118.—(1) Except where the circumstances prescribed in paragraph (3) apply to the claimant, where the claimant’s capital calculated in accordance with this Part exceeds £6,000 it is to be treated as equivalent to a weekly income of £1 for each complete £250 in excess of £6,000 but not exceeding £16,000.
(2) Where the circumstances prescribed in paragraph (3) apply to the claimant and that claimant’s capital calculated in accordance with this Part exceeds £10,000, it is to be treated as equivalent to a weekly income of £1 for each complete £250 in excess of £10,000 but not exceeding £16,000.
(3) For the purposes of paragraph (2) the prescribed circumstances are that the claimant lives permanently in—
(a)a care home or an independent hospital;
(b)an Abbeyfield Home; or
(c)accommodation provided under section 3 of, and Part 2 of the Schedule to, the Polish Resettlement Act 1947(1) (provision of accommodation in camps) where the claimant requires personal care by reason of old age, disablement, past or present dependence on alcohol or drugs, past or present mental disorder or a terminal illness and the care is provided in the home.
(4) For the purposes of paragraph (3), a claimant is to be treated as living permanently in such home, hospital or accommodation where the claimant is absent—
(a)from a home, hospital or accommodation referred to in sub-paragraph (a) or (b) of paragraph (3)—
(i)in the case of a claimant over pensionable age, for a period not exceeding 52 weeks; and
(ii)in any other case, for a period not exceeding 13 weeks;
(b)from accommodation referred to in sub-paragraph (c) of paragraph (3), where the claimant, with the agreement of the manager of the accommodation, intends to return to the accommodation in due course.
(5) Notwithstanding paragraphs (1) and (2), where any part of the excess is not a complete £250 that part is to be treated as equivalent to a weekly income of £1.
(6) For the purposes of paragraphs (1) and (2), capital includes any income treated as capital under regulations 112 and 126 (income treated as capital and liable relative payments treated as capital).
1947 c. 19. Section 3 of and Part 2 of the Schedule to, the 1947 Act have been amended by S.I. 1968/1699, the Supplementary Benefit Act 1966 (c. 20), section 39(1) and paragraph 3 of Schedule 6, Supplementary Benefits Act 1976 (c. 71), section 35(1) and (2) and paragraph 4 of Schedule 6 and paragraph 1 of Schedule 7, the Social Security Act 1980 (c. 30), sections 20 and 21(4) and paragraph 1 of Schedule 4 and Part 2 of Schedule 5 and the Criminal Justice Act 2003 (c. 44), section 304 and paragraph 154 of Schedule 32.