72.—(1) A person’s capital is to be treated as yielding a monthly income of £4.35 for each £250 in excess of £6,000 and £4.35 for any excess which is not a complete £250.
(2) Paragraph (1) does not apply where the capital is disregarded or the actual income from that capital is taken into account under regulation 66(1)(i) (income from an annuity) or (j) (income from a trust).
(3) Where a person’s capital is treated as yielding income, any actual income derived from that capital, for example rental, interest or dividends, is to be treated as part of the person’s capital from the day it is due to be paid to the person.
73.—(1) A person’s unearned income is to be calculated as a monthly amount.
(2) Where the period in respect of which a payment of income is made is not a month, an amount is to be calculated as the monthly equivalent, so for example—
(a)weekly payments are multiplied by 52 and divided by 12;
(b)four weekly payments are multiplied by 13 and divided 12;
(c)three monthly payments are multiplied by 4 and divided by 12; and
(d)annual payments are divided by 12.
(3) Where the amount of a person’s unearned income fluctuates, the monthly equivalent is to be calculated—
(a)where there is an identifiable cycle, over the duration of one such cycle; or
(b)where there is no identifiable cycle, over three months or such other period as may, in the particular case, enable the monthly equivalent of the person’s income to be determined more accurately.
(4) This regulation does not apply to student income.
74.—(1) If unearned income would be available to a person upon the making of an application for it, the person is to be treated as having that unearned income.
(2) Paragraph (1) does not apply to the benefits listed in regulation 66(1)(b).
(3) A person who has reached the qualifying age for state pension credit is to be treated as possessing the amount of any retirement pension income for which no application has been made and to which the person might expect to be entitled if a claim were made.
(4) The circumstances in which a person is to be treated as possessing retirement pension income for the purposes of universal credit are the same as the circumstances set out in regulation 18 of the State Pension Credit Regulations 2002(1) in which a person is treated as receiving retirement pension income for the purposes of state pension credit.
S.I. 2002/1972 amended by S.I. 2005/2677, 2006/2378, 2007/2618, 2009/2655 and 2010/641.