SCHEDULE 4Sums disregarded from applicant’s earnings

6.

(1)

Where—

(a)

the applicant (or if the applicant is a member of a couple, at least one member of that couple) is a person to whom sub-paragraph (5) applies;

(b)

the Secretary of State is satisfied that that person is undertaking exempt work as defined in sub-paragraph (6); and

(c)

paragraph 13 of Schedule 1 does not apply,

the amount specified in sub-paragraph (7) (“the specified amount”).

(2)

Where this paragraph applies, paragraphs 1 to 5 and 7 do not apply; but in any case where the applicant is a lone parent, and the specified amount would be less than the amount specified in paragraph 2, then paragraph 2 applies instead of this paragraph.

(3)

Notwithstanding paragraph 11 of Schedule 1 (calculation of income and capital of members applicant’s family and of a polygamous marriage), if sub-paragraph (1) applies to one member of a couple (“A”) it shall not apply to the other member of that couple (“B”) except to the extent provided in sub-paragraph (4).

(4)

Where A’s earnings are less than the specified amount, there must also be disregarded so much of B’s earnings as would not when aggregated with A’s earnings exceed the specified amount; but the amount of B’s earnings which may be disregarded under this sub-paragraph is limited to a maximum of £20 unless the Secretary of State is satisfied that B is also undertaking exempt work.

(5)

This sub-paragraph applies to a person who is—

(a)

in receipt of a contributory employment and support allowance;

(b)

in receipt of incapacity benefit;

(c)

in receipt of severe disablement allowance;

(d)

being credited with earnings on the grounds of incapacity for work or limited capability for work under regulation 8B of the Social Security (Credits) Regulations 1975208.

(6)

“Exempt work” means work of the kind described in—

(a)

regulation 45(2), (3) or (4) of the Employment and Support Allowance Regulations 2008 F1or regulation 39(1)(a), (b) or (c) of the Employment and Support Allowance Regulations 2013; or (as the case may be)

(b)

regulation 17(2), (3) or (4) of the Social Security (Incapacity for Work) (General) Regulations 1995,

and, in determining for the purposes of this paragraph whether an applicant or a member of a couple is undertaking any type of exempt work, it is immaterial whether that person or their partner is also undertaking other work.

(7)

The specified amount is the amount of money from time to time mentioned in any provision referred to in sub-paragraph (6) by virtue of which the work referred to in sub-paragraph (1) is exempt (or, where more than one such provision is relevant and those provisions mention different amounts of money, the highest of those amounts).