PART 6Assessment of income and capital

SECTION 5

Other income

Income paid to third parties42

1

Any payment of income, other than a payment specified in F3paragraphs (2) or (3), to a third party in respect of the claimant shall be treated as possessed by the claimant.

2

Paragraph (1) shall not apply in respect of a payment of income made under an occupational pension scheme F2, in respect of a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fund where—

a

a bankruptcy order has been made in respect of the person in respect of whom the payment has been made or, in Scotland, the estate of that person is subject to sequestration or a judicial factor has been appointed on that person's estate under section 41 of the Solicitors (Scotland) Act 1980 F1;

b

the payment is made to the trustee in bankruptcy or any other person acting on behalf of the creditors; and

c

the person referred to in sub-paragraph (a) and his partner does not possess, or is not treated as possessing, any other income apart from that payment.

F43

Paragraph (1) shall not apply in respect of any payment of income other than earnings, or earnings derived from employment as an employed earner, arising out of the claimant’s participation in a service user group.