The Universal Credit (Housing Costs Element for claimants aged 18 to 21) (Amendment) Regulations (Northern Ireland) 2017

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Universal Credit Regulations (Northern Ireland) 2016 (S.R. 2016 No. 216) (“the 2016 Regulations”) so that certain claimants aged 18 to 21 are not entitled to the housing costs element of universal credit.

Regulation 2(2) amends regulation 7 (rounding) of the 2016 Regulations to provide that, when calculating the level of the threshold in paragraph 4C of Schedule 4 of the 2016 Regulations (which is inserted by regulation 2(3)(c)), that amount is to be rounded down to the nearest whole pound. It also makes a technical amendment to that provision.

Regulation 2(3)(a) makes a minor technical amendment.

Regulation 2(3)(b) inserts new paragraphs 4A to 4C into Schedule 4 of the 2016 Regulations. Schedule 4 makes provision for the housing costs element of universal credit and applies to “renters”.

Article 16(1) of the Welfare Reform (Northern Ireland) Order 2015 (S.I. 2015/2006 (N.I. 1)) provides for an amount to be included in an award of universal credit for housing costs. Paragraph 4A provides that Article 16(1) does not apply to a renter who: is aged 18 to 21; falls within Article 27 of the Welfare Reform (Northern Ireland) Order 2015 (claimants subject to all work-related requirements); and is a single person.

Paragraph 4B prescribes a number of circumstances in which paragraph 4A does not apply (and so where a claimant will be entitled to housing costs). The circumstances include where, in the opinion of the Department, it is inappropriate for the renter to live with each of his or her parents, including (but not limited to) where there would be a serious risk to the renter’s physical or mental health, or the renter would suffer significant harm, if the renter lived with them (paragraph 4B(1)(e)).

Paragraph 4C prescribes additional circumstances in which Paragraph 4A does not apply. Paragraph 4C(1) provides that it does not apply to a renter in an assessment period in which the renter’s earned income is equal to or exceeds a prescribed amount. The prescribed amount is the monthly amount a person would earn whilst working 16 hours per week at the National Minimum Wage (at the rate for 18 to 20 year olds (paragraph 4C(1)(a)) or, where the renter is employed under a contract of apprenticeship, the rate for apprentices (paragraph 4C(1)(b)).

Paragraph 4C(2) provides for a 6 month exemption during which paragraph 4A does not apply. The exemption applies where a renter’s earnings in each of the 6 months set out in paragraph 4C(3) are equal to or more than the threshold. The exemption begins on the date set out in paragraph 4C(2). The threshold is, similarly to paragraph 4C(1), the monthly amount a person would earn whilst working 16 hours per week at the National Minimum Wage (at the rate for 18 to 20 year olds or, where the renter was employed under a contract of apprenticeship for the duration of the relevant 6 month period, the rate for apprentices).

Regulation 3 is a further saving provision with effect that, the Regulations do not apply if the claimant was entitled to housing benefit immediately before the day on which the Regulations would otherwise apply. The saving ceases to apply to an award with effect from the day after the day on which it ceases to include the housing costs element.

An impact assessment has not been produced as this instrument has no impact on business or civil society organisations.