These Regulations amend the Universal Credit Regulations (Northern Ireland) 2016 (S.R. 2016 No. 216) in relation to the exception to the application of the benefit cap to a universal credit award in an assessment period where the claimant’s earnings (or if the claimant is a member of a couple, the couple’s combined earnings) exceed a specified threshold (the “earnings exception threshold”).
Regulation 2(2) amends regulation 7 (rounding) of the Universal Credit Regulations (Northern Ireland) 2016 to provide that, when calculating the level of the earnings exception threshold in relation to a universal credit award, that amount is to be rounded down to the nearest whole pound.
Regulation 82(1)(a) of the Universal Credit Regulations (Northern Ireland) 2016 provides that the benefit cap does not apply to a universal credit award in relation to an assessment period where the claimant’s earnings (or the couple’s combined earnings) are equal to or exceed the earnings exception threshold. Regulation 2(3)(a) of these Regulations amends this threshold from the existing fixed amount of £430 to a formula to calculate the monthly amount a person would earn whilst working 16 hours per week at the National Living Wage.
Regulation 82(1)(b), (2) and (3) of the Universal Credit Regulations (Northern Ireland) 2016 provide for a ‘grace period’ of nine months in which the benefit cap does not apply even where earnings have fallen below the earnings exception threshold. The grace period starts to run at the point where earnings fall below the threshold on the condition that they have been equal to, or above, it for the previous 12 assessment periods (or months if outside an assessment period). Regulation 2(3)(b) of these Regulations amends regulation 82(3) in order to ensure that any entitlement to the grace period accruing in respect of a period occurring before 1st April 2017 is not retrospectively affected by the amendment to the earnings exception threshold.
An impact assessment has not been produced for this instrument as no impact on the private or voluntary sector is foreseen.