S.I. No. 262/1991:

SOCIAL WELFARE (LONE PARENT'S ALLOWANCE AND OTHER ANALOGOUS PAYMENTS) (AMENDMENT) (NO. 2) REGULATIONS, 1991.

SOCIAL WELFARE (LONE PARENT'S ALLOWANCE AND OTHER ANALOGOUS PAYMENTS) (AMENDMENT) (NO. 2) REGULATIONS, 1991.

The Minister for Social Welfare, in exercise of the powers conferred on him by section 3 of the Social Welfare (Consolidation) Act, 1981 (No. 1 of 1981), by Rule 1A of the Third Schedule to that Act (inserted by section 35 of the Social Welfare Act, 1990 (No. 5 of 1990)) and by section 59 of the Social Welfare Act, 1991 (No. 7 of 1991), hereby makes the following Regulations:

1. (1) These Regulations may be cited as the Social Welfare (Lone Parent's Allowance and Other Analogous Payments) (Amendment) (No. 2) Regulations, 1991.

(2) These Regulations and the Social Welfare (Lone Parent's Allowance and Other Analogous Payments) Regulations, 1990 and 1991, shall be construed together as one and may be cited together as the Social Welfare (Lone Parent's Allowance and Other Analogous Payments) Regulations, 1990 to 1991.

2. In these Regulations--

"the Act" means the Social Welfare (Consolidation) Act, 1981 ;

"the Principal Regulations" means the Social Welfare (Lone Parent's Allowance and Other Analogous Payments) Regulations, 1990 ( S.I. No. 272 of 1990 ).

3. These Regulations shall come into operation on--

(a) the 17th day of October, 1991, in so far as they relate to deserted wife's allowance, prisoner's wife's allowance and lone parent's allowance (other than lone parent's allowance payable in respect of a widow or a widower), and

(b) the 18th day of October, 1991 in so far as they relate to widow's (non-contributory) pension and lone parent's allowance payable in respect of a widow or a widower.

4. The Principal Regulations are hereby amended by the insertion after article 16 of the following Part--

"PART III A

Exemption of Income Derived from the Sale of Claimant or Beneficiary's Principal Residence in Calculating Means.

Proceeds from the sale of claimant or beneficiary's principal residence to be disregarded in calculating means.

16A. (1) Subject to articles 16B and 16C of these Regulations, where a claimant or beneficiary sells his principal residence, the gross proceeds derived from the sale of that residence, subject to a maximum amount of £75,000, shall be disregarded in calculating the means of that claimant or beneficiary in accordance with the Rules contained in the Third Schedule to the Act.

(2) In this Part of these Regulations a reference to the gross proceeds derived from the sale of the principal residence of the claimant or beneficiary means--

(a) the agreed sale price of that residence, or

(b) where the claimant or beneficiary purchases alternative accommodation in accordance with article 16C of these Regulations, the difference between the agreed sale price of the former residence and the agreed purchase price of the replacement residence.

Conditions to be satisfied.

16B. The disregard in the calculation of means provided for in article 16A of these Regulations shall apply only to the gross proceeds derived from the sale of a dwelling-house or part of a dwelling-house which is, or has been occupied by the claimant or beneficiary as his principal residence, or land which he has for his own occupation and enjoyment with that residence as its gardens or grounds up to an area not exceeding one acre.

Circumstances in which exemption applies.

16C. The disregard in the calculation of, means provided for in article 16A of these Regulations shall apply only--

(a) where the claimant or beneficiary disposes of his principal residence for the purposes of--

(i) purchasing alternative accommodation which is or will be occupied by him as his only or main residence, or

(ii) funding the renting of alternative accommodation which is or will be occupied by him as his only or main residence, or

(iii) funding the payment of fees to a nursing home which has been registered in accordance with section 4 of the Health (Nursing Homes) Act, 1990 (No. 23 of 1990), and

(b) where--

(i) the sale of the principal residence of the claimant or beneficiary takes place on or after the commencement of these Reguations, and

(ii) the claimant or beneficiary has attained pensionable age at the date of sale.

(2) For the purposes of this article 'nursing home' has the meaning assigned to it by section 2 of the Health (Nursing Homes) Act, 1990 .".

5. Schedule A to the Principal Regulations is hereby amended by the insertion after the reference to section 194 of the Act of the following--

".

GIVEN under the Official Seal of the Minister for Social Welfare

this 14th day of October, 1991.

MICHAEL WOODS,

Minister for Social Welfare.

EXPLANATORY NOTE.

These Regulations provide that, where a recipient of widow's (non-contributory) pension, lone parent's allowance, deserted wife's allowance or prisoner's wife's allowance who is aged 66 years or over, sells his or her house, the money received from the sale of that house, up to a maximum amount of £75,000, will not be taken into account as means.

The Regulations also provide that the exemption will apply only in cases--

(a) where the pensioner sells his or her house and either--

--purchases alternative accommodation,

--rents alternative accommodation, or

--moves into a private nursing home, and

(b) where the pensioner sells his or her house after he or she has reached 66 years of age.

The exemption applies only in the case of pensioners who sell their houses on or after 18 October, 1991.