Part 1Universal credit
CHAPTER 1Entitlement and awards
Introductory
1Universal credit
1
A benefit known as universal credit is payable in accordance with this Part.
2
Universal credit may, subject as follows, be awarded to—
a
an individual who is not a member of a couple (a “single person”), or
b
members of a couple jointly.
3
An award of universal credit is, subject as follows, calculated by reference to—
a
a standard allowance,
b
an amount for responsibility for children or young persons,
c
an amount for housing, and
d
amounts for other particular needs or circumstances.
2Claims
1
A claim may be made for universal credit by—
a
a single person, or
b
members of a couple jointly.
2
Regulations may specify circumstances in which a member of a couple may make a claim as a single person.
Entitlement
3Entitlement
1
A single claimant is entitled to universal credit if the claimant meets—
a
the basic conditions, and
b
the financial conditions for a single claimant.
2
Joint claimants are jointly entitled to universal credit if—
a
each of them meets the basic conditions, and
b
they meet the financial conditions for joint claimants.
4Basic conditions
1
For the purposes of section 3, a person meets the basic conditions who—
a
is at least 18 years old,
b
has not reached the qualifying age for state pension credit,
c
is in Great Britain,
d
is not receiving education, and
e
has accepted a claimant commitment.
2
Regulations may provide for exceptions to the requirement to meet any of the basic conditions (and, for joint claimants, may provide for an exception for one or both).
3
For the basic condition in subsection (1)(a) regulations may specify a different minimum age for prescribed cases.
4
For the basic condition in subsection (1)(b), the qualifying age for state pension credit is that referred to in section 1(6) of the State Pension Credit Act 2002.
5
For the basic condition in subsection (1)(c) regulations may—
a
specify circumstances in which a person is to be treated as being or not being in Great Britain;
b
specify circumstances in which temporary absence from Great Britain is disregarded;
c
modify the application of this Part in relation to a person not in Great Britain who is by virtue of paragraph (b) entitled to universal credit.
6
For the basic condition in subsection (1)(d) regulations may—
a
specify what “receiving education” means;
b
specify circumstances in which a person is to be treated as receiving or not receiving education.
7
For the basic condition in subsection (1)(e) regulations may specify circumstances in which a person is to be treated as having accepted or not accepted a claimant commitment.
5Financial conditions
1
For the purposes of section 3, the financial conditions for a single claimant are that—
a
the claimant's capital, or a prescribed part of it, is not greater than a prescribed amount, and
b
the claimant's income is such that, if the claimant were entitled to universal credit, the amount payable would not be less than any prescribed minimum.
2
For those purposes, the financial conditions for joint claimants are that—
a
their combined capital, or a prescribed part of it, is not greater than a prescribed amount, and
b
their combined income is such that, if they were entitled to universal credit, the amount payable would not be less than any prescribed minimum.
6Restrictions on entitlement
1
Entitlement to universal credit does not arise—
a
in prescribed circumstances (even though the requirements in section 3 are met);
b
if the requirements in section 3 are met for a period shorter than a prescribed period;
c
for a prescribed period at the beginning of a period during which those requirements are met.
2
A period prescribed under subsection (1)(b) or (c) may not exceed seven days.
3
Regulations may provide for exceptions to subsection (1)(b) or (c).
Awards
7Basis of awards
1
Universal credit is payable in respect of each complete assessment period within a period of entitlement.
2
In this Part an “assessment period” is a period of a prescribed duration.
3
Regulations may make provision—
a
about when an assessment period is to start;
b
for universal credit to be payable in respect of a period shorter than an assessment period;
c
about the amount payable in respect of a period shorter than an assessment period.
4
In subsection (1) “period of entitlement” means a period during which entitlement to universal credit subsists.
8Calculation of awards
1
The amount of an award of universal credit is to be the balance of—
a
the maximum amount (see subsection (2)), less
b
the amounts to be deducted (see subsection (3)).
2
The maximum amount is the total of—
a
any amount included under section 9 (standard allowance),
b
any amount included under section 10 (responsibility for children and young persons),
c
any amount included under section 11 (housing costs), and
d
any amount included under section 12 (other particular needs or circumstances).
3
The amounts to be deducted are—
a
an amount in respect of earned income calculated in the prescribed manner (which may include multiplying some or all earned income by a prescribed percentage), and
b
an amount in respect of unearned income calculated in the prescribed manner (which may include multiplying some or all unearned income by a prescribed percentage).
4
In subsection (3)(a) and (b) the references to income are—
a
in the case of a single claimant, to income of the claimant, and
b
in the case of joint claimants, to combined income of the claimants.
Elements of an award
9Standard allowance
1
The calculation of an award of universal credit is to include an amount by way of an allowance for—
a
a single claimant, or
b
joint claimants.
2
Regulations are to specify the amount to be included under subsection (1).
3
Regulations may provide for exceptions to subsection (1).
10Responsibility for children and young persons
1
The calculation of an award of universal credit is to include an amount for each child or qualifying young person for whom a claimant is responsible.
2
Regulations may make provision for the inclusion of an additional amount if such a child or qualifying young person is disabled.
3
Regulations are to specify, or provide for the calculation of, amounts to be included under subsection (1) or (2).
4
Regulations may provide for exceptions to subsection (1).
5
In this Part, “qualifying young person” means a person of a prescribed description.
11Housing costs
1
The calculation of an award of universal credit is to include an amount in respect of any liability of a claimant to make payments in respect of the accommodation they occupy as their home.
2
For the purposes of subsection (1)—
a
the accommodation must be in Great Britain;
b
the accommodation must be residential accommodation;
c
it is immaterial whether the accommodation consists of the whole or part of a building and whether or not it comprises separate and self-contained premises.
3
Regulations may make provision as to—
a
what is meant by payments in respect of accommodation for the purposes of this section (and, in particular, the extent to which such payments include mortgage payments);
b
circumstances in which a claimant is to be treated as liable or not liable to make such payments;
c
circumstances in which a claimant is to be treated as occupying or not occupying accommodation as their home (and, in particular, for temporary absences to be disregarded);
d
circumstances in which land used for the purposes of any accommodation is to be treated as included in the accommodation.
4
Regulations are to provide for the determination or calculation of any amount to be included under this section.
5
Regulations may—
a
provide for exceptions to subsection (1);
b
provide for inclusion of an amount under this section in the calculation of an award of universal credit—
i
to end at a prescribed time, or
ii
not to start until a prescribed time.
12Other particular needs or circumstances
1
The calculation of an award of universal credit is to include amounts in respect of such particular needs or circumstances of a claimant as may be prescribed.
2
The needs or circumstances prescribed under subsection (1) may include—
a
the fact that a claimant has limited capability for work;
b
the fact that a claimant has limited capability for work and work-related activity;
c
the fact that a claimant has regular and substantial caring responsibilities for a severely disabled person.
3
Regulations are to specify, or provide for the determination or calculation of, any amount to be included under subsection (1).
4
Regulations may—
a
provide for inclusion of an amount under this section in the calculation of an award of universal credit—
i
to end at a prescribed time, or
ii
not to start until a prescribed time;
b
provide for the manner in which a claimant's needs or circumstances are to be determined.