The Social Security Benefit (Computation of Earnings) Regulations 1996

Calculation of net earnings of employed earners E+W+S

10.—(1) For the purposes of regulations 3 (calculation of earnings) and 6 (calculation of earnings of employed earners) the earnings of a claimant derived from employment as an employed earner to be taken into account shall, subject to paragraphs (2) and (3), be his net earnings.

(2) Except in a case to which paragraph (3) applies, there shall be disregarded or deducted as appropriate from a claimant’s net earnings—

(a) any sum, where applicable, specified in Schedule 1; and

(b) any relevant child care charges to which Schedule 2 applies up to a maximum deduction in respect of any claimant of £60 per week.

(3) In the case of entitlement to [F1 carer’s allowance] under section 70 of the Contributions and Benefits Act M1 there shall be disregarded or deducted as appropriate from a claimant’s net earnings—

(a) any sum, where applicable, specified in Schedule 1; and

(b) any care charges to which Schedule 3 applies up to a maximum deduction, in respect of such care charges incurred by any claimant, of 50% of his net earnings less those sums, if any, specified in Schedule 1 which are disregarded.

(4) For the purposes of paragraph (1) net earnings shall be calculated by taking into account the gross earnings of the claimant from that employment less—

(a) any amount deducted from those earnings by way of—

(i) income tax;

(ii) primary Class 1 contributions under the Contributions and Benefits Act; and

(b) one half of any sum paid by the claimant in respect of a pay period by way of a contribution towards an occupational or personal pension scheme.

Textual Amendments

F1 Words in Sch. 3 substituted (1.4.2003) by Social Security Benefit (Computation of Earnings) (Amendment) Regulations 2002 (S.I. 2002/2823), regs. 1(b), 2(4), (5)(c)

Marginal Citations

M1 Section 70 was amended by S.I. 1994/2556.