EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Universal Credit (Transitional Provisions) Regulations 2013 (S.I. 2013/386). They also make amendments to the Housing Benefit Regulations 2006 (S.I. 2006/213) and the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 (S.I. 2006/214) (“the Housing Benefit (SPC) Regulations”) which are consequential upon the introduction of universal credit.

The amendments made by regulation 3 allow for claimants to be entitled to both universal credit and housing benefit, where the housing benefit is paid in respect of exempt accommodation (for which the universal credit element for housing costs is not payable).

Regulation 4 amends the criteria for entitlement to claim universal credit during the first stage of transition from existing benefits. It allows for claims by persons who have a current account with a credit union (in addition to certain other types of account).

Regulation 5 relates to a person who claims universal credit, but is not entitled for the first assessment period because of the level of their earned income. The effect of the amendment is that a person in this position will be able to benefit from provisions in the Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance (Claims and Payments) Regulations 2013 (S.I. 2013/380) under which they might become entitled to universal credit without a further claim if their income falls during the following 6 months.

Regulation 6 removes the temporary exemption for universal credit claimants from the application of the benefit cap. However, the benefit cap will not apply to existing claimants until their next assessment period starting on or after the date on which these Regulations come into force.

Regulation 7 makes amendments to the Housing Benefit Regulations 2006 to allow for circumstances where a claimant or a claimant’s partner is in receipt of universal credit and housing benefit at the same time.

Regulation 8 amends the Housing Benefit (SPC) Regulations to ensure that where a claimant is on universal credit and is also receiving housing benefit to cover some or all of their housing costs, the Housing Benefit Regulations 2006, rather than the Housing Benefit (SPC) Regulations, apply.

An assessment has been made of the introduction of universal credit. Copies of the impact assessment may be obtained from the Better Regulation Unit of the Department for Work and Pensions, 2D Caxton House, Tothill Street, London SW1 9NA or from the GOV.UK website at www.gov.uk/government/publications/universal-credit-impact-assessment.