(1) For regulation 4 there shall be substituted the following regulation:—
Computation of disposable capital, disposable income and maximum contribution
(4)
(1) Subject to the provisions of these Regulations, the assessment officer shall—
(a) take into account the financial resources of the person concerned; and
(b) compute his income and capital in accordance with Schedules 2 and 3;
and, in these Regulations, “disposable income” and “disposable capital” mean the amounts of income and capital available for the making of a contribution after the person concerned’s income and capital have been computed in accordance with those Schedules.
(2) Subject to paragraph (3) below, legal aid shall be available to a person whose dis posable income does not exceed £6,350 a year but a person may be refused legal aid where—
(a) his disposable capital exceeds £6,310; and
(b) it appears to the Area Director that he could afford to proceed without legal aid.
(3) Where the subject matter of the dispute in respect of which the legal aid application has been made includes a claim in respect of personal injuries, legal aid shall be available to a person whose disposableincome does not exceed £7,000 a year but a person may be refused legal aid where—
(a) his disposable capital exceeds £8,000; and
(b) it appears to the Area Director that he could afford to proceed without legal aid.
(4) The maximum contribution which a person who desires to receive legal aid shall be liable to make is—
(a) where his disposable income exceeds £2,645 a year, a contribution in respect of disposable income not greater than on quarter of the excess;
(b) where his disposable capital exceeds £3,000, a contribution in respect of disposable capital not greater than the excess.
(5) In this regulation “personal injuries” includes any death and any disease or other impairment of a person’s physical or mental condition.
(2) Regulation 8 shall be omitted.
(3) In regulation 9 after the words “disposable capital” there shall be inserted the words “, whether for the purpose of making himself eligible for legal aid, reducing his liability to pay a contribution towards legal aid or otherwise”.
(4) In regulation 15(2) for the words “regulation 4(2) and (3)” there shall be substituted the words “regulation 4(2) to (4)”.
(5) In Schedule 2—
(a) after paragraph 4 there shall be inserted the following new paragraph—
(4A) In computing the income of the person concerned, there shall be deduted any sums payable (net of community charge benefit) by the person concerned in respect of the personal community charge to which he is subject by virtue of section 2 of the Local Government Finance Act 1988 ,
(b) in sub-paragraph (2) of paragraph 9 for the word “rates” there shall be substituted the words “any domestic rates and water and sewerage charges,”;
(c) in paragraph 5 for the words “regulation 4(3)(a)” there shall be substituted the words “regulation 4(4)(a)”;
(d) in paragraph 10 after the words “in the circumstances” there shall be inserted the words “including any net sum payable by him by way of contribution towards the community charge to which the person with a qualifying interest in such accommodation is subject by virtue of section 5 of the Local Government Finance Act 1988”
(e) in paragraph 11(1)(b)(i) and (ii) the words “for the time being” shall be omitted and after “(a)” and “(b)” respectively there shall be inserted the words “which applied at the beginning of the computation period”.
(6) In Schedule 3—
(a) in paragraph 7 for the words “regulation 4(3)(b)” there shall be substituted the words “regulation 4(4)(b)”;
(b) after paragraph 14 there shall be inserted the following new paragraph—
(14A)
(1) Where the person concerned is of pensionable age and his annual disposable income (excluding any net income derived from capital) than the figure for the time being prescribed in regulation there shall be disregarded the amount of capital as specified in the following table:—
(2) in this Schedule “pensionable age” means—
(a) in the case of a man, the age of 65; and
(b) in the case of a woman, the age of 60.
(c) after paragraph 14A of Schedule 3 there shall be inserted the following new paragraph—
(14B) In computing the amount of capital of the person concerned there shall be wholly disregarded any capital payment received from any source is made in relation to the incident giving rise to the dispute in respect of which the legal aid application has been made.