SCHEDULE 4Sums disregarded from claimant's earnings
1.
Where two or more of paragraphs 2 to 5 apply in any particular case the overall maximum sum which falls to be disregarded in that case under those paragraphs is restricted to—
(a)
£25 in the case of a lone parent;
(b)
£20 in any other case.
2.
In a case where a claimant is a lone parent, £25 of earnings.
3.
(1)
In a case of earnings from any employment or employments to which sub-paragraph (2) applies, £20.
(2)
This paragraph applies to employment—
(a)
as a part-time fire-fighter employed by a fire and rescue authority constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 F1 or a scheme to which section 4 of that Act applies;
(b)
as a part-time fire-fighter employed by a fire and rescue authority (as defined in section 1 of the Fire (Scotland) Act 2005 F2) or a joint fire and rescue board constituted by an amalgamation scheme made under section 2(1) of that Act;
(c)
as an auxiliary coastguard in respect of coast rescue activities;
(d)
in the manning or launching of a lifeboat if the employment is part-time;
(e)
as a member of any territorial or reserve force prescribed in Part 1 of Schedule 6 to Social Security (Contributions) Regulations 2001 F3.
(3)
If—
(a)
any of the earnings of the claimant or, if he has a partner, his partner, or both of them, are disregarded under sub-paragraph (1); and
(b)
either of them has, or they both have, other earnings,
so much of those other earnings as would not, in aggregate with the earnings disregarded under that sub-paragraph, exceed £20.
4.
(1)
If the claimant or, if he has a partner, his partner is a carer, or both are carers, £20 of any earnings received from his or their employment.
(2)
Where the carer premium is awarded in respect of the claimant and of any partner of his, their earnings shall for the purposes of this paragraph be aggregated, but the amount to be disregarded in accordance with sub-paragraph (1) shall not exceed £20 of the aggregated amount.
(3)
In this paragraph the claimant or his partner is a carer if paragraph 9 of Part 3 of Schedule 3 (amount applicable for carers) is satisfied in respect of him.
5.
(1)
£20 is disregarded if the claimant or, if he has a partner, his partner—
(a)
is in receipt of—
(i)
long-term incapacity benefit under Section 30A of the Act F4;
(ii)
severe disablement allowance under section 68 of the Act F5;
(iii)
attendance allowance;
(iv)
disability living allowance under sections 71 to 76 of the Act F6;
(v)
(vi)
the disability element or the severe disability element of working tax credit under Schedule 2 to the Working Tax Credit Regulations F10; or
F11(vii)
main phase employment and support allowance; or
(b)
is or are registered as blind in a register compiled by a local authority under section 29 of the National Assistance Act 1948 F12 (welfare services) or, in Scotland, has been certified as blind and in consequence is registered as blind in a register maintained by or on behalf of a council constituted under section 2 of the Local Government (Scotland) Act 1994 F13; or
(c)
is, or is treated as, incapable of work in accordance with the provisions of, and regulations made under, Part 12A of the Act F14 (incapacity for work), and has been incapable, or has been treated as incapable, of work for a continuous period of not less than—
(i)
in the case of a claimant who is terminally ill within the meaning of section 30B(4) of that Act F15, 196 days;
(ii)
in any other case, 364 days; F16or
F16(d)
has, or is treated as having, limited capability for work within the meaning of section 1(4) of the Welfare Reform Act or limited capability for work-related activity within the meaning of section 2(5) of that Act and either—
(i)
the assessment phase as defined in section 24(2) of the Welfare Reform Act has ended; or
(ii)
regulation 7 of the Employment and Support Allowance Regulations (circumstances where the condition that the assessment phase has ended before entitlement to the support component or the work-related activity component arises does not apply) applies.
(2)
Subject to sub-paragraph (3), £20 is disregarded if the claimant or, if he has a partner, his partner has, within a period of 8 weeks ending on the day in respect of which the claimant or his partner attains the qualifying age for state pension credit, had an award of housing benefit or council tax benefit and—
(a)
£20 was disregarded in respect of earnings taken into account in that award;
(b)
the person whose earnings qualified for the disregard continues in employment after the termination of that award.
(3)
The disregard of £20 specified in sub-paragraph (2) applies so long as there is no break, other than a break which does not exceed 8 weeks, in a person's entitlement to housing benefit or council tax benefit or in employment following the first day in respect of which that benefit is awarded.
(4)
£20 is the maximum amount which may be disregarded under this paragraph, notwithstanding that, where the claimant has a partner, both the claimant and his partner satisfy the requirements of this paragraph.
F175A.
(1)
Where—
(a)
the claimant (or if the claimant is a member of a couple, at least one member of that couple) is a person to whom sub-paragraph (5) applies;
(b)
the Secretary of State is satisfied that that person is undertaking exempt work as defined in sub-paragraph (6); and
(c)
regulation 26 does not apply,
the amount specified in sub-paragraph (7) (“the specified amount”).
(2)
Where this paragraph applies, paragraphs 1 to 5 and 7 do not apply; but in any case where the claimant is a lone parent, and the specified amount would be less than the amount specified in paragraph 2, then paragraph 2 applies instead of this paragraph.
(3)
Notwithstanding regulation 23 (calculation of income and capital of members of claimant’s family and of a polygamous marriage), if sub-paragraph (1) applies to one member of a couple (“A”) it shall not apply to the other member of that couple (“B”) except to the extent provided in sub-paragraph (4).
(4)
Where A’s earnings are less than the specified amount, there shall also be disregarded so much of B’s earnings as would not when aggregated with A’s earnings exceed the specified amount; but the amount of B’s earnings which may be disregarded under this sub-paragraph is limited to a maximum of £20 unless the Secretary of State is satisfied that B is also undertaking exempt work.
(5)
This sub-paragraph applies to a person who is—
(a)
in receipt of a contributory employment and support allowance;
(b)
in receipt of incapacity benefit;
(c)
in receipt of severe disablement allowance; or
(d)
being credited with earnings on the grounds of incapacity for work or limited capability for work under regulation 8B of the Social Security (Credits) Regulations 1975.
(6)
“Exempt work” means work of the kind described in—
(a)
regulation 45(2), (3) or (4) of the Employment and Support Allowance Regulations; or (as the case may be)
(b)
regulation 17(2), (3) or (4) of the Social Security (Incapacity for Work) (General) Regulations 1995,
and, in determining for the purposes of this paragraph whether a claimant or a member of a couple is undertaking any type of exempt work, it is immaterial whether that person or their partner is also undertaking other work.
(7)
The specified amount is the amount of money from time to time mentioned in any provision referred to in sub-paragraph (6) by virtue of which the work referred to in sub-paragraph (1) is exempt (or, where more than one such provision is relevant and those provisions mention different amounts of money, the highest of those amounts).
6.
Any amount or the balance of any amount which would fall to be disregarded under paragraph 18 or 19 of Schedule 5 had the claimant's income which does not consist of earnings been sufficient to entitle him to the full disregarded thereunder.
7.
Except where the claimant or his partner qualifies for a £20 disregard under the preceding provisions of this Schedule—
(a)
£5 shall be disregarded if a claimant who has no partner has earnings;
(b)
£10 shall be disregarded if a claimant who has a partner has earnings.
8.
Any earnings, other than earnings referred to in regulation 33(8)(b) (copyright, F18design, patent or trade mark), derived from employment which ended before the day in respect of which the claimant first satisfies the conditions for entitlement to housing benefit.
9.
(1)
In a case where the claimant is a person who satisfies at least one of the conditions set out in sub-paragraph (2), and his net earnings equal or exceed the total of the amounts set out in sub-paragraph (3), the amount of his earnings that falls to be disregarded under this Schedule shall be increased by F19£17.10.
(2)
The conditions of this sub-paragraph are that—
(a)
the claimant, or if he has a partner, either the claimant or his partner, is a person to whom regulation 20(1)(c) of the Working Tax Credit Regulations applies; or
(b)
the claimant—
(i)
is, or any partner of his is, aged at least 25 and is engaged in remunerative work for on average not less than 30 hours per week; or
(ii)
if he is a member of a couple—
(aa)
at least one member of that couple is engaged in remunerative work for on average not less than 16 hours per week; and
(bb)
his applicable amount includes a family premium under paragraph 3 of Schedule 3; or
(iii)
is a lone parent who is engaged in remunerative work for on average not less than 16 hours per week; or
(iv)
is, or if he has a partner, one of them is, engaged in remunerative work for on average not less than 16 hours per week, and paragraph 5(1) above is satisfied in respect of that person; or
(c)
the claimant is, or, if he has a partner, one of them is, a person to whom regulation 18(3) of the Working Tax Credit Regulations F20 (eligibility for 50 plus element) applies, or would apply if an application for working tax credit were to be made in his case.
(3)
The following are the amounts referred to in sub-paragraph (1)—
(a)
any amount disregarded under this Schedule;
(b)
the amount of child care charges calculated as deductible under regulation 31(1)(c) (treatment of child care charges); and
(c)
F21£17.10.
(4)
The provisions of regulation 6 (remunerative work) shall apply in determining whether or not a person works for on average not less than 30 hours per week, but as if the reference to 16 hours in paragraph (1) of that regulation was a reference to 30 hours.
10.
Where a payment of earnings is made in a currency other than Sterling any banking charge or commission payable in converting that payment into Sterling.