Citation, commencement and interpretation_I1

1.—(1) These Regulations may be cited as the Income Support (General) Amendment No. 2 Regulations 1989 and shall come into force as follows—

(a)regulations 1, 2 and 5(a)(iii), on 21st August 1989;

(b)regulations 3, 4, 5(a)(i) and (ii), (b) and (c) and 6 to 18, on 9th October 1989.

(2) In these Regulations “the General Regulations” means the Income Support (General) Regulations 1987(4).

Amendment of regulation 2 of the General Regulations_I2

2. In regulation 2 of the General Regulations (interpretation), in paragraph (1), in the definition of “training allowance”, after the words “full-time education” there shall be added the words “, other than under arrangements made under section 2 of the Employment and Training Act 1973(5),”.

Amendment of regulation 5 of the General Regulations_I3

3. In regulation 5 of the General Regulations (persons treated as engaged in remunerative work), in paragraph (5), for the reference “regulation 35(1)(b) to (d)” there shall be substituted the reference “regulation 35(1)(b) to (d) and (i)”.

Amendment of regulation 7 of the General Regulations

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Amendment of regulation 10 of the General Regulations

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Insertion of regulation 10A in the General Regulations

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Amendment of regulation 22 of the General Regulations

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Amendment of regulation 28 of the General Regulations_I4

8. In regulation 28 of the General Regulations (calculation of income), in paragraph (2), for the words from “regulations 41 to 43” to the end of that paragraph there shall be substituted the words “regulations 41 and 42 (capital treated as income and notional income).”.

Amendment of regulation 29 of the General Regulations_I5

9. In regulation 29 of the General Regulations (calculation of earnings derived from employed earner’s employment and income other than earnings)—

(a)in paragraph (2) for the reference “and (4A)” there shall be substituted the reference “and (4A) to (4D)”,

(b)for paragraph (4) there shall be substituted the following paragraph—

“(4)In a case to which paragraph (3) applies, earnings under regulation 35 (earnings of employed earners) shall be taken into account in the following order of priority—

(a)earnings normally derived from the employment;

(b)any payment to which paragraph (1)(b) or (c) of that regulation applies;

(c)any payment to which paragraph (1)(i) of that regulation applies;

(d)any payment to which paragraph (1)(d) of that regulation applies.”;

(c)after paragraph (4A) there shall be inserted the following paragraphs—

“(4B)Where earnings to which regulation 35(1)(i)(i) applies (earnings of employed earners) are paid in respect of or on the termination of any employment which is not part-time employment, the period over which they are to be taken into account shall be—

(a)a period equal to such number of weeks as is equal to the number (less any fraction of a whole number) obtained by dividing the net earnings by the maximum weekly amount which, on the date on which the payment of earnings is made, is specified in paragraph 8(1)(c) of Schedule 14 to the Employment Protection (Consolidation) Act 1978(6); or

(b)a period equal to the length of the specified period, whichever is the shorter, and that period shall begin on the date on which the payment is treated as paid under regulation 31 (date on which income is treated as paid).

(4C)Any earnings to which regulation 35(1)(i)(ii) applies which are paid in respect of or on the termination of part-time employment, shall be taken into account over a period equal to one week.

(4D)In this regulation—

(a)“part-time employment” means employment in which a person is not to be treated as engaged in remunerative work under regulation 5 or 6 (persons treated, or not treated, as engaged in remunerative work);

(b)“specified period” means a period equal to—

(i)the period of notice which is applicable to a person, or would have been applicable if it had not been waived; less

(ii)any part of that period during which the person has continued to work in the employment in question or in respect of which he has received a payment to which regulation 35(1)(c) applies, and for the purposes of this definition “period of notice” means the periodof notice of termination of employment to which a person is entitled by statute or by contract, whichever is the longer, or, if he is not entitled to such notice, the period of notice which is customary in the employment in question.”

Amendment of regulation 32 of the General Regulations_I6

1O. In regulation 32 of the General Regulations (calculation of weekly amount of income)—

(a)in paragraph (1) for the reference “paragraphs (2) to (5)” there shall be substituted the reference “paragraphs (2) to (7)”;

(b)after paragraph (6) there shall be added the following paragraph—

“(7)Where any payment of earnings is taken into account under paragraph (4C) of regulation 29 (calculation of earnings derived from employed earner’s employment and income other than earnings), over the period specified in that paragraph, the amount to be taken into account shall be equal to the amount of the payment.”.

Amendment of regulation 35 of the General Regulations_I7

11. In regulation 35 of the General Regulations (earnings of employed earners)—

(a)in paragraph (1)—

(i)for the words “Subject to paragraph (2)” there shall be substituted the words “Subject to paragraphs (2) and (3),”;

(ii)in sub-paragraph (c) the words from “or any lump sum” to the end of that sub-paragraph shall be omitted;

(iii)after sub-paragraph (h) there shall be added the following—

“(i)where—

(i)a payment of compensation is made in respect of employment which is not part-time employment and that payment is not less than the maximum weekly amount, the amount of the compensation less the deductible remainder, where that is applicable;

(ii)a payment of compensation is made in respect of employment which is part-time employment, the amount of the compensation.

(1A)For the purposes of paragraph (1)(i)(i) the “deductible remainder”—

(a)applies in cases where dividing the amount of the compensation by the maximum weekly amount produces a whole number plus a fraction; and

(b)is equal to the difference between—

(i)the amount of the compensation; and

(ii)the product of the maximum weekly amount multiplied by the whole number.”.

(b)after paragraph (2) there shall be added the following paragraph—

“(3)In this regulation—

(a)“compensation” means any payment made in respect of or on the termination of employment in a case where a person has not received or received only part of a payment in lieu of notice due or which would have been due to him had he not waived his right to receive it, other than—

(i)any payment specified in paragraph (1)(a) to (h);

(ii)any payment specified in paragraph (2)(a) to (d);

(iii)any redundancy payment within the meaning of section 81(1) of the Employment Protection (Consolidation) Act 1978, and

(iv)any refund of contributions to which that person was entitled under an occupational pension scheme within the meaning of section 66(1) of the Social Security Pensions Act 1975(7);

(b)“maximum weekly amount” means the maximum weekly amount which, on the date on which the payment of compensation is made, is specified in paragraph 8(1)(c) of Schedule 14 to the Employment Protection (Consolidation) Act 1978;

(c)“part-time employment” means employment in which a person is not to be treated as engaged in remunerative work under regulation 5 or 6 (persons treated, or not treated, as engaged in remunerative work).”.

Amendment of regulation 37 of the General Regulations_I8,I8,I9

12. In regulation 37 of the General Regulations (earnings of self-employed earners), in paragraph (2) the words from “except where the claimant” to the end of that paragraph shall be omitted.

13. In regulation 41 of the General Regulations (capital treated as income), after paragraph (4) there shall be added the following paragraph—

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

Revocation of regulation 43 of the General Regulations_I10

14.Regulation 43 of the General Regulations (notional earnings of seasonal workers) shall be revoked.

Amendment of regulation 48 of the General Regulations_I11

15. At the end of regulation 48 of the General Regulations (income treated as capital) there shall be added the following paragraph—

“(11)Any compensation within the meaning of regulation 35(3) (earnings of employed earners) which is made in respect of employment which is not part-time employment within the meaning of that regulation, to the extent that it is not earnings by virtue of regulation 35(1)(i)(i) shall be treated as capital.”.

Amendment of regulation 70 of the General Regulations_I12

16. In regulation 70 of the General Regulations (urgent cases)

(a)in paragraph (2), sub-paragraph (c) shall be omitted;

(b)in paragraph (4), for the words from “or (c) applies” to “(notional earnings of seasonal workers)” there shall be substituted the words “applies, where the income he is treated as possessing by virtue of regulation 42(3) (notional income)”.

Amendment of regulation 72 of the General Regulations_I13

17. In regulation 72 of the General Regulations (assessment of income and capital in urgent cases), in paragraph (1), sub-paragraph (e) shall be omitted.

Amendment of Schedule 8 to the General Regulations_I14

18. In Schedule 8 to the General Regulations (sums to be disregarded in the calculation of earnings) in paragraph 1(a)(ii) for the reference “(g) and (h)” there shall be substituted the reference “(g) to (i)”.