The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1996

Income support and housing benefit: Capital limits for persons in residential and other types of accommodation

12.—(1) In the Income Support Regulations—

(a) for regulation 45(1) (capital limit for entitlement to income support) there is substituted—

“45.   For the purposes of section 134(1) of the Contributions and Benefits Act as it applies to income support (no entitlement to benefit if capital exceeds prescribed amount)—

(a) except where paragraph (b) applies, the prescribed amount is £8,000;

(b) where the circumstances prescribed in regulation 53(1B) apply in the claimant’s case, the prescribed amount is £16,000.”;

(b) in regulation 53 (calculation of tariff income from capital) —

(i) in paragraph (1)(2), at the beginning, there is inserted “Except where the circumstances prescribed in paragraph (1B) apply to the claimant,”;

(ii) after paragraph (1), there is inserted—

“(1A) Where the circumstances prescribed in paragraph (1B) apply to the claimant and that claimant’s capital calculated in accordance with this Part exceeds £10,000, it shall be treated as equivalent to a weekly income of £1 for each complete £250 in excess of £10,000 but not exceeding £16,000.

(1B) For the purposes of paragraph (1A) and regulation 45, the prescribed circumstances are that the claimant lives permanently in—

(a) a residential care or nursing home, or residential accommodation and that home or accommodation provides board and personal care for the claimant by reason of his old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder; or

(b) an establishment run by the Abbeyfield Society including all bodies corporate or incorporate which are affiliated to that Society; or

(b) accommodation provided under section 3 of, and Part II of the Schedule to, the Polish Resettlement Act 1947(3) (provision of accommodation in camps) where the claimant requires personal care and is provided with it in the accommodation; and in this sub-paragraph, “personal care” means care which includes assistance with bodily functions where such assistance is required.

(1C) For the purposes of paragraph (1B), a claimant shall be treated as living permanently in such home or accommodation where he is absent—

(a) from a home or accommodation referred to in sub-paragraph (a) or (b) of paragraph (1B)—

(i) in the case of a claimant referred to in regulation 19(2) or in the case of a person over pensionable age, for a period not exceeding 52 weeks, and

(ii) in any other case, for a period not exceeding 13 weeks;

(b) from accommodation referred to in sub-paragraph (c) of paragraph (1B), where the claimant, with the agreement of the manager of the accommodation, intends to return to the accommodation in due course.”;

(iii) in both paragraphs (2) and (3)(4), for“paragraph (1)”, there is substituted “paragraphs (1) and (lA)”;

(iv) after paragraph (3) there is added—

“(4) For the purposes of this regulation, the definition of“residential accommodation” in regulation 21(3)(5) (applicable amounts of income support in special cases) shall have effect as if, after the words “subject to the following provisions of this regulation”, there were inserted “(except paragraphs (4) and (4A))”.”.

(2) In the Housing Benefit Regulations—

(a) in regulation 7 (circumstances in which a person is to be treated as not liable to make payments in respect of a dwelling) —

(i) in sub-paragraph (a) of paragraph (6)(6), for the words “5(8)” there is substituted the words “5(7C), (8) or (8C)(7)”;

(ii) for paragraph (9)(8) there is substituted the following paragraph—

“(9) For the purposes of paragraph (8), any absence shall be disregarded during which the person is treated as occupying the accommodation as his home pursuant to regulation 5(7C), (8) or (8C).”;

(b) in regulation 45 (calculation of tariff income from capital) —

(i) in paragraph (l)(9), at the beginning, there is inserted “Except where the circumstances prescribed in paragraph (1B) apply to the claimant,”;

(ii) after paragraph (1), there is inserted—

“(1A) Where the circumstances prescribed in paragraph (1B) apply to a claimant and that claimant’s capital calculated in accordance with this Part exceeds £10,000, it shall be treated as equivalent to a weekly tariff income of £1 for each complete £250 in excess of £10,000 but not exceeding £16,000.

(1B) For the purposes of paragraph (1A), the prescribed circumstances are that the claimant—

(a) occupies residential accommodation as his home; or

(b) is a person to whom regulation 7(2), (5) or (7)(10) applies (exceptions to circumstances in which a person is to be treated as not liable to make payments in respect of a dwelling).

(1C) For the purposes of paragraph (1B), the claimant shall be treated as occupying residential accommodation as his home or as a person to whom regulation 7(2), (5) or (7) applies in any period during which he is treated as occupying the accommodation as his home pursuant to regulation 5(7C), (8) or (8C).”;

(iii) in both paragraphs (2) and (3)(11), for“paragraph (1)”, there is substituted “paragraphs (1) and (lA)”;

(iv) after paragraph (3), there is added—

“(4) For the purposes of this regulation and subject to paragraph (5), “residential accommodation” means accommodation which is provided by an establishment—

(a) under sections 21 to 24 of the National Assistance Act 1948(12) (provision of accommodation) or under section 59 of the Social Work (Scotland) Act 1968(13) (provision of residential and other establishments) where board is not available to the claimant and the home in which the accommodation is provided is either owned or managed or owned and managed by a local authority;

(b) which is managed or provided by a body incorporated by Royal Charter or constituted by Act of Parliament (other than a social services authority) and provides both board and personal care for the claimant; and in this sub-paragraph, “personal care” means care which includes assistance with bodily functions where such assistance is required;

(c) which is run by the Abbeyfield Society including all bodies corporate or incorporate which are affiliated to that Society,

and in this definition, “board” has the same meaning as in regulation 8(2)(b).(14)

(5) Paragraph (4) shall not apply to residential accommodation of the type—

(a) referred to in sub-paragraph (a) of paragraph (4) where housing benefit is not payable in respect of payments relating to that accommodation by virtue of regulation 8(2ZA) or (2ZB);(15) or

(b) referred to in sub-paragraph (b) or (c) of paragraph (4) where such accommodation is residential accommodation for the purposes of regulation 7 and none of paragraphs (2), (5) or (7) of that regulation apply to the claimant in respect of that accommodation.”.

(1)

The capital limit in regulation 45 was substituted by S.I. 1990/671.

(2)

The upper capital limit in regulation 53(1) was substituted by S.I. 1990/671, regulation 5(2).

(3)

1947 c. 19.

(4)

Regulation 53(3) was amended by S.I. 1988/2022, regulation 13.

(5)

The definition of "residential accommodation" in regulation 21(3) was amended by S.I. 1992/3147, paragraph 3(a) of Schedule 1, 1994/2139, regulation 25(a) and 1995/516, regulation 21(a)(ii).

(6)

Regulation 7(6) and (9) was inserted by S.I. 1992/3147, regulation 5(3).

(7)

Regulation 5(7C) and (8C) was inserted, and regulation 5(8) amended, by S.I. 1995/625, regulation 2(2) and (4).

(8)

Regulation 7(6) and (9) was inserted by S.I. 1992/3147, regulation 5(3).

(9)

The upper capital limit in regulation 45(1) was substituted by S.I. 1990/671, regulation 4(2).

(10)

Regulation 7(2) was amended by, and regulation 7(4), (5), (6) and (7) was inserted by, S.I. 1992/3147, regulation 5(2) and (3).

(11)

Regulation 45(3) was amended by S.I. 1988/1971, regulation 14.

(12)

1948 c. 29; section 21 was amended by the National Health Service and Community Care Act 1990 (c. 19), section 42(1).

(13)

1968 c. 49.

(14)

Regulation 8(2)(b) was substituted by S.I. 1992/3147, regulation 6(1)(b).

(15)

Regulation 8(2ZA) and (2ZB) was inserted by S.I. 1993/518, regulation 6(b).