The Social Security Benefit (Computation of Earnings) (Amendment) Regulations (Northern Ireland) 2007

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Social Security Benefits (Computation of Earnings) Regulations (Northern Ireland) 1996 (S.I. 1996 No. 520) (“the principal Regulations”), and correspond to provisions contained in Regulations made by the Treasury with the concurrence of the Secretary of State for Work and Pensions in relation to Great Britain.

Regulation 1 provides for the citation, commencement and interpretation of these Regulations. All but one of the regulations will come into force on 1st October 2007: regulation 2(4)(a) will come into force on 7th April 2008 in line with the annual benefits uprating timetable.

Regulation 2(2) amends regulation 12 of the principal Regulations by removing the provision which disregards as earnings of a self-employed earner certain payments received in connection with the provision of accommodation by the claimant. These payments will continue to be disregarded from the calculation of a claimant’s net profit under regulation 13(2)(a).

Regulation 2(3) amends regulation 13 of the principal Regulations by inserting a new sub-paragraph (6)(g). This provides that there will be no deduction of expenses from a self-employed earner’s net profit in respect of any expenses incurred in connection with the provision of accommodation by the claimant to another person in the dwelling that the claimant occupies as his home.

Regulation 2(4) amends Schedule 1 to the principal Regulations by providing a disregard in the calculation of earnings of £20 per week in respect of payments received from a sub-tenancy arrangement. Where the payments are less than £20 per week, the disregard will be the whole of the amount of the payments. Previously the Schedule made provision for a basic disregard with a further disregard to be applied where the payments included an amount for heating. Regulation 2(4) also amends Schedule 1 by inserting a new paragraph 11A. This provides that where a claimant’s employment as an employed earner ends before the claimant becomes entitled to certain benefits, payments made in respect of that employment (with some exceptions) will be disregarded in the calculation of the claimant’s earnings.

A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.