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Regulation 53 The transitional element - total legacy amountF1

(1)

The total legacy amount is the sum of the representative monthly rates of all awards of any existing benefits to which a claimant is, or joint claimants are, entitled on the migration day.

  • Tax credits

(2)

To calculate the representative monthly rate of an award of working tax credit or child tax credit—

(a)

take the figure for the daily rate of the award on the migration day provided by HMRC and calculated on the basis of the information as to the claimant’s circumstances held by HMRC on that day; and

(b)

convert to a monthly figure by multiplying by 365 and dividing by 12.

(3)

For the purposes of paragraph (2)(a) “the daily rate” is—

(a)

in a case where section 13(1) of the 2002 Act applies (relevant income does not exceed the income threshold or the claimant is entitled to a prescribed social security benefit), the maximum rate of each element to which the claimant is entitled on the migration day divided by 365; and

(b)

in any other case, the rate that would be produced by applying regulations 6 to 9 of the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002 as if the migration day were a relevant period of one day.

  • IS, JSA(IB) and ESA(IR)

(4)

To calculate the representative monthly rate of an award of income support, income-based jobseeker’s allowance or income-related employment and support allowance—

(a)

take the weekly rate on the migration day calculated in accordance with—

(i)

in the case of income support, Part 7 of the Social Security Contributions and Benefits Act 1992 and the Income Support (General) Regulations 1987,

(ii)

in the case of income-based jobseeker’s allowance, Part 1 of the Jobseekers Act 1995 and the Jobseeker’s Allowance Regulations 1996, or

(iii)

in the case of income-related employment and support allowance, Part 1 of the 2007 Act, the Employment and Support Allowance Regulations 2008 and the Employment and Support Allowance (Transitional Provisions, Housing Benefit and Council Tax Benefit) (Existing Awards) (No.2) Regulations 2010,

on the basis of the information held by the Secretary of State on that day; and

(b)

convert to a monthly figure by multiplying by 52 and dividing by 12.

(5)

The amount of an award of income-related employment and support allowance or income-based jobseeker’s allowance is to be calculated before any reduction for a sanction.

(6)

Where—

(a)

a claimant who is entitled to income-based jobseeker’s allowance is also entitled to contribution-based jobseeker’s allowance; or

(b)

a claimant who is entitled to income-related employment and support allowance is also entitled to a contributory allowance,

then, notwithstanding section 4(8) to (11) of the Jobseekers Act 1995 and section 6(3) to (7) of the 2007 Act (excess over the contributory allowance to be treated as attributable to the income-based, or income-related, allowance) the weekly rate in paragraph (4) is to be calculated as the applicable amount less the claimant’s income (if any).

  • Housing benefit

(7)

To calculate the representative monthly rate of an award of housing benefit—

(a)

take the weekly rate on the migration day calculated in accordance with Part 7 of the Social Security Contributions and Benefits Act 1992 and the Housing Benefit Regulations 2006, on the basis of the information held by the Secretary of State on that day, and convert to a monthly figure by multiplying by 52 and dividing by 12; or

(b)

in a case where the claimant has rent free periods, calculate the annual rate by multiplying the weekly rate (as above) by the number of weeks in the year in respect of which the claimant is liable to pay rent, and convert to a monthly figure by dividing by 12.

(8)

For the purposes of paragraph (7), if the migration day falls in a rent free period, the weekly rate of housing benefit is to be calculated by reference to the amount of rent for the last complete week that was not a rent free period.

(9)

In paragraphs (7) and (8) “rent free period” has the meaning in regulation 81 of the Housing Benefit Regulations 2006.

(10)

In a case where regulation 8(3) (continuation of housing benefit in respect of specified accommodation or temporary accommodation) applies, no amount is to be included in the total legacy amount F2for housing benefit in respect of specified or temporary accommodation.

  • The benefit cap

(11)

Where—

(a)

the existing benefits do not include an award of housing benefit, or they include an award of housing benefit that has been reduced to the minimum amount by virtue of Part 8A of the Housing Benefit Regulations 2006 (the benefit cap);

(b)

Part 7 of the Universal Credit Regulations (the benefit cap) applies in the calculation of the indicative UC amount; and

(c)

the claimant’s total entitlement to welfare benefits (as defined in section 96(10) of the Act) on the migration day is greater than the relevant amount,

the total legacy amount is reduced by the excess (minus the amount for childcare costs referred to regulation 54(2)(b) where applicable) over the relevant amount.

(12)

For the purposes of paragraph (11)—

(a)

the amount of each welfare benefit is the monthly equivalent calculated in the manner set out in regulation 73 (unearned income calculated monthly) of the Universal Credit Regulations; and

(b)

the “relevant amount” is the amount referred to in regulation 80A of those Regulations which is applicable to the claimant.

Annotations

Textual amendments

F1

Pt. 4 inserted (24.7.2019) by The Universal Credit (Managed Migration Pilot and Miscellaneous Amendments) Regulations 2019 (S.I. 2019/1152), regs. 1(2), 3(7) (with reg. 2)

F2

Words in reg. 53(10) substituted (29.6.2023) by The Social Security and Universal Credit (Miscellaneous Amendments) Regulations 2023 (S.I. 2023/543), regs. 1(1), 6(4)