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8. After regulation 10 of the Universal Credit (Transitional Provisions) Regulations 2014(1) insert the following—
10A.—(1) This regulation applies in relation to the calculation of an award of universal credit (the “current award”) where the claimant has received a payment of arrears of benefit, or a payment made to compensate for arrears due to the non-payment of benefit, of £5,000 or more, and the following conditions are met—
(a)the payment—
(i)is received during the current award; or
(ii)was received during an award of an existing benefit or state pension credit (the “earlier award”) and the claimant became entitled to the current award within one month of the date of termination of the earlier award;
(b)in the case of a payment falling within sub-paragraph (a)(i), it would be disregarded from the calculation of the claimant’s capital if the claimant were entitled to an existing benefit or state pension credit;
(c)in the case of a payment falling within sub-paragraph (a)(ii), it was disregarded from the calculation of the claimant’s capital for the purposes of the earlier award; and
(d)the period of entitlement to benefit to which the payment relates commences before the first date on which, by virtue of section 33 of the Act (abolition of benefits), no claimant is entitled to an existing benefit.
(2) Where this regulation applies, notwithstanding anything in the Universal Credit Regulations, the payment is to be disregarded from the calculation of the claimant’s capital for 12 months from the date of receipt of the payment, or until the termination of the current award (if later).”.
S.I. 2014/1230, to which there are amendments not relevant to these Regulations.
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