Tax Credits Act 2002 Schedule 3 para 30

Long-term incapacity benefit for widows and widowers

Schedule 3 paragraph 30 amends the rules on long-term incapacity benefit for widows and widowers so that entitlement is linked to the new tax credits system rather than the old disability working allowance.

• When a widow or widower stops qualifying remunerative work and claims incapacity benefit under sections 40 or 41 of the Social Security Contributions and Benefits Act 1992, certain days may be treated as days of incapacity for work.
• Three conditions must be met: the day after ceasing work must itself be a day of incapacity, the person must have been entitled to incapacity benefit under the relevant section within the previous two years, and they must have satisfied the relevant tax credit conditions on the day before they stopped work.
• A person satisfies the relevant tax credit conditions on any given day if they are entitled to (or would be entitled to but for their income level) the disability element of working tax credit, whether claimed individually or jointly.
• In addition, either working tax credit or any element of child tax credit other than the family element must actually be paid in respect of that day on such a claim.

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