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The Tax Credits (New Deal Consequential Amendments) Regulations 2001

S.I. 2001/1334 · Made 3 April 2001

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

SOCIAL SECURITY

TAXES

Made 3rd April 2001

Laid before Parliament 3rd April 2001

Coming into force 24th April 2001

The Treasury, in exercise of the powers conferred upon them by sections 123(1)(b) and (c), 136(3) and (5)(a), (b) and (c), 137(1) and (2)(d) and 175(1), (3) and (4) of the Social Security Contributions and Benefits Act 1992f1, and of all other powers enabling them in that behalf, hereby make the following Regulations:

Annotations to the whole text

Footnotes

f1

1992 c. 4. Section 123(1)(b) and (c) was amended by paragraphs 1 and 2(f) of Schedule 1 to the Tax Credits Act 1999 (c. 10). Section 137(1) is cited because of the meaning given to the word “prescribe”. Section 137(2)(d) was substituted by paragraph 35 of Schedule 2 to the Jobseekers Act 1995 (c. 18).

Contents

  1. 1Citation and commencement
  2. 2Interpretation
  3. 3Amendments to the Disability Working Allowance Regulations and the Family Credit Regulations
  4. 4Interpretation
  5. 5Remunerative work
  6. 6Notional income
  7. 7Notional capital
  8. 8Income to be disregarded
  9. 9Capital to be disregarded
  10. Signature
  11. Explanatory note

1Citation and commencement

These Regulations may be cited as the Tax Credits (New Deal Consequential Amendments) Regulations 2001 and shall come into force on 24th April 2001.

2Interpretation

In these Regulations—

  • “the Disability Working Allowance Regulations” means the Disability Working Allowance (General) Regulations 1991f1;

  • “the Family Credit Regulations” means the Family Credit (General) Regulations 1987f2.

3Amendments to the Disability Working Allowance Regulations and the Family Credit Regulations

Amend the Disability Working Allowance Regulations and the Family Credit Regulations as follows.

4Interpretation

In regulation 2(1) of the Disability Working Allowance Regulations and regulation 2(1) of the Family Credit Regulations—

(a)

after the definition of “extra statutory maternity pay”f1 insert the following definition—

  • ““Intensive Activity Period for 50 plus” means the programme known by that name and provided in pursuance of arrangements made by or on behalf of the Secretary of State under section 2 of the Employment and Training Act 1973f2, being a programme lasting for up to 52 weeks for any one individual aged 50 years or over on the day that he or she first joined any such programme, and consisting for that individual of any one or more of the following elements, namely assistance in pursuing self-employed earner’s employment, education and training, work experience, assistance with job search, motivation and skills training”.

(b)

after the definition of “net profit” insert the following definition—

  • ““New Deal option” means any of the employment programmes specified in regulation 75(1)(a)(ii) of the Jobseeker’s Allowance Regulations 1996f3 and the training scheme specified in regulation 75(1)(b)(ii) of those Regulations;”;

(c)

after the definition of “self-employed earner” insert the following definition—

  • ““self-employment route” means—

    1. (a)

      that part of the Employment Option of the New Deal which is specified in regulation 75(1)(a)(ii)(aa)(ii) of the Jobseeker’s Allowance Regulations 1996; or

    2. (b)

      assistance in pursuing self-employed earner’s employment while participating in—

      1. (i)

        an employment zone programme; or

      2. (ii)

        a course of training or instruction funded by or on behalf of the Secretary of State for Education and Employment, the National Assembly for Wales, or the Scottish Enterprise or Highlands or Islands Enterprise; or

      3. (iii)

        the Intensive Activity Period specified in regulation 75(1)(a)(iv) of the Jobseeker’s Allowance Regulations 1996 or the Intensive Activity Period for 50 plus;”.

5Remunerative work

(1)

Amend regulation 6 of the Disability Working Allowance Regulations and regulation 4 of the Family Credit Regulations as follows.

(2)

In paragraph (3)f1 after the notionally inserted sub-paragraph (d)f2 insert the following paragraph—

“(da)

he is participating in the Intensive Activity Period specified in regulation 75(1)(a)(iv) of the Jobseeker’s Allowance Regulations 1996 or in the Intensive Activity Period for 50 plus;”.

6Notional income

(1)

Amend regulation 29 of the Disability Working Allowance Regulations and regulation 26 of the Family Credit Regulations as follows.

(2)

In paragraph (3A)f1 after paragraph (ii) of sub-paragraph (c) insert the following paragraph—

“(iia)

in the Intensive Activity Period specified in regulation 75(1)(a)(iv) of those Regulations or in the Intensive Activity Period for 50 plus; or”.

(3)

In paragraph (4) for the notionally substituted words “Subject to paragraph (4A), where”f2 substitute “Subject to paragraphs (4A) and (4B), where”.

(4)

In the notionally inserted paragraph (4A)f3 omit paragraph (i) of sub-paragraph (b).

(5)

After the notionally inserted paragraph (4A) insert the following paragraph—

“(4B)

Paragraph (4) shall not apply in a case where the service is performed in connection with the claimant’s participation in an employment or training programme in accordance with regulation 19(1)(q) of the Jobseeker’s Allowance Regulations 1996, other than where the service is performed in connection with the claimant’s participation in the Intensive Activity Period specified in regulation 75(1)(a)(iv) of those Regulations or in the Intensive Activity Period for 50 plus.”.

7Notional capital

(1)

Amend regulation 37 of the Disability Working Allowance Regulations and regulation 34 of the Family Credit Regulations as follows.

(2)

In paragraph (3A)f1 after paragraph (ii) of sub-paragraph (b) insert the following paragraph—

“(iia)

in the Intensive Activity Period specified in regulation 75(1)(a)(iv) of those Regulations or in the Intensive Activity Period for 50 plus; or”.

8Income to be disregarded

(1)

Amend Schedule 3 to the Disability Working Allowance Regulations (“Schedule 3”) and Schedule 2 to the Family Credit Regulations (“Schedule 2”) as follows.

(2)

For sub-paragraph (d) of paragraph 11 of Schedule 3 and of Schedule 2f1 substitute the following sub-paragraph—

“(d)

any child care expenses reimbursed to the claimant in respect of his participation in a New Deal option, in the Intensive Activity Period specified in regulation 75(1)(a)(iv) of the Jobseeker’s Allowance Regulations 1996 or in the Intensive Activity Period for 50 plus,”.

(3)

For paragraph 57 of Schedule 3f2 and paragraph 59 of Schedule 2f3 substitute the following paragraph—

  • “Any mandatory top-up payment made to a person pursuant to section 2 of the Employment and Training Act 1973 in respect of that person’s participation in—

    1. (a)

      the self-employment route;

    2. (b)

      an employment programme specified in—

      1. (i)

        regulation 75(1)(a)(ii)(bb) of the Jobseeker’s Allowance Regulations 1996 (Voluntary Sector Option of the New Deal);

      2. (ii)

        regulation 75(1)(a)(ii)(cc) of those Regulations (Environmental Task Force Option of the New Deal); or

    3. (c)

      the Intensive Activity Period specified in regulation 75(1)(a)(iv) of those Regulations or the Intensive Activity Period for 50 plus.”.

9Capital to be disregarded

(1)

Amend Schedule 4 to the Disability Working Allowance Regulations (“Schedule 4”) and Schedule 3 to the Family Credit Regulations (“Schedule 3”) as follows.

(2)

For paragraph 51 of Schedule 4f1 and paragraph 52 of Schedule 3f2 substitute the following paragraph—

  • “Any mandatory top-up payment made to a person pursuant to section 2 of the Employment and Training Act 1973 in respect of that person’s participation in—

    1. (a)

      the self-employment route;

    2. (b)

      an employment programme specified in—

      1. (i)

        regulation 75(1)(a)(ii)(bb) of the Jobseeker’s Allowance Regulations 1996 (Voluntary Sector Option of the New Deal);

      2. (ii)

        regulation 75(1)(a)(ii)(cc) of those Regulations (Environmental Task Force Option of the New Deal); or

    3. (c)

      the Intensive Activity Period specified in regulation 75(1)(a)(iv) of those Regulations or the Intensive Activity Period for 50 plus,

    but only for the period of 52 weeks from the date of receipt of the payment.”.

Signature

Dave Clelland

Greg Pope

Two of the Lords Commissioners of Her Majesty’s Treasury

3rd April 2001

Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Family Credit (General) Regulations 1987 (S.I. 1987/1973) and the Disability Working Allowance (General) Regulations 1991 (S.I. 1991/2887). The amendments are in consequence of the introduction by the Government from April 2001 of two new employment programmes known as the “Intensive Activity Period” (for persons aged between 25 and 50 years) and the “Intensive Activity Period for 50 plus” (for persons aged over 50).