The Family Credit (General) Amendment No. 2 Regulations 1990

except—

a

where that capital is derived from a payment made in consequence of any personal injury and is placed on trust for the benefit of the claimant; or

b

to the extent that the capital which he is treated as possessing is reduced in accordance with regulation 34A (diminishing notional capital rule).

Diminishing notional capital rule34A

1

Where a claimant is treated as possessing capital under regulation 34(1) (notional capital), the amount which he is treated as possessing—

a

in the case of a benefit week which is subsequent to—

i

the relevant week in respect of which the conditions set out in paragraph (2) are satisfied; or

ii

a week which follows that relevant week and which satisfies those conditions,

shall be reduced by an amount determined under paragraph (3);

b

in the case of a benefit week in respect of which paragraph (1)(a) does not apply but where—

i

that week is a week subsequent to the relevant week, and

ii

that relevant week is a week in which the condition in paragraph (4) is satisfied,

shall be reduced by the amount determined under paragraph (4).

2

This paragraph applies to a benefit week where the claimant satisfies the conditions that—

a

he is entitled to family credit; and

b

but for regulation 34(1), he would have been entitled to an additional amount of family credit in that benefit week.

3

In a case to which paragraph (2) applies, the amount of the reduction for the purposes of paragraph (1)(a) shall be equal to the aggregate of—

a

the additional amount of family credit to which the claimant would have been entitled; and

b

the additional amount, if any, of housing benefit to which, but for regulation 43(1) of the Housing Benefit (General) Regulations 19875 (notional capital), the claimant would have been entitled in respect of the benefit week in which the date of the last claim for family credit falls; and

c

the additional amount, if any, of any community charge benefit to which, but for regulation 33(1) of the Community Charge Benefits (General) Regulations 19896 (notional capital), the claimant would have been entitled in respect of the benefit week in which the date of the last claim for family credit falls.

4

Subject to paragraph (5), for the purposes of paragraph (1)(b) the condition is that the claimant would have been entitled to family credit in the relevant week but for regulation 34(1) and in such a case the amount shall be equal to the aggregate of—

a

the amount of family credit to which the claimant would have been entitled in the relevant week but for regulation 34(1); and

b

the additional amount, if any, of housing benefit to which, but for regulation 43(1) of the Housing Benefit (General) Regulations 1987 the claimant would have been entitled in respect of the benefit week in which the first day of the relevant week falls; and

c

the additional amount, if any, of any community charge benefit to which, but for regulation 33(1) of the Community Charge Benefits (General) Regulations 1989 the claimant would have been entitled in respect of the benefit week in which the first day of the relevant week falls.

5

The amount determined under paragraph (4) shall be re-determined under that paragraph if the claimant makes a further claim for family credit and the conditions in paragraph (6) are satisfied, and in such a case—

a

sub-paragraphs (a), (b) and (c) of paragraph (4) shall apply as if for the words “relevant week” there were substituted the words “relevant subsequent week”; and

b

subject to paragraph (7), the amount as re-determined shall have effect from the first week following the relevant subsequent week in question.

6

The conditions are that—

a

a further claim is made 22 or more weeks after—

i

the first day of the relevant week;

ii

in a case where there has been at least one re-determination in accordance with paragraph (5), the first day of the relevant subsequent week which last occurred;

whichever last occurred; and

b

the claimant would have been entitled to family credit but for regulation 34(1).

7

The amount as re-determined pursuant to paragraph (5) shall not have effect if it is less than the amount which applied in that case immediately before the re-determination and in such a case the higher amount shall continue to have effect.

8

For the purposes of this regulation—

a

“benefit week” has the meaning prescribed in regulations 16 (date of entitlement under an award) and 27 (family credit) of the Social Security (Claims and Payments) Regulations 19877 except where it appears in paragraphs (3)(b) and (c) and (4)(b) and (c) where it has the meaning prescribed in regulation 2(1) of the Housing Benefit (General) Regulations 1987 (interpretation) or regulation 2(1) of the Community Charge Benefits (General) Regulations 1989 (interpretation) as the case may be;

b

“relevant week” means the benefit week in which the capital in question of which the claimant has deprived himself within the meaning of regulation 34(1)—

i

was for the first time taken into account for the purpose of determining his entitlement to family credit; or

ii

was taken into account on a subsequent occasion for that purpose other than in respect of either a benefit week to which paragraph (2) applies or a further claim to which paragraph (5) applies;

and, where more than one benefit week is identified by reference to heads (i) and (ii) of this sub-paragraph, the later or latest such benefit week;

c

“relevant subsequent week” means the benefit week in which any award of family credit in respect of the further claim referred to in paragraph (6)(a) would, but for regulation 34(1), have commenced, but it shall not be earlier than the twenty-seventh week after the week in which the existing amount took effect.

44

1

Any payment or repayment made—

a

as respects England and Wales, under regulation 3, 5 or 8 of the National Health Service (Travelling Expenses and Remission of Charges) Regula-tions 19888 (travelling expenses and health service supplies);

b

as respects Scotland, under regulation 3, 5 or 8 of the National Health Service (Travelling Expenses and Remission of Charges) (Scotland) Regulations 19889 (travelling expenses and health service supplies).

2

Any payment or repayment made by the Secretary of State for Health, the Secretary of State for Scotland or the Secretary of State for Wales which is analogous to a payment or repayment mentioned in sub-paragraph (1).

45

Any payment made under regulation 9 to 11 or 13 of the Welfare Food Regulations 198810 (payments made in place of milk tokens or the supply of vitamins).

46

Any payment made either by the Secretary of State for the Home Department or by the Secretary of State for Scotland under a scheme established to assist relatives and other persons to visit persons in custody.