PART 6Assessment of income and capital

SECTION 2Income

Calculation of weekly income33

1

Except where paragraphs (2) 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.

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 2000134, the last payments before the date of the supersession.

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—

a

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

b

any payment made to the claimant in respect of any book registered under the Public Lending Right Scheme 1982135; and

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

b

any amount to which paragraph (5) applies if the claimant or his partner is the first owner of the copyright, patent or trade mark, or the author of the book registered under the Public Lending Right Scheme 1982.

9

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

10

An authority may modify this Part so as to provide for disregarding, in determining a woman’s income (whether she is the occupier of a dwelling or any other person whose income falls to be aggregated with that of the occupier of a dwelling), the whole or any part of a pension payable to her as a widow under the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 1983136 insofar as that Order is made under the Naval and Marine Pay and Pensions Act 1865137, or is made only under section 12(1) of the Social Security (Miscellaneous Provisions) Act 1977138 and any power of Her Majesty otherwise than under an enactment to make provision about pensions for or in respect of persons who have been disabled or have died in consequence of service as members of the armed forces of the Crown, to the extent that such a pension does not fall to be disregarded by virtue of paragraph 1 of Schedule 5.

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.

13

An authority may modify this Part so as to provide for disregarding, in determining a person’s income (whether he is the occupier of a dwelling or any other person whose income falls to be aggregated with that of the occupier of a dwelling), the whole or any part of any war widower’s pension payable to that person.