The Social Security (Back to Work Bonus) (No.2)Regulations 1996

Made: 10th October 1996

Laid before Parliament: 14th October 1996

Coming into force: 4th November 1996

The Secretary of State for Social Security, in exercise of the powers conferred upon him by sections 26, 35(1) and (3) and 36(2) to (5) of the Jobseekers Act 1995 and of all other powers enabling him in that behalf, by this instrument, which is made for the purpose only of consolidating other regulations revoked by these Regulations, hereby makes the following Regulations:

Citation, commencement and interpretation

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• (1) These Regulations may be cited as the Social Security (Back to Work Bonus) (No.2) Regulations 1996 and shall come into force on 4th November 1996.

• (2) In these Regulations—

“the Act" means the Jobseekers Act 1995;

“applicant" means the person claiming the bonus;

“benefit week"—

• (a) where the benefit is income support, has the meaning it has in the Income Support Regulations by virtue of regulation 2(1) of those Regulations;

• (b) where the benefit is a jobseeker’s allowance, has the meaning it has in the Jobseeker’s Allowance Regulations by virtue of regulation 1(3) of those Regulations;

• “bonus" means a back to work bonus;“bonus period" means a period beginning on the first day of entitlement to a qualifying benefit in a period of entitlement to a qualifying benefit which falls after the waiting period and ends on the last day of that period of entitlement;“bonus period” means a period beginning on the first day of entitlement to a qualifying benefit (provided that that day is not after 24th October 2004) in a period of entitlement to a qualifying benefit which falls after the waiting period and which ends on the last day of that period of entitlement or on 24th October 2004 whichever of these two dates is the earlier;“claim" means a claim made in accordance with regulation 22;“couple" means a married or an unmarried couple;“earnings" means, unless the context requires otherwise, any earnings which are payable within the bonus period and which—where the qualifying benefit is income support, are net earnings or net profit within the meaning of regulation 2 of the Income Support Regulations or are treated as earnings in accordance with regulation 42(5) or (6) of the Income Support Regulations; orwhere the qualifying benefit is a jobseeker’s allowance, are net earnings or net profit within the meaning of regulation 1(3) of the Jobseeker’s Allowance Regulations or are treated as earnings in accordance with regulation 105(12) or (13) of the Jobseeker’s Allowance Regulations,and for this purpose an amount is payable on the date it is treated as paid for the purpose of regulation 31 of the Income Support Regulations where the qualifying benefit is income support, and for the purpose of regulation 96 of the Jobseeker’s Allowance Regulations where the qualifying benefit is a jobseeker’s allowance;

• “employment" includes any trade, business, profession, office or vocation;“the Income Support Regulations" means the Income Support (General) Regulations 1987 ;“the Jobseeker’s Allowance Regulations" means the Jobseeker’s Allowance Regulations 1996 ;“partner" means where the person—is a member of a married or unmarried couple, the other member of that couple;is married polygamously to two or more members of his household, any such member;

• “pensionable age" has the meaning it has in section 122(1) of the Benefits Act;“period of entitlement to a qualifying benefit" shall be construed in accordance with regulations 2 and 3;“polygamous marriage" means any marriage during the subsistence of which a party to it is married to more than one person and the ceremony of marriage took place under the law of a country which permits polygamy;“training" means training for which a training allowance is payable;“training allowance" means an allowance (whether by way of periodical grants or otherwise) payable—out of public funds by a Government department or by or on behalf of the Secretary of State for Education and Employment, Scottish Enterprise or Highlands and Islands Enterprise; andto a person for his maintenance or in respect of a member of his family; andfor the period, or part of the period, during which he is following a course of training or instruction provided by, or in pursuance of arrangements made with, that department or approved by that department in relation to him or so provided or approved by or on behalf of the Secretary of State for Education and Employment, Scottish Enterprise or Highlands and Islands Enterprise,but it does not include an allowance paid by any Government department to or in respect of a person by reason of the fact that he is following a course of full-time education, other than under arrangements made under section 2 of the Employment and Training Act 1973 or section 2 of the Enterprise and New Towns (Scotland) Act 1990 , or is training as a teacher;

• “waiting period" means the period of 91 consecutive days to which regulation 6 refers;“waiting period” means the period of 91 consecutive days to which regulation 6 refers, provided that none of those days falls after 24th October 2004;“week" means a period of 7 days;“work condition" has the meaning it has in regulation 7(2)(b).

• (3) For the purposes of these Regulations the qualifying benefits are a jobseeker’s allowance and income support.

• (4) In these Regulations, unless the context otherwise requires, a reference—

• (a) to a numbered section is to the section of the Act bearing that number;

• (b) to a numbered regulation is to the regulation in these Regulations bearing that number;

• (c) in a regulation to a numbered paragraph is to the paragraph in that regulation bearing that number;

• (d) in a paragraph to a lettered or numbered sub-paragraph is to the sub-paragraph in that paragraph bearing that letter or number.

Period of entitlement to a qualifying benefit

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• (1) A period of entitlement to a qualifying benefit comprises only days on which a person is entitled to, or treated as entitled to, a qualifying benefit.

• (2) Subject to paragraph (4), any two or more periods of entitlement to a qualifying benefit separated by an intervening period specified in paragraph (3) shall link together to form a single period of entitlement to a qualifying benefit.

• (3) The intervening periods specified in this paragraph are—

• (a) any connecting period for the purposes of regulation 4;

• (b) any period of not more than 12 weeks falling between—

• (i) two periods of entitlement to a qualifying benefit;

• (ii) two connecting periods;

• (iii) a connecting period and a period of entitlement to a qualifying benefit;

• (c) any period—

• (i) in respect of which a person is summoned for jury service and is required to attend court; and

• (ii) which immediately follows a day of entitlement to a qualifying benefit and is immediately followed by a day of entitlement to a qualifying benefit.

• (4) A period of entitlement to a qualifying benefit which would, but for this paragraph, have continued shall end—

• (a) where the applicant satisfies the work condition and claims a bonus, on the last day of entitlement to a qualifying benefit which precedes the day on which he first satisfies those requirements;

• (b) where the applicant satisfies the condition in regulation 7(4) or (5) (requirements for a bonus) and claims a bonus, on the last day of entitlement to a qualifying benefit which precedes the day on which he first satisfies that condition;

• (c) where a bonus is paid in anticipation of an applicant satisfying either of the conditions specified in regulation 7(4)(b) or the condition specified in regulation 7(5)(c), but the applicant then fails to satisfy the relevant condition, on the last day taken into account in determining the award of the qualifying benefit in respect of which the bonus is paid;

• (d) where a bonus is paid in anticipation of an applicant or his partner satisfying the work condition, but the work condition is then not satisfied, on the last day taken into account in determining the award of the qualifying benefit in respect of which the bonus is paid;

• (e) where the person dies, on the date of his death.

Period of entitlement to a qualifying benefit: further provisions

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• (1) Any day falling within a period during which a jobseeker’s allowance is not payable in accordance with section 19 or in accordance with section 62 or 63 of the Child Support, Pensions and Social Security Act 2000 or section 7, 8 or 9 of the Social Security Fraud Act 2001 (loss of benefit provisions) shall be treated as a day of entitlement to a qualifying benefit only if and for so long as the claimant complies with the requirements as to attendance and the provision of information and evidence contained in regulations made in accordance with section 8(1).

• (2) Any day falling within a period during which a jobseeker’s allowance is not payable by virtue of section 4(1) solely because of deductions in respect of pension payments shall be treated as a day of entitlement to a qualifying benefit only if and for so long as the claimant complies with requirements as to attendance contained in regulations made in accordance with section 8(1) for the purpose of obtaining any credit in accordance with section 22(5) of the Benefits Act.

• (3) Except as provided in paragraphs (1) and (2), no day falling within a period in which a person has an entitlement to a qualifying benefit but—

• (a) no benefit is payable; or

• (b) the weekly amount of benefit which is payable is less than 10p or in the case of a person to whom section 14 (trade disputes) applies, £5,

shall be treated as a day of entitlement to a qualifying benefit.

• (4) Paragraph (5) applies in the case of a person (“the recipient") who has not been entitled to a qualifying benefit, but—

• (a) was the partner of a person who has died and that person was entitled to a qualifying benefit other than a contribution-based jobseeker’s allowance immediately before his death; or

• (b) has separated from a partner who at the date of separation had been entitled to a qualifying benefit other than a contribution-based jobseeker’s allowance; or

• (c) is one of a couple whose partner has been entitled to a qualifying benefit other than a contribution-based jobseeker’s allowance but where entitlement for the qualifying benefit ceased to be that of the partner and became instead that of the recipient.

• (5) Where this paragraph applies and paragraph (6) is satisfied in the case of a recipient to whom paragraph (4) applies, the period of entitlement to a qualifying benefit established by the recipient’s partner shall be treated as if it had also been established by the recipient.

• (6) In the case of a recipient to whom paragraph (4) refers, paragraph (5) applies only where the recipient is entitled to a qualifying benefit within 12 weeks of the date on which—

• (a) the partner died; or

• (b) the couple separated; or

• (c) in the case of a polygamous marriage, one or more members of the marriage separated; or

• (d) where paragraph (4)(c) applies, the partner’s entitlement to the qualifying benefit ceased.

Connecting period

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• (1) Subject to the following provisions of this regulation, a connecting period arises where—

• (a) within 12 weeks of a person ceasing to be entitled to a qualifying benefit he attends training, except where the person enters into a contract of service with the provider of the training, and lasts throughout the period of training;

• (b) within 12 weeks of a person ceasing to be entitled to a qualifying benefit a maternity allowance becomes payable, and lasts throughout the period maternity allowance is payable to the person;

• (c) a person ceases to be entitled to a qualifying benefit and in respect of the whole or part of the period of 12 weeks immediately following the day he ceases to be entitled, he becomes entitled (“the new entitlement") to any one of the following benefits—

• (i) incapacity benefit;

• (ii) severe disablement allowance; or

• (iii) carer’s allowance,

and the connecting period lasts until the new entitlement ends or until the expiration of a period of 2 years from the date in respect of which the new entitlement began, whichever is the earlier;

• (d) a person ceases to be entitled to one of the benefits mentioned in sub-paragraph (c) above and in respect of the whole or part of the period of 12 weeks immediately following the day he ceases to be so entitled, he becomes entitled to the same or another of those benefits, and the connecting period lasts until the end of the period of entitlement to that benefit or until the expiration of the period of 2 years from the day in respect of which the new entitlement mentioned in sub-paragraph (c) began, whichever is the earlier; or

• (e) a person who is treated under paragraph (4) of regulation 3 as having established a period of entitlement to a qualifying benefit under paragraph (5) of the same regulation satisfies the preceding sub-paragraphs of this paragraph within 12 weeks of the date which applies in his case in accordance with paragraph (6) of regulation 3, and lasts throughout the period the person satisfies the preceding sub-paragraphs of this paragraph.

• (2) Notwithstanding paragraph (1)(d) where two periods of incapacity for work within the meaning of section 30C(1) of the Benefits Act are separated by a period of more than 8 weeks, the second of those periods is only a connecting period where, in the weeks between the two periods of incapacity for work, the person was entitled to a qualifying benefit which ceased with the onset of the second of those periods of incapacity for work.

• (3) In any relevant period, only one connecting period which arises in accordance with paragraph (1)(c) or (d) shall apply in any particular case, and for this purpose, a “relevant period" is the period which falls between periods of entitlement to a qualifying benefit.

• (4) For the purposes of paragraph (1)(d) any part of the period of up to 12 weeks mentioned in that sub-paragraph in which the person was not entitled to one of the benefits to which paragraph (1)(c) refers shall be disregarded in determining the period of 2 years.

Periods of entitlement which do not qualify

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• (1) The periods specified in paragraph (4) shall be treated for the purposes of these Regulations as periods in which a person is not entitled to a qualifying benefit.

• (2) Any earnings in any benefit week in a period specified in paragraph (4) shall not be taken into account in determining —

• (a) whether a person has earnings from employment; or

• (b) the amount of those earnings.

• (3) Paragraph (2)—

• (a) shall not apply where during a benefit week there are days of entitlement to a qualifying benefit;and

• (b) the formula set out in regulation 8(1)(c) shall apply to any earnings in the benefit week in which those days fall, except that “N" shall represent the number of days of entitlement to the qualifying benefit.

• (4) The periods specified in this paragraph are any period during which—

• (a) interim payments were made to the person in accordance with regulation 2 of the Social Security (Payments on Account, Overpayments and Recovery) Regulations 1988 and in respect of which no award of a qualifying benefit was subsequently made to him;

• (b) subject to paragraph (5), the person’s applicable amount is determined in accordance with Part VI of the Income Support Regulations (urgent cases) or with Part X of the Jobseeker’s Allowance Regulations (urgent cases); or

• (c) the person is entitled to a jobseeker’s allowance in accordance with Part IX of the Jobseeker’s Allowance Regulations (hardship) because —

• (i) he fails to satisfy any one or more of the conditions specified in section 1(2)(a) to (c) (availability for and actively seeking employment); or

• (ii) subject to paragraph (6), he has submitted a claim for a jobseeker’s allowance but the Secretary of State has not determined whether those conditions are satisfied.

• (5) Paragraph (4)(b) shall not apply in the case of a person to whom—

• (a) regulation 70(2)(a) of the Income Support Regulations (certain persons from abroad); or

• (b) regulation 147(2)(a) of the Jobseeker’s Allowance Regulations (certain persons from abroad), applies.

• (6) Paragraph (4)(c)(ii) shall not apply to any period in respect of which the claim for a jobseeker’s allowance is determined by the Secretary of State in the claimant’s favour.

Waiting period

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• (1) A person shall not be entitled to a bonus unless he has served or is treated as having served a waiting period.

• (2) A waiting period is the period comprising the first 91 days in a period of entitlement to a qualifying benefit in which the claim for the bonus is made or which precedes a claim made in accordance with regulation 22(1)(b).

Requirements for a bonus

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• (1) An applicant who has served, or is treated as having served, a waiting period shall be entitled to a bonus where he satisfies any one of the conditions set out in paragraphs (2) to (5).

• (2) The first condition is that—

• (a) he or his partner has or had earnings of which a part only has been disregarded in determining the amount of those earnings for the purposes of a qualifying benefit;

• (b) he or his partner takes up or returns to or increases the number of hours in which in any week he or his partner is engaged in employment or the earnings from an employment in which he or his partner is engaged are increased (“the work condition"), and—

• (i) that employment results; or

• (ii) those earnings result; or

• (iii) the increase in the number of hours and an increase in earnings together result, in entitlement to a qualifying benefit (other than a partner’s entitlement to a contribution-based jobseeker’s allowance) in respect of himself, and where he has a partner, his family, ceasing;

• (c) he claims the bonus before the end of a period of 12 weeks immediately following the day in respect of which entitlement to the qualifying benefit ceased as mentioned in sub-paragraph (b); and

• (d) in a case where the qualifying benefit to which the applicant was entitled—

• (i) was income support, he has not attained the day before the age of 60; or

• (ii) was a jobseeker’s allowance, he has not attained the day before pensionable age,