(This note is not part of the Regulations)
These Regulations, which come into force on 14th November 2010, amend the Tax Credits (Definition and Calculation of Income) Regulations 2002 (S.I. 2002/2006) (“the Income Regulations”) and the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (S.I. 2002/2005) (“the Entitlement Regulations”) following the introduction of additional paternity leave and additional statutory paternity pay.
Regulations made under Part 8 of the Employment Rights Act 1996 (c. 18) as amended by the Work and Families Act 2006 (c.18) made provision for the introduction of additional paternity leave in Great Britain. Corresponding provision was made in Northern Ireland by regulations made under Part 9 of the Employment Rights (Northern Ireland) Order 1996 (S.I. 1996/1919 (N.I. 16)) as amended by the Work and Families (Northern Ireland) Order 2006 (S.I. 2006/1947 (N.I. 16)).
Regulations made under Part 12ZA of the Social Security Contributions and Benefits Act 1992 (c. 4) as amended by the Work and Families Act 2006 made provision for the payment of additional statutory paternity pay in Great Britain. Corresponding provision was made in respect of Northern Ireland by regulations made under Part 12ZA of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) as amended by the Work and Families (Northern Ireland) Order 2006).
As a consequence of the introduction of additional paternity leave and additional statutory paternity pay, from the date of commencement of the relevant part of the Work and Families Act 2006 and the Work and Families (Northern Ireland) Order 2006, “paternity leave” is to be re-named “ordinary paternity leave” and “statutory paternity pay” is to be re-named “ordinary statutory paternity pay”.
Regulations 2 and 3 amend regulation 5 of the Entitlement Regulations, which specifies the circumstances in which a person will be treated as being engaged in qualifying remunerative work during a period. Sub-paragraphs (d) and (e) of paragraph (1) are amended so that they respectively refer to ordinary statutory paternity pay and to ordinary paternity leave periods under sections 80AA or 80BB of the Employment Rights Act 1996 or Articles 112AA or 112BB of the Employment Rights Northern Ireland Order 1996. Sub-paragraph (da) is inserted so that a person is treated as being engaged in qualifying remunerative work during a period in which that person is paid additional statutory paternity pay. Sub-paragraph (ea) and paragraph 3A are inserted so that where a person is entitled to additional paternity leave but is not paid additional statutory paternity pay he will be treated as being engaged in qualifying remunerative work during the period in which he would have been paid additional statutory paternity pay had the conditions of entitlement been met.
Regulations 4 to 6 amend regulations 4 and 7 of the Income Regulations.
The definition of employment income in regulation 4 of the Income Regulations is amended to include the amount (if any) by which a payment of additional statutory paternity pay exceeds £100 per week.
In regulation 7 of the Income Regulations, Table 3 is amended to add additional statutory paternity pay to the list of payments disregarded in the calculation of social security income.
A full Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sector is foreseen. An Impact Assessment in respect of the introduction of additional statutory paternity pay has been prepared and is available from the Employment Relations Directorate, Department for Business, Innovation and Skills, 1 Victoria Street, London SW1H OET or at www.bis.gov.uk. Copies have also been placed in the libraries of both Houses of Parliament.