The Jobseeker’s Allowance Regulations 1996

“quarter” in relation to an assessment period means a period in that year beginning on—

“relevant payment” means either a student loan or an amount intended for the maintenance of dependants referred to in regulation 131(5A) or both.

• (5A) In the case of income to which regulation 94(2B) applies (calculation of income of former full-time students), the amount of income to be taken into account for the purposes of paragraph (1) shall be the amount of that income calculated in accordance with regulation 97(7) and on the basis that none of that income has been repaid.

• (5B) Where the claimant—

• (a) is a member of a couple;

• (b) his partner is receiving a contributory employment and support allowance; and

• (c) that benefit has been reduced under regulation 63 of the Employment and Support Allowance Regulations or section 11J of the Welfare Reform Act as the case may be,

the amount of that benefit to be taken into account is the amount as if it had not been reduced.

• (6) For the avoidance of doubt there shall be included as income to be taken into account under paragraph (1)

• (a) any payment to which regulation 98(2)(a) to (e) or 100(2) (payments not earnings) applies; or

• (b) in the case of a claimant who is receiving support under section 95 or 98 of the Immigration and Asylum Act including support provided by virtue of regulations made under Schedule 9 to that Act, the amount of such support provided in respect of essential living needs of the claimant and his dependants partner (if any) as is specified in regulations made under paragraph 3 of Schedule 8 to the Immigration and Asylum Act.

Capital treated as income

104

• (1) Any capital payable by instalments which are outstanding on the first day in respect of which an income-based jobseeker’s allowance is payable, or, in the case of a suppression, the date of that suppression, shall, if the aggregate of the instalments outstanding and the amount of the claimant’s capital otherwise calculated in accordance with Chapter VI of this Part exceeds ... £16,000 be treated as income.

• (2) Any payment received under an annuity shall be treated as income.

• (3) In the case of a person who is, or would be, prevented from being entitled to a jobseeker’s allowance by section 14 (trade disputes), any payment under section 17, 23B, 23C or 24A of the Children Act 1989 or, as the case may be, section 12 of the Social Work (Scotland) Act 1968 or sections 29 or 30 of the Children (Scotland) Act 1995 (local authorities’ duty to promote welfare of children and powers to grant financial assistance to persons in, or formerly in, their care) shall be treated as income.

• (4) Any earnings to the extent that they are not a payment of income shall be treated as income.

• (5) Any Career Development Loan paid pursuant to section 2 of the Employment and Training Act 1973 shall be treated as income.

• (6) Where an agreement or court order provides that payments shall be made to the claimant in consequence of any personal injury to the claimant and that such payments are to be made, wholly or partly, by way of periodical payments, any such periodical payments received by the claimant (but not a payment which is treated as capital by virtue of this Part), shall be treated as income.

Notional income

105

• (1) A claimant is to be treated as possessing income of which the claimant has deprived themselves for the purpose of securing entitlement to a jobseeker’s allowance or increasing the amount of that allowance, or for the purpose of securing entitlement to, or increasing the amount of income support or an employment and support allowance.

• (2) Except in the case of–

• (a) a discretionary trust;

• (b) a trust derived from a payment made in consequence of a personal injury;

• (c) child benefit to which paragraph (2A) refers;

• (d) working tax credit or child tax credit;

• (e) a jobseeker’s allowance;

• (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (g) a personal pension scheme , occupational pension scheme or a payment made by the Board of the Pension Protection Fund where the claimant has not attained the qualifying age for state pension credit;or

• (ga) any sum to which paragraph (15A) applies;

• (h) any sum to which paragraph 42(2)(a) of Schedule 8 (capital to be disregarded) applies which is administered in the way referred to in paragraph 42(1)(a);

• (ha) any sum to which paragraph 43(a) of Schedule 8 refers; or

• (i) rehabilitation allowance made under section 2 of the Employment and Training Act 1973,

income which would become available to the claimant upon application being made but which has not been acquired by him shall be treated as possessed by him but only from the date on which it could be expected to be acquired were an application made.

• (2A) This paragraph refers to child benefit payable in accordance with regulation 2(1)(a)(ii) of the Child Benefit and Social Security (Fixing and Adjustment of Rates) Regulations 1976 (weekly rate for only, elder or eldest child of a lone parent) but only to the extent that it exceeds the amount specified in regulation 2(1)(a)(i) of those Regulations.

• (2B) A claimant who has attained the qualifying age for state pension credit shall be treated as possessing—

• (a) the amount of any income from an occupational pension scheme a personal pension scheme or the Board of the Pension Protection Fund —

• (i) for which no claim has been made, and

• (ii) to which he might expect to be entitled if a claim for it were made;

• (b) income from an occupational pension scheme which the claimant elected to defer,

but only from the date on which it could be expected to be acquired were an application for it to be made.

• (3) This paragraph applies where a person who has attained the qualifying age for state pension credit—

• (a) is entitled to money purchase benefits under an occupational pension scheme or a personal pension scheme;

• (b) fails to purchase an annuity with the funds available in that scheme; and

• (c) either—

• (i) defers in whole or in part the payment of any income which would have been payable to him by his pension fund holder, or

• (ii) fails to take any necessary action to secure that the whole of any income which would be payable to him by his pension fund holder upon his applying for it, is so paid, or

• (iii) income withdrawal is not available to him under that scheme.

• (3A) Where paragraph (3) applies, the amount of any income foregone shall be treated as possessed by that person, but only from the date on which it could be expected to be acquired were an application for it to be made.

• (4) The amount of any income foregone in a case where paragraph (3)(c)(i) or (ii) applies shall be the rate of the annuity which may have been purchased with the fund and shall be determined by the Secretary of State who shall take account of information provided by the pension fund holder in accordance with regulation 7(5) of the Social Security (Claims and Payments) Regulations 1987.

• (5) The amount of any income foregone in a case where paragraph (3)(c)(iii) applies shall be the income that the claimant could have received without purchasing an annuity had the fund held under the relevant occupational or personal pension scheme been held under a scheme where income withdrawal was available and shall be determined in the manner specified in paragraph (4).

• (5A) In paragraph (3), “money purchase benefits” has the meaning it has in the Pension Schemes Act 1993.

• (6) Subject to paragraph (7), any income which is due to be paid to the claimant but has not been paid to him, shall be treated as possessed by the claimant.

• (7) Paragraph (6) shall not apply to–

• (a) any amount to which paragraph (8) or (9) applies;

• (b) a payment to which section 74(2) or (3) of the Administration Act applies (abatement of prescribed payments from public funds which are not made before the prescribed date, and abatement from prescribed benefits where maintenance not paid); and

• (c) a payment from a discretionary trust, or a trust derived from a payment made in consequence of a personal injury.

• (d) any earnings which are due to an employed earner on the termination of his employment by reason of redundancy but which have not been paid to him.

• (8) This paragraph applies to an amount which is due to be paid to the claimant under an occupational pension scheme but which is not paid because the trustees or managers of the scheme have suspended or ceased payment due to an insufficiency of resources.

• (9) This paragraph applies to any amount by which a payment made to the claimant from an occupational pension scheme falls short of the payment to which he was due under the scheme where the shortfall arises because the trustees or managers of the scheme have insufficient resources available to them to meet in full the scheme’s liabilities.

• (10) Any payment of income, other than a payment of income specified in paragraph (10A)—

• (a) to a third party in respect of a single claimant or in respect of a single claimant or in respect of a member of the family his partner shall be treated—

• (i) in a case where that payment is derived from a payment of any benefit under the benefit Acts, a payment from the Armed Forces and Reserve Forces Compensation Scheme, a war disablement pension, war widow’s pension or war widower’s pension or a pension payable to a person as a widow, widower or surviving civil partner under any power of Her Majesty otherwise than under an enactment to make provision about pensions for or in respect of persons who have been disabled or have died in consequence of service as members of the armed forces of the Crown, as possessed by that single claimant, if it would normally be paid to him, or as possessed by that member of the family, if it would normally be paid to that member by his partner, if it would normally be paid to his partner;

• (ia) in a case where that payment is a payment of an occupational pension , a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fund, as possessed by that single claimant or, as the case may be, by that member the claimant’s partner;

• (ii) in any other case, as possessed by that single claimant or by that member of the family or his partner to the extent that it is used for the food, ordinary clothing or footwear, household fuel, rent for which housing benefit is payable, or any housing costs to the extent that they are met under regulation 83(f), 84(1)(g), 86A(d) or 86B(e), of that single claimant or, as the case may be, of any member of the family of his partner, or is used for any council tax or water charges for which that claimant or member is liable partner is liable;

• (b) to a single claimant or a member of the family in respect of a third party (but not in respect of another member of the family) shall be treated as possessed by that single claimant or, as the case may be, that member of the family to the extent that it is kept or used by him or used by or on behalf of any member of the family;

to a single claimant or his partner in respect of a third party (but not in respect of another member of his family) shall be treated as possessed by that single claimant or, as the case may be, his partner, to the extent that it is kept or used by him or used by or on behalf of his partner;

but, except where sub-paragraph (a)(i) applies and in the case of a person who is, or would be, prevented from being entitled to a jobseeker’s allowance by section 14 (trade disputes), this paragraph shall not apply to any payment in kind to the third party.

• (10A) Paragraph (10) shall not apply in respect of a payment of income made—

• (a) under or by the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) (No.2) Trust, the Fund, the Eileen Trust , MFET Limited , the Skipton Fund, the Caxton Foundation , the Scottish Infected Blood Support Scheme , an approved blood scheme , the London Emergencies Trust, the We Love Manchester Emergency Fund , the National Emergencies Trust or the Independent Living Fund (2006);

• (ab) which is a Grenfell Tower payment;

• (ac) which is a child abuse payment;

• (ad) which is a Windrush payment;

• (ae) which is a Post Office compensation payment;

• (af) which is an LGBT Financial Recognition Scheme payment;

• (ag) which is a miscarriage of justice compensation payment;

• (b) pursuant to section 19(1)(a) of the Coal Industry Act 1994 (concessionary coal); or

• (c) pursuant to section 2 of the Employment and Training Act 1973 in respect of a person’s participation—

• (i) in an employment programme specified in regulation 75(1)(a)(ii);

• (ii) in a training scheme specified in regulation 75(1)(b)(ii); or

• (iia) ... in the Intensive Activity Period specified in regulation 75(1)(a)(iv); or

• (iii) in a qualifying course within the meaning specified in regulation 17A(7); or

• (iv) in the Flexible New Deal.

• (cb) in respect of a person's participation in the Mandatory Work Activity Scheme;

• (cc) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (cc) in respect of a claimant's participation in a scheme prescribed in regulation 3 of the Jobseeker's Allowance (Schemes for Assisting Persons to Obtain Employment) Regulations 2013;

• (cd) in respect of a person’s participation in a scheme prescribed in regulation 3 of the Jobseeker’s Allowance (Supervised Jobsearch Pilot Scheme) Regulations 2014;

• (d) under an occupational pension scheme , in respect of a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fund where—

• (i) a bankruptcy order has been made in respect of the person in respect of whom the payment has been made or, in Scotland, the estate of that person is subject to sequestration or a judicial factor has been appointed on that person’s estate under section 41 of the Solicitors (Scotland) Act 1980 F6;

• (ii) the payment is made to the trustee in bankruptcy or any other person acting on behalf of the creditors; and

• (iii) the person referred to in (i) and any member of his family his partner (if any) does not possess, or is not treated as possessing, any other income apart from that payment;

• (11) Where the claimant resides in a care home, an Abbeyfield Home or an independent hospital, or is temporarily absent from such a home or hospital, any payment made by a person other than the claimant or a member of his family in respect of some or all of the cost of maintaining the claimant or a member of his family in that home shall be treated as possessed by the claimant or by that member of his family or his partner in that home or hospital shall be treated as possessed by the claimant or his partner.

• (11A) Where the amount of a subsistence allowance paid to a claimant in a benefit week is less than the amount of income-based jobseeker’s allowance that person would have received in that benefit week had it been payable to him, less 50p, he shall be treated as possessing the amount which is equal to the amount of income-based jobseeker’s allowance which he would have received in that week, less 50p.

• (12) Where a claimant’s earnings are not ascertainable at the time of the determination of the claim or of any review or supersession the Secretary of State shall treat the claimant as possessing such earnings as is reasonable in the circumstances of the case having regard to the number of hours worked and the earnings paid for comparable employment in the area.

• (13) Subject to paragraph (13A), where–

• (a) a claimant performs a service for another person; and

• (b) that person makes no payment of earnings or pays less than that paid for a comparable employment in the area,

the Secretary of State shall treat the claimant as possessing such earnings (if any) as is reasonable for that employment unless the claimant satisfies him that the means of that person are insufficient for him to pay or to pay more for the service; ...

• (13A) Paragraph (13) shall not apply–

• (a) to a claimant who is engaged by a charitable or voluntary organisation or who is a volunteer if the Secretary of State is satisfied in any of those cases that it is reasonable for him to provide those services free of charge;

• (b) in a case where the service is performed in connection with–

• (i) the claimant’s participation in an employment or training programme in accordance with regulation 19(1)(q), other than where the service is performed in connection with the claimant’s participation ... in the Intensive Activity Period specified in regulation 75(1)(a)(iv); or

• (ii) the claimant’s or the claimant’s partner’s participation in an employment or training programme as defined in regulation 19(3) for which a training allowance is not payable or, where such an allowance is payable, it is payable for the sole purpose of reimbursement of travelling or meal expenses to the person participating in that programme; or

• (c) to a claimant who is participating in a work placement approved by the Secretary of State (or a person providing services to the Secretary of State) before the placement starts.

• (14) Where a claimant is treated as possessing any income under any of paragraphs (1) to (11) the foregoing provisions of this Part shall apply for the purposes of calculating the amount of that income as if a payment had actually been made and as if it were actual income which he does possess.

• (15) Where a claimant is treated as possessing any earnings under paragraphs (12) or (13) the foregoing provisions of this Part shall apply for the purposes of calculating the amount of those earnings as if a payment had actually been made and as if they were actual earnings which he does possess, except that paragraph (4) of regulation 99 (calculation of net earnings of employed earners) shall not apply and his net earnings shall be calculated by taking into account the earnings which he is treated as possessing, less—

• (a) an amount in respect of income tax equivalent to an amount calculated by applying to those earnings ... the basic rate , or in the case of a Scottish taxpayer, the Scottish basic rate, of tax in the year of assessment 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 his circumstances; but, if the period over which those earnings are to be taken into account 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 this paragraph shall be calculated on a pro rata basis;

• (b) where the weekly amount of those earnings equals or exceeds the lower earnings limit, an amount representing primary Class 1 contributions under the Benefits Act, calculated by applying to those earnings the initial and main primary percentages in accordance with section 8(1)(a) and (b) of that Act; and

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

• (15A) Paragraphs (1), (2), (6), (10) (12) and (13) shall not apply in respect of any amount of income other than earnings, or earnings derived from employment as an employed earner, arising out of the claimant participating as a service user.

• (16) In this regulation–

“ordinary clothing or footwear" means clothing or footwear for normal daily use, but does not include school uniforms, or clothing or footwear used solely for sporting activities;

“pension fund holder" means with respect to a personal pension scheme or an occupational pension scheme the trustees, managers or scheme administrators, as the case may be, of the scheme concerned;

“resources" has the same meaning as in section 181 of the Pension Schemes Act 1993.

“work placement” means practical work experience which is not undertaken in expectation of payment.

Modifications in respect of children and young persons

106

• (1) Any capital of a child or young person payable by instalments which are outstanding on the first day in respect of which an income-based jobseeker’s allowance is payable or, in the case of a suppression, the date of that suppression, shall, if the aggregate of the instalments outstanding and the amount of that child or young person’s other capital calculated in accordance with Chapter VI of this Part in like manner as for the claimant would exceed £3,000, be treated as income.

• (2) In the case of a child or young person who is residing at an educational establishment at which he is receiving relevant education—

• (a) any payment made to the educational establishment, in respect of that child’s or young person’s maintenance, by or on behalf of a person who is not a member of the family or by a member of the family out of funds contributed for that purpose by a person who is not a member of the family, shall be treated as income of that child or young person but it shall only be taken into account over periods during which that child or young person is present at that educational establishment; and

• (b) if a payment has been so made, for any period in a benefit week in term-time during which that child or young person returns home, he shall be treated as possessing an amount of income in that week calculated by multiplying the amount of personal allowance, any disabled child premium and any enhanced disability premium applicable in respect of that child or young person by the number equal to the number of days in that week in which he was present at his educational establishment and dividing the product by seven; but this sub-paragraph shall not apply where the educational establishment is provided under section 8 of the Education Act 1944 (duty of local authority to secure primary and secondary schools) by a local education authority or where the payment is made under section 49 or 50 of the Education (Scotland) Act 1980 (power of education authority to assist persons).

• (3) Where a child or young person–

• (a) is resident at an educational establishment and he is wholly or partly maintained at that establishment by a local education authority under section 8 of the Education Act 1944; or

• (b) is maintained at an educational establishment under section 49 or 50 of the Education (Scotland) Act 1980, he shall for each day he is present at that establishment be treated as possessing an amount of income equal to the sum obtained by dividing the amount of personal allowance, any disabled child premium and any enhanced disability premium applicable in respect of him by seven.

• (4) Where the income of a child or young person who is a member of the claimant’s family calculated in accordance with Chapters I to V of this Part exceeds the amount of the personal allowance, any disabled child premium and any enhanced disability premium applicable in respect of that child or young person, the excess shall not be treated as the income of the claimant.

• (5) Where the capital of a child or young person if calculated in accordance with Chapter VI of this Part in like manner as for the claimant, except as provided in paragraph (1), would exceed £3,000, any income of that child or young person shall not be treated as the income of the claimant.

• (6) In calculating the net earnings or net profit of a child or young person there shall be disregarded (in addition to any sum which falls to be disregarded under paragraphs 14 to 16), any sum specified in paragraphs 17 and 18 of Schedule 6 (earnings to be disregarded).

• (7) Any income of a child or young person which is to be disregarded under Schedule 7 (income other than earnings to be disregarded) shall be disregarded in such manner as to produce the result most favourable to the claimant.

• (8) Where a child or young person is treated as possessing any income under paragraphs (2) or (3) the foregoing provisions of this Part shall apply for the purposes of calculating that income as if a payment had actually been made and as if it were actual income which he does possess.

• (9) For the purposes of this regulation, a child or young person shall not be treated as present at his educational establishment on any day if on that day he spends the night with the claimant or a member of his household.

Chapter VI — Capital

Capital limit

107

For the purposes of section 13(1) and (2A) (no entitlement to an income-based jobseeker's allowance if capital exceeds a prescribed amount), the prescribed amount is £16,000.

Calculation of capital

108

• (1) Subject to paragraph (2), the capital of a claimant to be taken into account shall be the whole of his capital calculated in accordance with this Part and any income treated as capital under regulation 110.

• (2) There shall be disregarded from the calculation of a claimant’s capital under paragraph (1) any capital, where applicable, specified in Schedule 8.

Disregard of capital of child or young person

109

The capital of a child or young person who is a member of the claimant’s family shall not be treated as capital of the claimant.

Income treated as capital

110

• (1) Any bounty derived from employment to which paragraph 9 of Schedule 6 applies and paid at intervals of at least one year shall be treated as capital.

• (2) Except in the case of an amount to which section 15(2)(c)(i) (refund of tax in trade dispute cases) applies, any amount by way of a refund of income tax deducted from profits or emoluments chargeable to income tax under Schedule D or E shall be treated as capital.

• (3) Any holiday pay which is not earnings under regulation 98(1)(c) (earnings of employed earners) shall be treated as capital.

• (4) Except any income derived from capital disregarded under paragraphs 1, 2, 4 to 8, 11 , 17, 42 or 43 of Schedule 8, any income derived from capital shall be treated as capital but only from the date it is normally due to be credited to the claimant’s account.

• (5) Subject to paragraph (6), in the case of employment as an employed earner, any advance of earnings or any loan made by the claimant’s employer shall be treated as capital.

• (6) Paragraph (5) 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).

• (7) Any payment under section 30 of the Prison Act 1952 (payments for discharged prisoners) or allowance under section 17 of the Prisons (Scotland) Act 1989 (allowances to prisoners on discharge) shall be treated as capital.

• (8) Any payment made by a local authority which represents arrears of payments under paragraph 15 of Schedule 1 to the Children Act 1989 (power of a local authority to make contributions to a person with whom a child lives as a result of a residence order) or under section 50 of the Children Act 1975 (contributions to a custodian towards the cost of accommodation and maintenance of a child) or any payment, made by an authority, as defined in Article 2 of the Children Order, which represents arrears of payments under Article 15 of, and paragraph 17 of Schedule 1 to, that Order (contribution by an authority to child’s maintenance), shall be treated as capital.

• (9) Any charitable or voluntary payment which is not made or not due to be made at regular intervals, other than one to which paragraph (10) applies, shall be treated as capital.

• (10) This paragraph applies to a payment–

• (a) which is made to a person who is, or would be, prevented from being entitled to a jobseeker’s allowance by section 14 (trade disputes);

• (ab) which is a Grenfell Tower payment;

• (ac) which is a child abuse payment;

• (ad) which is a Windrush payment; ...

• (ae) which is a Post Office compensation payment;

• (af) which is an LGBT Financial Recognition Scheme payment;

• (ag) which is a miscarriage of justice compensation payment;

• (b) to which regulation 106(2) (modifications in respect of children and young persons) applies; or

• (c) which is made under or by the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) (No.2) Trust, the Fund, the Eileen Trust , MFET Limited , the Skipton Fund, the Caxton Foundation , the Scottish Infected Blood Support Scheme , an approved blood scheme , the London Emergencies Trust, the We Love Manchester Emergency Fund , the National Emergencies Trust , the Victims of Overseas Terrorism Compensation Scheme or the Independent Living Fund (2006).

• (11) Any arrears of subsistence allowance which are paid to a claimant as a lump sum shall be treated as capital.

Calculation of capital in the United Kingdom

111

Capital which a claimant possesses in the United Kingdom shall be calculated at its current market or surrender value less—

• (a) where there would be expenses attributable to the sale, 10 per cent; and

• (b) the amount of any incumbrance secured on it.

Calculation of capital outside the United Kingdom

112

Capital which a claimant possesses in a country outside the United Kingdom shall be calculated—

• (a) in a case in which there is no prohibition in that country against the transfer to the United Kingdom of an amount equal to its current market or surrender value in that country, at that value;

• (b) in a case where there is such a prohibition, at the price which it would realise if sold in the United Kingdom to a willing buyer,

less, where there would be expenses attributable to sale, 10 per cent. and the amount of any incumbrance secured on it.

Notional capital

113

• (1) A claimant shall be treated as possessing capital of which he has deprived himself for the purpose of securing entitlement to a jobseeker’s allowance or increasing the amount of that allowance, or for the purpose of securing entitlement to or increasing the amount of income support, except—

• (a) where that capital is derived from a payment made in consequence of a personal injury and is placed on trust for the benefit of the claimant; or

• (b) to the extent that the capital he is treated as possessing is reduced in accordance with regulation 114 (diminishing notional capital rule); or

• (c) any sum to which paragraph 42(2)(a) of Schedule 8 (capital to be disregarded) applies which is administered in the way referred to in paragraph 42(1)(a); or

• (d) any sum to which paragraph 43(a) of Schedule 8 refers.

• (2) Except in the case of—

• (a) a discretionary trust;

• (b) a trust derived from a payment made in consequence of a personal injury;

• (c) any loan which would be obtainable only if secured against capital disregarded under Schedule 8; or

• (d) a personal pension scheme; or

• (da) an occupational pension scheme or a payment made by the Board of the Pension Protection Fund where the claimant has not attained the qualifying age for state pension credit; or

• (e) any sum to which paragraph 42(2)(a) of Schedule 8 (capital to be disregarded) applies which is administered in the way referred to in paragraph 42(1)(a); or

• (f) any sum to which paragraph 43(a) of Schedule 8 refers,

any capital which would become available to the claimant upon application being made but which has not been acquired by him shall be treated as possessed by him but only from the date on which it could be expected to be acquired were an application made.

• (3) Any payment of capital, other than a payment of capital specified in paragraph (3A) or (3B) made—

• (a) to a third party in respect of a single claimant or in respect of a member of the family his partner shall be treated—

• (ia) in a case where that payment is a payment of an occupational pension , a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fund, as possessed by that single claimant or, as the case may be, by that member the claimant’s partner;

• (i) in a case where that payment is derived from a payment of any benefit under the benefit Acts, a payment from the Armed Forces and Reserve Forces Compensation Scheme, a war disablement pension, war widow’s pension or war widower’s pension or a pension payable to a person as a widow, widower or surviving civil partner under any power of Her Majesty otherwise than under an enactment to make provision about pensions for or in respect of persons who have been disabled or have died in consequence of service as members of the armed forces of the Crown, as possessed by that single claimant, if it would normally be paid to him, or as possessed by that member of the family, if it would normally be paid to that member by his partner, if it would normally be paid to his partner;

• (ii) in any other case, as possessed by that single claimant or by that member of the family or his partner to the extent that it is used for the food, ordinary clothing or footwear, household fuel, rent for which housing benefit is payable or any housing costs to the extent that they are met under regulation 83(f) , 84(1)(g), 86A(d) or 86B(e)..., of that single claimant or, as the case may be, of any member of the family of his partner , or is used for any council tax or water charges for which that claimant or member is liable partner is liable;

• (b) to a single claimant or a member of the family in respect of a third party (but not in respect of another member of the family) shall be treated as possessed by that single claimant or, as the case may be, that member of the family to the extent that it is kept or used by him or by or on behalf of any member of the family.

to a single claimant or his partner in respect of a third party (but not in respect of another member of his family) shall be treated as possessed by that single claimant or, as the case may be, his partner, to the extend that it is kept or used by him or used by or on behalf of his partner.

• (3A) Paragraph (3) shall not apply in respect of a payment of capital made—

• (a) under or by the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) (No.2) Trust, the Fund, the Eileen Trust , MFET Limited , the Independent Living Fund (2006) , the Skipton Fund , the Caxton Foundation , the Scottish Infected Blood Support Scheme , an approved blood scheme , the London Emergencies Trust, the We Love Manchester Emergency Fund , the National Emergencies Trust , the Victims of Overseas Terrorism Compensation Scheme or the London Bombings Relief Charitable Fund; or

• (b) pursuant to section 2 of the Employment and Training Act 1973 in respect of a person’s participation—

• (i) in an employment programme specified in regulation 75(1)(a)(ii);

• (ii) in a training scheme specified in regulation 75(1)(b)(ii); or

• (iia) ... in the Intensive Activity Period specified in regulation 75(1)(a)(iv); or

• (iii) in a qualifying course within the meaning specified in regulation 17A(7); or

• (iv) in the Flexible New Deal;

• (bb) in respect of a person's participation in the Mandatory Work Activity Scheme;

• (bc) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (bc) in respect of a claimant's participation in a scheme prescribed in regulation 3 of the Jobseeker's Allowance (Schemes for Assisting Persons to Obtain Employment) Regulations 2013;

• (bd) in respect of a person’s participation in a scheme prescribed in regulation 3 of the Jobseeker’s Allowance (Supervised Jobsearch Pilot Scheme) Regulations 2014;

• (be) in respect of a person’s participation in a scheme prescribed in regulation 3 of the Jobseekers Allowance (18 - 21 Work Skills Pilot Scheme) Regulations 2014;

• (c) under an occupational pension scheme , in respect of a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fund where—

• (i) a bankruptcy order has been made in respect of the person in respect of whom the payment has been made or, in Scotland, the estate of that person is subject to sequestration or a judicial factor has been appointed on that person’s estate under section 41 of the Solicitors (Scotland) Act 1980;

• (ii) the payment is made to the trustee in bankruptcy or any other person acting on behalf of the creditors; and

• (iii) the person referred to in (i) and any member of his family his partner (if any) does not possess, or is not treated as possessing, any other income apart from that payment.

• (3B) Paragraph (3) shall not apply in respect of any of the following payments of capital—

• (a) a Grenfell Tower payment;

• (b) a child abuse payment;

• (c) a Windrush payment;

• (d) a Post Office compensation payment;

• (e) a vaccine damage payment;

• (f) an LGBT Financial Recognition Scheme payment;

• (g) a miscarriage of justice compensation payment.

• (4) Where a claimant stands in relation to a company in a position analogous to that of a sole owner or a partner in the business of that company, he shall be treated as if he were such sole owner or partner and in such a case—

• (a) the value of his holding in that company shall, notwithstanding regulation 108 (calculation of capital), be disregarded; and

• (b) he shall, subject to paragraph (5), be treated as possessing an amount of capital equal to the value or, as the case may be, his share of the value of the capital of that company and the foregoing provisions of this Chapter shall apply for the purposes of calculating that amount as if it were actual capital which he does possess.

• (5) For so long as the claimant undertakes activities in the course of the business of the company, the amount which he is treated as possessing under paragraph (4) shall be disregarded.

• (6) Where a claimant is treated as possessing any capital under any of paragraphs (1) to (4) the foregoing provisions of this Chapter shall apply for the purposes of calculating the amount of that capital as if it were actual capital which he does possess.

• (7) For the avoidance of doubt a claimant is to be treated as possessing capital under paragraph (1) only if the capital of which he has deprived himself is actual capital.

• (8) In paragraph (3) the expression “ordinary clothing or footwear" means clothing or footwear for normal daily use, but does not include school uniforms, or clothing or footwear used solely for sporting activities.

Diminishing notional capital rule

114

• (1) Where a claimant is treated as possessing capital under regulation 113(1) (notional capital), the amount which he is treated as possessing—

• (a) in the case of a week that is subsequent to–

• (i) the relevant week in respect of which the conditions set out in paragraph (2) are satisfied, or

• (ii) a week which follows that relevant week and which satisfies those conditions,

shall be reduced by an amount determined under paragraph (2);

• (b) in the case of a week in respect of which paragraph (1)(a) does not apply but where—

• (i) that week is a week subsequent to the relevant week, and

• (ii) that relevant week is a week in which the condition in paragraph (3) is satisfied,

shall be reduced by an amount determined under paragraph (3).

• (2) This paragraph applies to a benefit week or part week where the claimant satisfies the conditions that—

• (a) he is in receipt of a jobseeker’s allowance; and

• (b) but for regulation 113(1), he would have received an additional amount of jobseeker’s allowance in that benefit week or, as the case may be, that part week;

and in such a case, the amount of the reduction for the purposes of paragraph (1)(a) shall be equal to that additional amount.

• (3) Subject to paragraph (4), for the purposes of paragraph (1)(b) the condition is that the claimant would have been entitled to an income-based jobseeker’s allowance in the relevant week but for regulation 113(1), and in such a case the amount of the reduction shall be equal to the aggregate of—

• (a) the amount of jobseeker’s allowance to which the claimant would have been entitled in the relevant week but for regulation 113(1); and for the purposes of this sub-paragraph if the relevant week is a part-week that amount shall be determined by dividing the amount of jobseeker’s allowance to which he would have been entitled by the number equal to the number of days in the part-week and multiplying the quotient by 7;

• (b) the amount of housing benefit (if any) equal to the difference between his maximum housing benefit and the amount (if any) of housing benefit which he is awarded in respect of the benefit week which includes the last day of the relevant week, and for this purpose “benefit week" has the same meaning as in regulation 2(1) of the Housing Benefit Regulations 2006 (interpretation).

• (c) the amount of council tax benefit (if any) equal to the difference between his maximum council tax benefit and the amount (if any) of council tax benefit which he is awarded in respect of the benefit week which includes the last day of the relevant week, and for this purpose “benefit week" means a period of 7 consecutive days beginning on a Monday and ending on a Sunday.

• (4) The amount determined under paragraph (3) shall be re-determined under that paragraph if the claimant makes a further claim for a jobseeker’s allowance and the conditions in paragraph (5) are satisfied, and in such a case—

• (a) sub-paragraphs (a), (b) and (c) of paragraph (3) shall apply as if for the words “relevant week" there were substituted the words “ relevant subsequent week ”; and

• (b) subject to paragraph (6), the amount as re-determined shall have effect from the first week following the relevant subsequent week in question.

• (5) The conditions referred to in paragraph (4) are that–

• (a) a further claim is made 26 or more weeks after–

• (i) the date on which the claimant made a claim for a jobseeker’s allowance in respect of which he was first treated as possessing the capital in question under regulation 113(1); or

• (ii) in a case where there has been at least one re-determination in accordance with paragraph (4), the date on which he last made a claim for a jobseeker’s allowance which resulted in the weekly amount being re-determined; or

• (iii) the date on which he last ceased to be in receipt of a jobseeker’s allowance;

whichever last occurred; and

• (b) the claimant would have been entitled to a jobseeker’s allowance but for regulation 113(1).

• (6) The amount as re-determined pursuant to paragraph (4) shall not have effect if it is less than the amount which applied in that case immediately before the re-determination and in such a case the higher amount shall continue to have effect.

• (7) For the purposes of this regulation–

• (a) “part-week" has the same meaning as in regulation 150(3);

• (b) “relevant week" means the benefit week or part-week in which the capital in question of which the claimant has deprived himself within the meaning of regulation 113(1)—

• (i) was first taken into account for the purposes of determining his entitlement to a jobseeker’s allowance or income support; or

• (ii) was taken into account on a subsequent occasion for the purposes of determining or re-determining his entitlement to a jobseeker’s allowance or income support on that subsequent occasion and that determination or re-determination resulted in his beginning to receive, or ceasing to receive, a jobseeker’s allowance or income support;

and where more than one benefit week or part-week is identified by reference to heads (i) and (ii) of this sub-paragraph, the later or latest such benefit week or part-week;

• (c) “relevant subsequent week" means the benefit week or part-week which includes the day on which the further claim or, if more than one further claim has been made, the last such claim was made.

Capital jointly held

115

Except where a claimant possesses capital which is disregarded under regulation 113(4) (notional capital), where a claimant and one or more persons are beneficially entitled in possession to any capital asset, they shall be treated as if each of them were entitled in possession to the whole beneficial interest therein in an equal share and the foregoing provisions of this Chapter shall apply for the purposes of calculating the amount of capital which the claimant is treated as possessing as if it were actual capital which the claimant does possess.

Calculation of tariff income from capital

116

• (1) Except in a case to which paragraph ...(1B) applies, where the claimant’s capital calculated in accordance with this Part exceeds £6,000 it shall be treated as equivalent to a weekly income of £1 for each complete £250 in excess of £6,000 but not exceeding £16,000.

• (1ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (1A) In the case of a claimant to whom paragraph (1B) applies and whose capital calculated in accordance with Chapter VI of Part VIII exceeds £10,000, it shall be treated as equivalent to a weekly income of £1 for each complete £250 in excess of £10,000 but not exceeding £16,000.

• (1B) This paragraph applies where the claimant lives permanently in—

• (a) a care home or an independent hospital;

• (b) an Abbeyfield Home;

• (c) accommodation provided under section 3 of, and Part II of the Schedule to, the Polish Resettlement Act 1947 (provision of accommodation in camps) where the claimant requires personal care by reason of old age, disablement, past or present dependence on alcohol or drugs, past or present mental disorder or a terminal illness and the care is provided in the home.

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

• (1C) For the purpose of paragraph (1B), a claimant shall be treated as living permanently in such home, hospital or accommodation where he is absent—

• (a) from a home, hospital or accommodation referred to in sub-paragraph (a) or (b) of paragraph (1B) for a period not exceeding 13 weeks;

• (b) from accommodation referred to in sub-paragraph (c) of paragraph (1B), but intends, with the agreement of the manager of the accommodation, to return to the accommodation in due course.

• (2) Notwithstanding paragraphs (1)... and (1A), where any part of the excess is not a complete £250 that part shall be treated as equivalent to a weekly income of £1.

• (3) For the purposes of paragraphs (1)... and (1A), capital includes any income treated as capital under regulations 110 and 124 (income treated as capital and liable relative payments treated as capital).

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

Chapter VII — ... liable relative payments

Interpretation

117

In this Chapter, unless the context otherwise requires—

• ...

• “claimant" includes a young claimant;

• “claimant’s family” shall be construed in accordance with section 35(1) of the Jobseekers Act 1995 (interpretation);

• “housing costs” means those costs which may be met under regulation 83(f) or 84(1)(g) (housing costs);

• “liable relative" means–a spouse, former spouse, civil partner or former civil partner of a claimant or of a member of the claimant’s family;a parent of a young claimant or of a child or young person who is a member of a claimant’s family;a person who has not been adjudged to be the father of a young claimant or of a child or young person who is a member of a claimant’s family, where that person is contributing to the maintenance of that young claimant, child or young person and by reason of that contribution he may reasonably be treated as the father of that young claimant, child or young person;a person liable to maintain another person by virtue of section 78(6)(c) of the Administration Act where the latter is the claimant or a member of the claimant’s family,and, in this definition, a reference to a child’s, young person’s or young claimant’s parent includes any person in relation to whom the child, young person or young claimant was treated as a child or a member of the family;

• “ordinary clothing and footwear” means clothing and footwear for normal daily use but does not include school uniforms;

• “payment" means a periodical payment or any other payment made by or derived from a liable relative...; but it does not include any payment—arising as a consequence of a disposition of property made in contemplation of, or as a consequence of—an agreement to separate; orany proceedings for judicial separation, divorce or nullity of marriage or; any proceedings for separation, dissolution or nullity in relation to a civil partnership; made after the death of the liable relative;made by way of a gift but not in aggregate or otherwise exceeding £250 in the period of 52 weeks beginning with the date on which the payment, or if there is more than one such payment the first payment, is made; and in the case of a claimant who continues to be in receipt of an income-based jobseeker’s allowance at the end of the period of 52 weeks, this provision shall continue to apply thereafter with the modification than any subsequent period of 52 weeks shall begin with the first day of the benefit week in which the first payment is made after the end of the previous period of 52 weeks;to which regulation 106(2) applies (payments in respect of children and young persons who reside at an educational establishment); made to a third party, or in respect of a third party, unless the payment is— in relation to the claimant or the claimant’s partner or is made or derived from a person falling within sub-paragraph (d) of the definition of liable relative; and... in respect of food, ordinary clothing or footwear, fuel, rent for which housing benefit is payable, housing costs to the extent that they are met under regulations 83(f) or 84(1)(g) (housing costs), council tax or water charges;in kind;to or in respect of a child or young person who is to be treated as not being a member of the claimant’s household under regulation 78;which is not a periodical payment, to the extent that any amount of that payment—has already been taken into account under this Part by virtue of a previous claim or determination; orhas been recovered under section 74(1) of the Administration Act (prevention of duplication of payments) or is currently being recovered; orat the time the determination is made, has been used by the claimant except where he has deprived himself of that amount for the purpose of securing entitlement to a jobseeker’s allowance or increasing the amount of that allowance; to which paragraph 70 of Schedule 7 (sums to be disregarded in the calculation of income other than earnings) applies;

• “periodical payment" means–a payment which is made or is due to be made at regular intervals...;in a case where the liable relative has established a pattern of making payments at regular intervals, any such payment;any payment... that does not exceed the amount of jobseeker’s allowance payable had that payment not been made;any payment representing a commutation of payments to which sub-paragraph (a) or (b) of this definition applies whether made in arrears or in advance,but does not include a payment due to be made before the benefit week in which the claimant first became entitled to an income-based jobseeker’s allowance, which was not so made;

• “young claimant" means a person aged 16 or over but under 20 who makes a claim for a jobseeker’s allowance.

Treatment of ... liable relative payments

118

Subject to regulation 119... a payment shall—

• (a) to the extent that it is not a payment of income, be treated as income;

• (b) be taken into account in accordance with the following provisions of this Chapter.

Disregard of payments treated as not relevant income

119

Where the Secretary of State treats any payment as not being relevant income for the purposes of section 74A of the Administration Act (payment of benefit where maintenance payments collected by Secretary of State), that payment shall be disregarded in calculating a claimant’s income.

Period over which periodical payments are to be taken into account

120

• (1) The period over which a periodical payment is to be taken into account shall be–

• (a) in a case where the payment is made at regular intervals, a period equal to the length of that interval;

• (b) in a case where the payment is due to be made at regular intervals but is not so made, 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 amount of that payment by the weekly amount of that periodical payment as calculated in accordance with regulation 122(4);

• (c) in any other case, a period equal to a week.

• (2) The period under paragraph (1) shall begin on the date on which the payment is treated as paid under regulation 123.

Period over which payments other than periodical payments are to be taken into account

121

• (1) The period over which a payment other than a periodical payment (a “non-periodical payment”) is to be taken account shall be determined as follows.

• (2) Except in a case where paragraph (4) applies, the number of weeks over which a non-periodical payment is to be taken into account shall be equal to the number obtained by dividing that payment by the amount referred to in paragraph (3).

• (3) The amount is the aggregate of £2 and—

• (a) the amount of jobseeker’s allowance that would be payable had no payment been made, ...

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

• (4) This paragraph applies in a case where a liable relative makes a periodical payment and a non-periodical payment concurrently and the weekly amount of the periodical payment (as calculated in accordance with regulation 122) is less than B.

• (5) In a case where paragraph (4) applies, the non-periodical payment shall, subject to paragraphs (6) and (7), be taken into account over a period of the number of weeks equal to the number obtained by applying the formula—

$AB−C$

• (6) If the liable relative ceases to make periodical payments, the balance (if any) of the non-periodical payment shall be taken into account over the number of weeks equal to the number obtained by dividing that balance by the amount referred to in paragraph (3).

• (7) If the amount of any subsequent periodical payment varies, the balance (if any) of the non-periodical payment shall be taken into account over a period of the number of weeks equal to the number obtained by applying the formula—

$DB−E$

• (8) The period under paragraph (2) or (4) shall begin on the date on which the payment is treated as paid under regulation 123 (date on which a liable relative payment is treated as paid) and the period under paragraph (6) and (7) shall begin on the first day of the benefit week in which the cessation or variation of the periodical payment occurred.

• (9) Any fraction which arises by applying a calculation or formula referred to in this regulation shall be treated as a corresponding fraction of a week.

• (10) In paragraphs (4) to (7)—

Athe amount of the non-periodical payment;Bthe aggregate of £2 and the amount of jobseeker’s allowance that would be payable had the periodical payment not been made...;Cthe weekly amount of the periodical payment;Dthe balance (if any) of the non-periodical payment;Ethe weekly amount of any subsequent periodical payment.

Calculation of the weekly amount of a ...liable relative payment

122

• (1) Where a periodical payment is made or is due to be made at intervals of one week, the weekly amount shall be the amount of that payment.

• (2) Where a periodical payment is made or is due to be made at intervals greater than one week and those intervals are monthly, the weekly amount shall be determined by multiplying the amount of the payment by 12 and dividing the product by 52.

• (3) Where a periodical payment is made or is due to be made at intervals and those intervals are neither weekly or monthly, the weekly amount shall be determined by dividing that payment by the number equal to the number of weeks (including any part of a week) in that interval.

• (4) Where a payment is made and that payment represents a commutation of periodical payments whether in arrears or in advance, the weekly amount shall be the weekly amount of the individual periodical payments so commuted as calculated under paragraphs (1) to (3) as appropriate.

• (5) The weekly amount of a payment to which regulation 121 applies (period over which payments other than periodical payments are to be taken into account) shall be equal to the amount of the divisor used in calculating the period over which the payment or, as the case may be, the balance is to be taken into account.

Date on which a... liable relative payment is to be treated as paid

123

• (1) A periodical payment is to be treated as paid–

• (a) in the case of a payment which is due to be made before the benefit week in which the claimant first became entitled to an income-based jobseeker’s allowance, on the day in the week in which it is due to be paid which corresponds to the first day of the benefit week;

• (b) in any other case, on the first day of the benefit week in which it is due to be paid unless, having regard to the manner in which jobseeker’s allowance is due to be paid in the particular case, it would be more practicable to treat it as paid on the first day of a subsequent benefit week.

• (2) Subject to paragraph (3), any other payment shall be treated as paid–

• (a) in the case of a payment which is made before the benefit week in which the claimant first became entitled to an income-based jobseeker’s allowance, on the day in the week in which it is paid which corresponds to the first day of the benefit week;

• (b) in any other case, on the first day of the benefit week in which it is paid unless, having regard to the manner in which jobseeker’s allowance is due to be paid in the particular case, it would be more practicable to treat it as paid on the first day of a subsequent benefit week.

• (3) Any other payment paid on a date which falls within the period in respect of which a previous payment is taken into account, not being a periodical payment, is to be treated as paid on the first day following the end of that period.

Liable relative payments to be treated as capital

124

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

Chapter VIII — Child Support

Interpretation

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

Treatment of child support maintenance

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

Disregard of payments treated as not relevant income

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

Calculation of the weekly amount of child support maintenance

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

Date on which child support maintenance is to be treated as paid

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

Chapter IX — Students

Interpretation

130

In this Chapter, unless the context otherwise requires—

• “academic year” means the period of twelve months beginning on 1st January, 1st April, 1st July or 1st September according to whether the course in question begins in the winter, the spring, the summer or the autumn respectively but if students are required to begin attending the course during August or September and to continue attending through the autumn, the academic year of the course shall be considered to begin in the autumn rather than the summer;

• “access funds" means— grants made under section 68 of the Further and Higher Education Act 1992 or section 74 of the Higher Education and Research Act 2017 ... for the purpose of providing funds on a discretionary basis to be paid to students;grants made under sections 73(a) and (c) and 74(1) of the Education (Scotland) Act 1980; ...grants made under Article 30 of the Education and Libraries (Northern Ireland) Order 1993, or grants, loans or other payments made under Article 5 of the Further Education (Northern Ireland) Order 1997 in each case being grants, or grants, loans or other payments as the case may be, made for the purpose of assisting students in financial difficulties...; discretionary payments, known as “learner support funds”, which are made available to students in further education by institutions out of funds provided by the Secretary of State under section 14 of the Education Act 2002 ... under sections 100 and 101 of the Apprenticeships, Skills, Children and Learning Act 2009 or; Financial Contingency Funds made available by the Welsh Ministers;

• “contribution” means— any contribution in respect of the income of a student or any person which the Secretary of State, the Scottish Ministers or an education authority takes into account in ascertaining the amount of a student's grant or student loan; orany sums, which in determining the amount of a student's allowance or bursary in Scotland under the Education (Scotland) Act 1980, the Scottish Ministers or education authority takes into account being sums which the Scottish Ministers or education authority consider that it is reasonable for the following persons to contribute towards the holder's expenses—the holder of the allowance or bursary;the holder's parents;the holder's parent's spouse, civil partner or a person ordinarily living with the holder's parent as if he or she were the spouse or civil partner of that parent; orthe holder's spouse or civil partner;

• “covenant income" means the income payable to a student under a deed of covenant by a person whose income is, or is likely to be, taken into account in assessing the student’s grant or award;

• “education authority" means a government department, a local authority as defined in section 579 of the Education Act 1996, a local education authority as defined in section 123 of the Local Government (Scotland) Act 1973, an education and library board established under article 3 of the Education and Libraries (Northern Ireland) Order 1986, any body which is a research council for the purposes of the Science and Technology Act 1965 or any analogous government department, authority, board or body, of the Channel Islands, Isle of Man or any other country outside Great Britain;

• “grant" (except in the definition of “access funds") means any kind of educational grant or award and includes any scholarship, studentship, exhibition, allowance or bursary but does not include a payment from access funds or any payment to which paragraph 12 of Schedule 7 or paragraph 52 of Schedule 8 applies;

• “grant income" means–any income by way of a grant;in the case of a student other than one to whom sub-paragraph (c) refers, any contribution that has been taken into account whether or not it has been paid;in the case of a student who satisfies the additional conditions for a disability premium in paragraph 14 of Schedule 1 (applicable amounts), any contribution which has been taken into account and which has been paid,and any such contribution which is paid by way of a covenant shall be treated as part of the student’s grant income;

• ...

• “last day of the course” means the date on which the last day of the final academic term falls in respect of the course in which the student is enrolled;

• “periods of experience” means periods of work experience which form part of a sandwich course;

• “postgraduate loan” means a loan to a student undertaking a postgraduate master’s degree course or a postgraduate doctoral degree course pursuant to regulations made under section 22 of the Teaching and Higher Education Act 1998;

• “standard maintenance grant" means–except where paragraph (b) or (c) applies, in the case of a student attending or undertaking a course of study at the University of London or an establishment within the area comprising the City of London and the Metropolitan Police District, the amount specified for the time being in paragraph 2(2)(a) of Schedule 2 to the Education (Mandatory Awards) Regulations 1995 (“the 1995 regulations") for such a student;except where paragraph (c) applies, in the case of a student residing at his parents’ home, the amount specified in paragraph 3(2) thereof; in the case of a student receiving an allowance or bursary under the Education (Scotland) Act 1980, the amount of money specified as the “standard maintenance allowance” for the relevant year appropriate for the student set out in the Student Support in Scotland Guide issued by the Student Awards Agency for Scotland, or its nearest equivalent in the case of a bursary provided by a college of further education or a local education authority...; in any other case, the amount specified in paragraph 2(2) of the 1995 regulations other than in sub-paragraph (a) or (b) thereof;

• ...

• “student loan" means a loan towards a student’s maintenance pursuant to any regulations made under section 22 of the Teaching and Higher Education Act 1998, section 73 of the Education (Scotland) Act 1980 or Article 3 of the Education (Student Support) (Northern Ireland) Order 1998 and shall include, in Scotland, a young student’s bursary paid under regulation 4(1)(c) of the Students’ Allowances (Scotland) Regulations 1999;

• ...

Calculation of grant income

131

• (1) The amount of a student’s grant income to be taken into account shall, subject to paragraphs (2) and (3), be the whole of his grant income.

• (2) There shall be disregarded from the amount of a student’s grant income any payment—

• (a) intended to meet tuition fees or examination fees;

• (b) intended to meet additional expenditure incurred by a disabled student in respect of his attendance on a course;

• (c) intended to meet additional expenditure connected with term time residential study away from the student’s educational establishment;

• (d) on account of the student maintaining a home at a place other than that at which he resides while attending his course but only to the extent that his rent is not met by housing benefit;

• (e) on account of any other person but only if that person is residing outside the United Kingdom and there is no applicable amount in respect of him;

• (f) intended to meet the cost of books and equipment ... ...

• (g) intended to meet travel expenses incurred as a result of his attendance on the course.

• (h) intended for the maintenance ... of a child dependent.

• (i) intended for the child care costs of a child dependant.

• (j) of higher education bursary for care leavers made under Part III of the Children Act 1989 or Part 6 of the Social Services and Well-being (Wales) Act 2014.

• (3) Where a student does not have a student loan or a postgraduate ... loan and is not treated as possessing a student loan or a postgraduate ... loan, there shall be excluded from the student’s grant income—

• (a) the sum of £303 per academic year in respect of travel costs; and

• (b) the sum of £390 per academic year towards the costs of books and equipment,

whether or not any such costs are incurred.

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

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

• (4) Subject to paragraph (5A), a student’s grant income except for any amount intended for the maintenance of adult dependants under Part III of Schedule 2 to the Education (Mandatory Awards) Regulations 1999, or intended for an older student under Part IV of that Schedule, shall be apportioned—

• (a) subject to paragraph (6), in a case where it is attributable to the period of study, equally between the weeks in the period beginning with the benefit week, the first day of which coincides with, or immediately follows, the first day of the period of study and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of the period of study;

• (b) in any other case, equally between the weeks in the period beginning with the benefit week, the first day of which coincides with, or immediately follows, the first day of the period for which it is payable and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of the period for which it is payable.

• (5) Any grant paid under section 63(6) of the Health Services and Public Health Act 1968 (grants in respect of the provision of instruction to officers of hospital authorities) and any amount intended for the maintenance of dependants an adult dependant or for an older student under the provisions referred to in paragraph (4) shall be apportioned equally over a period of 52 weeks or, if there are 53 benefit weeks (including part-weeks) in the year, 53.

• (5A) In a case where a student is in receipt of a student loan or where he could have acquired a student loan by taking reasonable steps but had not done so, any amount intended for the maintenance of dependants an adult dependant under provisions other than those referred to in paragraphs (4) and (5), shall be apportioned over the same period as the student’s loan is apportioned or, as the case may be, would have been apportioned.

• (6) In the case of a student on a sandwich course, any periods of experience within the period of study shall be excluded and the student’s grant income shall be apportioned equally between the weeks in the period beginning with the benefit week, the first day of which immediately follows the last day of the period of experience and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of the period of study.

Calculation of covenant income where a contribution is assessed

132

• (1) Where a student is in receipt of income by way of a grant during a period of study and a contribution has been assessed, the amount of his covenant income to be taken into account for that period and any summer vacation immediately following shall be the whole amount of his covenant income less, subject to paragraph (3), the amount of the contribution.

• (2) The weekly amount of the student’s covenant income shall be determined–

• (a) by dividing the amount of income which falls to be taken into account under paragraph (1) by 52 or, if there are 53 benefit weeks (including part-weeks) in the year, 53; and

• (b) by disregarding £5 from the resulting amount.

• (3) For the purposes of paragraph (1), the contribution shall be treated as increased by the amount, if any, by which the amount excluded under regulation 131(2)(g) falls short of the amount for the time being specified in paragraph 7(4)(i) of Schedule 2 to the Education (Mandatory Awards) Regulations 1995 (travel expenditure).

Covenant income where no grant income or no contribution is assessed

133

• (1) Where a student is not in receipt of income by way of a grant the amount of his covenant income shall be calculated as follows—

• (a) any sums intended for any expenditure specified in regulation 131(2)(a) to (e), necessary as a result of his attendance on the course, shall be disregarded;

• (b) any covenant income, up to the amount of the standard maintenance grant, which is not so disregarded, shall be apportioned equally between the weeks of the period of study and there shall be disregarded from the covenant income to be so apportioned the amount which would have been disregarded under regulation 131(2)(f) and (g) and (3) had the student been in receipt of the standard maintenance grant;

• (c) the balance, if any, shall be divided by 52 or, if there are 53 benefit weeks (including part-weeks) in the year, 53 and treated as weekly income of which £5 shall be disregarded.

• (2) Where a student is in receipt of income by way of a grant and no contribution has been assessed, the amount of his covenant income shall be calculated in accordance with paragraph (1), except that—

• (a) the value of the standard maintenance grant shall be abated by the amount of his grant income less an amount equal to the amount of any sums disregarded under regulation 131(2)(a) to (e); and

• (b) the amount to be disregarded under paragraph (1)(b) shall be abated by an amount equal to the amount of any sums disregarded under regulation 131(2)(f) and (g) and (3).

Relationship with amounts to be disregarded under Schedule 7

134

No part of a student’s covenant income or grant income shall be disregarded under paragraph 15 of Schedule 7 (charitable and voluntary payments)....

Other amounts to be disregarded

135

• (1) For the purposes of ascertaining income other than grant income, covenant income, and loans treated as income in accordance with regulation 136, any amounts intended for any expenditure specified in regulation 131(2) (calculation of grant income) necessary as a result of the student’s attendance on the course shall be disregarded but only if, and to the extent that, the necessary expenditure exceeds or is likely to exceed the amount of the sums disregarded under regulation 131(2) and (3), 132(3) , 133(1)(a) or (b) and 136(5) (calculation of grant income, covenant income and treatment of student loans).

• (2) Where a claim is made in respect of any period in the normal summer vacation and any income is payable under a deed of covenant which commences or takes effect after the first day of that vacation, that income shall be disregarded.

Treatment of student loans

136

• (1) A student loan and a postgraduate ... loan shall be treated as income....

• (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) In calculating the weekly amount of the loan to be taken into account as income—

• (a) in respect of a course that is of a single academic year’s duration or less, a loan which is payable in respect of that period shall be apportioned equally between the weeks in the period beginning with—

• (i) except in a case where (ii) below applies, the benefit week, the first day of which coincides with, or immediately follows, the first day of the single academic year;

• (ii) where the student is required to start attending the course in August or where the course is of less than an academic year’s duration, the benefit week, the first day of which coincides with, or immediately follows, the first day of the course,

and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of the course;

• (aa) in respect of an academic year of a course which starts other than on 1st September, a loan which is payable in respect of that academic year shall be apportioned equally between the weeks in the period beginning with the benefit week, the first day of which coincides with, or immediately follows, the first day of that academic year and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of that academic year but excluding any benefit weeks falling entirely within the quarter during which, in the opinion of the Secretary of State, the longest of any vacation is taken and for the purposes of this sub-paragraph, “quarter” shall have the same meaning as for the purposes of the Education (Student Support) Regulations 2001;

• (b) in respect of the final academic year of a course (not being a course of a single year’s duration), a loan which is payable in respect of that final academic year shall be apportioned equally between the weeks in the period beginning with...—

• (i) except in a case where (ii) below applies, the benefit week, the first day of which coincides with, or immediately follows, the first day of that academic year;

• (ii) where the final academic year starts on 1st September, the benefit week, the first day of which coincides with, or immediately follows, the earlier of 1st September or the first day of the autumn term;

and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of the course;

• (c) in any other case, the loan shall be apportioned equally between the weeks in the period beginning with the earlier of—

• (i) the first day of the first benefit week in September; or

• (ii) the benefit week, the first day of which coincides with, or immediately follows, the first day of the autumn term,

and ending with the benefit week, the last day of which coincides with, or immediately precedes, the last day of June,

and, in all cases, from the weekly amount so apportioned there shall be disregarded £10.

• (3) A student shall be treated as possessing a student loan or a postgraduate ... loan in respect of an academic year where—

• (a) a student loan or a postgraduate ... loan has been made to him in respect of that year; or

• (b) he could acquire a student loan or a postgraduate ... loan in respect of that year by taking reasonable steps to do so.

• (4) Where a student is treated as possessing a student loan under paragraph (3), the amount of the student loan to be taken into account as income shall be, subject to paragraph (5)—

• (a) in the case of a student to whom a student loan is made in respect of an academic year, a sum equal to the maximum student loan he is able to acquire in respect of that year by taking reasonable steps to do so and either—

• (i) in the case of a student other than one to whom head (ii) refers, any contribution whether or not it has been paid to him; or

• (ii) in the case of a student who satisfies the additional conditions for a disability premium specified in paragraph 14 of Schedule 1 (applicable amounts), any contribution which has actually been paid to him;

• (b) in the case of a student to whom a student loan is not made in respect of an academic year, the maximum student loan that would be made to the student if—

• (i) he took all reasonable steps to obtain the maximum student loan he is able to acquire in respect of that year; and

• (ii) no deduction in that loan was made by virtue of the application of a means test.

• (4A) Where a student is treated as possessing a postgraduate ... loan under paragraph (3) in respect of an academic year, the amount of that loan to be taken into account as income shall be, subject to paragraph (5), a sum equal to 30 per cent. of the maximum postgraduate ... loan the student is able to acquire in respect of that academic year by taking reasonable steps to do so.

• (5) There shall be deducted from the amount of income taken into account under paragraph (4) or (4A)—

• (a) the sum of £303 per academic year in respect of travel costs; and

• (b) the sum of £390 per academic year towards the costs of books and equipment,

whether or not any such costs are incurred.

Disregard of contribution

137

Where the claimant or his partner is a student and, for the purposes of assessing a contribution to the student’s grant or student loan, the other partner’s income has been taken into account, an amount equal to that contribution shall be disregarded for the purposes of assessing that other partner’s income.

Income treated as capital

138

• (1) Any amount by way of a refund of tax deducted from a student’s income shall be treated as capital.

• (2) An amount paid from access funds as a single lump sum shall be treated as capital.

• (3) An amount paid from access funds as a single lump sum which is intended and used for an item other than food, ordinary clothing or footwear..., household fuel, rent for which housing benefit is payable or any housing costs to the extent that they are met under regulation 83(f) or 84(1)(g) (housing costs)..., of a single claimant or, as the case may be, of any other member of his family his partner, or which is used for an item other than any council tax or water charges for which that claimant or member is liable partner is liable shall be disregarded as capital but only for a period of 52 weeks from the date of the payment.

• (4) In paragraph (3) “ordinary clothing or footwear” means clothing or footwear for normal daily use, but it does not include—

• (a) school uniforms, or

• (b) clothing or footwear used solely for sporting activities.

Disregard of changes occurring during summer vacation

139

In calculating a student’s income the Secretary of State shall disregard any change in the standard maintenance grant occurring in the recognised summer vacation appropriate to the student’s course, if that vacation does not form part of his period of study, from the date on which the change occurred up to the end of that vacation.

PART IX — HARDSHIP

Meaning of “person in hardship"

140

• (1) In this Part of these Regulations, a “person in hardship" means for the purposes of regulation 141 a claimant, other than a claimant to whom paragraph (3) or (4) applies or a member of a joint-claim couple and regulation 3E does not apply, who—

• (a) is a single woman–

• (i) who is pregnant; and

• (ii) in respect of whom the Secretary of State is satisfied that, unless a jobseeker’s allowance is paid to her, she will suffer hardship; or

• (b) is a single person who is responsible for a child or young person, and the Secretary of State is satisfied that, unless a jobseeker’s allowance is paid to the single person, the child or young person will suffer hardship; or

• (c) is a member of a couple, where–

• (i) at least one member of the couple is a woman who is pregnant; and

• (ii) the Secretary of State is satisfied that, unless a jobseeker’s allowance is paid, the woman will suffer hardship; or

• (d) is a member of a polygamous marriage and–

• (i) one member of the marriage is pregnant; and

• (ii) the Secretary of State is satisfied that, unless a jobseeker’s allowance is paid, that woman will suffer hardship; or

• (e) is a member of a couple or of a polygamous marriage where–

• (i) one or both members of the couple, or one or more members of the polygamous marriage, are responsible for a child or young person; and

• (ii) the Secretary of State is satisfied that, unless a jobseeker’s allowance is paid, the child or young person will suffer hardship; or

• (f) has an award of a jobseeker’s allowance which includes or would, if a claim for a jobseeker’s allowance from him were to succeed have included, in his applicable amount a disability premium and—

• (i) where the person has an award, a jobseeker’s allowance is not payable ... because it is suspended or the award is reduced in accordance with section 19 or 19A or regulation 69B; and

• (ii) the Secretary of State is satisfied that, unless a jobseeker’s allowance is paid, the person who would satisfy the conditions of entitlement to that premium would suffer hardship; or

• (g) suffers, or whose partner suffers from a chronic medical condition which results in functional capacity being limited or restricted by physical or mental impairment and the Secretary of State is satisfied that—

• (i) the suffering has already lasted, or is likely to last, for not less than 26 weeks; and

• (ii) unless a jobseeker’s allowance is paid to the claimant the probability is that the health of the person suffering would, within 2 weeks of the Secretary of State making his decision, decline further than that of a normally healthy adult and that person would suffer hardship; or

• (h) does, or whose partner does, or in the case of a claimant who is married to more than one person under a law which permits polygamy, at least one of those persons do, devote a considerable portion of each week to caring for another person who—

• (i) is in receipt of an attendance allowance , pension age disability payment , the care component of disability living allowance at one of the two higher rates prescribed under section 72(4) of the Benefits Act , the care component of child disability payment at the highest or middle rate in accordance with regulation 11(5) of the DACYP Regulations , the care component of Scottish adult disability living allowance at the highest or middle rate in accordance with regulation 6(4) of the Disability Assistance (Scottish Adult Disability Living Allowance) Regulations 2025 , the daily living component of personal independence payment at the standard or enhanced rate in accordance with section 78 of the 2012 Act , the daily living component of adult disability payment at the standard or enhanced rate in accordance with regulation 5 of the Disability Assistance for Working Age People (Scotland) Regulations 2022 or armed forces independence payment; or

• (ii) has claimed either attendance allowance , pension age disability payment , disability living allowance , Scottish adult disability living allowance , child disability payment , armed forces independence payment , personal independence payment or adult disability payment, but only for so long as the claim has not been determined, or for, 26 weeks from the date of claiming, whichever is the earlier; or,

• (iii) has claimed either attendance allowance , pension age disability payment or disability living allowance and has an award of either attendance allowance , pension age disability payment or the care component of disability living allowance at one of the two higher rates prescribed under section 72(4) of the Benefits Act for a period commencing after the date on which that claim was made, or

• (iiia) has claimed child disability payment and has an award of the care component of child disability payment at the highest or middle rate in accordance with regulation 11(5) of the DACYP Regulations for a period commencing after the date on which the claim was made; or

• (iv) has claimed personal independence payment and has an award of the daily living component of personal independence payment at the standard or enhanced rate in accordance with section 78 of the 2012 Act for a period commencing after the date on which that claim was made; or

• (iva) has claimed adult disability payment and has an award of the daily living component of adult disability payment at the standard or enhanced rate in accordance with regulation 5 of the Disability Assistance for Working Age People (Scotland) Regulations 2022 for a period commencing after the date on which that claim was made; or

• (v) has claimed and has an award of armed forces independence payment for a period commencing after the date on which that claim was made,

and the Secretary of State is satisfied, after taking account of the factors set out in paragraph (5) in so far as they are appropriate to the particular circumstances of the case, that the person providing the care will not be able to continue doing so unless a jobseeker’s allowance is paid to the claimant; or

• (i) is a person or is the partner of a person to whom section 16 applies by virtue of a direction issued by the Secretary of State, except where the person to whom the direction applies does not satisfy the requirements of section 1(2)(a) to (c); or

• (j) is a person–

• (i) to whom section 3(1)(f)(iii) (persons under the age of 18) applies, or is the partner of such a person; and

• (ii) in respect of whom the Secretary of State is satisfied that the person will, unless a jobseeker’s allowance is paid, suffer hardship; or.

• (k) is a person

• (i) who, pursuant to the Children Act 1989 or the Social Services and Well-being (Wales) Act 2014, was being looked after by a local authority;

• (ii) with whom the local authority had a duty, pursuant to either of those Acts, to take reasonable steps to keep in touch; or

• (iii) who, pursuant to either of those Acts, qualified for advice and assistance from a local authority,

but in respect of whom (i), (ii) or, as the case may be, (iii) above had not applied for a period of three years or less as at the date on which he complies with the requirements of regulation 143; and

• (iv) as at the date on which he complies with the requirements of regulation 143, is under the age of 21; or

• (l) is a person who is homeless within the meaning of Part 7 of the Housing Act 1996, Part 2 of the Housing (Wales) Act 2014 or Part 2 of the Housing (Scotland) Act 1987, as the case may be.

• (2) Except in a case to which paragraph (3) ... applies or where the person in hardship is a member of a joint-claim couple and regulation 3E does not apply a “person in hardship" means for the purposes of regulation 142, a claimant where the Secretary of State is satisfied that he or his partner will suffer hardship unless a jobseeker’s allowance is paid to him.

• (3) In paragraphs (1) and (2) a “person in hardship" does not include a claimant who is entitled, or whose partner is entitled, to income support or an income-related employment and support allowance or a claimant or a partner of a claimant who falls within a category of persons prescribed for the purpose of section 124(1)(e) of the Benefits Act.