SCHEDULES

SCHEDULE 1Employment and support allowance: additional conditions

Section 1

Part 1F7...

Annotations:
Amendments (Textual)
F7

Sch. 1 Pt. 1 heading repealed (29.4.2013 for specified purposes) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 14 Pt. 1; S.I. 2013/983, arts. 4(1)(c), 5, Sch. 1 (with arts. 6, 9(1), 22, Sch. 4) (as amended: (1.7.2013) by S.I. 2013/1511; (29.10.2013) by S.I. 2013/2657; (16.6.2014) by S.I. 2014/1452; (30.6.2014) by S.I. 2014/1661; (28.7.2014) by S.I. 2014/1923; (15.9.2014) by S.I. 2014/2321; (17.11.2014) by S.I. 2014/3067; (21.11.2014) by S.I. 2014/3094; (19.1.2015) by S.I. 2015/32 (as amended (10.2.2015) by S.I. 2015/101); (10.3.2015) by S.I. 2015/634; (20.7.2015) by S.I. 2015/1537; (23.11.2015) by S.I. 2015/1930; (6.4.2017) by S.I. 2017/483; (2.2.2018) by S.I. 2018/138; (16.1.2019) by S.I. 2019/10; and (31.1.2019) by S.I. 2019/167)

Conditions relating to national insurance

1

I61

The first condition is that—

a

the claimant has actually paid Class 1 or Class 2 contributions in respect of one of the last F3two complete tax years (“the base tax year”) before the beginning of the relevant benefit year,

b

those contributions must have been paid before the relevant benefit week, and

F4c

the claimant's earnings determined in accordance with sub-paragraph (2) must be not less than the base tax year's lower earnings limit multiplied by 26.

I6F22

The earnings referred to in sub-paragraph (1)(c) are the aggregate of—

a

the claimant's relevant earnings for the base tax year upon which primary Class 1 contributions have been paid or treated as paid, and

b

the claimant's earnings factors derived from Class 2 contributions.

I63

Regulations may make provision for the purposes of sub-paragraph (2)(a) for determining the claimant's relevant earnings for the base tax year.

3A

Regulations under sub-paragraph (3) may, in particular, make provision—

a

for making that determination by reference to the amount of a person's earnings for periods comprised in the base tax year;

b

for determining the amount of a person's earnings for any such period by—

i

first determining the amount of the earnings for the period in accordance with regulations made for the purposes of section 3(2) of the Contributions and Benefits Act, and

ii

then disregarding so much of the amount found in accordance with sub-paragraph (i) as exceeded the base tax year's lower earnings limit (or the prescribed equivalent).

I1I74

Regulations may—

a

provide for the condition set out in sub-paragraph (1) to be taken to be satisfied in the case of F5persons—

i

who have been entitled to any prescribed description of benefit during any prescribed period or at any prescribed time F6, or

ii

who satisfy other prescribed conditions

b

with a view to securing any relaxation of the requirements of that condition in relation to persons who have been so entitled, provide for that condition to apply in relation to them subject to prescribed modifications.

I65

In sub-paragraph (4), “benefit” means—

F10za

universal credit,

a

any benefit within the meaning of section 122(1) of the Contributions and Benefits Act,

b

any benefit under Parts 7 to 12 of that Act,

c

credits under regulations under section 22(5) of that Act,

F1ca

credits under section 23A of that Act,

d

F9a contributory allowanceF9an employment and support allowance, and

e

working tax credit.

I82

1

The second condition is that—

a

the claimant has in respect of the last two complete tax years before the beginning of the relevant benefit year either paid or been credited with Class 1 or Class 2 contributions or been credited with earnings, and

b

the earnings factor derived as mentioned in sub-paragraph (2) must be not less in each of those years than the year's lower earnings limit multiplied by 50.

2

The earnings factor referred to in sub-paragraph (1)(b) is the aggregate of the claimant's earnings factors derived—

a

from so much of his earnings as did not exceed the upper earnings limit for the year and upon which primary Class 1 contributions have been paid or treated as paid or from earnings credited, and

b

from Class 2 contributions.

3

Where primary Class 1 contributions have been paid or treated as paid on any part of a person's earnings, sub-paragraph (2)(a) shall have effect as if such contributions had been paid or treated as paid on so much of the earnings as did not exceed the upper earnings limit for the year.

3

I91

For the purposes of paragraphs 1 and 2—

a

“benefit year” means a period which is a benefit year for the purposes of Part 2 of the Contributions and Benefits Act or such other period as may be prescribed for the purposes of this Part of this Schedule;

b

“Class 1 contributions”, “Class 2 contributions” and “primary Class 1 contributions” have the same meaning as in the Contributions and Benefits Act (see section 1 of that Act);

c

“earnings” shall be construed in accordance with sections 3, 4 and 112 of that Act;

d

“earnings factor” shall be construed in accordance with sections 22 and 23 of that Act;

e

“lower earnings limit” and “upper earnings limit” shall be construed in accordance with section 5 of that Act and references to the lower or upper earnings limit of a tax year are to whatever is (or was) the limit in force for that year under that section;

C1C5f

“relevant benefit year” is the benefit year which includes the beginning of the period of limited capability for work which includes the relevant benefit week;

g

“tax year” means the 12 months beginning with 6th April in any year.

I2I102

Regulations may provide for sub-paragraph (1)(f) to have effect in prescribed circumstances with prescribed modifications in the case of—

a

a person who has previously ceased to be entitled to F11a contributory allowanceF11an employment and support allowance;

b

a person who has made a claim for an employment and support allowance in connection with which he failed to satisfy one or both of the conditions in paragraphs 1 and 2.

Condition relating to youth

4

1

The third condition is that —

I3I11C2C6a

the claimant was under 20 or, in prescribed cases, 25 when the relevant period of limited capability for work began,

I12b

he is not receiving full-time education,

I3I11c

he satisfies such conditions as may be prescribed with respect to residence or presence in Great Britain (or both), and

I12d

there has been a day in the relevant period of limited capability for work—

i

which was a day on which he was aged at least 16, and

ii

which was preceded by a period of 196 consecutive days throughout which he had limited capability for work.

I122

In sub-paragraph (1), “relevant period of limited capability for work” means the period of limited capability for work which includes the relevant benefit week.

I3I113

Regulations may prescribe circumstances in which sub-paragraph (1)(a) does not apply in the case of a person who has previously ceased to be entitled to an employment and support allowance to which he was entitled by virtue of satisfying the condition set out in sub-paragraph (1).

I3I114

Regulations may make provision about when, for the purposes of sub-paragraph (1)(b), a person is, or is not, to be treated as receiving full-time education.

“Relevant benefit week”

I135

In this Part of this Schedule, “relevant benefit week” means the week in relation to which the question of entitlement to an employment and support allowance is being considered.

F8Part 2Income-related allowance

Annotations:
Amendments (Textual)
F8

Sch. 1 Pt. 2 repealed (29.4.2013 for specified purposes) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 14 Pt. 1; S.I. 2013/983, arts. 4(1)(c), 5, Sch. 1 (with arts. 6, 9(1), 22, Sch. 4) (as amended: (1.7.2013) by S.I. 2013/1511; (29.10.2013) by S.I. 2013/2657; (16.6.2014) by S.I. 2014/1452; (30.6.2014) by S.I. 2014/1661; (28.7.2014) by S.I. 2014/1923; (15.9.2014) by S.I. 2014/2321; (17.11.2014) by S.I. 2014/3067; (21.11.2014) by S.I. 2014/3094; (19.1.2015) by S.I. 2015/32 (as amended (10.2.2015) by S.I. 2015/101); (10.3.2015) by S.I. 2015/634; (20.7.2015) by S.I. 2015/1537; (23.11.2015) by S.I. 2015/1930; (6.4.2017) by S.I. 2017/483; (2.2.2018) by S.I. 2018/138; (16.1.2019) by S.I. 2019/10; and (31.1.2019) by S.I. 2019/167)

6

1

The conditions are that the claimant—

I14a

has an income which does not exceed the applicable amount or has no income;

I4I15b

does not have capital which, or a prescribed part of which, exceeds the prescribed amount;

I14c

is not entitled to state pension credit;

I14d

is not a member of a couple the other member of which is entitled to an income-related allowance, state pension credit, income support or an income-based jobseeker's allowance;

I14e

is not engaged in remunerative work;

I14f

is not a member of a couple the other member of which is engaged in remunerative work;

I14C4C3g

is not receiving education.

I4I152

Where the claimant is a member of a couple, the income and capital of the other member of the couple shall, except in prescribed circumstances, be treated for the purpose of this paragraph as income and capital of the claimant.

I4I153

Regulations may prescribe circumstances in which, for the purposes of sub-paragraph (1)(e) and (f)—

a

a person who is not engaged in remunerative work is to be treated as engaged in remunerative work, or

b

a person who is engaged in remunerative work is to be treated as not engaged in remunerative work.

I4I154

Regulations may—

a

make provision about when, for the purposes of sub-paragraph (1)(g), a person is, or is not, to be treated as receiving education;

b

prescribe circumstances in which sub-paragraph (1)(g) does not apply.

I5I145

In this paragraph—

  • “applicable amount” means the amount which, in the claimant's case, is the applicable amount for the purposes of section 4(1);

  • “couple” means—

    1. a

      a man and woman who are married to each other and are members of the same household;

    2. b

      a man and woman who are not married to each other, but are living together as husband and wife otherwise than in prescribed circumstances;

    3. c

      two people of the same sex who are civil partners of each other and are members of the same household; or

    4. d

      two people of the same sex who are not civil partners of each other, but are living together as if they were civil partners otherwise than in prescribed circumstances;

  • “education” has such meaning as may be prescribed;

  • “income-based jobseeker's allowance” has the same meaning as in the Jobseekers Act 1995 (c. 18);

  • “remunerative work” has such meaning as may be prescribed.

I146

For the purposes of this paragraph, two people of the same sex are to be regarded as living together as if they were civil partners if, but only if, they would be regarded as living together as husband and wife were they instead two people of the opposite sex.

I4I157

Regulations may make provision for the preceding provisions of this paragraph to have effect with prescribed modifications in a case where—

a

the claimant is a husband or wife by virtue of a marriage entered into under a law which permits polygamy,

b

either party to the marriage has for the time being any spouse additional to the other party, and

c

the claimant, the other party to the marriage and the additional spouse are members of the same household.

I4I158

Regulations may make provision for the purposes of this paragraph as to circumstances in which people are to be treated as being or not being members of the same household.