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Further changes proposed for Employed Person's Allowance

Thu, 07 Jul 2022

Tynwald Members will be asked at this month’s sitting to approve alterations to rules around Employed Person’s Allowance (EPA), which will apply from 18 October 2022.

New rules were agreed by Tynwald in May 2019 and then due to come into effect in June 2020. Their introduction was postponed three times, with Tynwald approval, due to the effects of the coronavirus pandemic and its economic impact.

New proposed changes to the rules approved in 2019 involve the minimum number of hours that some couples with dependent children must work in order to qualify for EPA.

In summary:

• Couples whose youngest or only child is aged under 13 will have to work at least 32 hours a week. The minimum is currently 30 hours a week, and the changes agreed by Tynwald in May 2019 would have increased this to 35 hours a week. Members of the couple will now be able to share the hours between them in whatever combination they choose.

• Couples whose youngest or only child is aged 13 or over will have to work a minimum of 48 hours a week. The minimum is currently 30 hours a week, and the changes agreed by Tynwald in May 2019 would have increased this to 48 hours a week where the youngest or only child is aged 6 or over.

New requirements for lone parents will not change, and those whose youngest or only child is aged 13 or over will be required to work at least 24 hours a week (currently 16 hours) from 18 October 2022.

There would be exceptions to the new minimum work requirements in all these cases, for example, if an adult or child in the family is disabled, has been sick for at least 30 days, is at least six months pregnant or is receiving a bereavement support payment.

In certain circumstances, time spent in work-related training or education can be counted as if it is time spent working.

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