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Welfare Reform Bill


Welfare Reform Bill
Schedule 1 — Employment and support allowance: additional conditions
Part 1 — Contributory allowance

49

 

Schedules

Schedule 1

Section 1

 

Employment and support allowance: additional conditions

Part 1

Contributory allowance

5

Conditions relating to national insurance

1     (1)  

The first condition is that—

(a)   

the claimant has actually paid Class 1 or 2 contributions in respect of

one of the last three complete tax years (“the base tax year”) before

the beginning of the relevant benefit year,

10

(b)   

those contributions must have been paid before the relevant benefit

week, and

(c)   

the earnings factor derived as mentioned in sub-paragraph (2) must

be not less than the base tax year’s lower earnings limit multiplied by

25.

15

      (2)  

The earnings factor referred to in sub-paragraph (1)(c) is the aggregate of the

claimant’s earnings factors derived—

(a)   

from so much of his earnings as did not exceed the base tax year’s

upper earnings limit and upon which primary Class 1 contributions

have been paid or treated as paid, and

20

(b)   

from Class 2 contributions.

      (3)  

Where primary Class 1 contributions have been paid or treated as paid on

any part of a person’s earnings, sub-paragraph (2)(a) shall have effect as if

such contributions had been paid or treated as paid on so much of the

earnings as did not exceed the base tax year’s upper earnings limit.

25

      (4)  

Regulations may—

(a)   

provide for the condition set out in sub-paragraph (1) to be taken to

be satisfied in the case of persons who have been entitled to any

prescribed description of benefit during any prescribed period or at

any prescribed time;

30

(b)   

with a view to securing any relaxation of the requirements of that

condition in relation to persons who have been so entitled, provide

for that condition to apply in relation to them subject to prescribed

modifications.

      (5)  

In sub-paragraph (4), “benefit” means—

35

(a)   

any benefit within the meaning of section 122(1) of the Contributions

and Benefits Act,

 

 

Welfare Reform Bill
Schedule 1 — Employment and support allowance: additional conditions
Part 1 — Contributory allowance

50

 

(b)   

any benefit under Parts 7 to 12 of that Act,

(c)   

credits under regulations under section 22(5) of that Act,

(d)   

a contributory allowance, and

(e)   

working tax credit.

2     (1)  

The second condition is that—

5

(a)   

the claimant has in respect of the last two complete tax years before

the beginning of the relevant benefit year either paid or been credited

with Class 1 or 2 contributions or been credited with earnings, and

(b)   

the earnings factor derived as mentioned in sub-paragraph (2) must

be not less in each of those years than the year’s lower earnings limit

10

multiplied by 50.

      (2)  

The earnings factor referred to in sub-paragraph (1)(b) is the aggregate of the

claimant’s earnings factors derived—

(a)   

from so much of his earnings as did not exceed the upper earnings

limit for the year and upon which primary Class 1 contributions have

15

been paid or treated as paid or from earnings credited, and

(b)   

from Class 2 contributions.

      (3)  

Where primary Class 1 contributions have been paid or treated as paid on

any part of a person’s earnings, sub-paragraph (2)(a) shall have effect as if

such contributions had been paid or treated as paid on so much of the

20

earnings as did not exceed the upper earnings limit for the year.

3     (1)  

For the purposes of paragraphs 1 and 2—

(a)   

“benefit year” means a period which is a benefit year for the

purposes of Part 2 of the Contributions and Benefits Act or such

other period as may be prescribed for the purposes of this Part of this

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Schedule;

(b)   

“Class 1 contributions”, “Class 2 contributions” and “primary Class 1

contributions” have the same meaning as in the Contributions and

Benefits Act (see section 1 of that Act);

(c)   

“earnings” shall be construed in accordance with sections 3, 4 and

30

112 of that Act;

(d)   

“earnings factor” shall be construed in accordance with sections 22

and 23 of that Act;

(e)   

“lower earnings limit” and “upper earnings limit” shall be construed

in accordance with section 5 of that Act and references to the lower

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or upper earnings limit of a tax year are to whatever is (or was) the

limit in force for that year under that section;

(f)   

“relevant benefit year” is the benefit year which includes the

beginning of the period of limited capability for work which includes

the relevant benefit week;

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(g)   

“tax year” means the 12 months beginning with 6th April in any year.

      (2)  

Regulations may provide for sub-paragraph (1)(g) to have effect in

prescribed circumstances with prescribed modifications in the case of—

(a)   

a person who has previously ceased to be entitled to a contributory

allowance;

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(b)   

a person who has made a claim for an employment and support

allowance in connection with which he failed to satisfy one or both

of the conditions in paragraphs 1 and 2.

 

 

Welfare Reform Bill
Schedule 1 — Employment and support allowance: additional conditions
Part 2 — Income-related allowance

51

 

Condition relating to youth

4     (1)  

The third condition is that —

(a)   

the claimant was under 20 or, in prescribed cases, 25 when the

relevant period of limited capability for work began,

(b)   

he is not receiving full-time education,

5

(c)   

he satisfies such conditions as may be prescribed with respect to

residence or presence in Great Britain (or both), and

(d)   

there has been a day in the relevant period of limited capability for

work—

(i)   

which was a day on which he was aged at least 16, and

10

(ii)   

which was preceded by a period of 196 consecutive days

throughout which he had limited capability for work.

      (2)  

In sub-paragraph (1), “relevant period of limited capability for work” means

the period of limited capability for work which includes the relevant benefit

week.

15

      (3)  

Regulations may prescribe circumstances in which sub-paragraph (1)(a)

does not apply in the case of a person who has previously ceased to be

entitled to an employment and support allowance to which he was entitled

by virtue of satisfying the condition set out in sub-paragraph (1).

      (4)  

Regulations may make provision about when, for the purposes of sub-

20

paragraph (1)(b ), a person is, or is not, to be treated as receiving full-time

education.

“Relevant benefit week”

5          

In this Part of this Schedule, “relevant benefit week” means the week in

relation to which the question of entitlement to an employment and support

25

allowance is being considered.

Part 2

Income-related allowance

6     (1)  

The conditions are that the claimant—

(a)   

has an income which does not exceed the applicable amount or has

30

no income;

(b)   

does not have capital which, or a prescribed part of which, exceeds

the prescribed amount;

(c)   

is not entitled to state pension credit;

(d)   

is not a member of a couple the other member of which is entitled to

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an income-related allowance, state pension credit, income support or

an income-based jobseeker’s allowance;

(e)   

is not engaged in remunerative work;

(f)   

is not a member of a couple the other member of which is engaged in

remunerative work;

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(g)   

is not receiving education.

      (2)  

Where the claimant is a member of a couple, the income and capital of the

other member of the couple shall, except in prescribed circumstances, be

 

 

Welfare Reform Bill
Schedule 1 — Employment and support allowance: additional conditions
Part 2 — Income-related allowance

52

 

treated for the purpose of this paragraph as income and capital of the

claimant.

      (3)  

Regulations may prescribe circumstances in which, for the purposes of sub-

paragraph (1)(e) and (f)—

(a)   

a person who is not engaged in remunerative work is to be treated as

5

engaged in remunerative work, or

(b)   

a person who is engaged in remunerative work is to be treated as not

engaged in remunerative work.

      (4)  

Regulations may—

(a)   

make provision about when, for the purposes of sub-paragraph

10

(1)(g), a person is, or is not, to be treated as receiving education;

(b)   

prescribe circumstances in which sub-paragraph (1)(g) does not

apply.

      (5)  

In this paragraph—

“applicable amount” means the amount which, in the claimant’s case,

15

is the applicable amount for the purposes of section 4(1);

“couple” means—

(a)   

a man and woman who are married to each other and are

members of the same household;

(b)   

a man and woman who are not married to each other, but are

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living together as husband and wife otherwise than in

prescribed circumstances;

(c)   

two people of the same sex who are civil partners of each

other and are members of the same household; or

(d)   

two people of the same sex who are not civil partners of each

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other, but are living together as if they were civil partners

otherwise than in prescribed circumstances;

“education” has such meaning as may be prescribed;

“income-based jobseeker’s allowance” has the same meaning as in the

Jobseekers Act 1995 (c. 18);

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“remunerative work” has such meaning as may be prescribed.

      (6)  

For the purposes of this paragraph, two people of the same sex are to be

regarded as living together as if they were civil partners if, but only if, they

would be regarded as living together as husband and wife were they instead

two people of the opposite sex.

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      (7)  

Regulations may make provision for the preceding provisions of this

paragraph to have effect with prescribed modifications in a case where—

(a)   

the claimant is a husband or wife by virtue of a marriage entered into

under a law which permits polygamy,

(b)   

either party to the marriage has for the time being any spouse

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additional to the other party, and

(c)   

the claimant, the other party to the marriage and the additional

spouse are members of the same household.

      (8)  

Regulations may make provision for the purposes of this paragraph as to

circumstances in which people are to be treated as being or not being

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members of the same household.

 

 

 
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Revised 16 November 2006