Alex is entitled to income-related Employment and Support Allowance. He has a mortgage protection policy that pays £50 a week. the terms of the mortgage protection policy payments must be made direct to the building society. The money is used to meet Alex’s mortgage repayments. Alex’s applicable amount includes £25 a week for mortgage interest. The decision maker treats Alex as having income of £25 a week. The balance of £25 is ignored. Payments made direct to a third party when the claimant could receive the income direct 51143 Where a claimant received housing costs within their award as in DMG 51141 2.2 then the decision maker should treat any payments made direct to a third party as the claimant's income from the date the claimant could expect to get the income1 if 1. an application was made and 2. the claimant could successfully apply to receive the income direct. This notional income should be treated as if it is actually received by the claimant2. 1 ESA Regs (NI), reg 106(2); 2 reg 109(1) How should the decision maker decide when the claimant could expect to get the income 51144 The decision maker should calculate the date the claimant could expect to receive the income by 1. assuming that an application was made on the date the decision maker first becomes aware of the possible income and 2. adding the estimated time it would take for an application to be processed. Payments made direct to the claimant If the claimant 1. receives payments or 2. is treated as receiving payments for housing costs direct the decision maker should decide if the income comes from a mortgage protection policy. 51146 [See DMG Memo Vols 4/143, 5/110, 6/93, 8/91 & 9/42] Where a payment is made from a mortgage protection policy the decision maker must decide how much of the payment is for a qualifying loan. The decision maker must then decide under what
Memo Vols 4/140, 5/107, 8/88, 9/39, 13/70 & 14/64] Disregard the payment to the third party1 1. whatever it is used for, if it is made from 1.1 the Macfarlane Trusts or 1.2 the Eileen Trust or 1.3 MFET Limited or 1.4 the Fund or 1.5 the Independent Living Fund (2006) or 1.6 the Skipton Fund or 1.7 the Caxton Foundation or 1.8 the Scottish Infected Blood Support Scheme or 1.9 the London Emergencies Trust or 1.10 the We Love Manchester Emergency Fund or 1.11 Infected Blood Schemes 2. if it is for the purchase and supply of concessionary coal under specified legislation2. The Department of , Trade and Investment is now responsible for the purchase and supply of concessionary coal. Coal is purchased through contracts and supplied to ex-coal workers and their families. The payment from the Department of Enterprise, Trade and Investment to the contractor is a payment to a third party and is disregarded. Note : The Independent Living Fund (2006) closed on 30.6.15 with some funding responsibilities transferring to Local Authorities in England, the Welsh Independent Living Grant in Wales and the Independent Living Fund Scotland for Northern Ireland and Scotland. Please contact Decision Making Services if a claimant receives funding from any of these replacement schemes. 1 ESA Regs (NI), reg 107(5)(a); 2 The Coal Industry Act 94, sec 19(1)(a); ESA Regs (NI), reg 107(5)(b) Meaning of ordinary clothing or footwear 51599 The expression “ordinary clothing or footwear”1 means clothing or footwear for normal daily use. It does not include 1. school uniforms or 2. clothing or footwear used solely for sport, for example football boots. 1 ESA Regs (NI), reg 2(1)
C = the weekly amount of the periodical payment. Any fraction has to be treated as a fraction of a week3. 1 ESA Regs (NI), reg 123(5); 2 reg 123(10); 3 reg 123(9) Example has an applicable amount of £65.45 but receives income-related Employment and Support Allowance of £40.45 a week because she is in receipt of a periodical liable relative payment of £25 a week. She receives a non-periodical liable relative payment of £500 in addition to the periodical liable relative payment of £25 a week. The decision maker decides that the periodical payment of £25 is less than £67.45 (the total of £2 + £65.45). The decision maker then has to determine the period for which the additional payment of £500 is to be taken into account. The decision maker applies the formula in DMG 51747 where A = £500 B = £67.45 (£2 + £65.45) C = £25 This gives an answer of 11.77 (£500 ÷ (£67.45 - £25)). The decision maker takes the payment into account for 11 weeks at £42.45 and 1 week at £33.05. The weekly amount of the payment in addition to the periodical liable relative payment ends Marie’s entitlement to Employment and Support Allowance. The weekly amount of the non-periodical payment The weekly amount of the non-periodical payment is equal to the divisor used to calculate the period for which it is taken into account1. This will be the total of 1. £2 and the amount of income-related Employment and Support Allowance which would have been paid had the periodical payment not been made less 2. the weekly amount of the periodical payment in payment. 1 ESA Regs (NI), reg 124(5) When should the decision maker start taking a non-periodical payment into account 51749 The period during which the non-periodical payment should be taken into account should begin on the date the payment is treated as paid1. 1 ESA Regs (NI), reg 123(8)
Student loan 51825 A student loan1 is a loan made for a student’s maintenance under specific law2. The Student Loan Company administers student loans. 1 ESA Regs (NI), reg 131; 2 Support (NI) 98, art 3; Teaching & Higher Education Act 98, sec 22; ED (Scot) Act 80, sec 73(f), 73B & 74 Grant 51826 Grant means1 any kind of educational grant or award and includes any 1. scholarship 2. studentship 3. exhibition 4. allowance 5. bursary. Decision makers should note that it does not include any payment derived from access or any payment of education maintenance allowance. 1 ESA Regs (NI), reg 131 Access funds 51827 Access funds are grants, loans or other payments made under specific law1 that are paid on a discretionary basis to assist students in financial difficulties2. 1 Education and Libraries (Northern Ireland) Order 1993, art 30; Further Education (Northern Ireland) Order 1997, art 5; F & HE Act 92, sec 68; Ed (Scot) Act 80, sec 73(a), (c) & sec 74(1); 2 ESA Regs (NI), reg 131 [See DMG Memo Vol 1/74, 2/17, 4/89, 5/76, 6/60, 8/15, 9/6 & 14/40] 51828 Access funds also include in - ‘Learner Support Funds’ which may be made available to students under specific law1. For those in further education they are paid out of funds provided by the Secretary of State for Education, the Chief Executive of Skills Funding for England2 in - ‘Financial Contingency Funds’ made available by the National Assembly for Wales2. 1 L & S Act 2000, sec 5, 6 & 9; 2 ESA Regs (NI), reg 131 Note : Access funds do not include Assembly Learning Grants. Financial Contingency Funds are made available to prevent the financial hardship of students who are not eligible for an Assembly Learning Grant. 51829 - 51830