18.—(1) In paragraph 5(1) of Schedule 2(1) (sums to be disregarded in the determination of earnings) for “invalid care allowance” (wherever it occurs) substitute “carer’s allowance”.
(2) For paragraph 12 of that Schedule substitute —
“12. Where a relevant person —
(a)is in receipt of income support, income-based jobseeker’s allowance or guarantee credit; or
(b)is a member of a married or unmarried couple (within the meaning of the State Pension Credit Act 2002) and the other member of that couple is in receipt of guarantee credit,
that person’s earnings.”(2).
(3) For paragraph 18(3) of that Schedule substitute —
“18.—(1) In a case where the relevant person is a person who satisfies at least one of the conditions specified in sub-paragraph (2), and that person’s net earnings equal or exceed the total of the amounts set out in sub-paragraph (3), the amount of that person’s earnings that falls to be disregarded under paragraphs 3 to 10 of this Schedule shall be increased by a sum equal to the 30 hour element of working tax credit referred to in regulation 20(1)(c) of the Working Tax Credit Regulations.
(2) The conditions are that —
(a)the relevant person, or if that person is a member of a couple, either the relevant person or that person’s partner, is a person to whom regulation 20(1)(c) of the Working Tax Credit Regulations applies;
(b)the relevant person is, or if that person is a member of a couple, at least one member of that couple is aged at least 25 and is engaged in remunerative work for on average not less than 30 hours per week;
(c)the relevant person is a member of a couple and —
(i)at least one member of that couple, is engaged in remunerative work for on average not less than 16 hours per week;
(ii)the aggregate number of hours for which the couple are engaged in remunerative work is at least 30 hours per week; and
(iii)that person’s applicable amounts includes a family premium under paragraph 3 of Schedule 1;
(d)the relevant person is a lone parent who is engaged in remunerative work for on average not less than 30 hours per week;
(e)the relevant person is, or if that person is a member of a couple, at least one member of that couple is or both members are, engaged in remunerative work for on average not less than 30 hours per week and —
(i)the relevant person’s applicable amount includes a higher pensioner premium or a disability premium under paragraph 10 or 11 of Schedule 1 respectively; and
(ii)where that person is a member of a couple, at least one member of that couple satisfies the qualifying conditions for the higher pensioner premium or disability premium referred to in paragraph (i) above and is engaged in remunerative work for on average not less than 16 hours per week.
(3) The following are the amounts referred to in sub-paragraph (1) —
(a)the amount calculated as disregardable from the relevant person’s earnings under paragraphs 3 to 10 of this Schedule;
(b)the amount of child care charges calculated as deductible under regulation 18(1) of these Regulations; and
(c)the amount of the 30 hour element referred to in regulation 20(1)(c) of the Working Tax Credit Regulations.
(4) The provisions of regulation 4 of the Working Tax Credit Regulations shall apply in determining whether or not a person works for on average not less than 30 hours per week, but as if the reference to 16 hours in paragraph (1) of that regulation were a reference to 30 hours.
(5) In this paragraph “the Working Tax Credit Regulations” means the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002.”(4).
Schedule 2 was amended by S.I. 1998/808 and S.I. 1999/3468.
Paragraph 18 was inserted by S.I. 1999/3468.
S.I. 2002/2005, as amended by S.I. 2003/701.