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The Housing Benefit Regulations (Northern Ireland) 2006

Type Ni-Statutory-Rule

Publication 2006-10-12

Last updated 2026-03-15

State In force

Jurisdiction Northern Ireland

Department Government Printer for Northern Ireland

Source legislation.gov.uk

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(zzg) a person who, as part of a safe and legal humanitarian immigration route, has leave to enter or remain in the United Kingdom in accordance with immigration rules made under section 3(2) of the Immigration Act 1971 or leave on a discretionary basis outside of rules;

(za) a qualified person for the purposes of regulation 6 of the Immigration (European Economic Area) Regulations 2016 as a worker or a self-employed person;

(zb) a family member of a person referred to in sub-paragraph (za) ...;

(zc) a person who has a right to reside permanently in the United Kingdom by virtue of regulation 15(1)(c), (d) or (e) of those Regulations;

(zd) a family member of a relevant person of Northern Ireland with a right to reside which falls within paragraph (4A)(a), provided that the relevant person of Northern Ireland falls within sub-paragraph (za), or would do so but for the fact that they are not an EEA national

(ze) a frontier worker within the meaning of regulation 3 of the Citizens' Rights (Frontier Workers) (EU Exit) Regulations 2020;

(zf) a family member of a person referred to in sub-paragraph (ze), who has been granted limited leave to enter, or remain in, the United Kingdom by virtue of Appendix EU to the immigration rules made under section 3(2) of the Immigration Act 1971;

(g) a refugee;

(h) a person who has been granted leave or who is deemed to have been granted leave outside the rules made under section 3(2) of the Immigration Act 1971 ...;

(i) a person who has humanitarian protection granted under those rules;

(j) a person who is not a person subject to immigration control within the meaning of section 115(9) of the Immigration and Asylum Act and who is in the United Kingdom as a result of his deportation, expulsion or other removal by compulsion of law from another country to the United Kingdom; ...

(k) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(kk) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(l) in receipt of income support, an income-related employment and support allowance or universal credit; or

(m) in receipt of an income-based jobseeker’s allowance and has a right to reside other than a right to reside falling within paragraph (4).

(5A) Paragraph (5)(zzf) does not apply after the expiry of 6 months beginning on the day on which the public information is issued, or the evacuation is started.

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

(7) In this regulation—

“EEA national” has the same meaning given in regulation 2(1) of the Immigration (European Economic Area) Regulations 2016;

“family member” has the same meaning given in regulation 7(1)(a), (b) or (c) of the Immigration (European Economic Area) Regulations 2016, except that regulation 7(4) of those Regulations does not apply for the purposes of paragraph (4B) and (5)(zd) of this regulation;

“refugee” means a person recorded by the Secretary of State as a refugee within the definition in Article 1 of the Convention relating to the Status of Refugees;

“relevant person of Northern Ireland” has the meaning given in Annex 1 of Appendix EU to the immigration rules made under section 3(2) of the Immigration Act 1971.

(8) In this regulation references to the Immigration (European Economic Area) Regulations 2016 are to be read with Schedule 4 to the Immigration and Social Security Co-ordination (EU Withdrawal) Act 2020 (Consequential, Saving, Transitional and Transitory Provisions) Regulations 2020.

PART III — Payments in respect of a dwelling

Eligible housing costs

11

(1) Subject to the following provisions of this regulation, housing benefit shall be payable in respect of the payments specified in regulations 12(1) and 13(1) and a claimant’s maximum housing benefit shall be calculated under Part VIII by reference to—

(a) in the case of a rate rebate, the amount of his eligible rates determined in accordance with regulation 12(3); and

(b) in the case of a rent rebate or allowance, the amount of his eligible rent determined in accordance with—

(i) regulation 13A;

(ia) regulations 13AA, A14 and B14;

(ii) regulations 13B, 14, 14A and 14B;

(iii) regulations 13C, 14C and 14D, or

(iv) regulations 13 (rent) and 14 (restrictions on unreasonable payments) as set out in paragraph 5 of Schedule 3 to the Consequential Provisions Regulations,

whichever is applicable in his case.

(2) Subject to paragraph (4), housing benefit shall not be payable in respect of payments made by a person on income support , an income-based jobseeker’s allowance or an income-related employment and support allowance whose applicable amount for that benefit includes an amount in respect of those payments.

(3) Where any payment for which a person is liable in respect of a dwelling and which is specified in regulation 13(1), is increased on account of—

(a) outstanding arrears of any payment or charge; or

(b) any other unpaid payment or charge,

to which paragraphs (1) or (2) of that regulation or paragraph (2) of regulation 13A or Schedule 1 refer and which is or was formerly owed by him in respect of that or another dwelling, a rent rebate or, as the case may be, a rent allowance shall not be payable in respect of that increase.

(4) Where a person who has been awarded housing benefit in respect of a dwelling becomes entitled to income support , an income-based jobseeker’s allowance or an income-related employment and support allowance and his applicable amount for the purpose of calculating his entitlement to that benefit includes an amount in respect of a payment made by him in respect of that dwelling, the payments made by him in respect of that dwelling shall continue to be eligible for housing benefit for a period of 4 benefit weeks beginning with the benefit week after the date on which he becomes entitled to income support , an income-based jobseeker’s allowance or an income-related employment and support allowance.

Rates

12

(1) The payments in respect of which housing benefit is payable in the form of a rate rebate are the payments by way of rates in respect of the dwelling which a person occupies as his home.

(2) Where the person is liable to make payments only of such a kind as are specified in regulation 13(1) in respect of the dwelling which he occupies as his home and which comprises part only of a rateable unit, the proportion of those payments equal to the proportion of the rates payable in respect of the rateable unit as a whole which appears to the appropriate authority to be referable to his dwelling shall be treated as payments by way of rates for the purposes of paragraph (1).

(3) Subject to any apportionment in accordance with paragraphs (4) and (5) the amount of a person’s eligible rates shall be the amount of the payments by way of rates referred to in paragraph (1), or, as the case may be, (2).

(4) Where a rateable unit consists partly of residential accommodation and partly of other accommodation, only such proportion of the rates payable for that rateable unit as is referable to the residential accommodation shall count as eligible rates for the purpose of these Regulations.

(5) Subject to paragraph (6), where more than one person is liable to make payments by way of rates in respect of a dwelling, the rates payable in respect of that dwelling shall be apportioned for the purposes of calculating the eligible rates for each such person having regard to all the circumstances, in particular the number of such persons and the proportion of rates paid by each such person.

(6) Paragraph (5) shall not apply to any person so residing with the claimant who is a student to whom regulation 53(1) applies.

Rent

13

(1) Subject to the following provisions of this regulation, the payments in respect of which housing benefit is payable in the form of a rent rebate or allowance are the following periodical payments which a person is liable to make in respect of the dwelling which he occupies as his home—

(a) payments of, or by way of, rent;

(b) payments in respect of a licence or permission to occupy the dwelling;

(d) payments in respect of, or in consequence of, use and occupation of the dwelling;

(e) payments of, or by way of, service charges payment of which is a condition on which the right to occupy the dwelling depends;

(f) mooring charges payable for a houseboat;

(g) where the home is a caravan or a mobile home, payments in respect of the site on which it stands; and

(h) payments under a rental purchase agreement, that is to say an agreement for the purchase of a dwelling which is a building or part of one under which the whole or part of the purchase price is to be paid in more than one instalment and the completion of the purchase is deferred until the whole or a specified part of the purchase price has been paid.

(2) A rent rebate or, as the case may be, a rent allowance shall not be payable in respect of the following periodical payments—

(a) payments by an owner except under an equity-sharing lease in respect of payments specified in paragraph (1)(a) and (e);

(b) payments under a hire purchase, credit sale or conditional sale agreement except to the extent the conditional sale agreement is in respect of land; ...

(c) payments by a person who is eligible for a rent rebate or allowance under a scheme operated by the Ministry of Defence; and

(d) payments by a person in respect of a dwelling where his partner is an owner of that dwelling.

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

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

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

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

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

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) In this regulation , regulation 13A and Schedule 1—

“service charges” means periodical payments for services, whether or not under the same agreement as that under which the dwelling is occupied, or whether or not such a charge is specified as separate from or separately identified within other payments made by the occupier in respect of the dwelling;

“services” means services performed or facilities (including the use of furniture) provided for, or rights made available to, the occupier of a dwelling.

Maximum rent

14

(1) Where the Executive has made a decision in accordance with Schedule 2, the maximum rent shall be determined in accordance with paragraphs (2) to (8).

(2) In a case where a claim-related rent has been decided, but a local reference rent or a single room rent is not required, the maximum rent shall be that claim-related rent.

(3) Subject to the limit specified in paragraph (4), in a case where both a local reference rent and a claim-related rent has been decided, the maximum rent shall be the local reference rent.

(4) In a case to which paragraph 8 of Schedule 3 to the Consequential Provisions Regulations applies, where a local reference rent has been decided, the maximum rent shall not exceed twice that local reference rent.

(5) Subject to paragraph (6), in the case of a young individual—

(a) except where sub-paragraph (b) applies, where the Executive has decided a single room rent, the maximum rent shall not exceed that single room rent;

(b) where—

(i) the Executive has decided a single room rent and a claim-related rent;

(ii) the claim-related rent includes payment in respect of meals, and

(iii) the single room rent is greater than the claim-related rent less an amount in respect of meals determined in accordance with paragraph 2 of Schedule 1,

the maximum rent shall not exceed the claim-related rent less that amount in respect of meals.

(6) Paragraph (5) shall not apply in the case of a claimant—

(a) to whom paragraph 4 of Schedule 3 to the Consequential Provisions Regulations (saving provision) applies;

(b) to whom paragraph 14 of Schedule 4 applies; or

(7) Where the maximum rent is derived from—

(a) a claim-related rent and an ineligible amount in respect of meals has been included in that claim-related rent; or

(b) a local reference rent and an ineligible amount in respect of meals has been included in that local reference rent,

in determining the maximum rent the Executive shall deduct an amount determined in accordance with paragraph 2 of Schedule 1 in respect of meals.

(8) This regulation is subject to regulations 14A and 14B.

(9) In this regulation—

“claim-related rent” means the rent decided by the Executive under paragraph 6 of Schedule 2;

“local reference rent” means the rent decided by the Executive under paragraph 4 of Schedule 2.

Decisions

15

(1) Subject to paragraph (3), in respect of a claim for rent allowance where a maximum rent (LHA) does not fall to be determined under regulation 14C the Executive shall—

(a) make the decision in accordance with Part I of Schedule 2; and

(b) comply with Part II of Schedule 2 when making the decision.

(2) The Executive, on the first working day of each month, shall—

(a) make a decision in accordance with Part III of Schedule 2; and

(b) comply with paragraph 8(2) of Schedule 2 when making the decision.

(3) No decision shall be made—

(a) under paragraph 3, 4 or 5 of Schedule 2 if the tenancy is of residential accommodation, within the meaning of regulation 9(4), or in a hostel;

(b) for a tenancy under Schedule 3; or

(c) under paragraph 5 of Schedule 2 unless the Executive is satisfied that the claimant is, or may be, a young individual.

(4) This regulation shall apply as specified in Part V of Schedule 2 in relation to—

(a) mooring charges payable for a houseboat;

(b) payments in respect of the site on which a caravan or a mobile home stands; or

Pre-tenancy decisions

16

(1) Except in the case where any liability to make payments in respect of a dwelling would be to the Executive, a decision shall be made by the Executive of the amount of rent which may be used in the calculation of housing benefit, where a request is received from a person (“the prospective occupier”), on a properly completed form approved for the purpose by the Executive, which includes the specified matters and any of the circumstances specified in regulation 14C(5)(a) to (d) apply.

(2) A decision by the Executive shall not be required under paragraph (1) where a request relates to—

(a) a dwelling in a hostel if, during the period of 12 months which ends on the day on which that request is received by the Executive—

(i) the Executive has already made a decision in accordance with Schedule 2 in respect of a dwelling in that hostel which is a similar dwelling to the dwelling to which the request relates, and

(ii) there has been no change relating to a rent allowance that has affected the dwelling in respect of which that decision was made; or

(b) an “excluded tenancy” within the meaning of Schedule 3.

(3) Where the Executive receives a request pursuant to paragraph (1) it shall make a decision within 7 days of receipt of that request except it is a case where, by reason of paragraph (2), a decision in accordance with Schedule 2 is not required, where the Executive shall—

(a) return it to the prospective occupier, indicating why no such application is required; and

(b) where it is not required by reason of either paragraph (2)(a) of this regulation or paragraph 2 of Schedule 3, also send him a copy of the previous decision within 4 days of the receipt of that request.

(4) For the purpose of calculating the period of days mentioned in paragraph (3)(b), no regard shall be had to a day in which the offices of the Executive are closed for the purposes of receiving or deciding claims.

(5) In this regulation—

“change relating to a rent allowance” means a change or increase to which paragraph 2(3)(a), (b), (c) , (d) or (f) of Schedule 3 applies;

“prospective occupier” shall include a person currently in receipt of housing benefit in respect of a dwelling which he occupies as his home and who is contemplating entering into a new agreement to occupy that dwelling, but not in a case where his current agreement commenced less than 11 months before such a request;

“specified matters” means—the signature of the prospective occupier;the signature of the person to whom the prospective occupier would incur liability to make such payments;a statement that the person in paragraph (b) agrees to the application being made for that decision; andan indication that the prospective occupier is contemplating occupying the dwelling as his home and that if he does so, he is likely to claim housing benefit.

PART IV — Membership of a family

Persons of prescribed description

17

(1) Subject to paragraph (2), a person of a prescribed description for the purposes of section 133(1) of the Act as it applies to housing benefit (definition of family[^f00062]) is a person who falls within the definition of qualifying young person in section 138 of the Act[^f00063] (child and qualifying young person), and in these Regulations such a person is referred to as a “young person”.

(2) Paragraph (1) shall not apply to a person who is—

(a) on income support , an income-based jobseeker’s allowance or an income-related employment and support allowance; ...

(b) a person to whom section 6 of the Children (Leaving Care) Act (Northern Ireland) 2002[^f00064] (exclusion from benefits) applies or

(3) A person of a prescribed description for the purposes of section 133(1) of the Act as it applies to housing benefit (definition of family) includes a child or young person in respect of whom section 141A of that Act[^f00065] applies for the purposes of entitlement to child benefit but only for the period prescribed under section 141A(1) of that Act.

Circumstances in which a person is to be treated as responsible or not responsible for another

18

(1) Subject to the following provisions of this regulation, a person shall be treated as responsible for a child or young person who is normally living with him and this includes a child or young person to whom regulation 17(3) applies.

(2) Where a child or young person spends equal amounts of time in different households, or where there is a question as to which household he is living in, the child or young person shall be treated for the purposes of paragraph (1) as normally living with—

(a) the person who is receiving child benefit in respect of him; or

(b) if there is no such person—

(i) where only one claim for child benefit has been made in respect of him, the person who made that claim, or

(ii) in any other case the person who has the primary responsibility for him.

(3) For the purposes of these Regulations a child or young person shall be the responsibility of only one person in any benefit week and any person other than the one treated as responsible for the child or young person under this regulation shall be treated as not so responsible.

Circumstances in which a person is to be treated as being or not being a member of the household

19

(1) Subject to paragraphs (2) to (4), the claimant and any partner and, where the claimant or his partner is treated as responsible by virtue of regulation 18 for a child or young person, that child or young person and any child of that child or young person, shall be treated as members of the same household notwithstanding that any of them is temporarily living away from the other members of his family.

(2) Paragraph (1) shall not apply to a person who is living away from the other members of his family where—

(a) that person does not intend to resume living with the other members of his family; or

(b) his absence from the other members of his family is likely to exceed 52 weeks, unless there are exceptional circumstances (for example where the person is in hospital or otherwise has no control over the length of his absence) and the absence is unlikely to be substantially more than 52 weeks.

(3) A child or young person shall not be treated as a member of the claimant’s household , nor as occupying the claimant’s dwelling, where he is—

(a) placed with the claimant or his partner by an authority, as defined in Article 2 of the Children Order, under Article 27(2)(a) of that Order (provision of accommodation and maintenance by an authority for children whom it is looking after) or by a voluntary organisation under Article 75(1)(a) of that Order (provision of accommodation by voluntary organisation);

(b) placed with the claimant or his partner prior to adoption; or

(c) placed for adoption with the claimant or his partner pursuant to a decision under the Adoption Agencies Regulations (Northern Ireland) 1989[^f00066].

(4) Subject to paragraph (5), paragraph (1) shall not apply to a child or young person who is not living with the claimant and he—

(a) is being looked after by an authority, as defined in Article 2 of the Children Order, under a relevant enactment;

(b) has been placed with a person other than the claimant prior to adoption; or

(5) An authority shall treat a child or young person to whom paragraph (4)(a) applies, as being a member of the claimant’s household in any benefit week where—

(a) that child or young person lives with the claimant for part or all of that benefit week; and

(b) the authority considers that it is reasonable to do so taking into account the nature and frequency of that child’s or young person’s visits.

(6) In this regulation “relevant enactment” means the Army Act 1955[^f00067], the Air Force Act 1955[^f00068], the Naval Discipline Act 1957[^f00069],the Children and Young Persons Act (Northern Ireland) 1968[^f00070], the Health and Personal Social Services Order, the Family Law Reform (Northern Ireland) Order 1977[^f00071], the Matrimonial Causes (Northern Ireland) Order 1978[^f00072], the Domestic Proceedings (Northern Ireland) Order 1980[^f00073], the Adoption (Northern Ireland) Order 1987[^f00074] and the Children Order.

PART V — Applicable amounts

Applicable amounts

20

(1) Subject to regulations 21, 78 and 79 and Schedule A1[^f00075] (treatment of claims for housing benefit by refugees), a claimant’s weekly applicable amount shall be the aggregate of such of the following amounts as may apply in his case—

(a) an amount in respect of himself or, if he is a member of a couple, an amount in respect of both of them, determined in accordance with paragraph 1(1), (2) or (3), as the case may be, of Schedule 4;

(b) an amount determined in accordance with paragraph 2 of Schedule 4 in respect of up to two individuals who are either children or young persons and who are members of his family;

(d) the amount of any premiums which may be applicable to him, determined in accordance with Parts III and IV of Schedule 4.

(e) the amount of the support component which may be applicable to him in accordance with Part V of Schedule 4 (the component);

(f) the amount of any transitional addition which may be applicable to him in accordance with Parts VII and VIII of Schedule 4.

(2) For the purposes of paragraph (1)(b), as it applies apart from paragraph (4), where the family includes more than two individuals who are either children or young persons, and, under paragraph 2 of Schedule 4, a different amount applies to different individuals, the two amounts to be included in the applicable amount shall be those that result in the greatest possible total amount.

(3) Paragraph (4) applies where—

(a) (whether or not as part of a tax credit couple) the claimant has an award of child tax credit in respect of a child or young person who is a member of his family, and whether or not any amount is payable by way of such credit; and

(b) the total amount to be included in the applicable amount under paragraph (1)(b) as substituted by paragraph (4) would be higher than the total amount that would be included under paragraph (1)(b) apart from paragraph (4).

(4) Where this paragraph applies, for paragraph (1)(b) substitute—

(b) an amount determined in accordance with paragraph 2 of Schedule 4 in respect of any child or young person who is a member of his family and in respect of whom the individual element of child tax credit has been included in the determination of the maximum rate of that credit;

(5) In this regulation “tax credit couple” means a couple as defined in section 3(5A) of the Tax Credits Act 2002.

Polygamous marriages

21

(1) Subject to regulations 78 and 79 and Schedule A1, where a claimant is a member of a polygamous marriage, his weekly applicable amount shall be the aggregate of such of the following amounts as may apply in his case—

(a) the highest amount applicable to him and one of his partners determined in accordance with paragraph 1(3) of Schedule 4 as if he and that partner were a couple;

(b) an amount equal to the difference between the amounts specified in sub-paragraphs (3)(b) and (1)(b) of paragraph 1 of Schedule 4 in respect of each of his other partners;

(c) an amount determined in accordance with paragraph 2 of Schedule 4 in respect of up to two individuals who are either children or young persons and for whom he or a partner of his is responsible and who are members of the same household;

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) the amount of any premiums which may be applicable to him determined in accordance with Parts III and IV of Schedule 4.

(f) the amount of the support component which may be applicable to him in accordance with Part V of Schedule 4 (the component);

(g) the amount of any transitional addition which may be applicable to him in accordance with Parts VII and VIII of Schedule 4.

(2) For the purposes of paragraph (1)(c), as it applies apart from paragraph (4), where the claimant and any partner are together responsible for more than two individuals who are either children or young persons and who are members of the same household, and, under paragraph 2 of Schedule 4, a different amount applies to different individuals, the two amounts to be included in the applicable amount shall be those that result in the greatest possible total amount.

(3) Paragraph (4) applies where—

(a) (as part of a polygamous unit) the claimant has an award of child tax credit in respect of any child or young person for whom he or a partner of his is responsible and who is a member of the same household, and whether or not any amount is payable by way of such credit; and

(b) the total amount to be included in the applicable amount under paragraph (1)(c) as substituted by paragraph (4) would be higher than the total amount that would be included under paragraph (1)(c) apart from paragraph (4).

(4) Where this paragraph applies, for paragraph (1)(c) substitute—

(c) an amount determined in accordance with paragraph 2 of Schedule 4 in respect of any child or young person for whom he or a partner of his is responsible and who is a member of the same household and in respect of whom the individual element of child tax credit has been included in the determination of the maximum rate of that credit;

(5) In this regulation “polygamous unit” has the same meaning as in regulation 2 of the Tax Credits (Polygamous Marriages) Regulations 2003.

PART VI — Income and capital

SECTION 1 — General

Calculation of income and capital of members of claimant’s family and of a polygamous marriage

22

(1) The income and capital of a claimant’s partner which by virtue of section 132(1) of the Act is to be treated as income and capital of the claimant, shall be calculated or estimated in accordance with the following provisions of this Part in like manner as for the claimant; and any reference to the “claimant” shall be construed for the purposes of this Part as if it were a reference to his partner.

(2) Where a claimant or the partner of a claimant is married polygamously to 2 or more members of his household—

(a) the claimant shall be treated as possessing capital and income belonging to each such member; and

(b) the income and capital of that member shall be calculated in accordance with the following provisions of this Part in like manner as for the claimant.

(3) The income or capital of a child or young person shall not be treated as the income and capital of the claimant.

Circumstances in which income and capital of non-dependant is to be treated as claimant’s

23

(1) Where it appears to the relevant authority that a non-dependant and the claimant have entered into arrangements in order to take advantage of the housing benefit scheme and the non-dependant has more capital and income than the claimant, that authority shall, except where the claimant is on income support , an income-based jobseeker’s allowance or an income-related employment and support allowance, treat the claimant as possessing capital and income belonging to that non-dependant and, in such a case, shall disregard any capital and income which the claimant does possess.

(2) Where a claimant is treated as possessing capital and income belonging to a non-dependant under paragraph (1) the capital and income of that non-dependant shall be calculated in accordance with the following provisions of this Part in like manner as for the claimant and any reference to the “claimant” shall be construed for the purposes of this Part as if it were a reference to that non-dependant.

SECTION 2 — Income

Calculation of income on a weekly basis

24

(1) Subject to regulations 31, 78 and 79 for the purposes of section 129(1)(c) of the Act (conditions of entitlement to housing benefit) the income of a claimant shall be calculated on a weekly basis—

(a) by estimating the amount which is likely to be his average weekly income in accordance with this Section and Sections 3 to 5 of this Part and Sections 1 and 3 of Part VII;

(b) by adding to that amount the weekly income calculated under regulation 49; and

(c) by then deducting any relevant child care charges to which regulation 25 applies from any earnings which form part of the average weekly income or, in a case where the conditions in paragraph (2) are met, from those earnings plus whichever credit specified in sub-paragraph (b) of that paragraph is appropriate, up to a maximum deduction in respect of the claimant’s family of whichever of the sums specified in paragraph (3) applies in his case.

(2) The conditions of this paragraph are that—

(a) the claimant’s earnings which form part of his average weekly income are less than the lower of either his relevant child care charges or whichever of the deductions specified in paragraph (3) otherwise applies in his case; and

(b) that claimant or, if he is a member of a couple either the claimant or his partner, is in receipt of either working tax credit or child tax credit.

(3) The maximum deduction to which paragraph (1)(c) refers shall be—

(a) where the claimant’s family includes only one child in respect of whom relevant child care charges are paid, £175.00 per week;

(b) where the claimant’s family includes more than one child in respect of whom relevant child care charges are paid, £300 per week.

(4) For the purposes of paragraph (1) “income” includes capital treated as income under regulation 38 and income which a claimant is treated as possessing under regulation 39.

Treatment of child care charges

25

(1) This regulation applies where a claimant is incurring relevant child care charges and—

(a) is a lone parent and is engaged in remunerative work;

(b) is a member of a couple both of whom are engaged in remunerative work; or

(i) is incapacitated;

(ii) is an in-patient in hospital, or

(iii) is in prison (whether serving a custodial sentence or remanded in custody awaiting trial or sentence).

(2) For the purposes of paragraph (1) and subject to paragraph (4), a person to whom paragraph (3) applies shall be treated as engaged in remunerative work for a period not exceeding 28 weeks during which he—

(a) is paid statutory sick pay;

(b) is paid short-term incapacity benefit at the lower rate under sections 30A to 30E of the Act[^f00076];

(ba) is paid an employment and support allowance;

(c) is paid income support on the grounds of incapacity for work under regulation 4ZA of, and paragraph 7 or 14 of Schedule 1B to, the Income Support Regulations[^f00077]; or

(d) is credited with earnings on the grounds of incapacity for work or limited capability for work under regulation 8B of the Social Security (Credits) Regulations (Northern Ireland) 1975[^f00078].

(3) This paragraph applies to a person who was engaged in remunerative work immediately before—

(a) the first day of the period in respect of which he was first paid statutory sick pay, short-term incapacity benefit , an employment and support allowance or income support on the grounds of incapacity for work; or

(b) the first day of the period in respect of which earnings are credited,

as the case may be.

(4) In a case to which paragraph (2)(c) or (d) applies, the period of 28 weeks begins on the day on which the person is first paid income support or on the first day of the period in respect of which earnings are credited, as the case may be.

(5) Relevant child care charges are those charges for care to which paragraphs (6) and (7) apply, and shall be calculated on a weekly basis in accordance with paragraph (10).

(6) The charges are paid by the claimant for care which is provided—

(a) in the case of any child of the claimant’s family who is not disabled, in respect of the period beginning on that child’s date of birth and ending on the day preceding the first Monday in September following that child’s fifteenth birthday; or

(b) in the case of any child of the claimant’s family who is disabled, in respect of the period beginning on that person’s date of birth and ending on the day preceding the first Monday in September following that person’s sixteenth birthday.

(7) The charges are paid for care which is provided by one or more of the care providers listed in paragraph (8) and are not paid—

(a) in respect of the child’s compulsory education;

(b) by a claimant to a partner or by a partner to a claimant in respect of any child for whom either or any of them is responsible in accordance with regulation 18; or

(8) The care to which paragraph (7) refers may be provided—

(a) out of school hours, by a school on school premises or by an education and library board or an HSS trust—

(i) for children who are not disabled in respect of the period beginning on their twelfth birthday and ending on the day preceding the first Monday in September following their fifteenth birthday, or

(ii) for children who are disabled in respect of the period beginning on their twelfth birthday and ending on the day preceding the first Monday in September following their sixteenth birthday;

(b) by a child care provider approved in accordance with the Tax Credit (New Category of Child Care Provider) Regulations 1999[^f00079]; ...

(d) by a foster parent under the Foster Placement (Children) Regulations (Northern Ireland) 1996 in relation to a child other than one whom the foster parent is fostering;

(e) by a domiciliary care worker under the Domiciliary Care Agencies Regulations (Northern Ireland) 2007; or

(f) by a person who is not a relative of the child wholly or mainly in the child’s home.

(9) In—

(a) paragraphs (6) and (8)(a), “the first Monday in September” means the Monday which first occurs in the month of September in any year; and

(b) paragraph (8)(a), “education and library board” means an education and library board established under Article 3 of the Education and Libraries (Northern Ireland) Order 1986[^f00080].

(10) Relevant child care charges shall be estimated over such period, not exceeding a year, as is appropriate in order that the average weekly charge may be estimated accurately having regard to information as to the amount of that charge provided by the child minder or person providing the care.

(11) For the purposes of paragraph (1)(c) the other member of a couple is incapacitated where—

(a) the claimant’s applicable amount includes a disability premium on account of the other member’s incapacity or the support component or the other member is a member of the work-related activity group on account of the other member having limited capability for work;

(b) the claimant’s applicable amount would include a disability premium ... on account of the other member’s incapacity but for that other member being treated as capable of work by virtue of a determination made in accordance with regulations made under section 167E of the Act[^f00081] (incapacity for work: disqualification, etc.);

(ba) the claimant’s applicable amount would include the support component or the other member would be a member of the work-related activity group on account of the other member having limited capability for work but for that other member being treated as not having limited capability for work by virtue of a determination made in accordance with the Employment and Support Allowance Regulations or the Employment and Support Allowance Regulations (Northern Ireland) 2016;

(c) the claimant (within the meaning of regulation 2(1)) is, or is treated as, incapable of work and has been so incapable, or has been so treated as incapable, of work in accordance with the provisions of, and regulations made under, Part XIIA of the Act (incapacity for work) for a continuous period of not less than 196 days; and for this purpose any 2 or more separate periods separated by a break of not more than 56 days shall be treated as one continuous period;

(ca) the claimant (within the meaning of regulation 2(1)) has, or is treated as having, limited capability for work and has had, or been treated as having, limited capability for work in accordance with the Employment and Support Allowance Regulations or the Employment and Support Allowance Regulations (Northern Ireland) 2016 for a continuous period of not less than 196 days; and for this purpose any two or more separate periods separated by a break of not more than 84 days must be treated as one continuous period;

(d) there is payable in respect of him one or more of the following payments, pensions or allowances—

(i) long-term incapacity benefit or short-term incapacity benefit at the higher rate under Schedule 4 to the Act[^f00082];

(ia) armed forces independence payment;

(ii) attendance allowance under section 64 of the Act[^f00083];

(iia) pension age disability payment;

(iii) severe disablement allowance under section 68 of the Act[^f00084];

(iv) disability living allowance;

(v) increase of disablement pension under section 104 of the Act;

(vi) a pension increase paid as part of a war disablement pension or under an industrial injuries scheme which is analogous to an allowance or increase of disablement pension under head (ii), (iv) or (v);

(vii) main phase employment and support allowance;

(viii) personal independence payment;

(viiia) adult disability payment;

(ix) child disability payment;

(ixa) Scottish adult disability living allowance;

(e) a pension , allowance or payment to which head (ii), (iv), (v), (vi) or (viii) of sub-paragraph (d) refers was payable on account of his incapacity but has ceased to be payable in consequence of his becoming a patient, which in this regulation shall mean a person (other than a person who is serving a sentence of imprisonment or detention in a young offenders centre or a juvenile justice centre) who is regarded as receiving free in-patient treatment within the meaning of regulation 2(4) and (5) of the Social Security (Hospital In-Patients) Regulations (Northern Ireland) 2005[^f00085];

(ea) a pension age disability payment was payable on account of his incapacity but has ceased to be payable in accordance with regulation 20 (effect of admission to hospital on ongoing entitlement to pension age disability payment) of the Disability Assistance for Older People (Scotland) Regulations 2024;

(eb) a Scottish adult disability living allowance was payable on account of his incapacity but has ceased to be payable in accordance with regulation 23 (effect of admission to hospital on ongoing entitlement to Scottish adult disability living allowance) of the Disability Assistance (Scottish Adult Disability Living Allowance) Regulations 2025;

(f) sub-paragraph (d) or (e) would apply to him if the legislative provisions referred to in those sub-paragraphs were provisions under any corresponding enactment having effect in Great Britain; or

(g) he has an invalid carriage or other vehicle provided to him by the Department of Health, Social Services and Public Safety[^f00086] under Article 30(1) of the Health and Personal Social Services Order or provided by the Secretary of State under section 5(2)(a) of, and Schedule 2 to, the National Health Service Act 1977[^f00087] or under section 46 of the National Health Service (Scotland) Act 1978[^f00088].

(12) For the purposes of paragraph (11), once paragraph (11)(c) applies to the claimant, if he then ceases, for a period of 56 days or less, to be incapable, or to be treated as incapable, of work, that paragraph shall, on his again becoming so incapable, or so treated as incapable, of work at the end of that period, immediately thereafter apply to him for so long as he remains incapable, or is treated as remaining incapable, of work.

(12A) For the purposes of paragraph (11), once paragraph (11)(ca) applies to the claimant, if he then ceases, for a period of 84 days or less, to have, or to be treated as having, limited capability for work, that paragraph is, on his again having, or being treated as having, limited capability for work at the end of that period, immediately thereafter to apply to him for so long as he has, or is treated as having, limited capability for work.

(13) For the purposes of paragraphs (6) and (8)(a), a person is disabled if he is a person—

(za) in respect of whom armed forces independence payment is payable;

(a) in respect of whom disability living allowance is payable, or has ceased to be payable solely because he is a patient;

(aa) in respect of whom child disability payment is payable;

(b) who is certified as severely sight impaired or blind by a consultant ophthalmologist; ...

(c) who ceased to be certified as severely sight impaired or blind within the period beginning 28 weeks before the first Monday in September following that person’s fifteenth birthday and ending on the day preceding the first Monday in September following that person’s sixteenth birthday; ...

(d) in respect of whom personal independence payment is payable, or has ceased to be payable solely by virtue of regulations made under Article 91(1) of the 2015 Order (hospital in-patients).

(e) in respect of whom adult disability payment is payable, or has ceased to be payable solely by virtue of regulation 28 (effect of admission to hospital on ongoing entitlement to Adult Disability Payment) of the Disability Assistance for Working Age People (Scotland) Regulations 2022

(14) For the purposes of—

(a) paragraph (1) a person on maternity leave, paternity leave , shared parental leave , parental bereavement leave or adoption leave shall be treated as if he is engaged in remunerative work for the period specified in sub-paragraph (b) (“the relevant period”) provided that—

(i) in the week before the period of maternity leave, paternity leave , shared parental leave , parental bereavement leave or adoption leave began he was in remunerative work;

(ii) the claimant is incurring relevant child care charges within the meaning of paragraph (5), and

(iii) he is entitled to statutory maternity pay under section 160 of the Act, ... statutory paternity pay by virtue of section 167ZA or 167ZB of the Act, ...... statutory adoption pay by virtue of section 167ZL of the Act[^f00090], maternity allowance under section 35 of the Act , statutory shared parental pay by virtue of section 167ZU or 167ZW of the Act , statutory parental bereavement pay by virtue of section 167ZZ9 of the Act or qualifying support;

(b) sub-paragraph (a) the relevant period shall begin on and include the day on which the person’s maternity leave, paternity leave , parental bereavement leave or adoption leave commences and shall end on—

(i) the date that leave ends;

(ii) if no child care element of working tax credit is in payment on the date that entitlement to maternity allowance, qualifying support, statutory maternity pay, statutory paternity pay, statutory adoption pay , statutory shared parental pay or statutory parental bereavement pay ends, the date that entitlement ends, or

(iii) if a child care element of working tax credit is in payment on the date that entitlement to maternity allowance, qualifying support, statutory maternity pay, statutory paternity pay, statutory adoption pay , statutory shared parental pay or statutory parental bereavement pay ends, the date that entitlement to that award of the child care element of working tax credit ends,

whichever shall occur first.

(15) In paragraph (14)—

“qualifying support” means income support to which that person is entitled by virtue of paragraph 14B of Schedule 1B to the Income Support Regulations[^f00091] (paternity leave);

“child care element” of working tax credit means the element of working tax credit prescribed under section 12 of the Tax Credits Act (child care element).

Average weekly earnings of employed earners

26

(1) Where a claimant’s income consists of earnings from employment as an employed earner his average weekly earnings shall be estimated by reference to his earnings from that employment—

(a) over a period immediately preceding the benefit week in which the claim is made or treated as made and being a period of—

(i) 5 weeks, if he is paid weekly, or

(ii) 2 months, if he is paid monthly; or

(b) whether or not sub-paragraph (a)(i) or (ii) applies, where a claimant’s earnings fluctuate, over such other period preceding the benefit week in which the claim is made or treated as made as may, in any particular case, enable his average weekly earnings to be estimated more accurately.

(2) Where the claimant has been in his employment for less than the period specified in paragraph (1)(a)(i) or (ii)—

(a) if he has received any earnings or expects to receive an amount of earnings for the period that he has been in that employment and those earnings are likely to represent his average weekly earnings from that employment his average weekly earnings shall be estimated by reference to those earnings;

(b) in any other case, the relevant authority shall require the claimant’s employer to furnish an estimate of the claimant’s likely weekly earnings over such period as the appropriate authority may require and the claimant’s average weekly earnings shall be estimated by reference to that estimate.

(3) Where the amount of a claimant’s earnings changes during an award the relevant authority shall estimate his average weekly earnings by reference to his likely earnings from the employment over such period as is appropriate in order that his average weekly earnings may be estimated accurately but the length of the period shall not in any case exceed 52 weeks.

(4) For the purposes of this regulation the claimant’s earnings shall be calculated in accordance with Section 3 of this Part.

Average weekly earnings of self-employed earners

27

(1) Where a claimant’s income consists of earnings from employment as a self-employed earner his average weekly earnings shall be estimated by reference to his earnings from that employment over such period as is appropriate in order that his average weekly earnings may be estimated accurately but the length of the period shall not in any case exceed a year.

(2) For the purposes of this regulation the claimant’s earnings shall be calculated in accordance with Section 4 of this Part.

Average weekly income other than earnings

28

(1) A claimant’s income which does not consist of earnings shall, except where paragraph (2) applies, be estimated over such period as is appropriate in order that his average weekly income may be estimated accurately but the length of the period shall not in any case exceed 52 weeks; and nothing in this paragraph shall authorise an authority to disregard any such income other than that specified in Schedule 6.

(2) The period over which any benefit under the benefit Acts is to be taken into account shall be the period in respect of which that benefit is payable.

(3) For the purposes of this regulation income other than earnings shall be calculated in accordance with Section 5 of this Part.

Calculation of average weekly income from tax credits

29

(1) This regulation applies where a claimant receives a tax credit.

(2) Where this regulation applies, the period over which a tax credit is to be taken into account shall be the period set out in paragraph (3).

(3) Where the instalment in respect of which payment of a tax credit is made is—

(a) a daily instalment, the period is one day, being the day in respect of which the instalment is paid;

(b) a weekly instalment, the period is 7 days, ending on the day on which the instalment is due to be paid;

(c) a 2 weekly instalment, the period is 14 days, commencing 6 days before the day on which the instalment is due to be paid;

(d) a 4 weekly instalment, the period is 28 days, ending on the day on which the instalment is due to be paid.

(4) For the purposes of this regulation “tax credit” means child tax credit or working tax credit.

Calculation of weekly income

30

(1) For the purposes of regulations 26 and 29, where the period in respect of which a payment is made—

(a) does not exceed a week, the weekly amount shall be the amount of that payment;

(b) exceeds a week, the weekly amount shall be determined—

(i) in a case where that period is a month, by multiplying the amount of the payment by 12 and dividing the product by 52;

(ii) in any other case, by dividing the amount of the payment by the number equal to the number of days in the period to which it relates and multiplying the quotient by 7.

(2) For the purposes of regulation 27 the weekly amount of earnings of a claimant shall be determined by dividing his earnings over the assessment period by the number equal to the number of days in that period and multiplying the quotient by 7.

Disregard of changes in tax, contributions etc.

31

In calculating the claimant’s income the appropriate authority may disregard any legislative change—

(a) in the basic or other rates of income tax;

(aa) in the Scottish basic or other rates of income tax;

(b) in the amount of any personal tax reliefs under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007;

(c) in the rates of national insurance contributions payable under the Act or in the lower earnings limit or upper earnings limit for Class 1 contributions under the Act, or the lower or upper limits applicable to Class 4 contributions under the Act ...;

(d) in the amount of tax payable as a result of an increase in the weekly rate of Category A, B, C or D retirement pension or any addition thereto or any graduated pension payable under the Act or a state pension under Part 1 of the Pensions Act (Northern Ireland) 2015;

(e) in the maximum rate of child tax credit or working tax credit,

for a period not exceeding 30 benefit weeks beginning with the benefit week immediately following the date from which the change is effective.

SECTION 3 — Employed earners

Earnings of employed earners

32

(1) Subject to paragraph (2), “earnings” means in the case of employment as an employed earner, any remuneration or profit derived from that employment and includes—

(a) any bonus or commission;

(b) any payment in lieu of remuneration except any periodic sum paid to a claimant on account of the termination of his employment by reason of redundancy;

(c) any payment in lieu of notice or any lump sum payment intended as compensation for the loss of employment but only in so far as it represents loss of income;

(d) any holiday pay except any payable more than 4 weeks after termination or interruption of the employment;

(e) any payment by way of a retainer;

(f) any payment made by the claimant’s employer in respect of expenses not wholly, exclusively and necessarily incurred in the performance of the duties of the employment, including any payment made by the claimant’s employer in respect of—

(i) travelling expenses incurred by the claimant between his home and place of employment;

(ii) expenses incurred by the claimant under arrangements made for the care of a member of his family owing to the claimant’s absence from home;

(g) any award of compensation made under Article 146(4) and 151(3)(a) of the Employment Rights Order[^f00092] (remedies for unfair dismissal);

(gg) any payment or remuneration made under Article 60, 66, 96, 100 or 102 of the Employment Rights (Northern Ireland) Order 1996 (right to guarantee payments, remuneration on suspension on medical or maternity grounds, complaints to industrial tribunals);

(h) any such sum as is referred to in section 112 of the Act[^f00093] (certain sums to be earnings for social security purposes);

(i) any statutory sick pay, statutory maternity pay, statutory paternity pay, statutory adoption pay, statutory shared parental pay , statutory parental bereavement or a corresponding payment under any statute of the Parliament of the United Kingdom extending solely to Great Britain;

(j) any payment made under the legislation of, or under any scheme operating in, the Republic of Ireland which is analogous to income to which sub-paragraphs (g) to (i) relate;

(k) any remuneration paid by or on behalf of an employer to the claimant who for the time being is on maternity leave, paternity leave or adoption leave , shared parental leave or parental bereavement leave or is absent from work because he is ill;

(l) the amount of any payment by way of a non-cash voucher which has been taken into account in the computation of a person’s earnings in accordance with Part V of Schedule 3 to the Social Security (Contributions) Regulations 2001[^f00094].

(2) Earnings shall not include—

(a) subject to paragraph (3), any payment in kind;

(b) any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment;

(d) any payment in respect of expenses arising out of the claimant participating as a service user.

(3) Paragraph (2)(a) shall not apply in respect of any non-cash voucher referred to in paragraph (1)(l).

Calculation of net earnings of employed earners

33

(1) For the purposes of regulation 26, the earnings of a claimant derived or likely to be derived from employment as an employed earner to be taken into account shall, subject to paragraph (2), be his net earnings.

(2) There shall be disregarded from a claimant’s net earnings, any sum, where applicable, specified in paragraphs 1 to 14 of Schedule 5.

(3) For the purposes of paragraph (1) net earnings shall, except where paragraph (6) applies, be calculated by taking into account the gross earnings of the claimant from that employment over the assessment period, less—

(a) any amount deducted from those earnings by way of—

(i) income tax;

(ii) primary Class 1 contributions under the Act;

(b) one half of any sum paid by the claimant by way of a contribution towards an occupational pension scheme;

(c) one half of the amount calculated in accordance with paragraph (5) in respect of any qualifying contribution payable by the claimant; and

(d) where those earnings include a payment which is payable under any statute of the Parliament of the United Kingdom extending solely to Great Britain and which corresponds to statutory sick pay, statutory maternity pay, statutory paternity pay, statutory adoption pay , statutory shared parental pay or statutory parental bereavement pay, any amount deducted from those earnings by way of any contributions which are payable under any statute of the Parliament of the United Kingdom extending solely to Great Britain and which correspond to primary Class 1 contributions under the Act.

(4) In this regulation “qualifying contribution” means any sum which is payable periodically as a contribution towards a personal pension scheme.

(5) The amount in respect of any qualifying contribution shall be calculated by multiplying the daily amount of the qualifying contribution by the number equal to the number of days in the assessment period; and for the purposes of this regulation the daily amount of the qualifying contribution shall be determined—

(a) where the qualifying contribution is payable monthly, by multiplying the amount of the qualifying contribution by 12 and dividing the product by 365;

(b) in any other case, by dividing the amount of the qualifying contribution by the number equal to the number of days in the period to which the qualifying contribution relates.

(6) Where the earnings of a claimant are estimated under regulation 26(2)(b), his net earnings shall be calculated by taking into account those earnings over the assessment period, less—

(a) an amount in respect of income tax equivalent to an amount calculated by applying to those earnings ... the basic rate , or in the case of a Scottish taxpayer, the Scottish basic rate, of tax applicable to the assessment period less only the personal reliefs to which the claimant is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 as are appropriate to his circumstances but, if the assessment period is less than a year, the earnings to which the basic rate , or the Scottish basic rate, of tax is to be applied and the amount of the personal reliefs deductible under this sub-paragraph shall be calculated on a pro-rata basis;

(b) an amount equivalent to the amount of the primary Class 1 contributions that would be payable by him under the Act in respect of those earnings if such contributions were payable; and

(c) one half of any sum which would be payable by the claimant by way of a contribution towards an occupational or personal pension scheme, if the earnings so estimated were actual earnings.

(7) Where the claimant is an employed earner in the Republic of Ireland the amounts to be deducted for income tax and primary Class 1 contributions under this regulation shall be such amounts as, in the opinion of the appropriate authority, would have been deducted had the claimant been employed in Northern Ireland.

SECTION 4 — Self-employed earners

Earnings of self-employed earners

34

(1) Subject to paragraph (2), “earnings”, in the case of employment as a self-employed earner, means the gross income of the employment ....

(2) “Earnings” shall not include any payment to which paragraph 27 or 28 of Schedule 6 refers nor shall it include any sports award.

(3) This paragraph applies to—

(a) royalties or other sums paid as a consideration for the use of, or the right to use, any copyright, design, patent or trade mark; or

(b) any payment in respect of any—

(i) book registered under the Public Lending Right Scheme 1982, or

(ii) work made under any international public lending right scheme that is analogous to the Public Lending Right Scheme 1982,

where the claimant is the first owner of the copyright, design, patent or trade mark, or an original contributor to the book or work concerned.

(4) Where the claimant’s earnings consist of any items to which paragraph (3) applies, those earnings shall be taken into account over a period equal to such number of weeks as is equal to the number obtained (and any fraction shall be treated as a corresponding fraction of a week) by dividing the earnings by the amount of housing benefit which would be payable had the payment not been made plus an amount equal to the total of the sums which would fall to be disregarded from the payment under Schedule 5 (sums to be disregarded in the calculation of earnings) as appropriate in the claimant’s case.

Calculation of net profit of self-employed earners

35

(1) For the purposes of regulation 27 the earnings of a claimant to be taken into account shall be—

(a) in the case of a self-employed earner who is engaged in employment on his own account, the net profit derived from that employment;

(b) in the case of a self-employed earner whose employment is carried on in partnership or is that of a share fisherman within the meaning of the Social Security (Mariners’ Benefits) Regulations (Northern Ireland) 1975[^f00098], his share of the net profit derived from that employment, less—

(i) an amount in respect of income tax and of national insurance contributions payable under the Act calculated in accordance with regulation 36, and

(ii) one half of the amount calculated in accordance with paragraph (11) in respect of any qualifying premium.

(2) There shall be disregarded from a claimant’s net profit, any sum, where applicable, specified in paragraphs 1 to 14 of Schedule 5.

(3) For the purposes of paragraph (1)(a) the net profit of the employment shall, except where paragraph (9) applies, be calculated by taking into account the earnings of the employment over the assessment period less—

(a) subject to paragraphs (5) to (7), any expenses wholly and exclusively incurred in that period for the purposes of that employment;

(b) an amount in respect of—

(i) income tax, and

(ii) national insurance contributions payable under the Act,

calculated in accordance with regulation 36; and

(4) For the purposes of paragraph (1)(b) the net profit of the employment shall be calculated by taking into account the earnings of the employment over the assessment period less, subject to paragraphs (5) to (7), any expenses wholly and exclusively incurred in that period for the purposes of the employment.

(5) Subject to paragraph (6), no deduction shall be made under paragraph (3)(a) or (4), in respect of—

(a) any capital expenditure;

(b) the depreciation of any capital asset;

(d) any loss incurred before the beginning of the assessment period;

(e) the repayment of capital on any loan taken out for the purposes of the employment;

(f) any expenses incurred in providing business entertainment; and

(g) any debts, except bad debts proved to be such, but this sub-paragraph shall not apply to any expenses incurred in the recovery of a debt.

(6) A deduction shall be made under paragraph (3)(a) or (4) in respect of the repayment of capital on any loan used for—

(a) the replacement in the course of business of equipment or machinery;

(b) the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair; and

(7) The relevant authority shall refuse to make a deduction in respect of any expenses under paragraph (3)(a) or (4) where it is not satisfied given the nature and the amount of the expense that it has been reasonably incurred.

(8) For the avoidance of doubt—

(a) a deduction shall not be made under paragraph (3)(a) or (4) in respect of any sum unless it has been expended for the purposes of the business;

(b) a deduction shall be made thereunder in respect of—

(i) the excess of any value added tax paid over value added tax received in the assessment period;

(ii) any income expended in the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair;

(iii) any payment of interest on a loan taken out for the purposes of the employment.

(9) Where a claimant is engaged in employment as a child minder the net profit of the employment shall be one third of the earnings of that employment, less—

(a) an amount in respect of—

(i) income tax, and

(ii) national insurance contributions payable under the Act,

calculated in accordance with regulation 36; and

(b) one half of the amount calculated in accordance with paragraph (11) in respect of any qualifying premium.

(10) For the avoidance of doubt where a claimant is engaged in employment as a self-employed earner and he is also engaged in one or more other employments as a self-employed or employed earner any loss incurred in any one of his employments shall not be offset against his earnings in any other of his employments.

(11) The amount in respect of any qualifying premium shall be calculated by multiplying the daily amount of the qualifying premium by the number equal to the number of days in the assessment period; and for the purposes of this regulation the daily amount of the qualifying premium shall be determined—

(a) where the qualifying premium is payable monthly, by multiplying the amount of the qualifying premium by 12 and dividing the product by 365;

(b) in any other case, by dividing the amount of the qualifying premium by the number equal to the number of days in the period to which the qualifying premium relates.

(12) Where the claimant is a self-employed earner in the Republic of Ireland the amounts to be deducted for income tax and social security contributions under this regulation shall be such amounts as, in the opinion of the appropriate authority, would have been deducted had the claimant been employed in Northern Ireland.

(13) In this regulation, “qualifying premium” means any premium which is payable periodically in respect of ... a personal pension scheme and is so payable on or after the date of claim.

Deduction of tax and contributions of self-employed earners

36

(1) The amount to be deducted in respect of income tax under regulation 35(1)(b)(i), (3)(b)(i) or (9)(a)(i) shall be calculated on the basis of the amount of chargeable income and as if that income were assessable to income tax at ... the basic rate , or in the case of a Scottish taxpayer, the Scottish basic rate, of tax applicable to the assessment period less only the personal reliefs to which the claimant is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 as are appropriate to his circumstances; but, if the assessment period is less than a year, the earnings to which the basic rate , or the Scottish basic rate, of tax is to be applied and the amount of the personal reliefs deductible under this paragraph shall be calculated on a pro-rata basis.

(2) The amount to be deducted in respect of national insurance contributions under regulation 35(1)(b)(i), (3)(b)(ii) or (9)(a)(ii) shall be the total of—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the amount of Class 4 contributions (if any) which would be payable under section 15 of the Act (Class 4 contributions recoverable under the Income Tax Acts) at the percentage rate applicable to the assessment period on so much of the chargeable income as exceeds the lower limit but does not exceed the upper limit of profits and gains applicable for the tax year applicable to the assessment period; but if the assessment period is less than a year, those limits shall be reduced pro rata.

(3) In this regulation “chargeable income” means—

(a) except where sub-paragraph (b) applies, the earnings derived from the employment less any expenses deducted under paragraph (3)(a) or, as the case may be, (4) of regulation 35;

(b) in the case of employment as a child minder, one third of the earnings of that employment.

SECTION 5 — Other income

Calculation of income other than earnings

37

(1) For the purposes of regulation 28, the income of a claimant which does not consist of earnings to be taken into account shall, subject to paragraphs (2) to (5), be his gross income and any capital treated as income under regulation 38.

(2) There shall be disregarded from the calculation of a claimant’s gross income under paragraph (1), any sum, where applicable, specified in Schedule 6.

(3) Where the payment of any benefit under the benefit Acts is subject to any deduction by way of recovery the amount to be taken into account under paragraph (1) shall be the gross amount payable.

(3A) Where the claimant or, where the claimant is a member of a couple, his partner is receiving a contributory employment and support allowance and that benefit has been reduced under regulation 63 of the Employment and Support Allowance Regulations or section 11J of the Welfare Reform Act the amount of that benefit to be taken into account is the amount as if it had not been reduced.

(4) Where an award of any working tax credit or child tax credit under the Tax Credits Act is subject to a deduction by way of recovery of an overpayment of working tax credit or child tax credit which arose in a previous tax year the amount to be taken into account under paragraph (1) shall be the amount of working tax credit or child tax credit awarded less the amount of that deduction.

(5) Paragraphs (6) and (6A) apply where—

(a) a relevant payment has been made to a person in an academic year; and

(b) that person abandons, or is dismissed from, his course of study before the payment to him of the final instalment of the relevant payment.

(6) Where a relevant payment is made quarterly, the amount of a relevant payment to be taken into account for the assessment period for the purposes of paragraph (1) in respect of a person to whom paragraph (5) applies, shall be calculated by applying the formula—

$$A−(BxC)D$where—Athe total amount of the relevant payment which that person would have received had he remained a student until the last day of the academic term in which he abandoned, or was dismissed from, his course, less any deduction under regulation 61(5);Bthe number of benefit weeks from the benefit week immediately following that which includes the first day of that academic year to the benefit week which includes the day on which the person abandoned, or was dismissed from, his course;Cthe weekly amount of the relevant payment, before the application of the £10 disregard, which would have been taken into account as income under regulation 61(2) had the person not abandoned, or been dismissed from, his course and, in the case of a person who was not entitled to housing benefit immediately before he abandoned, or was dismissed from, his course, had that person, at that time, been entitled to housing benefit;Dthe number of benefit weeks in the assessment period.$

(6A) Where a relevant payment is made by two or more instalments in a quarter, the amount of a relevant payment to be taken into account for the assessment period for the purposes of paragraph (1) in respect of a person to whom paragraph (5) applies, shall be calculated by applying the formula in paragraph (6) but as if—

A =	the total amount of the relevant payments which that person received, or would have received, from the first day of the academic year to the day the person abandoned the course, or was dismissed from it, less any deduction under regulation 61(5).

(7) In this regulation —

“academic year” and “student loan” shall have the same meanings as for the purposes of Part VII;

“assessment period” means— in a case where a relevant payment is made quarterly, the period beginning with the benefit week which includes the day on which the person abandoned, or was dismissed from, his course and ending with the benefit week which includes the last day of the last quarter for which an instalment of the relevant payment was payable to that person;in a case where the relevant payment is made by two or more instalments in a quarter, the period beginning with the benefit week which includes the day on which the person abandoned, or was dismissed from, his course and ending with the benefit week which includes—the day immediately before the day on which the next instalment of the relevant payment would have been due had the payments continued, orthe last day of the last quarter for which an instalment of the relevant payment was payable to that person,whichever of those dates is earlier;

“quarter” in relation to an assessment period means a period in that year beginning on—1st January and ending on 31st March;1st April and ending on 30th June;1st July and ending on 31st August; or1st September and ending on 31st December;

“relevant payment” means either a student loan or an amount intended for the maintenance of dependants referred to in regulation 56(7) or both.

(8) For the avoidance of doubt there shall be included as income to be taken into account under paragraph (1)—

(a) any payment to which regulation 32(2) applies; or

(b) in the case of a claimant who is receiving support under section 95 or 98 of the Immigration and Asylum Act including support provided by virtue of regulations made under Schedule 9 to that Act, the amount of such support provided in respect of essential living needs of the claimant and his dependants (if any) as is specified in regulations made under paragraph 3 of Schedule 8 to the Immigration and Asylum Act.

Capital treated as income

38

(1) Any capital payable by instalments which are outstanding at the date on which the claim is made or treated as made, or, at the date of any subsequent revision or supersession, shall, if the aggregate of the instalments outstanding and the amount of the claimant’s capital otherwise calculated in accordance with Section 6 of this Part exceeds £16,000, be treated as income.

(2) Any payment received under an annuity shall be treated as income.

(3) Any earnings to the extent that they are not a payment of income shall be treated as income.

(4) Where an agreement or court order provides that payments shall be made to the claimant in consequence of any personal injury to the claimant and that such payments are to be made, wholly or partly, by way of periodic payments, any such periodic payments received by the claimant (but not a payment which is treated as capital by virtue of this Part), shall be treated as income.

Notional income

39

(1) A claimant shall be treated as possessing income of which he has deprived himself for the purpose of securing entitlement to housing benefit or increasing the amount of that benefit.

(2) Except in the case of—

(a) a discretionary trust;

(b) a trust derived from a payment made in consequence of a personal injury;

(c) a personal pension scheme, occupational pension scheme... or a payment made by the Board of the Pension Protection Fund where the claimant has not attained the qualifying age for state pension credit;

(d) any sum to which paragraph 45(2)(a) of Schedule 7 applies which is administered in a way referred to in paragraph 45(1)(a);

(e) child tax credit; or

(f) working tax credit,

(g) any sum to which paragraph (12A) applies;

any income which would become available to the claimant upon application being made, but which has not been acquired by him, shall be treated as possessed by the claimant but only from the date on which it could be expected to be acquired were an application made.

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

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

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

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

(6) Any payment of income, other than a payment of income specified in paragraph (7) or (7A), made—

(a) to a third party in respect of a single claimant or a member of the family (but not a member of the third party’s family) shall, where that payment is a payment of an occupational pension, a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fund, be treated as possessed by that single claimant or, as the case may be, by that member;

(b) to a third party in respect of a single claimant or in respect of a member of the family (but not a member of the third party’s family) shall, where it is not a payment referred to in sub-paragraph (a), be treated as possessed by that single claimant or by that member to the extent that it is used for the food, household fuel or, subject to paragraph (14), rent or rates or both or ordinary clothing or footwear, of that single claimant or, as the case may be, of any member of that family or is used for any water charges for which that claimant or member is liable;

(c) to a single claimant or a member of the family in respect of a third party (but not in respect of another member of that family) shall be treated as possessed by that single claimant or, as the case may be, that member of the family to the extent that it is kept or used by him or used by or on behalf of any member of the family.

(7) Paragraph (6) shall not apply in respect of a payment of income made—

(a) under or by the Macfarlane Trust, the Macfarlane (Special Payments) Trust, the Macfarlane (Special Payments) (No. 2) Trust, the Fund, the Eileen Trust , MFET Limited , the Skipton Fund, the Caxton Foundation , the Infected Blood Payment Scheme for Northern Ireland, the Scottish Infected Blood Support Scheme, an approved blood scheme , the London Emergencies Trust, the We Love Manchester Emergency Fund , the National Emergencies Trust or the Independent Living Fund (2006);

(b) pursuant to section 19(1)(a) of the Coal Industry Act 1994[^f00101] (concessionary coal);

(i) in an employment programme specified in regulation 75(1)(a) of the Jobseeker’s Allowance Regulations[^f00102];

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) in a training scheme specified in regulation 75(1)(b)(ii) of those Regulations, or

(iv) in a qualifying course within the meaning specified in regulation 17A(7)[^f00103] of those Regulations;

(ca) in respect of a claimant's participation in a scheme prescribed in regulation 3 of the Jobseeker's Allowance (Schemes for Assisting Persons to Obtain Employment) Regulations (Northern Ireland) 2014;

(d) under an occupational pension scheme, in respect of a pension or other periodical payment made under a personal pension scheme or a payment made by the Board of the Pension Protection Fund where—

(i) a bankruptcy order has been made in respect of the person in respect of whom the payment has been made or, in Scotland, the estate of that person is subject to sequestration or a judicial factor has been appointed on that person’s estate under section 41 of the Solicitors (Scotland) Act 1980[^f00104];

(ii) the payment is made to the trustee in bankruptcy or any other person acting on behalf of the creditors, and

(iii) the person referred to in (i) and any member of his family does not possess, or is not treated as possessing, any other income apart from that payment.

(7A) Paragraph (6) shall not apply in respect of any of the following payments of income—

(a) a Grenfell Tower payment;

(b) a child abuse payment;

(d) a Post Office compensation payment;

(e) an LGBT Financial Recognition Scheme payment ;

(f) a miscarriage of justice compensation payment.

(8) Where a claimant is in receipt of any benefit (other than housing benefit) under the benefit Acts and the rate of that benefit is altered with effect from a date on or after 1st April in any year but not more than 14 days thereafter, the relevant authority shall treat the claimant as possessing such benefit at the altered rate—

(a) in a case in which the claimant’s weekly amount of eligible rent or, as the case may be, rates falls to be calculated in accordance with regulation 78(2)(b) or (c) or, as the case may be, (3)(b) or (c), from 1st April in that year;

(b) in any other case, from the first Monday in April in that year,

to the date on which the altered rate is to take effect.

(9) Subject to paragraph (10), where—

(a) a claimant performs a service for another person; and

(b) that person makes no payment of earnings or pays less than that paid for a comparable employment in the area,

the relevant authority shall treat the claimant as possessing such earnings (if any) as is reasonable for that employment unless the claimant satisfies the authority that the means of that person are insufficient for him to pay or to pay more for the service.

(10) Paragraph (9) shall not apply—

(a) to a claimant who is engaged by a charitable or voluntary organisation or who is a volunteer if the relevant authority is satisfied in any of those cases that it is reasonable for him to provide those services free of charge; ...

(b) in a case where the service is performed in connection with—

(i) the claimant’s participation in an employment or training programme in accordance with regulation 19(1)(p) of the Jobseeker’s Allowance Regulations, other than where the service is performed in connection with the claimant’s participation in the Preparation for Employment Programme specified in regulation 75(1)(a)(v) of those Regulations ..., or

(ii) the claimant’s or the claimant’s partner’s participation in an employment or training programme as defined in regulation 19(3) of those Regulations for which a training allowance is not payable or, where such an allowance is payable, it is payable for the sole purpose of reimbursement of travelling or meal expenses to the person participating in that programme ; or

(c) to a claimant who is participating in a work placement approved by the Department for Employment and Learning (or a person providing services to that Department) before the placement starts.

(10A) In paragraph (10)(c) “work placement” means practical work experience which is not undertaken in expectation of payment.

(11) Where a claimant is treated as possessing any income under any of paragraphs (1) to (8), the foregoing provisions of this Part shall apply for the purposes of calculating the amount of that income as if a payment had actually been made and as if it were actual income which he does possess.

(12) Where a claimant is treated as possessing any earnings under paragraph (9) the foregoing provisions of this Part shall apply for the purposes of calculating the amount of those earnings as if a payment had actually been made and as if they were actual earnings which he does possess except that regulation 33(3) shall not apply and his net earnings shall be calculated by taking into account those earnings which he is treated as possessing, less—

(a) an amount in respect of income tax equivalent to an amount calculated by applying to those earnings ... the basic rate , or in the case of a Scottish taxpayer, the Scottish basic rate, of tax applicable to the assessment period less only the personal reliefs to which the claimant is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 as are appropriate to his circumstances; but, if the assessment period is less than a year, the earnings to which the basic rate , or the Scottish basic rate, of tax is to be applied and the amount of the personal reliefs deductible under this sub-paragraph shall be calculated on a pro-rata basis;

(b) an amount equivalent to the amount of the primary Class 1 contributions that would be payable by him under the Act in respect of those earnings if such contributions were payable; and

(c) one half of any sum payable by the claimant by way of a contribution towards an occupational or personal pension scheme.

(12A) Paragraphs (1), (2), (6) and (9) shall not apply in respect of any amount of income other than earnings, or earnings of an employed earner, arising out of the claimant participating as a service user.

(13) Where the claimant is an employed earner in the Republic of Ireland the amounts to be deducted for income tax and primary Class 1 contributions under this regulation shall be such amounts as, in the opinion of the appropriate authority, would have been deducted had the claimant been employed in Northern Ireland.

(14) In paragraph (6) “rent or rates” means eligible rent or rates less any deductions in respect of non-dependants which fall to be made under regulation 72.

SECTION 6 — Capital

Capital limit

40

For the purposes of section 130(1) of the Act as it applies to housing benefit (no entitlement to benefit if capital exceeds prescribed amount), the prescribed amount is £16,000.

Calculation of capital

41

(1) For the purposes of Part VII of the Act (income-related benefits) as it applies to housing benefit, the capital of a claimant to be taken into account shall, subject to paragraph (2), be the whole of his capital calculated in accordance with this Part and any income treated as capital under regulation 43.

(2) There shall be disregarded from the calculation of a claimant’s capital under paragraph (1), any capital, where applicable, specified in Schedule 7.

Disregard of capital of child and young person

42

The capital of a child or young person who is a member of the claimant’s family shall not be treated as capital of the claimant.

Income treated as capital

43

(1) Any bounty derived from employment to which paragraph 8 of Schedule 5 applies and paid at intervals of at least one year shall be treated as capital.

(2) Any amount by way of a refund of income tax deducted from profits or emoluments chargeable to—

(a) income tax under Schedule D or E;

(b) income tax under the legislation of the Republic of Ireland which is analogous to income tax under Schedule D or E,

shall be treated as capital.

(3) Any holiday pay which is not earnings under regulation 32(1)(d) shall be treated as capital.

(4) Except any income derived from capital disregarded under paragraph 1, 2, 4, 8, 14, 26 to 29 or 45 of Schedule 7, any income derived from capital shall be treated as capital but only from the date it is normally due to be credited to the claimant’s account.

(5) In the case of employment as an employed earner, any advance of earnings or any loan made by the claimant’s employer shall be treated as capital.

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