The Universal Credit (Consequential, Supplementary, Incidental and Miscellaneous Provisions) Regulations (Northern Ireland) 2016

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make consequential, supplementary, incidental and miscellaneous provision in relation to the provisions of Part 1 of the Welfare Reform (Northern Ireland) Order 2015 (S.I.2015/2006 (N.I. 1)) (“the Order”) that relate to the introduction of universal credit (“universal credit provisions”) and the abolition of income-related employment and support allowance and income-based jobseeker’s allowance.

As a result of this abolition, employment and support allowance will no longer consist of separate contributory and income-related allowances, but only of a contributory allowance to be known simply as “employment and support allowance”.

Also, jobseeker’s allowance will no longer consist of separate contribution-based and income-based allowances, but of a contribution-based allowance to be known as “jobseeker’s allowance”.

The universal credit provisions and the provisions abolishing income-related employment and support allowance and income-based jobseeker’s allowance are to be commenced in stages, such that for a period of time, the old forms of employment and support allowance and jobseeker’s allowance (“old style ESA” and “old style JSA”) will apply to some people and the new forms (“new style ESA” and “new style JSA”) to other people.

Part 2 of the Regulations amends provisions of primary legislation. The Part makes amendments to 12 pieces of enabling legislation, consequential on the coming into operation of Part 1 of the Welfare Reform (Northern Ireland) Order 2015.

The majority of the amendments made by these Regulations add a reference to universal credit to existing legislation. A few of the amendments insert a reference to particular elements of universal credit, for example the Income Tax (Earnings and Pensions) Act 2003 (c.1) is amended to refer to universal credit paid in respect of childcare costs (see section 12 of the Act). The amendments to the Employment (Miscellaneous Provisions) (Northern Ireland) Order 1990 are minor and consequential amendments.

Part 3 contains amendments only to secondary legislation.

Chapter 1 contains amendments relating to social security benefits.

The regulations in this Part insert references to universal credit where there are already references to other income-related benefits. They also provide for definitions of “contributory employment and support allowance” and “contribution-based jobseeker’s allowance” that include both the old style ESA and JSA contributory allowances and the new style contributory-only ESA and JSA allowances.

Regulation 26 amends the Income Support (General) Regulations (Northern Ireland) 1987 (S.R. 1987 No. 459). In addition to the changes as referred to above it provides that –

a)

payments of universal credit that do not relate to a period for which income support is payable are disregarded;

b)

the definition of a “disabled person” includes where a person is entitled to an award of universal credit the calculation of which includes an amount in respect of the fact that they have limited capability for work (LCW) or limited capability for work and work-related activity (LCWRA) (or would include such an amount but for regulation 27(4) (couples) or 29(4) (Carer’s allowance) of the Universal Credit Regulations (Northern Ireland) 2016 (S.R. 2016 No. 216);

c)

the exceptions from the rule that provides for a deduction to be made from the housing costs element of income support in respect of a non-dependant of the claimant include the situation where the non-dependant is aged less than 25 and is entitled to universal credit on the basis that the non-dependant does not have any earned income as defined in the Universal Credit Regulations (Northern Ireland) 2016.

Regulations 28, 31, 34, 35 and 36 make similar provision in relation to Jobseeker’s Allowance, State Pension Credit, Housing Benefit and Employment and Support Allowance.

Chapter 2 contains amendments to secondary legislation relating to child support.

Regulation 38 amends the Child Support (Maintenance Assessments and Special Cases) Regulations 1992 (S.R.1992 No. 340) which relates to maintenance assessments under the “old scheme”, under the Child Support (Northern Ireland) Order 1991 as it has effect apart from section 1 of the Child Support, Pensions and Social Security (Northern Ireland) Act 2000. The amendment provides that, where a parent with care or absent parent is awarded universal credit on the basis that they have no earned income, as defined in the universal credit Regulations (Northern Ireland) 201, they will be treated as having “no assessable income” for the purposes of a maintenance assessment.

Regulations 40 and 41 amend the Child Support (Maintenance Calculations and Special Cases) Regulations 2000 (S.I. 2000/155) and Child Support Maintenance Calculation Regulations 2012 S.I. 2012/2677) which relate to the “current scheme” and the “future scheme” respectively under the Child Support (Northern Ireland) order 1991 as it has effect as amended by section 1 of the Child Support, Pensions and Social Security (Northern Ireland) Act 2000. The amendments provide that, where a non-resident parent or their partner is awarded universal credit on the basis that the non-resident parent has no “earned income”, then they will be liable to pay the flat rate of maintenance unless the conditions for payment of the nil rate of maintenance apply. They also provide that the latter conditions include a reference to the situation where a non-resident parent or their partner is awarded universal credit on the above basis.

Chapters 3 to 9 contains amendments to secondary legislation relating to other legal regimes. Again, these Chapters insert references to universal credit where there are already references to other income-related benefits and provide for definitions of “contributory employment and support allowance” and “contribution-based jobseeker’s allowance” that include both the old style ESA and JSA contributory allowances and the new style contributory-only ESA and JSA allowances.

Regulation 43 amends the Employment Protection (Recoupment of Jobseeker’s Allowance and Income Support) Regulations 1996 (S.R. 1996 No. 459) and provides for the recoupment of an award of universal credit where the award was paid for a period in respect of which an employment tribunal has made an order, where the award would not have been paid if the person’s earnings had not been reduced or stopped.

Regulation 48 amends the Housing Renewal Grants (Reduction of Grants) Regulations Northern Ireland 2004 (S.R. 2004 No. 8) to provide that, in relation to a “relevant person” with respect to whom an application for a housing renewal grant is made, where the person or their partner (excluding a partner to a polygamous marriage that is not the earliest marriage with respect to partners living in one household) is entitled to universal credit, then they are to be regarded as having no income, and as having an “applicable amount” of £1, with the result that there will be no reduction in grant with respect to that person

Regulation 51 amends the Social Security (Credits) Regulations (Northern Ireland) 1975 (S.R. 1995 No.113) and provides that a person entitled to universal credit will be credited with a class 3 national insurance contribution.

An assessment has been made of the impact of universal credit. Copies of the Impact Assessment may be obtained from the Better Regulation Unit of the Department for Work and Pensions, 2D Caxton House, Tothill Street, London SW1 9NA. it is available alongside this instrument and the Explanatory Memorandum on www.legislation.gov.uk.