Gateshead Council Local Council Tax Support Scheme 2024/25

Chapter 1 - General

35 Calculation of income and capital: applicant's family and polygamous marriages

(1) The income and capital of—
(a) an applicant; and
(b) any partner of that applicant, is to be calculated in accordance with the provisions of this Part.

(2) The income and capital of any partner of the applicant is to be treated as income and capital of the applicant, and in this Part any reference to the applicant applies equally to any partner of that applicant.

(3) Except where there is an award of Universal Credit, where an applicant or the partner of an applicant is married polygamously to two or more members of his household—
(a) the applicant must be treated as possessing capital and income belonging to each such member; and
(b) the income and capital of that member is to be calculated in accordance with the following provisions of this Part in like manner as for the applicant.

36 Circumstances in which capital and income of non-dependant is to be treated as applicant's

(1) Sub-paragraph (2) applies where it appears to the authority that a non-dependant and an applicant have entered into arrangements in order to take advantage of this scheme and the non-dependant has more capital and income than the applicant.

(2) Except where—
(a) the applicant is a pensioner and is on guarantee credit, or
(b) the applicant is not a pensioner and is on income support, an income-based jobseeker's allowance or an income-related employment and support allowance, the authority will treat the applicant as possessing capital and income belonging to that non-dependant and, in such a case, any capital and income which the applicant does possess is to be disregarded.

(3) Where an applicant is treated as possessing capital and income belonging to a non-dependant under subparagraph (2) the capital and income of that non-dependant must be calculated in accordance with the following provisions of this Part in like manner as for the applicant and, except where the context otherwise requires, any reference to the "applicant" is to be construed for the purposes of this Part as if it were a reference to that non dependant.

Chapter 2 - Income

37 Applicant in receipt of guarantee credit

In the case of an applicant who is in receipt, or whose partner is in receipt, of a guarantee credit, the whole of his capital and income must be disregarded.

38 Calculation of applicant's income in savings credit only cases

(1) In determining the income and capital of an applicant who has, or whose partner has, an award of state pension credit comprising only the savings credit, subject to the following provisions of this paragraph, an authority must use the calculation or estimate of the applicant's or as the case may be, the applicant's partner's income and capital made by the Secretary of State for the purpose of determining the award of state pension credit.

(2) Where the calculation or estimate provided by the Secretary of State included the amount taken into account in that determination in respect of net income, the authority may only adjust that amount so far as necessary to take into account—
(a) the amount of any savings credit payable;
(b) in respect of any dependant children of the applicant, childcare charges taken into account under paragraph 59 (1)(c) (calculation of income on a weekly basis);
(c) the higher amount disregarded under this scheme in respect of—
(i) lone parent's earnings; or
(ii) payments of maintenance, whether under a court order or not, which is made or due to be made by—
(aa) the applicant's former partner, or the applicant's partner's former partner; or
(bb) the parent of a child or young person where that child or young person is a member of the applicant's family except where that parent is the applicant or the applicant's partner;
(d) any amount to be disregarded by virtue of paragraph 10(1) of Schedule 5 (sums disregarded from applicant's earnings: pensioners) to these Regulations;
(e) the income and capital of any partner of the applicant who is treated as a member of the applicant's household under paragraph 8, to the extent that it is not taken into account in determining the net
income of the person claiming state pension credit;
(f) paragraph 36 (circumstances in which income of a non-dependant is to be treated as applicant's), if the authority determines that that provision applies in the applicant's case;
(g) such further reduction (if any) as the authority thinks fit under section 13A(1)I of the 1992 Act;
(h) any amount to be disregarded by virtue of paragraph 6 of Schedule 6 (exempt work).
(i) any amount to be disregarded by virtue of paragraph 25 of Schedule 6.

(3) Paragraphs 41 to 48 (calculation of income: pensioners) and 59 to 64 (calculation of income: pensioners and persons who are not pensioners do not apply to the amount of the net income to be taken into account under sub-paragraph (1), but do apply (so far as relevant) for the purpose of determining any adjustments to that amount which the authority makes under sub-paragraph (2).

(4) If sub-paragraph (5) applies, the authority will calculate the applicant's capital in accordance with paragraphs 66, 68 to 71 and 73.

(5) This sub-paragraph applies if—
(a) the Secretary of State notifies the authority that the applicant's capital has been determined as being £16,000 or less;
(b) subsequent to that determination the applicant's capital rises to more than £16,000; and
(c) the increase occurs whilst there is in force an assessed income period within the meaning of sections 6 and 9 of the State Pension Credit Act 2002.

Chapter 3 - Calculation of income and capital: persons who have an award of Universal Credit or who have been assessed for Universal Credit

39

(1) In determining the income of an applicant—
(a) who has, or
(b) whose partner has, or
(c) who (jointly with his partner) has, an award of Universal Credit the authority will, subject to the following provisions of this paragraph, use the calculation or estimate of the income of the applicant, or the applicant's partner, or the applicant and his partner jointly (as the case may be), made by the Secretary of State for the purpose of determining that award before the application of any work allowances.

(2) The authority must adjust the amount of income referred to in sub-paragraph (1) by multiplying the amount by 12 and dividing the product by 52.

(3) The authority may only further adjust the amount of income provided by the Secretary of State to take into account—
(a) the amount of any Universal Credit payable determined in accordance with sub-paragraph (4), (5) and (6);
(b) paragraph 36 (income and capital of non-dependant to be treated as applicant's), if the authority determines that provision applies;
(c) where the Secretary of State has included earnings in the calculation of the award of Universal Credit the following amounts shall be disregarded from those earnings:
(i) £10 for a single Universal Credit claimant with no children
(ii) £15 for a couple who are Universal Credit claimants with no children
(iii) £37.10 for any claimant where:
a) the applicant, or if he has a partner, either the applicant or his partner, is a person to whom regulation 20(1)(c) of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 applies; or
(b) the applicant—
(i) is, or any partner of his is, aged at least 25 and is engaged in remunerative work for on average not less than 30 hours per week; or
(ii) if he is a member of a couple—
(aa) at least one member of that couple is engaged in remunerative work for on average not less than 16 hours per week; and
(bb) his family includes at least one child or young person,
(iii) is a lone parent who is engaged in remunerative work for on average not less than 16 hours per week; or
(iv) is, or if he has a partner, one of them is, engaged in remunerative work for on average not less than 16 hours per week and paragraph 5(1) above is satisfied in respect of that person.
(d) such further reduction as the authority thinks fit in accordance with this scheme or under section 13A (1)(C) of the 1992 Act (power of billing authority to reduce the amount of Council Tax payable).

(4) The amount of any Universal Credit payable means the amount the claimant would be entitled to, had there been no deductions from the award because of: court fines; fraud penalties; sanctions; advances; mortgage interest, rent, fuel, water, Council Tax or maintenance arrears; social fund or hardship repayments; overpayments of other benefits and housing benefit; Alternative Payments to a landlord. It may also include any transitional payment made to a Universal Credit claimant under managed migration to compensate for any loss of benefits as a result of the move onto Universal Credit.

(5) Where a Universal Credit claimant is subject to the Benefit Cap, the reduced amount of Universal Credit payable after the cap is applied will be used in the Local Council Tax Support calculation.

(6) Where a Universal Credit clamant has a childcare element included in their Universal Credit award, the amount of any such childcare element will be disregarded from any earnings used in the calculation of Local Council Tax Support up to a maximum of the value of the earnings.

(7) The amount of any Universal Credit award to be taken into account for the purposes of sub-paragraph (3)(a) is to be determined by multiplying the award of Universal Credit by 12 and dividing by 52.

(8) In determining the capital of an applicant—
(a) who has, or
(b) whose partner has, or
(c) who (jointly with his partner) has an award of Universal Credit, the authority will use the calculation or estimate of the capital of the applicant, the applicant's partner or the applicant and his partner jointly (as the case may be) made by the Secretary of State for the purpose of determining that award.

(9) Where a claimant has had an award of Universal Credit assessed, the effective date of any change to that Universal Credit award will be the start of the assessment period.

(10) Where Council Tax Support is awarded as a result of the Council receiving an electronic communication to this effect from the Department of Work and Pensions, the effective date will be from the start of the assessment period the electronic record relates to.

(11) Where a claimant who is in receipt Universal Credit under the Live Service has that award reduced to nil, or Universal Credit ends, because the level of earnings is too high, they shall still be deemed to be a Universal Credit claimant for a period of 6 months from the date the award reduced to nil or ended. During this period, the income used for the calculation of Universal Credit will be used to calculate Local Council Tax Support. If during this period, there is a change of circumstances which results in Universal Credit being payable again, this will be treated as a change of circumstances and will not require a new claim to Local Council Tax Support. This will apply even where the award of Local Council Tax Support had been reduced to nil.

(12) Where a claimant who is in receipt of Universal Credit under the full digital service has that award reduced to nil, or Universal Credit ends, because the level of earnings is too high, the income used for any assessment period for which they have been assessed for Universal Credit entitlement will be used in the assessment of any award of Council Tax Support. For any such assessment period, the income used in assessing entitlement to Council Tax Support will be calculated as set out earlier in this paragraph.

(14) If a person who has been assessed as no longer entitled to Universal Credit makes a rapid reclaim for that benefit and is awarded it, if their Council Tax Support award has been nil and they would now be eligible again, any eligibility can be reassessed and a new award made without the need for a new application as long as the Universal Credit is reawarded within 3 months.

(13) Any manual payments or advances of Universal Credit will be disregarded in full as income and capital.

(14) Any payments to compensate claimants who migrated to Universal Credit and lost their eligibility to a severe disability premium shall be disregarded in full, whether the payments are a lump sum or an ongoing payment.

(15) Any amount paid to a claimant as transitional protection on managed migration may be treated as an award of Universal Credit.

Chapter 4 - Income: other pensioners.

40 Calculation of income and capital where state pension credit is not payable: pensioners

Where neither paragraph 37 (applicant in receipt of guarantee credit) nor 38 (calculation of income in
savings credit only cases) applies in and applicant's case, his income or capital is to be calculated or estimated
in accordance with paragraphs 41 to 45, 59 - 61, 63 and Chapter 7 (Capital) of this part.
Where capital exceeds £16,000, no Local Council Tax Support is payable, unless the claimant is in receipt of
Guarantee Pension Credit.
Meaning of income: pensioners
41.—(1) For the purposes of classes A to C, "income" means income of any of the following descriptions—
(a) earnings;
(b) working tax credit;
(c) retirement pension income within the meaning of the State Pension Credit Act 2002;
(d) income from annuity contracts (other than retirement pension income);
(e) a war disablement pension or war widow's or widower's pension;
(f) a foreign war disablement pension or war widow's or widower's pension;
(g) a guaranteed income payment;
(h) a payment made under article 21(1)I of the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011, in any case where article 31 (2) (c) applies;
(zi) Universal Credit
(i) income from capital other than capital disregarded under Part 1 of Schedule 9 (capital disregards);
(j) social security benefits, other than retirement pension income or any of the following benefits—
(i) disability living allowance;
(ii) personal independence payment;
(iii) an AFIP
(iia) adult disability payment;
(iv) attendance allowance payable under section 64 of the SSCBA;
(v) an increase of disablement pension under section 104 or 105 of that Act;
(vi) child benefit;
(vii) any guardian's allowance payable under section 77 of the SSCBA;
(viii) any increase for a dependant, other than the applicant's partner, payable in accordance with Part 4 of that Act;
(ix) any -
(aa) social fund payment made under Part 8 of that Act
(bb) occasional assistance, or
(x) Christmas bonus payable under Part 10 of that Act;
(xi) housing benefit;
(xii) [Council Tax benefit;]
(xiii) bereavement payment;
(xiv) statutory sick pay;
(xv) statutory maternity pay;
(xvi) ordinary statutory paternity pay payable under Part 12ZA of the SSCBA;
(xvia) shared parental leave
(xv1b) statutory parental bereavement pay under Part 12ZD of that Act;
(xvii) additional statutory paternity pay payable under Part 12ZA of that Act;
(xviii) statutory adoption pay payable under Part 12ZB of that Act;
(xx) statutory shared parental pay under Part 127C of that Act;
(xxi) early years assistance given in accordance with section 32 of that Act;
(xxii) funeral expense assistance given in accordance with section 34 of that Act;
(xxiii) any Scottish child payment assistance given in accordance with section 79 of that Act;
(xxiv) any assistance given in accordance with the Carer's Assistance (Young Carer Grants) (Scotland) Regulations 2019;
(xxv) short-term assistance given in accordance with the regulations under section 36 of the Social Security (Scotland) Act 2018;
(xxvi) winter heating assistance given in accordance with regulations under section 30 of that Act;
(xxvii) any benefit similar to those mentioned in the preceding provisions of this paragraph payable under legislation having effect in Northern Ireland,
(k) all foreign social security benefits which are similar to the social security benefits prescribed above;
(l) a payment made—
(i) under article 30 of the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 2006, in any case where article 30(1)(b) applies; or
(ii) under article 12(8) of that Order, in any case where sub-paragraph (b) of that article applies;
(m) a pension paid to victims of National Socialist persecution;
(n) payments under a scheme made under the Pneumoconiosis etc. (Worker's Compensation) Act 1979;
(o) payments made towards the maintenance of the applicant by his spouse, civil partner, former spouse or former civil partner or towards the maintenance of the applicant's partner by his spouse, civil partner, former spouse or former civil partner, including payments made—
(i) under a court order;
(ii) under an agreement for maintenance; or
(iii) voluntarily;
(p) payments due from any person in respect of board and lodging accommodation provided by the applicant;
(q) royalties or other sums paid as a consideration for the use of, or the right to use, any copyright, design, patent or trade mark;
(r ) any payment in respect of any—
(i) book registered under the Public Lending Right Scheme 1982; or
(ii) work made under any international public lending right scheme that is analogous to the Public Lending Right Scheme 1982;
(s) any payment, other than a payment ordered by a court or made in settlement of a claim, made by or on behalf of a former employer of a person on account of the early retirement of that person on grounds of ill-health or disability;
(t) any sum payable by way of pension out of money provided under—
(i) the Civil List Act 1837,
(ii) the Civil List Act 1937,
(iii) the Civil List Act 1952,
(iv) the Civil List Act 1972, or
(v) the Civil List Act 1975
(u) any income in lieu of that specified in paragraphs (a) to (r);
(v) any payment of rent made to an applicant who—
(i) owns the freehold or leasehold interest in any property or is a tenant of any property;
(ii) occupies part of the property; and
(iii) has an agreement with another person allowing that person to occupy that property on payment of rent;
(w) any payment made at regular intervals under an equity release scheme;
(x) PPF periodic payments within the meaning of section 17(1) of the State Pension Credit Act 2002.

(2) Where the payment of any social security benefit referred to in sub-paragraph (1) or retirement pension income to which section 16(1)(za) to of the State Pension Credit Act 2002 applies, is subject to any deduction (other than an adjustment specified in sub-paragraph (4)) the amount to be taken into account under subparagraph (1) is to be the amount before the deduction is made.

(3) Where an award of any working tax credit or child tax credit is subject to a deduction by way of recovery of an overpayment of working tax credit or child tax credit which arose in a previous tax year the amount to be taken into account under sub-paragraph (1) shall be the amount of working tax credit or child tax credit awarded less the amount of that deduction.

(4) The adjustments specified in this paragraph are those made in accordance with—
(a) the Social Security (Overlapping Benefits) Regulations 1979;
(b) the Social Security (Hospital In-Patients) Regulations 1975;
(c) section 30DD or section 30E of the SSCBA (reductions in incapacity benefit in respect of pensions and councillor's allowances);
(d) section 3 of the Welfare Reform Act 2007 (deductions from contributory employment and support allowance in respect of pensions and councillor's allowances) and regulations made under it.
(e) section 14 of the Pensions Act 2014 (pension sharing: reduction in sharer's section 4 pension)
(f) section 45B or 55B of the Social Security Contribution and Benefits Act 1992 (reduction in additional pension in Category A retirement pension and shard additional pension; pension sharing)

(5) In sub-paragraph (1) -
(a) "equity release scheme" means a loan—
(i) made between a person ("the lender") and the applicant;
(ii) by means of which a sum of money is advanced by the lender to the applicant by way of payments at regular intervals; and
(iii) which is secured on a dwelling in which the applicant owns an estate or interest and which he occupies as his home; and
(b) in paragraph (j) (ix) "occasional assistance" means any payment or provision made by a local authority, the Welsh Ministers or the Scottish Ministers for the purpose of -
(i) meeting, or helping to meet an immediate short term need -
(aa) arising out of an exceptional event or exceptional circumstances, and
(bb) that needs to be met to avoid a risk to the well-being of an individual; or
(ii) enabling qualifying individuals to establish or maintain a settled home, and "qualifying individuals" means individuals who have been, or without assistance might otherwise be -
(aa) in prison, hospital, an establishment providing residential care or other institution,
or
(bb) homeless or otherwise living an unsettled way of life.

(6) In sub-paragraph (5)(b) "local authority" means a local authority in England within the meaning of the Local Government Act 1972.

42 Calculation of weekly income: pensioners

(1) Except in a case within sub-paragraph (2), (3A), (4A) or (5), for the purposes of calculating the weekly income of an applicant, where the period in respect of which payment is made—
(a) does not exceed a week, the whole of that payment will be included in the applicant's weekly income;
(b) exceeds a week, the amount to be included in the applicant's weekly income will be determined—
(i) in a case where that period is a month, by multiplying the amount of the payment by 12 and dividing the product by 52;
(ii) in a case where that period is three months, by multiplying the amount of the payment by 4 and dividing the product by 52;
(iii) in a case where that period is a year, by dividing the amount of the payment by 52;
(iv) in any other case, by multiplying the amount of the payment by 7 and dividing the product by the number of days in the period in respect of which it is made.

(2) Sub-paragraph (3) applies where—
(a) the applicant's regular pattern of work is such that he does not work the same hours every week; or
(b) the amount of the applicant's income fluctuates and has changed more than once.

(3) The weekly amount of that applicant's income will be determined—
(a) if, in a case to which paragraph (a) applies, there is a recognised cycle of work, by reference to his average weekly income over the period of the complete cycle (including, where the cycle involves periods in which the applicant does no work, those periods but disregarding any other absences); or
(b) in any other case, on the basis of—
(i) the last two payments if those payments are one month or more apart;
(ii) the last four payments if the last two payments are less than one month apart; or
(iii) calculating or estimating such other payments as may, in the particular circumstances of the case, enable the applicant's average weekly income to be determined more accurately.
(3A) Income calculated in pursuant to sub-paragraphs (2) and (3) must be taken into account-
(a) in the case of an application, on the date on which the application was made or treated as made, and the first day of each reduction week thereafter;
(b) in the case of an application or a reduction under the scheme where the applicant commences employment, the first day of the reduction week following the date the applicant commences that employment, and the first day of each reduction week thereafter; or
(c) in the case of an application or a reduction under a scheme where the applicant's average weekly earnings from the employment change, the first day of the reduction week following the date the applicant's earnings from employment change so as to require recalculation under this paragraph, and the first day of each reduction week thereafter, regardless of whether those earnings were actually received in that reduction week.

(4) For the purposes of sub-paragraph (3)(b) the last payments are the last payments before the date the application was made or treated as made.
(4A) An applicant's earnings from employment as an employed earner not calculated pursuant to subparagraphs (2) and (3) must be taken into account -
(a) in the case of an application, on the date on which the application was made or treated as made, and the first day of each reduction week thereafter;
(b) in the case of an application or a reduction under a scheme where the applicant commences employment, the first day of the reduction week following the date the applicant commenced that employment, and the first day of each reduction week thereafter; or
(c) in the case of an application or a reduction under a scheme where the applicant's average weekly earnings from employment change, the first day of the reduction week following the date of the change, and the beginning of each reduction week thereafter, regardless of whether those earnings were actually receive in that reduction week.

(5) If the applicant is entitled to receive a payment to which sub-paragraph (6) applies, the amount of that payment will be treated as if made in respect of a period of a year.
(6) This sub-paragraph applies to—
(a) royalties or other sums paid as a consideration for the use of, or the right to use, any copyright, design, patent or trade mark;
(b) any payment in respect of any—
(i) book registered under the Public Lending Right Scheme 1982; or
(ii) work made under any international public lending right scheme that is analogous to the Public Lending Right Scheme 1982; and
(c) any payment which is made on an occasional basis.

(7) The period under which any benefit under the benefit Acts is to be taken into account shall be the period in respect of which that benefit is payable.

(8) Where payments are made in a currency other than Sterling, the value of the payment shall be determined by taking the Sterling equivalent on the date the payment is made.

(9) The sums specified in Schedule 5 (sums disregarded from earnings) are to be disregarded in calculating—
(a) the applicant's earnings; and
(b) any amount to which sub-paragraph (6) applies where the applicant is the first owner of the copyright, design, patent or trademark, or an original contributor to the book or work referred to in
sub-paragraph (6)(b).

(10) For the purposes of sub-paragraph (9)(b), and for that purpose only, the amounts specified in paragraph (6) shall be treated as though they were earnings.

(11) Income specified in Schedule 6 (amount disregarded in calculation of amounts other than earnings) is to be disregarded in the calculation of the applicant's income.

(12) Schedule 9 (capital disregards) has effect so that—
(a) the capital specified in Part 1 is disregarded for the purpose of determining an applicant's income; and
(b) the capital specified in Part 2 is disregarded for the purpose of determining an applicant's income under paragraph 74 (2) calculation of tariff income from capital)

(13) In the case of any income taken into account for the purpose of calculating a person's income any amount payable by way of tax is disregarded.

43 Earnings of employed earners: pensioners

(1) Subject to sub-paragraph (2), "earnings" means in the case of employment as an employed earner, any remuneration or profit derived from that employment and includes—
(a) any bonus or commission;
(b) any payment in lieu of remuneration except any periodic sum paid to an applicant on account of the termination of his employment by reason of redundancy;
(c) any payment in lieu of notice;
(d) any holiday pay;
(e) any payment by way of a retainer;
(f) any payment made by the applicant's employer in respect of expenses not wholly, exclusively and necessarily incurred in the performance of the duties of the employment, including any payment made by the applicant's employer in respect of—
(i) travelling expenses incurred by the applicant between his home and place of employment;
(ii) expenses incurred by the applicant under arrangements made for the care of a member of his family owing to the applicant's absence from home;
(g) the amount of any payment by way of a non-cash voucher which has been taken into account in the computation of a person's earnings in accordance with Part 5 of Schedule 3 to the Social Security (Contributions) Regulations 2001;
(h) statutory sick pay payable by the employer under the SSCBA;
(i) statutory maternity pay payable by the employer under that Act;
(j) ordinary statutory paternity pay payable under Part 12ZA of that Act;
(ja) statutory shared parental pay under Part 127C of that Act;
(jb) statutory parental bereavement pay under Part12ZD of that Act;
(k) additional statutory paternity pay payable under Part 12ZA of that Act;
(l) statutory adoption pay payable under Part 12ZB of that Act;
(m) any sums payable under a contract of service—
(i) for incapacity for work due to sickness or injury; or
(ii) by reason of pregnancy or confinement.

(2) Earnings does not include—
(a) subject to sub-paragraph (3), any payment in kind;
(b) any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment;
(c) any occupational pension;
(d) any lump sum payment made under the Iron and Steel Re-adaptation Benefits Scheme;
(e) any payment of compensation made pursuant to an award by an employment tribunal established under the Employment Tribunals Act 1996 in respect of unfair dismissal or unlawful discrimination;
(f) any payment in respect of expenses arising out of the applicant participating as a service user.

(3) Sub-paragraph (2)(a) shall not apply in respect of any non-cash voucher referred to in sub-paragraph (1)(g).

44 Calculation of net earnings of employed earners: pensioners

(1) For the purposes of paragraph 59 (calculation of income on a weekly basis), the earnings of an applicant derived or likely to be derived from employment as an employed earner to be taken into account shall, subject to paragraph 42(5) and Schedule 5 (sums to be disregarded from earnings: pensioners), be his net earnings.

(2) For the purposes of sub-paragraph (1) net earnings shall, except where sub-paragraph (5) applies, be calculated by taking into account the gross earnings of the applicant from that employment over the assessment period, less—
(a) any amount deducted from those earnings by way of—
(i) income tax;
(ii) primary Class 1 contributions under the SSCBA;
(b) one-half of any sum paid by the applicant by way of a contribution towards an occupational pension scheme;
(c) one-half of the amount calculated in accordance with sub-paragraph (4) in respect of any qualifying contribution payable by the applicant; and
(d) where those earnings include a payment which is payable under any enactment having effect in Northern Ireland and which corresponds to statutory sick pay, statutory maternity pay, statutory paternity pay, statutory shared parental pay, statutory parental bereavement pay, or statutory adoption pay, any amount deducted from those earnings by way of any contributions
which are payable under any enactment having effect in Northern Ireland and which correspond to primary Class 1 contributions under the Act.

(3) In this regulation "qualifying contribution" means any sum which is payable periodically as a contribution towards a personal pension scheme.

(4) The amount in respect of any qualifying contribution shall be calculated by multiplying the daily amount of the qualifying contribution by the number equal to the number of days in the assessment period; and for the purposes of this regulation the daily amount of the qualifying contribution shall be determined—
(a) where the qualifying contribution is payable monthly, by multiplying the amount of the qualifying contribution by 12 and dividing the product by 365;
(b) in any other case, by dividing the amount of the qualifying contribution by the number equal to the number of days in the period to which the qualifying contribution relates.

(5) Where the earnings of an applicant are estimated under paragraph 42(2)(b) (calculation of weekly income), as the case may be, his net earnings shall be calculated by taking into account those earnings over the assessment period, 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 applicable to the
assessment period less only the personal reliefs to which the applicant 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 assessment period 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 sub-paragraph shall be calculated on a pro rata basis;
(b) an amount equivalent to the amount of the primary Class 1 contributions that would be payable by him under the Act in respect of those earnings if such contributions were payable; and
(c) one-half of any sum which would be payable by the applicant by way of a contribution towards an occupational or personal pension scheme, if the earnings so estimated were actual earnings.

45 Calculation of earnings of self-employed earners: pensioners

(1) Where the earnings of an applicant consist of earnings from employment as a self-employed earner, the weekly amount of his earnings will be determined by reference to his average weekly earnings from that employment—
(a) over a period of one year; or
(b) where the applicant has recently become engaged in that employment or there has been a change which is likely to affect the normal pattern of business, over such other period ("computation period")
as may, in the particular case, enable the weekly amount of his earnings to be determined more accurately.

(2) For the purposes of determining the weekly amount of earnings of an applicant to whom sub-paragraph (1)(b) applies, his earnings over the computation period will be divided by the number equal to the number of days in that period and the product will be multiplied by 7.

(3) The period over which the weekly amount of an applicant's earnings is calculated in accordance with this paragraph will be his assessment period.

46 Earnings of self-employers earners: pensioners

(1) Subject to sub-paragraph (2), "earnings", in the case of employment as a self-employed earner, means the gross income of the employment.

(2) "Earnings" in the case of employment as a self-employed earner does not include—
(a) where an applicant occupies a dwelling as his home and he provides in that dwelling board and lodging accommodation for which payment is made, those payments;
(b) any payment made by a local authority to an applicant—
(i) with whom a person is accommodated by virtue of arrangements made under section 22 9c) or 23(2)(a) of the Children Act 1989, or section 26 or 26A of the Children (Scotland) Act 1995;
or
(ii) with whom a local authority fosters a child under the Looked After Children (Scotland) Regulations 2009 or who is a kinship carer under those Regulations;
(c) any payment made by a voluntary organisation in accordance with section 59(1)(a) of the Children Act 1989 (provision of accommodation by voluntary organisations);
(d) any payment made to the applicant or his partner for a person ("the person concerned") who is not normally a member of the applicant's household but is temporarily in his care, by—
(i) a local authority but excluding payments of housing benefit made in respect of the person concerned;
(ii) a voluntary organisation;
(iii) the person concerned where the payment is for the provision of accommodation in respect of the meeting of that person's needs under section 18 or 19 of the Care Act 2014 (duty and power to meet needs for care and support).;
(iv) the National Health Service Commissioning Board or a clinical commissioning group established under section 14D of the National Health Service Act 2006;
(v) a Local Health Board established under section 11 of the National Health Service (Wales) Act 2006; or
(vi) the persons concerned where the payment is for the provision of accommodation to meet that person's needs for care and support under section 35 or 36 of the Social Services and Well-being (Wales) Act 2014 (respectively, duty and power to meet care and support needs of an adult);
(da) any payment or part of a payment made by a local authority in accordance with section 26A of the Children (Scotland) Act 1995 (duty to provide continuing care) to a person ("A") which A passes on to the applicant where A-
(i) was formerly in the applicant's care;
(ii) is aged 16 or over; and
(iii) continues to live with the applicant;
(db) any payments made to an applicant under section 73 (1)(b) of the Children and Young People (Scotland) Act 2014 (kinship care assistance: further provisions);
(e) any sports award.

47 Notional income: pensioners

(1) An applicant will be treated as possessing—
(a) subject to sub-paragraph (2), the amount of any retirement pension income—
(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 applicant elected to defer.

(2) Sub-paragraph (1)(a) will not apply to the following where entitlement has been deferred—
(a) a Category A or Category B retirement pension payable under sections 43 to 55 of the SSCBA;
(b) a shared additional pension payable under section 55A of the SSCBA;
(c) graduated retirement benefit payable under sections 36 and 37 of the National Insurance Act 1965.

(3) For the purposes of sub-paragraph (2), entitlement has been deferred—
(a) in the case of a Category A or Category B pension, in the circumstances specified in section 55(3) of the SSCBA;
(b) in the case of a shared additional pension, in the circumstances specified in section 55C(3) of the SSCBA; and I in the case of graduated retirement benefit, in the circumstances specified in section 36(4)and (4A) of the National Insurance Act 1965.

(4) This sub-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.

(5) Where sub-paragraph (4) applies, the amount of any income foregone will 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.

(6) The amount of any income foregone in a case where sub-paragraph (4)I(i) or (ii) applies will be the rate of the annuity which may have been purchased with the fund and will be determined by the authority, taking account of information provided by the pension fund holder.

(7) The amount of any income foregone in a case where sub-paragraph (4)I(iii) applies will be the income that the applicant could have received without purchasing an annuity had the funds held under the relevant scheme been held under a personal pension scheme or occupational pension scheme where income withdrawal was available and will be determined in the manner specified in sub-paragraph (6).

(8) In sub-paragraph (4), "money purchase benefits" has the meaning it has in the Pensions Scheme Act 1993.

(9) Subject to sub-paragraphs (10) and (12), a person will be treated as possessing income of which he has deprived himself for the purpose of securing entitlement to a reduction under this scheme or increasing the amount of the reduction.

(10) Sub-paragraph (9) will not apply in respect of the amount of an increase of pension or benefit where a person, having made an election in favour of that increase of pension or benefit under Schedule 5 or 5A to the SSCBA or under Schedule 1 to the Social Security (Graduated Retirement Benefit) Regulations 2005, changes that election in accordance with regulations made under Schedule 5 or 5A to that Act in favour of a lump sum.

(11) In sub-paragraph (10), "lump sum" means a lump sum under Schedule 5 or 5A to the SSCBA or under Schedule 1 to the Social Security (Graduated Retirement Benefit) Regulations 2005.

(12) Sub-paragraph (9) does not apply in respect of any amount of income other than earnings, or earnings of an employed earner, arising out of the applicant participating as a service user.

(13) Where an applicant is in receipt of any benefit under the benefit Acts and the rate of that benefit is altered with effect from a date on or after 1st April in any year but not more than 14 days thereafter, the authority will treat the applicant as possessing such benefit at the altered rate from either 1st April or the first Monday in April in that year, whichever date the authority selects to apply, to the date on which the altered rate is to take effect.

(14) In the case of an applicant who has, or whose partner has, an award of state pension credit comprising only the savings credit, where the authority treats the applicant as possessing any benefit at the altered rate in accordance with paragraph (13), the authority will—
(a) determine the income and capital of that applicant in accordance with paragraph 17(1) (calculation of applicant's income in savings credit only cases) where the calculation or estimate of that income and
capital is altered with effect from a date on or after 1st April in any year but not more than 14 days thereafter; and
(b) treat that applicant as possessing such income and capital at the altered rate by reference to the date selected by the relevant authority to apply in its area, for the purposes of establishing the period
referred to in sub-paragraph (13).

(15) For the purposes of sub-paragraph (9), a person is not to be regarded as depriving himself of income where—
(a) his rights to benefits under a registered pension scheme are extinguished and in consequence of this he receives a payment from that scheme, and
(b) that payment is a trivial commutation lump sum within the meaning given by paragraph 7 of Schedule 29 to the Finance Act 2004.

(16) In sub-paragraph (15), "registered pension scheme" has the meaning given in section 150(2) of the Finance Act 2004.

48 Income paid to third parties: pensioners

(1) Any payment of income, other than a payment specified in sub-paragraph (2) or (3), to a third party in respect of the applicant will be treated as possessed by the applicant.

(2) Sub-paragraph (1) will not apply in respect of a payment of income made 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—
(a) 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;
(b) the payment is made to the trustee in bankruptcy or any other person acting on behalf of the creditors; and
(c) the person referred to in paragraph (a) and his partner does not possess, or is not treated as possessing, any other income apart from that payment.

(3) Sub-paragraph (1) does not apply in respect of any payment of income other than earnings, or earnings derived from employment as an employed earner, arising out of the applicant participating as a service user.

Chapter 5 - Income - persons who are not pensioners

49 Average weekly earnings of employed earners: persons who are not pensioners

(1) Where the income of an applicant consists of earnings from employment as an employed earner his average weekly earnings must be estimated by reference to his earnings from that employment—
(a) over a period immediately preceding the reduction week in which the claim is made or treated as
made and being a period of—
(i) 5 weeks, if he is paid weekly; or
(ii) 2 months, if he is paid monthly; or
(b) whether or not paragraph (a)(i) or (ii) applies, where an applicant's earnings fluctuate, over such other period preceding the reduction week in which the claim is made or treated as made as may, in any particular case, enable his average weekly earnings to be estimated more accurately.

(2) Where the applicant has been in his employment for less than the period specified in sub- paragraph (1)(a)(i) or (ii)— (a) if he has received any earnings for the period that he has been in that employment and those earnings are likely to represent his average weekly earnings from that employment his average weekly earnings must be estimated by reference to those earnings;
(b) in any other case, the authority must estimate the applicant's average weekly earnings.

(3) Where the amount of an applicant's earnings changes the authority must estimate his average weekly earnings by reference to his likely earnings from the employment over such period as is appropriate in order that his average weekly earnings may be estimated accurately but the length of the period will not in any case exceed 52 weeks.
(3A) Income calculated in pursuant to sub-paragraphs (2) and (3) must be taken into account- (d) in the case of an application, on the date on which the application was made or treated as made, and the first day of each reduction week thereafter;
(e) in the case of an application or a reduction under the scheme where the applicant commences employment, the first day of the reduction week following the date the applicant commences that employment, and the first day of each reduction week thereafter; or
(f) in the case of an application or a reduction under a scheme where the applicant's average weekly earnings from the employment change, the first day of the reduction week following the date the applicant's earnings from employment change so as to require recalculation under this paragraph, and the first day of each reduction week thereafter, regardless of whether those earnings were actually received in that reduction week.

(4) For the purposes of this paragraph the applicant's earnings are to be calculated in accordance with paragraphs 53 and 54 (earnings of employed earners: persons who are not pensioners).
(4A) An applicant's earnings from employment as an employed earner not calculated pursuant to subparagraphs (2) and (3) must be taken into account - (d) in the case of an application, on the date on which the application was made or treated as made, and the first day of each reduction week thereafter;
(e) in the case of an application or a reduction under a scheme where the applicant commences employment, the first day of the reduction week following the date the applicant commenced that
employment, and the first day of each reduction week thereafter; or
(f) in the case of an application or a reduction under a scheme where the applicant's average weekly earnings from employment change, the first day of the reduction week following the date of the
change, and the beginning of each reduction week thereafter, regardless of whether those earnings were actually receive in that reduction week.

(5) Where the applicant is in receipt of Universal Credit any earnings will be those used in assessing the Universal Credit award as set out in paragraph 39.

50 Average weekly earnings of self-employed earners: persons who are not pensioners

(1) Where the income of an applicant who is not a pensioner consists of earnings from employment as a self-employed earner his average weekly earnings must be estimated by -
(a) reference to his earnings from that employment over such period as is appropriate in order that his average weekly earnings may be estimated accurately but the length of the period must not in any case exceed a year;
(b) where his average weekly earnings as estimated under sub-paragraph (a) fall below the national minimum wage, or the Living wage, whichever is more, his average weekly earnings must instead be estimated by multiplying the hours stated to be worked each week by the national minimum wage, or Living Wage, whichever is more, for that age of person and manner of employment as set out by the Secretary of State.
(c) where a claimant has started up a new business, paragraph (b) does not apply for a period of 12 months from the date the business has commenced, as long as the claimant can demonstrate continuous improvement in the level of self-employed earnings. This paragraph may only be applied for one 12 month period within 5 years of the date the original business commenced.
(d) where a claimant has an existing self-employed business, but that business starts to fail and income falls to the level where the minimum income floor would be applied, paragraph (b) will cease to apply
for a period of 12 months as long as the claimant has not already had an exemption from paragraph (b) within the previous 5 years.
(d) where the claimant is a childminder, paragraphs (b) and (c) do not apply.

(2) For the purposes of this paragraph the applicant's earnings must be calculated in accordance with paragraphs 55, 64 and 65 of this part (earnings and net profit, of self-employed earners).

51 Average weekly income other than earnings: persons who are not pensioners

(1) The income of an applicant which does not consist of earnings must, except where sub-paragraph (2) applies, be estimated over such period as is appropriate in order that his average weekly income may be
estimated accurately but the length of the period must not in any case exceed 52 weeks; and nothing in this paragraph authorises an authority to disregard any such income other than that specified in Schedule 8 (sums to be disregarded in the calculation of income other than earnings: persons who are not pensioners)

(2) The period over which any benefit under the benefit Acts is to be taken into account is to be the period in respect of which that benefit is payable.

(3) For the purposes of this paragraph income other than earnings is to be calculated in accordance with paragraph 56 of this part (calculation of income other than earnings: persons who are not pensioners)

52 Calculation of weekly income of employed earners: persons who are not pensioners

(1) For the purposes of paragraphs 49 (average weekly earnings of employed earners), 51 (average weekly income other than earnings) and 62 (calculation of average weekly income from tax credits), where the period in respect of which a payment is made—
(a) does not exceed a week, the weekly amount is to be the amount of that payment;
(b) exceeds a week, the weekly amount is to be determined—
(i) in a case where that period is a month, by multiplying the amount of the payment by 12 and dividing the product by 52;
(ii) in any other case, by dividing the amount of the payment by the number equal to the number of days in the period to which it relates and multiplying the product by 7.

(2) For the purposes of paragraph 50 (average weekly earnings of self-employed earners) the weekly amount of earnings of an applicant is to be determined by dividing his earnings over the assessment period by the number equal to the number of days in that period and multiplying the product by 7.

53 Earnings of employed earners: persons who are not pensioners

(1) Subject to sub-paragraph (2), "earnings", in the case of employment as an employed earner of a person who is not a pensioner, any remuneration or profit derived from that employment and includes—
(a) any bonus or commission;
(b) any payment in lieu of remuneration except any periodic sum paid to an applicant on account of the termination of his employment by reason of redundancy;
(c) any payment in lieu of notice or any lump sum payment intended as compensation for the loss of employment but only in so far as it represents loss of income;
(d) any holiday pay except any payable more than 4 weeks after termination or interruption of the employment;
(e) any payment by way of a retainer;
(f) any payment made by the applicant's employer in respect of expenses not wholly, exclusively and necessarily incurred in the performance of the duties of the employment, including any payment made
by the applicant's employer in respect of—
(i) travelling expenses incurred by the applicant between his home and place of employment;
(ii) expenses incurred by the applicant under arrangements made for the care of a member of his family owing to the applicant's absence from home;
(g) any award of compensation made under section 112(4) or 117(3)(a) of the Employment Rights Act 1996 (remedies and compensation for unfair dismissal);
(h) any payment or remuneration made under section 28, 34, 64, 68 or 70 of the Employment Rights Act 1996 (right to guarantee payments, remuneration on suspension on medical or maternity grounds, complaints to employment tribunals);
(i) any such sum as is referred to in section 112 of the SSCBA (certain sums to be earnings for social security purposes);
(j) any statutory sick pay, statutory maternity pay, statutory paternity pay or statutory adoption pay, or a corresponding payment under any enactment having effect in Northern Ireland;
(ja) statutory shared parental pay under Part 127C of that Act;
(jb) statutory parental bereavement pay under Part 12ZD of that Act
(k) any remuneration paid by or on behalf of an employer to the applicant who for the time being is on maternity leave, paternity leave or adoption leave or is absent from work because he is ill;
(l) the amount of any payment by way of a non-cash voucher which has been taken into account in the computation of a person's earnings in accordance with Part 5 of Schedule 3 to the Social Security
(Contributions) Regulations 2001.

(2) Earnings does not include—
(a) subject to sub-paragraph (3), any payment in kind;
(b) any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment;
(c) any occupational pension;
(d) any payment in respect of expenses arising out of the applicant participating as a service user.

(3) Sub-paragraph (2)(a) does not apply in respect of any non-cash voucher referred to in sub- paragraph (1)(l).

54 Calculation of net earnings of employed earners: persons who are not pensioners

(1) For the purposes of paragraph 49 (average weekly earnings of employed earners), the earnings of an applicant derived or likely to be derived from employment as an employed earner to be taken into account must, subject to sub-paragraph (2), be his net earnings.

(2) There is to be disregarded from an applicant's net earnings, any sum, where applicable, specified in paragraphs 1 to 16 of Schedule 7 (sums to be disregarded in the calculation of earnings: persons who are not pensioners).

(3) For the purposes of sub-paragraph (1) net earnings must, except where subparagraph (6) applies, be calculated by taking into account the gross earnings of the applicant from that employment over the assessment period, less—
(a) any amount deducted from those earnings by way of—
(i) income tax;
(ii) primary Class 1 contributions under the SSCBA;
(b) one-half of any sum paid by the applicant by way of a contribution towards an occupational pension scheme;
(c) one-half of the amount calculated in accordance with sub-paragraph (5) in respect of any qualifying contribution payable by the applicant; and
(d) where those earnings include a payment which is payable under any enactment having effect in Northern Ireland and which corresponds to statutory sick pay, statutory maternity pay, statutory paternity pay or statutory adoption pay, any amount deducted from those earnings by way of any contributions which are payable under any enactment having effect in Northern Ireland and which correspond to primary Class 1 contributions under the SSCBA.

(4) In this paragraph "qualifying contribution" means any sum which is payable periodically as a contribution towards a personal pension scheme.

(5) The amount in respect of any qualifying contribution is to be calculated by multiplying the daily amount of the qualifying contribution by the number equal to the number of days in the assessment period; and for the purposes of this paragraph the daily amount of the qualifying contribution is to be determined—
(a) where the qualifying contribution is payable monthly, by multiplying the amount of the qualifying contribution by 12 and dividing the product by 365;
(b) in any other case, by dividing the amount of the qualifying contribution by the number equal to the number of days in the period to which the qualifying contribution relates.

(6) Where the earnings of an applicant are estimated under paragraph 49(2)(b) (average weekly earnings of employed earners), his net earnings is to be calculated by taking into account those earnings over the
assessment period, less—
(a) an amount in respect of income tax equivalent to an amount calculated by applying to those earnings the basic rate of tax, or in the case of a Scottish taxpayer, the Scottish basic rate applicable to the assessment period less only the personal reliefs to which the applicant 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 assessment period 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 sub-paragraph is to be
calculated on a pro rata basis;
(b) an amount equivalent to the amount of the primary Class 1 contributions that would be payable by him under the SSCBA in respect of those earnings if such contributions were payable; and
(c) one-half of any sum which would be payable by the applicant by way of a contribution towards an occupational or personal pension scheme, if the earnings so estimated were actual earnings.

55 Earnings of self-employed earners: persons who are not pensioners

(1) Subject to sub-paragraph (2), "earnings", in the case of employment as a self-employed earner of a person who is not a pensioner, means the gross income of the employment.

(2) "Earnings" does not include any payment to which paragraph 31 or 32 of Schedule 8 refers (payments in respect of a person accommodated with the applicant under arrangements made by a local authority or voluntary organisation and payments made to the applicant by a health authority, local authority or voluntary organisation in respect of persons temporarily in the applicant's care) nor does it include any sports award.

(3) This paragraph applies to—
(a) royalties or other sums paid as a consideration for the use of, or the right to use, any copyright, design, patent or trademark; or
(b) any payment in respect of any—
(i) book registered under the Public Lending Right Scheme 1982; or
(ii) work made under any international public lending right scheme that is analogous to the Public Lending Right Scheme 1982, where the applicant is the first owner of the copyright, design, patent or trademark, or an original contributor to the book or work concerned.
(c) income received by the persons concerned where the payment is for the provision of accommodation to meet the person's needs to care and support under section 35 or 25 of the Social Services and Well-Being (Wales) Act 2014 (respectively, duty and power to meet care and support needs of an adult);
(d) any payment or part of a payment made by a local authority in accordance with section 26A of the Children (Scotland) Act 1995 (duty to provide continuing care) to a person ("A") which A passes on to
the applicant where A -
(i) was formerly in the applicant's care
(ii) is aged 16 or over; and
(iii) continues to live with the applicant;
(da) any payments made to an applicant under section 73 (1)(b) of the Children and Young People (Scotland) Act 2014 (kinship care assistance: further provisions);

(4) Where the applicant's earnings consist of any items to which sub-paragraph (3) applies, those earnings must be taken into account over a period equal to such number of weeks as is equal to the number obtained (and any fraction is to be treated as a corresponding fraction of a week) by dividing the earnings by—
(a) the amount of reduction under this scheme to which the applicant would have been entitled had the payment not been made, plus
(b) an amount equal to the total of the sums which would fall to be disregarded from the payment under Schedule 7 (sums to be disregarded in the calculation of earnings) as appropriate in the applicant's case.

56 Calculation of income other than earnings: persons who are not pensioners

(1) For the purposes of paragraph 51 (average weekly income other than earnings), the income of an applicant who is not a pensioner which does not consist of earnings to be taken into account must, subject to sub-paragraphs (2) to (8), be his gross income and any capital treated as income under paragraph 57 (capital treated as income).

(2) There is to be disregarded from the calculation of an applicant's gross income under sub- paragraph (1), any sum, where applicable, specified in Schedule 8.

(3) Where the payment of any benefit under the benefit Acts is subject to any deduction by way of recovery the amount to be taken into account under subparagraph (1) must be the gross amount payable.

(4) Where the applicant or, where he is a member of a couple, his partner is receiving a contributory employment and support allowance and that benefit has been reduced under regulation 63 of the Employment and Support Allowance Regulations 2008, the amount of that benefit to be taken into account is the amount as if it had not been reduced.

(5) Where an award of any working tax credit or child tax credit under the Tax Credits Act 2002 is subject to a deduction by way of recovery of an overpayment of working tax credit or child tax credit which arose in a previous tax year the amount to be taken into account under sub-paragraph (1) is to be the amount of working tax credit or child tax credit awarded less the amount of that deduction.

(6) Sub-paragraphs (7) and (8) apply where—
(a) a relevant payment has been made to a person in an academic year; and
(b) that person abandons, or is dismissed from, his course of study before the payment to him of the final instalment of the relevant payment.

(7) Where a relevant payment is made quarterly, the amount of a relevant payment to be taken into account for the assessment period for the purposes of sub-paragraph (1) in respect of a person to whom sub-paragraph (7) applies, is to be calculated by applying the formula— (A - (B x C)) / D where—
(a) A = the total amount of the relevant payment which that person would have received had he remained a student until the last day of the academic term in which he abandoned, or was dismissed
from, his course, less any deduction under paragraph 84(5) (treatment of student loans, costs of travel, books and equipment);
(b) B = the number of reduction weeks from the reduction week immediately following that which includes the first day of that academic year to the reduction week which includes the day on which the
person abandoned, or was dismissed from, his course;
(c) C = the weekly amount of the relevant payment, before the application of the £10 disregard, which would have been taken into account as income under paragraph 84(2) had the person not abandoned
or been dismissed from, his course and, in the case of a person who was not entitled to a reduction under this scheme immediately before he abandoned or was dismissed from his course, had that person, at that time, been entitled to housing benefit;
(d) D = the number of reduction weeks in the assessment period.

(8) Where a relevant payment is made by two or more instalments in a quarter, the amount of a relevant payment to be taken into account for the assessment period for the purposes of sub- paragraph (1) in respect of a person to whom sub-paragraph (7) applies, is to be calculated by applying the formula in sub-paragraph (8) but as if—
A = the total amount of relevant payments which that person received, or would have received, from the first day of the academic year to the day the person abandoned the course, or was dismissed from it, less any deduction under paragraph 83 (5).

(9) In this paragraph—
"academic year" and "student loan" have the same meanings as in Part 11 (students);
"assessment period" means—
(a) in a case where a relevant payment is made quarterly, the period beginning with the reduction week which includes the day on which the person abandoned, or was dismissed from, his course and ending with the reduction week which includes the last day of the last quarter for which an instalment of the relevant payment was payable to that person;
(b) in a case where the relevant payment is made by two or more instalments in a quarter, the period beginning with the reduction week which includes the day on which the person abandoned, or was dismissed from, his course and ending with the reduction week which includes—
(i) the day immediately before the day on which the next instalment of the relevant payment would have been due had the payments continued; or
(ii) the last day of the last quarter for which an instalment of the relevant payment was payable to that person, whichever of those dates is earlier; "quarter" in relation to an assessment period means a period in that year beginning on—
(c) 1st January and ending on 31st March;
(d) 1st April and ending on 30th June;
(e) 1st July and ending on 31st August; or
(f) 1st September and ending on 31st December;
"relevant payment" means either a student loan or an amount intended for the maintenance of dependants referred to in paragraph 79 (7) or both.

(10) For the avoidance of doubt there must be included as income to be taken into account under paragraph
(1)—
(a) any payment to which paragraph 43(2) or 53 (2) (payments not earnings) applies; or
(b) in the case of an applicant who is receiving support under section 95 or 98 of the Immigration and Asylum Act 1999 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 applicant and his dependants (if any) as is specified in regulations made under paragraph 3 of Schedule 8 to the Immigration and Asylum Act 1999.

(11) Any monthly payments of Bereavement Support Payment are to be treated as unearned income and disregarded as income for one month from the date of payment. Any unspent money at the end of each month is treated as unspent capital and not disregarded.

57 Capital treated as income: persons who are not pensioners

(1) Any capital payable by instalments which are outstanding at the date on which the claim is made or treated as made, or, at the date of any subsequent revision or supersession, must, if the aggregate of the
instalments outstanding and the amount of the applicant's capital otherwise calculated in accordance with Chapter 3 of this Part exceeds £16,000, be treated as income.

(2) Any payment received under an annuity is to be treated as income.

(3) Any earnings to the extent that they are not a payment of income is to be treated as income.

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

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

58 Notional income: persons who are not pensioners

(1) An applicant who is not a pensioner is to be treated as possessing income of which he has deprived himself for the purpose of securing entitlement to a reduction under this scheme or increasing the amount of the reduction.

(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) a personal pension scheme, occupational pension scheme or a payment made by the Board of the Pension Protection Fund where the applicant has not attained the qualifying age for state pension credit;
(d) any sum to which paragraph 52(2)(a) of Schedule 10 (capital to be disregarded) applies which is administered in the way referred to in paragraph 52(1)(a);
(e) any sum to which paragraph 53(a) of Schedule 10 refers;
(f) rehabilitation allowance made under section 2 of the Employment and Training Act 1973;
(g) child tax credit;
(h) working tax credit, or
(i) any sum to which sub-paragraph (11) applies, any income which would become available to the applicant upon application being made, but which has not been acquired by him, is to be treated as possessed by the applicant but only from the date on which it could be expected to be acquired were an application made.

(3) Any payment of income, other than a payment of income specified in subparagraph (4), made—
(a) to a third party in respect of a single applicant or a member of the family (but not a member of the third party's family) must, 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, be treated as possessed by that single applicant or, as the case may be, by that member;
(b) to a third party in respect of a single applicant or in respect of a member of the family (but not a member of the third party's family) must, where it is not a payment referred to in paragraph (a), be treated as possessed by that single applicant or by that member to the extent that it is used for the food, ordinary clothing or footwear, household fuel or rent of that single applicant or, as the case may be, of any member of that family or is used for any Council Tax or water charges for which that applicant or member is liable;
(c) to a single applicant or a member of the family in respect of a third party (but not in respect of another member of that family) must be treated as possessed by that single applicant 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.

(4) Sub-paragraph (3) does 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 or the Independent Living Fund (2006);
(b) pursuant to section 19(1)(a) of the Coal Industry Act 1994 (concessionary coal);
(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) of the Jobseeker's Allowance Regulations 1996;
(ii) in a training scheme specified in regulation 75(1)(b)(ii) of those Regulations;
(iii) in the Intense Activity Period specified in regulation 75(1)(a)(iv) of those Regulations;
(iv) in a qualifying course within the meaning specified in regulation 17A(7) of those Regulations;
or
(v) in the Flexible New Deal specified in regulation 75(1)(a)(v) of those Regulations;
(d) in respect of a person's participation in the Work for Your Benefit Pilot Scheme;
(e) in respect of a person's participation in the Mandatory Work Activity Scheme;
(f) in respect of an applicant's participation in the Employment, Skills and Enterprise Scheme or any scheme coming into effect under the Jobseeker's Allowance (Schemes for Assisting People to Obtain Employment) regulations 2013;
(g) 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 sub-paragraph (i) and any member of his family does not possess, or is not treated as possessing, any other income apart from that payment.

(5) Where an applicant is in receipt of any benefit under the benefit Acts and the rate of that benefit is altered with effect from a date on or after 1st April in any year but not more than 14 days thereafter, the authority must treat the applicant as possessing such benefit at the altered rate from either 1st April or the first Monday in April in that year, whichever date the authority selects, to the date on which the altered rate is to take effect.

(6) Subject to sub-paragraph (7), where—
(a) an applicant 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 authority must treat the applicant as possessing such earnings (if any) as is reasonable for that employment unless the applicant satisfies the authority that the means of that person are insufficient for him to pay or to pay more for the service.

(7) Sub-paragraph (6) does not apply—
(a) to an applicant who is engaged by a charitable or voluntary organisation or who is a volunteer if the authority is satisfied in any of those cases that it is reasonable for him to provide those services free of
charge; or
(b) in a case where the service is performed in connection with—
(i) the applicant's participation in an employment or training programme in accordance with regulation 19(1)(q) of the Jobseeker's Allowance Regulations 1996, other than where the
service is performed in connection with the applicant's participation in the Intense Activity Period specified in regulation 75(1)(a)(iv) of those Regulations; or
(ii) the applicant's or the applicant's partner's participation in an employment or training programme as defined in regulation 19(3) of those Regulations 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 an applicant 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.

(8) In sub-paragraph (7) "work placement" means practical work experience which is not undertaken in expectation of payment.

(9) Where an applicant is treated as possessing any income under any of subparagraphs (1) to (8), the foregoing provisions of this Part 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.

(10) Where an applicant is treated as possessing any earnings under sub-paragraph (6) the foregoing provisions of this Part 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 44(2) or 54 (3) (calculation of net earnings of employed earners: pensioners and persons who are not pensioners) do not apply and his net earnings are to be calculated by taking into account those 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 of tax applicable to the assessment period less only the personal relief to which the
applicant is entitled under section 257(1) of the Income and Corporation Taxes Act 1988 (personal allowances) as is appropriate to his circumstances; but, if the assessment period is less than a year, the
earnings to which the basic rate of tax is to be applied and the amount of the personal relief deductible under this subparagraph is to be calculated on a pro rata basis;
(b) an amount equivalent to the amount of the primary Class 1 contributions that would be payable by him under the Act in respect of those earnings if such contributions were payable; and I one-half of any sum payable by the applicant by way of a contribution towards an occupational or personal pension scheme.

(11) Sub-paragraphs (1), (2), (3) and (6) do not apply in respect of any amount of income other than earnings, or earnings of an employed earner, arising out of the applicant participating as a service user.

Chapter 6 - Income: further provisions applying to pensioners and persons who are not pensioners

59 Calculation of income on a weekly basis

(1) Subject to paragraph 62 (disregard of changes in tax, etc), the income of an applicant is to be calculated on a weekly basis—
(a) by estimating the amount which is likely to be his average weekly income in accordance with this Part;
(b) by adding to that amount the weekly income calculated under paragraphs 46 and 50; and
(c) deducting from the sum of paragraphs (a) and (b) any relevant child care charges to which paragraph 60 (treatment of child care charges) applies from any earnings which form part of the average weekly
income or, in a case where the conditions in sub-paragraph (2) are met, from those earnings plus whichever credit specified in paragraph (b) of that sub-paragraph is appropriate, up to a maximum deduction in respect of the applicant's family of whichever of the sums specified in sub-paragraph (3) applies in his case.

(2) The conditions of this paragraph are that—
(a) the applicant's earnings which form part of his average weekly income are less than the lower of either his relevant child care charges or whichever of the deductions specified in paragraph (3) otherwise applies in his case; and
(b) that applicant or, if he is a member of a couple either the applicant or his partner, is in receipt of either working tax credit or child tax credit.

(3) The maximum deduction to which paragraph (1)I above refers is to be—
(a) where the applicant's family includes only one child in respect of whom relevant childcare charges are paid, £175.00 per week;
(b) where the applicant's family includes more than one child in respect of whom relevant childcare charges are paid, £300 per week.

60 Treatment of childcare charges

(1) This paragraph applies where an applicant is incurring relevant childcare charges and—
(a) is a lone parent and is engaged in remunerative work;
(b) is a member of a couple both of whom are engaged in remunerative work; or
(c) is a member of a couple where one member is engaged in remunerative work and the other—
(i) is incapacitated;
(ii) is an in-patient in hospital; or
(iii) is in prison (whether serving a custodial sentence or remanded in custody awaiting trial or sentence).
(d) is not in receipt of Universal Credit. Universal Credit claimants are dealt with under paragraph 39.

(2) For the purposes of sub-paragraph (1) and subject to sub-paragraph (4), a person to whom sub-paragraph(3) applies must be treated as engaged in remunerative work for a period not exceeding 28 weeks during which he—
(a) is paid statutory sick pay;
(b) is paid short-term incapacity benefit at the lower rate under sections 30A to 30E of the SSCBA;
(c) is paid an employment and support allowance;
(d) is paid income support on the grounds of incapacity for work under regulation 4ZA of, and paragraph 7 or 14 of Schedule 1B to, the Income Support (General) Regulations 1987; or
(e) is credited with earnings on the grounds of incapacity for work or limited capability for work under regulation 8B of the Social Security (Credits) Regulations 1975.

(3) This sub-paragraph applies to a person who was engaged in remunerative work immediately before—
(a) the first day of the period in respect of which he was first paid statutory sick pay, short-term incapacity benefit, an employment and support allowance or income support on the grounds of incapacity for work; or
(b) the first day of the period in respect of which earnings are credited, as the case may be.

(4) In a case to which sub-paragraph (2)(d) or (e) applies, the period of 28 weeks begins on the day on which the person is first paid income support or on the first day of the period in respect of which earnings are credited, as the case may be.

(5) Relevant childcare charges are those charges for care to which sub-paragraphs (6) and (7) apply, and is to be calculated on a weekly basis in accordance with subparagraph (10).

(6) The charges are paid by the applicant for care which is provided—
(a) in the case of any child of the applicant's family who is not disabled, in respect of the period beginning on that child's date of birth and ending on the day preceding the first Monday in September
following that child's fifteenth birthday; or
(b) in the case of any child of the applicant's family who is disabled, in respect of the period beginning on that person's date of birth and ending on the day preceding the first Monday in September following
that person's sixteenth birthday.

(7) The charges are paid for care which is provided by one or more of the care providers listed in sub-paragraph

(8) and are not paid—
(a) in respect of the child's compulsory education;
(b) by an applicant to a partner or by a partner to an applicant in respect of any child for whom either or any of them is responsible in accordance with Section 1 paragraph 7 (circumstances in which a person
is treated as responsible or not responsible for another); or
(c) in respect of care provided by a relative of the child wholly or mainly in the child's home.

(8) The care to which sub-paragraph (7) refers may be provided—
(a) out of school hours, by a school on school premises or by a local authority—
(i) for children who are not disabled in respect of the period beginning on their eighth birthday and ending on the day preceding the first Monday in September following their fifteenth birthday; or
(ii) for children who are disabled in respect of the period beginning on their eighth birthday and ending on the day preceding the first Monday in September following their sixteenth birthday;
or
(b) by a childcare provider approved in accordance with the Tax Credit (New Category of Child Care Provider) Regulations 1999; or
(c) by persons registered under Part 2 of the Children and Families (Wales) Measure 2010; or
(d) by a person who is excepted from registration under Part 2 of the Children and Families (Wales) Measure 2010 because the child care that person provides is in a school or establishment referred to in
article 11, 12 or 14 of the Child Minding and Day Care Exceptions (Wales) Order 2010; or
(e) by—
(i) persons registered under section 59(1) of the Public Services Reform (Scotland) Act 2010; or
(ii) local authorities registered under section 83(1) of that Act, where the care provided is child minding or day care of children within the meaning of that Act;
or
(f) by a person prescribed in regulations made pursuant to section 12(4) of the Tax Credits Act 2002; or
(g) by a person who is registered under Chapter 2 or 3 of Part 3 of the Childcare Act 2006; or
(h) by any of the schools mentioned in section 34(2) of the Childcare Act 2006 in circumstances where the requirement to register under Chapter 2 of Part 3 of that Act does not apply by virtue of section
34(2) of that Act; or
(i) by any of the schools mentioned in section 53(2) of the Childcare Act 2006 in circumstances where the requirement to register under Chapter 3 of Part 3 of that Act does not apply by virtue of section 53(2) of that Act; or
(j) by any of the establishments mentioned in section 18(5) of the Childcare Act 2006 in circumstances where the care is not included in the meaning of "childcare" for the purposes of Part 1 and Part 3 of
that Act by virtue of that subsection; or
(k) by a foster parent or kinship carer under the Fostering Services Regulations 2002, the Fostering Services (Wales) Regulations 2003 or the Looked After Children (Scotland) Regulations 2009 in relation
to a child other than one whom the foster parent is fostering or kinship carer is looking after; or
(l) by a provider of personal care within the meaning of paragraph 1 of Schedule 1 to the Health and Social Care Act 2008 (Regulated Activities) Regulations 2010 and being a regulated activity prescribed by those regulations or by a person who is employed, or engaged under a contract for services, to provide care and support by the provider of a domiciliary support service within the meaning of Part 1
of the Regulation and Inspection of Social Care (Wales) Act 2016.
(m) by a person who is not a relative of the child wholly or mainly in the child's home.

(9) Relevant child care charges must be estimated over such period, not exceeding a year, as is appropriate in order that the average weekly charge may be estimated accurately having regard to information as to the amount of that charge provided by the child minder or person providing the care.

(10) For the purposes of sub-paragraph (1) (c) the other member of a couple is incapacitated where—
(a) he is aged not less than 80;
(b) he is aged less than 80 and-
(i) the additional condition specified in paragraph 10 of Schedule 3 (additional condition for the disability premium) to this scheme is treated as applying in this case; and
(ii) he satisfies the conditions or would satisfy it but for his being treated as capable of work by virtue of a determination made in accordance with regulations made under section 171E of the SSCBA;
(c) the other member of the couple would be a member of the support group or a member of the work related activity group by virtue of a determination made in accordance with the Employment and
Support Allowance Regulations 2008 or the Employment and Support Allowance Regulations 2013;
(d) he is, or is treated as, incapable of work and has been so incapable, or has been so treated as incapable, of work in accordance with the provisions of, and regulations made under, Part 12A of the SSCBA (incapacity for work) for a continuous period of not less than 196 days; and for this purpose any two or more separate periods separated by a break of not more than 56 days must be treated as one
continuous period;
(e) he has, or is treated as having, limited capability for work and has had, or been treated as having, limited capability for work in accordance with the Employment and Support Allowance Regulations 2008
for a continuous period of not less than 196 days and for this purpose any two or more separate periods separated by a break of not more than 84 days must be treated as one continuous period;
(f) there is payable in respect of him one or more of the following pensions or allowances—
(i) long-term incapacity benefit or short-term incapacity benefit at the higher rate under Schedule 4 to the SSCBA;
(ii) attendance allowance under section 64 of the SSCBA;
(iii) severe disablement allowance under section 68 of the SSCBA;
(iv) disability living allowance under section 71 of the SSCBA;
(v) personal independence payment under Part 4 of the Welfare Reform Act 2012;
(vi) and AFIP
(vii) increase of disablement pension under section 104 of the SSCBA;
(viii) a pension increase paid as part of a war disablement pension or under an industrial injuries scheme which is analogous to an allowance or increase of disablement pension under subparagraph (ii), (iv), (v) or (vi) above;
(ix) main phase employment and support allowance;
(x) adult disability payment;
(g) a pension or allowance or payment to which sub-paragraph (ii), (iv), (v), (vi) (vii) or (viii) of paragraph
(f) above refers was payable on account of his incapacity but has ceased to be payable in consequence of his becoming a patient, which in this paragraph means a person (other than a person who is serving a sentence of imprisonment or detention in a youth custody institution) who is regarded as receiving free in-patient treatment within the meaning of regulation 2(4) and (5) of the Social Security (Hospital
In-Patients) Regulations 2005;
(h) an attendance allowance under section 64 of the SSCBA or disability living allowance would be payable to that person but for-
(i) a suspension of benefit in accordance with regulations under section 113 (2) of the SSCBA; or
(ii) an abatement as a consequence of hospitalisation
(i) the daily living component of personal independence payment would be payable to that person but
for a suspension of benefit in accordance with regulations under section 86 of the Welfare Reform Act 2012 (hospital in-patients);
(j) an AFIP would be payable to that person but for any suspension of payment in accordance with any terms of the armed and reserve forces compensation scheme which allow for a suspension because a
person is undergoing medical treatment in a hospital or similar institution;
(k) paragraph (f), (g), (h) or (i) would apply to him if the legislative provisions referred to in those paragraphs were provisions under any corresponding enactment having effect in Northern Ireland; or
(l) he has an invalid carriage or other vehicle provided to him by the Secretary of State under section 5(2)(a) of and Schedule 2 to the National Health Service Act 1977 or under section 46 of the National
Health Service (Scotland) Act 1978 or provided by the Department of Health, Social Services and Public Safety in Northern Ireland under Article 30(1) of the Health and Personal Social Services (Northern
Ireland) Order 1972.

(11) For the purposes of sub-paragraph (10), once sub-paragraph (10)(d) applies to the applicant, if he then ceases, for a period of 56 days or less, to be incapable, or to be treated as incapable, of work, that paragraph shall, on his again becoming so incapable, or so treated as incapable, of work at the end of that period, immediately thereafter apply to him for so long as he remains incapable, or is treated as remaining incapable, of work.

(12) For the purposes of sub-paragraph (10), once sub-paragraph (10)(e) applies to the applicant, if he then ceases, for a period of 84 days or less, to have, or to be treated as having, limited capability for work, that paragraph is, on his again having, or being treated as having, limited capability for work at the end of that period, immediately thereafter apply to him for so long as he has, or is treated as having, limited capability for work.

(13) For the purposes of sub-paragraphs (6) and (8)(a), a person is disabled if he is a person—
(a) to whom an attendance allowance or care component of disability living allowance is payable or would be payable but for -
(i) a suspension of benefit in accordance with regulations under section 113 (2) of the SSCBA;
OR
(ii) an abatement as a consequence of hospitalisation;
(aa) in respect of whom child disability payment is payable;
(b) to whom the daily living component of personal independence payment is payable or has ceased to be payable by virtue of a suspension of benefit in accordance with regulations under section 86 of the
Welfare Reform Act 2012 (hospital in-patients);
(ba) in respect of whom adult disability payment is payable, or has ceased to be payable solely by virtue of regulation 28 (effect of admission to hospital on ongoing entitlement to Adult Disability Payment) of
the DAWAP Regulations;
(c) who is registered as blind in a register compiled under section 29 of the National Assistance Act 1948 (welfare services) or as severely sight-impaired in a register kept under section 77 (1) of the Care Act
2014 (registers of sight-impaired adults), in Scotland, has been certified as blind and in consequence he is registered as blind in a register maintained by or on behalf of a council constituted under section 2 of
the Local Government (Scotland) Act 1994; or
(c) who ceased to be registered as blind or severely sight-impaired in such a register compiled under section 29 of the National Assistance Act 1948 (welfare services) or, in Scotland, has been certified as blind and in consequence he is registered as blind in a register maintained by or on behalf of a council constituted under section 2 of the Local Government (Scotland) Act 1994; or
(d) who ceased to be registered blind in such a register within the period beginning 28 weeks before the first Monday in September following that person's fifteenth birthday and ending on the day preceding that person's sixteenth birthday.

(14) For the purposes of sub-paragraph (1) a person on maternity leave, paternity leave, shared parental leave, parental bereavement leave or adoption leave is to be treated as if she is engaged in remunerative work for the period specified in sub-paragraph (15) ("the relevant period") provided that—
(a) in the week before the period of maternity leave, paternity leave, shared parental leave, parental bereavement leave, or adoption leave began she was in remunerative work;
(b) the applicant is incurring relevant child care charges within the meaning of sub-paragraph (5); and
(c) she is entitled to either statutory maternity pay under section 164 of the SSCBA, statutory paternity pay by virtue of section 171ZA or 171ZB of that Act, statutory shared parental pay by virtue of section
171ZU or 171ZV of that Act, statutory parental bereavement pay by virtue of section 171ZZ6 of that Act, statutory adoption pay by of section 171ZL of that Act, maternity allowance under section 35 of that Act or qualifying support.

(15) For the purposes of sub-paragraph (14) the relevant period begins on the day on which the person's maternity, paternity leave, shared parental leave, parental bereavement leave or adoption leave commences and ends on—
(a) the date that leave ends;
(b) if no child care element of working tax credit is in payment on the date that entitlement to maternity allowance, qualifying support (if relevant), statutory maternity pay, statutory paternity pay, statutory shared parental pay, statutory parental bereavement pay or statutory adoption pay ends, the date that entitlement ends; or
(c) if a childcare element of working tax credit is in payment on the date that entitlement to maternity allowance or qualifying support, statutory maternity pay, statutory paternity pay, statutory shared parental pay, statutory parental bereavement pay or statutory adoption pay ends, the date that entitlement to that award of the childcare element of the working tax credit ends, whichever occurs first.

(16) In sub-paragraphs (14) and (15)—
(a) "qualifying support" means income support to which that person is entitled by virtue of paragraph14B of Schedule 1B to the Income Support (General) Regulations 1987; and
(b) "childcare element" of working tax credit means the element of working tax credit prescribed under section 12 of the Tax Credits Act 2002 (child care element).

(17) In sub-paragraphs (6), (8)(a) and (13)(d), "the first Monday in September" means the Monday which first occurs in the month of September of any year.

(18) In this paragraph "applicant" does not include an applicant -
(a) who has, or
(b) whose partner has, or
(c) who jointly with his partner has, an award of Universal Credit.
For treatment of childcare costs and the childcare element of Universal Credit for Universal Credit claimants see Paragraph 39.

61 Additional condition referred to in paragraph 60(10)(b)(i): disability

(1) Subject to sub-paragraph (2), the additional condition referred to in paragraph 25(10)(b)(i) is that either—
(a) the applicant or, as the case may be, the other member of the couple—
(i) is in receipt of one or more of the following benefits: attendance allowance, disability living allowance, personal independence payment, an AFIP, the disability element or the severe disability element of working tax credit as specified in regulation 20(1)(b) and (f) of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002(c), mobility supplement, long term incapacity benefit under Part 2 of the SSCBA or severe disablement allowance under Part 3 of that Act but, in the case of long-term incapacity benefit or severe disablement allowance, only where it is paid in respect of him; or
(ii) was in receipt of long-term incapacity benefit under Part 2 of the SSCBA when entitlement to that benefit ceased on account of the payment of a retirement pension under that Act and the applicant has since remained continuously entitled to Council Tax benefit (for the period prior to 1st April 2013) or a reduction under an authority's scheme (for the period on or after 1st April 2013) and, if the long-term incapacity benefit was payable to his partner, the partner is still a member of the family; or
(iii) was in receipt of attendance allowance or disability living allowance but payment of benefit has been suspended in accordance with regulations made under section 113(2) of the SSCBA or otherwise abated as a consequence of the applicant or his partner becoming a patient within the meaning of paragraph 60(10)(g) (treatment of childcare charges); or
(iv) was in receipt of personal independence payment, but payment of that benefit has been suspended in accordance with section 86 of the Welfare Reform Act 2012 as a consequence of the applicant becoming a patient within the meaning of paragraph 60(10)(g); or
(v) was in receipt of an AFIP but its payment has been suspended in accordance with any terms of the armed and reserve forces compensation scheme which allow for a suspension because a person is undergoing medical treatment in a hospital or similar institution; or
(vi) is provided by the Secretary of State or a clinical commissioning group with an invalid carriage or other vehicle under paragraph 9 of Schedule 1 to the National Health Service Act 2006 or, in Scotland, under section 46 of the National Health Service (Scotland) Act 1978 (provision of services by Scottish Ministers) or receives payments by way of grant from the Secretary of State under paragraph 10(3) of Schedule 1 to the Act of 2006(a) or, in Scotland, by Scottish Ministers under section 46 of the Act of 1978; or
(vii) is blind and in consequence registered in a register compiled by a local authority in Wales under section 29 of the National Assistance Act 1948 (welfare services) or is registered as severely sight-impaired in a register kept by a local authority in England under section 77 (1) of the Care Act 2014 (registers of sight-impaired adults) or, in Scotland, has been certified as blind and in consequence he is registered in a register maintained by or on behalf of a council constituted under section 2 of the Local Government (Scotland) Act 1994; or (b) the applicant, or as the case may be, the other member of the couple—
(i) is, or is treated as, incapable of work in accordance with the provisions of, and regulations made under, Part 12A of the SSCBA(b) (incapacity for work); and
(ii) has been incapable, or has been treated as incapable, of work for a continuous period of not less than—
(aa) in the case of an applicant who is terminally ill within the meaning of section 30B(4)(c) of the SSCBA, 196 days; (bb) in any other case, 364 days.

(2) For the purposes of sub-paragraph (1)(a)(vii), a person who has ceased to be registered as blind or severely sight-impaired on regaining his eyesight is nevertheless to be treated as such and as satisfying the additional condition set out in that sub-paragraph for a period of 28 weeks following the date on which he ceased to be so registered.

(3) For the purposes of sub-paragraph (1)(b), where any two or more periods of incapacity are separated by a break of not more than 56 days, those periods must be treated as one continuous period.

(4) For the purposes of this paragraph, a reference to a person who is or was in receipt of long term incapacity benefit includes a person who is or was in receipt of short-term incapacity benefit at a rate equal to the long term rate by virtue of section 30B(4)(a) of the SSCBA (short-term incapacity benefit for a person who is terminally ill), or who would be or would have been in receipt of short-term incapacity benefit at such a rate but for the fact that the rate of short-term incapacity benefit already payable to him is or was equal to or greater than the long-term rate.

(5) In the case of a person who is a welfare to work beneficiary (a person to whom regulation 13A(1) of the Social Security (Incapacity for Work) (General) Regulations 1995(a) applies, and who again becomes incapable of work for the purposes of Part 12A of the SSCBA) the reference to a period of 56 days in sub-paragraph (3) must be treated as a reference to a period of 104 weeks.

62 Calculation of average weekly income from tax credits

(1) This paragraph applies where an applicant receives a tax credit.

(2) Where this paragraph applies, the period over which a tax credit is to be taken into account shall be the period set out in sub-paragraph (3).

(3) Where the instalment in respect of which payment of a tax credit is made is—
(a) a daily instalment, the period is 1 day, being the day in respect of which the instalment is paid;
(b) a weekly instalment, the period is 7 days, ending on the day on which the instalment is due to be paid;
(c) a two weekly instalment, the period is 14 days, commencing 6 days before the day on which the instalment is due to be paid;
(d) a four weekly instalment, the period is 28 days, ending on the day on which the instalment is due to be paid.

(4) For persons of working age, and for the purposes of this paragraph "tax credit" means child tax credit or working tax credit.

(5) For persons of pension age, and for the purposes of this paragraph, "tax credit" means working tax credit.

(6) In considering the amount of Tax Credits to be used in assessing entitlement to Local Council Tax Support, for persons who are not pensioners, the authority may adjust the assessment to mitigate the impact of any legislative change relating to the manner in which Tax Credits are awarded and calculated, so that any such legislative change does not lead to a significant increase or decrease in the amount of Local Council Tax Support awarded.

63 Disregard of changes in tax, contributions etc

In calculating the applicant's income the authority may disregard any legislative change—
(a) in the basic or other rates of income tax;
(aa) in the Scottish basic or other rates of income tax;
(b) in the amount of any personal tax reliefs under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007;
(c) in the rates of national insurance contributions payable under the SSCBA or in the lower earnings limit or upper earnings limit for Class 1 contributions under that Act, the lower or upper limits applicable to Class 4 contributions under that Act or the amount specified in section 11(4) of that Act (small profits threshold in relation to Class 2 contributions);
(d) in the amount of tax payable as a result of an increase in the weekly rate of Category A, B, C or D retirement pension or any addition thereto or any graduated pension payable under the SSCBA;
(e) in the maximum rate of child tax credit or working tax credit, for a period not exceeding 30 reduction weeks beginning with the benefit week immediately following the date from which the change is effective.

64 Calculation of net profit of self-employed earners

(1) For the purposes of paragraph 45 (calculation of self-employed earners: pensioners), paragraph 55 (earnings of self-employed earners: persons who are not pensioners) and paragraph 59 (calculation of income on a weekly basis) the earnings of an applicant to be taken into account shall be—
(a) in the case of a self-employed earner who is engaged in employment on his own account, the net profit derived from that employment;
(b) in the case of a self-employed earner whose employment is carried on in partnership or is that of a share fisherman within the meaning of the Social Security (Mariners' Benefits) Regulations 1975, his share of the net profit derived from that employment, less—
(i) an amount in respect of income tax and of national insurance contributions payable under the Act calculated in accordance with paragraph 65 (deduction of tax and contributions for self-employed earners); and
(ii)one-half of the amount calculated in accordance with sub-paragraph (11) in respect of any qualifying premium;

(2) For the purposes of sub-paragraph (1)(a) the net profit of the employment must, except where subparagraphs (8) and (9) apply, be calculated by taking into account the earnings of the employment over the
assessment period less—
(a) subject to sub-paragraphs (4) to (7), any expenses wholly and exclusively incurred in that period for the purposes of that employment;
(b) an amount in respect of—
(i) income tax; and
(ii) national insurance contributions payable under the SSCBA, calculated in accordance with paragraph 65; and
(c) one-half of the amount calculated in accordance with sub-paragraph (10) in respect of any qualifying premium.

(3) For the purposes of sub-paragraph (1)(b) the net profit of the employment is, except where sub-paragraph (9) applies, to be calculated by taking into account the earnings of the employment over the assessment period less, subject to paragraphs (4) to (7), any expenses wholly and exclusively incurred in that period for the purposes of that employment.

(4) Subject to paragraph (5), no deduction shall be made under sub- paragraph (2)(a) or (3), in respect of— (a)any capital expenditure;
(b) the depreciation of any capital asset;
(c) any sum employed or intended to be employed in the setting up or expansion of the employment;
(d) any loss incurred before the beginning of the assessment period;
(e) the repayment of capital on any loan taken out for the purposes of the employment;
(f) any expenses incurred in providing business entertainment; and
(g) any debts, except bad debts proved to be such, but this sub-paragraph shall not apply to any expenses incurred in the recovery of a debt.

(5) A deduction shall be made under sub-paragraph (2)(a) or (3) in respect of the repayment of capital on any loan used for—
(a) the replacement in the course of business of equipment or machinery; and
(b) the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair.

(6) The authority must refuse to make a deduction in respect of any expenses under paragraph (2) (a) or (3) where it is not satisfied given the nature and the amount of the expense that it has been reasonably incurred.

(7) For the avoidance of doubt—
(a) a deduction must not be made under paragraph (2)(a) or (3) in respect of any sum unless it has been
expended for the purposes of the business;
(b) a deduction must be made thereunder in respect of—
(i) the excess of any value added tax paid over value added tax received in the assessment period;
(ii) any income expended in the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair;
(iii) any payment of interest on a loan taken out for the purposes of the employment.

(8) Where a claimant is engaged in employment as a child minder the net profit of the employment shall be one-third of the earnings of that employment, less—
(a) an amount in respect of—
(i) income tax; and
(ii) national insurance contributions payable under the SSCBA, calculated in accordance with paragraph 65 (deduction of tax and contributions for self-employed earners); and
(b) one-half of the amount calculated in accordance with paragraph (11) in respect of any qualifying premium.

(9) Where the claimant is a person who is not a pensioner, and the net profit from self-employment calculated in accordance with sub- paragraphs (1) to (7) based on the number of hours stated to be worked, falls to be below the amount specified by the Secretary of State as the national minimum wage, or Living Wage, whichever is more, for that age of person, the net profit will be calculated by multiplying the number of hours stated to be worked by the amount specified by the Secretary of State as the national minimum wage or Living Wage, whichever is more, for that age of person, less -
(a) an amount in respect of—
(i) income tax; and
(ii) national insurance contributions payable under the SSCBA, calculated in accordance with paragraph 65; and
(c) one-half of the amount calculated in accordance with sub-paragraph (11) in respect of any qualifying premium

Where the claimant has started up a new business, this paragraph does not apply for 12 months from the date on which the new business has been started, as long as the claimant can demonstrate an improvement in the level of earnings from the business throughout the period. This can only be the case for one period of 12 months within a period of 5 years starting on the date on which the new business commences.

This exception also applies to an existing business where the minimum income floor would be applied for the first time. In this case, an exception to the minimum income floor can be made for a period of 12 months from the date it would start to apply Only one such period can be allowed in any five years and the exception will continue to apply as long as the claimant can demonstrate that the business is starting to improve.

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

(11) The amount in respect of any qualifying premium shall be calculated by multiplying the daily amount of the qualifying premium by the number equal to the number of days in the assessment period; and for the purposes of this paragraph the daily amount of the qualifying premium shall be determined—
(a) where the qualifying premium is payable monthly, by multiplying the amount of the qualifying premium by 12 and dividing the product by 365;
(b) in any other case, by dividing the amount of the qualifying premium by the number equal to the number of days in the period to which the qualifying premium relates.

(12) In this paragraph, "qualifying premium" means any premium which is payable periodically in respect of a retirement annuity contract or a personal pension scheme and is so payable on or after the date of claim.

65 Calculation of deduction of tax and contributions of self-employed earners

(1) The amount to be deducted in respect of income tax under paragraph 64(1)(b)(i), (2)(b)(i), (8)(a)(i) an (9)(a)(i)(calculation of net profit of self-employed earners) must be calculated—
(a) on the basis of the amount of chargeable income; and
(b) as if that income were assessable to income tax at the basic rate, or in the case of a Scottish taxpayer, the Scottish basic rate, of tax applicable to the assessment period less only the personal reliefs to which
the applicant is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 as are appropriate to his circumstances.

(2) But, if the assessment period 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 must be calculated on a pro rata basis.

(3) The amount to be deducted in respect of national insurance contributions under paragraph 64 (1)(b)(i), (2)(b)(ii), (8)(a)(ii) or (9)(a)(ii) is the total of—
(a) the amount of Class 2 contributions payable under section 11(2) or, as the case may be, 11(8) of the SSCBA at the rate applicable to the assessment period except where the applicant's chargeable income
is less than the amount specified in section 11(4) of that Act (small profits threshold) for the tax year applicable to the assessment period; but if the assessment period is less than a year, the amount specified for that tax year must be reduced pro rata; and
(b) the amount of Class 4 contributions (if any) which would be payable under section 15 of the SSCBA (Class 4 contributions recoverable under the Income Tax Acts) at the percentage rate applicable to the
assessment period on so much of the chargeable income as exceeds the lower limit but does not exceed the upper limit of profits and gains applicable for the tax year applicable to the assessment period; but if the assessment period is less than a year, those limits must be reduced pro rata.

(4) In this paragraph "chargeable income" means—
(a) except where paragraph (b) applies, the earnings derived from the employment less any expenses deducted under sub-paragraph (3)(a) or, as the case may be, (3) of paragraph 64;
(b) in the case of employment as a child minder, one-third of the earnings of that employment
(c) in a case where a person is not a pensioner, and the net profit from self-employment calculated in accordance with sub- paragraphs (1) to (7) based on the number of hours stated to be worked, falls to be below the amount specified by the Secretary of State as the national minimum wage or Living Wage, whichever is more, for that age of person, and the business is not a new business within the first 12 months of trading, the amount arrived at by multiplying the number of hours stated to be worked by the amount specified by the Secretary of State as the national minimum wage or Living Wage, whichever is more, for that age of person.

Chapter 7 - Capital

66 Calculation of capital

(1) The capital of an applicant(a) to be taken into account must be, subject to sub-paragraph (2), the whole of his capital calculated in accordance with this Part.

(2) There must be disregarded from the calculation of an applicant's capital under subparagraph (1), any capital, where applicable, specified in -
(a) Schedule 9 (capital disregards: pensioners) in relation to pensioners
(b) Schedule 10 (capital disregards: persons who are not pensioners), in relation to persons who are not pensioners.

(3) In the case of an applicant who is a pensioner, his capital is to be treated as including any payment made to him by way of arrears of -
(a) child tax credit;
(b) working tax credit;
(c) state pension credit,

If the payment was made in respect of a period for the whole or part of which a reduction under this scheme was allowed before those arrears were paid.

(4) The capital of a child or young person who is a member of the family of an applicant must not be treated as capital of the applicant.

67 Income treated as capital: persons who are not pensioners

(1) Any bounty derived from employment to which paragraph 9 of Schedule 7 applies (sums disregarded in the calculation of earnings: persons who are not pensioners) and paid at intervals of at least one year is to be treated as capital.

(2) Any amount by way of a refund of income tax deducted from profits or emoluments chargeable to income tax under Schedule D or E is to be treated as capital.

(3) Any holiday pay which is not earnings under paragraph 43(1)(d) or 53 (1) (d) (earnings of employed earners) is to be treated as capital.

(4) Except any income derived from capital disregarded under paragraphs 4, 5, 7, 11, 17, 30 to 33, 50 or 51 of Schedule 10 (capital disregards: persons who are not pensioners), any income derived from capital is to be treated as capital but only from the date it is normally due to be credited to the applicant's account.

(5) In the case of employment as an employed earner, any advance of earnings or any loan made by the applicant's employer is to be treated as capital.

(6) Any charitable or voluntary payment which is not made or due to be made at regular intervals, other than a payment which is made under or by the Trusts, the Fund, the Eileen Trust, MFET Limited, the Skipton Fund, the Caxton Foundation, the Independent Living Fund (2006) or the London Bombings Charitable Relief Fund, is to be treated as capital.

(7) There is to be treated as capital the gross receipts of any commercial activity carried on by a person in respect of which assistance is received under the self-employment route, but only in so far as those receipts were payable into a special account during the period in which that person was receiving such assistance.

(8) Any arrears of subsistence allowance which are paid to an applicant as a lump sum must be treated as capital.

(9) Any arrears of working tax credit or child tax credit must be treated as capital.

68 Calculation of capital in the United Kingdom

Capital which an applicant possesses in the United Kingdom is to 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 encumbrance secured on it.

69 Calculation of capital outside the United Kingdom

Capital which an applicant possesses in a country outside the United Kingdom is to be calculated—
(a) in a case where 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 encumbrances secured on it.

70 Notional capital

(1) An applicant is to be treated as possessing capital of which he has deprived himself for the purpose of securing entitlement to a reduction under this scheme or increasing the amount of that reduction except to the extent that that capital is reduced in accordance with paragraph 71 (diminishing notional capital rule).

(2) Except in the case of—
(a) a discretionary trust; or
(b) a trust derived from a payment made in consequence of a personal injury; or
(c) any loan which would be obtained only if secured against capital disregarded under Schedule 9; or
(d) a personal pension scheme, occupational pension scheme or a payment made by the Board of the Pension Protection Fund; or
(e) any sum to which paragraph 50(2)(a) of Schedule 10 (capital disregards: persons who are not pensioners) applies which is administered in the way referred to in paragraph 50(1)(a); or
(f) any sum to which paragraph 51(a) of Schedule 10 refers; or
(g) child tax credit; or
(h) working tax credit,
any capital which would become available to the applicant upon application being made, but which has not been acquired by him, is to 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 sub-paragraph (4), made—
(a) to a third party in respect of a single applicant or a member of the family (but not a member of the third party's family) must, 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, be treated as possessed by that single applicant or, as the case may be, by
that member;
(b) to a third party in respect of a single applicant or in respect of a member of the family (but not a member of the third party's family) must, where it is not a payment referred to in sub-paragraph (a), be
treated as possessed by that single applicant or by that member to the extent that it is used for the food, ordinary clothing or footwear, household fuel or rent of that single applicant or, as the case may
be, of any member of that family or is used for any Council Tax or water charges for which that applicant or member is liable;
(c) to a single applicant or a member of the family in respect of a third party (but not in respect of another member of the family) must be treated as possessed by that single applicant 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.

(4) Paragraph (3) does not apply in respect of a payment of capital made—
(a) under or by any of the Trusts, the Fund, the Eileen Trust, MFET Limited, the Independent Living Fund (2006), the Skipton Fund, the Caxton Foundation, or the London Bombings Relief Charitable Fund;
(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) of the Jobseeker's Allowance Regulations 1996;
(ii) in a training scheme specified in regulation 75(1)(b)(ii) of those Regulations;
(iii) in the Intense Activity Period specified in regulation 75(1)(a)(iv) of those Regulations;
(iv) in a qualifying course within the meaning specified in regulation 17A(7) of those Regulations;
or
(v) in the Flexible New Deal specified in regulation 75(1)(a)(v) of those Regulations;
(c) in respect of a person's participation in the Work for Your Benefit Pilot Scheme;
(d) in respect of a person's participation in the Mandatory Work Activity Scheme;
(e) in respect of an applicant's participation in the Employment, Skills and Enterprise Scheme or any scheme arising from the Jobseeker's Allowance (Schemes for Assisting People to Obtain Employment) regulations 2013.
(f) 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 does not possess, or is not treated as possessing, any other income apart from that payment.

(5) Where an applicant stands in relation to a company in a position analogous to that of a sole owner or partner in the business of that company, he may 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 must, notwithstanding paragraph 66 (calculation of capital) be disregarded; and
(b) he must, subject to sub-paragraph

(6), 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 apply for the purposes of calculating that amount as if it were actual capital which he does possess. (6) For so long as the applicant undertakes activities in the course of the business of the company, the amount
which he is treated as possessing under sub-paragraph (3) is to be disregarded.

(7) Where an applicant is treated as possessing capital under any of sub-paragraphs (1), (2) or (3) the foregoing provisions of this Chapter apply for the purposes of calculating its amount as if it were actual capital which he does possess.

(8) A person who is a pensioner who disposes of capital for the purpose of -
(a) reducing or paying a debt owed by the applicant; or
(b) purchasing goods or services if the expenditure was reasonable in the circumstances of the applicant's case, is to be regarded as not depriving himself of it.

71 Diminishing notional capital rule: pensioners

(1) Where an applicant is treated as possessing capital under paragraph 70(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 subparagraph (2) are satisfied;
or
(ii) a week which follows that relevant week and which satisfies those conditions, will be reduced by an amount determined under sub-paragraph (3);
(b) in the case of a week in respect of which sub-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 sub-paragraph (4) is satisfied, will be reduced by the amount determined under sub-paragraph (4).

(2) This sub-paragraph applies to a reduction week where the applicant satisfies the conditions that—
(a) he is in receipt of a reduction under a scheme; and
(b) but for paragraph 70 (1), he would have received a greater reduction under that scheme in that week.

(3) In a case to which sub-paragraph (2) applies, the amount of the reduction in the amount of capital he is treated as possessing for the purposes of sub-paragraph (1)(a) will be equal to the aggregate of—
(a) an amount equal to the additional amount of the reduction in Council Tax to which subparagraph (2)(b) refers;
(b) where the applicant has also claimed state pension credit, the amount of any state pension credit or any additional amount of state pension credit to which he would have been entitled in respect of the benefit week to which sub-paragraph (2) refers but for the application of regulation 21(1) of the State Pension Credit Regulations 2002 (notional capital);
(c) where the applicant has also claimed housing benefit, the amount of any housing benefit or any additional amount of housing benefit to which he would have been entitled in respect of the whole or part of that benefit week to which paragraph (2) refers but for the application of regulation 47(1) of the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 (notional capital);
(d) where the applicant has also claimed a jobseeker's allowance, the amount of an income-based jobseeker's allowance to which he would have been entitled in respect of the benefit week to which sub-paragraph (2) refers but for the application of regulation 113 of the Jobseeker's Allowance Regulations (notional capital);
(e) where the applicant has also claimed an employment and support allowance, the amount of an income-related employment and support allowance to which he would have been entitled in respect of the benefit week to which sub-paragraph (2) refers but for the application of regulation 115 of the Employment and Support Allowance Regulations (notional capital).

(4) Subject to sub-paragraph (7), for the purposes of sub-paragraph (1)(b), the condition is that the applicant would have been entitled to a reduction in Council Tax under the authority's scheme in the relevant week but for paragraph 70 (1).

(5) In such a case the amount of reduction in the amount of the capital which he is treated as possessing for the purposes of sub-paragraph (1)(b) is equal to the aggregate of—
(a) the amount of the reduction in Council Tax to which the applicant would have been entitled in the relevant week but for paragraph 70 (1);
(b) if the applicant would, but for regulation 21 of the State Pension Credit Regulations 2002, have been entitled to state pension credit in respect of the benefit week, within the meaning of regulation 1(2) of
those Regulations (interpretation), which includes the last day of the relevant week, the amount to which he would have been entitled;
(c) if the applicant would, but for regulation 47(1) of the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006, have been entitled to housing benefit or
to an additional amount of housing benefit in respect of the benefit week which includes the last day of the relevant week, the amount which is equal to—
(i) in a case where no housing benefit is payable, the amount to which he would have been entitled; or
(ii) in any other case, the amount equal to the additional amount of housing benefit to which he would have been entitled.
(d) if the applicant would, but for regulation 113 of the Jobseeker's Allowance Regulations, have been entitled to an income-based jobseeker's allowance in respect of the benefit week, within the meaning
of regulation 1(3) of those Regulations (interpretation), which includes the last day of the relevant week, the amount to which he would have been entitled; and
(e) if the applicant would, but for regulation 115 of the Employment and Support Allowance Regulations, have been entitled to an income-related employment and support allowance in respect of the benefit week, within the meaning of regulation 2(1) of those Regulations (interpretation), which includes the
last day of the relevant week, the amount to which he would have been entitled.

(6) But if the amount mentioned in paragraph (a), (b), (c), (d), or (e) of sub-paragraph (5) ("the relevant amount") is in respect of a part-week, the amount that is to be taken into account under that paragraph is to be determined by—
(a) dividing the relevant amount by the number equal to the number of days in that part week, and
(b) multiplying the result of that calculation by 7.

(7) The amount determined under sub-paragraph (5) must be re-determined under that sub-paragraph if the applicant makes a further application for a reduction in Council Tax under the authority's scheme and the conditions in sub-paragraph (8) are satisfied, and in such a case -
(a) paragraphs (a) to (e) of sub-paragraph (5) shall apply as if for the words "relevant week" there were substituted the words "relevant subsequent week"; and
(b) subject to sub-paragraph (9), the amount as re-determined shall have effect from the first week following the relevant subsequent week in question.

(8) The conditions are that—
(a) a further claim is made 26 or more weeks after—
(i) the date on which the applicant made a claim for a Council Tax reduction in respect of which he was first treated as possessing the capital in question under paragraph70(1) ;
(ii) in a case where there has been at least one re-determination in accordance with subparagraph (5), the date on which he last made a claim for a Council Tax reduction which resulted in the weekly amount being re-determined, or
(iii) the date on which he last ceased to be entitled to a Council Tax reduction under the authority's scheme, whichever last occurred; and
(b) the applicant would have been entitled to a reduction under the authority's scheme but for paragraph 70(1).

(9) The amount as re-determined pursuant to sub-paragraph (7) shall not have effect if it is less than the amount which applied in that case immediately before the redetermination and in such a case the higher amount shall continue to have effect.

(10) For the purposes of this paragraph—
"part-week"—
(a) in sub-paragraph (5)(a) means a period of less than a week for which a reduction under a scheme is
allowed;
(b) in sub-paragraph (5)(b) means a period of less than a week for which housing benefit is payable;
(c) in sub-paragraph (5)(c), (d) or (e) means—
(i) a period of less than a week which is the whole period for which income support, an income related
employment and support allowance or, as the case may be, an income-based
jobseeker's allowance is payable; and
(ii) any other period of less than a week for which it is payable;
"relevant week" means the reduction week or part-week in which the capital in question of which the applicant has deprived himself within the meaning of paragraph 70(1)
(a) was first taken into account for the purpose of determining his entitlement to a Council Tax reduction;
or
(b) was taken into account on a subsequent occasion for the purpose of determining or re-determining his entitlement to a Council Tax reduction on that subsequent occasion and that determination or redetermination resulted in his beginning to receive, or ceasing to receive, a reduction under the authority's scheme,

and where more than one reduction week is identified by reference to paragraphs (a) and (b) of this subparagraph the later or latest such benefit week or, as the case may be, the later or latest such part-week;
"relevant subsequent week" means the reduction 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.

72 Diminishing notional capital rule: persons who are not pensioners

(1) Where an applicant is treated as possessing capital under paragraph 70(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 subparagraph (2) are satisfied;
or
(ii) a week which follows that relevant week and which satisfies those conditions, is to be reduced by an amount determined under sub-paragraph (3) or (4);
(b) in the case of a week in respect of which sub-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 sub-paragraph (5) or (8) is satisfied, is to be reduced by the amount determined under sub-paragraph (6) or (9).

(2) This sub-paragraph applies to a reduction week (or, in the case of persons who are not pensioners, part week) where the applicant satisfies the conditions that—
(a) he is in receipt of a reduction in Council Tax under this scheme; and
(b) but for paragraph 70(1), he would have received a greater reduction in Council Tax under this scheme in that week.

(3) In a case to which sub-paragraph (2) applies, the amount of the reduction in the amount of capital he is treated as possessing for the purposes of sub-paragraph (1)(a) is equal to the aggregate of—
(a) an amount equal to the additional amount of the reduction in Council Tax to which sub-paragraph (2)(b) refers;
(b) where the applicant has also claimed housing benefit, the amount of any housing benefit or any additional amount of that benefit to which he would have been entitled in respect of the whole or part of the reduction week to which subparagraph (2) refers but for the application of regulation 49(1) of the Housing Benefit Regulations (notional capital);
(c) where the applicant has also claimed income support, the amount of income support to which he would have been entitled in respect of the whole or part of the reduction week to which sub-paragraph (2) refers but for the application of regulation 51(1) of the Income Support (General) Regulations 1987 (notional capital);
(d) where the applicant has also claimed a jobseeker's allowance, the amount of an income-based jobseeker's allowance to which he would have been entitled in respect of the whole or part of the
reduction week to which sub-paragraph (2) refers but for the application of regulation 113 of the Jobseeker's Allowance Regulations 1996 (notional capital); and
(e) where the applicant has also claimed an employment and support allowance, the amount of an income-related employment and support allowance to which he would have been entitled in respect of the whole or part of the reduction week to which sub-paragraph (2) refers but for the application of regulation 115 of the Employment and Support Allowance Regulations 2008 (notional capital).

(4) Subject to sub-paragraph (7), for the purposes of paragraph (1)(b) the condition is that the applicant would have been entitled to a reduction in Council Tax in the relevant week but for paragraph 70(1).

(5) In such a case the amount of the reduction in the amount of capital he is treated as possessing must be equal to the aggregate of—
(a) the amount of Council Tax benefit to which the applicant would have been entitled in the relevant week but for paragraph70(1);
(b) if the applicant would, but for regulation 49(1) of the Housing Benefit Regulations 2006, have been entitled to housing benefit or to an additional amount of housing benefit in respect of the benefit week
which includes the last day of the relevant week, the amount which is equal to—
(i) in a case where no housing benefit is payable, the amount to which he would have been entitled; or
(ii) in any other case, the amount equal to the additional amount of housing benefit to which he would have been entitled;
(c) if the applicant would, but for regulation 51(1) of the Income Support (General) Regulations 1987, have been entitled to income support in respect of the benefit week, within the meaning of regulation 2(1) of those Regulations (interpretation), which includes the last day of the relevant week, the amount to which he would have been entitled;
(d) if the applicant would, but for regulation 113 of the Jobseeker's Allowance Regulations 1996, have been entitled to an income-based jobseeker's allowance in respect of the benefit week, within the
meaning of regulation 1(3) of those Regulations (interpretation), which includes the last day of the relevant week, the amount to which he would have been entitled; and
(e) if the applicant would, but for regulation 115 of the Employment and Support Allowance Regulations 2008, have been entitled to an income-related employment and support allowance in respect of the
benefit week, within the meaning of regulation 2(1) of those Regulations (interpretation), which includes the last day of the relevant week, the amount to which he would have been entitled.

(6) But if the amount mentioned in paragraph (a), (b), (c), (d) or (e) of sub-paragraph (5) ("the relevant amount") is in respect of a part-week, the amount that is to be taken into account under that paragraph is to be determined by—
(a) dividing the relevant amount by the number equal to the number of days in that part-week, and
(b) multiplying the result of that calculation by 7.

(7) The amount determined under sub-paragraph (5) is to be re-determined under the appropriate subparagraph if the applicant makes a further claim for a reduction in Council Tax and the conditions in subparagraph (8) are satisfied, and in such a case—
(a) paragraphs (a) to (e) of sub-paragraph (5) apply as if for the words "relevant week" there were substituted the words "relevant subsequent week"; and
(b) subject to sub-paragraph (9), the amount as re-determined has effect from the first week following the relevant subsequent week in question.

(8) The conditions are that—
(a) a further claim is made 26 or more weeks after—
(i) the date on which the applicant made a claim for a reduction in Council Tax in respect of which he was first treated as possessing the capital in question under paragraph 43(1);
(ii) in a case where there has been at least one re-determination in accordance with subparagraph (7), the date on which he last made a claim for a reduction in Council Tax which resulted in the weekly amount being re-determined, or
(iii) the date on which he last ceased to be entitled to a reduction in Council Tax, whichever last occurred; and
(b) the applicant would have been entitled to a reduction in Council Tax under this scheme but for paragraph 70(1).

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

(10) For the purposes of this paragraph—
"part-week"—
(a) in relation to an amount mentioned in sub-paragraph (5)(a), means a period of less than a week for which a reduction in Council Tax under this scheme is allowed;
(b) in relation to an amount mentioned in sub-paragraph (5)(b), means a period of less than a week for which housing benefit is payable;
(c) in relation to an amount mentioned in sub-paragraph (5)(c), (d) or (e) or, means—
(i) a period of less than a week which is the whole period for which income support, an income related employment and support allowance or, as the case may be, an income-based jobseeker's allowance is payable; and
(ii) any other period of less than a week for which it is payable;
"relevant week" means the reduction week or part-week in which the capital in question of which the applicant has deprived himself within the meaning of paragraph 70(1)—
(d) was first taken into account for the purpose of determining his entitlement to a reduction in Council Tax; or
(e) was taken into account on a subsequent occasion for the purpose of determining or re-determining his entitlement to a reduction in Council Tax on that subsequent occasion and that determination or redetermination resulted in his beginning to receive, or ceasing to receive, a reduction in Council Tax; and where more than one reduction week is identified by reference to paragraphs (a) and (b) of this definition, the later or latest such reduction week or, as the case may be, the later or latest such part week is the relevant week;
"relevant subsequent week" means the reduction 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.

73 Capital jointly held

Except where an applicant possesses capital which is disregarded under paragraph 70 (6) (notional capital), where an applicant and one or more persons are beneficially entitled in possession to any capital asset they must be treated, in the absence of evidence to the contrary, 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 apply for the purposes of calculating the amount of capital which the applicant is treated as possessing as if it were actual capital which the applicant does possess.

74 Calculation of tariff income from capital: pensioners

The capital of an applicant who is a pensioner, calculated in accordance with this Part, is to be treated as if it were a weekly income of—
(a) £1 for each £500 in excess of £10,000 but not exceeding £16,000; and
(b) £1 for any excess which is not a complete £500.

75 Calculation of tariff income from capital: persons who are not pensioners

The capital of a person who is not a pensioner, calculated in accordance with this part, is to be treated as equivalent to a weekly income of-
(a) £1 for each complete £250 in excess of £6,000 but not exceeding £16,000; and
(b) £1 for any excess which is not a complete £250.