# The Universal Credit (Transitional Provisions) Regulations 2013, Regulation 35: Loss of benefit penalties


(1) This regulation applies where—
(a) an award of universal credit is made to a person who was previously entitled to an existing benefit other than a tax credit (“the earlier award”);
(b) the person is an offender, within the meaning of the Social Security Fraud Act 2001 (“the 2001 Act”);
(c) at the time the earlier award terminated, payments were subject to a restriction under section 6B (Loss of benefit in case of conviction, penalty or caution for benefit offence), 7 (Repeated benefit fraud) or 8 (Effect of offence on joint-claim jobseeker’s allowance) of the 2001 Act; and
(d) the first date of entitlement to universal credit is during the period of one month beginning with the date on which the earlier award terminated.
(2) This regulation also applies where—
(a) an award of universal credit is made to a person who is an offender, within the meaning of the 2001 Act;
(b) another person who was the offender’s family member within the meaning of the 2001 Act was previously entitled to an existing benefit other than a tax credit (“the earlier award”);
(c) at the time the earlier award terminated, payments were subject to a restriction under section 9 (effect of offence on benefits for members of offender’s family) of the 2001 Act; and
(d) the first date of entitlement to universal credit is during the period of one month beginning with the date on which the earlier award terminated.
(3) Where this regulation applies—
(a) payments of universal credit to the person are to be reduced by an amount determined in accordance with paragraphs (4) and (5) in respect of each day which is included in the remainder of the disqualification period applicable to the offender under the Social Security (Loss of Benefit) Regulations 2001 (“the 2001 Regulations”); and
(b) any provision in regulations made under section 6B(5A)(a) or 7(2A)(a) of the 2001 Act, under which payments of universal credit would otherwise be reduced by a different amount, does not apply.
(4) The payment of universal credit is to be reduced by—
(a) an amount which is equal to the amount by which payments in respect of the earlier award were reduced in accordance with the 2001 Act and the 2001 Regulations immediately before termination of that award, multiplied by the relevant multiplication factor and divided by the number of days in the year; or
(b) such lesser amount as reduces a payment of universal credit to nil.
(5) The relevant multiplication factor is—
(a) where payments in respect of the existing benefit were made weekly, 52;
(b) where payments in respect of the existing benefit were made fortnightly, 26;
(c) where payments in respect of the existing benefit were made every four weeks, 13; and
(d) where payments in respect of the existing benefit were made monthly, 12.

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Source: https://www.legislation.gov.uk/ukdsi/2013/9780111531549/regulation/35 (the official version)
Page: https://openlegislation.uk/draft-universal-credit-transitional-provisions-regulations-2013/regulation-35
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.