Regulations 36(2), 38(2) and 44(6)

SCHEDULE 8Sums to be disregarded in the Calculation of Earnings

1.  In the case of a claimant who has been engaged in remunerative work as an employed earner—

(a)any earnings paid or due to be paid on termination of his employment—

(i)by way of retirement but only if on retirement he is entitled to a retirement pension under the principal Act, or would be so entitled if he satisfied the contribution conditions,

(ii)otherwise than by retirement except earnings to which regulation 35(1)(b) to (e), (g) to (i) (earnings of employed earners) applies;

(b)any earnings paid or due to be paid on the interruption of his employment except earnings to which regulation 35(1)(d) and (e) applies; but this sub-paragraph shall not apply where the claimant has been suspended from his employment.

2.  In the case of a claimant who has been engaged in part-time employment as an employed earner immediately before he made a claim for income support, any earnings paid on termination or interruption of that employment except any payment to which regulation 35(1)(e) applies; but this paragraph shall not apply where the claimant has been suspended from his employment.

3.  In the case of a claimant who has been engaged in remunerative work or part-time employment as a self-employed earner and who has ceased to be so employed, from the date of the cessation of his employment any earnings derived from that employment except earnings to which regulation 30(2) (royalties etc) applies.

4.—(1) If the calculation of the claimant's applicable amount—

(a)includes, or but for his being an in-patient or in accommodation in a home for persons in need, nursing home, hostel, board and lodging accommodation or in residential accommodation would include, an amount by way of a disability premium under Schedule 2 (applicable amounts); or

(b)(i)includes, or but for his being an in-patient or in accommodation in a home for persons in need, nursing home, hostel, board and lodging accommodation or in residential accommodation would include, an amount by way of the higher pensioner premium under Schedule 2, and

(ii)he or his partner has attained the age of 60 and immediately before attaining that age either was engaged in employment and the claimant was or but for his being an in-patient or in accommodation in a home for persons in need, nursing home, hostel, board and lodging accommodation or in residential accommodation would have been, entitled under head (a) to a disregard of £15, and

(iii)either he or his partner has continued in part-time employment,

£15; but, notwithstanding regulation 23 (calculation of income and capital of members of claimant's family and of a polygamous marriage), if this paragraph applies to a claimant it shall not apply to his partner except where, and to the extent that, the earnings of the claimant which are to be disregarded under this paragraph are less than £15.

(2) For the purposes of sub-paragraph (1)(b)(iii) no account shall be taken of any period not exceeding 8 consecutive weeks occurring on or after the date on which the claimant or his partner attained the age of 60 during which either ceased to be engaged in employment or the claimant ceased to be entitled to income support.

5.  If an amount by way of a lone parent premium under Schedule 2 is, or but for the pensioner premium being applicable to him or for his accommodation in a home for persons in need, nursing home, hostel, board and lodging accommodation or in residential accommodation would be, included in the calculation of the claimant's applicable amount, £15.

6.—(1) In a case where paragraph 4 does not apply, if the claimant is one of a couple and both members of that couple are under age 60 and one of the couple has for a continuous period of 2 years been in receipt of income support in respect of a couple (whether or not the same couple) and during that period—

(a)neither member has been engaged in remunerative work; or

(b)neither member has been receiving full-time education,

for a period exceeding 8 consecutive weeks, £15; but, notwithstanding regulation 23, if this paragraph applies to one of the couple it shall not apply to the other except where, and to the extent that, the earnings of the one which are to be disregarded under this paragraph are less than £15.

(2) For the purposes of this paragraph—

(a)in determining whether a period is continuous no account shall be taken of any period not exceeding 8 weeks during which the claimant ceased to be a member of a couple or to be in receipt of income support;

(b)in determining whether one of a couple has been in receipt of income support for a continuous period of 2 years; consecutive periods during which either member was in receipt of income support shall be treated as periods during which one of that couple had been so in receipt.

(3) For the purposes of this paragraph—

(a)any period beginning before the commencement of these regulations during which the claimant or the other member of the couple was in receipt of supplementary benefit in respect of a couple, and immediately preceding the receipt of income support, is to be taken into account as if it were a period of income support except where during that period either the claimant or the other member was engaged in remunerative work or receiving relevant education within the meaning of Article 9 of the Supplementary Benefits (Northern Ireland) Order 1977(1);

(b)any period during which the claimant or the other member of the couple is in receipt of income support under the Social Security Act 1986(2) or was in receipt of supplementary benefit under the Supplementary Benefits Act 1976(3) and immediately preceding the receipt of income support is to be taken into account as if it were a period of income support,

and in determining whether any such period is continuous sub-paragraph (2) hereof shall apply by analogy.

7.—(1) In a case to which none of paragraphs 4 to 6 applies to the claimant, £15 of earnings derived from one or more employments as—

(a)a part-time fireman in a fire brigade maintained in pursuance of the Fire Services (Northern Ireland) Order 1984(4);

(b)an auxiliary coastguard in respect of coast rescue activities;

(c)a person engaged part-time in the manning or launching of a lifeboat;

(d)a member of any territorial or reserve force prescribed in Part I of Schedule 3 to the Social Security (Contributions) Regulations 1979(5);

(e)a member of the Ulster Defence Regiment who is neither serving also as a member of any of the regular naval, military or air forces of the Crown, nor on the full-time staff of that regiment;

(f)a part-time member of the Royal Ulster Constabulary Reserve appointed under section 9(1) of the Police Act (Northern Ireland) 1970(6),

but, notwithstanding regulation 23, if this paragraph applies to a claimant it shall not apply to his partner except to the extent specified in sub-paragraph (2).

(2) If the claimant's partner is engaged in employment—

(a)specified in sub-paragraph (1) so much of his earnings as would not in aggregate with the amount of the claimant's earnings disregarded under this paragraph exceed £15;

(b)other than one specified in sub-paragraph (1) so much of his earnings from that employment up to £5 as would not in aggregate with the claimant's earnings disregarded under this paragraph exceed £15.

8.  Where the claimant is engaged in one or more employments specified in paragraph 7(1) but his earnings derived from such employments are less than £15 in any week and he is also engaged in any other part-time employment so much of his earnings from that other employment up to £5 as would not in aggregate with the amount of his earnings disregarded under paragraph 7 exceed £15.

9.  In a case to which none of paragraphs 4 to 8 applies to the claimant, £5.

10.  Notwithstanding paragraphs 6, 7 or 9, where 2 or more payments of the same kind and from the same source are to be taken into account in the same benefit week, there shall be disregarded from each payment the sum specified in that paragraph; but this paragraph shall only apply in the case of a payment which it has not been practicable to treat under regulation 31(1)(b) (date on which income treated as paid) as paid on the first day of the benefit week in which it is due to be paid.

11.  Any earnings derived from employment which are payable in a country outside the United Kingdom for such period during which there is a prohibition against the transfer to the United Kingdom of those earnings.

12.  Where a payment of earnings is made in a currency other than sterling, any banking charge or commission payable in converting that payment into sterling.

13.  Any earnings which are due to be paid before the date of claim and which would otherwise fall to be taken into account in the same benefit week as a payment of the same kind and from the same source.

14.  Any earnings of a child or young person except earnings to which paragraph 15 applies.

15.  In the case of earnings of a person treated as receiving relevant education under regulation 12(b) (relevant education) and who is engaged in remunerative work, if—

(a)an amount by way of a disabled child premium under Schedule 2 (applicable amounts) is, or but for his accommodation in a home for persons in need, nursing home, hostel or board and lodging accommodation would be, included in the calculation of his applicable amount and his earning capacity is not, by reason of his disability, less than 75 per cent. of that which he would, but for that disability normally be expected to earn, £15;

(b)in any other case, £5.

16.  In this Schedule “part-time employment” means employment in which the person is not to be treated as engaged in remunerative work under regulation 5 or 6 (persons treated, or not treated, as engaged in remunerative work).