3 Amendment of regulation 17 of the principal Regulations
Subject to regulation 6(1) below, in regulation 17 of the principal Regulations (exempt work)—
(a) in paragraph (1) for sub-paragraph (a) there shall be substituted the following sub-paragraph:—

“(a) work in respect of which the required notice is given, and—
(i) in respect of which the earnings in any week do not exceed £20.00, or
(ii) which is part of a treatment programme and is done under medical supervision while the person doing it is an in-patient, or is regularly attending as an out-patient, of a hospital or similar institution, or
(iii) which is supervised by a person employed by a public or local authority or voluntary organisation engaged in the provision or procurement of work for persons who have disabilities, or
(iv) to which paragraph (1A) below applies;”

;
(b) after paragraph (1) there shall be inserted the following paragraphs—

“1A This paragraph applies in the case of a person whose circumstances are specified—
(a) in sub-paragraph (a) of paragraph (1B) below, to work which is undertaken by that person during the period specified in sub-paragraph (b) of that paragraph;
(b) in sub-paragraph (a) of paragraph (1C) below, to work which is undertaken by that person during the period specified in sub-paragraph (b) of that paragraph;
(c) in sub-paragraph (a) of paragraph (1D) below, to work which is undertaken by that person during the period specified in sub-paragraph (b) of that paragraph.
1B For the purposes of paragraph (1A)(a) above—
(a) the specified circumstances are where—
(i) no work to which paragraph (1A) applies has previously been undertaken by that person, or
(ii) since the beginning of the last period during which any work to which that paragraph applies was previously undertaken by him, the person has ceased to be entitled, throughout a period exceeding eight continuous weeks, to a relevant benefit;
(b) the specified period is the period of 26 weeks beginning with the first day on which the work is undertaken.
1C For the purposes of paragraph (1A)(b) above—
(a) the specified circumstances are where—
(i) work to which paragraph (1A) applies has previously been undertaken by that person during a period specified in paragraph (1B)(b) above, and
(ii) there is appropriate evidence that, by undertaking further work, during the period specified in sub-paragraph (b) below, he is likely to improve his capacity to engage in full-time work;
(b) the specified period is the period of 26 weeks beginning immediately after the end of the period specified in paragraph (1B)(b) above.
1D For the purposes of paragraph (1A)(c) above—
(a) the specified circumstances are where—
(i) work to which paragraph (1A) applies has previously been undertaken by that person,
(ii) not less than 52 weeks have elapsed since the end of the period specified in paragraph (1B)(b) or (1C)(b) above or in sub-paragraph (b) below during which such work was last undertaken by him,
(iii) head (ii) of paragraph (1B)(a) above does not apply in his case, and
(iv) there is appropriate evidence that, by undertaking further work, during the period specified in sub-paragraph (b) below, he is likely to improve his capacity to engage in full-time work;
(b) the specified period is the period of 52 weeks which begins with the first day on which the work is undertaken.
1E In this regulation—
“appropriate evidence” means, in relation to any work—
(a) evidence from an officer of, or person providing services to, the Secretary of State who is authorised by the Secretary of State for the purpose; and
(b) evidence (if any) from any other person (including the person undertaking the work),
or such part of such evidence as constitutes the most reliable evidence available in the circumstances;
“relevant benefit” means—
(a) incapacity benefit, severe disablement allowance, income support, housing benefit or council tax benefit under the Contributions and Benefits Act; or
(b) credits under regulations under section 22(5) of that Act,
in connection with the entitlement to which the question of the person’s capacity or incapacity for work arises under that Act;
“the required notice” means, in relation to work referred to in any of heads (i) to (iv) of paragraph (1)(a), notice to the effect that the person is undertaking, or is about to undertake the work, given in writing to the Secretary of State by that person or another person acting on his behalf—
(a) in the case of work referred to in paragraph (1)(a)(i) to (iii), at any time before the person ceases to undertake the work;
(b) in the case of work referred to in paragraph (1)(a)(iv), no later than the end of the period of 42 days which begins with the day on which the work begins;
“voluntary organisation” means a body, other than a public or local authority, the activities of which are carried on otherwise than for profit.”

; and
(c) in paragraph (2)—
(i) in sub-paragraph (a) for the words “paragraph (1)(a)” there shall be substituted the words “paragraph (1)(a)(ii) to (iv)”, and
(ii) in sub-paragraph (b) for the words “paragraph (1)(a)(i)” there shall be substituted the words “paragraph (1)(a)(iv)”.