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Local Exchange Trading Systems

Volume 299: debated on Wednesday 30 July 1997

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To ask the Secretary of State for Social Security, pursuant to his answer on 26 June, Official Report, column 640, regarding the role of local exchange trading systems in areas of high employment, what are the benefit rules relating to the treatment of LETS; and if she will make a statement. [9906]

Benefits agencyContributions agencyInformation technology services agencyWar pensions agency
Pay bandNumber of staffPay bandNumber of staffPay bandNumber of staffPay bandNumber of staff
£6,943-£13,47458,762£7,150-£16,3002,779£8,261-£18,7111,394£7,217-£13,628872
£11,895-£ 18,05318,729£9,450-£22,3505,577£17,111-£27,711701£11,663-£18,321305
£15,147-£27,1182,721£15,650-£29,600540£26,211-£50,60799£15,986-£30,24642
£25,343-£58,377420£23,200-£54,30047£25,466-£50,9726
Child support agencyDSS headquartersIndependent statutory bodies
Pay rangeNumber of staffPay rangeNumber of staffPay rangeNumber of staff
£7,150-£11,3501,509£7,279-£l 1,759187£7,279-£l 1,759409
£9,050-£13,9005,007£9,222-£14,404342£9,222-£14,404457

Participation in a local exchange trading system scheme is regarded as work for the purposes of jobseeker's allowance and income support. The credits received are taken into account as actual earnings. Family credit, housing benefit and council tax benefit treat LETS credits in same way.Neither jobseeker's allowance nor income support are payable to people who work for, on average, 16 hours or more a week–24 hours for partners of people receiving income-based jobseeker's allowance or income support.Where a person spends less than 16 hours a week on LETS activities, the credits are taken into account as earnings subject to the appropriate disregard—normally £5 a week. Any expenses wholly and exclusively defrayed for the purposes of the LETS activity, together with an amount in respect of tax and national insurance contributions, can also be deducted from the earnings.People claiming unemployment-related benefits must also continue to satisfy the labour market requirements of being available for and actively seeking work. Under jobseeker's allowance, people must normally be available for a minimum of 40 hours a week, but can stipulate their own pattern of availability with the employment officer—within reasonable limits. For jobseekers participating in LETS, this means that they must either be prepared to give up the LETS work to take up a full-time job, or be able to move the LETS activities to avoid any conflict; or be available in accordance with a pattern of work which gives them reasonable prospects of securing employment, while avoiding conflict with their LETS activities.