§ Ms. ShortTo ask the Secretary of State for Social Security (1) what is the effect on the income support of participants in training courses run by local authorities or funded by the European social fund who receive financial help or help in kind towards their travel to training and meal costs; and if he will make a statement;
(2) what is the position of income support claimants who are participating in training courses funded by the European social fund or local authorities who receive equivalent payments as enjoyed by participants in employment training; what is the effect on their benefit entitlement if they receive (a) a training premium of £10 a week, (b) a cash payment equal to the person's earnings disregard in each week, (c) a cash payout equal to the person's earnings disregard for work done outside the training each week, (d) a training bonus of up to £200 at the end of training, (e) a charitable payment or training bonus at the end of their training or (f) their travelling expenses; and if he will make a statement.
§ Mrs. Gillian Shephard[holding answer 1 March 1990]: For income support purposes, the treatment of payments made to trainees who are not participating in arrangements for training made under section 2 of the Employment and Training Act 1973 will depend on 693W whether they are made on a contractual basis. Payments made on a contractual basis in respect of a weekly training premium, a weekly cash payment which is not a payment of earnings, and regular payments for meals and travel expenses will be taken fully into account as income. However, where these payments are made on a voluntary basis, the first £5 a week of the total amount is currently disregarded. From 9 April, this disregard will be increased to £10 a week, and voluntary payments which are intended and used for travel costs will be completely ignored. In addition, a payment of earnings from employment which is equal to the person's earnings disregard is ignored. Any charitable payment or training bonus (of whatever amount) paid on completion of a training course is treated as capital in the normal way and will not affect income support unless the payment brings the claimant's total capital to more than £3,000. Regular payments in kind are ignored.