Section 5: Financial conditions
38.Section 5 explains the financial conditions. Subsection (1) provides that entitlement is dependent on a claimant’s capital and income. Subsection (1)(a) provides for the capital thresholds for entitlement to universal credit to be set out in regulations. Subsection (1)(b) also allows for regulations to prescribe a minimum amount of universal credit that is payable, below which there is no entitlement. This could be used so that a person who would be entitled to only a very small amount of universal credit would not be entitled.
39.Subsection (2) provides that in the case of joint claimants their combined capital must be below the prescribed thresholds, and provides an equivalent power to prescribe a minimum amount that is payable.
40.The first regulations made under subsections (1)(a) and (2)(a) will be subject to the affirmative resolution procedure.