The Social Security (Miscellaneous Amendments) (No. 5) Regulations 2007

Amendment of the Council Tax Benefit Regulations 2006

13.—(1) The Council Tax Benefit Regulations 2006(1) are amended as follows.

(2) In regulation 2(1) (interpretation) at the appropriate place insert the following definition—

““starting rate”, where it relates to the rate of tax, has the same meaning as in the Income Tax Act 2007 (see section 989 of that Act);”.

(3) In regulation 25(1) (earnings of employed earners), after sub-paragraph (g) insert—

“(gg) any payment or remuneration made under section 28, 34, 64, 68 or 70 of the Employment Rights Act 1996 (right to guarantee payments, remuneration on suspension on medical or maternity grounds, complaints to employment tribunals);”.

(4) In regulation 26(6)(a) (calculation of earnings of employed earners) for “lower rate”, wherever it occurs, substitute “starting rate”.

(5) In regulation 29(1) deduction of tax and contributions of self-employed earners) for “lower rate”, wherever it occurs, substitute “starting rate”.

(6) In regulation 32 (notional income)—

(a) at the end of paragraph (10)(b)(ii) add—

“; or

(c)

to a claimant who is participating in a work placement approved by the Secretary of State (or a person providing services to the Secretary of State) before the placement starts.

(10A) In paragraph (10)(c) “work placement” means practical work experience which is not undertaken in expectation of payment.”;

(b) in paragraph (12)(a) for “lower rate”, wherever it occurs, substitute “starting rate”.

(7) For regulation 37 (calculation of capital in the United Kingdom) substitute—

Calculation of capital in the United Kingdom

37.   Capital which a claimant possesses in the United Kingdom shall be calculated at its current market or surrender value less—

(a) where there would be expenses attributable to the sale, 10 per cent; and

(b) the amount of any encumbrance secured on it.”.

(8) In regulation 68 (who may claim)—

(a) for “receiver”, wherever it occurs, substitute “deputy”;

(b) in sub-paragraph (2)(c) for “the Powers of Attorney Act 1971 or the Enduring Powers of Attorney Act 1985” substitute “the Powers of Attorney Act 1971, the Enduring Powers of Attorney Act 1985 or the Mental Capacity Act 2005”.

(9) In Schedule 3 (sums to be disregarded in the calculation of earnings)(2)—

(a) in paragraph 1—

(i) in sub-paragraph (a) after “earnings” insert “paid or due to be paid”;

(ii) for sub-paragraphs (b) and (c) substitute—

“(b) where before the first day of entitlement to council tax benefit the employment has been terminated otherwise than because of retirement, any earnings paid or due to be paid in respect of that employment except—

(i) any payment of the nature described in regulation 25(1)(e), or

(ii) any award, sum or payment of the nature described in—

(aa) regulation 25(1)(g) or (h), or

(bb) section 34 or 70 of the Employment Rights Act 1996 (guarantee payments and suspension from work: complaints to employment tribunals)(3),

including any payment made following the settlement of a complaint to an employment tribunal or of court proceedings;

(c) where before the first day of entitlement to council tax benefit—

(i) the employment has not been terminated, but

(ii) the claimant is not engaged in remunerative work,

any earnings paid or due to be paid in respect of that employment except any payment or remuneration of the nature described in regulation 25(1)(e), (i) or (j).”;

(b) in paragraph 2—

(i) for “date of claim” substitute “first day of entitlement to council tax benefit”;

(ii) after “earnings” where it first occurs insert “paid or due to be paid”;

(iii) for “earnings to which regulation 25(1)(e) applies” substitute “any payment of the nature described in regulation 25(1)(e)”;

(iv) for “earnings to which regulation 25(1)(e), (i) and (j) applies” substitute “any payment or remuneration of the nature described in regulation 25(1)(e), (i) or (j)”.

(10) In paragraph 22 of Schedule 4 (sums to be disregarded in the calculation of income other than earnings) for sub-paragraphs (a) and (b) substitute—

“(a) where the aggregate of any payments made in respect of any one week in respect of the occupation of the dwelling by that person or a member of his family, or by that person and a member of his family, is less than £20, the whole of that amount; or

(b) where the aggregate of any such payments is £20 or more per week, £20.”.

(1)

S.I. 2006/215.

(2)

Relevant amending instruments are S.I. 1996/1516, 1996/1517.

(3)

1996 c.18.