The Housing Benefit and Council Tax Benefit (Extended Payments (Severe Disablement Allowance and Incapacity Benefit)) Amendment Regulations 2004

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Housing Benefit and Council Tax Benefit (Extended Payments (Severe Disablement Allowance and Incapacity Benefit)) Amendment Regulations 2004 and shall come into force on 5^th April 2004 immediately following the coming into force of the Housing Benefit and Council Tax Benefit (Abolition of Benefit Periods) Amendment Regulations 2004(1).

(2) In these Regulations—

“the Council Tax Benefit Regulations” means the Council Tax Benefit (General) Regulations 1992(2);

“the Housing Benefit Regulations” means the Housing Benefit (General) Regulations 1987(3).

Amendment of regulation 2 of the Housing Benefit Regulations and the Council Tax Benefit Regulations

2.—(1) In regulation 2(1) of the Housing Benefit Regulations (interpretation) at the appropriate place insert—

““extended payment (severe disablement allowance and incapacity benefit)” means a payment of housing benefit pursuant to regulation 62ZB;”.

(2) In regulation 2(1) of the Council Tax Benefit Regulations (interpretation) at the appropriate place insert—

““extended payment (severe disablement allowance and incapacity benefit)” means council tax benefit allowed pursuant to regulation 53ZB;”.

Extended payments (severe disablement allowance and incapacity benefit)

3.—(1) After regulation 62A of the Housing Benefit Regulations(4) (extended payments) there shall be inserted—

“Extended payments (severe disablement allowance and incapacity benefit)

62ZB.— (1) Except in a case in which a person is in receipt of state pension credit, paragraph (2) shall apply where—

(a) a person ceases to be entitled to housing benefit—

(i) in accordance with regulation 65B (date on which entitlement to housing benefit is to end where entitlement to severe disablement allowance or incapacity benefit ceases); and

(ii) the condition referred to in paragraph 1 of Schedule 5B is satisfied in his case; or

(b) a person ceases to be entitled to housing benefit because he has vacated the dwelling which he occupied as his home and the day on which he did so was either in the week in which he took up employment as an employed or self-employed earner, or in the preceding week, and—

(i) he ceased to be entitled to severe disablement allowance or incapacity benefit by reason of taking up employment as an employed or self-employed earner;

(ii) he had been entitled to and in receipt of severe disablement allowance, incapacity benefit or a combination of severe disablement allowance and incapacity benefit for a continuous period of at least 26 weeks;

(iii) he was not entitled to and in receipt of income support; and

(iv) the condition referred to in paragraph 1 of Schedule 5B is satisfied in his case.

(2) A person to whom paragraph (1) applies shall be treated as having made a claim under this regulation and his housing benefit shall be determined in accordance with Schedule 5B and any award so determined shall be referred to in these regulations as an “extended payment (severe disablement allowance and incapacity benefit)”.

(3) For the purposes of any payment pursuant to this regulation—

(a) except in a case to which paragraph (b) applies the maximum housing benefit of any person mentioned in paragraph (1) shall be that which was applicable to him in the last week of the award of housing benefit which has ceased as mentioned in paragraph (1);

(b) the maximum housing benefit of any person the amount of whose extended payment (severe disablement allowance and incapacity benefit) is calculated in accordance with paragraph 6(b)(i) of Schedule 5B shall be determined in accordance with paragraph 7 of that Schedule;

(c) except in a case to which paragraph (d) applies, any person who meets the requirements of paragraph (1) shall be treated as possessing the same amounts of income and capital as they possessed in the last week of the award of housing benefit which has ceased as mentioned in paragraph (1); and

(d) any person whose maximum housing benefit is determined in accordance with paragraph 7 of Schedule 5B shall be treated as possessing no income or capital.

(4) Regulations 71, 72 and 73 (claims, evidence and information) shall not apply to a claim pursuant to this regulation and, subject to regulation 69(8)(5), Part IX (calculation of weekly amounts and changes of circumstances) shall not apply to any payment under it.

(5) In paragraph (1), references to a “person” include references to a person’s partner and references to taking up employment include receiving remuneration for employment or an increased amount of remuneration for employment or engaging in employment for an increased number of hours.

(6) In a case where payment has been made under this regulation—

(a) the beneficiary shall be treated for the purpose of these Regulations and of the Housing Benefit (General) Amendment Regulations 1995(6) as though he were entitled to and in receipt of housing benefit—

(i) during the 4 weeks immediately following the last day of his entitlement to housing benefit; or

(ii) until the date on which his liability for rent ends,

whichever occurs first; and

(b) any claim for housing benefit made by the beneficiary within the period which under sub-paragraph (a) applies in his case or the 4 weeks thereafter shall be treated as having been made in respect of a period beginning immediately after the end of his previous award of housing benefit.”.

(2) After regulation 53A of the Council Tax Benefit Regulations(7) (extended payments) there shall be inserted—

“Extended payments (severe disability allowance and incapacity benefit)

53ZB.— (1) Except in a case in which a person is in receipt of state pension credit, paragraph (2) shall apply where—

(a) a person ceases to be entitled to council tax benefit—

(i) in accordance with regulation 56B (date on which entitlement to housing benefit is to end where entitlement to severe disablement allowance or incapacity benefit ceases); and

(ii) the condition referred to in paragraph 1 of Schedule 5B is satisfied in his case; or

(b) a person ceases to be entitled to council tax benefit because he has vacated the dwelling of which he was a resident and the day on which he did so was either in the week in which he took up employment as an employed or self-employed earner, or in the preceding week, and—

(i) he ceased to be entitled to severe disablement allowance or incapacity benefit by reason of taking up employment as an employed or self-employed earner;

(ii) he had been entitled to and in receipt of severe disablement allowance, incapacity benefit or a combination of severe disablement allowance and incapacity benefit for a continuous period of at least 26 weeks;

(iii) he was not entitled to and in receipt of income support; and

(iv) the condition referred to in paragraph 1 of Schedule 5B is satisfied in his case.

(2) A person to whom paragraph (1) applies shall be treated as having made a claim under this regulation and his council tax benefit shall be determined in accordance with Schedule 5B and any award so determined shall be referred to in these regulations as an “extended payment (severe disablement allowance and incapacity benefit)”.

(3) For the purposes of any payment pursuant to this regulation—

(a) except in a case to which paragraph 4(a) of Schedule 5B applies, the maximum council tax benefit of any person mentioned in paragraph (1) shall be determined in accordance with paragraph 2 of Schedule 5B;

(b) the maximum council tax benefit of any person to whom paragraph 4(a) of Schedule 5B applies shall be determined in accordance with paragraph 5 of that Schedule;

(c) except in a case to which paragraph (d) applies, any person who meets the requirements of paragraph (1) shall be treated as possessing the amount of income and the amount of capital that they possessed in the last week of the award of council tax benefit which has ceased as mentioned in paragraph (1); and

(d) any person whose maximum council tax benefit is determined in accordance with paragraph 5 of Schedule 5B shall be treated as possessing no income or capital.

(4) Regulations 61, 62 and 63 (claims, evidence and information) shall not apply to a claim pursuant to this regulation and, subject to regulation 51(6)(8) ( maximum council tax benefit), Part VII (benefit periods, changes of circumstances and increases for exceptional circumstances) shall not apply to any payment under it.

(5) In paragraph (1), references to a “person” include references to a person’s partner and references to taking up employment include receiving remuneration for employment or an increased amount of remuneration for employment or engaging in employment for an increased number of hours.

(6) In a case where payment has been made under this regulation—

(a) the beneficiary shall be treated for the purpose of these Regulations as though he were entitled to and in receipt of council tax benefit—

(i) during the 4 weeks immediately following the last day of his entitlement to housing benefit; or

(ii) until the date on which his liability for council tax ends,

whichever occurs first; and

(b) any claim for council tax benefit made by the beneficiary within the period which under sub-paragraph (a) applies in his case or the 4 weeks thereafter shall be treated as having been made in respect of a period beginning immediately after the end of his previous award of council tax benefit.”.

Date on which award of benefit is to end where entitlement to severe disablement allowance or incapacity benefit ceases

4.—(1) After regulation 65A of the Housing Benefit Regulations(9) (date on which housing benefit is to end) there shall be inserted—

“Date on which housing benefit is to end where entitlement to severe disability allowance or incapacity benefit ceases

65B.   Except in a case in which the claimant or his partner is in receipt of state pension credit, a claimant’s entitlement to housing benefit shall cease at the end of the benefit week in which entitlement to severe disablement allowance or incapacity benefit ceases where—

(a) the claimant or his partner was not entitled to and in receipt of income support but was entitled to and in receipt of severe disablement allowance or incapacity benefit and that entitlement has ceased;

(b) that entitlement to severe disablement allowance or incapacity benefit has ceased by reason of the claimant or his partner—

(i) commencing employment as an employed or self-employed earner; or

(ii) increasing their earnings from such employment; or

(iii) increasing the number of hours worked in such employment;

(c) the claimant had been entitled to and in receipt of severe disablement allowance or incapacity benefit for a continuous period of at least 26 weeks before the day on which his entitlement to severe disablement allowance or incapacity benefit ceased, and for the purposes of this sub-paragraph—

(i) a claimant satisfies the conditions of this sub-paragraph if he has been entitled to and in receipt of a combination of severe disablement allowance and incapacity benefit for at least 26 weeks;

(ii) references to the claimant include references to his partner; and

(d) that work, increase in earnings, or as the case may be, increase in hours is expected to last at least 5 weeks or more.”.

(2) After regulation 56A of the Council Tax Benefit Regulations(10) (date on which council tax benefit is to end) there shall be inserted—

“Date on which council tax benefit is to end where entitlement to severe disability allowance or incapacity benefit ceases

56B.   Except in a case in which the claimant or his partner is in receipt of state pension credit, a claimant’s entitlement to council tax benefit shall cease at the end of the benefit week in which entitlement to severe disablement allowance or incapacity benefit ceases where—

(a) the claimant or his partner was not entitled to and in receipt of income support but was entitled to and in receipt of severe disablement allowance or incapacity benefit and that entitlement has ceased;

(b) that entitlement to severe disablement allowance or incapacity benefit has ceased by reason of the claimant or his partner—

(i) commencing employment as an employed or self-employed earner; or

(ii) increasing their earnings from such employment; or

(iii) increasing the number of hours worked in such employment;

(c) the claimant had been entitled to and in receipt of severe disablement allowance or incapacity benefit for a continuous period of at least 26 weeks before the day on which his entitlement to severe disablement allowance or incapacity benefit ceased, and for the purposes of this sub-paragraph—

(i) a claimant satisfies the conditions of this sub-paragraph if he has been entitled to and in receipt of a combination of severe disablement allowance and incapacity benefit for at least 26 weeks;

(ii) references to the claimant include references to his partner; and

(d) that work, increase in earnings, or as the case may be, increase in hours is expected to last at least 5 weeks or more.”.

Amendment of regulation 69 of the Housing Benefit Regulations and regulation 51 of the Council Tax Benefit Regulations

5.—(1) In regulation 69(8) of the Housing Benefit Regulations (calculation of weekly amounts)—

(a) after the words “extended payment” insert “or an extended payment (severe disablement allowance and incapacity benefit)”; and

(b) after the words “Part III of Schedule 5A” insert “or paragraph 9 of Schedule 5B, as the case may be”.

(2) In regulation 51(6) of the Council Tax Benefit Regulations (maximum council tax benefit)—

(a) after the words “extended payment” insert “or an extended payment (severe disablement allowance and incapacity benefit)”; and

(b) after the words “Part III of Schedule 5A” insert “or paragraph 6 of Schedule 5B, as the case may be”.

Insertion of Schedule 5B into the Housing Benefit Regulations and the Council Tax Benefit Regulations

6.—(1) After Schedule 5A to the Housing Benefit Regulations(11) (extended payments of housing benefit) insert the new Schedule 5B (which deals with extended payments (severe disablement allowance and incapacity benefit) of housing benefit) set out in Schedule 1 to these Regulations.

(2) After Schedule 5A to the Council Tax Benefit Regulations(12) (extended payment of council tax benefit) insert the new Schedule 5B (which deals with extended payments (severe disablement allowance and incapacity benefit) of council tax benefit) set out in Schedule 2 to these Regulations.

Signed by authority of the Secretary of State for Work and Pensions.

Chris Pond

Parliamentary Under-Secretary of State,

Department for Work and Pensions

9th February 2004