The Social Security (Miscellaneous Amendments) (No. 4) Regulations 1998

Common amendments

7.—(1) At the end of each of the regulations specified in paragraph (2) of this regulation (which relate to income to be treated as capital) there shall be added the following paragraph—

“(7) There shall be treated as capital the gross receipts of any commercial activity carried on by a person in respect of which assistance is received under an employment programme specified in regulation 75(1)(a)(ii)(aa)(ii) of the Jobseeker’s Allowance Regulations 1996 (self-employment route of the Employment Option of the New Deal), but only in so far as those receipts were payable into a special account (as defined for the purposes of Chapter IVA of Part VIII of those Regulations) during the period in which that person was receiving such assistance.”.

(2) The regulations for the purposes of paragraph (1) of this regulation are—

(a) regulation 31 of the Council Tax Benefit Regulations;

(b) regulation 34 of the Disability Working Allowance Regulations;

(c) regulation 31 of the Family Credit Regulations;

(d) regulation 40 of the Housing Benefit Regulations.

(3) For each of the numbered paragraphs of the Schedules specified in paragraph (4) of this regulation (which relate to sums to be disregarded in the calculation of income other than earnings), there shall be substituted the following paragraph—

• “Any mandatory top-up payment made to a person pursuant to section 2 of the Employment and Training Act 1973 in respect of that person’s participation in an employment programme specified in—

  (a)

  regulation 75(1)(a)(ii)(aa)(ii) of the Jobseeker’s Allowance Regulations 1996 (self-employment route of the Employment Option of the New Deal);

  (b)

  regulation 75(1)(a)(ii)(bb) of those Regulations (Voluntary Sector Option of the New Deal); or

  (c)

  regulation 75(1)(a)(ii)(cc) of those Regulations (Environment Task Force Option of the New Deal).”.

(4) The respective paragraph numbers and Schedules for the purposes of paragraph (3) of this regulation(1) are—

(a) paragraph 64 of Schedule 4 to the Council Tax Benefit Regulations;

(b) paragraph 57 of Schedule 3 to the Disability Working Allowance Regulations;

(c) paragraph 59 of Schedule 2 to the Family Credit Regulations;

(d) paragraph 64 of Schedule 4 to the Housing Benefit Regulations;

(e) paragraph 62 of Schedule 9 to the Income Support Regulations.

(5) At the end of each of the Schedules specified in paragraph (6) of this regulation (which relate to income other than earnings to be disregarded) there shall be added the following paragraph bearing the specified respective paragraph number—

“—

(1) Subject to sub-paragraph (2), in respect of a person who is receiving, or who has received, assistance under an employment programme specified in regulation 75(1)(a)(ii)(aa)(ii) of the Jobseeker’s Allowance Regulations 1996(2) (self-employment route of the Employment Option of the New Deal), any payment to that person—

(a) to meet expenses wholly and necessarily incurred whilst carrying on the commercial activity;

(b) which is used or intended to be used to maintain repayments on a loan taken out by that person for the purpose of establishing or carrying on the commercial activity,

in respect of which such assistance is or was received.

(2) Sub-paragraph (1) shall apply only in respect of payments which are paid to that person from the special account as defined for the purposes of Chapter IVA of Part VIII of the Jobseeker’s Allowance Regulations 1996.”.

(6) The respective paragraph numbers and Schedules for the purposes of paragraph (5) of this regulation(3) are—

(a) paragraph 66 of Schedule 4 to the Council Tax Benefit Regulations;

(b) paragraph 59 of Schedule 3 to the Disability Working Allowance Regulations;

(c) paragraph 61 of Schedule 2 to the Family Credit Regulations;

(d) paragraph 66 of Schedule 4 to the Housing Benefit Regulations.

(7) At the end of each of the numbered paragraphs of the Schedules specified in paragraph (8) (which relate to sums to be disregarded in the calculation of capital), there shall be added the following sub-paragraphs—

“(3) In the case of a person who is receiving assistance under an employment programme specified in regulation 75(1)(a)(ii)(aa)(ii) of the Jobseeker’s Allowance Regulations 1996 (self-employment route of the Employment Option of the New Deal), the assets acquired by that person for the purpose of establishing or carrying on the commercial activity in respect of which such assistance is being received.

(4) In the case of a person who has ceased carrying on the commercial activity in respect of which assistance was received as specified in sub-paragraph (3), the assets relating to that activity for such period as may be reasonable in the circumstances to allow for disposal of any such asset.”.

(8) The respective paragraph numbers and Schedules for the purposes of paragraph (7) of this regulation are—

(a) paragraph 7 of Schedule 5 to the Council Tax Benefit Regulations;

(b) paragraph 6 of Schedule 4 to the Disability Working Allowance Regulations;

(c) paragraph 6 of Schedule 3 to the Family Credit Regulations(4);

(d) paragraph 7 of Schedule 5 to the Housing Benefit Regulations(5);

(e) paragraph 6 of Schedule 10 to the Income Support Regulations(6).

(9) For the numbered paragraph of each of the Schedules specified in paragraph (10) of this regulation (which relate to sums to be disregarded in the calculation of capital), there shall be substituted the following paragraph—

• “Any mandatory top-up payment made to a person pursuant to section 2 of the Employment and Training Act 1973 in respect of that person’s participation in an employment programme specified in—

  (a)

  regulation 75(1)(a)(ii)(aa)(ii) of the Jobseeker’s Allowance Regulations 1996 (self-employment route of the Employment Option of the New Deal);

  (b)

  regulation 75(1)(a)(ii)(bb) of those Regulations (Voluntary Sector Option of the New Deal); or

  (c)

  regulation 75(1)(a)(ii)(cc) of those Regulations (Environment Task Force Option of the New Deal),

  but only for a period of 52 weeks from the date of receipt of the payment.”.

(10) The respective paragraph numbers and Schedules for the purposes of paragraph (9) of this regulation(7) are—

(a) paragraph 53 of Schedule 5 to the Council Tax Benefit Regulations;

(b) paragraph 51 of Schedule 4 to the Disability Working Allowance Regulations;

(c) paragraph 52 of Schedule 3 to the Family Credit Regulations;

(d) paragraph 53 of Schedule 5 to the Housing Benefit Regulations;

(e) paragraph 50 of Schedule 10 to the Income Support Regulations.

(11) At the end of each of the Schedules specified in paragraph (12) of this regulation (which relate to sums to be disregarded in the calculation of capital) there shall be added the following paragraph bearing the specified respective paragraph number—

• “In the case of a person who is receiving, or who has received, assistance under an employment programme specified in regulation 75(1)(a)(ii)(aa)(ii) of the Jobseeker’s Allowance Regulations 1996 (self-employment route of the Employment Option of the New Deal), any sum of capital which is acquired by that person for the purpose of establishing or carrying on the commercial activity in respect of which such assistance is or was received but only for a period of 52 weeks from the date on which that sum was acquired.”.

(12) The respective paragraph numbers and Schedules for the purposes of paragraph (11) of this regulation(8) are—

(a) paragraph 55 of Schedule 5 to the Council Tax Benefit Regulations;

(b) paragraph 53 of Schedule 4 to the Disability Working Allowance Regulations;

(c) paragraph 54 of Schedule 3 to the Family Credit Regulations;

(d) paragraph 55 of Schedule 5 to the Housing Benefit Regulations;

(e) paragraph 52 of Schedule 10 to the Income Support Regulations.

(1)

The paragraphs referred to in paragraph (4) were inserted by S.I.1997/2863.

(2)

S.I.1996/207; the relevant amending instrument was S.I.1998/1174.

(3)

The preceding paragraphs to those referred to in paragraph (6) were inserted by S.I.1997/2863.

(4)

Paragraph 6 was amended by S.I.1990/1774.

(5)

Paragraph 7 was amended by S.I.1990/1775.

(6)

Paragraph 6 was amended by S.I.1990/1776.

(7)

The paragraphs referred to in paragraph (10) were inserted by S.I.1997/2863.

(8)

The preceding paragraphs to those referred to in paragraph (12) were inserted by S.I.1997/2863.