PART 7N.I.THE BENEFIT CAP

Exceptions - earningsN.I.

82.—(1) The benefit cap does not apply to an award of universal credit in relation to an assessment period where—

(a)the claimant's earned income, or if the claimant is a member of a couple, the couple's combined earned income, is equal to or exceeds [F1the amount of earnings that a person would be paid at the hourly rate set out in regulation 4 of the National Minimum Wage Regulations 2015 for 16 hours per week, converted to a monthly amount by multiplying by 52 and dividing by 12]; or

(b)the assessment period falls within a grace period or is an assessment period in which a grace period begins or ends.

(2) A grace period is a period of 9 consecutive months that begins on the most recent of the following days in respect of which the condition in paragraph (3) is met—

(a)a day falling within the current period of entitlement to universal credit which is the first day of an assessment period in which the claimant's earned income (or, if the claimant is a member of a couple, the couple's combined earned income) is less than the amount mentioned in paragraph (1)(a);

(b)a day falling before the current period of entitlement to universal credit which is the day after a day on which the claimant has ceased paid work.

(3) The condition is that, in each of the 12 months immediately preceding that day, the claimant's earned income or, if the claimant was a member of a couple, the couple's combined earned income was equal to or [F2exceeded—

(a)in any month beginning before 1st April 2017, £430; and

(b)in any other case, the amount calculated in accordance with paragraph (1)(a).]

(4) “Earned income” for the purposes of this regulation does not include income a person is treated as having by virtue of regulation 63 (minimum income floor).

Textual Amendments

F1Words in reg. 82(1)(a) substituted (coming into force in accordance with reg. 1 of the amending Rule) by The Universal Credit (Benefit Cap Earnings Exception) (Amendment) Regulations (Northern Ireland) 2017 (S.R. 2017/145), regs. 1, 2(3)(a)

F2Reg. 82(3)(a)(b) and word substituted for words (coming into force in accordance with reg. 1 of the amending Rule) by The Universal Credit (Benefit Cap Earnings Exception) (Amendment) Regulations (Northern Ireland) 2017 (S.R. 2017/145), regs. 1, 2(3)(b)