The Social Security (Back to Work Bonus) Regulations 1996

Explanatory Note

(This note is not part of the Regulations)

The Regulations contained in this instrument are made by virtue of provisions in the Jobseekers Act 1995 (c. 18) (“the 1995 Act”). This instrument is made before the end of the period of 6 months beginning with the coming into force of those provisions; the regulations in it are therefore exempted from the requirement in section 172(1) of the Social Security Administration Act 1992 (c. 5) to refer proposals to make these Regulations to the Social Security Advisory Committee and are made without reference to that Committee.

Section 26 of the 1995 Act introduces the back to work bonus for persons who are or have been entitled to income support or a jobseeker’s allowance.

Regulation 1 contains provisions relating to citation, commencement and interpretation.

Regulations 2 to 5 contain extended definitions of terms used elsewhere in the Regulations. Periods of entitlement to a qualifying benefit (regulations 2 and 3) consist of days of entitlement to income support or a jobseeker’s allowance but separated periods are in some circumstances joined together to form a single period of entitlement to a qualifying benefit. Regulation 5 contains rules specifying circumstances in which some periods of entitlement to income support or a jobseeker’s allowance do not count for the purposes of the period of entitlement to a qualifying benefit.

The waiting period (regulation 6) is the first 91 days of the period of entitlement to a qualifying benefit.

Regulation 7 specifies the requirements for the bonus, one of which is that the claimant returns to work or increases his hours of, or earnings from, work, with the result that he is no longer entitled to either income support or a jobseeker’s allowance (“the work condition”).

Regulation 8 details the method of calculating the amount of bonus payable and regulation 9 enables the Secretary of State to issue estimates to claimants of their projected level of bonus.

Regulations 10 to 16 contain detailed provisions as to couples who separate or to people who become couples.

Regulations 17 to 21 contain provisions specific to persons attaining pensionable age and trainees, and those who die or are involved in a trade dispute.

The bonus is to be treated as capital for the purpose of assessing the means of claimants to other income-related benefits (regulation 22). Regulations 23 to 24 contain details of claims for the bonus, regulation 25 deals with payments and regulation 26 with transitional matters.

An assessment of the costs to business of applying these Regulations has been placed in the Libraries of both Houses of Parliament. Copies can be obtained by post from the Department of Social Security, Room 09/03, Adelphi, 1–11 John Adam Street, London WC2N 6HT.