Explanatory note

These Regulations amend the Housing Benefit Regulations 2006 (S.I. 2006/213) (“the Housing Benefit Regulations”), the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 (S.I. 2006/214), the Council Tax Benefit Regulations 2006 (S.I. 2006/215) and the Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 (S.I. 2006/216).

Regulation 2(3) inserts a new provision, regulation 104A, into the Housing Benefit Regulations. This applies where there has been an overpayment of housing benefit in the form of a rent allowance because a claimant has moved out of the dwelling which he occupied as his home, to another dwelling which he occupies as his home. It only applies where housing benefit is payable to the same person, by the same local authority, in respect of both dwellings. In these cases, the amount of the overpayment which is recoverable is the difference between the amount of housing benefit overpaid in respect of the first property and the amount of housing benefit the claimant would have been entitled to in respect of the second property for the same period.

Regulation 2(2)(a) revokes paragraph (1A) of regulation 102 which makes provision for the recovery of an overpayment in the circumstances now included in the new regulation 104A. Regulation 2(2)(b) and (d) make consequential amendments to regulation 102.

Schedule 4 to the Housing Benefit Regulations sets out sums which are to be disregarded in the calculation of a person’s earnings for the purpose of determining their eligibility for housing benefit. Regulation 2(4) amends Schedule 4 to provide an additional earnings disregard where a claimant or their partner is in receipt of (or being awarded credits to protect their National Insurance record whilst claiming) a contributory employment and support allowance or incapacity benefit, or is in receipt of severe disablement allowance, and undertaking work which is classified as exempt work under regulation 45(2), (3) or (4) of the Employment and Support Allowance Regulations 2008 (S.I. 2008/794) or regulation 17(2), (3) or (4) of the Social Security (Incapacity for Work) (General) Regulations 1995 (S.I. 1995/311).

The level of the disregard is set at the same level as the amount of money they are permitted to earn through exempt work (currently £20 or £92 a week depending on the circumstances), unless they are entitled to a higher sum under the existing earnings disregard for a lone parent (currently £25 a week). Where a claimant or their partner is in receipt of income support, an income-based jobseeker’s allowance, an income-related employment and support allowance or the guarantee element of state pension credit, they will already have all their earnings disregarded under other provisions.

Where the claimant is part of a couple, the disregard is shared between them. So if one member of the couple earns less than the amount of the disregard, the earnings of the other may be disregarded to bring the total amount disregarded up to the appropriate level. However where one of them is not undertaking any exempt work, the amount of that person’s earnings which may be disregarded is subject to a maximum limit of £20.

Regulation 2(2)(c) makes an amendment consequential to the amendment of Schedule 4.

Regulation 3 makes equivalent amendments to the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 in respect of overpayments and the earnings disregard.

Regulations 4 and 5 make equivalent amendments to the Council Tax Benefit Regulations 2006 and the Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 in respect of the earnings disregard only. Regulation 5(4) makes a minor amendment to correct an error in numbering.

A full impact assessment has not been produced for this instrument as it has no impact on the private or voluntary sectors.