The Universal Credit and Miscellaneous Amendments Regulations 2014

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend a number of different regulations relating to social security. The amendments relate to the new social security benefits introduced under the Welfare Reform Act 2012 (c.5) - in particular, Universal Credit and the new contributions-based Jobseeker’s Allowance and Employment and Support Allowance.

Regulation 2 makes various amendments to the Universal Credit Regulations 2013 (S.I. 2013/376) (“the Universal Credit Regulations”).

Regulation 2(2) inserts a definition which provides that Scottish and Welsh enactments are covered by the Universal Credit Regulations.

Regulation 2(3) extends the bereavement run-on provision in regulation 37 of the Universal Credit Regulations so that it also applies following the death of a non-dependant who, immediately prior to their death, was a member of a claimant’s extended benefit unit (within the meaning of paragraph 9(2) of Schedule 4 to those Regulations).

Regulation 2(4) makes an amendment which applies to claimants who are a risk to themselves or others and to claimants with a life-threatening disease. It changes the circumstances in which those claimants can be treated as having limited capability for work. They can only be so treated where they have had an assessment of their capability for work. Regulation 2(5) makes a similar amendment which applies to claimants who are a risk to themselves or others in relation to the circumstances in which those claimants can be treated as having limited capability for work or work-related activity.

Regulation 2(6) updates the definition of “registered social worker” used in regulation 98 of the Universal Credit Regulations, and regulations 3(2) and 4(2) make equivalent updates to the same definition in the Jobseeker’s Allowance Regulations 2013 (S.I. 2013/378) (“the Jobseeker’s Regulations”) and the Employment and Support Allowance Regulations (S.I. 2013/379) (“the Employment and Support Allowance Regulations”).

Regulation 2(7) amends the circumstances in which work search requirements and work availability requirements cannot be imposed on a claimant. Those requirements cannot be imposed when the Secretary of State considers it would be unreasonable to impose them because the claimant is unfit for work, has a domestic emergency (or similar temporary circumstances) or is carrying out preparation for work. The amendment allows for a work search requirement to be imposed without also imposing a work availability requirement, and vice versa.

Regulation 2(8) to (11) alters two periods which are used to determine whether a claimant should have their benefit sanctioned (reduced). Where a claimant fails to meet more than one of their requirements in relation to Universal Credit, the length of the sanction can be increased for the second failure. There is no increase in length if the two failures occurred within 15 days of each other or if they occurred at least 366 days apart. The 15 day period is changed to 14 days and the 366 day period is changed to 365. Regulation 3(3) to (6) makes the same change for the Jobseeker’s Regulations and regulation 4(3) and (4) makes the same change for the Employment and Support Allowance Regulations.

Regulation 2(12) changes provisions relating to hardship, which is an amount of benefit a claimant can be paid when they have been sanctioned. A sanction can reduce a claimant’s benefit by either 100% or 40%. The amendment provides that a claimant in hardship can only get a hardship payment where they have a sanction at 100%.

Regulation 2(13) amends the provision in Schedule 4 to the Universal Credit Regulations which allows for any rent or service liability charged to a renter on a weekly basis (or on any other basis other than monthly) to be converted into a monthly figure. The amendments insert a formula allowing for the conversion of a two-weekly rent or service charge liability into a monthly figure. They also clarify that, in any case where a renter with a weekly or multi-weekly liability has the benefit of rent or service charge free weeks, the conversion to a monthly figure must be done based on a standard 52 week year. Regulation 2(14)(e) makes equivalent amendments to Schedule 5 to the Universal Credit Regulations, which contains equivalent conversion provisions in relation to service charges paid by owner-occupiers.

The remainder of regulation 2(14) makes further amendments to Schedule 5 to the Universal Credit Regulations, which sets out how entitlement to the housing costs element of Universal Credit is to be calculated for owner-occupiers. For owner-occupiers who do not have a standard mortgage but have entered into alternative finance arrangements, the amendments clarify how the purchase price taken into account in their Universal Credit assessment is to be calculated. They also provide for variations in the amount owing under such alternative finance arrangements to be taken into account on an annual review date, in the same way as for standard mortgages. They also clarify when the standard interest rate which is used in calculating housing costs entitlement for owner-occupiers is to be adjusted, based on changes to the Bank of England’s average mortgage rate.

Regulation 3(7) makes a change to the Jobseeker’s Regulations in relation to bounty payments, which are payments to armed forces reservists, lifeboat crews and others. The change means that bounty payments made more than a year apart are not included as earnings. Regulation 4(5)(b) makes the same change to the Employment and Support Allowance Regulations.

Regulation 4(5)(a) makes a minor amendment to the Employment and Support Allowance Regulations to align the drafting with similar provisions in other working age benefit legislation.

Regulation 5 amends the Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance (Claims and Payments) Regulations 2013 (S.I. 2013/380) by removing provisions preventing the recovery of an eligible loan or integration loan where the Secretary of State is recovering a Social Fund loan or benefit overpayment.

Regulation 6 amends the Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance (Decisions and Appeals) Regulations 2013 (S.I. 2013/381) to allow a universal credit decision to be superseded where the Secretary of State determines that the claimant is to be treated as having limited capability for work or for work and work-related activity.

An impact assessment has not been produced for this instrument as it has no impact on business and civil society organisations. The instrument has no impact on the public sector.