Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Social Security (Miscellaneous Amendments) (No. 2) Regulations 2005.

(2) Subject to paragraphs (3) to (6), these Regulations shall come into force on 3rd October 2005.

(3) The following provisions shall come into force on 30th December 2005—

(a)regulation 2(8)(b) and (c) and (9);

(b)regulation 3(8)(b) and (c) and (9);

(c)regulation 4(5)(c) and (d) and (6);

(d)regulation 5(5)(c) and (d) and (6).

(4) Regulations 4(4) and 5(4) shall come into force on 1st April 2006.

(5) The following provisions shall come into force on 6th April 2006—

(a)regulation 2(3)(a) to (d) and (5);

(b)regulation 3(3)(a) to (e) and (5);

(c)regulation 4(2) and (3);

(d)regulation 5(2) and (3).

(6) The following provisions shall come into force on the first day of the first benefit week commencing on or after 10th April 2006—

(a)regulation 2(2), (4), (6) and (7);

(b)regulation 3(2), (4), (6) and (7).

(7) In paragraph (6) the term “benefit week”, so far as it relates to regulation 2, has the same meaning as in regulation 2(1) of the Income Support Regulations and, so far as it relates to regulation 3, has the same meaning as in regulation 1(3) of the Jobseeker's Allowance Regulations.

(8) In these Regulations—

“the Council Tax Benefit Regulations” means the Council Tax Benefit (General) Regulations 1992 M6;

“the Housing Benefit Regulations” means the Housing Benefit (General) Regulations 1987 M7;

“the Income Support Regulations” means the Income Support (General) Regulations 1987 M8;

“the Jobseeker's Allowance Regulations” means the Jobseeker's Allowance Regulations 1996 M9;

“the State Pension Credit Regulations” means the State Pension Credit Regulations 2002 M10.

Amendment of the Income Support Regulations

2.—(1) The Income Support Regulations are amended as follows.

(2) In regulation 41(1) (capital treated as income) M11, omit “£8,000 or, in a case where regulation 45(aa) applies, £12,000 or, in a case where regulation 45(b) applies,”.

(3) In regulation 42 (notional income)—

(a)in paragraph (2)(g) M12, after “personal pension scheme” insert “ , occupational pension scheme ”;

(b)for paragraph (2A) M13 substitute—

“((2ZA)) A claimant who has attained the age of 60 shall be treated as possessing—

(a)the amount of any income from an occupational pension scheme, personal pension scheme or retirement annuity contract—

(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.

(2A) Where a person, aged not less than 60, is a person entitled to money purchase benefits under an occupational pension scheme or a personal pension scheme, or is a party to, or a person deriving entitlement to a pension under, a retirement annuity contract, and—

(a)in the case of an occupational pension scheme or personal pension scheme, he fails to purchase an annuity with the funds available in that scheme where—

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

(ii)he 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; or

(b)in the case of a retirement annuity contract, he fails to purchase an annuity with the funds available under that contract,

the amount of any income foregone shall be treated as possessed by him, but only from the date on which it could be expected to be acquired were an application for it to be made.”;

(c)in paragraph (2C)—

(i)for “relevant personal pension scheme” substitute “ relevant occupational or personal pension scheme ”;

(ii)for “under a personal pension scheme” substitute “ under a scheme ”;

(d)after paragraph (2C) insert—

“(2CA) In paragraph (2A), “money purchase benefits” has the meaning it has in the Pension Schemes Act 1993 M14.”;

(e)at the end of paragraph (4) M15, after “any payment in kind” insert “ to the third party ”.

(4) For regulation 45 (capital limit) M16 substitute—

“Capital limit

45.  For the purposes of section 134(1) of the Contributions and Benefits Act as it applies to income support (no entitlement to benefit if capital exceeds prescribed amount), the prescribed amount is £16,000.”.

(5) In regulation 51 (notional capital), after paragraph (2)(d) M17 insert—

“(da)an occupational pension scheme where the claimant is aged under 60; or”.

(6) In regulation 53 (calculation of tariff income from capital) M18—

(a)in paragraph (1)—

(i)omit “(1ZA) or”,

(ii)for “£3,000” (in both places) substitute “ £6,000 ”, and

(iii)for “£8,000” substitute “ £16,000 ”;

(b)omit paragraph (1ZA);

(c)in paragraph (1B), omit “and regulation 45”;

(d)in paragraphs (2) and (3), omit “, (1ZA)”.

(7) In Schedule 3 (housing costs) M19, in paragraph 14(4)(a) and (c) for “£8,000” substitute “ £16,000 ”.

(8) In Schedule 9 (sums to be disregarded in the calculation of income other than earnings)—

(a)after paragraph 21(3) M20 add—

“(4) The reference in sub-paragraph (1) to “income in kind” does not include a payment to a third party made in respect of the claimant which is used by the third party to provide benefits in kind to the claimant.”.

(b)in paragraph 25(1)(a) M21, for “in accordance with regulations made pursuant to section 57A of the Adoption Act 1976 (permitted allowances) or paragraph 3 of Schedule 4 to the Adoption and Children Act 2002 or” substitute “ pursuant to regulations under section 2(6)(b), 3 or 4 of the Adoption and Children Act 2002 M22 or in accordance ”;

(c)for paragraph 25(1A) M23 substitute—

“(1A) Any payment, other than a payment to which sub-paragraph (1)(a) applies, made to the claimant pursuant to regulations under section 2(6)(b), 3 or 4 of the Adoption and Children Act 2002.”.

(9) In Schedule 10 (capital to be disregarded), for paragraph 68 M24 substitute—

“68.  Any payment made to the claimant pursuant to regulations under section 2(6)(b), 3 or 4 of the Adoption and Children Act 2002.”.

Amendment of the Jobseeker's Allowance Regulations

3.—(1) The Jobseeker's Allowance Regulations are amended as follows.

(2) In regulation 104(1) (capital treated as income) M25, omit “£8,000 or, in a case where regulation 107(aa) applies, £12,000 or, in a case where regulation 107(b) applies,”.

(3) In regulation 105 (notional income)—

(a)in paragraph (2)(g), after “personal pension scheme” insert “ or occupational pension scheme ”;

(b)before paragraph (3) insert—

“(2B) A claimant who has attained the age of 60 shall be treated as possessing—

(a)the amount of any income from an occupational pension scheme or personal pension scheme—

(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.”;

(c)in paragraph (3)—

(i)omit “, is a member of, or a person deriving entitlement to a pension under, a personal pension scheme, and”;

(ii)for sub-paragraph (a) substitute—

“(a)is a person entitled to money purchase benefits under an occupational pension scheme, or under a personal pension scheme other than one referred to in sub-paragraph (b), and fails to purchase an annuity with the funds available in that scheme where—

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

(ii)he 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; or”;

(iii)in sub-paragraph (b)—

(aa)for “in the case of” substitute “ is a party to, or a person deriving entitlement to a pension under, ”;

(bb)for “he” substitute “ and ”;

(d)in paragraph (5), for “personal pension scheme been held under a personal pension scheme” substitute “ occupational or personal pension scheme been held under a scheme ”;

(e)after paragraph (5) insert—

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

(f)at the end of paragraph (10) M26, after “any payment in kind” insert “ to the third party ”.

(4) For regulation 107 (capital limit) M27 substitute—

“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.”.

(5) In regulation 113 (notional capital), after paragraph (2)(d) insert—

“(da)an occupational pension scheme where the claimant is aged under 60; or”.

(6) In regulation 116 (calculation of tariff income from capital) M28—

(a)in paragraph (1)—

(i)omit “(1ZA) or”,

(ii)for “£3,000” (in both places) substitute “ £6,000 ”, and

(iii)for “£8,000” substitute “ £16,000 ”;

(b)omit paragraph (1ZA);

(c)in paragraphs (2) and (3) omit “, (1ZA)”.

(7) In Schedule 2 (housing costs), in paragraph 13(5)(a) and (c) for “£8,000” substitute “ £16,000 ”.

(8) In Schedule 7 (sums to be disregarded in the calculation of income other than earnings)—

(a)after paragraph 22(3) M29 add—

“(4) The reference in sub-paragraph (1) to “income in kind” does not include a payment to a third party made in respect of the claimant which is used by the third party to provide benefits in kind to the claimant.”;

(b)in paragraph 26(1)(a) M30, for “in accordance with regulations made pursuant to section 57A of the Adoption Act 1976 (permitted allowances) or paragraph 3 of Schedule 4 to the Adoption and Children Act 2002 or” substitute “ pursuant to regulations under section 2(6)(b), 3 or 4 of the Adoption and Children Act 2002 or in accordance ”;

(c)for paragraph 26(1A) substitute—

“(1A) Any payment, other than a payment to which sub-paragraph (1)(a) applies, made to the claimant pursuant to regulations under section 2(6)(b), 3 or 4 of the Adoption and Children Act 2002.”.

(9) In Schedule 8 (capital to be disregarded) M31, for paragraph 61 substitute—

“61.  Any payment made to the claimant pursuant to regulations under section 2(6)(b), 3 or 4 of the Adoption and Children Act 2002.”.

Amendment of the Council Tax Benefit Regulations

4.—(1)  The Council Tax Benefit Regulations are amended as follows M32 .

[F1(2)  In regulation 26(2)(c) (notional income), after “personal pension scheme” insert “ , occupational pension scheme ” .

(3)  In regulation 34(2)(d) (notional capital) M33 , after “personal pension scheme” insert “ , occupational pension scheme ” .

(4)  For regulation 37(1) (calculation of tariff income from capital) M34 substitute—

“(1) 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.”].

(5) [F2In Schedule 4 (sums to be disregarded in the calculation of income other than earnings)—

(a)the existing provisions of paragraph 22 shall become sub-paragraph (1) of that paragraph;

(b)after that sub-paragraph insert—

“(2)  The reference in sub-paragraph (1) to “ income in kind ” does not include a payment to a third party made in respect of the claimant which is used by the third party to provide benefits in kind to the claimant. ”;

(c) in paragraph 24(1)(a) M35 , for “in accordance with regulations made pursuant to section 57A of the Adoption Act 1976 (permitted allowances) or paragraph 3 of Schedule 4 to the Adoption and Children Act 2002 or” substitute “ pursuant to regulations under section 2(6)(b), 3 or 4 of the Adoption and Children Act 2002 M36 or in accordance ” ;

(d)for paragraph 24(1A) substitute—

“(1A) Any payment, other than a payment to which sub-paragraph (1)(a) applies, made to the claimant pursuant to regulations under section 2(6)(b), 3 or 4 of the Adoption and Children Act 2002.”].

(6) [F2In Schedule 5 (capital to be disregarded), for paragraph 70 substitute—

“70.  Any payment made to the claimant pursuant to regulations under section 2(6)(b), 3 or 4 of the Adoption and Children Act 2002.”.]

[F3Amendment of the Council Tax Benefit Regulations 2006

4A.—(1) The Council Tax Benefit Regulations 2006 are amended as follows.

(2)  In regulation 32(2)(c) (notional income), after “personal pension scheme” insert “ , occupational pension scheme ” .

(3)  In regulation 39(2)(d) (notional capital), after “personal pension scheme” insert “ , occupational pension scheme ” .

(4) For regulation 42(1) (calculation of tariff income from capital) substitute—

“(1) 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.”]

Amendment of the Housing Benefit Regulations

5.—(1) The Housing Benefit Regulations are amended as follows M37.

(2) [F4In regulation 35(2)(c) (notional income), after “personal pension scheme” insert “ , occupational pension scheme ”.]

(3) [F4In regulation 43(2)(d) (notional capital) M38, after “personal pension scheme” insert “ , occupational pension scheme ”.]

(4) [F4In regulation 45 M39 (calculation of tariff income from capital)—

(a)in paragraph (1)—

(i)omit “(1ZA) or”, and

(ii)for “£3,000” (in both places) substitute “ £6,000 ”;

(b)omit paragraph (1ZA);

(c)in paragraphs (2) and (3) omit “, (1ZA)”.]

(5) [F5In Schedule 4 (sums to be disregarded in the calculation of income other than earnings)—

(a)the existing provisions of paragraph 21 M40 shall become sub-paragraph (1) of that paragraph;

(b)after that sub-paragraph insert—

“(2) The reference in sub-paragraph (1) to “income in kind” does not include a payment to a third party made in respect of the claimant which is used by the third party to provide benefits in kind to the claimant.”;

(c)in paragraph 23(1)(a) M41, for “in accordance with regulations made pursuant to section 57A of the Adoption Act 1976 (permitted allowances) or paragraph 3 of Schedule 4 to the Adoption and Children Act 2002 or” substitute “ pursuant to regulations under section 2(6)(b), 3 or 4 of the Adoption and Children Act 2002 or in accordance ”;

(d)for paragraph 23(1A) M42 substitute—

“(1A) Any payment, other than a payment to which sub-paragraph (1)(a) applies, made to the claimant pursuant to regulations under section 2(6)(b), 3 or 4 of the Adoption and Children Act 2002.”.]

(6) [F5In Schedule 5 (capital to be disregarded), for paragraph 70 M43 substitute—

“70.  Any payment made to the claimant pursuant to regulations under section 2(6)(b), 3 or 4 of the Adoption and Children Act 2002.”.]

[F6Amendment of the Housing Benefit Regulations 2006

5A.—(1) The Housing Benefit Regulations 2006 are amended as follows.

(2) In regulation 42(2)(c) (notional income), after “personal pension scheme” insert “ , occupational pension scheme ”.

(3) In regulation 49(2)(d) (notional capital), after “personal pension scheme” insert “ , occupational pension scheme ”.

(4) In regulation 52 (calculation of tariff income from capital)—

(a)in paragraph (1)—

(i)omit “(2) or”; and

(ii)for “£3,000” (in both places) substitute “ £6,000 ”;

(b)omit paragraph (2);

(c)in paragraphs (6) and (7), omit “, (2)”.]

Amendment of the State Pension Credit Regulations

6.—(1) The State Pension Credit Regulations are amended as follows.

(2) In regulation 1(2) (interpretation), after the definition of “benefit week” insert—

““board and lodging accommodation” means accommodation provided to a person or, if he is a member of a family, to him or any other member of his family, for a charge which is inclusive of—

(i)the provision of that accommodation, and

(ii)at least some cooked or prepared meals which both are cooked or prepared (by a person other than the person to whom the accommodation is provided or a member of his family) and are consumed in that accommodation or associated premises,

but not accommodation provided by a close relative of his or of his partner, or other than on a commercial basis;.”.

(3) In regulation 15(5)(e) (income for the purposes of the Act), omit “, and for this purpose “board and lodging accommodation” has the same meaning as in paragraph 8(2) of Schedule IV”.

(4) In regulation 17B(2)(za) M44 (earnings of self-employed earners), for “paragraph 8(2) of Schedule IV” substitute “ regulation 1(2) ”.

(5) In paragraph 8 of Schedule IV (amounts to be disregarded in the calculation of income other than earnings), omit sub-paragraph (2).

Explanatory Note

(This note is not part of the Regulations)