Explanatory note

(This note is not part of the Regulations)

These Regulations make amendments to the Disability Working Allowance (General) Regulations 1991 (S.I. 1991/2887) and further amendments to the Family Credit (General) Regulations 1987 (S.I. 1987/1973) and the Income Support (General) Regulations 1987 (S.I. 1987/1967). In particular, they—

(a)

provide for the calculation of the amount to be deducted in respect of income tax in relation to a claimant’s earnings to include the lower rate of income tax and define “lower rate” (regulations 2, 4, 6, 8, 9, 12, 17 and 18, and paragraphs 4, 7, and 8 of the Schedule);

(b)

amend the definition of “advanced education” in the provisions relating to relevant education and to students (regulations 10, 14 and 19, and paragraph 12 of the Schedule);

With respect to the Disability Working Allowance (General) Regulations 1991, they—

(a)

provide a definition of the expression “training allowance” (regulation 2); and

(b)

make a number of minor drafting changes (regulation 3 and the Schedule);

With respect to the Family Credit (General) Regulations 1987, they—

(a)

amend the provisions for calculating the estimated earnings of self-employed earners (regulation 5) by deleting the reference to “other evidence” in regulation 15(2);

(b)

make minor amendments to certain provisions (regulations 7 and 11) relating to the method of calculating bonus or commission and to the applicable amount;

With respect to the Income Support (General) Regulations 1987, they—

(a)

provide that foster parents are not to be treated as in remunerative work solely because they receive payments for fostering a child (regulation 13);

(b)

further define the circumstances in which payments in respect of certain types of accommodation are included in applicable amounts (regulation 15);

(c)

provide that specified payments to foster parents are not to be treated as earnings (regulation 16);

(d)

make minor drafting changes to regulation 62 which relates to the calculation of grant income (regulation 20);

(e)

amend the provisions for calculating the income of a non-dependant by providing a disregard of certain payments (regulation 21).