The Universal Credit Regulations 2013

[F1 Surplus earnings U.K.

54A.— (1) This regulation applies in relation to a claim for universal credit where—

(a) the claimant, or either of joint claimants, had an award of universal credit (the “old award”) that terminated within the 6 months ending on the first day in respect of which the claim is made;

(b) the claimant has not, or neither of joint claimants has, been entitled to universal credit since the old award terminated; and

(c) the total earned income in the month that would have been the final assessment period for the old award, had it not terminated, exceeded the relevant threshold.

(2) Where this regulation applies in relation to a claim, any surplus earnings determined in accordance with paragraph (3) are to be treated as earned income for the purposes of determining whether there is entitlement to a new award and, if there is entitlement, calculating the amount of the award.

(3) Surplus earnings are—

(a) if the claim in question is the first since the termination of the old award, the amount of the excess referred to in paragraph (1)(c) (“the original surplus”);

(b) if the claim in question is the second since the termination of the old award, the amount, if any, by which—

(i) the original surplus, plus

(ii) the total earned income in the month that would have been the first assessment period in relation to the first claim,

exceeded the relevant threshold (“the adjusted surplus”);

(c) if the claim in question is the third since the termination of the old award, the amount, if any, by which—

(i) the adjusted surplus from the second claim, plus

(ii) the total earned income in the month that would have been the first assessment period in relation to the second claim,

exceeded the relevant threshold;

(d) if the claim in question is the fourth or fifth since the termination of the old award, an amount calculated in the same manner as for the third claim (that is by taking the adjusted surplus from the previous claim).

(4) For the purposes of paragraph (3)—

(a) if the claim in question is the first joint claim by members of a couple, each of whom had an old award (because each was previously entitled to universal credit as a single person or as a member of a different couple), the amounts of any surplus earnings from the old award or from a previous claim that would have been treated as earned income if they had each claimed as a single person are to be aggregated; and

(b) if the claim in question is—

(i) a single claim where the claimant had an old award, or made a subsequent claim, as a joint claimant, or

(ii) a joint claim where either claimant had an old award, or made a subsequent claim, as a member of a different couple,

the original surplus, or any adjusted surplus, in relation to the old award is to be apportioned in the manner determined by the Secretary of State.

(5) No amount of surplus earnings is to be taken into account in respect of a claimant who has, or had at the time the old award terminated, recently been a victim of domestic violence (within the meaning given by regulation 98).

(6) In this regulation—

“total earned income” is the earned income of the claimant or, if the claimant is a member of a couple, the couple’s combined earned income, but does not include any amount a claimant would be treated as having by virtue of regulation 62 (the minimum income floor);

“the nil UC threshold” is the amount of total earned income above which there would be no entitlement to universal credit, expressed by the following formula—F2

where—

• M is the maximum amount of an award of universal credit;

• U is unearned income;

• WA is the work allowance; and

“the relevant threshold” is the nil UC threshold plus £300.]

Textual Amendments

F1 Reg. 54A inserted (11.4.2018) by The Universal Credit (Surpluses and Self-employed Losses) (Digital Service) Amendment Regulations 2015 (S.I. 2015/345), regs. 1, 2(2) (with regs. 4, 5) (as amended by S.I. 2017/197, reg. 2 and S.I. 2018/65, reg. 7)

F2 Formula in reg. 54A(6) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Universal Credit (Work Allowance and Taper) (Amendment) Regulations 2021 (S.I. 2021/1283), regs. 1(1), 2(2)