1 Citation, commencement and interpretation

(1)    These Regulations may be cited as the Social Security Amendment (Personal Injury Payments) Regulations 2002 and shall come into force on 28th October 2002.

(2)    In these Regulations—

“the Council Tax Benefit Regulations” means the Council Tax Benefit (General) Regulations 1992;

“the Housing Benefit Regulations” means the Housing Benefit (General) Regulations 1987;

“the Income Support Regulations” means the Income Support (General) Regulations 1987;

“the Jobseeker's Allowance Regulations” means the Jobseeker's Allowance Regulations 1996.

NOTES
Initial Commencement
Specified date

Specified date: 28 October 2002: see para (1) above.

Council Tax99 Tax Law99 Council Tax Benefit99

2 Capital treated as income

2Capital treated as income

There shall be added as—

(a)    regulation 25(5) of the Council Tax Benefit Regulations;

(b)    regulation 34(5) of the Housing Benefit Regulations;

(c)    regulation 41(7) of the Income Support Regulations;

(d)    regulation 104(6) of the Jobseeker's Allowance Regulations,

(which relate to capital treated as income), the following paragraph—

“Where an agreement or court order provides that payments shall be made to the claimant in consequence of any personal injury to the claimant and that such payments are to be made, wholly or partly, by way of periodical payments, any such periodical payments received by the claimant (but not a payment which is treated as capital by virtue of this Part), shall be treated as income.”.

NOTES
Initial Commencement
Specified date

Specified date: 28 October 2002: see reg 1(1).

3 Disregard of personal injury payments as income

3Disregard of personal injury payments as income

(1)    In each of the provisions specified in paragraph (2) below—

(a)    in sub-paragraph (1), for the words “charitable payment or of any voluntary payment” there shall be substituted the words “relevant payment”;

(b)    in sub-paragraph (2), for the words “charitable payment or voluntary payment” there shall be substituted the words “relevant payment”;

(c)    in sub-paragraph (4), for the words “charitable or voluntary payments” there shall be substituted the words “relevant payments”;

(d)    after sub-paragraph (5), there shall be added as sub-paragraph (6) in the provisions specified in paragraph (2)(a) and (b) below and as sub-paragraph (5A) in the provisions specified in paragraph (2)(c) and (d) below, the following sub-paragraph—

“In this paragraph, “relevant payment” means—

(a)    a charitable payment;

(b)    a voluntary payment;

(c)    a payment (not falling within sub-paragraph (a) or (b) above) from a trust whose funds are derived from a payment made in consequence of any personal injury to the claimant;

(d)    a payment under an annuity purchased—

(i)    pursuant to any agreement or court order to make payments to the claimant; or

(ii)    from funds derived from a payment made,

in consequence of any personal injury to the claimant; or

(e)    a payment (not falling within sub-paragraphs (a) to (d) above) received by virtue of any agreement or court order to make payments to the claimant in consequence of any personal injury to the claimant.”

(2)    The provisions specified for the purposes of paragraph (1) above (which relate to sums to be disregarded in the calculation of income other than earnings) are—

(a)    paragraph 13 of Schedule 4 to the Council Tax Benefit Regulations;

(b)    paragraph 13 of Schedule 4 to the Housing Benefit Regulations;

(c)    paragraph 15 of Schedule 9 to the Income Support Regulations;

(d)    paragraph 15 of Schedule 7 to the Jobseeker's Allowance Regulations.

NOTES
Initial Commencement
Specified date

Specified date: 28 October 2002: see reg 1(1).

Tort99 Personal Injury Litigation Procedure & Practice99 Personal Injuries Proceedings & Damages99 Personal Injury99 Claimant & Statements of Claim in Personal Injury99

Signature

Signed by authority of the Secretary of State for Work and Pensions

Ian McCartney

Minister of State,

Department for Work and Pensions

23rd September 2002

EXPLANATORY NOTE

EXPLANATORY NOTE (This note is not part of the Regulations)

These Regulations amend the Council Tax Benefit (General) Regulations 1992 (SI 1992/1814), the Housing Benefit (General) Regulations 1987 (SI 1987/1971), the Income Support (General) Regulations 1987 (SI 1987/1967) and the Jobseeker's Allowance Regulations 1996 (SI 1996/207).

In particular, regulation 2 requires periodical payments received by virtue of any agreement or court order to make personal injury payments to the claimant to be treated as income. Regulation 3 provides that payments of income received from all trusts whose funds derive from personal injury payments to a claimant, from an annuity purchased with such funds and those received by virtue of any agreement or court order to make personal injury payments to the claimant, are to be disregarded in their entirety when used for items other than everyday living expenses and £20 of such income disregarded when used for such expenses.

These Regulations do not impose any charge on business.