Legalize / United Kingdom / Public General Act

Welfare Reform Act 2012

Type Public General Act

Publication 2012-03-08

State In force

Department Statute Law Database

Source legislation.gov.uk

Reform history JSON API

Part 1 — Universal credit

CHAPTER 1 — Entitlement and awards

Introductory

Universal credit

1

(1) A benefit known as universal credit is payable in accordance with this Part.

(2) Universal credit may, subject as follows, be awarded to—

(a) an individual who is not a member of a couple (a “single person”), or

(b) members of a couple jointly.

(3) An award of universal credit is, subject as follows, calculated by reference to—

(a) a standard allowance,

(b) an amount for responsibility for children or young persons,

(d) amounts for other particular needs or circumstances.

Claims

2

(1) A claim may be made for universal credit by—

(a) a single person, or

(b) members of a couple jointly.

(2) Regulations may specify circumstances in which a member of a couple may make a claim as a single person.

Entitlement

Standards of decision-making

3

(1) A single claimant is entitled to universal credit if the claimant meets—

(a) the basic conditions, and

(b) the financial conditions for a single claimant.

(2) Joint claimants are jointly entitled to universal credit if—

(a) each of them meets the basic conditions, and

(b) they meet the financial conditions for joint claimants.

Basic conditions

4

(1) For the purposes of section 3, a person meets the basic conditions who—

(a) is at least 18 years old,

(b) has not reached the qualifying age for state pension credit,

(d) is not receiving education, and

(e) has accepted a claimant commitment.

(2) Regulations may provide for exceptions to the requirement to meet any of the basic conditions (and, for joint claimants, may provide for an exception for one or both).

(3) For the basic condition in subsection (1)(a) regulations may specify a different minimum age for prescribed cases.

(4) For the basic condition in subsection (1)(b), the qualifying age for state pension credit is that referred to in section 1(6) of the State Pension Credit Act 2002.

(5) For the basic condition in subsection (1)(c) regulations may—

(a) specify circumstances in which a person is to be treated as being or not being in Great Britain;

(b) specify circumstances in which temporary absence from Great Britain is disregarded;

(c) modify the application of this Part in relation to a person not in Great Britain who is by virtue of paragraph (b) entitled to universal credit.

(6) For the basic condition in subsection (1)(d) regulations may—

(a) specify what “receiving education” means;

(b) specify circumstances in which a person is to be treated as receiving or not receiving education.

(7) For the basic condition in subsection (1)(e) regulations may specify circumstances in which a person is to be treated as having accepted or not accepted a claimant commitment.

Financial conditions

5

(1) For the purposes of section 3, the financial conditions for a single claimant are that—

(a) the claimant's capital, or a prescribed part of it, is not greater than a prescribed amount, and

(b) the claimant's income is such that, if the claimant were entitled to universal credit, the amount payable would not be less than any prescribed minimum.

(2) For those purposes, the financial conditions for joint claimants are that—

(a) their combined capital, or a prescribed part of it, is not greater than a prescribed amount, and

(b) their combined income is such that, if they were entitled to universal credit, the amount payable would not be less than any prescribed minimum.

Restrictions on entitlement

6

(1) Entitlement to universal credit does not arise—

(a) in prescribed circumstances (even though the requirements in section 3 are met);

(b) if the requirements in section 3 are met for a period shorter than a prescribed period;

(2) A period prescribed under subsection (1)(b) or (c) may not exceed seven days.

(3) Regulations may provide for exceptions to subsection (1)(b) or (c).

Awards

Basis of awards

7

(1) Universal credit is payable in respect of each complete assessment period within a period of entitlement.

(2) In this Part an “assessment period” is a period of a prescribed duration.

(3) Regulations may make provision—

(a) about when an assessment period is to start;

(b) for universal credit to be payable in respect of a period shorter than an assessment period;

(4) In subsection (1) “period of entitlement” means a period during which entitlement to universal credit subsists.

Calculation of awards

8

(1) The amount of an award of universal credit is to be the balance of—

(a) the maximum amount (see subsection (2)), less

(b) the amounts to be deducted (see subsection (3)).

(2) The maximum amount is the total of—

(a) any amount included under section 9 (standard allowance),

(b) any amount included under section 10 (responsibility for children and young persons),

(d) any amount included under section 12 (other particular needs or circumstances).

(3) The amounts to be deducted are—

(a) an amount in respect of earned income calculated in the prescribed manner (which may include multiplying some or all earned income by a prescribed percentage), and

(b) an amount in respect of unearned income calculated in the prescribed manner (which may include multiplying some or all unearned income by a prescribed percentage).

(4) In subsection (3)(a) and (b) the references to income are—

(a) in the case of a single claimant, to income of the claimant, and

(b) in the case of joint claimants, to combined income of the claimants.

Elements of an award

Standard allowance

9

(1) The calculation of an award of universal credit is to include an amount by way of an allowance for—

(a) a single claimant, or

(b) joint claimants.

(2) Regulations are to specify the amount to be included under subsection (1).

(3) Regulations may provide for exceptions to subsection (1).

Responsibility for children and young persons

10

(1) The calculation of an award of universal credit is to include an amount for each child or qualifying young person for whom a claimant is responsible.

(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) Regulations may make provision for the inclusion of an additional amount for each child or qualifying young person for whom a claimant is responsible who is disabled.

(3) Regulations are to specify, or provide for the calculation of, amounts to be included under subsection (1) or (2).

(4) Regulations may provide for exceptions to subsection (1) ....

(5) In this Part, “qualifying young person” means a person of a prescribed description.

Housing costs

11

(1) The calculation of an award of universal credit is to include an amount in respect of any liability of a claimant to make payments in respect of the accommodation they occupy as their home.

(2) For the purposes of subsection (1)—

(a) the accommodation must be in Great Britain;

(b) the accommodation must be residential accommodation;

(c) it is immaterial whether the accommodation consists of the whole or part of a building and whether or not it comprises separate and self-contained premises.

(3) Regulations may make provision as to—

(a) what is meant by payments in respect of accommodation for the purposes of this section ...;

(b) circumstances in which a claimant is to be treated as liable or not liable to make such payments;

(c) circumstances in which a claimant is to be treated as occupying or not occupying accommodation as their home (and, in particular, for temporary absences to be disregarded);

(d) circumstances in which land used for the purposes of any accommodation is to be treated as included in the accommodation.

(4) Regulations are to provide for the determination or calculation of any amount to be included under this section.

(5) Regulations may—

(a) provide for exceptions to subsection (1);

(b) provide for inclusion of an amount under this section in the calculation of an award of universal credit—

(i) to end at a prescribed time, or

(ii) not to start until a prescribed time.

Other particular needs or circumstances

12

(1) The calculation of an award of universal credit is to include amounts in respect of such particular needs or circumstances of a claimant as may be prescribed.

(2) The needs or circumstances prescribed under subsection (1) may include—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the fact that a claimant has limited capability for work and work-related activity;

(3) Regulations are to specify, or provide for the determination or calculation of, any amount to be included under subsection (1).

(4) Regulations may—

(a) provide for inclusion of an amount under this section in the calculation of an award of universal credit—

(i) to end at a prescribed time, or

(ii) not to start until a prescribed time;

(b) provide for the manner in which a claimant's needs or circumstances are to be determined.

CHAPTER 2 — Claimant responsibilities

Introductory

Work-related requirements: introductory

13

(1) This Chapter provides for the Secretary of State to impose work-related requirements with which claimants must comply for the purposes of this Part.

(2) In this Part “work-related requirement” means—

(a) a work-focused interview requirement (see section 15);

(b) a work preparation requirement (see section 16);

(d) a work availability requirement (see section 18).

(3) The work-related requirements which may be imposed on a claimant depend on which of the following groups the claimant falls into—

(a) no work-related requirements (see section 19);

(b) work-focused interview requirement only (see section 20);

(d) all work-related requirements (see section 22).

Claimant commitment

14

(1) A claimant commitment is a record of a claimant's responsibilities in relation to an award of universal credit.

(2) A claimant commitment is to be prepared by the Secretary of State and may be reviewed and updated as the Secretary of State thinks fit.

(3) A claimant commitment is to be in such form as the Secretary of State thinks fit.

(4) A claimant commitment is to include—

(a) a record of the requirements that the claimant must comply with under this Part (or such of them as the Secretary of State considers it appropriate to include),

(b) any prescribed information, and

(5) For the purposes of this Part a claimant accepts a claimant commitment if, and only if, the claimant accepts the most up-to-date version of it in such manner as may be prescribed.

Work-related requirements

Work-focused interview requirement

15

(1) In this Part a “work-focused interview requirement” is a requirement that a claimant participate in one or more work-focused interviews as specified by the Secretary of State.

(2) A work-focused interview is an interview for prescribed purposes relating to work or work preparation.

(3) The purposes which may be prescribed under subsection (2) include in particular that of making it more likely in the opinion of the Secretary of State that the claimant will obtain paid work (or more paid work or better-paid work).

(4) The Secretary of State may specify how, when and where a work-focused interview is to take place.

Work preparation requirement

16

(1) In this Part a “work preparation requirement” is a requirement that a claimant take particular action specified by the Secretary of State for the purpose of making it more likely in the opinion of the Secretary of State that the claimant will obtain paid work (or more paid work or better-paid work).

(2) The Secretary of State may under subsection (1) specify the time to be devoted to any particular action.

(3) Action which may be specified under subsection (1) includes in particular—

(a) attending a skills assessment;

(b) improving personal presentation;

(d) participating in an employment programme;

(e) undertaking work experience or a work placement;

(f) developing a business plan;

(g) any action prescribed for the purpose in subsection (1).

(4) In the case of a person with limited capability for work, the action which may be specified under subsection (1) includes taking part in a work-focused health-related assessment.

(5) In subsection (4) “work-focused health-related assessment” means an assessment by a health care professional approved by the Secretary of State which is carried out for the purpose of assessing—

(a) the extent to which the person's capability for work may be improved by taking steps in relation to their physical or mental condition, and

(b) such other matters relating to their physical or mental condition and the likelihood of their obtaining or remaining in work or being able to do so as may be prescribed.

(6) In subsection (5) “health care professional” means—

(a) a registered medical practitioner,

(b) a registered nurse,

(c) an occupational therapist or physiotherapist registered with a regulatory body established by an Order in Council under section 60 of the Health Act 1999, or

(d) a member of such other profession regulated by a body mentioned in section 25(3) of the National Health Service Reform and Health Care Professions Act 2002 as may be prescribed.

Work search requirement

17

(1) In this Part a “work search requirement” is a requirement that a claimant take—

(a) all reasonable action, and

(b) any particular action specified by the Secretary of State,

for the purpose of obtaining paid work (or more paid work or better-paid work).

(2) The Secretary of State may under subsection (1)(b) specify the time to be devoted to any particular action.

(3) Action which may be specified under subsection (1)(b) includes in particular—

(a) carrying out work searches;

(b) making applications;

(d) registering with an employment agency;

(e) seeking references;

(f) any action prescribed for the purpose in subsection (1).

(4) Regulations may impose limitations on a work search requirement by reference to the work to which it relates; and the Secretary of State may in any particular case specify further such limitations on such a requirement.

(5) A limitation under subsection (4) may in particular be by reference to—

(a) work of a particular nature,

(b) work with a particular level of remuneration,

(d) work available for a certain number of hours per week or at particular times,

and may be indefinite or for a particular period.

Work availability requirement

18

(1) In this Part a “work availability requirement” is a requirement that a claimant be available for work.

(2) For the purposes of this section “available for work” means able and willing immediately to take up paid work (or more paid work or better-paid work).

(3) Regulations may impose limitations on a work availability requirement by reference to the work to which it relates; and the Secretary of State may in any particular case specify further such limitations on such a requirement.

(4) A limitation under subsection (3) may in particular be by reference to—

(a) work of a particular nature,

(b) work with a particular level of remuneration,

(d) work available for a certain number of hours per week or at particular times,

and may be indefinite or for a particular period.

(5) Regulations may for the purposes of subsection (2) define what is meant by a person being able and willing immediately to take up work.

Application of work-related requirements

Claimants subject to no work-related requirements

19

(1) The Secretary of State may not impose any work-related requirement on a claimant falling within this section.

(2) A claimant falls within this section if—

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