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The Universal Credit Regulations 2013

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2013, ISBN 9780111531938

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Draft Regulations laid before Parliament under section 43(3) of the Welfare Reform Act 2012, for approval by resolution of each House of Parliament

Social Security

Made ***

Coming into force 29th April 2013

The Secretary of State for Work and Pensions makes the following regulations in exercise of the powers conferred by sections 2(2), 4(2), (3), (5), (6) and (7), 5, 6(1)(a) and (3), 7(2) and (3), 8(3), 9(2) and (3), 10(2) to (5), 11(3) to (5), 12(1), (3) and (4), 14(5), 15(2), 17(3) and (4), 18(3) and (5), 19(2)(d), (3) and (4), 20(1), 22(2), 24(1), (5) and (6), 25, 26(2)(a), (6) and (8), 27(4), (5), (9), 28, 32(1), 37(3) to (7), 39(3)(a), 40, 96 and 97 of, and paragraphs 1, 4, 5 and 7 of Schedule 1 and paragraphs 2 and 3 of Schedule 5 to, the Welfare Reform Act 2012f1.

[A draft of these Regulations has been laid before Parliament in accordance with section 43(3) of the Welfare Reform Act 2012 and approved by a resolution of each House of Parliament.]

This instrument has not been referred to the Social Security Advisory Committee because it contains only regulations made by virtue of or consequential on Part 1 and sections 96 and 97 of, and Schedules 1 and 5 to, the Welfare Reform Act 2012 and is made before the end of the period of 6 months beginning with the coming into force of those provisionsf2.

Annotations to the whole text

Footnotes

f1

2012 c.5.

f2

See section 173(5) of the Social Security Administration Act 1992. The requirement to refer regulations to the Social Security Advisory Committee does not apply where regulations are contained in a statutory instrument made before the end of the period of six months beginning with the coming into force of the enactment under which the regulations were made.

Contents

  1. Part 1: INTRODUCTION
  2. 1Citation and commencement
  3. 2Interpretation
  4. The Benefit Unit
  5. 3Couples
  6. 4When a person is responsible for a child or qualifying young person
  7. 5Meaning of “qualifying young person”
  8. General
  9. 6Rounding
  10. Part 2: ENTITLEMENT
  11. 7Introduction
  12. Minimum age
  13. 8Cases where the minimum age is 16
  14. In Great Britain
  15. 9Persons treated as not being in Great Britain
  16. 10Crown servants and members of Her Majesty’s forces posted overseas
  17. 11Temporary absence from Great Britain
  18. Receiving education
  19. 12Meaning of “receiving education”
  20. 13Meaning of “undertaking a course”
  21. 14Exceptions to the requirement not to be receiving education
  22. Accepting a claimant commitment
  23. 15Claimant commitment – date and method of acceptance
  24. 16Claimant commitment – exceptions
  25. Financial conditions
  26. 17Minimum amount
  27. 18Capital limit
  28. Restrictions on entitlement
  29. 19Restrictions on entitlement – prisoners etc.
  30. Part 3: AWARDS
  31. 20Introduction
  32. 21Assessment periods
  33. 22Deduction of income and work allowance
  34. Part 4: ELEMENTS OF AN AWARD
  35. 23Introduction
  36. Responsibility for children or young persons
  37. 24The child element
  38. Housing costs
  39. 25The housing costs element
  40. 26Amount of the housing costs element – renters and owner-occupiers
  41. Particular needs or circumstances - capability for work
  42. 27Award to include LCW and LCWRA elements
  43. 28Period for which the LCW or LCWRA element is not to be included
  44. Particular needs or circumstances – carers
  45. 29Award to include the carer element
  46. 30Meaning of “regular and substantial caring responsibilities for a severely disabled person”
  47. Particular needs or circumstances - childcare costs
  48. 31Award to include childcare costs element
  49. 32The work condition
  50. 33The childcare costs condition
  51. 34Amount of childcare costs element
  52. 35Meaning of “relevant childcare”
  53. General
  54. 36Table showing amounts of elements
  55. 37Run-on after a death
  56. Part 5: CAPABILITY FOR WORK OR WORK-RELATED ACTIVITY
  57. 38Introduction
  58. 39Limited capability for work
  59. 40Limited capability for work and work-related activity
  60. Work Capability Assessment
  61. 41When an assessment may be carried out
  62. 42Assessment - supplementary
  63. 43Information requirement
  64. 44Medical examinations
  65. Part 6: CALCULATION OF CAPITAL AND INCOME
  66. Chapter 1: CAPITAL
  67. 45Introduction
  68. 46What is included in capital?
  69. 47Jointly held capital
  70. 48Capital disregarded
  71. 49Valuation of capital
  72. 50Notional capital
  73. Chapter 2: EARNED INCOME
  74. 51Introduction
  75. 52Meaning of “earned income”
  76. 53Meaning of other terms relating to earned income
  77. 54Calculation of earned income - general principles
  78. 55Employed earnings
  79. 56Employee involved in trade dispute
  80. 57Self-employed earnings
  81. 58Permitted expenses
  82. 59Flat rate deductions for mileage and use of home and adjustment for personal use of business premises
  83. 60Notional earned income
  84. 61Information for calculating earned income
  85. Gainful self-employment
  86. 62Minimum income floor
  87. 63Start-up period
  88. 64Meaning of “gainful self-employment”
  89. Chapter 3: UNEARNED INCOME
  90. 65Introduction
  91. 66What is included in unearned income?
  92. 67Meaning of “retirement pension income”
  93. 68Person treated as having student income
  94. 69Calculation of student income - student loans
  95. 70Calculation of student income - grants
  96. 71Calculation of student income - amount for an assessment period
  97. General
  98. 72Assumed yield from capital
  99. 73Unearned income calculated monthly
  100. 74Notional unearned income
  101. Chapter 4: MISCELLANEOUS
  102. 75Compensation for personal injury
  103. 76Special schemes for compensation etc.
  104. 77Company analogous to a partnership or one person business
  105. Part 7: THE BENEFIT CAP
  106. 78Introduction
  107. 79Circumstances where the benefit cap applies
  108. 80Manner of determining total entitlement to welfare benefits
  109. 81Reduction of universal credit
  110. 82Exceptions - earnings
  111. 83Exceptions - entitlement or receipt of certain benefits
  112. Part 8: CLAIMANT RESPONSIBILITIES
  113. Chapter 1: WORK-RELATED REQUIREMENTS
  114. Introductory
  115. 84Introduction
  116. 85Meaning of terms relating to carers
  117. 86Nomination of responsible carer and responsible foster parent
  118. 87References to paid work
  119. 88Expected hours
  120. Work-related groups
  121. 89Claimants subject to no work-related requirements
  122. 90Claimants subject to no work-related requirements - the earnings thresholds
  123. 91Claimants subject to work-focused interview requirement only
  124. 92Claimants subject to all work-related requirements - EEA jobseekers
  125. The work-related requirements
  126. 93Purposes of a work-focused interview
  127. 94Work search requirement - interviews
  128. 95Work search requirement - all reasonable action
  129. 96Work availability requirement - able and willing immediately to take up paid work
  130. 97Work search requirement and work availability requirement - limitations
  131. 98Victims of domestic violence
  132. 99Circumstances in which requirements must not be imposed
  133. Chapter 2: SANCTIONS
  134. 100Introduction
  135. Reduction periods
  136. 101General principles for calculating reduction periods
  137. 102Higher-level sanction
  138. 103Medium-level sanction
  139. 104Low-level sanction
  140. 105Lowest-level sanction
  141. When reduction to have effect
  142. 106Start of the reduction
  143. 107Reduction period to continue where award terminates
  144. 108Suspension of a reduction where fraud penalty applies
  145. 109When a reduction is to be terminated
  146. Amount of reduction
  147. 110Amount of reduction for each assessment period
  148. 111Daily reduction rate
  149. Miscellaneous
  150. 112Application of ESA or JSA sanctions to universal credit
  151. 113Failures for which no reduction is applied
  152. 114Sanctionable failures under section 26 - work placements
  153. Chapter 3: HARDSHIP
  154. 115Introduction
  155. 116Conditions for hardship payments
  156. 117The period of hardship payments
  157. 118The amount of hardship payments
  158. 119Recoverability of hardship payments
  159. Signature
  160. Schedule 1: Meaning of payments in respect of accommodation
  161. General
  162. 1Interpretation
  163. Rent payments
  164. 2Rent payments
  165. 3Payments excluded from being rent payments
  166. Owner-occupier payments
  167. 4Owner-occupier payments
  168. 5Meaning of “loan interest payments”
  169. 6Meaning of “alternative finance payments”
  170. Service charge payments
  171. 7Service charge payments
  172. 8Additional conditions: social rented sector renters and owner-occupiers
  173. Schedule 2: Claimant treated as liable or not liable to make payments
  174. Part 1: Treated as liable to make payments
  175. 1Certain other persons liable to make payments
  176. 2Failure to pay by the person who is liable
  177. 3Payments waived in return for repair work
  178. 4Rent free periods
  179. Part 2: Treated as not liable to make payments
  180. 5Liability to make rent and other payments to close relative
  181. 6Liability to make rent and other payments to company
  182. 7Liability to make rent and other payments to a trust
  183. 8Liability to make owner-occupier and other payments to member of same household
  184. 9Arrears of payments
  185. 10Contrived liability
  186. Schedule 3: Claimant treated as occupying or not occupying accommodation
  187. Part 1: Treated as occupying accommodation
  188. 1The occupation condition: the general rule
  189. 2Croft land included in accommodation
  190. 3Claimant living in other accommodation during essential repairs
  191. 4Claimant housed in two dwellings by provider of social housing
  192. 5Moving home: adaptations to new home for disabled person
  193. 6Claimant living in other accommodation because of reasonable fear of violence
  194. 7Moving in delayed by adaptations to accommodation to meet disablement needs
  195. 8Moving into accommodation following stay in hospital or care home
  196. Part 2: Treated as not occupying accommodation
  197. 9Periods of temporary absence exceeding 6 months
  198. Schedule 4: Housing costs element for renters
  199. Part 1: General
  200. 1Introduction
  201. 2Interpretation
  202. 3“Relevant payments” for purposes of this Schedule
  203. Part 2: Exception to inclusion of housing costs element
  204. 4No housing costs element for 16 or 17 year old care leavers
  205. Part 3: General provisions about calculation of amount of housing costs element for renters
  206. 5Application of Part 3
  207. Payments taken into account
  208. 6Relevant payments to be taken into account
  209. 7Relevant payments calculated monthly
  210. Room allocation
  211. 8Size criteria applicable to the extended benefit unit of all renters
  212. 9Extended benefit unit of a renter for purposes of this Schedule
  213. 10Number of bedrooms to which a renter is entitled
  214. 11Temporary absence of member of renter’s extended benefit unit
  215. 12Additional room where renter requires overnight care
  216. Housing cost contributions
  217. 13Housing cost contributions
  218. 14Amount of housing cost contributions
  219. 15Exempt renters
  220. 16No deduction for housing cost contributions in respect of certain non-dependants
  221. Calculations involving more than one accommodation
  222. 17Single calculation for renter treated as occupying single accommodation
  223. 18Calculation where move to new accommodation delayed for adaptations for disabled person
  224. 19Calculation where renter moves out because of reasonable fear of violence
  225. Part 4: Private rented sector and temporary accommodation
  226. 20Application of Part 4
  227. 21Meaning of “temporary accommodation”
  228. The calculation of the housing costs element under this Part
  229. 22The amount of housing costs element under this Part
  230. 23Core rent
  231. 24Core rent for joint tenants
  232. 25Cap rent
  233. Further provisions about size criteria for cases to which this Part applies
  234. 26Four bedroom limit
  235. 27Specified renters entitled to shared accommodation only
  236. 28Meaning of “specified renters”
  237. 29Renters excepted from shared accommodation
  238. Part 5: Social rented sector other than temporary accommodation
  239. 30Application of Part 5
  240. Reduction in certain cases of amounts to be taken into account
  241. 31Deduction from relevant payments of amounts relating to use of particular accommodation
  242. 32Power to apply to rent officer if relevant payments excessive
  243. The calculation of the housing costs element under this Part
  244. 33The amount of housing costs element
  245. 34Determining the amount from which HCC deductions are to be made
  246. 35Determining the amount from which HCC deductions are to be made: joint tenants
  247. 36Under-occupancy deduction
  248. Schedule 5: Housing costs element for owner-occupiers
  249. Part 1: General
  250. 1Introduction
  251. 2Interpretation
  252. 3“Relevant payments” for purposes of this Schedule
  253. Part 2: Exception to inclusion of housing costs element
  254. 4No housing costs element where owner-occupier has any earned income
  255. Part 3: No housing costs element for qualifying period
  256. 5No housing costs element under this Schedule for qualifying period
  257. 6Application of paragraph 5: receipt of JSA and ESA
  258. 7Application of paragraph 5: joint owner-occupiers ceasing to be a couple
  259. Part 4: Calculation of amount of housing costs element for owner-occupiers
  260. 8Payments to be taken into account
  261. 9The amount of housing costs element
  262. 10Amount in respect of interest on loans
  263. 11Amount in respect of alternative finance arrangements
  264. 12Standard rate to be applied under paragraphs 10 and 11
  265. 13Amount in respect of service charge payments
  266. Schedule 6: Assessment of whether a claimant has limited capability for work
  267. 1Physical Disabilities
  268. 2Mental, cognitive and intellectual function assessment
  269. Schedule 7Assessment of whether a claimant has limited capability for work and work-related activity
  270. Schedule 8: Circumstances in which a claimant is to be treated as having limited capability for work
  271. Receiving certain treatments
  272. 1Paragraph 1
  273. In hospital
  274. 2Paragraph 2
  275. Prevented from working by law
  276. 3Paragraph 3
  277. Risk to self or others
  278. 4Paragraph 4
  279. Life threatening disease
  280. 5Paragraph 5
  281. Disabled and over the age for state pension credit
  282. 6Paragraph 6
  283. Schedule 9: Circumstances in which a claimant is to be treated as having limited capability for work and work-related activity
  284. Terminal illness
  285. 1Paragraph 1
  286. Pregnancy
  287. 2Paragraph 2
  288. Receiving treatment for cancer
  289. 3Paragraph 3
  290. Risk to self or others
  291. 4Paragraph 4
  292. Disabled and over the age for state pension credit
  293. 5Paragraph 5
  294. Schedule 10: Capital to be disregarded
  295. Premises
  296. 1Paragraph 1
  297. 2Paragraph 2
  298. 3Paragraph 3
  299. 4Paragraph 4
  300. 5Paragraph 5
  301. 6Paragraph 6
  302. Business assets
  303. 7Paragraph 7
  304. 8Paragraph 8
  305. Rights in pensions schemes etc
  306. 9Paragraph 9
  307. 10Paragraph 10
  308. 11Paragraph 11
  309. Amounts earmarked for special purposes
  310. 12Paragraph 12
  311. 13Paragraph 13
  312. 14Paragraph 14
  313. 15Paragraph 15
  314. Other payments
  315. 16Paragraph 16
  316. 17Paragraph 17
  317. 18Paragraph 18
  318. 19Paragraph 19
  319. Schedule 11: Application of ESA or JSA sanctions to universal credit
  320. 1Moving an ESA sanction to UC
  321. 2Moving a JSA sanction to UC
  322. 3Effect of ESA or JSA sanction on escalation of UC sanction
  323. Explanatory note