2016 No. 909
Social Security

The Benefit Cap (Housing Benefit and Universal Credit) (Amendment) Regulations 2016

Made
Laid before Parliament
Coming into force
The Secretary of State for Work and Pensions makes the following Regulations in exercise of the powers conferred by sections 96(1), (4)(a), (c) and (g), (5), (5B) and (10) and 97(1) of the Welfare Reform Act 20121 and section 34 of the Welfare Reform and Work Act 20162.
The Social Security Advisory Committee has agreed that proposals in respect of regulations 2(2) and (4) and 3(3) and (6), and regulations 1, 2(1) and 3(1) insofar as they relate to the foregoing provisions, should not be referred to it3.
The other provisions in this instrument have not been referred to the Social Security Advisory Committee because they are made before the end of the period of 6 months beginning with the coming into force of section 96(5) and (5B) of the Welfare Reform Act 20124 and section 34 of the Welfare Reform and Work Act 2016.
In respect of regulations 2 and 4, and regulation 1 insofar as it relates to those regulations, in accordance with section 176(1) of the Social Security Administration Act 19925 the Secretary of State has consulted with organisations appearing to him to be representative of the authorities concerned.

Citation, commencement and effect1.

(1)

These Regulations may be cited as the Benefit Cap (Housing Benefit and Universal Credit) (Amendment) Regulations 2016 and come into force on 7th November 2016.

(2)

Where the amendments made by regulation 3 or 5 apply in respect of an existing award of universal credit, they have effect for the purposes of that award—

(a)

on 7th November 2016 if there is an assessment period for that award that begins on that day; or

(b)

if sub-paragraph (a) does not apply, on the first day of the next assessment period for the award beginning after 7th November 2016.

(3)

For the purposes of this regulation, “existing award of universal credit” means an award of universal credit that exists on 7th November 2016.

Amendments to the Housing Benefit Regulations 20062.

(1)

The Housing Benefit Regulations 20066 are amended as follows.

(2)

For regulation 75B (determination of whether a benefit cap applies) substitute—

“Determinations75B.

(1)

A relevant authority may make a determination as to whether the benefit cap applies or whether to change the amount of any reduction made in accordance with regulation 75D (reduction of housing benefit) but a relevant authority is not required to do so unless paragraph (2) applies.

(2)

This paragraph applies where a relevant authority receives notification from the Secretary of State that—

(a)

the benefit cap may apply;

(b)

there has been a change in the amount of a welfare benefit to which a claimant is entitled; or

(c)

there has been a change to the relevant amount which may affect the amount of housing benefit to which a claimant is entitled.”.

(3)

After regulation 75C (manner of calculating the amount of welfare benefits) insert—

“Determination of the relevant amount75CA.

(1)

The relevant amount is determined by dividing the applicable annual limit by 52 and rounding that amount by disregarding any amount of less than half a penny and treating any amount of half a penny or more as a whole penny.

(2)

The applicable annual limit is—

(a)

£15,410 in the case of single claimants resident in Greater London;

(b)

£23,000 in the case of all other claimants resident in Greater London;

(c)

£13,400 in the case of single claimants not resident in Greater London;

(d)

£20,000 in the case of all other claimants not resident in Greater London.

(3)

For the purposes of section 96 of the 2012 Act (benefit cap) and this regulation a claimant is resident in Greater London if—

(a)

the dwelling that the claimant normally occupies as the claimant’s home is in Greater London; or

(b)

where the claimant is treated as occupying more than one dwelling as the claimant’s home pursuant to regulation 7(6) (circumstances in which a person is or is not to be treated as occupying a dwelling as his home), one of those dwellings is in Greater London.”.

(4)

In regulation 75F (exception to the benefit cap: receipt of specified benefit), after paragraph (1)(g) insert—

“(h)

the claimant, the claimant’s partner, or a young person for whom the claimant or the claimant’s partner is responsible, is entitled to a carer’s allowance under section 70 of the Act;

(i)

the claimant, the claimant’s partner or a young person for whom the claimant or the claimant’s partner is responsible, is entitled to a guardian’s allowance under section 77 of the Act.”.

(5)

In regulation 75G (interpretation)—

(a)

in the definition of “relevant amount”, for the words from “is” to the end substitute “means the amount determined in accordance with regulation 75CA”; and

(b)

omit the definition of “welfare benefit”.

Amendments to the Universal Credit Regulations 20133.

(1)

The Universal Credit Regulations 20137 are amended as follows.

(2)

In regulation 79 (circumstances where the benefit cap applies)—

(a)

in paragraph (1) after “relevant amount” insert “determined under regulation 80A (relevant amount)”;

(b)

omit paragraphs (3) and (4).

(3)

In regulation 80 (manner of determining total entitlement to welfare benefits) after paragraph (2) insert—

“(2A)

Where the welfare benefit is housing benefit under section 130 of the Contributions and Benefits Act, the amount to be used is nil.”.

(4)

After regulation 80 insert—

“Relevant amount80A.

(1)

The relevant amount is determined by dividing the applicable annual limit by 12.

(2)

The applicable annual limit is—

(a)

£15,410 for a single claimant resident in Greater London who is not responsible for a child or qualifying young person;

(b)

£23,000 for—

(i)

joint claimants where either joint claimant is resident in Greater London;

(ii)

a single claimant resident in Greater London who is responsible for a child or qualifying young person;

(c)

£13,400 for a single claimant not resident in Greater London who is not responsible for a child or qualifying young person;

(d)

£20,000 for—

(i)

joint claimants not resident in Greater London;

(ii)

a single claimant not resident in Greater London who is responsible for a child or qualifying young person.

(3)

For the purposes of section 96 of the Act (benefit cap) and this regulation a claimant is resident in Greater London if—

(a)

where the housing costs element is included in the claimant’s award of universal credit—

(i)

accommodation in respect of which the claimant meets the occupation condition is in Greater London; or

(ii)

the claimant is in receipt of housing benefit in respect of a dwelling (which has the meaning given in section 137 of the Contributions and Benefits Act) in Greater London;

(b)

where the housing costs element is not included in the claimant’s award of universal credit—

(i)

accommodation that the claimant normally occupies as their home is in Greater London; or

(ii)

where there is no accommodation that the claimant normally occupies as their home, the Jobcentre Plus office to which the Secretary of State has allocated their claim is in Greater London.”.

(5)

In regulation 81(3) (reduction of universal credit) for “applicable under regulation 79(3)” substitute “determined under regulation 80A”.

(6)

In regulation 83(1) (exceptions – entitlement or receipt of certain benefits), after sub-paragraph (h) insert—

“(i)

a claimant, or a qualifying young person for whom a claimant is responsible, is entitled to carer’s allowance;

(j)

the carer element is included in the award of universal credit;

(k)

a claimant is entitled to guardian’s allowance under section 77 of the Contributions and Benefits Act.”.

Amendment to the Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 20014.

In regulation 8 (date from which a decision superseding an earlier decision takes effect) of the Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 20018, in paragraph (14F)(b), for “regulation 75G of the Housing Benefit Regulations” substitute “section 96(10) of the Welfare Reform Act 2012 (benefit cap)”.

Amendments to the Universal Credit (Transitional Provisions) Regulations 20145.

In regulation 9 of the Universal Credit (Transitional Provisions) Regulations 2014 (treatment of ongoing entitlement to certain benefits: benefit cap)9—

(a)

in paragraph (1)(a) for “regulation 79(4) of the Universal Credit Regulations (circumstances where the benefit cap applies)” substitute “section 96(10) of the Act (benefit cap)”;

(b)

in paragraph (2) for “paragraph (4) of that regulation” substitute “section 96(10) of the Act”.

Signed by authority of the Secretary of State for Work and Pensions.

Caroline Nokes
Parliamentary Under-Secretary of State,
Department for Work and Pensions
EXPLANATORY NOTE
(This note is not part of the Regulations)

These Regulations amend the Housing Benefit Regulations 2006 (S.I. 2006/213) (the “Housing Benefit Regulations”), the Universal Credit Regulations 2013 (S.I. 2013/376) (the “Universal Credit Regulations”), the Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001 (S.I. 2001/1002) and the Universal Credit (Transitional Provisions) Regulations 2014 (S.I. 2014/1230). These Regulations make amendments in connection with the Welfare Reform and Work Act 2016 (“the 2016 Act”) and introduce new exemptions to the benefit cap.

Regulation 1 provides that the Regulations come into force on 7th November 2016. Where there is an existing award of universal credit on 7th November 2016, the regulations relating to universal credit have effect on that date if a claimant’s assessment period begins on that day and, if it does not, on the first day of a claimant’s next assessment period following 7th November 2016.

Regulation 2 amends the Housing Benefit Regulations by:

  • substituting regulation 75B (determination of whether a benefit cap applies), which makes provision about when a local authority determines whether a benefit cap applies;

  • inserting a new regulation 75CA (determination of the relevant amount), which sets out how the relevant amount is determined and defines when someone will be resident in Greater London. The relevant amount is the weekly level of the benefit cap that applies in housing benefit. Regulation 75CA sets out that the relevant amount is calculated by dividing the annual limit that applies to a claimant by 52 and rounding that amount to the nearest penny;

  • introducing two new exemptions into regulation 75F (exception to the benefit cap: receipt of specified benefit) so that the benefit cap does not apply where the claimant, the claimant’s partner or a young person for whom the claimant or the claimant’s partner is responsible is entitled to carer’s allowance or guardian’s allowance; and

  • making consequential amendments to regulation 75G (interpretation).

Regulation 3 makes similar amendments to the Universal Credit Regulations by:

  • amending regulation 80 (manner of determining total entitlement to welfare benefits) so that, when determining entitlement to welfare benefits, no amount of housing benefit is to be included;

  • inserting a new regulation 80A (relevant amount), which sets out how the relevant amount is determined. The relevant amount is the monthly level of the benefit cap that will be applied for universal credit. Regulation 80A sets out that the relevant amount is calculated by determining which annual limit applies to a claimant and dividing the annual limit that applies by 12. Regulation 80A also defines when a person is resident in Greater London;

  • introducing three new exemptions into regulation 83(1) (exceptions - entitlement or receipt of certain benefits) so that the benefit cap does not apply where: a claimant or a young person for whom a claimant is responsible is entitled to carer’s allowance; the carer element is included in the award of universal credit; or a claimant is entitled to guardian’s allowance; and

  • making consequential amendments to regulations 79 (circumstances where the benefit cap applies) and 81(3) (reduction of universal credit).

Regulation 4 makes a consequential amendment to regulation 8 (date from which a decision superseding an earlier decision takes effect) of the Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001.

Regulation 5 makes a consequential amendment to regulation 9 (treatment of ongoing entitlement to certain benefits: benefit cap) of the Universal Credit (Transitional Provisions) Regulations 2014.

An impact assessment has been produced and copies may be obtained from the Legislation Team in the Department for Work and Pensions, Caxton House, Tothill Street, London SW1 9NA or from: https://www.gov.uk/government/publications/welfare-reform-and-work-act-impact-assessment-for-the-benefit-cap.