The Jobseeker’s Allowance Regulations 1996

• (ii) after that act or omission failed to complete a course of training and no certificate has been issued to him under subsection (4) of section 17 with respect to that failure

and at the time he did the act or omission falling within sub-paragraph (i) he was a new jobseeker;

• (d) he has–

• (i) failed to complete a course of training and no certificate has been issued to him under subsection (4) of section 17 with respect to that failure or given up a place on a training scheme or employment programme ... without a good reason or given up a place on a training scheme or employment programme ... for which he was regarded as having a good reason in accordance with regulation 67(1) and

• (ii) after that failure he has failed to complete a course of training and no certificate has been issued to him under subsection (4) of section 17 with respect to that failure and on the day before the day he first attended the course referred to in sub-paragraph (i) he was a new jobseeker; or

• (e) he has failed to complete a course of training and no certificate has been issued to him under subsection (4) of section 17 with respect to that failure and on the day before he first attended the course he was not a new jobseeker; or

• (f) he has failed to complete a course of training and no certificate has been issued to him under subsection (4) of section 17 with respect to that failure and he lost his place on the course through his misconduct.

• (2) The period shall start with the date on which the first severe hardship direction is made under section 16 after the act or acts referred to in paragraph (a), (b), (c), (d), (e) or (f) of paragraph (1) have taken place and shall end fourteen days later.

• (3) In the case of a young person who is pregnant or seriously ill who does an act falling within sub-paragraphs (a)—(f) of paragraph (1), the reduction shall be if he is a single person or a lone parent of 20% of the amount applicable in his case by way of a personal allowance determined in accordance with paragraph 1(1) or 1(2) of Schedule 1 (as the case may be) or, if he is a member of a couple, of 20% of the amount which would have been applicable in his case if he had been a single person determined in accordance with paragraph 1(1) of Schedule 1.

• (4) For the purposes of this regulation, “new jobseeker" means a young person who has not since first leaving full-time education been employed or self-employed for 16 or more hours per week or completed a course of training or failed to complete a course of training and no certificate has been issued to him to show a good reason for that failure under subsection (4) of section 17 or given up a place on a training scheme or employment programme ... without a good reason or done an act or omission falling within section 19A(2)(g)....

• (5) A reduction under paragraph (1) or (3) shall, if it is not a multiple of 5p, be rounded to the nearest such multiple or, if it is a multiple of 2.5p but not of 5p, to the next lower multiple of 5p.

Availability for employment

64

• (1) A young person is required to be available for employment in accordance with section 6 and Chapter II of Part II except as provided in paragraphs (2) and (3).

• (2) A young person whose jobseeker’s allowance has not been reduced in accordance with regulation 63 or in accordance with regulation 68 because he has done an act or omission falling within section 19A(2)(d), (e), (f) or (g) or section 19(2)(c) or (d) or in accordance with section 19(2)(a) or (b) read with Part V and who does not fall within regulation 61(1)(a) or (f) may restrict his availability for employment to employment where suitable training is provided by the employer.

• (3) A young person who places restrictions on the nature of employment for which he is available as permitted by paragraph (2) does not have to show that he has reasonable prospects of securing employment notwithstanding those restrictions.

Active seeking

65

• (1) Subject to the following paragraphs, Section 7 and Chapter III of Part II shall have effect in relation to a young person as if “employment" included “training".

• (2) Subject to paragraphs (4) and (5), in order to have the best prospects of securing employment or training a young person can be expected to have to take more than one step on one occasion in any week unless taking one step on one occasion is all that it is reasonable for that person to do in that week, and unless it is reasonable for him to take only one step on one occasion, he can be expected to have to take at least one step to seek training and one step to seek employment in that week.

• (3) Subject to paragraph (4), steps which it is reasonable for a young person to be expected to have to take include, in addition to those set out in regulation 18(2)—

• (a) seeking training and

• (b) seeking full-time education.

• (4) Paragraphs (1), (2) and (3) do not apply to a young person falling within regulation 61(1)(a) or (f).

• (5) Paragraphs (1) and (2) do not apply to a young person ... who has had his jobseeker’s allowance reduced in accordance with regulation 63 or regulation 68 because he has done an act or omission falling within section 19A(2)(a), (d), (e), (f) or (g) or section 19(2)(c) or (d) or in accordance with section 19(2)(a) or (b) read with Part V but paragraph (3) does apply to such a young person.

• (6) “Training" in section 7 and in this regulation means suitable training.

The jobseeker’s agreement

66

• (1) In a jobseeker’s agreement with a young person, other than one falling within regulation 61(1)(a) or (f), the following information is required in addition to that prescribed in chapter V of Part II: a broad description of the circumstances in which the amount of the person’s benefit may be reduced in accordance with section 17 and regulation 63, or section 19(2)(a), (b), (c) or (d) or section 19A(2)(a), (c), (d), (e), (f) or (g) and regulation 68.

• (2) A young person is to be treated as having entered into a jobseeker’s agreement and as having satisfied the condition mentioned in section 1(2)(b) as long as the circumstances set out in regulation 62(2) or 62(3) apply.

Sanctions

67

• (1) Without prejudice to any other circumstances in which a person may be regarded as having a good reason for any act or omission for the purposes of section 19A(2)(d), (e) or (f), and in addition to the circumstances listed in regulation 73, a young person is to be regarded as having a good reason for any act or omission for the purposes of section 19A(2)(d), (e) or (f) where

• (a) this is the first occasion on which he has done an act or omission falling within section 19A(2)(d), (e) or (f) and he has not while claiming a jobseeker's allowance failed to pursue an opportunity of obtaining training without a good reason or rejected an offer of training without a good reason or failed to complete a course of training and no certificate has been issued to him under subsection (4) of section 17 with respect to that training; and

• (b) at the time he did the act or omission falling within section 19A(2)(d) or (e) or failed to attend a training scheme or employment programme he was ... a new jobseeker or, in the case where he has given up a place on a training scheme or employment programme, at the time he first attended the scheme or programme he was ... a new jobseeker.

• (2) Without prejudice to any other circumstances in which a person may be regarded as having a good reason for any act or omission for the purposes of section 19(2)(c) or (d), a young person is to be regarded as having a good reason for any act or omission for the purposes of section 19(2)(c) or (d) where the employer did not offer suitable training unless he falls within regulation 61(1)(a) or (f) or his jobseeker’s allowance has been reduced in accordance with regulation 63 or in accordance with regulation 68 because he has done an act or omission falling within section 19A(2)(d), (e), (f) or (g) or section 19(2)(a), (b), (c) or (d) read with Part V.

• (3) For the purposes of this regulation, “new jobseeker" means a young person who has not since first leaving full-time education been employed or self-employed for 16 or more hours per week or completed a course of training or failed to complete a course of training and no certificate has been issued to him to show a good reason for that failure under subsection (4) of section 17 or given up a place on a training scheme or employment programme without a good reason or done an act or omission falling within section 19A(2)(g).

Reduced amount of allowance

68

• (1) Subject to paragraphs (2) and (4), the amount of an income-based jobseeker’s allowance which would otherwise be payable to a young person shall be reduced, if he is a single person or a lone parent, by a sum equal to 40% of the amount applicable in his case by way of a personal allowance determined in accordance with paragraph 1(1) or 1(2) of Schedule 1 (as the case may be) or, if he is a member of a couple (including a joint-claim couple), a sum equal to 40% of the amount which would have been applicable in his case if he had been a single person determined in accordance with paragraph 1(1) of Schedule 1 for a period of two weeks from the beginning of the first week after the Secretary of State decision where the young person ... has done any act or omission falling within section 19(2)(c) or (d) or section 19A(2)(a), (c), (d), (e), (f) or (g), unless the young person reaches the age of 18 before that two week period expires, in which case the allowance shall be payable at the full rate applicable in his case from the date he reaches the age of 18.

• (2) Subject to paragraph (4), in a case where the young person or any member of his family is pregnant or seriously ill the amount of an income-based jobseeker’s allowance which would otherwise be payable to the young person shall be reduced by, if he is a single person or a lone parent, a sum equal to 20% of the amount applicable in his case by way of a personal allowance determined in accordance with paragraph 1(1) or 1(2) of Schedule 1 (as the case may be) or, if he is a member of a couple (including a joint-claim couple), a sum equal to 20% of the amount which would have been applicable in his case if he had been a single person determined in accordance with paragraph 1(1) of Schedule 1 for a period of two weeks from the beginning of the first week after the Secretary of State decision where the young person ... has done any act or omission falling within section 19(2)(c) or (d) or section 19A(2)(a), (c), (d), (e), (f) or (g), unless the young person reaches the age of 18 before that two week period expires, in which case the allowance shall be payable at the full rate applicable in his case from the date he reaches the age of 18.

• (3) A reduction under paragraph (1) or (2) shall, if it is not a multiple of 5p, be rounded to the nearest such multiple or if it is a multiple of 2.5p but not of 5p, to the next lower multiple of 5p.

• (4) If a young person’s claim for an income-based jobseeker’s allowance is terminated before the expiry of the period determined in accordance with paragraphs (1) and (2), and he makes a fresh claim for the allowance, it shall be payable to him at the reduced rate determined in accordance with paragraph (1) or (2) for the balance of the time remaining of that two weeks, unless the young person reaches the age of 18 before that two week period expires, in which case the allowance shall be payable at the full rate applicable in his case from the date he reaches the age of 18.

• (5) An income-based jobseeker’s allowance shall be payable to a young person at the full rate applicable in his case after the expiry of the two week period referred to in paragraphs (1) and (2).

PART V — SANCTIONS

Prescribed period for purposes of section 19(2)

69

• (1) Subject to paragraphs (3) and (4), a reduction under section 19 (higher-level sanctions) in the circumstances described in the first column of the following table is to have effect for the period set out in the second column.

Circumstances in which reduction period applies	Reduction period
Where there has been no previous sanctionable failure by the claimant that falls within paragraph (2)	13 weeks
Where there have been one or more previous sanctionable failures by the claimant that fall within paragraph (2) and the date of the most recent previous sanctionable failure is not within 52 weeks beginning with the date of the current sanctionable failure	13 weeks
Where there have been one or more previous sanctionable failures by the claimant that fall within paragraph (2) and the date of the most recent previous sanctionable failure is within 52 weeks, but not within 2 weeks, beginning with the date of the current sanctionable failure and the period of reduction applicable to the most recent previous sanctionable failure is or, but for paragraph (4), would have been—
(a) 13 weeks	26 weeks
(b) 26 weeks	26 weeks
(c) ...	. . .
Where there have been one or more previous sanctionable failures by the claimant that fall within paragraph (2) and the date of the most recent previous sanctionable failure is within 2 weeks beginning with the date of the current sanctionable failure and the period of reduction applicable to the most recent previous sanctionable failure is or, but for paragraph (4), would have been—
(a) 13 weeks	13 weeks
(b) 26 weeks	26 weeks
(c) ...	....

• (2) A previous sanctionable failure referred to in paragraph (1) falls within this paragraph if—

• (a) the failure resulted in a decision to reduce the claimant’s award in accordance with section 19 and;

• (b) in the case of a joint-claim couple, the failure was by the same claimant; ...

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) Where a claimant’s award has been reduced in relation to a sanctionable failure which is specified in section 19(2)(a), (b) or (d) and which occurred before the date of claim for a jobseeker’s allowance, any such failure must not be counted for the purpose of determining the period of a reduction for a subsequent sanctionable failure under section 19.

• (4) Where a sanctionable failure which is specified in section 19(2)(a), (b) or (d) occurs on or before the date on which a claim for a jobseeker’s allowance is made—

• (a) except where sub-paragraph (b) applies, the reduction relating to that failure is to have effect for the period set out in paragraph (1) that applies in the claimant’s case (the “applicable sanction period”) minus the period beginning with the day after the date of the sanctionable failure and ending with the day before the date of claim;

• (b) if—

• (i) the failure was in relation to employment which was due to last for a limited period,

• (ii) the limited period ends on or before the end of the applicable sanction period, and

• (iii) the date of claim is on or before the last day of the limited period,

the reduction relating to that failure is to have effect for the period beginning with the day after the date of the sanctionable failure and ending with the last day of the limited period minus the period beginning with the day after the date of the sanctionable failure and ending with the day before the date of claim.

• (5) In paragraph (4)(b), “limited period” means a specific term which is fixed, or which can be ascertained, before it begins, by reference to some relevant circumstance.

• (6) The period of a reduction under section 19 begins—

• (a) on the first day of the benefit week in which the sanctionable failure occurred where, on the date of the determination to reduce the award, the claimant has not been paid a jobseeker’s allowance since the sanctionable failure occurred; or

• (b) in any other case, on the first day of the benefit week after the end of the benefit week in respect of which the claimant was last paid a jobseeker’s allowance.

Sanctions of discretionary length

70

• (1) Subject to paragraph (2), the amount of a reduction under section 19 or 19A or regulation 69B is—

• (a) 100% of the allowance payable to the claimant; or

• (b) in the case of a joint-claim couple—

• (i) 100% of the allowance payable to the couple, where the reduction relates to a sanctionable failure by each member of the couple, or

• (ii) an amount calculated in accordance with paragraph (3), where the reduction relates to a sanctionable failure by only one member of the couple.

• (2) In a case where the following circumstances apply —

• (a) a claimant’s award is already reduced in accordance with section 19 or 19A or regulation 69B; or

• (b) in the case of a joint-claim couple, an award of a joint-claim jobseeker’s allowance is already reduced in accordance with section 19 or 19A or regulation 69B as a result of a sanctionable failure by one or each member of the couple and the current sanctionable failure is by the same claimant,

no reduction is to be made for any days when those circumstances apply.

• (3) The amount referred to in paragraph (1)(b)(ii) is such amount which, after its deduction from the full amount of the award of a joint-claim jobseeker’s allowance, leaves the following amount—

• (a) in any case in which the member of the couple, who is not the member whose sanctionable failure led to the reduction, satisfies the conditions set out in section 2 of the Act (contribution based conditions), a rate equal to the amount calculated in accordance with section 4(1) (amount payable by way of a jobseeker’s allowance);

• (b) in any case where the couple are a couple in hardship for the purposes of Part IXA, a rate equal to the amount calculated in accordance with regulation 146G (applicable amount in hardship cases for joint-claim couples);

• (c) in any other case, a rate calculated in accordance with section 4(3A) (amount payable by way of a joint-claim jobseeker’s allowance) save that the applicable amount shall be the amount determined by reference to paragraph 1(1) of Schedule 1 which would have been the applicable amount had the member of the couple who is not subject to sanctions been a single claimant.

Voluntary Redundancy

71

• (1) A claimant is to be treated as not having left his employment voluntarily–

• (a) where he has been dismissed by his employer by reason of redundancy after volunteering or agreeing to be so dismissed, ...

• (b) where he has left his employment on a date agreed with his employer without being dismissed, in pursuance of an agreement relating to voluntary redundancy or

• (c) where he has been laid off or kept on short-time to the extent specified in section 148 of the Employment Rights Act 1996, and has complied with the requirements of that section.

• (2) In paragraph (1) “redundancy" means one of the facts set out in paragraphs (a) and (b) of section 139(1) of the Employment Rights Act 1996.

Good Cause for the purposes of section 19(5)(a) and (6)(c) and (d)

72

A person is not to be regarded as having a good reason for any act or omission for the purposes of section 19(2)(c) and (d) and section 19A(2)(c) if, and to the extent that, the reason for that act or omission relates to the time it took, or would normally take, for the person to travel from his home to the place of the employment, or a place mentioned in the jobseeker’s direction, and back to his home where that time was or is normally less than one hour and thirty minutes either way, by a route and means appropriate to his circumstances and to the employment, or to the carrying out of the jobseeker’s direction, unless, in view of the health of the person or any caring responsibilities of his, that time was or is unreasonable.

Good Cause for the purposes of section 19(5)(b)

73

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Person of prescribed description for the purpose of section 20(3)

74

• (1) Subject to paragraph (2), a person shall be of a prescribed description for the purposes of section 20(3) ... (exemption from non-payment of jobseeker’s allowance) and shall not fall within section 19(2)(b) or (d) ... if he has neither worked in employed earner’s employment, nor has been a self-employed earner, nor been a full-time student nor been in relevant education, during the period of 13 weeks preceding the day of the commencement of the employment.

• (2) For the purposes of paragraph (1), a person shall not be regarded as having–

• (a) worked in employed earner’s employment; or

• (b) been a self-employed earner; or

• (c) been a full-time student or been in relevant education;

by reason only of any engagement in an activity referred to in paragraph (3) or by his attendance for a period of up to 14 days at a work camp.

• (3) The activities referred to in this paragraph are–

• (a) the manning or launching of a lifeboat; or

• (b) the performance of duty as a part-time member of a fire brigade.

• (4) A trial period in section 20(3) ... means a period of 8 weeks beginning with the commencement of the fifth week of the employment in question and ending at the end of the twelfth week of that employment and for the purposes of this definition in determining the time at which the fifth week of the employment in question commences or at which the twelfth week of that employment ends, any week in which a person has not worked in the employment for at least 16 hours shall be disregarded.

Interpretation

75

• (1) For the purposes of section 19A and of this Part:

• (a) “an employment programme” means a programme or scheme which is designed to assist a claimant to prepare for or move into work;

• (b) “a training scheme” means a scheme or course which is designed to assist a claimant to gain the skills, knowledge or experience that will make it more likely, in the opinion of the Secretary of State, that the claimant will obtain work or be able to do so.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) In section 19A and in this Part, “week” means any period of 7 consecutive days.

• (4) In section 19 and in this Part, “employment” means employed earner’s employment other than such employment in which a person is employed whilst participating in an employment programme falling within paragraph (1)(a) and “employed earner” shall be construed accordingly; and for the purposes of paragraph (4) of regulation 70C includes self-employment where the claimant’s income as calculated under Part VIII exceeds his applicable amount as calculated under sections 4(1), 12 and 13 of the Act.

• (5) In this Part,

• current sanctionable failure” means a failure which is sanctionable under section 19 (higher-level sanctions), 19A (other sanctions) or 19B (claimants ceasing to be available for employment etc) in relation to which the Secretary of State has not yet determined whether the amount of an award is to be reduced in accordance with section 19 or 19A or regulation 69B;

• ...

• “sanctionable failure” means a failure which is sanctionable under section 19 (higher-level sanctions), 19A (other sanctions) or 19B (claimants ceasing to be available for employment etc).

PART VI — MEMBERSHIP OF THE FAMILY

Persons of a prescribed description

76

• (1) Subject to paragraph (2), a person of a prescribed description for the purposes of the definition of “family" in section 35(1) of the Act is a person who falls within the definition of qualifying young person in section 142 of the Benefits Act (child and qualifying young person), and in these Regulations, except in Part IV, such a person is referred to as a “young person".

• (2) Paragraph (1) shall not apply to a person who is–

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) entitled to a jobseeker’s allowance or would, but for section 3(1)(d) of the Act (provision against dual entitlement) be so entitled; or

• (c) entitled to income support or would, but for section 134(2) of the Benefits Act (exclusion from benefit) be so entitled; or

• (d) a person to whom section 6 of the Children (Leaving Care) Act 2000 (exclusion from benefits) applies or

• (e) entitled to an income-related employment and support allowance or would, but for paragraph 6(1)(d) of Schedule 1 to the Welfare Reform Act (conditions of entitlement to income-related employment and support allowance), be so entitled.; or

• (f) entitled to universal credit

• (3) A person of a prescribed description for the purposes of the definition of “family” in section 35(1) of the Act includes a child or young person in respect of whom section 145A of the Benefits Act applies for the purposes of entitlement to child benefit but only for the period prescribed under section 145A(1) of that Act.

Circumstances in which a person is to be treated as responsible or not responsible for another

77

• (1) Subject to the following provisions of this regulation, a person is to be treated for the purposes of the Act as responsible for a child or young person for whom he is receiving child benefit and this includes a child or young person to whom paragraph (3) of regulation 76 applies.

• (2) In a case where a child (“the first child") is in receipt of child benefit in respect of another child (“the second child"), the person treated as responsible for the first child in accordance with the provisions of this regulation shall also be treated as responsible for the second child.

• (3) In the case of a child or young person in respect of whom no person is receiving child benefit, the person who shall be treated as responsible for that child or young person shall be—

• (a) except where sub-paragraph (b) applies, the person with whom the child or young person usually lives; or

• (b) where only one claim for child benefit has been made in respect of the child or young person, the person who made that claim.

• (4) Where regulation 78(7) (circumstances in which a person is to be treated as being or not being a member of the household) applies in respect of a child or young person, that child or young person shall be treated as the responsibility of the claimant for that part of the week for which he is under that regulation treated as being a member of the claimant’s household.

• (5) Except where paragraph (4) applies, a child or young person shall be treated as the responsibility of only one person in any benefit week and any person other than the one treated as responsible for the child or young person under this regulation shall be treated as not so responsible.

Circumstances in which a person is to be treated as being or not being a member of the household

78

• (1) Subject to paragraphs (2) to (5), the claimant and any partner and, where the claimant or his partner is treated as responsible under regulation 77 (circumstances in which a person is to be treated as responsible or not responsible for another) for a child or young person, that child or young person and any child of that child or young person shall be treated for the purposes of the Act as members of the same household notwithstanding that any of them is temporarily living away from the other members of his family.

• (1A) Subject to paragraphs (2) and (3), the members of a joint-claim couple shall be treated for the purposes of the Act as members of the same household notwithstanding that they are temporarily living away from each other.

• (2) Paragraphs (1) and (1A) shall not apply to a person who is living away from the other members of his family where—

• (a) that person does not intend to resume living with the other members of his family; or

• (b) his absence from the other members of his family is likely to exceed 52 weeks, unless there are exceptional circumstances (for example the person is in hospital or otherwise has no control over the length of his absence), and the absence is unlikely to be substantially more than 52 weeks.

• (3) Paragraphs (1) and (1A) shall not apply in respect of any member of a couple or of a polygamous marriage where—

• (a) one, both or all of them are patients detained in a hospital provided under section 4 of the National Health Service Act 1977 (high security psychiatric services) or section 102 of the National Health Service (Scotland) Act 1978 (state hospitals); or

• (b) one, both or all of them are—

• (i) detained in custody pending trial or sentence upon conviction or under a sentence imposed by a court; or

• (ii) on temporary release in accordance with the provisions of the Prison Act 1952 or rules made under section 39(6) of the Prisons (Scotland) Act 1989;

• (c) a claimant is abroad and does not satisfy the conditions of regulation 50 (persons absent from Great Britain); or

• (d) one of them is permanently residing in a care home, an Abbeyfield Home or an independent hospital.

• (4) A child or young person shall not be treated as a member of the claimant’s household where he is—

• (a) placed with the claimant or his partner by a local authority under section 22C(2) of the Children Act 1989 or by a voluntary organisation under section 59(1)(a) of that Act; or

• (aa) placed with the claimant or his partner by a local authority under section 81(2) of the Social Services and Well-being (Wales) Act 2014; or

• (b) placed with the claimant or his partner prior to adoption; or

• (c) in accordance with a relevant Scottish enactment, boarded out with the claimant or his partner, whether or not with a view to adoption; or

• (d) placed for adoption with the claimant or his partner pursuant to a decision under the Adoption Agencies Regulations 1983 or the Adoption Agencies (Scotland) Regulations 2009.

• (5) Subject to paragraphs (6) and (7), paragraph (1) shall not apply to a child or young person who is not living with the claimant and who—

• (a) in a case which does not fall within sub-paragraph (b), has been continuously absent from Great Britain for a period of more than four weeks commencing—

• (i) where he went abroad before the date of the claim for a jobseeker’s allowance, with that date;

• (ii) in any other case, on the day which immediately follows the day on which he went abroad; or

• (b) where regulation 50(5) or paragraph 11 or 13 of Schedule 5 (temporary absence abroad for the treatment of a child or young person) applies, has been continuously absent from Great Britain for a period of more than 8 weeks, that period of 8 weeks commencing—

• (i) where he went abroad before the date of the claim for a jobseeker’s allowance, on the date of that claim;

• (ii) in any other case, on the day which immediately follows the day on which he went abroad; or

• (c) has been an in-patient or in accommodation ... for a continuous period of more than 12 weeks commencing—

• (i) where he became an in-patient or, as the case may be, entered that accommodation before the date of the claim for a jobseeker’s allowance, with that date; or

• (ii) in any other case, with the date on which he became an in-patient or entered that accommodation, and, in either case, has not been in regular contact with either the claimant or any member of the claimant’s household; or

• (d) is being looked after by a local authority under a relevant enactment; or

• (e) has been placed with a person other than the claimant prior to adoption; or

• (f) is in the care of a local authority under a relevant Scottish enactment; or

• (g) has been boarded out under a relevant Scottish enactment with a person other than the claimant prior to adoption; or

• (h) has been placed for adoption pursuant to a decision under the Adoption Agencies Regulations 1983 or the Adoption Agencies (Scotland) Regulations 2009; or

• (i) is detained in custody pending trial or sentence upon conviction or under a sentence imposed by a court.

• (6) In the case of a person who was entitled to income support or an income-related employment and support allowance immediately before his entitlement to a jobseeker’s allowance commenced, sub-paragraphs (a), (b) and (c) of paragraph (5) shall each have effect as if head (i) was omitted.

• (7) A child or young person to whom any of the circumstances mentioned in sub-paragraphs (d), (f) or (i) of paragraph (5) applies shall be treated as being a member of the claimant’s household only for that part of any benefit week where that child or young person lives with the claimant.

• (8) Where a child or young person for the purposes of attending the educational establishment at which he is receiving relevant education is living with the claimant or his partner and neither one is treated as responsible for that child or young person that child or young person shall be treated as being a member of the household of the person treated as responsible for him and shall not be treated as a member of the claimant’s household.

• (9) In this regulation–

• (za) “accommodation” means accommodation provided by a local authority in a home owned or managed by that local authority—

• (i) under sections 21 to 24 of the National Assistance Act 1948 (provision of accommodation); or

• (ia) under section 18 or 19 of the Care Act 2014 (duty and power to meet needs for care and support); or

• (ii) in Scotland, under section 13B or 59 of the Social Work (Scotland) Act 1968 (provision of residential or other establishment); or

• (iii) under section 25 of the Mental Health (Care and Treatment) (Scotland) Act 2003 (care and support services etc.); or

• (iv) in Wales, under section 35 or 36 of the Social Services and Well-being (Wales) Act 2014 (duty and power to meet care and support needs of an adult);

where the accommodation is provided for a person whose stay in that accommodation has become other than temporary;

• (a) “relevant enactment" means the Army Act 1955 , the Social Work (Scotland) Act 1968 , the Matrimonial Causes Act 1973 , the Adoption and Children (Scotland) Act 2007, the Family Law Act 1986 , the Children Act 1989 and the Social Services and Well-being (Wales) Act 2014;

• (b) “relevant Scottish enactment" means the Army Act 1955, the Air Force Act 1955 , the Naval Discipline Act 1957 , the Adoption Act 1958 , the Matrimonial Proceedings Children Act 1958 , the Children Act 1958 , the Social Work (Scotland) Act 1968, the Family Law Reform Act 1969 , the Children and Young Persons Act 1969 , the Matrimonial Causes Act 1973, the Guardianship Act 1973 , the Children Act 1975 , the Domestic Proceedings and Magistrates’ Courts Act 1978 , the Adoption and Children (Scotland) Act 2007, the Child Care Act 1980 , and the Foster Children Act 1980 ;

• (c) “voluntary organisation" has the meaning assigned to it in the Children Act 1989 or, in Scotland, the Social Work (Scotland) Act 1968.

PART VII — AMOUNTS

Weekly amounts of contribution-based jobseeker’s allowance

79

• (1) In the case of a contribution-based jobseeker’s allowance, the age-related amount applicable to a claimant for the purposes of section 4(1)(a) shall be—

• (a) in the case of a person who has not attained the age of 25, £75.65 per week.

• (c) in the case of a person who has attained the age of 25, £95.55 per week.

• (2) Where the amount of any contribution-based jobseeker’s allowance would, but for this paragraph, include a fraction of one penny, that fraction shall be treated as one penny.

Deductions in respect of earnings

80

• (1) The deduction in respect of earnings which falls to be made in accordance with section 4(1)(b) from the amount which, apart from this regulation, would be payable by way of a contribution-based jobseeker’s allowance for any benefit week is an amount equal to the weekly amount of the claimant’s earnings calculated in accordance with Part VIII (income and capital).

• (2) For the avoidance of doubt, in calculating the amount of earnings for the purposes of this regulation, only the claimant’s earnings shall be taken into account.

Payments by way of Pensions

81

• (1) The deduction in respect of pension payments, PPF payments or FAS payments from the amount which apart from this regulation would be payable to a claimant by way of a contribution-based jobseeker’s allowance for any week shall be a sum equal to the amount by which that payment exceeds or, as the case may be, the aggregate of those payments exceed £50 per benefit week.

• (1A) Where pension payments, PPF payments or FAS payments first begin to be made to a person for a period starting other than on the first day of a benefit week, the deduction referred to in paragraph (1) shall have effect from the beginning of that benefit week.

• (1B) Where pension payments, PPF payments or FAS payments are already in payment to a person and a change in the rate or payment takes effect in a week other than at the beginning of the benefit week, the deduction referred to in paragraph (1) shall have effect from the first day of that benefit week.

• (2) In determining the amount of any pension payments, PPF payments or FAS payments for the purposes of paragraph (1), there shall be disregarded—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) any payments from a personal pension scheme, an occupational pension scheme or a public service pension scheme which are payable to him and which arose in accordance with the terms of such a scheme on the death of a person who was a member of the scheme in question; and

• (d) any PPF payments or FAS payments which are payable to him and which arose on the death of a person who had an entitlement to such payments.

• (3) Subject to the provisions of paragraph (2), where a pension payment, PPF payment or FAS payment, or an aggregate of such payments, as the case may be, is paid to a person for a period other than a week, such payments shall be treated as being made to that person by way of weekly pension payments, weekly PPF payments or weekly FAS payments and the weekly amount shall be determined—

• (a) where payment is made for a year, by dividing the total by 52;

• (b) where payment is made for three months, by dividing the total by 13;

• (c) where payment is made for a month, by multiplying the total by 12 and dividing the result by 52;

• (d) where payment is made for two or more months, otherwise than for a year or for three months, by dividing the total by the number of months, multiplying the result by 12 and dividing the result of that multiplication by 52; or

• (e) in any other case, by dividing the amount of the payment by the number of days in the period for which it is made and multiplying the result by 7.

Income-based jobseeker’s allowance

82

• (1) Regulations 83 to 85 and 87 apply in the case of an income-based jobseeker’s allowance but not a joint-claim jobseeker’s allowance.

• (2) Regulations 86A to 86C only apply in the case of a joint-claim jobseeker’s allowance.

Applicable amounts

83

Except in the case of a claimant to whom regulation 84, 85 ... ... (applicable amounts in other cases ...) applies, a claimant’s weekly applicable amount shall be the aggregate of such of the following amounts as may apply in his case—

• (a) an amount in respect of himself or if he is a member of a couple, an amount in respect of both of them, determined in accordance with sub-paragraph (1), (2) or (3), as the case may be, of paragraph 1 of Schedule 1;

• (b) an amount determined in accordance with paragraph 2 of Schedule 1 in respect of any child or young person who is a member of his family, excluding a child or young person whose capital, if calculated in accordance with Part VIII in like manner as for the claimant would exceed £3,000, but including a child whose capital falls to be treated as income in accordance with regulation 106 (1) (modification in respect of children and young persons);

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (d) where he is a member of a family of which at least one member is a child or young person, an amount determined in accordance with Part II of Schedule 1 (family premium);

• (e) the amount of any premiums which may be applicable to him, determined in accordance with Parts III and IV of Schedule 1 (premiums); and

• (f) any amounts determined in accordance with Schedule 2 (housing costs) which may be applicable to him in respect of housing costs as prescribed in that Schedule.

Polygamous Marriages

84

• (1) Except in the case of a claimant to whom regulation 83, or 85 ... (applicable amounts in special cases ...) ... or paragraph (2) applies, where a claimant is a member of a polygamous marriage his weekly applicable amount shall be the aggregate of such of the following amounts as may apply in his case—

• (a) the highest amount applicable to him and one of his partners determined in accordance with sub-paragraph (3) of paragraph 1 of Schedule 1 as if he and that partner were a couple;

• (b) an amount equal to the difference between the amounts specified in sub-paragraphs (3)(e) and (1)(e) of paragraph 1 of Schedule 1 in respect of each of his other partners;

• (c) an amount determined in accordance with paragraph 2 of Schedule 1 (applicable amounts) in respect of any child or young person for whom he or a partner of his is responsible and who is a member of the same household except a child or young person whose capital, if calculated in accordance with Part VIII in like manner as for the claimant, would exceed £3,000, but including a child whose capital falls to be treated as income in accordance with regulation 106 (1) (modification in respect of children and young persons);

• (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (e) if he or another partner of the polygamous marriage is responsible for a child or young person who is a member of the same household, the amount specified in Part II of Schedule 1 (family premium);

• (f) the amount of any premiums which may be applicable to him determined in accordance with Parts III and IV of Schedule 1 (premiums); and

• (g) any amounts determined in accordance with Schedule 2 (housing costs) which may be applicable to him in respect of housing costs as prescribed in that Schedule.

• (2) In the case of a partner who is aged less than 18 the amount which applies in respect of that partner shall be Nil unless that partner—

• (a) is treated as responsible for a child; or

• (b) is a person who, had he not been a member of a polygamous marriage, would have qualified for a jobseeker’s allowance by virtue of section 3(1)(f)(ii) or section 3(1)(f)(iii) and the regulations made thereunder (jobseeker’s allowance for persons aged 16 or 17).

Special cases

85

• (1) In the case of a person to whom any paragraph in column (1) of Schedule 5 applies (applicable amounts in special cases) the amount included in the claimant’s weekly applicable amount in respect of him shall be the amount prescribed in the corresponding paragraph in column (2) of that Schedule but excluding an amount for a child or young person whose capital, if calculated in accordance with Part VIII in like manner as for the claimant, would exceed £3,000, but including an amount for a child or young person whose capital falls to be treated as income in accordance with regulation 106 (1) (modification in respect of children and young persons).

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) In this regulation and Schedule 5–

• “partner of a person subject to immigration control" means a person–who is not subject to immigration control within the meaning of section 115(9) of the Immigration and Asylum Act; orto whom section 115 of that Act does not apply by virtue of regulation 2 of the Social Security (Immigration and Asylum) Consequential Amendments Regulations 2000; andwho is a member of a couple and the member's partner is subject to immigration control within the meaning of section 115(9) of that Act and section 115 of that Act applies to the partner for the purposes of exclusion from entitlement to jobseeker’s allowance;.

“person from abroad” has the meaning given in regulation 85A;

“patient" means a person (other than a prisoner) who is regarded as receiving free in-patient treatment within the meaning of regulation 2(4) and (5) of the Social Security (Hospital In-Patients) Regulations 2005;

“prisoner" means a person who—

• (a) is detained in custody pending trial or sentence upon conviction or under a sentence imposed by a court; or

• (b) is on temporary release in accordance with the provisions of the Prison Act 1952 or the Prisons (Scotland) Act 1989,

other than a person who is detained in hospital under the provisions of the Mental Health Act 1983, or, in Scotland, under the provisions of the Mental Health (Care and Treatment) (Scotland) Act 2003 or the Criminal Procedure (Scotland) Act 1995,

...

• (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Applicable amounts for persons in residential care and nursing homes

86

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transitional supplement to income-based jobseeker’s allowance

87

• (1) In the case of a person who, before 7th October 1996 was entitled to a special transitional addition or transitional addition in accordance with the Income Support (Transitional) Regulations 1987, the amount of any income-based jobseeker’s allowance payable to him shall be increased by an amount equal to those additions, but the increase shall continue to be payable only for so long as the claimant continues to satisfy the requirements imposed in those Regulations for payment of the addition.

• (2) A claimant’s weekly applicable amount shall include an amount (the “protected sum") equal to any protected sum which would have been applicable in his case under regulation 17(1)(g) or 18(1)(h) of, and Schedules 3A and 3B to, the Income Support Regulations had he been entitled to income support and not a jobseeker’s allowance.

• (3) In the case of any person who had he been entitled to income support and not a jobseeker’s allowance, would in any week have had a higher applicable amount, in accordance with regulation 17(2) to (6A) of the Income Support Regulations, than the amount applicable to him in accordance with regulation 82 or, as the case may be, 83 then that amount shall be substituted for the applicable amount determined under that regulation.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) In determining for the purposes of this regulation whether, if the claimant were entitled to income support—

• (a) an amount would be applicable;

• (b) an amount would be payable; or

• (c) if an amount was payable, the rate at which it would be payable,

any requirement that the person be entitled to income support, or to income support for any period of time, shall be treated as if the reference to income support included also a reference to an income-based jobseeker’s allowance.

• (7) For the purposes of applying paragraph (1), regulation 2A of the Income Support (Transitional) Regulations, and for the purposes of paragraph (6), regulation 3A of the Income Support Regulations shall have effect in accordance with the following sub-paragraphs—

• (a) as if in paragraph (1)(a), after the words “permitted period", there was included the words “subject to paragraph 2A"; and

• (b) with the addition after paragraph (1) of the following paragraphs–

(2A) Subject to paragraph (2B) where the claimant or his partner has ceased to be engaged in remunerative work, the permitted period shall be 8 weeks if— (a) a jobseeker’s allowance is not payable to the claimant in the circumstances mentioned in section 19(2)(a) or (b) of the Jobseekers Act 1995 (employment left voluntarily or lost through misconduct); or (b) the claimant or his partner has ceased to be engaged in that work within 4 weeks of beginning it; or (c) at any time during the period of 13 weeks immediately preceding the beginning of that work, the person who has ceased to be engaged in it— (i) was engaged in remunerative work; or (ii) was in relevant education; or (iii) was a student. (2B) Paragraph (2A)(b) or (2A)(c) shall not apply in the case of a person who, by virtue of regulation 74 of the Jobseeker’s Allowance Regulations 1996, is a person to whom section 19(2)(b) of the Jobseekers Act 1995 does not apply. (2C) In this regulation, “remunerative work" means remunerative work for the purposes of the Jobseekers Act 1995.

PART VIII — INCOME AND CAPITAL

Chapter I — General

Calculation of income and capital of members of claimant’s family and of a polygamous marriage

88

• (1) Subject to paragraphs (2) and paragraph (3) and regulations regulation 88ZA (calculation of income and capital of a joint-claim couple) and 106 (modifications in respect of children and young persons), the income and capital of a claimant’s partner and the income of a child or young person which by virtue of section 13(2) is to be treated as the income and capital of the claimant, shall be calculated in accordance with the following provisions of this Part in like manner as for the claimant; and any reference to the “claimant" shall, except where the context otherwise requires, be construed, for the purposes of this Part, as if it were a reference to his partner or that child or young person.

• (2) Regulations 99(2) and 101(2), so far as they relate to paragraphs 1 to 13 and 19 of Schedule 6 (earnings to be disregarded) and regulation 104(1) (capital treated as income) shall not apply to a child or young person.

Subject to the following provisions of this Part, the income paid to, or in respect of, and capital of, a child or young person who is a member of the claimant’s family shall not be treated as the income or capital of the claimant.

• (3) Where at least one member of a couple is aged less than 18 and the applicable amount of the couple falls to be determined under paragraph 1(3)(b), (c), (g) or (h) of Schedule 1 (applicable amounts), the income of the claimant’s partner shall not be treated as the income of the claimant to the extent that—

• (a) in the case of a couple where both members are aged less than 18, the amount specified in paragraph 1(3)(a) of that Schedule exceeds the amount specified in paragraph 1(3)(c) of that Schedule; and

• (b) in the case of a couple where only one member is aged less than 18, the amount specified in paragraph 1(3)(e) of that Schedule exceeds the amount which applies in that case which is specified in paragraph 1(3)(g) or (h) of that Schedule.

• (4) Subject to paragraph (5), where a claimant is married polygamously to two or more members of his household—

• (a) the claimant shall be treated as possessing capital and income belonging to each such member and the income of any child or young person who is one of that member’s family; and

• (b) the income and capital of that member or, as the case may be, the income of that child or young person shall be calculated in accordance with the following provisions of this Part in like manner as for the claimant or, as the case may be, as for any child or young person who is a member of his family.

• (5) Where a member of a polygamous marriage is a partner aged less than 18 and the amount which applies in respect of him under regulation 84(2) (polygamous marriages) is nil, the claimant shall not be treated as possessing the income of that partner to the extent that an amount in respect of him would have been included in the applicable amount if he had fallen within the circumstances set out in regulation 84(2)(a) or (b).

Liable relative payments

89

Regulations 94 to 106 105, 108 to 115 and Chapter IX of this Part shall not apply to any payment which is to be calculated in accordance with Chapter VII thereof (... liable relative payments).

Child support

90

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of income and capital of full-time students

91

The provisions of Chapters II to VI of this Part (income and capital) shall have effect in relation to full-time students and their partners subject to the modifications set out in Chapter IX thereof (full-time students).

Rounding of fractions

92

Where any calculation under this Part results in a fraction of a penny that fraction shall, if it would be to the claimant’s advantage, be treated as a penny, otherwise it shall be disregarded.

Chapter II — Income

Calculation of income

93

• (1) For the purposes of sections 3(1) (the income-based conditions) and 3A(1) (the conditions for claims by joint-claim couples (the income-based conditions) the income of a claimant shall be calculated on a weekly basis—

• (a) by determining in accordance with this Part, other than Chapter VI, the weekly amount of his income; and

• (b) by adding to that amount the weekly income calculated under regulation 116 (calculation of tariff income from capital).

• (2) For the purposes of paragraph (1) “income" includes capital treated as income under regulation 104 and income which a claimant is treated as possessing under regulation 105 (notional income).

Calculation of earnings derived from employed earner’s employment and income other than earnings

94

• (1) Earnings derived from employment as an employed earner and income which does not consist of earnings shall be taken into account over a period determined in accordance with the following paragraphs and at a weekly amount determined in accordance with regulation 97 (calculation of weekly amount of income).

• (2) Subject to the following provisions of this regulation, the period over which a payment is to be taken into account shall be—

• (a) where the payment is monthly, a period equal to the number of weeks from the date on which the payment is treated as paid to the date immediately before the date on which the next monthly payment would have been so treated as paid whether or not the next monthly payment is actually paid;

• (aa) where the payment is in respect of a period which is not monthly, a period equal to the length of the period for which payment is made;

• (b) in any other case, a period equal to such number of weeks as is equal to the number obtained by applying the formula—

$$EJ+D$where—E is the amount of net earnings, or in the case of income which does not consist of earnings, the amount of that income less any amount paid by way of tax on that income which is disregarded under paragraph 1 of Schedule 7 (sums to be disregarded in the calculation of income other than earnings);J is the amount of jobseeker’s allowance which would be payable had the payment not been made;D is an amount equal to the total of the sums which would fall to be disregarded from that payment under Schedule 6 and Schedule 6A (sums to be disregarded in the calculation of earnings) or, as the case may be, any paragraph of Schedule 7 other than paragraph 1 of that Schedule, as is appropriate in the claimant’s case,$

• (2A) The period over which a Career Development Loan, which is paid pursuant to section 2 of the Employment and Training Act 1973, shall be taken into account shall be the period of education and training intended to be supported by that loan.

• (2B) Where grant income as defined in Chapter IX of this Part has been paid to a person who ceases to be a full-time student before the end of the period in respect of which that income is payable and, as a consequence, the whole or part of that income falls to be repaid by that person, that income shall be taken into account over the period beginning on the date on which that income is treated as paid under regulation 96 and ending—

• (a) on the date on which repayment is made in full; or

• (aa) where the grant is paid in instalments, on the day before the next instalment would have been paid had the claimant remained a student; or

• (b) on the last date of the academic term or vacation during which that person ceased to be a full-time student,

whichever shall first occur.

• (2C)

• (a) This paragraph applies where earnings are derived by a claimant as a member of a reserve force prescribed in Part 1 of Schedule 6 to the Contributions Regulations—

• (i) in respect of a period of annual continuous training for a maximum of 15 days in any calendar year; or

• (ii) in respect of training in the claimant’s first year of training as a member of a reserve force for a maximum of 43 days in that year.

• (b) Earnings, whether paid to the claimant alone or together with other earnings derived from the same source, are to be taken into account—

• (i) in the case of a period of training which lasts for the number of days listed in column 1 of the table in sub-paragraph (c), over a period of time which is equal to the number of days set out in the corresponding row in column 2 of that table; or

• (ii) in any other case, over a period which is equal to the duration of the training period.

• (c) This is the table referred to in sub-paragraph (b)(i)—

Column 1Period of training in days	Column 2Period of time over which earnings are to be taken into account in days
8 to 10	7
15 to 17	14
22 to 24	21
29 to 31	28
36 to 38	35
43	42

• (2D) The period referred to in paragraph (2C) over which earnings are to be taken into account shall begin on the date on which they are treated as paid under regulation 96.

• (3) Where earnings not of the same kind are derived from the same source and the periods in respect of which those earnings would, but for this paragraph, fall to be taken into account—

• (a) overlap, wholly or partly, those earnings shall be taken into account over a period equal to the aggregate length of those periods;

• (b) and that period shall begin with the earliest date on which any part of those earnings would otherwise be treated as paid under regulation 96 (date on which income is treated as paid).

• (4) In a case to which paragraph (3) applies, earnings under regulation 98 (earnings of employed earners) shall be taken into account in the following order of priority—

• (a) earnings normally derived from the employment;

• (b) any compensation payment;

• (c) any holiday pay.

• (5) Where earnings to which regulation 98(1)(b) or (c) (earnings of employed earners) applies are paid in respect of part of a day, those earnings shall be taken into account over a period equal to a day.

• (6) Subject to paragraph (7), the period over which a compensation payment is to be taken into account shall be the period beginning on the date on which the payment is treated as paid under regulation 96 (date on which income is treated as paid) and ending—

• (a) subject to sub-paragraph (b), where the person who made the payment represents that it, or part of it, was paid in lieu of notice of termination of employment or on account of the early termination of a contract of employment for a term certain, on the expiry date;

• (b) in a case where the person who made the payment represents that it, or part of it, was paid in lieu of consultation under section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 , on the later of—

• (i) the date on which the consultation period under that section would have ended;

• (ii) in a case where sub-paragraph (a) also applies, the expiry date; or

• (iii) the standard date;

• (c) in any other case, on the standard date.

• (7) The maximum length of time over which a compensation payment may be taken into account under paragraph (6) is 52 weeks from the date on which the payment is treated as paid under regulation 96.

• (8) In this regulation–

• (a) “compensation payment" means any payment to which paragraph (3) of regulation 98 (earnings of employed earners) applies;

• (b) “the expiry date" means in relation to the termination of a person’s employment—

• (i) the date on which any period of notice applicable to the person was due to expire, or would have expired had it not been waived; and for this purpose “period of notice" means the period of notice of termination of employment to which a person is entitled by statute or by contract, whichever is the longer, or, if he is not entitled to such notice, the period of notice which is customary in the employment in question; or

• (ii) subject to paragraph (9), where the person who made the payment represents that the period in respect of which that payment is made is longer than the period of notice referred to in head (i) above, the date on which that longer period is due to expire; or

• (iii) where the person had a contract of employment for a term certain, the date on which it was due to expire;

• (c) “the standard date" means the earlier of–

• (i) the expiry date; and

• (ii) the last day of the period determined by dividing the amount of the compensation payment by the maximum weekly amount which, on the date on which the payment is treated as paid under regulation 96, is specified in section 227(1) of the Employment Rights Act 1996, and treating the result (less any fraction of a whole number) as a number of weeks.

• (9) For the purposes of paragraph (8), if it appears to the Secretary of State in a case to which sub-paragraph (b)(ii) of that paragraph applies that, having regard to the amount of the compensation payment and the level of remuneration normally received by the claimant when he was engaged in the employment in respect of which the compensation payment was made, it is unreasonable to take the payment into account until the date specified in that sub-paragraph, the expiry date shall be the date specified in paragraph (8)(b)(i).

• (10) For the purposes of this regulation the claimant’s earnings and income which does not consist of earnings shall be calculated in accordance with Chapters III and V respectively of this Part.

• (11) For the purposes of the number obtained as referred to in paragraph (2)(b), any fraction is to be treated as a corresponding fraction of a week.

Calculation of earnings of self-employed earners

95

• (1) Except where paragraph (2) applies, where a claimant’s income consists of earnings from employment as a self-employed earner the weekly amount of his earnings shall be determined by reference to his average weekly earnings from that employment—

• (a) over a period of one year; or

• (b) where the claimant has recently become engaged in that employment or there has been a change which is likely to affect the normal pattern of business, over such other period as may, in any particular case, enable the weekly amount of his earnings to be determined more accurately.

• (2) Where the claimant’s earnings consist of any items to which paragraph (2A) applies those earnings shall be taken into account over a period equal to such number of weeks as is equal to the number obtained (and any fraction shall be treated as a corresponding fraction of a week) by dividing the earnings by the amount of jobseeker’s allowance which would be payable had the payment not been made plus an amount equal to the total of the sums which would fall to be disregarded from the payment under Schedule 6 and Schedule 6A (earnings to be disregarded) as is appropriate in the claimant’s case.

• (2A) This paragraph applies to—

• (a) royalties or other sums paid as a consideration for the use of, or the right to use, any copyright, design, patent or trade mark; or

• (b) any payment in respect of any —

• (i) book registered under the Public Lending Right Scheme 1982; or

• (ii) work made under any international public lending right scheme that is analogous to the Public Lending Right Scheme 1982,

where the claimant is the first owner of the copyright, design, patent or trade mark, or an original contributor to the book or work concerned.

• (3) For the purposes of this regulation the claimant’s earnings shall be calculated in accordance with Chapter IV of this Part.

Date on which income is treated as paid

96

• (1) Except where paragraph (2) applies , a payment of income to which regulation 94 (calculation of earnings derived from employed earner’s employment and income other than earnings) applies shall be treated as paid—

• (a) in the case of a payment which is due to be paid before the first benefit week pursuant to the claim, on the date on which it is due to be paid;

• (b) in any other case, on the first day of the benefit week in which it is due to be paid or the first succeeding benefit week in which it is practicable to take it into account.

• (2) Income support, maternity allowance, short-term or long-term incapacity benefit, severe disablement allowance, jobseeker's allowance , employment and support allowance or universal credit shall be treated as paid on any day in respect of which it is payable.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of weekly amount of income

97

• (1) For the purposes of regulation 94 (calculation of earnings derived from employed earner’s employment and income other than earnings)..., subject to paragraphs (2) to (7), where the period in respect of which a payment of income or tax credit is made—

• (a) does not exceed a week, the weekly amount shall be the amount of that payment;

• (b) exceeds a week, the weekly amount shall be determined–

• (i) in a case where that period is a month, by multiplying the amount of the payment by 12 and dividing the product by 52;

• (ii) in a case where that period is three months, by multiplying the amount of the payment by 4 and dividing the product by 52;

• (iii) in a case where that period is a year and the payment is an award of working tax credit, by dividing the payment by the number of days in the year and multiplying the result by 7;

• (iiia) in a case where that period is a year and the payment is income other than an award of working tax credit, by dividing the amount of the payment by 52;

• (iv) in any other case by multiplying the amount of the payment by 7 and dividing the product by the number equal to the number of days in the period in respect of which it is made.

• (2) Where a payment for a period not exceeding a week is treated under regulation 96(1)(a) (date on which income is treated as paid) as paid before the first benefit week and a part is to be taken into account for some days only in that week (“the relevant days"), the amount to be taken into account for the relevant days shall be calculated by multiplying the amount of the payment by the number equal to the number of relevant days and dividing the product by the number of days in the period in respect of which it is made.

• (3) Where a payment is in respect of a period equal to or in excess of a week and a part thereof is to be taken into account for some days only in a benefit week (“the relevant days"), the amount to be taken into account for the relevant days shall, except where paragraph (4) applies, be calculated by multiplying the amount of the payment by the number equal to the number of relevant days and dividing the product by the number of days in the period in respect of which it is made.

• (4) in the case of a payment of–

• (a) maternity allowance, short-term or long-term incapacity benefit or severe disablement allowance, the amount to be taken into account for the relevant days shall be the amount of benefit payable in respect of those days;

• (b) jobseeker’s allowance, income support or employment and support allowance, the amount to be taken into account for the relevant days shall be calculated by multiplying the weekly amount of the benefit by the number of relevant days and dividing the product by seven.

• (5) Except in the case of a payment which it has not been practicable to treat under regulation 96(1)(b) as paid on the first day of the benefit week in which it is due to be paid, where a payment of income from a particular source is or has been paid regularly and that payment falls to be taken into account in the same benefit week as a payment of the same kind and from the same source, the amount of that income to be taken into account in any one benefit week shall not exceed the weekly amount determined under paragraph (1)(a) or (b), as the case may be, of the payment which under regulation 96(1)(b) (date on which income is treated as paid) is treated as paid first.

• (6) Where the amount of the claimant’s income fluctuates and has changed more than once, or a claimant’s regular pattern of work is such that he does not work every week, the foregoing paragraphs may be modified so that the weekly amount of his income is determined by reference to his average weekly income—

• (a) if there is a recognisable cycle of work, over the period of one complete cycle (including, where the cycle involves periods in which the claimant does no work, those periods but disregarding any other absences);

• (b) in any other case, over a period of five weeks or such other period as may, in the particular case, enable the claimant’s average weekly income to be determined more accurately.

• (7) Where income is taken into account under paragraph (2B) of regulation 94 over the period specified in that paragraph, the amount of that income to be taken into account in respect of any week in that period shall be an amount equal to the amount of that income which would have been taken into account under regulation 131 had the person to whom that income was paid not ceased to be a full-time student.

Chapter III — Employed Earners

Earnings of employed earners

98

• (1) Subject to paragraphs (2) and (3), “earnings" means in the case of employment as an employed earner, any remuneration or profit derived from that employment and includes —

• (a) any bonus or commission;

• (b) any compensation payment;

• (c) any holiday pay except any payable more than four weeks after the termination or interruption of employment but this exception shall not apply to a person who is, or would be, prevented from being entitled to a jobseeker’s allowance by section 14 (trade disputes);

• (d) any payment by way of a retainer;

• (e) any payment made by the claimant’s employer in respect of expenses not wholly, exclusively and necessarily incurred in the performance of the duties of the employment, including any payment made by the claimant’s employer in respect of—

• (i) travelling expenses incurred by the claimant between his home and place of employment;

• (ii) expenses incurred by the claimant under arrangements made for the care of a member of his family owing to the claimant’s absence from home;

• (f) any payment or award of compensation made under section 112(4), 113, 117(3)(a), 128, 131 or 132 of the Employment Rights Act 1996 (the remedies: orders and compensation, the orders, enforcement of order and compensation, interim relief);

• (ff) 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);

• (g) any award of compensation made under section 156, ...161 to 166, 189 or 192 of the Trade Union and Labour Relations (Consolidation) Act 1992 (compensation for unfair dismissal or redundancy on grounds of involvement in trade union activities, and protective awards).

• (h) the amount of any payment by way of a non-cash voucher which has been taken into account in the computation of a person’s earnings in accordance with Part 5 of Schedule 3 to the Social Security (Contributions) Regulations 2001.

• (2) “Earnings" shall not include–

• (a) subject to paragraph (2A), any payment in kind;

• (b) any periodic sum paid to a claimant on account of the termination of his employment by reason of redundancy;

• (c) any remuneration paid by or on behalf of an employer to the claimant in respect of a period throughout which the claimant is on maternity leave, paternity leave, adoption leave, shared parental leave , parental bereavement leave , neonatal care leave or is absent from work because he is ill;

• (d) any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment;

• (e) any occupational pension;

• (f) any redundancy payment within the meaning of section 135(1) of the Employment Rights Act 1996.

• (g) any lump sum payment made under the Iron and Steel Re-adaptation Benefits Scheme

• (h) any payment in respect of expenses arising out of the claimant participating as a service user.

• (2A) Paragraph (2)(a) shall not apply in respect of any non-cash voucher referred to in paragraph (1)(h).

• (3) In this regulation “compensation payment" means any payment made in respect of the termination of employment other than—

• (a) any remuneration or emolument (whether in money or in kind) which accrued in the period before the termination;

• (b) any holiday pay;

• (c) any payment specified in paragraphs (1)(f), (ff), or (g) or (2);

• (d) any refund of contributions to which that person was entitled under an occupational pension scheme.

Calculation of net earnings of employed earners

99

• (1) For the purposes of regulation 94 (calculation of earnings of employed earners) the earnings of a claimant derived from employment as an employed earner to be taken into account shall, subject to paragraph (2), be his net earnings.

• (2) Subject to paragraph (3), there shall be disregarded from a claimant’s net earnings, any sum, where applicable, specified in paragraphs 1 to 16 and 19 of Schedule 6.

• (3) For the purposes of calculating the amount to be deducted in respect of earnings under regulation 80 (contribution-based jobseeker’s allowance: deductions in respect of earnings) the disregards specified in paragraphs 5 to 8 and 11 of Schedule 6 shall not apply.

• (4) For the purposes of paragraph (1) net earnings shall be calculated by taking into account the gross earnings of the claimant from that employment less—

• (a) any amount deducted from those earnings by way of–

• (i) income tax;

• (ii) primary Class 1 contributions payable under the Benefits Act; and

• (b) one-half of any sum paid by the claimant in respect of a pay period by way of a contribution towards an occupational or personal pension scheme.

Chapter IV — Self-Employed Earners

Earnings of self-employed earners

100

• (1) Subject to paragraph (2), “earnings", in the case of employment as a self-employed earner, means the gross receipts of the employment and shall include any allowance paid under any scheme referred to in regulation 19(1)(r) (circumstances in which a person is to be treated as actively seeking employment: schemes for assisting persons to become self-employed earners) to the claimant for the purpose of assisting him in carrying on his business.

• (2) “Earnings" shall not include–

• (a) where a claimant is involved in providing board and lodging accommodation for which a charge is payable, any payment by way of such a charge;

• (b) any payment to which paragraph 27, 28 or 28A of Schedule 7 refers (payments in respect of a person accommodated with the claimant under an arrangement made by a local authority or voluntary organisation , payments made to the claimant by a health authority, local authority or voluntary organisation in respect of persons temporarily in the claimant’s care and any payments made to a claimant under section 73(1)(b) of the Children and Young People (Scotland) Act 2014 (kinship care assistance)).

• (ba) any payment made in accordance with section 26A of the Children (Scotland) Act 1995 (duty to provide continuing care)—

• (i) to a claimant; or

• (ii) where paragraph (3) applies, to another person (“A”) which A passes on to the claimant;

• (c) any sports award.

• (3) This paragraph applies only where A—

• (a) was formerly in the claimant’s care;

• (b) is aged 16 or over; and

• (c) continues to live with the claimant.

Calculation of net profit of self-employed earners

101

• (1) For the purposes of regulation 95 (calculation of earnings of self-employed earners), the earnings of a claimant to be taken into account shall be—

• (a) in the case of a self-employed earner who is engaged in employment on his own account, the net profit derived from that employment;

• (b) in the case of a self-employed earner whose employment is carried on in partnership, or is that of a share fisherman within the meaning of regulation 156, his share of the net profit derived from that employment less—

• (i) an amount in respect of income tax and of national insurance contributions payable under the Benefits Act calculated in accordance with regulation 102 (deduction of tax and contributions for self-employed earners); and

• (ii) one half of any premium paid in the period that is relevant under regulation 95 in respect of a personal pension scheme.

• (2) Subject to paragraph (3), there shall be disregarded from a claimant’s net profit any sum, where applicable, specified in paragraphs 1 to 16 of Schedule 6.

• (3) For the purposes of calculating the amount to be deducted in respect of earnings under regulation 80 (contribution-based jobseeker’s allowance: deductions in respect of earnings) the disregards in paragraphs 5 to 8 and 11 of Schedule 6 shall not apply.

• (4) For the purposes of paragraph (1)(a) the net profit of the employment shall, except where paragraph (10) applies, be calculated by taking into account the earnings of the employment over the period determined under regulation 95 (calculation of earnings of self-employed earners) less—

• (a) subject to paragraphs (6) to (8), any expenses wholly and exclusively defrayed in that period for the purposes of that employment;

• (b) an amount in respect of–

• (i) income tax; and

• (ii) national insurance contributions payable under the Benefits Act, calculated in accordance with regulation 102 (deductions of tax and contributions for self-employed earners); and

• (c) one-half of any premium paid in the period that is relevant under regulation 95 in respect of a personal pension scheme.

• (5) For the purposes of paragraph (1)(b), the net profit of the employment shall be calculated by taking into account the earnings of the employment over the period determined under regulation 95 less, subject to paragraphs (6) to (8), any expenses wholly and exclusively defrayed in that period for the purposes of that employment.

• (6) Subject to paragraph (7), no deduction shall be made under paragraph (4)(a) or (5) in respect of—

• (a) any capital expenditure;

• (b) the depreciation of any capital asset;

• (c) any sum employed or intended to be employed in the setting up or expansion of the employment;

• (d) any loss incurred before the beginning of the period determined under regulation 95;

• (e) the repayment of capital on any loan taken out for the purposes of the employment;

• (f) any expenses incurred in providing business entertainment.

• (7) A deduction shall be made under paragraph (4)(a) or (5) in respect of the repayment of capital on any loan used for—

• (a) the replacement in the course of business of equipment or machinery; and

• (b) the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair.

• (8) The Secretary of State shall refuse to make a deduction under paragraph (4)(a) or (5) in respect of any expenses where he is not satisfied that the expense has been defrayed or, having regard to the nature of the expense and its amount, that it has been reasonably incurred.

• (9) For the avoidance of doubt–

• (a) a deduction shall not be made under paragraph (4)(a) or (5) in respect of any sum unless it has been expended for the purposes of the business;

• (b) a deduction shall be made thereunder in respect of–

• (i) the excess of any VAT paid over VAT received in the period determined under regulation 95;

• (ii) any income expended in the repair of an existing asset except to the extent that any sum is payable under an insurance policy for its repair;

• (iii) any payment of interest on a loan taken out for the purposes of the employment.

• (10) Where a claimant is engaged in employment as a child-minder the net profit of the employment shall be one-third of the earnings of that employment, less—

• (a) an amount in respect of–

• (i) income tax; and

• (ii) national insurance contributions payable under the Benefits Act, calculated in accordance with regulation 102 (deductions of tax and contributions for self-employed earners); and

• (b) one half of any premium paid in the period that is relevant under regulation 95 in respect of a personal pension scheme.

• (11) Notwithstanding regulation 95 and the foregoing paragraphs, the Secretary of State may assess any item of a claimant’s income or expenditure over a period other than that determined under regulation 95 such as may, in the particular case, enable the weekly amount of that item of income or expenditure to be determined more accurately.

• (12) For the avoidance of doubt where a claimant is engaged in employment as a self-employed earner and he is engaged in one or more other employments as a self-employed or employed earner, any loss incurred in any one of his employments shall not be offset against his earnings in any other of his employments.

Deduction of tax and contributions for self-employed earners

102

• (1) Subject to paragraph (2), the amount to be deducted in respect of income tax under regulation 101(1)(b)(i), (4)(b)(i) or (10)(a)(i) (calculation of net profit of self-employed earners) is to be calculated—

• (a) on the basis of the amount of chargeable income; and

• (b) as if that income were assessable to income tax at the basic rate, or in the case of a Scottish taxpayer, the Scottish basic rate, of tax less only the personal reliefs to which the claimant is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 as are appropriate to their circumstances.

• (2) If the period determined under regulation 95 is less than a year, the earnings to which the basic rate, or the Scottish basic rate, of tax is to be applied and the amount of the personal reliefs deductible under paragraph (1) are to be calculated on a pro rata basis.

• (3) Subject to paragraph (4), the amount to be deducted in respect of national insurance contributions under regulation 101(1)(b)(i), (4)(b)(ii) or (10)(a)(ii) is to be the total of—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) the amount of Class 4 contributions (if any) which would be payable under section 15 of that Act (Class 4 contributions recoverable under the Income Tax Acts) at the percentage rate applicable at the date of claim on so much of the chargeable income as exceeds the lower limit but does not exceed the upper limit of profits and gains applicable for the tax year in which the date of claim falls.

• (4) If the period determined under regulation 95 is less than a year—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) the limits referred to in paragraph (3)(b) are to be reduced pro rata.

• (5) In this regulation “chargeable income” means—

• (a) except where sub-paragraph (b) applies, the earnings derived from the employment less any expenses deducted under regulation 101(4)(a) or, as the case may be, (5); and

• (b) in the case of employment as a child minder, one-third of the earnings of that employment.

Chapter V — Other Income

Calculation of income other than earnings

103

• (1) For the purposes of regulation 94 (calculation of income other than earnings) ... the income of a claimant which does not consist of earnings to be taken into account shall, subject to the following provisions of this regulation, be his gross income and any capital treated as income under regulations 104 and 106 (capital treated as income and modifications in respect of children and young persons) regulation 104 (capital treated as income).

• (2) There shall be disregarded from the calculation of a claimant’s gross income under paragraph (1) any sum, where applicable, specified in Schedule 7.

• (3) Where the payment of any benefit under the Act or under the Benefits Act is subject to any deduction by way of recovery, the amount to be taken into account under paragraph (1) shall be the gross amount to which the beneficiary is entitled.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) Paragraphs (5ZA) and (5AZA) apply where—

• (a) a relevant payment has been made to a person in an academic year; and

• (b) that person abandons, or is dismissed from, his course of study before the payment to him of the final instalment of the relevant payment.

• (5ZA) Where a relevant payment is made quarterly, the amount of a relevant payment to be taken into account for the assessment period for the purposes of paragraph (1) in respect of a person to whom paragraph (5) applies, shall be calculated by applying the formula—

$$A-(BxC)D$where—A = the total amount of the relevant payment which that person would have received had he remained a student until the last day of the academic term in which he abandoned, or was dismissed from, his course, less any deduction under regulation 136(5);B = the number of benefit weeks from the benefit week immediately following that which includes the first day of that academic year to the benefit week immediately before that which includes the day on which the person abandoned, or was dismissed from, his course;C = the weekly amount of the relevant payment, before the application of the £10 disregard, which would have been taken into account as income under regulation 136(2) had the person not abandoned or been dismissed from, his course and, in the case of a person who was not entitled to a jobseeker’s allowance immediately before he abandoned or was dismissed from his course, had that person, at that time, been entitled to a jobseeker’s allowance;D = the number of benefit weeks in the assessment period.$

• (5AZA) Where a relevant payment is made by two or more instalments in a quarter, the amount of a relevant payment to be taken into account for the assessment period for the purposes of paragraph (1) in respect of a person to whom paragraph (5) applies, shall be calculated by applying the formula in paragraph (5ZA) but as if—

Athe total amount of relevant payments which that person received, or would have received, from the first day of the academic year to the day the person abandoned the course, or was dismissed from it, less any deduction under regulation 136(5).

• (5ZB) In this regulation—

“academic year” and “student loan” shall have the same meanings as for the purposes of Chapter IX of this Part;

“assessment period” means—