SCHEDULE 6Capital to be disregarded
PART 1Capital to be disregarded generally
1
Any premises acquired for occupation by the claimant which he intends to occupy as his home within 26 weeks of the date of acquisition or such longer period as is reasonable in the circumstances to enable the claimant to obtain possession and commence occupation of the premises.
2
Any premises which the claimant intends to occupy as his home, and in respect of which he is taking steps to obtain possession and has sought legal advice, or has commenced legal proceedings, with a view to obtaining possession, for a period of 26 weeks from the date on which he first sought such advice or first commenced such proceedings whichever is the earlier, or such longer period as is reasonable in the circumstances to enable him to obtain possession and commence occupation of those premises.
3
Any premises which the claimant intends to occupy as his home to which essential repairs or alterations are required in order to render them fit for such occupation, for a period of 26 weeks from the date on which the claimant first takes steps to effect those repairs or alterations, or such longer period as is necessary to enable those repairs or alterations to be carried out.
4
Any premises occupied in whole or in part—
a
by a person who is a relative of the claimant or of his partner as his home F23where that person has attained the qualifying age for state pension credit or is incapacitated;
b
by the former partner of the claimant as his home; but this provision shall not apply where the former partner is a person from whom the claimant is estranged or divorced or with whom he had formed a civil partnership that has been dissolved.
5
Any future interest in property of any kind, other than land or premises in respect of which the claimant has granted a subsisting lease or tenancy, including sub-leases or sub-tenancies.
6
Where a claimant has ceased to occupy what was formerly the dwelling occupied as the home following his estrangement or divorce from his former partner or the dissolution of a civil partnership with his former partner, that dwelling for a period of 26 weeks from the date on which he ceased to occupy that dwelling or, where the dwelling is occupied as the home by the former partner who is a lone parent, for so long as it is so occupied.
7
Any premises where the claimant is taking reasonable steps to dispose of the whole of his interest in those premises, for a period of 26 weeks from the date on which he first took such steps, or such longer period as is reasonable in the circumstances to enable him to dispose of those premises.
8
All personal possessions.
9
The assets of any business owned in whole or in part by the claimant and for the purposes of which he is engaged as a self-employed earner or, if he has ceased to be engaged, for such period as may be reasonable in the circumstances to allow for disposal of those assets.
10
The assets of any business owned in whole or in part by the claimant if—
a
he is not engaged as a self-employed earner in that business by reason of some disease or bodily or mental disablement; but
b
he intends to become engaged (or, as the case may be, re-engaged) as a self-employed earner in that business as soon as he recovers or is able to become engaged, or re-engaged, in that business,
for a period of 26 weeks from the date on which the claim for housing benefit is made or, if it is unreasonable to expect him to become engaged or re-engaged in that business within that period, for such longer period as is reasonable in the circumstances to enable him to become so engaged or re-engaged.
11
The surrender value of any policy of life insurance.
12
The value of any funeral plan contract; and for this purpose, “funeral plan contract” means a contract under which—
a
the claimant makes one or more payments to another person (“the provider”);
b
the provider undertakes to provide, or secure the provision of, a funeral in the United Kingdom for the claimant on his death; and
c
the sole purpose of the plan is to provide or secure the provision of a funeral for the claimant on his death.
13
Where an ex-gratia payment has been made by the Secretary of State on or after 1st February 2001 in consequence of the imprisonment or internment of—
a
the claimant;
b
the claimant's partner;
c
the claimant's deceased spouse or deceased civil partner; or
d
the claimant's partner's deceased spouse or deceased civil partner,
by the Japanese during the Second World War, an amount equal to that payment.
14
1
Subject to sub-paragraph (2), the amount of any trust payment made to a claimant or a claimant's partner who is—
a
a diagnosed person;
b
a diagnosed person's partner or was a diagnosed person's partner at the time of the diagnosed person's death;
c
a parent of a diagnosed person, a person acting in place of the diagnosed person's parents or a person who was so acting at the date of the diagnosed person's death.
2
Where a trust payment is made to—
a
a person referred to in sub-paragraph (1)(a) or (b), that sub-paragraph shall apply for the period beginning on the date on which the trust payment is made and ending on the date on which that person dies;
b
a person referred to in sub-paragraph (1)(c), that sub-paragraph shall apply for the period beginning on the date on which the trust payment is made and ending two years after that date.
3
Subject to sub-paragraph (4), the amount of any payment by a person to whom a trust payment has been made or of any payment out of the estate of a person to whom a trust payment has been made, which is made to a claimant or a claimant's partner who is—
a
the diagnosed person;
b
a diagnosed person's partner or was a diagnosed person's partner at the date of the diagnosed person's death; or
c
a parent of a diagnosed person, a person acting in place of the diagnosed person's parents or a person who was so acting at the date of the diagnosed person's death.
4
Where a payment such as referred to in sub-paragraph (3) is made to—
a
a person referred to in sub-paragraph (3)(a) or (b), that sub-paragraph shall apply for the period beginning on the date on which the payment is made and ending on the date on which that person dies;
b
a person referred to in sub-paragraph (3)(c), that sub-paragraph shall apply for the period beginning on the date on which the payment is made and ending two years after that date.
5
In this paragraph, a reference to a person—
a
being the diagnosed person's partner;
b
acting in place of the diagnosed person's parents,
at the date of the diagnosed person's death shall include a person who would have been such a person or a person who would have been so acting, but for the diagnosed person residing in a care home or an independent hospital.
6
In this paragraph—
“diagnosed person” means a person who has been diagnosed as suffering from, or who, after his death, has been diagnosed as having suffered from, variant Creutzfeldt-Jakob disease;
“relevant trust” means a trust established out of funds provided by the Secretary of State in respect of persons who suffered, or who are suffering, from variant Creutzfeldt-Jakob disease for the benefit of persons eligible for payments in accordance with its provisions;
“trust payment” means a payment under a relevant trust.
15
The amount of any payment, other than a F16war pension, to compensate for the fact that the claimant, the claimant's partner, the claimant's deceased spouse or civil partner or the claimant's partner's deceased spouse or civil partner—
a
was a slave labourer or a forced labourer;
b
had suffered property loss or had suffered personal injury; or
c
was a parent of a child who had died,
during the Second World War.
16
1
Any payment made under F21or by—
a
the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) (No. 2) Trust, the Fund, the Eileen TrustF22, MFET Limited, the Skipton FundF25, the Caxton FoundationF45, the Scottish Infected Blood Support SchemeF50, an approved blood schemeF48, the London Emergencies Trust, the We Love Manchester Emergency Fund, F58the National Emergencies Trust or the London Bombings Relief Charitable Fund (collectively referred to in this paragraph as “the Trusts”); or
b
the Independent Living F14Fund (2006).
F591A
Any Grenfell Tower payment F78, child abuse payment, Windrush payment or any payment made by the Child Migrants Trust (registered charity number 1171479) under the scheme for former British child migrants.
2
Any payment by or on behalf of a person who is suffering or who suffered from haemophilia or who is or was a qualifying person, which derives from a payment made under F21or by any of the TrustsF60, or from a Grenfell Tower paymentF79, a child abuse payment or a Windrush payment, and which is made to or for the benefit of that person's partner or former partner from whom he is not, or where that person has died was not, estranged or divorced or with whom he has formed a civil partnership that has not been dissolved or, where that person has died, had not been dissolved at the time of that person's death.
3
Any payment by or on behalf of the partner or former partner of a person who is suffering or who suffered from haemophilia or who is or was a qualifying person provided that the partner or former partner and that person are not, or if either of them has died were not, estranged or divorced or, where the partner or former partner and that person have formed a civil partnership, the civil partnership has not been dissolved or, if either of them has died, had not been dissolved at the time of the death, which derives from a payment made under F21or by any of the TrustsF61, or from a Grenfell Tower paymentF79, a child abuse payment or a Windrush payment, and which is made to or for the benefit of the person who is suffering from haemophilia or who is a qualifying person.
4
Any payment by a person who is suffering from haemophilia or who is a qualifying person, which derives from a payment under F21or by any of the Trusts, F62or from a Grenfell Tower paymentF79, a child abuse payment or a Windrush payment, where—
a
that person has no partner or former partner from whom he is not estranged or divorced or with whom he has formed a civil partnership that has not been dissolved nor any child who is or had been a member of that person's household; and
b
the payment is made either—
i
to that person's parent or step-parent; or
ii
where that person at the date of the payment is a child or a student who has not completed his full-time education and has no parent or step-parent, to any person standing in the place of his parent,
but only for a period from the date of the payment until the end of two years from that person's death.
5
Any payment out of the estate of a person who suffered from haemophilia or who was a qualifying person, which derives from a payment under F21or by any of the Trusts, F63or from a Grenfell Tower paymentF79, a child abuse payment or a Windrush payment, where—
a
that person at the date of his death (“the relevant date”) had no partner or former partner from whom he was not estranged or divorced or with whom he had formed a civil partnership that had not been dissolved, nor any child who was or had been a member of his household; and
b
the payment is made either—
i
to that person's parent or step-parent; or
ii
where that person at the relevant date was a child or a student who had not completed his full-time education and had no parent or step-parent, to any person standing in place of his parent,
but only for a period of two years from the relevant date.
6
In the case of a person to whom or for whose benefit a payment referred to in this paragraph is made, any capital resource which derives from any payment of income or capital made under or deriving from any of the Trusts F64or from a Grenfell Tower paymentF79, a child abuse payment or a Windrush payment.
17
1
An amount equal to the amount of any payment made in consequence of any personal injury to the claimant or, if the claimant has a partner, to the partner.
2
Where the whole or part of the payment is administered—
F8a
by the High Court or the County Court under Rule 21.11(1) of the Civil Procedure Rules 1998, or the Court of Protection, or on behalf of a person where the payment can only be disposed of by order or direction of any such court;
b
in accordance with an order under Rule 36.14 of the Ordinary Cause Rules 1993 F1 or under Rule 128 of those Rules; or
c
in accordance with the terms of a trust established for the benefit of the claimant or his partner,
the whole of the amount so administered.
18
Any amount specified in paragraphs 19, 20F17, 21 or 26B for a period of one year beginning with the date of receipt.
19
Amounts paid under a policy of insurance in connection with the loss of or damage to the property occupied by the claimant as his home and to his personal possessions.
20
So much of any amounts paid to the claimant or deposited in the claimant's name for the sole purpose of—
a
purchasing premises which the claimant intends to occupy as his home; or
b
effecting essential repairs or alterations to the premises occupied or intended to be occupied by the claimant as his home.
21
1
Subject to paragraph 22 any amount paid—
a
by way of arrears of benefit;
b
by way of compensation for the late payment of benefit;
c
in lieu of the payment of benefit;
d
to rectify, or compensate for, an official error, as defined for the purposes of paragraph 22, being an amount to which that paragraph does not apply;
e
by a local authority (including, in relation to England, a county council), or by the F18Welsh Ministers, to or on behalf of the claimant or his partner relating to a service which is provided to develop or sustain the capacity of the claimant or his partner to live independently in his accommodation.
F28f
by way of local welfare provision including arrears and payments in lieu of local welfare F66provision;
F65g
to rectify, or to compensate for, an error made by an officer of the Department for Work and Pensions which was not caused or materially contributed to by any person outside the Department and which prevented or delayed an assessment of the claimant’s entitlement to contributory employment and support allowance, being an amount to which paragraph 22(1A) does not apply.
2
In sub-paragraph (1), “benefit” means—
a
attendance allowance under section 64 of the Act;
b
disability living allowance;
F31ba
personal independence payment;
F32bb
armed forces independence payment;
c
income support;
d
income-based jobseeker's allowance;
e
state pension credit;
f
housing benefit;
g
council tax benefit;
h
child tax credit;
i
an increase of a disablement pension under section 104 of the Act (increase where constant attendance is needed), and any further increase of such a pension under section 105 of the Act (increase for exceptionally severe disablement);
j
any amount included on account of the claimant's exceptionally severe disablement or need for constant attendance in a war disablement pension or a war widow's or widower's pension.
F7k
any discretionary housing payment paid pursuant to regulation 2(1) of the Discretionary Financial Assistance Regulations 2001; F11...
l
working tax creditF29...
o
universal credit.
F47p
bereavement support payment under section 30 of the Pensions Act 2014.
F54q
early years assistance given in accordance with section 32 of the Social Security (Scotland) Act 2018.
F55r
funeral expense assistance given in accordance with section 34 of the Social Security (Scotland) Act 2018.
F56s
maternity allowance under section 35 of the Act (state maternity allowance for employed or self-employed earner).
F57t
any Scottish child payment assistance given in accordance with section 79 of the Social Security (Scotland) Act 2018.
F74u
any assistance given in accordance with the Carer’s Assistance (Young Carer Grants) (Scotland) Regulations 2019.
F75v
short-term assistance given in accordance with regulations made under section 36 of the Social Security (Scotland) Act 2018;
F76w
winter heating assistance given in accordance with regulations under section 30 of the Social Security (Scotland) Act 2018;
F77x
disability assistance given in accordance with regulations made under section 31 of the Social Security (Scotland) Act 2018.
F673
In sub-paragraph (1) “contributory employment and support allowance” means an allowance under Part 1 of the Welfare Reform Act as amended by the provisions of Schedule 3, and Part 1 of Schedule 14, to the 2012 Act that remove references to an income-related allowance.
22
1
Subject to sub-paragraph (3), any payment of £5,000 or more which has been made to rectify, or to compensate for, an official error F53or an error on a point of law relating to a relevant benefit and has been received by the claimant in full on or after the day on which he became entitled to benefit under these Regulations or the Housing Benefit Regulations 2006.
F681A
Subject to sub-paragraph (3), any payment of £5,000 or more received by the claimant in full on or after the day on which the claimant became entitled to benefit under these Regulations or the Housing Benefit Regulations 2006 which has been made to rectify, or to compensate for, an error made by an officer of the Department for Work and Pensions which was not caused or materially contributed to by any person outside the Department and which prevented or delayed an assessment of the claimant’s entitlement to contributory employment and support allowance.
1B
In sub-paragraph (1) “contributory employment and support allowance” has the meaning in paragraph 21(3) of this Schedule.
2
Subject to sub-paragraph (3), the total amount of any payments disregarded under—
a
paragraph 7(2) of Schedule 10 to the Income Support Regulations F2;
b
paragraph 12(2) of Schedule 8 to the Jobseeker's Allowance Regulations F3;
d
paragraph 20A of Schedule 5 to the State Pension Credit Regulations 2002F4,
F13e
paragraph 11(2) of Schedule 9 to the Employment and Support Allowance Regulations,
F35f
paragraph 18 of Schedule 10 to the Universal Credit Regulations 2013,
F70g
regulations 10A to 10C of the Universal Credit (Transitional Provisions) Regulations 2014,
where the award in respect of which the payments last fell to be disregarded under those Regulations either terminated immediately before the relevant date or is still in existence at that date.
3
Any disregard which applies under sub-paragraph F71(1), (1A) or (2) shall have effect until the award comes to an end.
4
In this paragraph—
“the award”, except in sub-paragraph (2), means—
- a
the award of benefit under these Regulations during which the relevant sum or, where it is paid in more than one instalment, the first instalment of that sum is received; and
- b
where that award is followed by one or more further awards which, or each of which, begins immediately after the previous award ends, such further awards until the end of the last such award, provided that, for such further awards, the claimant—
- i
is the person who received the relevant sum;
- ii
is the partner of that person; or
- iii
was the partner of that person at the date of his death;
- i
- a
“official error”—
- a
where the error relates to housing benefit F26..., has the meaning given by regulation 1(2) of the Decisions and Appeals RegulationsF5;
- b
where the error relates to any other relevant benefit, has the meaning given by regulation 1(3) of the Social Security and Child Support (Decisions and Appeals) Regulations 1999F6;
- a
“the relevant date” means—
- a
in the case of an existing award of benefit under these Regulations or the Housing Benefit Regulations 2006, 6th October 2003; and
- b
in any other case, the date on which the claim for benefit under these Regulations or the Housing Benefit Regulations 2006 was made;
- a
“relevant benefit” means any benefit specified in paragraph 21(2); and
“the relevant sum” means the payment referred to in sub-paragraph (1) or the total amount referred to in sub-paragraph (2).
F8022A
Any payment of a widowed parent’s allowance made pursuant to section 39A of the Act (widowed parent’s allowance)—
a
to the survivor of a cohabiting partnership (within the meaning in section 39A(7) of the Act) who is entitled to a widowed parent’s allowance for a period before the Bereavement Benefits (Remedial) Order 2023 comes into force, and
b
in respect of any period of time during the period ending with the day before the survivor makes the claim for a widowed parent’s allowance,
but only for a period of 52 weeks from the date of receipt of the payment.
23
Where a capital asset is held in a currency other than Sterling, any banking charge or commission payable in converting that capital into Sterling.
24
The value of the right to receive income from an occupational pension scheme or a personal pension scheme.
F925
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
The dwelling occupied as the home; but only one dwelling shall be disregarded under this paragraph.
F2026A
Where a person elects to be entitled to a lump sum under Schedule 5 or 5A to the Contributions and Benefits Act or under Schedule 1 to the Graduated Retirement Benefit Regulations, or is treated as having made such an election, and a payment has been made pursuant to that election, an amount equal to—
a
except where sub-paragraph (b) applies, the amount of any payment or payments made on account of that lump sum;
b
the amount of that lump sum,
but only for so long as that person does not change that election in favour of an increase of pension or benefit.
F4326AA
Where a person chooses a lump sum under section 8(2) of the Pensions Act 2014 or in accordance with Regulations made under section 10 of that Act which include provision corresponding or similar to section 8(2) of that Act, or fails to make a choice, and a lump sum payment has been made, an amount equal to—
a
except where sub-paragraph (b) applies, the amount of any payment or payments made on account of that lump sum;
b
the amount of that lump sum,
but only for so long as that person does not alter that choice in favour of an increase of pension.
F1526B
Any arrears of supplementary pension which is disregarded under paragraph 4 of Schedule 5 (amounts to be disregarded in the calculation of income other than earnings) or of any amount which is disregarded under paragraph 5 or 6 of that Schedule.
F1926C
Any payment made under Part 8A of the Act (entitlement to health in pregnancy grant).
F2426D
Any payments madeF36...—
a
F37by virtue of regulations made under section 57 of the Health and Social Care Act 2001 (direct payments);
F39b
as a direct payment as defined in section 4(2) of the Social Care (Self-directed Support) (Scotland) Act 2013; F41...
c
F52e
by virtue of regulations made under section 50 or 52 of the Social Services and Well-being (Wales) Act 2014 (direct payments).
F2726E
Any payment in consequence of a reduction of council tax under section 13, 13A or 80 of the Local Government Finance Act 1992 (reduction of liability for council tax), but only for a period of 52 weeks from the date of the receipt of the payment.
F4026F
Any payments to a claimant made under section 49 of the Children and Families Act 2014 (personal budgets and direct payments)
F4426G
1
Any payment made by a local authority in accordance with section 26A of the Children (Scotland) Act 1995.
2
Subject to sub-paragraph (3), any payment or part of a payment made by a local authority in accordance with section 26A of the Children (Scotland) Act 1995 to a person (“A”) which A passes on to the claimant.
3
Sub-paragraph (2) only applies where A—
a
was formerly in the care of the claimant;
b
is aged 16 or over; and
c
continues to live with the claimant.
F4626H
F811
A payment of bereavement support payment in respect of the rate set out in regulation 3(2) or (5) of the Bereavement Support Payment Regulations 2017 (rate of bereavement support payment), but only for a period of 52 weeks from the date of receipt of the payment.
F822
Where bereavement support payment under section 30 of the Pensions Act 2014 is paid to the survivor of a cohabiting partnership (within the meaning in section 30(6B) of the Pensions Act 2014) in respect of a death occurring before the day the Bereavement Benefits (Remedial) Order 2023 comes into force, any amount of that payment which is—
a
in respect of the rate set out in regulation 3(1) of the Bereavement Support Payment Regulations 2017, and
b
paid as a lump sum for more than one monthly recurrence of the day of the month on which their cohabiting partner died,
but only for a period of 52 weeks from the date of receipt of the payment.
F4926I
Any payment made under or by a trust, established for the purpose of giving relief and assistance to disabled persons whose disabilities were caused by the fact that during their mother’s pregnancy she had taken a preparation containing the drug known as Thalidomide, and which is approved by the Secretary of State.
F7226J
Any sum paid by means of assistance in accordance with the Carer’s Assistance (Young Carer Grants) (Scotland) Regulations 2019.
F7326K
Any sum paid by means of winter heating assistance in accordance with regulations under section 30 of the Social Security (Scotland) Act 2018.