12. In the case of a claimant who—
(a)has been engaged in employment as a member of any territorial or reserve force prescribed in Part 1 of Schedule 1; and
(b)by reason of that employment has failed to satisfy any of the conditions for entitlement to an income-related allowance other than paragraph 6(1)(a) of Schedule 1 to the Act (income not in excess of the applicable amount),
any earnings from that employment paid in respect of the period in which the claimant was not entitled to an income-related allowance.