PART 2 E+W Determinations in respect of an individual's financial resources

CHAPTER 3 E+W Calculation of income

Deductions in respect of rent or cost of living accommodation E+W

28.—(1) Paragraphs (2) to (5) apply only if the individual is a householder.

(2) Subject to paragraph (4), in calculating the disposable income of the individual—

(a) the net rent payable by the individual in respect of their main or only dwelling must be deducted; and

(b) where the individual resides in more than one dwelling, the Director must decide which is the main dwelling.

(3) In calculating the amount of net rent payable, there must be deducted—

(a) any housing benefit paid under section 130 of the Social Security Contributions and Benefits Act 1992 M1 or section 129 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

(b) any proceeds of sub-letting any part of the premises; and

(c) an amount reasonably attributable to any person other than the individual, their partner or any dependant of the individual, who is accommodated in the premises otherwise than as a sub-tenant.

(4) Where the amount of net rent paid by the individual is less than the amount of net rent payable, the Director may deduct the lesser amount where the Director considers it is reasonable to do so in the circumstances, having regard to—

(a) the likelihood that the individual will recommence payment of the full contractual amount in the future;

(b) the relationship of the individual with the landlord; and

(c) any agreement with the landlord or mortgagee for payment deferral.

(5) Paragraph (4) does not apply where the individual makes an application in respect of a matter described in paragraph 33 (loss of home) of Part 1 of Schedule 1, to the extent that—

(a) the matter concerns possession of the individual's home; and

(b) the individual is resisting a court order for such possession.

(6) If the individual is not a householder, a reasonable amount in respect of the cost of their living accommodation must be deducted.

(7) If no deduction has been made under regulation 25(2), the maximum amount to be deducted under paragraph (2) or (4) or, as the case may be, (6), must be £545.

(8) In this regulation—

“householder”, in relation to domestic premises, means a person who—

(a)

owns the dwelling (as a freeholder or leaseholder); or

(b)

rents accommodation at that address (as a tenant or sub-tenant); and

“net rent” means—

(a)

any monthly rent; and

(b)

any monthly instalment (whether of interest or capital) in respect of a debt secured by a mortgage or charge on the property.

Marginal Citations

M1 1992 c. 4. Section 130 is to be repealed by Part 1 of Schedule 14 to the Welfare Reform Act 2012 at a date to be appointed.