The Social Security Benefit (Computation of Earnings) (Amendment) Regulations 2002

Made14th November 2002

Laid before Parliament15th November 2002

Coming into force—

for certain purposes—8th December 2002

for all other purposes1st April 2003

The Treasury, in exercise of the powers conferred upon them by section 3(2) and (3) of the Social Security Contributions and Benefits Act 19921, with the concurrence of the Secretary of State, hereby make the following Regulations:

Citation and commencement

1.

These Regulations may be cited as the Social Security Benefit (Computation of Earnings) (Amendment) Regulations 2002 and shall come into force—

(a)

for the purposes of the amendments made by paragraphs (2) and (3) of regulation 2 on 8th December 2002; and

(b)

for all other purposes on 1st April 2003.

2. (1)

Amend the Social Security Benefit (Computation of Earnings) Regulations 19962 as follows.

(2)

In regulation 2 omit the definition in paragraph (1) of “maternity leave”.

(3)

In regulation 9—

(a)

for sub-paragraph (j) of paragraph (1) substitute—

“(j)
any remuneration paid by or on behalf of an employer to the claimant in respect of a period throughout which the claimant is—
(i)
on maternity leave;
(ii)
on paternity leave;
(iii)
on adoption leave; or
(iv)
absent from work because he is ill.”.

(b)

at the appropriate points in the alphabetical list in paragraph (4) insert the following definitions—

““adoption leave” means a period of absence from work on ordinary or additional adoption leave under section 75A or 75B of the Employment Rights Act 19963;”;

““maternity leave” means a period during which a woman is absent from work because she is pregnant or has given birth to a child, and at the end of which she has a right to return to work either under the terms of her contract of employment or under Part 8 of the Employment Rights Act 19964;” and

““paternity leave” means a period of absence from work on leave under section 80A or 80B of the Employment Rights Act 19965.”.

(4)

In the provisions mentioned in paragraph (5) for “invalid care allowance” substitute “carer’s allowance6”.

(5)

The provisions are—

(a)

regulation 7(a)(i) (date on which earnings are treated as paid);

(b)

regulation 10(3) (calculation of net earnings of employed earners);

(c)

regulation 13(3) (calculation of net earnings of self-employed earners); and

(d)

the heading to, and paragraph 1(a) of, Schedule 3 (care charges to be deducted in the calculation of earnings for entitlement to invalid care allowance).

Philip Woolas

John Heppell

Two of the Lords Commissioners of Her Majesty’s Treasury

14th November 2002

The Secretary of State hereby concurs.

P. Hollis

Parliamentary Under Secretary of State,

Department for Work and Pensions

14th November 2002

(This note is not part of the Regulations)

These Regulations amend the Social Security Benefit (Computation of Earnings) Regulations 1996 (S.I. 1996/2745).

Regulation 1 provides for the citation and commencement of these Regulations.

Regulation 2 amends the 1996 Regulations. Paragraph (1) introduces the amendments. Paragraph (2) omits the definition of maternity leave (which is used only in regulation 9) from regulation 2(1). Paragraph (3) amends regulation 9 as follows. It substitutes a new sub-paragraph (j) in regulation 9(1). The effect is that earnings for benefit purposes include not only remuneration paid to a claimant during a period of maternity leave or sick absence but also any payment of remuneration during a period of adoption leave under section 75A or 75B of the Employment Rights Act 1996 (c. 18) or paternity leave under section 80A or 80B or of that Act. Paragraph (3) also inserts definitions of “adoption leave”, “maternity leave” and “paternity leave” in regulation 9(4). Paragraphs (4) and (5) make amendments to regulations 7, 10 and 13 and Schedule 3 consequent on the renaming of invalid care allowance as carer’s allowance under the Regulatory Reform (Carer’s Allowance) Order 2002 (S.I. 2002/1457).