.

13

For the purposes of paragraphs (6) and (8)(a), a person is disabled if he is a person—

a

in respect of whom disability living allowance is payable, or has ceased to be payable solely because he is a patient;

F122aa

in respect of whom child disability payment is payable;

F79b

who is certified as severely sight impaired or blind by a consultant ophthalmologist;

c

who ceased to be F80certified as severely sight impaired or blind within the period beginning 28 weeks before the first Monday in September following that person's fifteenth birthday and ending on the day preceding the first Monday in September following that person's sixteenth birthdayF72; or

d

in respect of whom personal independence payment is payable, or F77has ceased to be payable solely by virtue of regulations made under section 86(1) (hospital in-patients) of the 2012 ActF73; F126...

F125da

in respect of whom adult disability payment is payable, or has ceased to be payable solely by virtue of regulation 28 (effect of admission to hospital on ongoing entitlement to Adult Disability Payment) of the Disability Assistance for Working Age People (Scotland) Regulations 2022; or

e

in respect of whom armed forces independence payment is payable.

14

For the purposes of paragraph (1) a person on maternity leave, paternity leaveF83, adoption leaveF110, shared parental leave or parental bereavement leave shall be treated as if he is engaged in remunerative work for the period specified in paragraph (15) (“the relevant period”) provided that—

a

in the week before the period of maternity leave, paternity leaveF86, adoption leave F111, shared parental leave or parental bereavement leave began he was in remunerative work;

b

the claimant is incurring relevant child care charges within the meaning of paragraph (5); and

c

he is entitled to statutory maternity pay under section 164 of the Act, F92F65... F93... additional statutory paternity pay by virtue of section 171ZEA or 171ZEB of the ActF28, statutory adoption pay by virtue of section 171ZL of the Act F29F82, statutory shared parental pay by virtue of section 171ZU or 171ZV of the ActF112, statutory parental bereavement pay by virtue of section 171ZZ6 of the Act or maternity allowance under section 35 of the Act.

15

The relevant period shall begin on the day on which the person's maternity leave, paternity leaveF113, parental bereavement leave or adoption leave commences and shall end on—

a

the date that leave ends;

b

if no child care element of working tax credit is in payment on the date that entitlement to maternity allowance, statutory maternity pay, F94F66... statutory paternity payF84, statutory adoption payF114, statutory shared parental pay or statutory parental bereavement pay ends, the date that entitlement ends; or

c

if a child care element of working tax credit is in payment on the date that entitlement to maternity allowance, statutory maternity pay, F95F66... statutory paternity payF85, statutory adoption payF115, statutory shared parental pay or statutory parental bereavement pay ends, the date that entitlement to that award of the child care element of working tax credit ends,

whichever shall occur first.

16

In paragraph (15), “child care element” of working tax credit means the element of working tax credit prescribed under section 12 of the Tax Credits Act F30 (child care element).

Calculation of average weekly income from tax credits32

1

This regulation applies where a claimant receives a tax credit.

2

Where this regulation applies, the period over which a tax credit is to be taken into account shall be the period set out in paragraph (3).

3

Where the instalment in respect of which payment of a tax credit is made is—

a

a daily instalment, the period is 1 day, being the day in respect of which the instalment is paid;

b

a weekly instalment, the period is 7 days, ending on the day on which the instalment is due to be paid;

c

a two weekly instalment, the period is 14 days, commencing 6 days before the day on which the instalment is due to be paid;

d

a four weekly instalment, the period is 28 days, ending on the day on which the instalment is due to be paid.

4

For the purposes of this regulation “tax credit” means working tax credit.

Calculation of weekly income33

1

Except where paragraphs (2)F88, (2A), (3A) and (4) apply, for the purposes of calculating the weekly income of the claimant, where the period in respect of which a payment is made—

a

does not exceed a week, the whole of that payment shall be included in the claimant's weekly income;

b

exceeds a week, the amount to be included in the claimant's weekly income shall be determined—

i

in a case where that period is a month, by multiplying the amount of the payment by 12 and dividing the product by 52;

ii

in a case where that period is three months, by multiplying the amount of the payment by 4 and dividing the product by 52;

iii

in a case where that period is a year, by dividing the amount of the payment by 52;

iv

in any other case, by multiplying the amount of the payment by 7 and dividing the product by the number of days in the period in respect of which it is made.

2

Where—

a

the claimant's regular pattern of work is such that he does not work the same hours every week; or

b

the amount of the claimant's income fluctuates and has changed more than once,

the weekly amount of that claimant's income shall be determined—

i

if, in a case to which sub-paragraph (a) applies, there is a recognised cycle of work, by reference to his average weekly income over the period of the complete cycle (including, where the cycle involves periods in which the claimant does no work, those periods but disregarding any other absences); or

ii

in any other case, on the basis of—

aa

the last two payments if those payments are one month or more apart;

bb

the last four payments if the last two payments are less than one month apart; or

cc

calculating or estimating such other payments as may, in the particular circumstances of the case, enable the claimant's average weekly income to be determined more accurately.

F872A

Income calculated pursuant to paragraph (2) shall be taken into account—

a

in the case of a claim, on the date the claim was made or treated as made, and the first day of each benefit week thereafter;

b

in the case of a claim or award where the claimant commences employment, the first day of the benefit week following the date the claimant commences that employment, and the first day of each benefit week thereafter; or

c

in the case of a claim or award where the claimant’s average weekly earnings from employment change, the first day of the benefit week following the date the claimant’s earnings from employment change so as to require recalculation under this paragraph, and the first day of each benefit week thereafter,

regardless of whether those earnings were actually received in that benefit week.

3

For the purposes of paragraph (2)(b) the last payments are the last payments before the date the claim was made or treated as made or, if there is a subsequent supersession under paragraph 4 of Schedule 7 to the Child Support, Pensions and Social Security Act 2000F31, the last payments before the date of the supersession.

F893A

A claimant’s earnings from employment as an employed earner not calculated pursuant to paragraph (2) shall be taken into account—

a

in the case of a claim, on the date that the claim was made or treated as made and the first day of each benefit week thereafter;

b

in the case of a claim or award where the claimant commences employment, the first day of the benefit week following the date the claimant commences that employment, and the first day of each benefit week thereafter; or

c

in the case of a claim or award where the claimant’s average weekly earnings from employment change, the first day of the benefit week following the date of the change, and the beginning of each benefit week thereafter,

regardless of whether those earnings were actually received in that benefit week.

4

If a claimant is entitled to receive a payment to which paragraph (5) applies, the amount of that payment shall be treated as if made in respect of a period of a year.

5

This paragraph applies to—

F50a

royalties or other sums paid as a consideration for the use of, or the right to use, any copyright, design, patent or trade mark;

F51b

any payment in respect of any —

i

book registered under the Public Lending Right Scheme 1982 F32; or

ii

work made under any international public lending right scheme that is analogous to the Public Lending Right Scheme 1982; or

c

any payment which is made on an occasional basis.

6

The period under which any benefit under the benefit Acts is to be taken into account shall be the period in respect of which that benefit is payable.

7

Where payments are made in a currency other than Sterling, the value of the payment shall be determined by taking the Sterling equivalent on the date the payment is made.

8

The sums specified in Schedule 4 shall be disregarded in calculating—

a

the claimant's earnings; and

F52b

any amount to which paragraph (5) applies where the claimant is the first owner of the copyright, design, patent or trademark, or an original contributor to the book or work referred to in paragraph (5)(b).

F538A

For the purpose of paragraph (8)(b), and for that purpose only, the amounts specified in paragraph (5) shall be treated as though they were earnings.

9

Income specified in Schedule 5 is to be disregarded in the calculation of a claimant's income.

F3510

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

Schedule 6 shall have effect so that—

a

the capital specified in Part 1 shall be disregarded for the purpose of determining a claimant's income; and

b

the capital specified in Part 2 shall be disregarded for the purpose of determining a claimant's income under regulation 29(2) (weekly income from capital).

12

In the case of any income taken into account for the purpose of calculating a person's income, there shall be disregarded any amount payable by way of tax.

F3513

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3514

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disregard of changes in tax, contributions etc34

In calculating the claimant's income the appropriate authority may disregard any legislative change—

a

in the basic or other rates of income tax;

F96aa

in the Scottish basic or other rates of income tax;

b

in the amount of any personal tax F98reliefs under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007;

c

in the rates of F78national insurance contributions payable under the Act or in the lower earnings limit or upper earnings limit for Class 1 contributions under that Act, F128or the lower or upper limits applicable to Class 4 contributions under that Act F129...;

d

in the amount of tax payable as a result of an increase in the weekly rate of Category A, B, C or D retirement pension or any addition thereto or any graduated pension payable under the Act F97or a state pension under Part 1 of the Pensions Act 2014; and

e

in the maximum rate of child tax credit or working tax credit,

for a period not exceeding 30 benefit weeks beginning with the benefit week immediately following the date from which the change is effective.