Explanatory note

These Regulations amend the Housing Benefit Regulations 2006 (S.I. 2006/213) (the “Housing Benefit Regulations”), the Universal Credit Regulations 2013 (S.I. 2013/376) (the “Universal Credit Regulations”), the Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001 (S.I. 2001/1002) and the Universal Credit (Transitional Provisions) Regulations 2014 (S.I. 2014/1230). These Regulations make amendments in connection with the Welfare Reform and Work Act 2016 (“the 2016 Act”) and introduce new exemptions to the benefit cap.

Regulation 1 provides that the Regulations come into force on 7th November 2016. Where there is an existing award of universal credit on 7th November 2016, the regulations relating to universal credit have effect on that date if a claimant’s assessment period begins on that day and, if it does not, on the first day of a claimant’s next assessment period following 7th November 2016.

Regulation 2 amends the Housing Benefit Regulations by:

• substituting regulation 75B (determination of whether a benefit cap applies), which makes provision about when a local authority determines whether a benefit cap applies;

• inserting a new regulation 75CA (determination of the relevant amount), which sets out how the relevant amount is determined and defines when someone will be resident in Greater London. The relevant amount is the weekly level of the benefit cap that applies in housing benefit. Regulation 75CA sets out that the relevant amount is calculated by dividing the annual limit that applies to a claimant by 52 and rounding that amount to the nearest penny;

• introducing two new exemptions into regulation 75F (exception to the benefit cap: receipt of specified benefit) so that the benefit cap does not apply where the claimant, the claimant’s partner or a young person for whom the claimant or the claimant’s partner is responsible is entitled to carer’s allowance or guardian’s allowance; and

• making consequential amendments to regulation 75G (interpretation).

Regulation 3 makes similar amendments to the Universal Credit Regulations by:

• amending regulation 80 (manner of determining total entitlement to welfare benefits) so that, when determining entitlement to welfare benefits, no amount of housing benefit is to be included;

• inserting a new regulation 80A (relevant amount), which sets out how the relevant amount is determined. The relevant amount is the monthly level of the benefit cap that will be applied for universal credit. Regulation 80A sets out that the relevant amount is calculated by determining which annual limit applies to a claimant and dividing the annual limit that applies by 12. Regulation 80A also defines when a person is resident in Greater London;

• introducing three new exemptions into regulation 83(1) (exceptions - entitlement or receipt of certain benefits) so that the benefit cap does not apply where: a claimant or a young person for whom a claimant is responsible is entitled to carer’s allowance; the carer element is included in the award of universal credit; or a claimant is entitled to guardian’s allowance; and

• making consequential amendments to regulations 79 (circumstances where the benefit cap applies) and 81(3) (reduction of universal credit).

Regulation 4 makes a consequential amendment to regulation 8 (date from which a decision superseding an earlier decision takes effect) of the Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001.

Regulation 5 makes a consequential amendment to regulation 9 (treatment of ongoing entitlement to certain benefits: benefit cap) of the Universal Credit (Transitional Provisions) Regulations 2014.

An impact assessment has been produced and copies may be obtained from the Legislation Team in the Department for Work and Pensions, Caxton House, Tothill Street, London SW1 9NA or from: https://www.gov.uk/government/publications/welfare-reform-and-work-act-impact-assessment-for-the-benefit-cap.