The Child Support (Maintenance Assessments and Special Cases) Regulations 1992

• (c) before making an arrangement under sub-paragraph (b), the Secretary of State shall consider all of the circumstances of the case and in particular the interests of the child, the present arrangements for the day to day care of the child in question and any representations or proposals made by the persons who provide such care for that child.

Care provided in part by a local authority

25

• (1) Where the circumstances of a case are that a local authority and a person each provide day to day care for the same qualifying child, that case shall be treated as a special case for the purposes of the Act.

• (2) Subject to paragraph (3), in a case where this regulation applies—

• (a) child support maintenance shall be calculated in respect of that child as if this regulation did not apply;

• (b) the amount so calculated shall be divided by 7 so as to produce a daily amount;

• (c) in respect of each night for which day to day care for that child is provided by a person other than the local authority, the daily amount relating to that period shall be payable by the absent parent (or, as the case may be, by the person treated as an absent parent under regulation 20(2));

• (d) child support maintenance shall not be payable in respect of any night for which the local authority provides day to day care for that qualifying child.

• (3) In a case where more than one qualifying child is included in a child support maintenance assessment application and ad where this regulation applies to at least one of those children, child support maintenance shall be a calculated by applying the formula—

$$S×(A7×B)$where–S is the total amount of child support maintenance in respect of all qualifying children included in that maintenance assessment application, calculated as if this regulation did not apply;A is the aggregate of the number of nights of day to day care for all qualifying children included in that maintenance assessment application provided in each week by a person other than the local authority;B is the number of qualifying children in respect of whom the maintenance assessment application has been made.$

Cases where child support maintenance is not to be payable

26

• (1) Where the circumstances of a case are that—

• (a) but for this regulation the minimum amount prescribed in regulation 13(1) would apply; and

• (b) any of the following conditions are satisfied—

• (i) the income of the absent parent includes one or more of the payments or awards specified in Schedule 4 or would include such a payment but for a provision preventing the receipt of that payment by reason of it overlapping with some other benefit payment or would, in the case of the payments referred to in paragraph (a)(i) or (iv) of that Schedule, include such a payment if the relevant contribution conditions for entitlement had been satisfied;

• (ii) an amount to which regulation 11(1)(f) applies (protected income: income support family premium) is taken into account in calculating or estimating under paragraphs(1) to (5) of regulation 11, the protected income of the absent parent;

• (iii) the absent parent is a child within the meaning of section 55 of the Act;

• (iv) the absent parent is a prisoner; or

• (v) the absent parent is a person in respect of whom N (as calculated or estimated under regulation 7(1)) is less than the minimum amount prescribed by regulation 13(1),

the case shall be treated as a special case for the purposes of the Act.

• (2) For the purposes of this case—

• (a) the requirement in paragraph 7(2) of Schedule 1 to the Act (minimum amount of child support maintenance fixed by an assessment to be the prescribed minimum amount) shall not apply;

• (b) the amount of the child support maintenance to be fixed by the assessment shall be nil.

Child who is a boarder or an in-patient

27

• (1) Where the circumstances of a case are that—

• (a) a qualifying child is a boarder at a boarding school or is an in-patient in a hospital; and

• (b) by reason of those circumstances, the person who would otherwise provide day to day care is not doing so,

that case shall be treated as a special case for the purposes of the Act.

• (2) For the purposes of this case, section 3(3)(b) of the Act shall be modified so that for the reference to the person who usually provides day to day care for the child there shall be substituted a reference to the person who would usually be providing such care for that child but for the circumstances specified in paragraph (1).

Amount payable where absent parent is in receipt of income support or other prescribed benefit

28

• (1) Where the condition specified in section 43(1)(a) of the Act is satisfied in relation to an absent parent (assessable income to be nil where income support, income-based jobseeker’s allowance, income-related employment and support allowance under Part 1 of the Welfare Reform Act, or other prescribed benefit is paid), the prescribed conditions for the purposes of section 43(1)(b) of the Act are that—

• (a) the absent parent is aged 18 or over;

• (b) he does not satisfy the conditions in paragraph 3(1)(a) or (b) of the relevant Schedule (income support family premium) and does not have day to day care of any child (whether or not a relevant child); and

• (c) his income does not include one or more of the payments or awards specified in Schedule 4 (other than by reason of a provision preventing receipt of overlapping benefits or by reason of a failure to satisfy the relevant contribution conditions).

• (2) For the purposes of section 43(2)(a) of the Act, the prescribed amount shall be equal to the minimum amount prescribed in regulation 13(1) for the purposes of paragraph 7(1) of Schedule 1 to the Act.

• (3) Subject to paragraph (4), where—

• (a) an absent parent is liable under section 43 of the Act and this regulation to make payments in place of payments of child support maintenance with respect to two or more qualifying children in relation to whom there is more than one parent with care; or

• (b) that absent parent and his partner (within the meaning of regulation 2(1) of the Social Security (Claims and Payments) Regulations 1987) are both liable to make such payments,

the prescribed amount mentioned in paragraph (2) shall be apportioned between the persons with care in the same ratio as the maintenance requirements of the qualifying child or children in relation to each of those persons with care bear to each other.

• (4) If, in making the apportionment required by paragraph (3), the effect of the application of regulation 2(2) would be such that the aggregate amount payable would be different from the amount prescribed in paragraph (2) the Secretary of State shall adjust that apportionment so as to eliminate that difference; and that adjustment shall be varied from time to time so as to secure that, taking one week with another and so far as is practicable, each person with care receives the amount which she would have received if no adjustment had been made under this paragraph.

• (5) The provisions of Schedule 5 shall have effect in relation to cases to which section 43 of the Act and this regulation apply.

SCHEDULE 1 — CALCULATION OF N AND M

PART I — EARNINGS

Chapter 1 — Earnings of an employed earner

1

• (1) Subject to sub-paragraphs (2) and (3), “earnings" means in the case of employment as an employed earner, any remuneration or profit derived from that employment and includes—

• (a) any bonus, commission, payment in respect of overtime, royalty or fee;

• (aa) any profit-related pay, whether paid in anticipation of, or following, the calculation of profits;

• (b) any holiday pay except any payable more than 4 weeks after termination of the employment;

• (c) any payment by way of a retainer;

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

• (i) travelling expenses incurred by that parent between his home and place of employment; and

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

• (e) any award of compensation made under section 68(2) or 71(2)(a) of the Employment Protection (Consolidation) Act 1978 (remedies and compensation for unfair dismissal);

• (f) any such sum as is referred to in section 112 of the Contributions and Benefits Act (certain sums to be earnings for social security purposes);

• (g) any statutory sick pay under Part I of the Social Security and Housing Benefits Act 1982 or statutory maternity pay under Part V of the Social Security Act 1986 ;

• (gg) any statutory paternity pay under Part 12ZA of the Contributions and Benefits Act or any statutory adoption pay under Part 12ZB of that Act,or any statutory shared parental pay under Part 12ZC of that Act

• (h) any payment in lieu of notice and any compensation in respect of the absence or inadequacy of any such notice but only insofar as such payment or compensation represents loss of income;

• (i) any payment relating to a period of less than a year which is made in respect of the performance of duties as—

• (i) an auxiliary coastguard in respect of coast rescue activities;

• (ii) a part-time fireman in a fire brigade maintained in pursuance of the Fire Services Acts 1947 to 1959;

• (iia) a part-time fire-fighter employed by a fire and rescue authority;

• (iia) a part-time fire-fighter employed by a fire and rescue authority;

• (iib) a part-time fire-fighter employed by the Scottish Fire and Rescue Service;

• (iii) a person engaged part-time in the manning or launching of a lifeboat;

• (iv) a member of any territorial or reserve force prescribed in Part I of Schedule 3 to the Social Security (Contributions) Regulations 1979 ;

• (j) any payment made by a local authority to a member of that authority in respect of the performance of his duties as a member, other than any expenses wholly, exclusively and necessarily incurred in the performance of those duties.

• (2) Earnings shall not include—

• (a) any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment except any such payment which is made in respect of housing costs and those housing costs are included in the calculation of the exempt or protected income of the absent parent under regulation 9(1) (b) or, as the case may be, regulation 11(1) (b);

• (b) any occupational pension;

• (c) any payment where—

• (i) the employment in respect of which it was made has ceased; and

• (ii) a period of the same length as the period by reference to which it was calculated has expired since that cessation but prior to the effective date;

• (d) any advance of earnings or any loan made by an employer to an employee;

• (e) any amount received from an employer during a period when the employee has withdrawn his services by reason of a trade dispute;

• (f) any payment in kind;

• (g) where, in any week or other period which falls within the period by reference to which earnings are calculated, earnings are received both in respect of a previous employment and in respect of a subsequent employment, the earnings in respect of the previous employment.

• (h) any tax-exempt allowance made by an employer to an employee except any such allowance which is made in respect of housing costs and those housing costs are included in the calculation of the exempt or protected income of the absent parent under regulation 9(1)(b) or, as the case may be, regulation 11(1)(b).

• (3) The earnings to be taken into account for the purposes of calculating N and M shall be gross earnings less—

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

• (i) income tax;

• (ii) primary Class 1 contributions under the Contributions and Benefits Act or under the Social Security Contributions and Benefits (Northern Ireland) Act 1992; and

• (b) one half of any sums paid by the parent towards an occupational pension scheme.

• (c) one half of any sums paid by the parent towards a personal pension scheme, or, where that scheme is intended partly to provide a capital sum to discharge a mortgage secured upon the parent’s home, 37.5 per centum of any such sums.

2

• (1) Subject to sub-paragraphs (1A) to (4), the amount of the earnings to be taken into account for the purpose of calculating N and M shall be calculated or estimated by reference to the average earnings at the relevant week having regard to such evidence as is available in relation to that person’s earnings during such period as appears appropriate to the Secretary of State beginning not earlier than eight weeks before the relevant week and ending not later than the date of the assessment and for the purpose of that calculation or estimate he may consider evidence of that person’s cumulative earnings during the period beginning with the start of the year of assessment (within the meaning of section 832 of the Income and Corporation Taxes Act 1988) in which the relevant week falls and ending with a date no later than the date of the assessment.

• (1A) Subject to sub-paragraph (4), where a person has claimed, or has been paid, working tax credit or child tax credit on any day during the period beginning not earlier than eight weeks before the relevant week and ending not later than the date on which the assessment is made, the Secretary of State may have regard to the amount of earnings taken into account in determining entitlement to those benefits in order to calculate or estimate the amount of earnings to be taken into account for the purposes of calculating N and M, notwithstanding the fact that entitlement to those benefits may have been determined by reference to earnings attributable to a period other than that specified in sub-paragraph (1).

• (2) Where a person’s earnings during the period of 52 weeks ending with the relevant week include—

• (a) a bonus, commission, or payment of profit-related pay made in anticipation of the calculation of profits which is paid separately from or in relation to a longer period than, the other earnings with which it is paid; or

• (b) a payment in respect of profit-related pay made following the calculation of the employer’s profits,

the amount of that bonus, commission or profit-related payment shall be determined for the purposes of the calculation of earnings by aggregating any such payments received in that period and dividing by 52.

• (3) Subject to sub-paragraph (4), the amount of any earnings of a student shall be determined by aggregating the amount received in the year ending with the relevant week and dividing by 52 or, where the person in question has been a student for less than a year, by aggregating the amount received in the period starting with his becoming a student and ending with the relevant week and dividing by the number of complete weeks in that period.

• (3A) Where a case is one to which regulation 30A(1) or (3) of the Maintenance Assessment Procedure Regulations applies (effective dates of new maintenance assessments in particular cases), the term “relevant week" shall, for the purpose of this paragraph, mean the period of 7 days immediately preceding the date on which the information or evidence is received which enables a the Secretary of State to make a new maintenance assessment calculated in accordance with the provisions of Part I of Schedule 1 to the Act in respect of that case for a period beginning after the effective date applicable to that case.

• (4) Where a calculation would, but for this sub-paragraph, produce an amount which, in the opinion of the Secretary of State, does not accurately reflect the normal amount of the earnings of the person in question, such earnings, or any part of them, shall be calculated by reference to such other period as may, in the particular case, enable the normal weekly earnings of that person to be determined more accurately and for this purpose the Secretary of State shall have regard to—

• (a) the earnings received, or due to be received, from any employment in which the person in question is engaged, has been engaged or is due to be engaged;

• (b) the duration and pattern, or the expected duration and pattern, of any employment of that person.

Chapter 2 — Earnings of a self-employed earner

3

• (1) Where paragraph 2C applies, and subject to sub-paragraphs (2) and (3) and to paragraph 4, “earnings" in the case of employment as a self-employed earner means the gross receipts of the employment including, where an allowance in the form of periodic payments is paid under section 2 of the Employment and Training Act 1973 or section 2 of the Enterprise and New Towns (Scotland) Act 1990 in respect of the relevant week for the purpose of assisting him in carrying on his business, the total of those payments made during the period by reference to which his earnings are determined under paragraph 5.

• (2) Earnings shall not include—

• (a) any allowance paid under either of those sections in respect of any part of the period by reference to which his earnings are determined under paragraph 5 if no part of that allowance is paid in respect of the relevant week;

• (b) any income consisting of payments received for the provision of board and lodging accommodation unless such payments form the largest element of the recipient’s income.

• (3) Subject to sub-paragraph (7), there shall be deducted from the gross receipts referred to in sub-paragraph (1)—

• (a) except in a case to which paragraph 4 applies, any expenses which are reasonably incurred and are wholly and exclusively defrayed for the purposes of the earner’s business in the period by reference to which his earnings are determined under paragraph 5(1) or, where paragraph 5(2) applies, any such expenses relevant to the period there mentioned (whether or not defrayed in that period);

• (b) except in a case to which paragraph 4 or 5(2) applies, any value added tax paid in the period by reference to which earnings are determined in excess of value added tax received in that period;

• (c) any amount in respect of income tax determined in accordance with sub-paragraph (5);

• (d) any amount in respect of National Insurance contributions determined in accordance with sub-paragraph (6);

• (e) one half of any premium paid in respect of a retirement annuity contract or a personal pension scheme, or, where that scheme is intended partly to provide a capital sum to discharge a mortgage or charge secured upon the parent’s home, 37.5 per centum of the contributions payable.

• (4) For the purposes of sub-paragraph (3)(a)—

• (a) such expenses include—

• (i) repayment of capital on any loan used for the replacement, in the course of business, of equipment or machinery, or the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair;

• (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 business;

• (b) such expenses do not include—

• (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (ii) any capital expenditure;

• (iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (iv) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (v) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (vi) any expenses incurred in providing business entertainment;

• (vii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) For the purposes of sub-paragraph (3)(c), the amount in respect of income tax shall be determined in accordance with the following provisions—

• (a) subject to head (c), an amount of chargeable earnings calculated as if it were equivalent to any personal allowance which would be applicable to the earner by virtue of the provisions of Chapter 1 of Part VII of the Income and Corporation Taxes Act 1988 (personal reliefs) shall be disregarded;

• (b) subject to head (bb), an amount equivalent to income tax shall be calculated with respect to taxable earnings at the rates applicable at the effective date;

• (bb) where taxable earnings are determined over a period of less or more than one year, the amount of earnings to which each tax rate applies shall be reduced or increased in the same proportion to that which the period represented by the chargeable earnings bears to the period of one year;

• (c) the amount to be disregarded by virtue of head (a) shall be calculated by reference to the yearly rate applicable at the effective date, that amount being reduced or increased in the same proportion to that which the period represented by the chargeable earnings bears to the period of one year;

• (d) in this sub-paragraph, “taxable earnings" means the chargeable earnings of the earner following the disregard of any applicable personal allowances.

• (6) For the purposes of sub-paragraph (3)(d), the amount to be deducted in respect of National Insurance contributions shall be the total of—

• (a) the amount of Class 2 contributions (if any) payable under section 11(2) or, as the case may be, (8) of the Contributions and Benefits Act; and

• (b) the amount of Class 4 contributions (if any) payable under section 15(2) of that Act,

at the rates applicable to the chargeable earnings at the effective date.

• (7) 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 1975, sub-paragraph (3) shall have effect as though it requires—

• (a) a deduction from the earner’s estimated or, where appropriate, actual share of the gross receipts of the partnership or fishing boat, of his share of the sums likely to be deducted or, where appropriate, deducted from those gross receipts under heads (a) and (b) of that sub-paragraph; and

• (b) a deduction from the amount so calculated of the sums mentioned in heads (c) to (e) of that sub-paragraph.

• (8) In sub-paragraphs (5) and (6) “chargeable earnings” means the gross receipts of the employment less any deductions mentioned in sub-paragraph (3)(a) and (b).

4

In a case where a person is self-employed as a childminder the amount of earnings referable to that employment shall be one-third of the gross receipts.

5

• (1) Subject to sub-paragraphs (2) to (3)—

• (a) where a person has been a self-employed earner for 52 weeks or more including the relevant week, the amount of his earnings shall be determined by reference to the average of the earnings which he has received in the 52 weeks ending with the relevant week;

• (b) where the person has been a self-employed earner for a period of less than 52 weeks including the relevant week, the amount of his earnings shall be determined by reference to the average of the earnings which he has received during that period.

• (2) Subject to sub-paragraph (2A), where a person who is a self-employed earner provides in respect of the employment a profit and loss account and, where appropriate, a trading account or a balance sheet or both, and the profit and loss account is in respect of a period at least 6 months but not exceeding 15 months and that period terminates within the 24 months immediately preceding the effective date, the amount of his earnings shall be determined by reference to the average of the earnings over the period to which the profit and loss account relates and such earnings shall include receipts relevant to that period (whether or not received in that period).

• (2A) Where the Secretary of State is satisfied that, in relation to the person referred to in sub-paragraph (2) there is more than one profit and loss account, each in respect of different periods, both or all of which satisfy the conditions mentioned in that sub-paragraph, the provisions of that sub-paragraph shall apply only to the account which relates to the latest such period, unless the Secretary of State is satisfied that the latest such account is not available for reasons beyond the control of that person, in which case he may have regard to any such other account which satisfies the requirements of that sub-paragraph.

• (3) Where a calculation would, but for this sub-paragraph, produce an amount which, in the opinion of the Secretary of State, does not accurately reflect the normal amount of the earnings of the person in question, such earnings, or any part of them, shall be calculated by reference to such other period as may, in the particular case, enable the normal weekly earnings of that person to be determined more accurately and for this purpose the Secretary of State shall have regard to—

• (a) the earnings received, or due to be received, from any employment in which the person in question is engaged, or has been engaged or is due to be engaged;

• (b) the duration and pattern, or the expected duration and pattern, of any employment of that person.

• (4) In sub-paragraph (2)—

• (a) “balance sheet" means a statement of the financial position of the employment disclosing its assets, liabilities and capital at the end of the period in question;

• (b) “profit and loss account" means a financial statement showing net profit or loss of the employment for the period in question; and

• (c) “trading account" means a financial statement showing the revenue from sales, the cost of those sales and the gross profit arising during the period in question.

• (5) Subject to sub-paragraph (3), where a person has claimed, or has been paid, working tax credit or child tax credit on any day during the period beginning not earlier than eight weeks before the relevant week and ending not later than the date on which the assessment is made, the Secretary of State may have regard to the amount of earnings taken into account in determining entitlement to those benefits in order to calculate or estimate the amount of earnings to be taken into account for the purposes of calculating N and M, notwithstanding the fact that entitlement to those benefits may have been determined by reference to earnings attributable to a period other than that specified in sub-paragraph (1).

• (6) This paragraph applies only where the earnings of a self-employed earner have the meaning given by paragraph 3 of this Schedule.

PART II — BENEFIT PAYMENTS

6

• (1) The benefit payments to be taken into account in calculating or estimating N and M shall be determined in accordance with this Part.

• (2) “Benefit payments" means any benefit payments under the Contributions and Benefits Act, the Jobseekers Act, the Welfare Reform Act or Part 1 of the Pensions Act 2014 except amounts to be disregarded by virtue of Schedule 2.

• (3) The amount of any benefit payment to be taken into account shall be determined by reference to the rate of that benefit applicable at the effective date.

7

• (1) Where a benefit payment under the Contributions and Benefits Act includes an adult or child dependency increase—

• (a) if that benefit is payable to a parent, the income of that parent shall be calculated or estimated as if it did not include that amount;

• (b) if that benefit is payable to some other person but includes an amount in respect of the parent, the income of the parent shall be calculated or estimated as if it included that amount.

• (1A) For the purposes of sub-paragraph (1), an addition to a contribution-based jobseeker’s allowance under regulation 10(4) of the Jobseeker’s Allowance (Transitional Provisions) Regulations 1996 shall be treated as a dependency increase included with a benefit under the Contributions and Benefits Act.

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

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

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

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

• (6) Where child benefit in respect of a relevant child is in payment at the rate specified in regulation 2(1)(a)(ii) of the Child Benefit Rates Regulations, the difference between that rate and the basic rate applicable to that child, as defined in regulation 4.

PART III — OTHER INCOME

8

The amount of the other income to be taken into account in calculating or estimating N and M shall be the aggregate of the following amounts determined in accordance with this Part.

9

Any periodic payment of pension or other benefit under an occupational or personal pension scheme or a retirement annuity contract or other such scheme for the provision of income in retirement.

10

Any payment received on account of the provision of board and lodging which does not come within Part I of this Schedule.

11

Subject to regulation 7(3)(b) and paragraph 12, any payment to a student of—

• (a) grant;

• (b) an amount in respect of grant contribution;

• (c) covenant income except to the extent that it has been taken into account under sub-paragraph (b);

• (d) a student loan.

12

The income of a student shall not include any payment—

• (a) intended to meet tuition fees or examination fees;

• (b) intended to meet additional expenditure incurred by a disabled student in respect of his attendance on a course;

• (c) intended to meet additional expenditure connected with term time residential study away from the student’s educational establishment;

• (d) on account of the student maintaining a home at a place other than that at which he resides during his course;

• (e) intended to meet the cost of books, and equipment (other than special equipment) or, if not so intended, an amount equal to the amount allowed under regulation 62(2A)(b) of the Income Support (General) Regulations 1987 towards such costs;

• (f) intended to meet travel expenses incurred as a result of his attendance on the course.

13

Any interest, dividend or other income derived from capital.

14

Any maintenance payments in respect of a parent.

15

Any other payments or other amounts received on a periodical basis which are not otherwise taken into account under Part I, II, IV or V of this except payments or other amounts which—

16

• (1) Subject to sub-paragraphs (2) to (7) the amount of any income to which this Part applies shall be calculated or estimated—

• (a) where it has been received in respect of the whole of the period of 26 weeks which ends at the end of the relevant week, by dividing such income received in that period by 26;

• (b) where it has been received in respect of part of the period of 26 weeks which ends at the end of the relevant week, by dividing such income received in that period by the number of complete weeks in respect of which such income is received and for this purpose income shall be treated as received in respect of a week if it is received in respect of any day in the week in question.

• (2) The amount of maintenance payments made in respect of a parent—

• (a) where they are payable weekly and have been paid at the same amount in respect of each week in the period of 13 weeks which ends at the end of the relevant week, shall be the amount equal to one of those payments;

• (b) in any other case, shall be the amount calculated by aggregating the total amount of those payments received in the period of 13 weeks which ends at the end of the relevant week and dividing by the number of weeks in that period in respect of which maintenance was due.

• (3) In the case of a student—

• (a) the amount of any grant and any amount paid in respect of grant contribution shall be calculated by apportioning it equally between the weeks in respect of which it is payable;

• (b) the amount of any covenant income shall be calculated by dividing the amount payable in respect of a year by 52 (or, where such amount is payable in respect of a lesser period, by the number of complete weeks in that period) and, subject to sub-paragraph (4), deducting £5·00;

• (c) the amount of any student loan shall be calculated by apportioning the loan equally between the weeks in respect of which it is payable and, subject to sub-paragraph (4), deducting £10·00.

• (4) For the purposes of sub-paragraph (3)—

• (a) not more than £500 shall be deducted under sub-paragraph (3)(b);

• (b) not more than £1000 in total shall be deducted under sub-paragraphs (3)(b) and (c).

• (5) Where in respect of the period of 52 weeks which ends at the end of the relevant week a person is in receipt of interest, dividend or other income which has been produced by his capital, the amount of that income shall be calculated by dividing the aggregate of the income so received by 52.

• (6) Where a calculation would, but for this sub-paragraph, produce an amount which, in the opinion of the Secretary of State, does not accurately reflect the normal amount of the other income of the person in question, such income, or any part of it, shall be calculated by reference to such other period as may, in the particular case, enable the other income of that person to be determined more accurately and for this purpose the Secretary of State shall have regard to the nature and pattern of receipt of such income.

• (7) This paragraph shall not apply to payments of working tax credit referred to in paragraph 14B.

PART IV — INCOME OF CHILD TREATED AS INCOME OF PARENT

17

The amount of any income of a child which is to be treated as the income of the parent in calculating or estimating N and M shall be the aggregate of the amounts determined in accordance with this Part.

18

Where a child has income which falls within the following paragraphs of this Part and that child is a member of the family of his parent (whether that child is a qualifying child in relation to that parent or not), the relevant income of that child shall be treated as that of his parent.

19

Where child support maintenance is being assessed for the support of only one qualifying child, the relevant income of that child shall be treated as that of the parent with care.

20

Where child support maintenance is being assessed to support more than one qualifying child, the relevant income of each of those children shall be treated as that of the parent with care to the extent that it does not exceed the aggregate of—

• (a) the amount determined under—

• (i) regulation 3(1)(a) (calculation of AG) in relation to the child in question; and

• (ii) the total of any other amounts determined under regulation 3(1)(b) and (c) which are applicable in the case in question divided by the number of children for whom child support maintenance is being calculated,

less the basic rate of child benefit (within the meaning of regulation 4) for the child in question; and

• (b) one-and-a-half times the total of the amounts calculated under regulation 3(1)(a) (income support personal allowance for child or young person) in respect of that child and regulation 3(1)(c) (income support family premium).

21

Where child support maintenance is not being assessed for the support of the child whose income is being calculated or estimated, the relevant income of that child shall be treated as that of his parent to the extent that it does not exceed the amount determined under regulation 9(1)(g).

22

• (1) Where a benefit under the Contributions and Benefits Act includes an adult or child dependency increase in respect of a relevant child, the relevant income of that child shall be calculated or estimated as if it included that amount.

• (1A) For the purposes of sub-paragraph (1), an addition to a contribution-based jobseeker’s allowance under regulation 10(4) of the Jobseeker’s Allowance (Transitional Provisions) Regulations 1996 shall be treated as a dependency increase included with a benefit under the Contributions and Benefits Act.

• (1B)

• (a) Where a war disablement pension includes a dependency allowance paid in respect of a relevant child, the relevant income of that child shall be calculated or estimated as if it included that amount.

• (b) For the purposes of this paragraph, a “war disablement pension” includes a war widow's pension, a war widower's pension and a surviving civil partner's war pension, a payment made to compensate for non-payment of such a pension, and a pension or payment analogous to such a pension or payment paid by the government of a country outside Great Britain.

23

For the purposes of this Part, “the relevant income of a child" does not include—

• (a) any earnings of the child in question;

• (b) payments by an absent parent to the child for whom maintenance is being assessed;

• (c) where the class of persons who are capable of benefiting from a discretionary trust include the child in question, payments from that trust except in so far as they are made to provide for food, ordinary clothing and footwear, gas, electricity or fuel charges or housing costs; or

• (d) any interest payable on arrears of child support maintenance for that child;

• (e) the first £10 of any other income of that child

24

The amount of the income of a child which is treated as the income of the parent shall be determined in the same way as if such income were the income of the parent.

PART V — AMOUNTS TREATED AS THE INCOME OF A PARENT

25

The amounts which fall to be treated as income of the parent in calculating or estimating N and M shall include amounts to be determined in accordance with this Part.

26

Where the Secretary of State is satisfied—

• (a) that a person has performed a service either—

• (i) without receiving any remuneration in respect of it; or

• (ii) for remuneration which is less than that normally paid for that service;

• (b) that the service in question was for the benefit of—

• (i) another person who is not a member of the same family as the person in question; or

• (ii) a body which is neither a charity nor a voluntary organisation;

• (c) that the service in question was performed for a person who, or as the case may be, a body which was able to pay remuneration at the normal rate for the service in question;

• (d) that the principal purpose of the person undertaking the service without receiving any or adequate remuneration is to reduce his assessable income for the purposes of the Act; and

• (e) that any remuneration foregone would have fallen to be taken into account as earnings,

the value of the remuneration foregone shall be estimated by the Secretary of State and an amount equal to the value so estimated shall be treated as income of the person who performed those services.

27

Subject to paragraphs 28 to 30, where the Secretary of State is satisified that, otherwise than in the circumstances set out in paragraph 26, a person has intentionally deprived himself of—

• (a) any income or capital which would otherwise be a source of income;

• (b) any income or capital which it would be reasonable to expect would be secured by him,

with a view to reducing the amount of his assessable income, his net income shall include the amount estimated by the Secretary of State as representing the income which that person would have had if he had not deprived himself of or failed to secure that income, or as the case may be, that capital.

28

No amount shall be treated as income by virtue of paragraph 27 in relation to—

• (a) if the parent satisfies the conditions for payment of the rate of child benefit specified in regulation 2(1)(a)(ii) of the Child Benefit Rates Regulations, an amount representing the difference between that rate and the basic rate, as defined in regulation 4;

• (b) if the parent is a person to, or in respect of, whom income support is payable, a contribution-based jobseeker’s allowance;

• (c) a payment from a discretionary trust or a trust derived from a payment made in consequence of a personal injury.

29

Where an amount is included in the income of a person under paragraph 27 in respect of income which would become available to him on application, the amount included under that paragraph shall be included from the date on which it could be expected to be acquired.

30

Where the Secretary of State determines under paragraph 27 that a person has deprived himself of capital which would otherwise be a source of income, the amount of that capital shall be reduced at intervals of 52 weeks, starting with the week which falls 52 weeks after the first week in respect of which income from it is included in the calculation of the assessment in question, by an amount equal to the amount which the Secretary of State estimates would represent the income from that source in the immediately preceding period of 52 weeks.

31

Where a payment is made on behalf of a parent or a relevant child in respect of food, ordinary clothing or footwear, gas, electricity or fuel charges, housing costs or council tax, an amount equal to the amount which the Secretary of State estimates represents the value of that payment shall be treated as the income of the parent in question except to the extent that such amount is—

• (a) disregarded under paragraph 38 of Schedule 2;

• (b) a payment of school fees paid by or on behalf of someone other than the absent parent.

32

Where paragraph 26 applies the amount to be treated as the income of the parent shall be determined as if it were earnings from employment as an employed earner and in a case to which paragraph 27 or 31 applies the amount shall be determined as if it were other income to which Part III of this Schedule applies.

SCHEDULE 2 — AMOUNTS TO BE DISREGARDED WHEN CALCULATING OR ESTIMATING N and M

1

The amounts referred to in this Schedule are to be disregarded when calculating or estimating N and M (parent’s net income).

2

An amount in respect of income tax applicable to the income in question where not otherwise allowed for under these Regulations.

3

Where a payment is made in a currency other than sterling, an amount equal to any banking charge or commission payable in converting that payment to sterling.

4

Any amount payable in a country outside the United Kingdom where there is a prohibition against the transfer to the United Kingdom of that amount.

5

Any compensation for personal injury and any payments from a trust fund set up for that purpose.

6

Any advance of earnings or any loan made by an employer to an employee.

7

Any payment by way of, or any reduction or discharge of liability resulting from entitlement to, housing benefit or council tax benefit.

8

Any disability living allowance, personal independence payment, mobility supplement, armed forces independence payment under the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011 or any payment intended to compensate for the non-payment of any such allowance, payment or supplement.

9

Any payment which is—

• (a) an attendance allowance under section 64 of the Contributions and Benefits Act;

• (b) an increase of disablement pension under section 104 or 105 of that Act (increases where constant attendance needed or for exceptionally severe disablement);

• (c) a payment made under regulations made in exercise of the power conferred by Schedule 8 to that Act (payments for pre-1948 cases);

• (d) an increase of an allowance payable in respect of constant attendance under that Schedule;

• (e) payable by virtue of articles 14, 15, 16, 43 or 44 of the Personal Injuries (Civilians) Scheme 1983 (allowances for constant attendance and exceptionally severe disablement and severe disablement occupational allowance) or any analogous payment; or

• (f) a payment based on the need for attendance which is paid as part of a war disablement pension.

10

Any payment under section 148 of the Contributions and Benefits Act (pensioners’ Christmas bonus).

11

Any social fund payment within the meaning of Part VIII of the Contributions and Benefits Act.

12

Any payment made by the Secretary of State to compensate for the loss (in whole or in part) of entitlement to housing benefit.

13

Any payment made by the Secretary of State to compensate for loss of housing benefit supplement under regulation 19 of the Supplementary Benefit (Requirements) Regulations 1983 .

14

Any payment made by the Secretary of State to compensate a person who was entitled to supplementary benefit in respect of a period ending immediately before 11th April 1988 but who did not become entitled to income support in respect of a period beginning with that day.

15

Any concessionary payment made to compensate for the non-payment of income support, state pension credit, income-based jobseeker’s allowance, disability living allowance, personal independence payment, armed forces independence payment under the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011, or any payment to which paragraph 9 applies.

16

Any payments of child benefit to the extent that they do not exceed the basic rate of that benefit as defined in regulation 4.

17

Any payment made under regulations 9 to 11 or 13 of the Welfare Food Regulations 1988 (payments made in place of milk tokens or the supply of vitamins).

18

Subject to paragraph 20 and to the extent that it does not exceed £10·00—

• (a) war disablement pension or war widow’s pension or war widower’s pension or a payment made to compensate for non-payment of such a pension;

• (b) a pension paid by the government of a country outside Great Britain and which either—

• (i) is analogous to a war disablement pension; or

• (ii) is analogous to a war widow’s pension or war widower’s pension.

19

• (1) Except where sub-paragraph (2) applies and subject to sub-paragraph (3) and paragraphs 20, 38 and 47, up to £20.00 of any charitable or voluntary payment made, or due to be made, at regular intervals.

• (2) Subject to sub-paragraph (3) and paragraphs 38 and 47, any charitable or voluntary payment made or due to be made at regular intervals which is intended and used for an item other than food, ordinary clothing or footwear, gas, electricity or fuel charges, housing costs of any member of the family or the payment of council tax.

• (3) Sub-paragraphs (1) and (2) shall not apply to a payment which is made by a person for the maintenance of any member of his family or of his former partner or of his children.

• (4) For the purposes of sub-paragraph (1) where a number of charitable or voluntary payments fall to be taken into account they shall be treated as though they were one such payment.

20

• (1) Where, but for this paragraph, more than £20.00 would be disregarded under paragraphs 18 to 19(1) in respect of the same week, only £20.00 in aggregate shall be disregarded and where an amount falls to be deducted from the income of a student under paragraph 16(3)(b) or (c) of Schedule 1, that amount shall count as part of the £20.00 disregard allowed under this paragraph.

• (2) Where any payment which is due to be paid in one week is paid in another week, sub-paragraph (1) and paragraphs 18 to 19(1) shall have effect as if that payment were received in the week in which it was due.

21

In the case of a person participating in arrangements for training made under section 2 of the Employment and Training Act 1973 or section 2 of the Enterprise and New Towns (Scotland) Act 1990 (functions in relation to training for employment etc.) or attending a course at an employment rehabilitation centre established under section 2 of the 1973 Act—

• (a) any travelling expenses reimbursed to the person;

• (b) any living away from home allowance under section 2(2)(d) of the 1973 Act or section 2(4)(c) of the 1990 Act;

• (c) any training premium,

but this paragraph, except in so far as it relates to a payment mentioned in sub-paragraph (a), (b) or (c), does not apply to any part of any allowance under section 2(2)(d) of the 1973 Act or section 2(4)(c) of the 1990 Act.

22

Where a parent occupies a dwelling as his home and that dwelling is also occupied by a person, other than a non-dependant or a person who is provided with board and lodging accommodation, and that person is contractually liable to make payments in respect of his occupation of the dwelling to the parent, the amount or, as the case may be, the amounts specified in paragraph 19 of Schedule 9 to the Income Support (General) Regulations 1987 which would have applied if he had been in receipt of income support.

23

Where a parent, who is not a self-employed earner, is in receipt of rent or any other money in respect of the use and occupation of property other than his home, that rent or other payment to the extent of any sums which that parent is liable to pay by way of—

• (a) payments which are to be taken into account as eligible housing costs under sub- paragraphs (b), (c), (d) and (t) of paragraph 1 of Schedule 3 (eligible housing costs for the purposes of determining exempt income and protected income) and paragraph 3 of that Schedule (exempt income: additional provisions relating to eligible housing costs);

• (b) council tax payable in respect of that property;

• (c) water and sewerage charges payable in respect of that property.

24

For each week in which a parent provides board and lodging accommodation in his home otherwise than as a self-employed earner—

• (a) £20.00 of any payment for that accommodation made by, on behalf or in respect of the person to whom that accommodation is provided; and

• (b) where any such payment exceeds £20.00, 50 per centum of the excess.

25

Any payment made to a person in respect of an adopted child who is a member of his family that is made in accordance with any regulations made under section 57A or pursuant to section 57A(6) of the Adoption Act 1976 (permitted allowances) or paragraph 3 of Schedule 4 to the Adoption and Children Act 2002 or, as the case may be, section 51A of the Adoption (Scotland) Act 1978 (schemes for the payment of allowances to adopters) or in accordance with an adoption allowance scheme made under section71 of the Adoption and Children (Scotland) Act 2007 (adoption allowances schemes)—

• (a) where the child is not a child in respect of whom child support maintenance is being assessed, to the extent that it exceeds the aggregate of the amounts to be taken into account in the calculation of E under regulation 9(1)(g), reduced, as the case may be, under regulation 9(4);

• (b) in any other case, to the extent that it does not exceed the amount of the income of a child which is treated as that of his parent by virtue of Part IV of Schedule 1.

26

Where a local authority makes a payment in respect of the accommodation and maintenance of a child in pursuance of paragraph 15 of Schedule 1 to the Children Act 1989 (local authority contribution to child’s maintenance) to the extent that it exceeds the amount referred to in regulation 9(1)(g) (reduced, as the case may be, under regulation 9(4)).

27

Any payment received under a policy of insurance taken out to insure against the risk of being unable to maintain repayments on a loan taken out to acquire an interest in, or to meet the cost of repairs or improvements to, the parent’s home and used to meet such repayments, to the extent that the payment received under that policy exceeds the total of the amount of the payments set out in paragraphs 1(b), 3(2) and (4) of Schedule 3 as modified, where applicable, by regulation 18.

28

In the calculation of the income of the parent with care, any maintenance payments made by the absent parent in respect of his qualifying child.

29

Any payment made by a local authority to a person who is caring for a child under section 23(2)(a) of the Children Act 1989 (provision of accommodation and maintenance by a local authority for children whom the authority is looking after) or, as the case may be, section 21 of the Social Work (Scotland) Act 1968 or by a voluntary organisation under section 59(1)(a) of the Children Act 1989 (provision of accommodation by voluntary organisations) or by a care authority under regulation 9 of the Boarding Out and Fostering of Children (Scotland) Regulations 1985 (provision of accommodation and maintenance for children in care).

30

Any payment made by a health authority, integrated care board, local authority or voluntary organisation or the National Health Service Commissioning Board in respect of a person who is not normally a member of the household but is temporarily in the care of a member of it.

31

Any payment made by a local authority under section 17 or 24 of the Children Act 1989 or, as the case may be, section 12, 24 or 26 of the Social Work (Scotland) Act 1968 (local authorities’ duty to promote welfare of children and powers to grant financial assistance to persons looked after, or in, or formerly in, their care).

32

Any resettlement benefit which is paid to the parent by virtue of regulation 3 of the Social Security (Hospital In-Patients) Amendment (No. 2) Regulations 1987 (transitional provisions).

33

• (1) Any payment or repayment made—

• (a) as respects England and Wales, under regulation 3, 5 or 8 of the National Health Service (Travelling Expenses and Remission of Charges) Regulations 1988 (travelling expenses and health service supplies);

• (b) as respects Scotland, under regulation 3, 5 or 8 of the National Health Service (Travelling Expenses and Remission of Charges) (Scotland) Regulations 1988 (travelling expenses and health service supplies).

• (2) Any payment or repayment made by the Secretary of State for Health, the Secretary of State for Scotland or the Secretary of State for Wales which is analogous to a payment or repayment mentioned in sub-paragraph (1).

34

Any payment made (other than a training allowance), whether by the Secretary of State or any other person, under the Disabled Persons Employment Act 1944 or in accordance with arrangements made under section 2 of the Employment and Training Act 1973 to assist disabled persons to obtain or retain employment despite their disability.

35

Any contribution to the expenses of maintaining a household which is made by a non-dependant member of that household.

36

Any sum in respect of a course of study attended by a child payable by virtue of regulations made under section 81 of the Education Act 1944 (assistance by means of scholarship or otherwise), or by virtue of section 2(1) of the Education Act 1962 (awards for courses of further education) or section 49 of the Education (Scotland) Act 1980 (power to assist persons to take advantage of educational facilities).

37

Where a person receives income under an annuity purchased with a loan which satisfies the following conditions—

• (a) that loan was made as part of a scheme under which not less than 90 per centum 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 two or more persons (in this paragraph referred to as “the annuitants") who include the person to whom the loan was made;

• (b) that the interest on the loan is payable by the person to whom it was made or by one of the annuitants;

• (c) 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;

• (d) that the loan was secured on a dwelling in Great Britain and the person to whom the loan was made or one of the annuitants owns an estate or interest in that dwelling; and

• (e) 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,

the amount, calculated on a weekly basis equal to—

• (i) where, or insofar as, section 26 of the Finance Act 1982 (deduction of tax from certain loan interest) applies to the payments of interest on the loan, the interest which is payable after the deduction of a sum equal to income tax on such payments at the basic rate for the year of assessment in which the payment of interest becomes due;

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

38

Any payment of the description specified in paragraph 39 of Schedule 9 to the Income Support Regulations (disregard of payments made under certain trusts and disregard of certain other payments) and any income derived from the investment of such payments.

39

Any payment made to a juror or witness in respect of attendance at court other than compensation for loss of earnings or for loss of a benefit payable under the Contributions and Benefits Act or the Jobseekers Act.

40

Any special war widows’ payment made under—

• (a) the Naval and Marine Pay and Pensions (Special War Widows Payment) Order 1990 made under section 3 of the Naval and Marine Pay and Pensions Act 1865 ;

• (b) the Royal Warrant dated 19th February 1990 amending the Schedule to the Army Pensions Warrant 1977 ;

• (c) the Queen’s Order dated 26th February 1990 made under section 2 of the Air Force (Constitution) Act 1917 ;

• (d) the Home Guard War Widows Special Payments Regulations 1990 made undersection 151 of the Reserve Forces Act 1980 ;

• (e) the Orders dated 19th February 1990 amending Orders made on 12th December 1980 concerning the Ulster Defence Regiment made in each case under section 140 of the Reserve Forces Act 1980 ,

and any analogous payment by the Secretary of State for Defence to any person who is not a person entitled under the provisions mentioned in sub-paragraphs (a) to (e).

41

Any payment to a person as holder of the Victoria Cross or the George Cross or any analogous payment.

42

Any payment made either by the Secretary of State for the Home Department or by the Secretary of State for Scotland under a scheme established to assist relatives and other persons to visit persons in custody.

43

Any amount by way of a refund of income tax deducted from profits or emoluments chargeable to income tax under Schedule D or Schedule E.

44

Maintenance payments (whether paid under the Act or otherwise) insofar as they are not treated as income under Part III or IV of Schedule 1.

45

Where following a divorce, dissolution of a civil partnership or separation—

• (a) capital is divided between the parent and the person who was his partner before the divorce, dissolution of the civil partnership or separation; and

• (b) that capital is intended to be used to acquire a new home for that parent or to acquire furnishings for a home of his,

income derived from the investment of that capital for one year following the date on which that capital became available to the parent.

46

Except in the case of a self-employed earner, payments in kind.

47

Any payment made by the Joseph Rowntree Memorial Trust from money provided to it by the Secretary of State for Health for the purpose of maintaining a family fund for the benefit of severely handicapped children.

48

Any payment of expenses to a person who is—

• (a) engaged by a charitable or voluntary body; or

• (b) a volunteer,

if he otherwise derives no remuneration or profit from the body or person paying those expenses.

49

In this Schedule—

SCHEDULE 3 — ELIGIBLE HOUSING COSTS

Eligible housing costs for the purposes of determining exempt income and protected income

1

Subject to the following provisions of this Schedule, the following amounts payable in respect of the provision of a home shall be eligible to be taken into account as housing costs for the purposes of these Regulations—

• (a) amounts payable by way of rent;

• (b) amounts payable by way of mortgage interest;

• (c) amounts payable by way of interest under a hire purchase agreement to buy a home;

• (d) amounts payable by way of interest on loans for repairs and improvements to the home, including interest on a loan for any service charge imposed to meet the cost of such repairs and improvements;

• (e) amounts payable by way of ground rent or in Scotland, amounts payable by way of feu duty;

• (f) amounts payable under a co-ownership scheme;

• (g) amounts payable in respect of, or in consequence of, the use and occupation of the home;

• (h) where the home is a tent, amounts payable in respect of the tent and the site on which it stands;

• (i) amounts payable in respect of a licence or permission to occupy the home (whether or not board is provided);

• (j) amounts payable by way of mesne profits or, in Scotland, violent profits;

• (k) amounts payable by way of service charges, the payment of which is a condition on which the right to occupy the home depends;

• (l) amounts payable under or relating to a tenancy or licence of a Crown tenant;

• (m) mooring charges payable for a houseboat;

• (n) where the home is a caravan or a mobile home, amounts payable in respect of the site on which it stands;

• (o) any contribution payable by a parent resident in an almshouse provided by a housing association which is either a charity of which particulars are entered in the register of charities established under section 4 of the Charities Act 1960 (register of charities) or an exempt charity within the meaning of that Act, which is a contribution towards the cost of maintaining that association’s almshouses and essential services in them;

• (p) amounts payable under a rental purchase agreement, that is to say an agreement for the purchase of a home 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;

• (q) where, in Scotland, the home is situated on or pertains to a croft within the meaning of section 3(1) of the Crofters (Scotland) Act 1955, the amount payable in respect of the croft land;

• (r) where the home is provided by an employer (whether under a condition or term in a contract of service or otherwise), amounts payable to that employer in respect of the home, including any amounts deductible by the employer from the remuneration of the parent in question;

• (s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (t) amounts payable in respect of a loan taken out to pay off another loan but only to the extent that it was incurred in respect of amounts eligible to be taken into account as housing costs by virtue of other provisions of this Schedule.

Loans for repairs and improvements to the home

2

Subject to paragraph 2A (loans for repairs and improvements in transitional cases), for the purposes of paragraph 1(d) “repairs and improvements" means major repairs necessary to maintain the fabric of the home and any of the following measures undertaken with a view to improving its fitness for occupation—

• (a) installation of a fixed bath, shower, wash basin or lavatory, and necessary associated plumbing;

• (b) damp proofing measures;

• (c) provision or improvement of ventilation and natural lighting;

• (d) provision of electric lighting and sockets;

• (e) provision or improvement of drainage facilities;

• (f) improvement of the structural condition of the home;

• (g) improvements to the facilities for the storing, preparation and cooking of food;

• (h) provision of heating, including central heating;

• (i) provision of storage facilities for fuel and refuse;

• (j) improvements to the insulation of the home;

• (k) other improvements which the Secretary of State considers reasonable in the circumstances.

Exempt income: additional provisions relating to eligible housing costs

3

• (1) The additional provisions made by this paragraph shall have effect only for the purpose of calculating or estimating exempt income.

• (2) Subject to sub-paragraph (6), where the home of an absent parent or, as the case may be, a parent with care, is subject to a mortgage or charge and that parent is liable to make periodical payments to reduce the capital secured by that mortgage or charge of an amount provided for in accordance with the terms thereof, those amounts payable shall be eligible to be taken into account as the housing costs of that parent.

• (2A) Where an absent parent or as the case may be a parent with care has entered into a loan for repairs or improvements of a kind referred to in paragraph 1(d) and that parent is liable to make periodical payments of an amount provided for in accordance with the terms of that loan to reduce the amount of that loan, those amounts payable shall be eligible to be taken into account as housing costs of that parent.

• (3) Subject to sub-paragraph (6), where the home of an absent parent or, as the case may be, a parent with care, is held under an agreement and certain amounts payable under that agreement are included as housing costs by virtue of paragraph 1 of this Schedule, any other amounts payable in accordance with that agreement by the parent in order either—

• (a) to reduce his liability under that agreement; or

• (b) to acquire the home to which it relates,

shall also be eligible to be taken into account as housing costs.

• (4) Where a policy of insurance has been obtained and retained for the purpose of discharging a mortgage or charge on the home of the parent in question, the amount of the premiums payable under that policy shall be eligible to be taken into account as a housing cost including for the avoidance of doubt such a policy of insurance whose purpose is to secure the payment of monies due under the mortgage or charge in the event of the unemployment, sickness or disability of the insured.

• (4A) Where—

• (a) an absent parent or parent with care has obtained a loan which constitutes an eligible housing cost falling within sub-paragraph (d) or (t) of paragraph 1; and

• (b) a policy of insurance has been obtained and retained, the purpose of which is solely to secure the payment of monies due under that loan in the event of the unemployment, sickness or disability of the insured person,

the amount of the premiums payable under that policy shall be eligible to be taken into account as a housing cost.

• (5) Where a policy of insurance has been obtained and retained for the purpose of discharging a mortgage or charge on the home of the parent in question and also for the purpose of accruing profits on the maturity of the policy, there shall be eligible to be taken into account as a housing cost—

• (a) where the sum secured by the mortgage or charge does not exceed £60,000, the whole of the premiums payable under that policy; and

• (b) where the sum secured by the mortgage or charge exceeds £60,000, the part of the premiums payable under that policy which are necessarily incurred for the purpose of discharging the mortgage or charge or, where that part cannot be ascertained, 0.0277 per centum of the amount secured by the mortgage or charge.

• (5A) Where a plan within the meaning of regulation 4 of the Personal Equity Plans Regulations 1989 has been obtained and retained for the purpose of discharging a mortgage or charge on the home of the parent in question and also for the purpose of accruing profits upon the realisation of the plan, there shall be eligible to be taken into account as a housing cost—

• (a) where the sum secured by the mortgage or charge does not exceed £60,000, the whole of the premiums payable in respect of the plan; and

• (b) where the sum secured by the mortgage or charge exceeds £60,000, that part of the premiums payable in respect of the plan which is necessarily incurred for the purpose of discharging the mortgage or charge or, where that part cannot be ascertained, 0.0277 per centum of the amount secured by the mortgage or charge.

• (5B) Where a personal pension plan derived from a personal pension scheme has been obtained and retained for the purpose of discharging a mortgage or charge on the home of the parent in question and also for the purpose of securing the payment of a pension to him, there shall be eligible to be taken into account as a housing cost 25 per centum of the contributions payable in respect of that personal pension plan.

• (6) For the purposes of sub-paragraphs (2) and (3), housing costs shall not include—

• (a) any payments in excess of those required to be made under or in respect of a mortgage, charge or agreement to which either of those sub-paragraphs relate;

• (b) amounts payable under any second or subsequent mortgage on the home to the extent that they would not be eligible to be taken into account as housing costs;

• (c) premiums payable in respect of any policy of insurance against loss caused by the destruction of or damage to any building or land.

Conditions relating to eligible housing costs

4

• (1) Subject to the following provisions of this paragraph the housing costs referred to in this Schedule shall be included as housing costs only where—

• (a) they are necessarily incurred for the purpose of purchasing, renting or otherwise securing possession of the home for the parent and his family, or for the purpose of carrying out repairs and improvements to that home;

• (b) the parent or, if he is one of a family, he or a member of his family, is responsible for those costs; and

• (c) the liability to meet those costs is to a person other than a member of the same household.

• (1A) For the purposes of sub-paragraph (1)(a) “repairs and improvements" shall have the meaning given in paragraph 2 of this Schedule.

• (2) For the purposes of sub-paragraph (1)(b) a parent shall be treated as responsible for housing costs where—