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Regulation 42(2)

SCHEDULE 7N.I.Capital to be disregarded

Modifications etc. (not altering text)

PART IN.I.Capital to be disregarded generally

1.  Any premises or land acquired for occupation by the claimant which he intends to occupy as his home within 26 weeks of the date of acquisition or such longer period as is reasonable in the circumstances to enable the claimant to obtain possession and commence occupation of the premises or land.N.I.

Commencement Information

I1Sch. 7 para. 1 in operation at 20.11.2006, see reg. 1(1)

2.  Any premises which the claimant intends to occupy as his home, and in respect of which he is taking steps to obtain possession and has sought legal advice, or has commenced legal proceedings, with a view to obtaining possession, for a period of 26 weeks from the date on which he first sought such advice or first commenced such proceedings whichever is the earlier, or such longer period as is reasonable in the circumstances to enable him to obtain possession and commence occupation of those premises.N.I.

Commencement Information

I2Sch. 7 para. 2 in operation at 20.11.2006, see reg. 1(1)

3.  Any premises which the claimant intends to occupy as his home to which essential repairs or alterations are required in order to render them fit for such occupation, for a period of 26 weeks from the date on which the claimant first takes steps to effect those repairs or alterations, or such longer period as is necessary to enable those repairs or alterations to be carried out.N.I.

Commencement Information

I3Sch. 7 para. 3 in operation at 20.11.2006, see reg. 1(1)

4.  Any premises occupied in whole or in part by—N.I.

(a)a person who is a relative of the claimant or of his partner as his home [F1where that person has attained the qualifying age for state pension credit or is incapacitated] ;

(b)the former partner of the claimant as his home; but this provision shall not apply where the former partner is a person from whom the claimant is estranged or divorced or with whom he had formed a civil partnership that has been dissolved.

Textual Amendments

Commencement Information

I4Sch. 7 para. 4 in operation at 20.11.2006, see reg. 1(1)

5.  Any future interest in property of any kind, other than land or premises in respect of which the claimant has granted a subsisting lease or tenancy, including sub-leases or sub-tenancies.N.I.

Commencement Information

I5Sch. 7 para. 5 in operation at 20.11.2006, see reg. 1(1)

6.  Where a claimant has ceased to occupy what was formerly the dwelling occupied as the home following his estrangement or divorce from his former partner or the dissolution of a civil partnership with his former partner, that dwelling for a period of 26 weeks from the date on which he ceased to occupy that dwelling or, where the dwelling is occupied as the home by the former partner who is a lone parent, for so long as it is so occupied.N.I.

Commencement Information

I6Sch. 7 para. 6 in operation at 20.11.2006, see reg. 1(1)

7.  Any premises or land where the claimant is taking reasonable steps to dispose of the whole of his interest in those premises or that land, for a period of 26 weeks from the date on which he first took such steps, or such longer period as is reasonable in the circumstances to enable him to dispose of those premises or that land.N.I.

Commencement Information

I7Sch. 7 para. 7 in operation at 20.11.2006, see reg. 1(1)

8.  All personal possessions.N.I.

Commencement Information

I8Sch. 7 para. 8 in operation at 20.11.2006, see reg. 1(1)

9.  The assets of any business owned in whole or in part by the claimant and for the purposes of which he is engaged as a self-employed earner or, if he has ceased to be so engaged, for such period as may be reasonable in the circumstances to allow for disposal of those assets.N.I.

Commencement Information

I9Sch. 7 para. 9 in operation at 20.11.2006, see reg. 1(1)

10.  The assets of any business owned in whole or in part by the claimant if—N.I.

(a)he is not engaged as a self-employed earner in that business by reason of some disease or bodily or mental disablement; but

(b)he intends to become engaged (or, as the case may be, re-engaged) as a self-employed earner in that business as soon as he recovers or is able to become engaged, or re-engaged, in that business,

for a period of 26 weeks from the date on which the claim for housing benefit is made or, if it is unreasonable to expect him to become engaged or re-engaged in that business within that period, for such longer period as is reasonable in the circumstances to enable him to become so engaged or re-engaged.

Commencement Information

I10Sch. 7 para. 10 in operation at 20.11.2006, see reg. 1(1)

11.  The surrender value of any policy of life insurance.N.I.

Commencement Information

I11Sch. 7 para. 11 in operation at 20.11.2006, see reg. 1(1)

12.  The value of any funeral plan contract; and for this purpose, “funeral plan contract” means a contract under which—N.I.

(a)the claimant makes one or more payments to another person (“the provider”);

(b)the provider undertakes to provide, or secure the provision of, a funeral in the United Kingdom or in the Republic of Ireland for the claimant on his death; and

(c)the sole purpose of the plan is to provide or secure the provision of a funeral for the claimant on his death.

Commencement Information

I12Sch. 7 para. 12 in operation at 20.11.2006, see reg. 1(1)

13.  Where an ex-gratia payment has been made by the Secretary of State on or after 1st February 2001 in consequence of the imprisonment or internment of—N.I.

(a)the claimant;

(b)the claimant’s partner;

(c)the claimant’s deceased spouse or deceased civil partner; or

(d)the claimant’s partner’s deceased spouse or deceased civil partner,

by the Japanese during the Second World War, an amount equal to that payment.

Commencement Information

I13Sch. 7 para. 13 in operation at 20.11.2006, see reg. 1(1)

14.—(1) Subject to sub-paragraph (2), the amount of any trust payment made to a claimant or a claimant’s partner who is—N.I.

(a)a diagnosed person;

(b)a diagnosed person’s partner or was a diagnosed person’s partner at the date of the diagnosed person’s death; or

(c)a parent of a diagnosed person, a person acting in place of the diagnosed person’s parents or a person who was so acting at the date of the diagnosed person’s death.

(2) Where a trust payment is made to—

(a)a person referred to in sub-paragraph (1)(a) or (b), that sub paragraph shall apply for the period beginning on the date on which the trust payment is made and ending on the date on which that person dies;

(b)a person referred to in sub-paragraph (1)(c), that sub-paragraph shall apply for the period beginning on the date on which the trust payment is made and ending 2 years after that date.

(3) Subject to sub-paragraph (4), the amount of any payment by a person to whom a trust payment has been made or of any payment out of the estate of a person to whom a trust payment has been made, which is made to a claimant or a claimant’s partner who is—

(a)the diagnosed person;

(b)a diagnosed person’s partner or was a diagnosed person’s partner at the date of the diagnosed person’s death; or

(c)a parent of a diagnosed person, a person acting in place of the diagnosed person’s parents or a person who was so acting at the date of the diagnosed person’s death.

(4) Where a payment such as referred to in sub-paragraph (3) is made to—

(a)a person referred to in sub-paragraph (3)(a) or (b), that sub-paragraph shall apply for the period beginning on the date on which the payment is made and ending on the date on which that person dies;

(b)a person referred to in sub-paragraph (3)(c), that sub-paragraph shall apply for the period beginning on the date on which the payment is made and ending 2 years after that date.

(5) In this paragraph, a reference to a person—

(a)being the diagnosed person’s partner;

(b)acting in place of the diagnosed person’s parents,

at the date of the diagnosed person’s death shall include a person who would have been such a person or a person who would have been so acting, but for the diagnosed person residing in a residential care home, a nursing home or an independent hospital.

(6) In this paragraph—

“diagnosed person” means a person who has been diagnosed as suffering from, or who, after his death, has been diagnosed as having suffered from, variant Creutzfeldt-Jakob disease;

“relevant trust” means a trust established out of funds provided by the Secretary of State in respect of persons who suffered, or who are suffering, from variant Creutzfeldt-Jakob disease for the benefit of persons eligible for payments in accordance with its provisions;

“trust payment” means a payment under a relevant trust.

Commencement Information

I14Sch. 7 para. 14 in operation at 20.11.2006, see reg. 1(1)

15.  The amount of any payment, other than a [F2war pension] , to compensate for the fact that the claimant, the claimant’s partner, the claimant’s deceased spouse or civil partner or the claimant’s partner’s deceased spouse or civil partner—N.I.

(a)was a slave labourer or a forced labourer;

(b)had suffered property loss or had suffered personal injury; or

(c)was a parent of a child who had died,

during the Second World War.

Textual Amendments

Commencement Information

I15Sch. 7 para. 15 in operation at 20.11.2006, see reg. 1(1)

16.—(1) Any payment made under [F3or by] —N.I.

(a)the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) (No. 2) Trust, the Fund, the Eileen Trust[F4, MFET Limited], the Skipton Fund [F5, the Caxton Foundation] or the London Bombings Relief Charitable Fund (collectively referred to in this paragraph as “the Trusts”); or

(b)the Independent Living [F6Fund (2006)] .

(2) Any payment by or on behalf of a person who is suffering or who suffered from haemophilia or who is or was a qualifying person, which derives from a payment made under [F3or by] any of the Trusts and which is made to or for the benefit of that person’s partner or former partner from whom he is not, or where that person has died was not, estranged or divorced or with whom he has formed a civil partnership that has not been dissolved or, where that person has died, had not been dissolved at the time of that person’s death.

(3) Any payment by or on behalf of the partner or former partner of a person who is suffering or who suffered from haemophilia or who is or was a qualifying person provided that the partner or former partner and that person are not, or if either of them has died were not, estranged or divorced or, where the partner or former partner and that person have formed a civil partnership, the civil partnership has not been dissolved or, if either of them has died, had not been dissolved at the time of the death, which derives from a payment made under [F3or by] any of the Trusts and which is made to or for the benefit of the person who is suffering from haemophilia or who is a qualifying person.

(4) Any payment by a person who is suffering from haemophilia or who is a qualifying person, which derives from a payment under [F3or by] any of the Trusts, where—

(a)that person has no partner or former partner from whom he is not estranged or divorced or with whom he has formed a civil partnership that has not been dissolved nor any child who is or had been a member of that person’s household; and

(b)the payment is made either—

(i)to that person’s parent or step-parent, or

(ii)where that person at the date of the payment is a child or a student who has not completed his full-time education and has no parent or step-parent, to any person standing in the place of his parent,

but only for a period from the date of the payment until the end of 2 years from that person’s death.

F3(5) Any payment out of the estate of a person who suffered from haemophilia or who was a qualifying person, which derives from a payment under any of the Trusts, where—

(a)that person at the date of his death (“the relevant date”) had no partner or former partner from whom he was not estranged or divorced or with whom he has formed a civil partnership that has not been dissolved, nor any child who was or had been a member of his household; and

(b)the payment is made either—

(i)to that person’s parent or step-parent, or

(ii)where that person at the relevant date was a child or a student who had not completed his full-time education and had no parent or step-parent, to any person standing in place of his parent,

but only for a period of 2 years from the relevant date.

(6) In the case of a person to whom or for whose benefit a payment referred to in this paragraph is made, any capital resource which derives from any payment of income or capital made under or deriving from any of the Trusts.

Textual Amendments

F3Words in Sch. 7 para. 16(1)-(5) inserted (1.4.2010 for specified purposes, 5.4.2010 in so far as not already in operation) by The Social Security (Miscellaneous Amendments No. 2) Regulations (Northern Ireland) 2010 (S.R. 2010/69), regs. 1(3)(b), 9(5)(c)

F4Words in Sch. 7 para. 16(1)(a) inserted (1.4.2010 for specified purposes, 5.4.2010 in so far as not already in operation) by The Social Security (Miscellaneous Amendments No. 2) Regulations (Northern Ireland) 2010 (S.R. 2010/69), regs. 1(3)(b), 9(3)(d)

Commencement Information

I16Sch. 7 para. 16 in operation at 20.11.2006, see reg. 1(1)

17.—(1) An amount equal to the amount of any payment made in consequence of any personal injury to the claimant or, if the claimant has a partner, to the partner.N.I.

(2) Where the whole or part of the payment is administered—

(a)by the High Court under the provisions of Order 80 or 109 of the Rules of the Supreme Court (Northern Ireland) 1980(1), the County Court under Order 44 of the County Court Rules (Northern Ireland) 1981(2), or Article 21 of the County Courts (Northern Ireland) Order 1980(3), or on behalf of a person where the payment can only be disposed of by order or direction of any such court; or

(b)in accordance with the terms of a trust established for the benefit of the claimant or his partner,

the whole of the amount so administered.

Commencement Information

I17Sch. 7 para. 17 in operation at 20.11.2006, see reg. 1(1)

18.  Any amount specified in paragraph 19, 20 [F7, 21 or 28A] for a period of one year beginning with the date of receipt.N.I.

Textual Amendments

Commencement Information

I18Sch. 7 para. 18 in operation at 20.11.2006, see reg. 1(1)

19.  Amounts paid under a policy of insurance in connection with the loss of or damage to the property occupied by the claimant as his home and to his personal possessions.N.I.

Commencement Information

I19Sch. 7 para. 19 in operation at 20.11.2006, see reg. 1(1)

20.  So much of any amounts paid to the claimant or deposited in the claimant’s name for the sole purpose of—N.I.

(a)purchasing premises which the claimant intends to occupy as his home; or

(b)effecting essential repairs or alterations to the premises occupied or intended to be occupied by the claimant as his home.

Commencement Information

I20Sch. 7 para. 20 in operation at 20.11.2006, see reg. 1(1)

21.—(1) Subject to paragraph 22, any amount paid—N.I.

(a)by way of arrears of benefit;

(b)by way of compensation for the late payment of benefit;

(c)in lieu of the payment of benefit;

(d)to rectify, or compensate for, an official error, as defined for the purposes of paragraph 22, being an amount to which that paragraph does not apply;

(e)by the Executive to or on behalf of the claimant or his partner relating to a service which is provided to develop or sustain the capacity of the claimant or his partner to live independently in his accommodation.

(2) In sub-paragraph (1), “benefit” means—

[F8(za)armed forces independence payment;]

(a)attendance allowance under section 64 of the Act;

(b)disability living allowance;

[F9(ba)personal independence payment;]

(c)income support;

(d)income-based jobseeker’s allowance;

(e)state pension credit;

(f)housing benefit;

(g)child tax credit;

(h)an increase of a disablement pension under section 104 of the Act (increase where constant attendance needed), and any further increase of such a pension under section 105 of the Act (increase for exceptionally severe disablement);

(i)any amount included on account of the claimant’s exceptionally severe disablement or need for constant attendance in a [F10war pension] ;

(j)any discretionary housing payment paid pursuant to regulation 2(1) of the Discretionary Financial Assistance Regulations (Northern Ireland) 2001(4); F11...

(k)working tax credit; F12...

[F13(ka)bereavement support payment under section 29 of the Pensions Act (Northern Ireland) 2015.]

[F14(l)income-related employment and support allowance][F15or

(m)social fund payments.]

Textual Amendments

Commencement Information

I21Sch. 7 para. 21 in operation at 20.11.2006, see reg. 1(1)

22.—(1) Subject to sub-paragraph (3), any payment of £5,000 or more which has been made to rectify, or to compensate for, an official error relating to a relevant benefit and has been received by the claimant in full on or after the day on which he became entitled to benefit under these Regulations or the Housing Benefit Regulations.N.I.

(2) Subject to sub-paragraph (3), the total amount of any payments disregarded under—

(a)paragraph 7(2) of Schedule 10 to the Income Support Regulations(5);

(b)paragraph 12(2) of Schedule 7 to the Jobseeker’s Allowance Regulations(6);

(c)paragraph 9(2) of Schedule 7 to the Housing Benefit Regulations;

(d)paragraph 20A of Schedule 5 to State Pension Credit Regulations (Northern Ireland) 2003(7),

[F16(e)paragraph 11(2) of Schedule 9 to the Employment and Support Allowance Regulations,]

where the award in respect of which the payments last fell to be disregarded under those Regulations either terminated immediately before the relevant date or is still in existence at that date.

(3) Any disregard which applies under sub-paragraph (1) or (2 ) shall have effect until the award comes to an end.

(4) In this paragraph—

“the award”, except in sub-paragraph (2), means—

(a)

the award of benefit under these Regulations during which the relevant sum or, where it is paid in more than one instalment, the first instalment of that sum is received; and

(b)

where that award is followed by one or more further awards which, or each of which, begins immediately after the previous award ends, such further awards until the end of the last such award, provided that, for such further awards, the claimant—

(i)

is the person who received the relevant sum;

(ii)

is the partner of that person, or

(iii)

was the partner of that person at the date of his death;

“official error”—

(a)

where the error relates to housing benefit, has the meaning given by regulation 1(2) of the Decisions and Appeals Regulations; and

(b)

where the error relates to any other relevant benefit, has the meaning given by regulation 1(3) of the Social Security and Child Support (Decisions and Appeals) Regulations (Northern Ireland) 1999(8);

“the relevant date” means—

(a)

in the case of an existing award of benefit under these Regulations or the Housing Benefit Regulations, 6th October 2003; and

(b)

in any other case, the date on which the claim for benefit under these Regulations or the Housing Benefit Regulations was made;

“relevant benefit” means any benefit specified in paragraph 21(2);

“the relevant sum” means the payment referred to in sub-paragraph (1) or the total amount referred to in sub-paragraph (2).

Textual Amendments

Commencement Information

I22Sch. 7 para. 22 in operation at 20.11.2006, see reg. 1(1)

23.  Where a capital asset is held in a currency other than sterling, any banking charge or commission payable in converting that capital into sterling.N.I.

Commencement Information

I23Sch. 7 para. 23 in operation at 20.11.2006, see reg. 1(1)

24.  The value of the right to receive income from an occupational pension scheme or a personal pension scheme.N.I.

Commencement Information

I24Sch. 7 para. 24 in operation at 20.11.2006, see reg. 1(1)

F1725.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.I.

Textual Amendments

26.  The dwelling occupied as the home; but only one dwelling shall be disregarded under this paragraph.N.I.

Commencement Information

I25Sch. 7 para. 26 in operation at 20.11.2006, see reg. 1(1)

27.  Where an ex-gratia payment has been made by the Secretary of State to members of the families of the disappeared, but only for a period of 52 weeks from the date of receipt of that payment.N.I.

Commencement Information

I26Sch. 7 para. 27 in operation at 20.11.2006, see reg. 1(1)

28.  Where a person elects to be entitled to a lump sum under Schedule 5 or 5A to the Act or under Schedule 1 to the Graduated Retirement Benefit Regulations, or is treated as having made such an election, and a payment has been made pursuant to that election, an amount equal to—N.I.

(a)except where sub-paragraph (b) applies, the amount of any payment or payments made on account of that lump sum;

(b)the amount of that lump sum,

but only for so long as that person does not change that election in favour of an increase of pension or benefit.

Commencement Information

I27Sch. 7 para. 28 in operation at 20.11.2006, see reg. 1(1)

[F1828ZA.  Where a person chooses a lump sum under section 8(2) of the Pensions Act (Northern Ireland) 2015 or in accordance with regulations made under section 10 of that Act which include provision corresponding or similar to section 8(2) of that Act, or fails to make a choice, and a lump sum payment has been made, an amount equal to—N.I.

(a)except where sub-paragraph (b) applies, the amount of any payment or payments made on account of that lump sum;

(b)the amount of that lump sum,

but only for so long as that person does not alter that choice in favour of an increase of pension.]

Textual Amendments

[F1928A.  Any arrears of supplementary pension which is disregarded under paragraph 5 of Schedule 6 (amounts to be disregarded in the calculation of income other than earnings) or of any amount which is disregarded under paragraph 6 or 7 of that Schedule.]N.I.

Textual Amendments

[F2028B.  Any payment made under Part 8A of the Act (entitlement to health in pregnancy grant).]N.I.

Textual Amendments

[F2128C.  Any payments made under regulations made under section 8 of the Carers and Direct Payments Act (Northern Ireland) 2002 (direct payments).] N.I.

Textual Amendments

28D.  [F22A payment of bereavement support payment in respect of the rate set out in regulation 3(2) or (5) (rate of bereavement support payment) of the Bereavement Support Payment Regulations (Northern Ireland) 2017, but only for a period of 52 weeks from the date of receipt of the payment.]N.I.

Textual Amendments

[F23PART IIN.I.Capital disregarded only for the purposes of determining deemed income

Textual Amendments

29.  The value of the right to receive any income under a life interest.N.I.

Commencement Information

I28Sch. 7 para. 29 in operation at 20.11.2006, see reg. 1(1)

30.  The value of the right to receive any rent except where the claimant has a reversionary interest in the property in respect of which rent is due.N.I.

Commencement Information

I29Sch. 7 para. 30 in operation at 20.11.2006, see reg. 1(1)

31.  The value of the right to receive any income under an annuity or the surrender value (if any) of such an annuity.N.I.

Commencement Information

I30Sch. 7 para. 31 in operation at 20.11.2006, see reg. 1(1)

[F2431A.  Any ex-gratia payment made to a qualifying Equitable Life annuitant under regulation 2, or both regulations 2 and 3, of the Age-Related Payments Regulations 2013.]N.I.

Textual Amendments

32.  Where property is held under a trust, other than—N.I.

(a)a charitable trust within the meaning of the Charities Act (Northern Ireland) 1964(9); or

(b)a trust set up with any payment to which paragraph 16 of this Schedule applies,

and under the terms of the trust, payments fall to be made, or the trustees have a discretion to make payments, to or for the benefit of the claimant or the claimant’s partner, or both, that property.]

Commencement Information

I31Sch. 7 para. 32 in operation at 20.11.2006, see reg. 1(1)

(1)

S.R. 1980 No. 346; Order 109 was added by S.R. 1986 No. 184

(5)

Paragraph 7(2) of Schedule 10 was added by regulation 2(b) of S.R. 2002 No. 295

(6)

Paragraph 12(2) of Schedule 7 was added by regulation 4 of S.R. 2002 No. 295

(7)

S.R. 2003 No. 28; paragraph 20A of Schedule 5 was substituted by regulation 2(11)(f) of S.R. 2003 No. 421