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The State Pension Credit Regulations (Northern Ireland) 2003

Type Ni-Statutory-Rule

Publication 2003-01-21

Last updated 2009-03-18

State In force

Jurisdiction Northern Ireland

Department Government Printer for Northern Ireland

Source legislation.gov.uk

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(6) In determining the relevant amount under sub-paragraph (5), the applicable amount shall be increased by an amount equal to the amount (if any) payable to the claimant in accordance with Part III of the Income Support (Transitional) Regulations (Northern Ireland) 1987[^f00059] (transitional protection) or regulation 87(1) of the Jobseeker’s Allowance Regulations (transitional supplement to income-based jobseeker’s allowance).

(7) If –

(a) paragraph 1 of Schedule 7 to the Income Support Regulations[^f00060] or paragraph 1 of Schedule 5 to the Jobseeker’s Allowance Regulations[^f00061] applied to the claimant or his partner on the day before the relevant day, but

(b) paragraph 2(2) of Schedule 3 does not apply to the claimant or his partner on the relevant day,

then for the purposes of this paragraph the relevant amount shall be determined on the assumption that the provision referred to in head (a) did not apply in his case.

(8) Subject to sub-paragraph (9), the transitional amount shall –

(a) be reduced by a sum equal to the amount (if any) by which the appropriate minimum guarantee increases after the relevant day;

(b) cease to be included in the claimant’s appropriate minimum guarantee from the day on which –

(i) the sum mentioned in head (a) equals or exceeds the transitional amount, or

(ii) the claimant or the claimant’s partner ceases to be entitled to state pension credit.

(9) For the purposes of sub-paragraph (8), there shall be disregarded –

(a) any break in entitlement not exceeding 8 weeks, and

(b) any amount by which the appropriate minimum guarantee of a patient is increased on 10th April 2006 by virtue of the substitution of paragraph 2 of Schedule 3.

(10) This sub-paragraph applies where the relevant amount included an amount in respect of housing costs relating to a loan –

(a) which is treated as a qualifying loan by virtue of regulation 4 of the Income Support (General) (Amendment and Transitional) Regulations (Northern Ireland) 1995 or paragraph 18(2) of Schedule 2 to the Jobseeker’s Allowance Regulations or paragraph 20(2) of Schedule 6 to the Employment and Support Allowance Regulations , or

(b) the appropriate amount of which was determined in accordance with paragraph 7(6C) of Schedule 3 to the Income Support Regulations as in operation prior to 10th April 1995 and maintained in operation by regulation 3(1) of the Income-Related Benefits (Miscellaneous Amendments) Regulations (Northern Ireland) 1995.

(11) Where sub-paragraph (10) applies, the transitional amount shall be calculated or, as the case may be, recalculated, on the relevant anniversary date determined in accordance with paragraph 7(4C) of Schedule 2 (“the relevant anniversary date”) on the basis that the provisional amount on the relevant day included, in respect of housing costs, the amount calculated in accordance with paragraph 7(1) of that Schedule as applying from the relevant anniversary date and not the amount in respect of housing costs determined on the basis of the amount of the loan calculated in accordance with paragraph 7(4A) of that Schedule.

(12) The transitional amount as calculated in accordance with sub-paragraph (11) shall only be applicable from the relevant anniversary date.

SCHEDULE 2 — HOUSING COSTS

Housing costs

1

(1) Subject to paragraphs 2 to 15, the housing costs applicable to a claimant in accordance with regulation 6(6)(c) are those costs –

(a) which the claimant or, if he has a partner, his partner is, in accordance with paragraph 3, liable to meet in respect of the dwelling occupied as the home which he or his partner is treated as occupying, and

(b) which qualify under paragraphs 11 to 13.

(2) In this Schedule –

“disabled person” means a person –aged 75 or over;who, had he in fact been entitled to income support, would have satisfied the requirements of paragraph 12 of Schedule 2 to the Income Support Regulations (additional condition for the higher pensioner and disability premiums); orwho –has not attained the age of 20 and for whom the claimant or his partner is responsible; andis a person in respect of whom disability living allowance is payable or would be payable but for suspension or abatement because the person becomes a patient; oris registered as blind in a register compiled by a Health and Social Services Board established under Article 16 of the 1972 Order;orwho is in receipt of an employment and support allowance which includes an amount under section 2(2) or (3) or 4(4) or (5) of the Welfare Reform Act (components);

“housing costs” means those costs to which sub-paragraph (1) refers;

“standard rate” means the rate for the time being determined in accordance with paragraph 9.

(3) For the purposes of sub-paragraph (2)(a), (aa) and (b), a person shall not cease to be a disabled person on account of his being disqualified for receiving benefit or treated as capable of work by virtue of the operation of section 167E of the Contributions and Benefits Act[^f00064] (incapacity for work: disqualification, etc.) or disqualified for receiving employment and support allowance or treated as not having limited capability for work in accordance with regulations made under section 18 of the Welfare Reform Act (disqualification) .

(4) In this Schedule, “non-dependant” means any person, except someone to whom sub-paragraph (5), (6) or (7) applies, who normally resides with the claimant.

(5) This sub-paragraph applies to –

(a) a partner of the claimant or any person under the age of 20 for whom the claimant or the claimant’s partner is responsible;

(b) a person who lives with the claimant in order to care for him or for the claimant’s partner and who is engaged for that purpose by a charitable or voluntary organisation which makes a charge to the claimant or the claimant’s partner for the care provided by that person;

(6) This sub-paragraph applies to a person, other than a close relative of the claimant or the claimant’s partner –

(a) who is liable to make payments on a commercial basis to the claimant or the claimant’s partner in respect of his occupation of the claimant’s dwelling, or

(b) who is a member of the household of a person to whom head (a) applies.

(7) This sub-paragraph applies to –

(a) a person who jointly occupies the claimant’s dwelling and who is either –

(i) co-owner of that dwelling with the claimant or the claimant’s partners (whether or not there are other co-owners), or

(ii) jointly liable with the claimant or the claimant’s partner to make payments to a landlord in respect of his occupation of that dwelling;

(b) a partner of a person to whom head (a) applies.

(8) For the purpose of sub-paragraphs (4) to (7) a person resides with another only if they share any accommodation except a bathroom, a lavatory or a communal area but not if each person is separately liable to make payments in respect of his occupation of the dwelling to the landlord.

(9) In sub-paragraph (8) “communal area” means any area (other than rooms) of common access (including halls and passageways) and rooms of common use in sheltered accommodation.

Remunerative work

2

(1) Subject to sub-paragraphs (2) to (9), a person shall be treated for the purposes of this Schedule as engaged in remunerative work if he is engaged, or, where his hours of work fluctuate, he is engaged on average, for not less than 16 hours a week, in work for which payment is made or which is done in expectation of payment.

(2) Subject to sub-paragraph (3), in determining the number of hours for which a person is engaged in work where his hours of work fluctuate, regard shall be had to the average of hours worked over –

(a) if there is a recognisable cycle of work, the period of one complete cycle (including, where the cycle involves periods in which the person does no work, those periods but disregarding any other absences);

(b) in any other case, the period of 5 weeks immediately prior to the date of claim, or such other length of time as may, in the particular case, enable the person’s weekly average hours of work to be determined more accurately.

(3) Where, for the purposes of sub-paragraph (2)(a), a person’s recognisable cycle of work at a school, other educational establishment or other place of employment is one year and includes periods of school holidays or similar vacations during which he does not work, those periods and any other periods not forming part of such holidays or vacations during which he is not required to work shall be disregarded in establishing the average hours for which he is engaged in work.

(4) Where no recognisable cycle has been established in respect of a person’s work, regard shall be had to the number of hours or, where those hours will fluctuate, the average of the hours, which he is expected to work in a week.

(5) A person shall be treated as engaged in remunerative work during any period for which he is absent from work referred to in sub-paragraph (1) if the absence is either without good cause or by reason of a recognised, customary or other holiday.

(6) A person in receipt of income support or an income-based jobseeker’s allowance for more than 3 days in any benefit week shall be treated as not being in remunerative work in that week.

(7) A person shall not be treated as engaged in remunerative work on any day on which the person is on maternity leave , paternity leave or adoption leave, or is absent from work because he is ill.

(8) A person shall not be treated as engaged in remunerative work on any day on which he is engaged in an activity in respect of which –

(a) a sports award has been made, or is to be made, to him, and

(b) no other payment is made or is expected to be made to him,

and for the purposes of this sub-paragraph, “sports award” means an award made by one of the Sports Councils named in section 23(2) of the National Lottery etc. Act 1993[^f00065] out of sums allocated to it for distribution under that section.

(9) In this paragraph “benefit week” –

(a) in relation to income support, has the same meaning as in regulation 2(1) of the Income Support Regulations[^f00066];

(b) in relation to jobseeker’s allowance, has the same meaning as in regulation 1(2) of the Jobseeker’s Allowance Regulations[^f00067].

Circumstances in which a person is liable to meet housing costs

3

A person is liable to meet housing costs where –

(a) the liability falls upon him or his partner but not where the liability is to a member of the same household as the person on whom the liability falls;

(b) because the person liable to meet the housing costs is not meeting them, the claimant has to meet those costs in order to continue to live in the dwelling occupied as the home and it is reasonable in all the circumstances to treat the claimant as liable to meet those costs;

(c) he in practice shares the housing costs with other members of the household none of whom are close relatives either of the claimant or his partner, and –

(i) one or more of those members is liable to meet those costs, and

(ii) it is reasonable in the circumstances to treat him as sharing responsibility.

Circumstances in which a person is to be treated as occupying a dwelling as his home

4

(1) Subject to sub-paragraphs (2) to (13), a person shall be treated as occupying as his home the dwelling normally occupied as his home by himself or, if he has a partner, by himself and his partner, and he shall not be treated as occupying any other dwelling as his home.

(2) In determining whether a dwelling is the dwelling normally occupied as the claimant’s home for the purposes of sub-paragraph (1), regard shall be had to any other dwelling occupied by the claimant or by him and his partner whether or not that other dwelling is in Northern Ireland.

(3) Subject to sub-paragraph (4), where a claimant who has no partner is a full-time student or is on a training course and is liable to make payments (including payments of mortgage interest or analogous payments) in respect of either (but not both) the dwelling which he occupies for the purpose of attending his course of study or his training course or, as the case may be, the dwelling which he occupies when not attending his course, he shall be treated as occupying as his home the dwelling in respect of which he is liable to make payments.

(4) A full-time student shall not be treated as occupying a dwelling as his home for any week of absence from it, other than an absence occasioned by the need to enter hospital for treatment, outside the period of study, if the main purpose of his occupation during the period of study would be to facilitate attendance on his course.

(5) Where a claimant has been required to move into temporary accommodation by reason of essential repairs being carried out to the dwelling normally occupied as his home and he is liable to make payments (including payments of mortgage interest or analogous payments) in respect of either (but not both) the dwelling normally occupied or the temporary accommodation, he shall be treated as occupying as his home the dwelling in respect of which he is liable to make those payments.

(6) Where a person is liable to make payments in respect of 2 (but not more than 2) dwellings, he shall be treated as occupying both dwellings as his home only –

(a) where he has left and remains absent from the former dwelling occupied as the home through fear of violence in that dwelling or of violence by a close relative or former partner and it is reasonable that housing costs should be met in respect of both his former dwelling and his present dwelling occupied as the home;

(b) in the case of partners, where one partner is a full-time student or is on a training course and it is unavoidable that he or they should occupy 2 separate dwellings and reasonable that housing costs should be met in respect of both dwellings, or

(c) in the case where a person has moved into a new dwelling occupied as the home, except where sub-paragraph (5) applies, for a period not exceeding 4 benefit weeks from the first day of the benefit week where the move takes place on that day, but if it does not, from the first day of the next following benefit week if his liability to make payments in respect of 2 dwellings is unavoidable.

(7) Where –

(a) a person has moved into a dwelling and was liable to make payments in respect of that dwelling before moving in;

(b) he had claimed state pension credit before moving in and either that claim has not yet been determined or it has been determined but –

(i) an amount has not been included under this Schedule, or

(ii) the claim has been refused and a further claim has been made within 4 weeks of the date on which the claimant moved into the new dwelling occupied as the home, and

(c) the delay in moving into the dwelling in respect of which there was liability to make payments before moving in was reasonable and –

(i) that delay was necessary in order to adapt the dwelling to meet the disablement needs of the claimant, his partner or a person under the age of 20 for whom either the claimant or his partner is responsible,

(ii) the move was delayed pending the outcome of an application under Part VIII of the Contributions and Benefits Act[^f00068] for a social fund payment to meet a need arising out of the move or in connection with setting up the home in the dwelling, or

(iii) the person became liable to make payments in respect of the dwelling while he was a patient or was in a residential care home , nursing home or an independent hospital,

he shall be treated as occupying the dwelling as his home for any period not exceeding 4 weeks immediately prior to the date on which he moved into the dwelling and in respect of which he was liable to make payments.

(8) This sub-paragraph applies to a person who enters a residential care home, nursing home or an independent hospital—

(a) for the purpose of ascertaining whether that residential care home, nursing home or independent hospital suits his needs, and

(b) with the intention of returning to the dwelling which he normally occupies as his home should, in the event that, the residential care home, nursing home or independent hospital prove not to suit his needs,

and while in the residential care home, nursing home or independent hospital, the part of the dwelling which he normally occupies as his home is not let, or as the case may be, sub-let to another person.

(9) A person to whom sub-paragraph (8) applies shall be treated as occupying the dwelling he normally occupies as his home during any period (commencing with (and including) the day he enters the residential care home, nursing home or independent hospital) not exceeding 13 weeks in which the person is resident in the residential care home, nursing home or independent hospital, but only in so far as the total absence from the dwelling does not exceed 52 weeks.

(10) A person, other than a person to whom sub-paragraph (1l) applies, shall be treated as occupying a dwelling as his home throughout any period of absence not exceeding 13 weeks, if, and only if –

(a) he intends to return to occupy the dwelling as his home;

(b) the part of the dwelling normally occupied by him has not been let or, as the case may be, sub-let to another person, and

(11) This sub-paragraph applies to a person whose absence from the dwelling he normally occupies as his home is temporary and –

(a) he intends to return to occupy the dwelling as his home;

(b) while the part of the dwelling which is normally occupied by him has not been let or, as the case may be, sub-let;

(i) detained in custody on remand pending trial or, as a condition of bail, required to reside in a dwelling, other than the dwelling he occupies as his home or, detained pending sentence upon conviction; or

(ii) resident in a hospital or similar institution as a patient;

(iii) undergoing or, as the case may be, his partner or a person who has not attained the age of 20 and who is dependent on him or his partner is undergoing, in the United Kingdom or elsewhere, medical treatment, or medically approved convalescence, in accommodation other than in a residential care home , nursing home or an independent hospital;

(iv) following, in the United Kingdom or elsewhere, a training course;

(v) undertaking medically approved care of a person residing in the United Kingdom or elsewhere;

(vi) undertaking the care of a person under the age of 20 whose parent or guardian is temporarily absent from the dwelling normally occupied by that parent or guardian for the purpose of receiving medically approved care or medical treatment;

(vii) a person who is, whether in the United Kingdom or elsewhere, receiving medically approved care provided in accommodation other than a residential care home , nursing home or an independent hospital;

(viii) a full-time student to whom sub-paragraph (3) or (6)(b) does not apply;

(ix) a person, other than a person to whom sub-paragraph (8) applies, who is receiving care provided in a residential care home , nursing home or an independent hospital, or

(x) a person to whom sub-paragraph (6)(a) does not apply and who has left the dwelling he occupies as his home through fear of violence in that dwelling, or by a person who was formerly his partner or is a close relative, and

(d) the period of his absence is unlikely to exceed a period of 52 weeks or, in exceptional circumstances, is unlikely substantially to exceed that period.

(12) A person to whom sub-paragraph (11) applies is to be treated as occupying the dwelling he normally occupies as his home during any period of absence not exceeding 52 weeks beginning with and including the first day of that absence.

(13) In this paragraph –

(a) “medically approved” means certified by a medical practitioner;

(b) “training course” means such a course of training or instruction provided wholly or partly by, or on behalf of, or in pursuance of arrangements made with, or approved by, or on behalf of, a government department.

Housing costs not met

5

(1) No amount may be met under the provisions of this Schedule –

(a) in respect of housing benefit expenditure, or

(b) where the claimant is in accommodation which is a residential care home , nursing home or an independent hospital except where he is in such accommodation during a temporary absence from the dwelling he occupies as his home and in so far as they relate to temporary absences, the provisions of paragraph 4(8) to (12) apply to him during that absence.

(1A) In paragraph (1), “housing benefit expenditure” means expenditure in respect of which housing benefit is payable as specified in regulation 13(1) of the Housing Benefit (State Pension Credit) Regulations but does not include any such expenditure in respect of which an additional amount is applicable under regulation 6(6)(c) (housing costs).

(2) Subject to sub-paragraphs (3) to (13), loans which, apart from this paragraph, qualify under paragraph 11 shall not so qualify where the loan was incurred during the relevant period and was incurred –

(a) after 1st October 1995;

(b) after 2nd May 1994 and the housing costs applicable to that loan were not met by virtue of the former paragraph 5A of Schedule 3 to the Income Support Regulations[^f00069] in any one or more of the 26 weeks preceding 2nd October 1995, or

(i) who was not at that time entitled to income support, and

(ii) who becomes, or whose partner becomes entitled to income support or an income-based jobseeker’s allowance after 1st October 1995 and that entitlement is within 26 weeks of an earlier entitlement to income support or an income-based jobseeker’s allowance of the claimant or his partner.

(3) Sub-paragraph (2)(c) shall not apply in respect of a loan where the claimant has interest payments on that loan met without restrictions under an award of income support in respect of a period commencing before 2nd October 1995.

(4) The “relevant period” for the purposes of this paragraph is any period during which the person to whom the loan was made –

(a) is entitled to income support, income-based jobseeker’s allowance , income-related employment and support allowance or state pension credit, or

(b) has a partner and the partner is entitled to income support, income-based jobseeker’s allowance , income-related employment and support allowance or to state pension credit,

together with any linked period, that is to say a period falling between 2 periods separated by not more than 26 weeks in which one of heads (a) or (b) is satisfied.

(5) For the purposes of sub-paragraph (4), a person shall be treated as entitled to income support or, as the case may be, income-based jobseeker’s allowance , state pension credit or income-related employment and support allowance , during any period when he or his partner was not so entitled because –

(a) that person or his partner was participating in an employment programme specified in regulation 75(l)(a) of the Jobseeker’s Allowance Regulations[^f00070], in the Preparation for Employment Programme specified in regulation 75(1)(a)(v) of those Regulations[^f00071] ..., and

(b) in consequence of such participation that person or his partner was engaged in remunerative work or –

(i) in the case of income support, had an income in excess of the claimant’s applicable amount as prescribed in Part IV of the Income Support Regulations, or

(ii) in the case of state pension credit, the claimant’s income exceeded the amount of his state pension credit entitlement.

(6) For the purposes of sub-paragraph (4) –

(a) any week in the period of 26 weeks ending on 1st October 1995 on which there arose an entitlement to income support such as is mentioned in that sub-paragraph shall be taken into account in determining when the relevant period commences, and

(b) 2 or more periods of entitlement and any intervening linked periods shall together form a single relevant period.

(7) Where the loan to which sub-paragraph (2) refers has been applied –

(a) for paying off an earlier loan, and that earlier loan qualified under paragraph 11 during the relevant period, or

(b) to finance the purchase of a property where an earlier loan, which qualified under paragraph 11 or 12 during the relevant period in respect of another property, is paid off (in whole or in part) with monies received from the sale of that property,

then the amount of the loan to which sub-paragraph (2) applies is the amount (if any) by which the new loan exceeds the earlier loan.

(8) Notwithstanding sub-paragraphs (1) to (7), housing costs shall be met in any case where a claimant satisfies any of the conditions specified in sub-paragraphs (9) to (12), but –

(a) those costs shall be subject to any additional limitations imposed by the sub-paragraph, and

(b) where the claimant satisfies the conditions in more than one of these sub-paragraphs, only one sub-paragraph shall apply in his case and the one that applies shall be the one most favourable to him.

(9) The conditions specified in this sub-paragraph are that –

(a) during the relevant period the claimant or his partner acquires an interest (“the relevant interest”) in a dwelling which he then occupies or continues to occupy, as his home, and

(b) in the week preceding the week in which the relevant interest was acquired, housing benefit was payable to the claimant or his partner,

so however that the amount to be met by way of housing costs shall initially not exceed the aggregate of –

(i) the housing benefit payable in the week mentioned at sub-paragraph (9)(b), and

(ii) any additional amount applicable to the claimant or his partner in accordance with regulation 6(6)(c) in that week,

and shall be increased subsequently only to the extent that it is necessary to take account of any increase, arising after the date of the acquisition, in the standard rate or in any housing costs which qualify under paragraph 13 (other housing costs).

(10) The condition specified in this sub-paragraph is that the loan was taken out, or an existing loan increased, to acquire alternative accommodation more suited to the special needs of a disabled person than the accommodation which was occupied before the acquisition by the claimant.

(11) The conditions specified in this sub-paragraph are that –

(a) the loan commitment increased in consequence of the disposal of the dwelling occupied as the home and the acquisition of an alternative such dwelling, and

(b) the change of dwelling was made solely by reason of the need to provide separate sleeping accommodation for persons of different sexes aged 10 or over but under 20 who live with the claimant and are looked after by the claimant or his partner.

(12) The conditions specified in this sub-paragraph are that –

(a) during the relevant period the claimant or his partner acquires an interest (“the relevant interest”) in a dwelling which he then occupies as his home, and

(b) in the week preceding the week in which the relevant interest was acquired, an additional amount was applicable under regulation 6(6)(c) in respect of the claimant or his partner which included an amount determined by reference to paragraph 13 and did not include any amount specified in paragraph 11 or 12,

so however that the amount to be met by way of housing costs shall initially not exceed the amount so determined, and shall be increased subsequently only to the extent that it is necessary to take account of any increase, arising after the date of acquisition, in the standard rate or in any housing costs which qualify under paragraph 13 (other housing costs).

(13) Paragraphs 6 to15 shall have effect subject to the provisions of this paragraph.

Apportionment of housing costs

6

(1) Where for the purposes of Article 4 of, and Schedule 5 to, the Rates (Northern Ireland) Order 1977[^f00072], it appears to the Department of Finance and Personnel or it was determined in pursuance of paragraphs 2 to 4 of that Schedule that the hereditament, includes the home and that only a proportion of the rateable value of the hereditament was attributable to use for the purpose of a private dwelling, the additional amount applicable under this Schedule shall be such proportion of the amounts applicable in respect of the hereditament or premises as a whole as is equal to the proportion of the rateable value of the hereditament attributable to the part of the hereditament used for the purposes of a private tenancy.

(2) Where responsibility for expenditure which relates to housing costs met under this Schedule is shared, the additional amount applicable shall be calculated by reference to the appropriate proportion of that expenditure for which the claimant is responsible.

The calculation for loans

7

(1) The weekly amount of housing costs to be met under this Schedule in respect of a loan which qualifies under paragraph 11 or 12 shall be calculated by applying the formula –

$$A×B52$where –A = the amount of the loan which qualifies under paragraph 11 or 12;B = the standard rate for the time being applicable in respect of that loan.$

(2) For the purposes of sub-paragraph (1) subject to sub-paragraphs (3) and (4A), the amount of the qualifying loan –

(a) except where head (b) applies, shall be determined on the date the housing costs are first met and thereafter on the anniversary of that date;

(b) where housing costs are being met in respect of a qualifying loan (“the existing loan”) and housing costs are subsequently met in respect of one or more further qualifying loans (“the new loan”), shall be the total amount of those loans determined on the date the housing costs were first met in respect of the new loan and thereafter on the anniversary of the date housing costs were first met in respect of the existing loan.

(3) Where the claimant or his partner –

(a) ceases to be in receipt of or treated as being in receipt of state pension credit; but

(b) within 12 weeks thereof, one of them subsequently becomes entitled again to the credit, and

the amount of the qualifying loan shall be –

(i) the amount last determined for the purposes of the earlier entitlement, and

(ii) recalculated on the relevant date specified in sub-paragraph (4C).

(4) This sub-paragraph applies if –

(a) the earlier entitlement included an amount in respect of a qualifying loan, and

(b) the circumstances affecting the calculation of the qualifying loan remain unchanged since the last calculation of that loan.

(4A) Where –

(a) the last day on which either the claimant or his partner were entitled to income support , income-based jobseeker’s allowance or income-related employment and support allowance was no more than 12 weeks before –

(i) except where sub-head (ii) applies, the first day of entitlement to state pension credit, or

(ii) where the claim for state pension credit was treated as made on a day earlier than the day on which it was actually made (“the actual date”), the day which would have been the first day of entitlement to state pension credit had the claim been treated as made on the actual date, and

(b) sub-paragraph (4B) applies,

the amount of the qualifying loan shall be the amount last determined for the purposes of the earlier entitlement and recalculated on the relevant date specified in sub-paragraph (4C).

(4B) This sub-paragraph applies –

(a) where the earlier entitlement was to income support, if their applicable amount included an amount determined in accordance with Schedule 3 to the Income Support Regulations as applicable to them in respect of a loan which qualifies under paragraph 15 or 16 of that Schedule, ...

(b) where the earlier entitlement was to an income-based jobseeker’s allowance, if their applicable amount included an amount determined in accordance with Schedule 2 to the Jobseeker’s Allowance Regulations as applicable to them in respect of a loan which qualifies under paragraph 14 or 15 of that Schedule,

(c) where the earlier entitlement was to an income-related employment and support allowance, if their applicable amount included an amount determined in accordance with Schedule 6 to the Employment and Support Allowance Regulations as applicable to them in respect of a loan which qualifies under paragraph 16 to 18 of that Schedule, and

where the circumstances affecting the calculation of the qualifying loan remain unchanged since the last calculation of that loan and in this paragraph, “qualifying loan” shall, where the context requires, be construed accordingly.

(4C) The recalculation shall take place –

(a) in a case where sub-paragraph (3) applies, on each subsequent anniversary of the date on which, for the purposes of sub-paragraph (2), housing costs were met;

(b) in a case where sub-paragraph (4A) applies –

(i) where housing costs under the earlier entitlement were being met in respect of more than one qualifying loan and the amounts of those loans were recalculated on different dates, on the first of those dates which falls during the award of state pension credit and on each subsequent anniversary of that date;

(ii) in any other case, on each subsequent anniversary of the date on which housing costs were first met under the earlier entitlement;

(c) in the case of claims for state pension credit made between 6th October 2003 and 5th October 2004 and to which sub-paragraph (4A) does not apply –

(i) where there are no housing costs to be met as at the date of claim but housing costs are to be met in respect of a qualifying loan taken out after the date of claim, on each subsequent anniversary of the date on which housing costs in respect of that loan were first met;

(ii) in any other case, on each subsequent anniversary of the date on which the decision was made to award state pension credit.

(5) Where in the period since the amount applicable under this Schedule was last determined, there has been a change of circumstances, other than a reduction in the amount of the outstanding loan, which increases or reduces the amount applicable, it shall be recalculated so as to take account of that change.

General provisions applying to housing costs

8

(1) Where for the time being a loan exceeds, or in a case where more than one loan is to be taken into account, the aggregate of those loans exceeds the appropriate amount specified in sub-paragraph (2), then the amount of the loan or, as the case may be, the aggregate amount of those loans, shall for the purposes of this Schedule, be the appropriate amount.

(2) Subject to sub-paragraphs (3) to (8), the appropriate amount is £100,000.

(3) Where a person is treated under paragraph 4(6) (payments in respect of 2 dwellings) as occupying 2 dwellings as his home, then the restrictions imposed by sub-paragraph (1) shall be applied separately to the loans for each dwelling.

(4) In a case to which paragraph 6 (apportionment of housing costs) applies, the appropriate amount for the purposes of sub-paragraph (1) shall be the lower of –

(a) a sum determined by applying the formula –

$$P×Q,$where –P = the relevant fraction for the purposes of paragraph 6, andQ = the amount or, as the case may be, the aggregate amount for the time being of any loan or loans which qualify under this Schedule, or$

(b) the sum for the time being specified in sub-paragraph (2).

(5) In a case to which paragraph 11(3) or 12(3) (loans which qualify in part only) applies, the appropriate amount for the purposes of sub-paragraph (1) shall be the lower of –

(a) a sum representing for the time being the part of the loan applied for the purposes specified in paragraph 11(1) or, as the case may be, paragraph 12(1), or

(b) the sum for the time being specified in sub-paragraph (2).

(6) In the case of any loan to which paragraph 12(2)(k) (loan taken out and used for the purpose of adapting a dwelling for the special needs of a disabled person) applies the whole of the loan, to the extent that it remains unpaid, shall be disregarded in determining whether the amount for the time being specified in sub-paragraph (2) is exceeded.

(7) Where in any case the amount for the time being specified for the purposes of sub-paragraph (2) is exceeded and there are 2 or more loans to be taken into account under either or both paragraphs 11 and 12, then the amount of eligible interest in respect of each of those loans to the extent that the loans remain outstanding shall be determined as if each loan had been reduced to a sum equal to the qualifying portion of that loan.

(8) For the purposes of sub-paragraph (7), the qualifying portion of a loan shall be determined by applying the following formula –

$$R×ST$where –R = the amount for the time being specified for the purposes of sub-paragraph (1);S = the amount of the outstanding loan to be taken into account;T = the aggregate of all outstanding loans to be taken into account under paragraphs 11 and 12.$

The standard rate

9

(1) The standard rate is the rate of interest applicable per annum to a loan which qualifies under this Schedule.

(2) The standard rate is to be 6.08%.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Excessive housing costs

10

–

(1) Housing costs which, apart from this paragraph, fall to be met under this Schedule shall be met only to the extent specified in sub-paragraph (3) where –

(a) the dwelling occupied as the home, excluding any part which is let, is larger than is required by the claimant, his partner (if he has one), any person under the age of 20 and any other non-dependants having regard, in particular, to suitable alternative accommodation occupied by a household of the same size;

(b) the immediate area in which the dwelling occupied as the home is located is more expensive than other areas in which suitable alternative accommodation exists, or

(c) the outgoings of the dwelling occupied as the home which are met under paragraphs 11 to 13 are higher than the outgoings of suitable alternative accommodation in the area.

(2) For the purposes of sub-paragraph (1), no regard shall be had to the capital value of the dwelling occupied as the home.

(3) Subject to sub-paragraphs (4) to (10), the amount of the loan which falls to be met shall be restricted and the excess over the amounts which the claimant would need to obtain suitable alternative accommodation shall not be allowed.

(4) Where, having regard to the relevant factors, it is not reasonable to expect the claimant and his partner to seek alternative cheaper accommodation, no restriction shall be made under sub-paragraph (3).

(5) In sub-paragraph (4) “the relevant factors” are –

(a) the availability of suitable accommodation and the level of housing costs in the area, and

(b) the circumstances of the claimant and those who live with him, including in particular the age and state of health of any of those persons, the employment prospects of the claimant and, where a change in accommodation is likely to result in a change of school, the effect on the education of any person below the age of 20 who lives with the claimant.

(6) Where sub-paragraph (4) does not apply and the claimant or the claimant’s partner was able to meet the financial commitments for the dwelling occupied as the home when these were entered into, no restriction shall be made under this paragraph during the first 26 weeks immediately following the date on which—

(a) the claimant became entitled to state pension credit where the claimant’s housing costs fell within one of the cases in sub-paragraph (1) on that date; or

(b) a decision took effect which was made under Article 11 of the Social Security (Northern Ireland) Order 1998 (decisions superseding earlier decisions) on the grounds that the claimant’s housing costs fell within one of the cases in sub-paragraph (1),

nor during the next 26 weeks if and so long as the claimant uses his best endeavours to obtain cheaper accommodation.

(7) For the purposes of calculating any period of 26 weeks referred to in sub-paragraph (6), and for those purposes only, a person shall be treated as entitled to state pension credit for any period of 12 weeks or less in respect of which he was not in receipt of state pension credit and which fell immediately between periods in respect of which he was in receipt thereof.

(8) Any period in respect of which –

(a) state pension credit was paid to a person, and

(b) it was subsequently determined that he was not entitled to state pension credit for that period,

shall be treated for the purposes of sub-paragraph (7) as a period in respect of which he was not in receipt of state pension credit.

(9) Any period which falls before the appointed day in respect of which a person was entitled to income support or income-based jobseeker’s allowance shall be treated, for the purpose of calculating any period of 26 weeks or as the case may be 12 weeks mentioned in sub-paragraphs (6) and (7), as a period in respect of which he was entitled to state pension credit.

(10) References to state pension credit in sub-paragraphs (6) and (7) shall be treated as including references to income support , income-based jobseeker’s allowance and income-related employment and support allowance in respect of any period which falls immediately before –

(a) the appointed day, or

(b) the day the claimant or his partner attains the qualifying age.

Loans on residential property

11

(1) A loan qualifies under this paragraph where the loan was taken out to defray monies applied for any of the following purposes –

(a) acquiring an interest in the dwelling occupied as the home, or

(b) paying off another loan to the extent that the other loan would have qualified under head (a) had the loan not been paid off.

(2) For the purposes of this paragraph, references to a loan include also a reference to money borrowed under a hire purchase agreement for any purpose specified in sub-paragraph (l).

(3) Where a loan is applied only in part for the purposes specified in sub-paragraph (1), only that portion of the loan which is applied for that purpose shall qualify under this paragraph.

Loans for repairs and improvements to the dwelling occupied as the home

12

(1) A loan qualifies under this paragraph where the loan was taken out, with or without security, for the purpose of –

(a) carrying out repairs and improvements to the dwelling occupied as the home;

(b) paying any service charge imposed to meet the cost of repairs and improvements to the dwelling occupied as the home;

(c) paying off another loan to the extent that the other loan would have qualified under head (a) or (b) had the loan not been paid off,

and the loan was used for that purpose, or is used for that purpose within 6 months of the date of receipt or such further period as may be reasonable in the particular circumstances of the case.

(2) In sub-paragraph (1) “repairs and improvements” means any of the following measures undertaken with a view to maintaining the fitness of the dwelling for human habitation or, where the dwelling forms part of a building, any part of the building containing that dwelling –

(a) provision of a fixed bath, shower, wash basin, sink or lavatory, and necessary associated plumbing, including the provision of hot water not connected to a central heating system;

(b) repairs to existing heating system;

(d) provision of ventilation and natural lighting;

(e) provision of drainage facilities;

(f) provision of facilities for preparing and cooking food;

(g) provision of insulation of the dwelling occupied as the home;

(h) provision of electric lighting and sockets;

(i) provision of storage facilities for fuel or refuse;

(j) repairs of unsafe structural defects;

(k) adapting a dwelling for the special needs of a disabled person, or

(l) provision of separate sleeping accommodation for persons of different sexes aged 10 or over but under age 20 who live with the claimant and for whom the claimant or partner is responsible.

(3) Where a loan is applied only in part for the purposes specified in sub-paragraph (1), only that portion of the loan which is applied for that purpose shall qualify under this paragraph.

Other housing costs

13

(1) Subject to the deduction specified in sub-paragraph (2), there shall be met under this paragraph the amounts, calculated on a weekly basis, in respect of the following housing costs –

(a) ground rent;

(b) service charges;

(d) where the dwelling occupied as the home is a tent, payments in respect of the tent and the site on which it stands.

(2) Subject to sub-paragraph (3), the deductions to be made from the weekly amounts to be met under this paragraph are –

(a) where the costs are inclusive of any of the items mentioned in paragraph 6(2) of Schedule 1 to the Housing Benefit (State Pension Credit) Regulations (payment in respect of fuel charges), the deductions prescribed in that paragraph unless the claimant provides evidence on which the actual or approximate amount of the service charge for fuel may be estimated, in which case the estimated amount;

(b) where the costs are inclusive of ineligible service charges within the meaning of paragraph 1 of Schedule 1 to the Housing Benefit (State Pension Credit) Regulations (ineligible service charges), the amounts attributable to those ineligible service charges or where that amount is not separated from or separately identified within the housing costs to be met under this paragraph, such part of the payments made in respect of those housing costs which are fairly attributable to the provision of those ineligible services having regard to the costs of comparable services;

(c) any amount for repairs and improvements, and for this purpose the expression “repairs and improvements” has the same meaning it has in paragraph 12(2).

(3) Where arrangements are made for the housing costs, which are met under this paragraph and which are normally paid for a period of 52 weeks, to be paid instead for a period of 53 weeks, or to be paid irregularly, or so that no such costs are payable or collected in certain periods, or so that the costs for different periods in the year are of different amounts, the weekly amount shall be the amount payable for the year divided by 52.

(4) Where the claimant or the claimant’s partner –

(a) pays for reasonable repairs or redecoration to be carried out to the dwelling he occupies;

(b) that work was not the responsibility of the claimant or his partner, and

then those costs shall, for a period not exceeding 8 weeks, be treated as payable.

Persons residing with the claimant

14

(1) Subject to sub-paragraphs (2) to (8), the following deductions from the amount to be met under paragraphs 1 to 13 in respect of housing costs shall be made –

(a) in respect of a non-dependant aged 18 or over who is engaged in any remunerative work, £47·75;

(b) in respect of a non-dependant aged 18 or over to whom head (a) does not apply, £7·40.

(2) In the case of a non-dependant aged 18 or over to whom sub-paragraph (1)(a) applies because he is in remunerative work, where the claimant satisfies the Department that the non-dependant’s gross weekly income is –

(a) less than £116∙00, the deduction to be made under this paragraph shall be the deduction specified in sub-paragraph (1)(b);

(b) not less than £116∙00 but less than £172∙00, the deduction to be made under this paragraph shall be £17.00;

(d) not less than £223∙00 but less than £296∙00, the deduction to be made under this paragraph shall be £38.20;

(e) not less than £296∙00 but less than £369∙00, the deduction to be made under this paragraph shall be £43.50.

(3) Only one deduction shall be made under this paragraph in respect of partners and where, but for this sub-paragraph, the amount that would fall to be deducted in respect of one partner is higher than the amount (if any) that would fall to be deducted in respect of the other partner, the higher amount shall be deducted.

(4) In applying the provisions of sub-paragraph (2) in the case of partners, only one deduction shall be made in respect of the partners based on the partners' joint weekly income.

(5) Where a person is a non-dependant in respect of more than one joint occupier of a dwelling (except where the joint occupiers are partners), the deduction in respect of that non-dependant shall be apportioned between the joint occupiers (the amount so apportioned being rounded to the nearest penny) having regard to the number of joint occupiers and the proportion of the housing costs in respect of the dwelling occupied as the home payable by each of them.

(6) No deduction shall be made in respect of any non-dependants occupying the dwelling occupied as the home of the claimant, if the claimant or any partner of his is –

(a) registered as blind in a register compiled by a Health and Social Services Board established under Article 16 of the 1972 Order, or who is within 28 weeks of ceasing to be so registered, or

(b) receiving in respect of himself either –

(i) an attendance allowance, or

(ii) the care component of the disability living allowance.

(7) No deduction shall be made in respect of a non-dependant –

(a) if, although he resides with the claimant, it appears to the Department that the dwelling occupied as his home is normally elsewhere;

(b) if he is in receipt of an allowance paid in connection with training provided or arranged by the Department for Employment and Learning under section 1(1) or 3 of the Employment and Training Act (Northern Ireland) 1950 for which persons aged under 18 are eligible and for which persons aged 18 to 24 may be eligible;

(c) if he is a full-time student during a period of study or, if he is not in remunerative work, during a recognised summer vacation appropriate to his course;

(cc) if he is a full-time student and the claimant or his partner has attained the age of 65;

(d) if he is aged under 25 and in receipt of income support or an income-based jobseeker’s allowance, or

(dd) in respect of whom a deduction in the calculation of a rent rebate or allowance falls to be made under regulation 53 of the Housing Benefit (State Pension Credit) Regulations (non-dependent deductions);

(e) if he is not residing with the claimant because he has been an in-patient residing in a hospital or similar institution for a period in excess of 52 weeks, or is a prisoner, and in calculating any period of 52 weeks, any 2 or more distinct periods separated by one or more intervals each not exceeding 28 days shall be treated as a single period; or

(f) if he is in receipt of state pension credit.

(g) if he is aged less than 25 and is in receipt of employment and support allowance which does not include an amount under section 4(4) or (5) of the Welfare Reform Act (components).

(8) In the case of a non-dependant to whom sub-paragraph (1) applies because he is in remunerative work, there shall be disregarded from his gross income –

(a) any attendance allowance or disability living allowance received by him;

(b) any payment from the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) (No. 2) Trust (“the Trusts”), the Fund, the Eileen Trust or the Independent Living Fund (2006) , and

Rounding of fractions

15

Where any calculation made under this Schedule results in a fraction of a penny, that fraction shall be treated as a penny.

SCHEDULE 3 — SPECIAL GROUPS

Polygamous marriages

1

(1) The provisions of this paragraph apply in any case to which section 12 of the Act (polygamous marriages) applies if the claimant is taken to be “the person in question” for the purposes of that section.

(2) The following provision shall apply instead of section 3(1) of the Act (savings credit) –

(1) The first condition is that, if the claimant is taken to be “the person in question” for the purposes of section 12 of the Act (polygamous marriages) – (a) the case is one to which that section applies, and (b) any one or more of the persons falling within section 12(1)(c) of the Act has attained the age of 65.

(3) The following provision shall apply instead of section 4(1) of the Act (exclusions) –

(1) A claimant is not entitled to state pension credit if, taking the claimant to be “the person in question” for the purposes of section 12 of the Act (polygamous marriages) – (a) the case is one to which that section applies, and (b) any one or more of the other persons falling within section 12(1)(c) of the Act is entitled to state pension credit.

(4) The following provision shall apply instead of section 5 of the Act (income and capital of claimant, spouse, etc.) –

(1) This section applies in any case to which section 12 of the Act (polygamous marriages) applies if the claimant is taken to be “the person in question” for the purposes of that section. (2) In any such case, the income and capital of each of the other persons falling within section 12(1)(c) of the Act shall be treated for the purposes of this Act as income and capital of the claimant, except where regulations provide otherwise.

(5) In regulation 6 (amount of the guarantee credit) for paragraph (1) there shall be substituted the following paragraph –

(1) Except as provided in the following provisions of these Regulations, in a case to which section 12 of the Act (polygamous marriages) applies if the claimant is taken to be “the person in question” for the purposes of that section, the standard minimum guarantee is the sum of – (a) £189∙35 per week in respect of the claimant and any one spouse of the claimant's; and (b) £65∙30 per week in respect of each additional spouse (whether of the claimant or that spouse) who falls within section 12 (1)(c) of the Act.

(6) The maximum savings credit shall be determined on the assumption that the standard minimum guarantee is the amount prescribed for partners under regulation 6(1)(a).

(7) In regulation 7 (savings credit) for paragraph (2) there shall be substituted the following paragraph –

(2) In any case to which section 12 of the Act (polygamous marriages) applies, if the claimant is taken to be “the person in question” for the purposes of that section, the amount prescribed for the savings credit threshold is £145∙80.

(8) In regulations ... 5, 6(8), 10, 12 and 14 and in paragraph 6(5)(b)(v) of Schedule 1 and in Schedule 2, any reference to a partner includes also a reference to any additional spouse to whom this paragraph applies.

(9) For the purposes of regulation 6(5)(a) and (b), paragraph 1(1)(b)(i) of Part I of Schedule 1 is satisfied only if both partners and each additional spouse to whom this paragraph applies are in receipt of attendance allowance or the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the Contributions and Benefits Act.

(10) For the purposes of regulation 6(5)(a), paragraph 1(1)(c) of Part I of Schedule 1 is only satisfied if –

(a) both partners and each additional spouse to whom this paragraph applies all fall within either paragraph 1(1)(c)(i) or (ii) of that Schedule;

(b) at least one of them falls within paragraph 1(1)(c)(i) of that Schedule;

(d) either paragraph 1(1)(c)(iv) of that Schedule is satisfied or a person is entitled to and in receipt of an allowance under section 70 of the Contributions and Benefits Act in respect of caring for one or more, but not all, the persons who fall within paragraph 1(1)(c)(i) of that Schedule.

(11) Any reference in this paragraph to an additional spouse to whom this paragraph applies is a reference to any person who is an additional spouse (whether of the claimant’s or of a spouse of the claimant's) falling within section 12(1)(c) of the Act if the claimant is taken to be “the person in question” for the purposes of that section.

Further provisions in the case of patients

2

(1) Sub-paragraph (2) applies in the case of a claimant who is detained, or liable to be detained, under Article 53 of the Mental Health (Northern Ireland) Order 1986 (removal to hospital of persons serving sentences of imprisonment, etc.) but not if his detention continues after the date which the Secretary of State certifies would have been the earliest date on which he could have been released in respect of, or from, the prison sentence if he had not been detained in hospital.

(2) In the case of a claimant to whom paragraph (1) applies—

(a) section 2 of the Act has effect with the substitution of a reference to a nil amount for the reference to the standard minimum guarantee in subsection (3)(a) of that section , and nil is the prescribed additional amount for the purposes of subsection (3)(b); and

(b) the maximum amount of savings credit shall be taken to be nil.

SCHEDULE 4 — AMOUNTS TO BE DISREGARDED IN THE CALCULATION OF INCOME OTHER THAN EARNINGS

1

In addition to any sum which falls to be disregarded in accordance with paragraphs 3 to 6, £10 of any of the following, namely –

(a) a war disablement pension (except insofar as such a pension falls to be disregarded under paragraph 2 or 3);

(b) a war widow’s or war widower’s pension;

(ba) unless sub-paragraph (a) or (b) applies, any payment described in regulation 15(5)(ac) (except insofar as such a payment falls to be disregarded under paragraph 2 or 3);

(c) a pension payable to a person as a surviving spouse or surviving civil partner under ... any power of Her Majesty otherwise than under any statutory provision, to make provision about pensions for or in respect of persons who have been disabled or have died in consequence of service as members of the armed forces of the Crown;

(cc) a guaranteed income payment; and, if the amount of that payment has been abated to less than £10 by a payment under the Armed Forces Pension Scheme 1975 or the Armed Forces Pension Scheme 2005, so much of the pension payable under either of those schemes as would not, in aggregate with the amount of the guaranteed income payment disregarded, exceed £10

(d) a payment made to compensate for the non-payment of such a pension or payment as is mentioned in any of the preceding sub-paragraphs ;

(e) a pension paid by the government of a country outside Great Britain which is analogous to any of the pensions or payments mentioned in sub-paragraphs (a) to (cc);

(f) a pension paid to victims of National Socialist persecution under any special provision made by the law of the Federal Republic of Germany, or any part of it, or of the Republic of Austria.

2

The whole of any amount included in a pension to which paragraph 1 relates in respect of –

(a) the claimant’s need for constant attendance;

(b) the claimant’s exceptionally severe disablement.

3

Any mobility supplement under Article 20 of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 2006 (including such a supplement by virtue of any other scheme or order) or under Article 25A of the Personal Injuries (Civilians) Scheme 1983[^f00083] or any payment intended to compensate for the non-payment of such a supplement.

4

Any supplementary pension under Article 23(2) of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 2006 (pensions to surviving spouses and surviving civil partners) and any analogous payment made by the Secretary of State for Defence to any person who is not a person entitled under that Order.

5

In the case of a pension awarded at the supplementary rate under Article 27(3) of the Personal Injuries (Civilians) Scheme 1983[^f00085] (pensions to surviving spouses and surviving civil partners), the sum specified in paragraph 1(c) of Schedule 4 to that Scheme.

6

(1) Any payment which is –

(a) made under any of the Dispensing Instruments to a widow, widower or surviving civil partner of a person –

(i) whose death was attributable to service in a capacity analogous to service as a member of the armed forces of the Crown, and

(ii) whose service in such capacity terminated before 31st March 1973, and

(b) equal to the amount specified in Article 23(2) of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 2006.

(2) In this paragraph “the Dispensing Instruments” means the Order in Council of 19th December 1881, the Royal Warrant of 27th October 1884 and the Order by His Majesty of 14th January 1922[^f00086] (exceptional grants of pay, non-effective pay and allowances).

7

£10 of any widowed parent’s allowance to which the claimant is entitled under section 39A of the Contributions and Benefits Act[^f00087].

8

(1) Where the claimant occupies a dwelling as his home and he provides in that dwelling board and lodging accommodation, an amount, in respect of each person for whom such accommodation is provided for the whole or any part of a week, equal to –

(a) where the aggregate of any payments made in respect of any one week in respect of such accommodation provided to such person does not exceed £20, 100 per cent. of such payments, or

(b) where the aggregate of any such payments exceeds £20, £20 and 50 per cent. of the excess over £20.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

If the claimant –

(a) owns the freehold or leasehold interest in any property or is a tenant of any property;

(b) occupies a part of that property, and

(c) has an agreement with another person allowing that person to occupy another part of that property on payment of rent and –

(i) the amount paid by that person is less than £20 per week, the whole of that amount, or

(ii) the amount paid is £20 or more per week, £20.

10

Where a claimant receives income under an annuity purchased with a loan, which satisfies the following conditions –

(a) that the loan was made as part of a scheme under which not less than 90 per cent. of the proceeds of the loan were applied to the purchase by the person to whom it was made of an annuity ending with his life or with the life of the survivor of 2 or more persons (in this paragraph referred to as “the annuitants”) who include the person to whom the loan was made;

(b) that at the time the loan was made the person to whom it was made or each of the annuitants had attained the age of 65;

(c) that the loan was secured on a dwelling in Northern Ireland and the person to whom the loan was made or one of the annuitants owns an estate or interest in that dwelling;

(d) that the person to whom the loan was made or one of the annuitants occupies the dwelling on which it was secured as his home at the time the interest is paid, and

(e) that the interest payable on the loan is paid by the person to whom the loan was made or by one of the annuitants,

the amount, calculated on a weekly basis, equal to –

(i) where, or insofar as, section 369 of the Income and Corporation Taxes Act 1988[^f00088] (mortgage interest payable under deduction of tax) applies to the payments of interest on the loan, the interest which is payable after deduction of a sum equal to income tax on such payments at the applicable percentage of income tax within the meaning of section 369(1A) of that Act[^f00089];

(ii) in any other case the interest which is payable on the loan without deduction of such a sum.

11

(1) Any payment, other than a payment to which sub-paragraph (2) applies, made to the claimant by Trustees in exercise of a discretion exercisable by them.

(2) This sub-paragraph applies to payments made to the claimant by Trustees in exercise of a discretion exercisable by them for the purpose of –

(a) obtaining food, ordinary clothing or footwear or household fuel;

(b) the payment of rent , rates or water charges for which that claimant or his partner is liable;

(3) In a case to which sub-paragraph (2) applies, £20 or –

(a) if the payment is less than £20, the whole payment, or

(b) if, in the claimant’s case, £10 is disregarded in accordance with paragraph 1(a) to (f) or paragraph 7 or 7A, £10 or the whole payment if it is less than £10.

(4) For the purposes of this paragraph –

“ordinary clothing and footwear” means clothing or footwear for normal daily use, but does not include school uniforms, or clothing and footwear used solely for sporting activities;

“rent or rates” means eligible rent or rates for the purposes of the Housing Benefit (State Pension Credit) Regulations less any deductions in respect of non-dependants which fall to be made under regulation 53 (non-dependant deductions) of those Regulations.

12

Any increase in pension or allowance under Part 2 or 3 of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 2006 paid in respect of a dependent other than the pensioner’s ... partner.

13

Any payment ordered by a court to be made to the claimant or the claimant’s partner in consequence of any accident, injury or disease suffered by the person to whom the payments are made.

14

Periodic payments made to the claimant or the claimant’s partner under an agreement entered into in settlement of a claim made by that person for an injury suffered by him.

15

Any income which is payable outside the United Kingdom for such period during which there is a prohibition against the transfer to the United Kingdom of that income.

16

Any banking charges or commission payable in converting to sterling payments of income made in a currency other than sterling.

SCHEDULE 5 — INCOME FROM CAPITAL

PART I — CAPITAL DISREGARDED FOR THE PURPOSE OF CALCULATING INCOME

1

Any premises or land acquired for occupation by the claimant which he intends to occupy as his home within 26 weeks of the date of acquisition or such longer period as is reasonable in the circumstances to enable the claimant to obtain possession and commence occupation of the premises or land.

2

Any premises which the claimant intends to occupy as his home, and in respect of which he is taking steps to obtain possession and has sought legal advice, or has commenced legal proceedings, with a view to obtaining possession, for a period of 26 weeks from the date on which he first sought such advice or first commenced such proceedings whichever is the earlier, or such longer period as is reasonable in the circumstances to enable him to obtain possession and commence occupation of those premises or land.

3

Any premises which the claimant intends to occupy as his home to which essential repairs or alterations are required in order to render them fit for such occupation, for a period of 26 weeks from the date on which the claimant first takes steps to effect those repairs or alterations, or such longer period as is necessary to enable those repairs or alterations to be carried out.

4

Any premises occupied in whole or in part –

(a) by a person who is a close relative, grandparent, grandchild, uncle, aunt, nephew or niece of the claimant or of his partner as his home where that person is either aged 60 or over or incapacitated;

(b) by the former partner of the claimant as his home, but this provision shall not apply where the former partner is a person from whom the claimant is estranged or divorced or with whom he had formed a civil partnership that has been dissolved.

5

Any future interest in property of any kind, other than land or premises in respect of which the claimant has granted a subsisting lease or tenancy, including sub-leases or sub-tenancies.

6

(1) Where a claimant has ceased to occupy what was formerly the dwelling occupied as the home following his estrangement or divorce from , or dissolution of his civil partnership with, his former partner, that dwelling for a period of 26 weeks from the date on which he ceased to occupy that dwelling or, where the dwelling is occupied as the home by the former partner who is a lone parent, for so long as it is so occupied.

(2) In this paragraph “dwelling” means the dwelling occupied as the home formerly so occupied by the claimant.

7

Any premises or land where the claimant is taking reasonable steps to dispose of the whole of his interest in those premises or that land, for a period of 26 weeks from the date on which he first took such steps, or such longer period as is reasonable in the circumstances to enable him to dispose of those premises or that land.

8

All personal possessions.

9

The assets of any business owned in whole or in part by the claimant and for the purposes of which he is engaged as a self-employed earner or, if he has ceased to be engaged, for such period as may be reasonable in the circumstances to allow for disposal of those assets.

10

The surrender value of any policy of life insurance.

11

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