(1)Subject to regulations under section 5(1)(a) of the Administration Act, a person in Great Britain is entitled to family credit if, when the claim for it is made or is treated as made—
(a)his income—
(i)does not exceed the amount which is the applicable amount at such date as may be prescribed; or
(ii)exceeds it, but only by such an amount that there is an amount remaining if the deduction for which subsection (2)(b) below provides is made;
(b)he or, if he is a member of a married or unmarried couple, he or the other member of the couple, is engaged and normally engaged in remunerative work;
(c)except in such circumstances as may be prescribed, neither he nor any member of his family is entitled to a disability working allowance; and
(d)he or, if he is a member of a married or unmarried couple, he or the other member, is responsible for a member of the same household who is a child or a person of a prescribed description.
(2)Where a person is entitled to family credit, then—
(a)if his income does not exceed the amount which is the applicable amount at the date prescribed under subsection (1)(a)(i) above, the amount of the family credit shall be the amount which is the appropriate maximum family credit in his case; and
(b)if his income exceeds the amount which is the applicable amount at that date, the amount of the family credit shall be what remains after the deduction from the appropriate maximum family credit of a prescribed percentage of the excess of his income over the applicable amount.
(3)Family credit shall be payable for a period of 26 weeks or such other period as may be prescribed and, subject to regulations, an award of family credit and the rate at which it is payable shall not be affected by any change of circumstances during that period or by any order under section 150 of the Administration Act.
(4)Regulations may provide that an award of family credit shall terminate—
(a)if a person who was a member of the family at the date of the claim becomes a member of another family and some member of that family is entitled to family credit; or
(b)if income support or a disability working allowance becomes payable in respect of a person who was a member of the family at the date of the claim for family credit.
(5)Regulations shall prescribe the manner in which the appropriate maximum family credit is to be determined in any case.
(6)The provisions of this Act relating to family credit apply in relation to persons employed by or under the Crown as they apply in relation to persons employed otherwise than by or under the Crown.