Unearned income that is ignored as income
The following items of unearned income are completely ignored and
should not be entered. This is an exhaustive list:
- Any payment of expenses to a someone engaged in charitable or
voluntary work, provided that they are not otherwise treated as working
for that employer and are not treated as having a notional income from
that source
- Any payment of expenses to an employee if they are regarded as
wholly, exclusively and necessary incurred in that employment (i.e. not
taxable)
- Any payments to holders of the George Cross or Victoria Cross
- Any educational maintenance award or equivalent
- Any travelling expenses, living away from home allowances, or
training premium paid to those on YT or employment rehabilitation centre
courses or under section 2(4)(c) of the Enterprise and New Towns
(Scotland) Act 1990
- Any income derived from capital; unless it comes from capital
sources which are ignored because they are from: certain classes of
property, premises, business assets or personal injury trusts. Even
income from some of these sources can be ignored if it is used to pay
off mortgages, business rates or standard council tax on the property or
premises from which the income is derived
- A proportion of an annuity from a home income plan taken out by
those over 65
- Any payment made to the relevant person by a child, young person or
non-dependant
- Any income in kind
- Any income payable abroad which cannot be brought to this
country
- Any payment of an adoption allowance under Section 50(4) of the
Adoption Act 1958 or of a contribution by a local authority under
Section 34(6) or 50 of the Children Act 1975 in respect of a child who
has over
£5,000 capital, and, for those who do not, that
portion of the allowance which exceeds the personal allowance and
disabled child premium, if any, payable in respect of that child
- Any fostering payment to foster parents is ignored as their income
provided it is made by a local authority under section 21(1)(a) of the
Child Care Act 1980 or by a voluntary organisation under section 61 of
that Act
- Any payments under section 1, 27 or 29 of the Child Care Act
1980
- Any payment to the relevant person made by a health authority, local
authority or voluntary organisation for caring for someone temporarily
who does not normally live with them
- Payments under a mortgage protection policy, provided that they do
not exceed the amount owed in mortgage payments
- The costs of converting income paid in other currencies into
sterling
- Any payment from any of the Macfarlane Trusts, or the Independent
Living Fund, including payments to sufferers from haemophilia and their
dependants
- Any payment from the London Bombings Relief Charitable Fund
- Any payment to a juror or witness for attendance at court, apart
from payments for loss of earnings or loss of benefits
- Any NHS travelling expenses, welfare foods payments or prison
visiting payments
- A Sports Award, made by a Sports Council
- Pension payments to a third party provided that the third
party is a trustee in bankruptcy or other person acting on behalf of
creditors or where a bankruptcy or sequestration order has been made.
Where this is not the case, the pension counts as income.
- Subsistence allowances and discretionary payments made to
participants in employment zone programmes (established under section 60
of the Welfare Reform and Pensions Act 1999).
- Grants for meals for dependent children - made under regulations of
the Education (Student Support) (Northern Ireland) Order 1998.
- Retired pay or a pension under the Naval, Military and Air Forces
etc. (Disablement and Death) Service Pensions Order 2006, provided the
retired pay or pension is in respect of disablement of at least 80% and
constant attendance allowance (CAA) is in receipt. Both the pay/pension
and the CAA is disregarded in full in these circumstances.
- Any guaranteed income payment payable under the Armed Forces and
Reserve Forces (Compensation Scheme) Order 2005 where the payment
relates to an injury that falls within any of levels 1 to 6 of the
tariff set out in that Order.
- Any payments under the Community Care (Direct Payments) Act
Housing Renewal Grant Regs 96 Sched 3