The Social Security (Claims and Payments) Regulations 1987

Regulation 35

SCHEDULE 9 DEDUCTIONS FROM BENEFIT AND DIRECT PAYMENT TO THIRD PARTIES

Interpretation

1.  In this Schedule–

• “family” in the case of a claimant who is not a member of a family means that claimant;

• “the Housing Benefit Regulations” means the Housing Benefit (General) Regulations 1987(1);

• “housing costs” means those costs specified in paragraph 1(a), (b), (c) (but in the case of ground rent or feu duty only when paid with service charges), (d), (e) and (f) of Schedule 3 to the Income Support Regulations;

• “income support” means income support under Part II of the Social Security Act 1986;

• “the Income Support Regulations” means the Income Support (General) Regulations 1987(2);

• “miscellaneous accommodation costs” has the meaning assigned by paragraph 4(1);

• “mortgage payment” means a payment attributable to interest on a mortgage which falls to be met under paragraph 7 of Schedule 3 to the Income Support Regulations (interest on loans to acquire an interest in the home); and for the purposes of this Schedule includes interest payable on loans which falls to be met under paragraph 8 of that Schedule (interest on loans for repairs and improvements to the home);

• “specified benefit” means income support either alone or together with any unemployment, sickness or invalidity benefit, retirement pension or severe disablement allowance which is paid by means of the same instrument of payment;

• “personal allowance for a single claimant aged not less than 25 years” means the amount specified in paragraph 1(1)(c) of column 2 of Schedule 2 to the Income Support Regulations;

• “prisoner” means a person detained in custody pending trial or sentence;

• “rent” has the meaning assigned to it in the Housing Benefit Regulations and, for the purposes of this Schedule–

  (a)

  includes any water charges which are paid with or as part of the rent;

  (b)

  where in a particular case a claimant’s rent includes elements which would not otherwise fall to be treated as rent, references to rent shall include those elements; and

  (c)

  references to “rent” include references to part only of the rent; and

• “water charges” means charges or rates in respect of water and, except in Scotland, of sewerage and allied environmental services.

General

2.—(1) The specified benefit may be paid direct to a third party in accordance with the following provisions of this Schedule in discharge of a liability of the beneficiary or his partner to that third party in respect of–

(a) housing costs;

(b) miscellaneous accommodation costs;

(c) service charges for fuel, and rent not falling within head (a) above;

(d) fuel costs; and

(e) water charges.

(2) No payment to a third party may be made under this Schedule unless the amount of the beneficiary’s award of the specified benefit is not less than the total of the amount otherwise authorised to be so paid under this Schedule plus 10 pence.

(3) A payment to be made to a third party under this Schedule shall be made, at such intervals as the Secretary of State may direct, on behalf of and in discharge (in whole or in part) of the obligation of the beneficiary or, as the case may be, of his partner, in respect of which the payment is made.

Housing costs

3.—(1) Subject to sub-paragraph (4) and paragraph 8, where a beneficiary who has been awarded the specified benefit or his partner is in debt for any item of housing costs which continues to be applicable to the beneficiary in the determination of his applicable amount, the adjudicating authority may, if in its opinion it would be in the interests of the family to do so, determine that the amount of the award of the specified benefit (“the amount deductible”) calculated in accordance with the following sub-paragraphs shall be paid in accordance with sub-paragraph 2(3).

(2) Subject to sub-paragraph (3), the amount deductible shall be such weekly aggregate of the following as is appropriate:–

(a) in respect of any debt to which sub-paragraph (1) applies, or where the debt owed is in respect of an amount which includes more than one item of housing costs, a weekly amount equal to 5 per cent. of the personal allowance for a single claimant aged not less than 25 (that 5 per cent. being, where it is not a multiple of 5 pence, rounded to the next higher such multiple) for such period as it is necessary to discharge that debt, so however that in aggregate the weekly amount calculated under this sub-paragraph shall not exceed 3 times that 5 per cent.;

(b) for each such debt–

(i) in respect of mortgage payments, the weekly amount of the mortgage payment in that case; and

(ii) for any other housing item, the actual weekly cost necessary in respect of continuing needs for the relevant items,

and the adjudicating authority may direct that, when the debt is discharged, the amount determined under sub-paragraph (b) shall be the amount deductible.

(3) Where the aggregate amount calculated under sub-paragraph (2) is such that paragraph 2(2) would operate to prevent any payment under this paragraph being made that aggregate amount shall be adjusted so that 10 pence of the award is payable to the beneficiary.

(4) Sub-paragraph (1) shall not apply to any debt which is either–

(a) in respect of mortgage payments and the beneficiary or his partner has in the preceding 12 weeks paid sums equal to 8 week’s mortgage payments due in that period;

or

(b) for any other item of housing costs and is less than half the annual amount due to be paid by the beneficiary or his partner in respect of that item,

unless, in either case, in the opinion of the adjudicating authority it is in the overriding interests of the family that paragraph (1) should apply.

Miscellaneous accommodation costs

4.—(1) Where an award of income support includes an amount under Schedule 4 (persons in residential care and nursing homes) or Schedule 5 (persons in board and lodging accommodation or hostels) or paragraph 13 (residential accommodation) or 14 (Polish resettlement) or 15 (resettlement units) of Schedule 7 to the Income Support Regulations “miscellaneous accommodation costs” the adjudicating authority may determine that an amount of the specified benefit shall be paid direct to the person or body to whom the charges in respect of that accommodation are payable, but, except in a case to which paragraph 14 or 15 of Schedule 7 to the Income Support Regulations apply or where the accommodation is a hostel run by a voluntary organisation and which is akin to a resettlement unit or which provides facilities for alcoholics or drug addicts, only if the adjudicating authority is satisfied that the beneficiary has failed to budget for the charges and that it is in the interests of the family.

(2) In relation to miscellaneous accommodation costs the amount of any payment of income support to a third party determined under the above paragraphs shall be–

(a) the amount of the award under paragraph 1(1)(a) of Schedule 4 to the Income Support Regulations excluding any increase under paragraph 2(2) of that Schedule; or

(b) the amount of the award under paragraph 1(1)(a) of Schedule 5 to those Regulations excluding any increase under paragraph 2 of that Schedule; or

(c) the amount of the award under paragraph 13(a), 14 or, as the case may be, 15 of Schedule 7 to those Regulations excluding the amount allowed by those paragraphs in respect of personal expenses,

as the case may be.

Service charges for fuel, and rent not falling within paragraph 2(1)(a)

5.—(1) Subject to paragraph 8, this paragraph applies to a beneficiary if–

(a) he has been awarded the specified benefit; and

(b) he or his partner is entitled to housing benefit in the form of a rent rebate or rent allowance; and

(c) he or his partner has arrears of rent which equal or exceed four times the full weekly rent payable and–

(i) there are arrears of rent in respect of at least 8 weeks and the landlord has requested the Secretary of State to make payments in accordance with this paragraph; or

(ii) there are arrears of rent in respect of less than 8 weeks and in the opinion of the adjudicating authority it is in the overriding interests of the family that payments shall be made in accordance with this paragraph.

(2) For the purposes of sub-paragraph (1) arrears of rent do not include–

(a) the 20 per cent. of eligible rates excluded from a rent allowance under regulation 61 of the Housing Benefit Regulations (maximum housing benefit); or

(b) any amount which falls to be deducted when assessing a person’s rent rebate or rent allowance under regulation 63 of those Regulations (non-dependants).

(3) Subject to sub-paragraph (4), the adjudicating authority shall determine that a weekly amount of the specified benefit awarded to the beneficiary shall be paid to his or his partner’s landlord if–

(a) he or his partner is entitled to housing benefit and in calculating that benefit a deduction is made under regulation 10(3) of the Housing Benefit Regulations in respect of either or both of water charges or service charges for fuel; and

(b) the amount of the beneficiary’s award is not less than the amount of the deduction,

and the amount to be so paid shall be equal to the amount of the deduction.

(4) Sub-paragraph (3) shall not apply to a deduction in respect of a service charge for fuel if that charge is one such as is mentioned in paragraph 5(5) of Schedule 1 to the Housing Benefit Regulations (variable service charges for fuel) unless the adjudicating authority is satisfied on the evidence available at the date of the determination that the amount of the charge does not normally alter more than twice in any one year.

(5) Where the aggregate amount calculated in accordance with sub-paragraphs 5(3) and (6) exceeds a sum equal to 25 per cent. of the applicable amount for the family as is awarded under heads (a) to (d) of regulation 17 (applicable amounts) or heads (a) to (f) of regulation 18(1) (polygamous marriages) of the Income Support Regulations a determination under this paragraph shall be made only with the consent of the beneficiary.

(6) In a case to which sub-paragraph (1) applies the adjudicating authority may determine that a weekly amount of the specified benefit awarded to that beneficiary equal to 5 per cent. of the personal allowance for a single claimant aged not less than 25 (that 5 per cent. being, where it is not a multiple of 5 pence, rounded to the next higher such multiple) shall be paid to his landlord until the debt is discharged.

Fuel costs

6.—(1) Subject to sub-paragraph (6) and paragraph 8, where a beneficiary who has been awarded the specified benefit or his partner is in debt for any item of mains gas or mains electricity (“fuel item”) to an amount not less than the rate of personal allowance for a single claimant aged not less than 25 and continues to require that fuel, the adjudicating authority, if in its opinion it would be in the interests of the family to do so, may determine that the amount of the award of the specified benefit (“the amount deductible”) calculated in accordance with the following paragraphs shall be paid to the person or body to whom payment is due in accordance with paragraph 2(3).

(2) The amount deductible shall, in respect of any fuel item, be such weekly aggregate of the following as is appropriate:–

(a) subject to sub-paragraph (3), in respect of the debt to which sub-paragraph (1) applies (“the original debt”), a weekly amount equal to 10 per cent. of the personal allowance for a single claimant aged not less than 25 (that 10 per cent. being, where it is not a multiple of 5 pence, rounded to the next higher such multiple) and increased, where appropriate, in accordance with sub-paragraph (5) for such period as is necessary to discharge the original debt, so however that the amount, or, where an original debt remains outstanding in respect of more than one fuel item, the aggregate of the amounts, calculated under this sub-paragraph shall not exceed three times 5 per cent. of the personal allowance for a single claimant aged not less than 25;

(b) except where current consumption is paid for by other means (for example pre-payment meter), an amount equal to the estimated average weekly cost necessary to meet the continuing needs for that fuel item, varied, when appropriate, in accordance with sub-paragraph (4)(a).

(3) Where–

(a) an original debt remains outstanding in respect of more than one fuel item; or

(b) in any other case the aggregate amount calculated under sub-paragraph (2) exceeds the award of the specified benefit,

sub-paragraph (2)(a) shall apply as if for the figure “10 per cent.” there were substituted the figure “5 per cent.”.

(4) Where an amount is being paid direct to a person or body on behalf of the beneficiary or his partner in accordance with a determination under sub-paragraph (1) and that determination falls to be reviewed–

(a) where since the date of that determination the average weekly cost estimated for the purpose of sub-paragraph (2)(b) has either exceeded or has proved insufficient to meet the actual cost of continuing consumption so that in respect of the continuing needs for that fuel item the beneficiary or his partner is in credit or, as the case may be, a further debt has accrued, the adjudicating authority may determine that the weekly amount calculated under that paragraph shall, for a period of 26 weeks, be adjusted so as to take account of that credit or further debt;

(b) where an original debt in respect of any fuel item has been discharged the adjudicating authority may determine that the amount deductible in respect of that fuel item shall be the amount determined under sub-paragraph (2)(b).

(5) Where the beneficiary or his partner has any disregarded income under regulation 36(2) (calculation of net earnings of employed earners), 38(2) (calculation of net profit of self employed earners) or 40(2) (calculation of income other than earnings) of the Income Support Regulations, the weekly amount, or, where an original debt remains outstanding in respect of more than one fuel debt, the aggregate of the weekly amounts deductible under sub-paragraph (2)(a) may be increased by not more than half the amount of the income disregarded.

(6) Subject to paragraph 8 where, before any application of sub-paragraph (5), the aggregate amount calculated in accordance with sub-paragraph (2) exceeds a sum equal to 25 per cent. of the applicable amount for the family as is awarded under heads (a) to (d) of regulation 17 or heads (a) to (f) of regulation 18(1) of the Income Support Regulations, a determination under this paragraph shall be made only with the consent of the beneficiary.

(7) Sub-paragraph (1) shall not apply to any debt where the aggregate amount calculated under sub-paragraph (2) exceeds the award of specified benefit.

Water charges

7.—(1) Subject to sub-paragraph (2) and paragraph 8, where a beneficiary or his partner is liable, whether directly or indirectly, for water charges and is in debt for those charges to an amount not less than half the annual charge the adjudicating authority may determine that a weekly amount of the specified benefit shall be paid to the water undertaker to whom that debt is owed (or to the person or body authorised to collect water charges for that undertaker).

(2) This paragraph does not apply in a case where water charges are paid with rent.

(3) The weekly amount to be paid in accordance with sub-paragraph (1) shall be the aggregate of–

(a) in respect of the debt an amount equal to 5 per cent. of the personal allowance for a single claimant aged not less than 25 years (that 5 per cent. being, where it is not a multiple of 5 pence, rounded to the next higher such multiple); and

(b) an amount equal to the weekly cost necessary to meet the continuing need for water charges.

(4) In this paragraph “water undertaker” has the same meaning as “statutory water undertaker” has in section 11(6) of the Water Act 1973(3) or, in Scotland, the meaning that “water authority” has in section 3 of the Water (Scotland) Act 1980(4).

Maximum amount of payments to third parties

8.—(1) The maximum aggregate amount payable under sub-paragraphs 3(2)(a), 5(6), 6(2)(a) and 7(3)(a) shall not exceed an amount equal to 3 times 5 per cent. of the personal allowance for a single claimant aged not less than 25 years.

(2) The maximum amount payable under sub-paragraphs 5(5) and 6(6) shall not without the consent of the beneficiary, exceed a sum equal to 25 per cent. of so much of the applicable amount for the family as is awarded under heads (a) to (d) of regulation 17 or heads (a) to (f) of regulation 18(1) of the Income Support Regulations.

Priority as between certain debts

9.—(1) Where in any one week more than one of the paragraphs 3 to 7 are applicable to the beneficiary and the amount of the specified benefit which may be made to third parties is insufficient to meet the whole of the liabilities for which provision is there made the following order of priorities shall apply–

(a) any liability mentioned in paragraph 3 (housing costs);

(b) any liability mentioned in paragraph 5 (service charges for fuel and rent not falling within paragraph 2(a));

(c) any liability mentioned in paragraph 6 (fuel costs);

(d) any liability mentioned in paragraph 7 (water charges);

(2) As between liability for items of housing costs liabilities in respect of mortgage payments shall have priority over all other items.

(3) As between liabilities for items of gas or electricity the adjudicating authority shall give priority to whichever liability it considers it would, having regard to the circumstances and to any requests of the beneficiary, be appropriate to discharge.

(4) Where water charges are due to 2 or more water undertakers the adjudicating authority shall give priority to whichever liability it considers it would, having regard to the circumstances and to any requests of the beneficiary, be appropriate to discharge.

(1)

S.I. 1987/1971.

(2)

S.I. 1987/1967.

(3)

1973 c. 37.

(4)

1980 c. 45.