The Social Security Benefit (Computation of Earnings) (Amendment) Regulations 2007

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Social Security (Computation of Earnings) Regulations 1996.

Regulation 2(2) amends regulation 12 to remove the provision which disregards as earnings of a self-employed earner certain payments received in connection with the provision of accommodation by the claimant. These payments will be disregarded from a claimant’s net profit under regulation 13(2)(a).

Regulation 2(3) amends regulation 13 to provide that there will be no deduction of expenses from a self-employed earner’s net profit in respect of any expenses incurred in connection with the provision of accommodation by the claimant to another person in the dwelling that the claimant occupies as his home.

Regulation 2(4) amends Schedule 1 to provide a disregard of £20 per week in respect of payments received from a sub-tenancy arrangement. Where the payments are less than £20 per week, the disregard will be the whole of the payments. Previously, the regulations provided for a basic disregard and a further disregard where the payments included an amount for heating.

Regulation 2(5) also amends Schedule 1 to provide that where a claimant’s employment as an employed earner ends before the claimant becomes entitled to certain benefits, payments made in respect of that employment (with some exceptions) will be disregarded in the calculation of the claimant’s earnings.

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business, charities and voluntary bodies.