Income-related purpose

Payments, capital payments or the value of credits or services received periodically that are made and used for an income-related purpose, are considered to be income.

A payment would be deemed as being used for an income-related purpose if it is:

• replacing lost or diminished income
  For example, a client receives payments from an income-related insurance policy to cover loss of employment or a client receives payment from a family member because the client has no income.

or

• maintaining a client or a member of their family
  For example, the payment is for the provision of essential living costs such as rent, food, power and clothing.

or

• purchasing goods or services (commonly paid for from income) for the client or a member of their family or
• enabling the client to make payments that they are liable to make and that are commonly made from income

Examples of the last 2 points are payments made to pay hire purchase accounts, insurance payments, payment of fines or Child Support payments.