The State Pension Credit Regulations 2002

• (a) to which section 16(1)(za) to (e) applies,

• (b) for which no claim has been made, and

• (c) to which the claimant might expect to be entitled if a claim for it were made,

but only from the date on which that income could be expected to be acquired if a claim for it were made.

• (1A) Paragraph (1) is subject to paragraphs (1B) (1CA), (1CB) and (5A).

• (1B) Where a claimant—

• (a) has deferred entitlement to retirement pension income to which section 16(1)(a) to (c) applies for at least 12 months, and

• (b) would have been entitled to make an election under Schedule 5 or 5A to the 1992 Act or under Schedule 1 to the Graduated Retirement Benefit Regulations,

he shall be treated for the purposes of paragraph (1) as possessing the amount of retirement pension income to which he might expect to be entitled if he were to elect to receive a lump sum.

• (1C) Paragraphs (1CA) and (1CB) apply for the purposes of paragraph (1) (or, where applicable, paragraph (1) read with paragraph (1B)).

• (1CA) Where a benefit or allowance in payment in respect of the claimant would be adjusted under the Social Security (Overlapping Benefits) Regulations 1979 or regulation 16(2) of the Carer’s Assistance (Carer Support Payment) (Scotland) Regulations 2023 if the retirement pension income had been claimed, he shall be treated as possessing that income minus the benefit or allowance in payment.

• (1CB) Where a benefit or allowance in payment in respect of the claimant would require an adjustment to be made under the Social Security (Overlapping Benefits) Regulations 1979 to the amount of retirement pension income payable had it been claimed, he shall be treated as possessing that retirement pension income minus the adjustment which would be made to it.

• (1D) Subject to paragraph (5A), a claimant who has attained the qualifying age shall be treated as possessing income from an occupational pension scheme which he elected to defer, but only from the date on which it could be expected to be acquired if a claim for it were made.

• (2) Subject to paragraph (5A), where a person, who has attained the qualifying age, is a person entitled to money purchase benefits under an occupational pension scheme or a personal pension scheme, or is a party to, or a person deriving entitlement to a pension under, a retirement annuity contract, and—

• (a) he fails to purchase an annuity with the funds available in that scheme where—

• (i) he defers, in whole or in part, the payment of any income which would have been payable to him by his pension fund holder;

• (ii) he fails to take any necessary action to secure that the whole of any income which would be payable to him by his pension fund holder upon his applying for it, is so paid; or

• (iii) income withdrawal is not available to him under that scheme; or

• (b) in the case of a retirement annuity contract, he fails to purchase an annuity with the funds available under that contract,

the amount of any income foregone shall be treated as possessed by him, but only from the date on which it could be expected to be acquired were an application for it to be made.

• (3) The amount of any income foregone in a case to which either head (i) or (ii) of paragraph (2)(a) applies shall be the rate of the annuity which may have been purchased with the fund and is to be determined by the Secretary of State, taking account of information provided by the pension fund holder in accordance with regulation 7(5) of the Social Security (Claims and Payments) Regulations 1987.

• (4) The amount of any income foregone in a case to which either head (iii) of paragraph (2)(a) or paragraph (2)(b) applies shall be the income that the claimant could have received without purchasing an annuity had the funds held under the relevant scheme or retirement annuity contract been held under a personal pension scheme or occupational pension scheme where income withdrawal was available and shall be determined in the manner specified in paragraph (3).

• (5) In paragraph (2), “money purchase benefits” has the meaning it has in the Pensions Scheme Act 1993.

• (5A) Where a person—

• (a) makes a claim for state pension credit on or after the issue of a tax credit closure notice and before the expiry of one month beginning with the deadline day specified in that notice; and

• (b) has not, at the time the notice is issued, made an application for retirement pension income to which they might expect to be entitled,

paragraphs (1), (1D) and (2) are not to apply for a period beginning with the first day on which the person is entitled to an award of state pension credit as a consequence of that claim and ending after 52 weeks or, if sooner, on the day the person ceases to be entitled to state pension credit.

• (6) Subject to the following paragraphs, a person shall be treated as possessing income of which he has deprived himself for the purpose of securing entitlement to state pension credit or increasing the amount of that benefit.

• (7) Paragraph (6) shall not apply in respect of the amount of an increase of pension or benefit where a person, having made an election in favour of that increase of pension or benefit under Schedule 5 or 5A to the 1992 Act or under Schedule 1 to the Graduated Retirement Benefit Regulations, changes that election in accordance with regulations made under Schedule 5 or 5A to that Act in favour of a lump sum.

• (7ZA) Paragraph (6) shall not apply in respect of the amount of an increase of pension where a person, having made a choice in favour of that increase of pension under section 8(2) of the Pensions Act 2014, alters that choice in favour of a lump sum, in accordance with Regulations made under section 8(7) of that Act.

• (7ZB) Paragraph (6) shall not apply in respect of the amount of an increase of pension where a person, having made a choice in favour of that increase of pension in accordance with Regulations made under section 10 of the Pensions Act 2014 which include provision corresponding or similar to section 8(2) of that Act, alters that choice in favour of a lump sum, in accordance with Regulations made under section 10 of that Act which include provision corresponding or similar to Regulations made under section 8(7).

• (7A) Paragraph (6) shall not apply in respect of any amount of income other than earnings, or earnings of an employed earner, arising out of the claimant participating as a service user.

• (8) In paragraph (7), “lump sum” means a lump sum under Schedule 5 or 5A to the 1992 Act or under Schedule 1 to the Graduated Retirement Benefit Regulations.

• (8A) In paragraph (7ZA), “lump sum” means a lump sum under section 8 of the Pensions Act 2014.

• (8B) In paragraph (7ZB), “lump sum” means a lump sum under Regulations made under section 10 of the Pensions Act 2014.

• (9) For the purposes of paragraph (6), a person is not to be regarded as depriving himself of income where—

• (a) his rights to benefits under a registered pension scheme are extinguished and in consequence of this he receives a payment from the scheme, and

• (b) that payment is a trivial commutation lump sum within the meaning given by paragraph 7 of Schedule 29 to the Finance Act 2004.

• (10) In paragraph (9),”registered pension scheme” has the meaning given in section 150(2) of the Finance Act 2004.

Calculation of capital in the United Kingdom

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Capital which a claimant possesses in the United Kingdom shall be calculated at its current market or surrender value less—

• (a) where there would be expenses attributable to sale, 10 per cent; and

• (b) the amount of any encumbrance secured on it.

Calculation of capital outside the United Kingdom

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Capital which a claimant possesses in a country outside the United Kingdom shall be calculated—

• (a) in a case where there is no prohibition in that country against the transfer to the United Kingdom of an amount equal to its current market or surrender value in that country, at that value;

• (b) in a case where there is such a prohibition, at the price which it would realise if sold in the United Kingdom to a willing buyer,

less, where there would be expenses attributable to sale, 10 per cent., and the amount of any encumbrance secured on it.

Notional capital

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• (1) A claimant shall be treated as possessing capital of which he has deprived himself for the purpose of securing entitlement to state pension credit or increasing the amount of that benefit except to the extent that the capital which he is treated as possessing is reduced in accordance with regulation 22 (diminishing notional capital rule).

• (2) A person who disposes of a capital resource for the purpose of—

• (a) reducing or paying a debt owed by the claimant; or

• (b) purchasing goods or services if the expenditure was reasonable in the circumstances of the claimant’s case,

shall be regarded as not depriving himself of it.

• (3) Where a claimant stands in relation to a company in a position analogous to that of a sole owner or partner in the business of that company, he shall be treated as if he were such sole owner or partner and in such a case—

• (a) the value of his holding in that company shall, notwithstanding regulation 19 (calculation of capital), be disregarded; and

• (b) he shall, subject to paragraph (4), be treated as possessing an amount of capital equal to the value or, as the case may be, his share of the value of the capital of that company and the foregoing provisions of this Chapter shall apply for the purposes of calculating that amount as if it were actual capital which he does possess.

• (4) For so long as a claimant undertakes activities in the course of the business of the company, the amount which he is treated as possessing under paragraph (3) shall be disregarded.

• (5) Where under this regulation a person is treated as possessing capital, the amount of that capital shall be calculated in accordance with the provisions of this Part as if it were actual capital which he does possess.

Diminishing notional capital rule

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• (1) Where a claimant is treated as possessing capital under regulation 21(1) (notional capital), the amount which he is treated as possessing—

• (a) in the case of a week that is subsequent to—

• (i) the relevant week in respect of which the conditions set out in paragraph (2) are satisfied, or

• (ii) a week which follows that relevant week and which satisfies those conditions,

shall be reduced by an amount determined under paragraph (2);

• (b) in the case of a week in respect of which sub-paragraph (1)(a) does not apply but where—

• (i) that week is a week subsequent to the relevant week, and

• (ii) that relevant week is a week in which the condition in paragraph (3) is satisfied,

shall be reduced by the amount determined under paragraph (3).

• (2) This paragraph applies to a benefit week where the claimant satisfies the conditions that—

• (a) he is in receipt of state pension credit; and

• (b) but for regulation 21(1), he would have received an additional amount of state pension credit in that benefit week;

and in such a case, the amount of the reduction for the purposes of paragraph (1)(a) shall be equal to that additional amount.

• (3) Subject to paragraph (4), for the purposes of paragraph (1)(b) the condition is that the claimant would have been entitled to state pension credit in the relevant week, but for regulation 21(1), and in such a case the amount of the reduction shall be equal to the aggregate of—

• (a) the amount of state pension credit to which the claimant would have been entitled in the relevant week but for regulation 21(1);

• (b) the amount of housing benefit (if any) equal to the difference between his maximum housing benefit and the amount (if any) of housing benefit which he is awarded in respect of the benefit week, within the meaning of regulation 2(1) of the Housing Benefit (General) Regulations 1987 (interpretation), which includes the last day of the relevant week;

• (c) the amount of council tax benefit (if any) equal to the difference between his maximum council tax benefit and the amount (if any) of council tax benefit which he is awarded in respect of the benefit week which includes the last day of the relevant week, and for this purpose “benefit week” means a period of 7 consecutive days beginning on a Monday and ending on a Sunday.

• (4) The amount determined under paragraph (3) shall be re-determined under that paragraph if the claimant makes a further claim for state pension credit and the conditions in paragraph (5) are satisfied, and in such a case—

• (a) sub-paragraphs (a) to (c) of paragraph (3) shall apply as if for the words “relevant week” there were substituted the words “ relevant subsequent week ”; and

• (b) subject to paragraph (6), the amount as re-determined shall have effect from the first week following the relevant subsequent week in question.

• (5) The conditions are that—

• (a) a further claim is made 26 or more weeks after—

• (i) the date on which the claimant made a claim for state pension credit in respect of which he was first treated as possessing the capital in question under regulation 21(1); or

• (ii) in a case where there has been at least one re-determination in accordance with paragraph (4), the date on which he last made a claim for state pension credit which resulted in the weekly amount being re-determined; or

• (iii) the date on which he last ceased to be in receipt of state pension credit,

whichever last occurred; and

• (b) the claimant would have been entitled to state pension credit but for regulation 21(1).

• (6) The amount as re-determined pursuant to paragraph (4) shall not have effect if it is less than the amount which applied in that case immediately before the re-determination and in such a case the higher amount shall continue to have effect.

• (7) For the purpose of this regulation—

• (a) “relevant week” means the benefit week in which the capital in question of which the claimant has deprived himself within the meaning of regulation 21(1)—

• (i) was first taken into account for the purpose of determining his entitlement to state pension credit; or

• (ii) was taken into account on a subsequent occasion for the purpose of determining or re-determining his entitlement to state pension credit on that subsequent occasion and that determination or re-determination resulted in his beginning to receive, or ceasing to receive, state pension credit;

and where more than one benefit week is identified by reference to heads (i) and (ii) of this sub-paragraph the later or latest such benefit week;

• (b) “relevant subsequent week” means the benefit week which includes the day on which the further claim or, if more than one further claim had been made, the last such claim was made.

Capital jointly held

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Where a claimant and one or more persons are beneficially entitled in possession to any capital asset they shall be treated as if each of them were entitled in possession to the whole beneficial interest therein in an equal share and the foregoing provisions of this Part shall apply for the purposes of calculating the amount of capital which the claimant is treated as possessing as if it were actual capital which the claimant does possess.

Income paid to third parties

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• (1) Any payment of income, other than a payment specified in paragraphs (2) or (3), to a third party in respect of the claimant shall be treated as possessed by the claimant.

• (2) Paragraph (1) shall not apply in respect of a payment of income made under an occupational pension scheme or in respect of a pension or other periodical payment made under a personal pension scheme where—

• (a) a bankruptcy order has been made in respect of the person in respect of whom the payment has been made or, to Scotland, the estate of that person is subject to sequestration or a judicial factor has been appointed on that person’s estate under section 41 of the Solicitors (Scotland) Act 1980 ;

• (b) the payment is made to the trustee in bankruptcy or any other person acting on behalf of the creditors; and

• (c) the person referred to in sub-paragraph (a) and his partner does not possess, or is not treated as possessing, any other income apart from that payment.

• (3) Paragraph (1) shall not apply in respect of any payment of income arising out of the claimant participating as a service user.

PART IV — Loss of benefit

Loss of benefit

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• (1) The Social Security (Loss of Benefit) Regulations 2001 shall be amended in accordance with the following provisions of this regulation.

• (2) In regulation 2 (disqualification period), in—

• (i) paragraph (1) (a)(iii) and paragraph (3) (c) after the words “jobseeker’s allowance”, insert “ , state pension credit ”; and

• (ii) paragraph (1) (b)(iii) for the words “or jobseeker’s allowance”, substitute “ jobseeker’s allowance or state pension credit ”.

• (3) After regulation 3, insert—

(3A) (1) Subject to the following provisions of this regulation, state pension credit shall be payable in the case of an offender for any week comprised in the disqualification period or in the case of an offender’s family member for any week comprised in the relevant period, as if the rate of benefit were reduced— (a) where the offender or the offender’s family member is pregnant or seriously ill, by 20 per cent. of the relevant sum; or (b) where sub-paragraph (a) does not apply, by 40 per cent. of the relevant sum. (2) In paragraph (1), the “relevant sum” is the amount applicable— (a) except where sub-paragraph (b) applies, in respect of a single claimant aged not less than 25 under paragraph 1(1) of Schedule 2 to the Income Support Regulations; or (b) if the claimant’s family member is the offender and the offender has not attained the age of 25, the amount applicable in respect of a person of the offender’s age under paragraph 1(1) of Part I of that Schedule, on the first day of the disqualification period or, as the case may be, on the first day of the relevant period. (3) Payment of state pension credit shall not be reduced under this regulation to less than 10 pence per week. (4) A reduction under paragraph (1) shall, if it is not a multiple of 5 pence, be rounded to the nearest such multiple or, if it is a multiple of 2.5 pence but not of 5 pence, to the next lower multiple of 5 pence. (5) Where the rate of state pension credit payable to an offender or an offender’s family member changes, the rules set out above for a reduction in the credit payable shall be applied to the new rate and any adjustment to the reduction shall take effect from the first day of the first benefit week to start after the date of change. (6) In paragraph (5), “benefit week” has the same meaning as in regulation 1(2) of the State Pension Credit Regulations 2002. (7) A person of a prescribed description for the purposes of the definition of “family” in section 137(1) of the Benefits Act as it applies for the purpose of this regulation is— (a) a person who is an additional spouse for the purposes of section 12(1) of the State Pension Credit Act 2002 (additional spouse in the case of polygamous marriages); (b) a person aged 16 or over who is treated as a child for the purposes of section 142 of the Benefits Act.

SCHEDULE I

PART I — Circumstances in which persons are treated as being or not being severely disabled

Severe disablement

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• (1) For the purposes of regulation 6(4) (additional amounts for persons severely disabled), the claimant is to be treated as being severely disabled if, and only if—

• (a) in the case of a claimant who has no partner—

• (i) he is in receipt of attendance allowance , pension age disability payment , the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the 1992 Act , the care component of Scottish adult disability living allowance at the highest or middle rate in accordance with regulation 6(4) of the Disability Assistance (Scottish Adult Disability Living Allowance) Regulations 2025 , the daily living component of personal independence payment at the standard or enhanced rate in accordance with section 78(3) of the 2012 Act , the daily living component of adult disability payment at the standard or enhanced rate in accordance with regulation 5 of the Disability Assistance for Working Age People (Scotland) Regulations 2022 or armed forces independence payment; and

• (ii) no person who has attained the age of 18 is normally residing with the claimant, nor is the claimant normally residing with such a person, other than a person to whom paragraph 2 applies; and

• (iii) no person is entitled to and in receipt of an allowance under section 70 of the 1992 Act (carer’s allowance) or carer support payment , or has an award of universal credit which includes the carer element, in respect of caring for him;

• (b) in the case of a claimant who has a partner—

• (i) both partners are in receipt of attendance allowance , pension age disability payment , the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the 1992 Act , the care component of Scottish adult disability living allowance at the highest or middle rate in accordance with regulation 6(4) of the Disability Assistance (Scottish Adult Disability Living Allowance) Regulations 2025 , the daily living component of personal independence payment at the standard or enhanced rate in accordance with section 78(3) of the 2012 Act , the daily living component of adult disability payment at the standard or enhanced rate in accordance with regulation 5 of the Disability Assistance for Working Age People (Scotland) Regulations 2022 or armed forces independence payment; and

• (ii) no person who has attained the age of 18 is normally residing with the partners, nor are the partners normally residing with such a person, other than a person to whom paragraph 2 applies;

and either a person is entitled to, and in receipt of, an allowance under section 70 of the 1992 Act or carer support payment , or has an award of universal credit which includes the carer element, in respect of caring for one only of the partners or, as the case may be, no person is entitled to, and in receipt of, such an allowance under section 70 or carer support payment, or has an award of universal credit which includes the carer element, in respect of caring for either partner;

• (c) in the case of a claimant who has a partner and to whom head (b) does not apply—

• (i) either the claimant or his partner is in receipt of attendance allowance , pension age disability payment , the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the 1992 Act , the care component of Scottish adult disability living allowance at the highest or middle rate in accordance with regulation 6(4) of the Disability Assistance (Scottish Adult Disability Living Allowance) Regulations 2025 , the daily living component of personal independence payment at the standard or enhanced rate in accordance with section 78(3) of the 2012 Act , the daily living component of adult disability payment at the standard or enhanced rate in accordance with regulation 5 of the Disability Assistance for Working Age People (Scotland) Regulations 2022 or armed forces independence payment; and

• (ii) the other partner is certified as severely sight impaired or blind by a consultant ophthalmologist; and

• (iii) no person who has attained the age of 18 is normally residing with the partners, nor are the partners normally residing with such a person, other than a person to whom paragraph 2 applies; and

• (iv) no person is entitled to and in receipt of an allowance under section 70 of the 1992 Act or carer support payment , or has an award of universal credit which includes the carer element, in respect of caring for the person to whom head (c) (i) above applies.

• (2) A person shall be treated—

• (a) for the purposes of sub-paragraph (1) as being in receipt of attendance allowance , pension age disability payment or, as the case may be , the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the 1992 Act , the care component of Scottish adult disability living allowance at the highest or middle rate in accordance with regulation 6(4) of the Disability Assistance (Scottish Adult Disability Living Allowance) Regulations 2025 , the daily living component of personal independence payment at the standard or enhanced rate in accordance with section 78(3) of the 2012 Act , the daily living component of adult disability payment at the standard or enhanced rate in accordance with regulation 5 of the Disability Assistance for Working Age People (Scotland) Regulations 2022 or armed forces independence payment, for any period—

• (i) before an award is made but in respect of which the allowance or payment is awarded; or

• (ii) not covered by an award but in respect of which a payment is made in lieu of an award;

• (b) for the purposes of sub-paragraph (1)(b) as being in receipt of attendance allowance or the care component of disability living allowance at the highest or middle rate prescribed in accordance section 72(3) of the 1992 Act if he would, but for his being a patient for a period exceeding 28 days, be so in receipt;

• (ba) for the purposes of sub-paragraph (1)(b) as being in receipt of the daily living component of personal independence payment at the standard or enhanced rate in accordance with section 78 of the 2012 Act if he would, but for regulations made under section 86(1) (hospital in-patients) of that Act, be so in receipt;

• (bb) for the purposes of sub-paragraph (1)(b) as being in receipt of the daily living component of adult disability payment at the standard or enhanced rate in accordance with regulation 5 of the Disability Assistance for Working Age People (Scotland) Regulations 2022, if that person would, but for regulation 28 (effect of admission to hospital on ongoing entitlement to Adult Disability Payment) of those Regulations, be so in receipt;

• (bc) for the purposes of sub-paragraph (1)(b) as being in receipt of pension age disability payment if that person would, but for regulation 20 (effect of admission to hospital on ongoing entitlement to pension age disability payment) of the Disability Assistance for Older People (Scotland) Regulations 2024, be so in receipt;

• (bd) for the purposes of sub-paragraph (1)(b) as being in receipt of the care component of Scottish adult disability living allowance at the highest or middle rate in accordance with regulation 6(4) of the Disability Assistance (Scottish Adult Disability Living Allowance) Regulations 2025, if that person would, but for regulation 23 (effect of admission to hospital on ongoing entitlement to Scottish adult disability living allowance) of those Regulations, be so in receipt;

• (c) for the purposes of sub-paragraph (1), as not being in receipt of an allowance under section 70 of the 1992 Act or carer support payment , or as having an award of universal credit which includes the carer element, for any period before the date on which the award is first paid.

• (3) For the purposes of sub-paragraph (1)(c)(ii), a person who has ceased to be certified as severely sight impaired or blind on regaining his eyesight shall nevertheless be treated as severely sight impaired or blind, as the case may be, and as satisfying the requirements set out in that sub-paragraph for a period of 28 weeks following the date on which he ceased to be so certified.

• (4) For the purposes of this paragraph, a person has an award of universal credit which includes the carer element if the person has an award of universal credit which includes an amount which is the carer element under regulation 29 of the Universal Credit Regulations 2013.

Persons residing with the claimant whose presence is ignored

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• (1) For the purposes of paragraph 1(1)(a)(ii), (b)(ii) and (c)(iii), this paragraph applies to the persons specified in the following sub-paragraphs.

• (2) A person who—

• (a) is in receipt of attendance allowance , pension age disability payment , the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the 1992 Act , the care component of Scottish adult disability living allowance at the highest or middle rate in accordance with regulation 6(4) of the Disability Assistance (Scottish Adult Disability Living Allowance) Regulations 2025 , the daily living component of personal independence payment at the standard or enhanced rate in accordance with section 78(3) of the 2012 Act , the daily living component of adult disability payment at the standard or enhanced rate in accordance with regulation 5 of the Disability Assistance for Working Age People (Scotland) Regulations 2022 or armed forces independence payment;

• (b) is certified as severely sight impaired or blind by a consultant ophthalmologist;

• (c) is no longer certified as severely sight impaired or blind in accordance with head (b) but was so certified not more than 28 weeks earlier;

• (d) lives with the claimant in order to care for him or his partner and is engaged by a charitable or voluntary organisation which makes a charge to the claimant or his partner for the services provided by that person;

• (e) is a partner of a person to whom head (d) above applies; or

• (f) is a person who is a qualifying young person within the meaning of regulation 4A or child as defined in section 40 of the 2012 Act.

• (3) Subject to sub-paragraph (4), a person who joins the claimant’s household for the first time in order to care for the claimant or his partner and immediately before he joined the household, the claimant or his partner was treated as being severely disabled.

• (4) Sub-paragraph (3) applies only for the first 12 weeks following the date on which the person first joins the claimant’s household.

• (5) A person who is not a close relative of the claimant or his partner and—

• (a) who is liable to make payments on a commercial basis to the claimant or his partner in respect of his occupation of the dwelling;

• (b) to whom the claimant or his partner is liable to make payments on a commercial basis in respect of his occupation of that person’s dwelling; or

• (c) who is a member of the household of a person to whom head (a) or (b) applies.

• (6) Subject to paragraph 3(3), a person who jointly occupies the claimant’s dwelling and who is either—

• (a) co-owner of that dwelling with the claimant or the claimant’s partner (whether or not there are other co-owners); or

• (b) jointly liable with the claimant or the claimant’s partner to make payments to a landlord in respect of his occupation of that dwelling.

• (7) Subject to paragraph 3(3), a person who is a partner of a person to whom sub-paragraph (6) applies.

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• (1) For the purposes of paragraphs 1 and 2, a person resides with another only if they share any accommodation except a bathroom, a lavatory or a communal area, but not if each person is separately liable to make payments in respect of his occupation of the dwelling to the landlord.

• (2) In sub-paragraph (1), “communal area” means any area (other than rooms) of common access (including halls and passageways) and rooms of common use in sheltered accommodation.

• (3) Paragraph 2(6) and (7) applies to a person who is a close relative of the claimant or his partner only if the claimant or his partner’s co-ownership, or joint liability to make payments to a landlord in respect of his occupation, of the dwelling arose either before 11th April 1988, or, if later, on or before the date upon which the claimant or the claimant’s partner first occupied the dwelling in question.

PART II — Amount applicable for carers

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• (1) For the purposes of regulation 6(6)(a), this paragraph is satisfied if any of the requirements specified in sub-paragraphs (2) to (4) are met.

• (2) A claimant is, or in the case of partners either partner is, or both partners are, entitled to an allowance under section 70 of the 1992 Act (carer’s allowance) or carer support payment.

• (3) Subject to sub-paragraph (5), where an additional amount has been awarded under regulation 6(6)(a) but

• (a) the person in respect of whose care the allowance or payment has been awarded dies; or

• (b) the person in respect of whom the additional amount was awarded ceases to be entitled or ceases to be treated as entitled to the allowance or payment,

this paragraph shall be treated as satisfied for a period of 8 weeks from the relevant date specified in sub-paragraph (4).

• (4) The relevant date for the purposes of sub-paragraph (3) is —

• (a) the Sunday following the death of the person in respect of whose care the allowance or payment has been awarded (or beginning with the date of death if the death occurred on a Sunday);

• (b) where sub-paragraph (a) does not apply, the date on which the person who has been entitled to the allowance or payment ceases to be entitled to that allowance or payment.

• (5) For the purposes of sub-paragraph (3)(a), where the relevant additional amount has been awarded as a result of the claimant or the claimant’s partner being entitled to carer support payment, and the death occurred on or after 15th March 2026, the reference to “8 weeks” is to be read as “12 weeks”.

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For the purposes of paragraph 4, a person shall be treated as being entitled to and in receipt of an allowance under section 70 of the 1992 Act or carer support payment for any period not covered by an award but in respect of which a payment is made in lieu of an award.

PART III — Amount applicable for former claimants of income support, income-based jobseeker's allowance or income-related employment and support allowance

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• (1) If on the relevant day the relevant amount exceeds the provisional amount, an additional amount (“the transitional amount”) equal to the difference shall be applicable to a claimant to whom sub-paragraph (2) applies.

• (2) This sub-paragraph applies to a claimant who, in respect of the day before the relevant day, was entitled to either income support, an income-based jobseeker's allowance or an income-related employment and support allowance.

• (3) The relevant day is the day in respect of which the claimant is first entitled to state pension credit.

• (4) The provisional amount means the amount of the appropriate minimum guarantee applicable to the claimant on the relevant day but for this paragraph.

• (5) The relevant amount means the amount which, on the day before the relevant day, was the claimant’s applicable amount—

• (a) for the purposes of determining his entitlement to income support; ...

• (b) for the purpose of determining his entitlement to an income-based jobseeker’s allowance; or

• (c) for the purposes of determining his entitlement to income-related employment and support allowance,

less any of the following amounts included in it—

• (i) any amount determined in accordance with paragraph 2 of Schedule 2 to the Income Support Regulations or paragraph 2 of Schedule 1 to the Jobseeker’s Allowance Regulations;

• (ii) any amount by way of a residential allowance applicable in accordance with paragraph 2A of Schedule 2 to the Income Support Regulations or paragraph 3 of Schedule 1 to the Jobseeker’s Allowance Regulations;

• (iii) any amount by way of family premium applicable in accordance with paragraph 3 of Schedule 2 to the Income Support Regulations or paragraph 4 of Schedule 1 to the Jobseeker’s Allowance Regulations;

• (iv) any amount by way of disabled child premium applicable in accordance with paragraph 14 of Schedule 2 to the Income Support Regulations or paragraph 16 of Schedule 1 to the Jobseeker’s Allowance Regulations; and

• (v) any amount in respect of a person other than the claimant or his partner by way of enhanced disability premium applicable in accordance with paragraph 13A of Schedule 2 to the Income Support Regulations, paragraph 7 of Schedule 4 to the Employment and Support Allowance Regulations or paragraph 15A of Schedule 1 to the Jobseeker’s Allowance Regulations.

• (6) In determining the relevant amount under sub-paragraph (5), the applicable amount shall be increased by an amount equal to the amount (if any) payable to the claimant in accordance with Part II of the Income Support (Transitional) Regulations 1987 (transitional protection) or regulation 87(1) of the Jobseeker’s Allowance Regulations (transitional supplement to income-based jobseeker’s allowance).

• (7) If—

• (a) paragraph 1 of Schedule 7 to the Income Support Regulations or paragraph 1 of Schedule 5 to the Jobseeker’s Allowance Regulations applied to the claimant or his partner on the day before the relevant day; but

• (b) paragraph 2(2) of Schedule 3 does not apply to the claimant or his partner on the relevant day;

then for the purposes of this paragraph the relevant amount shall be determined on the assumption that the provision referred to in sub-paragraph (7)(a) did not apply in his case.

• (8) Subject to sub-paragraph (9), the transitional amount shall—

• (a) be reduced by a sum equal to the amount (if any) by which the appropriate minimum guarantee increases after the relevant day;

• (b) cease to be included in the claimant’s appropriate minimum guarantee from the day on which—

• (i) the sum mentioned in head (a) above equals or exceeds the transitional amount; or

• (ii) the claimant or the claimant’s partner ceases to be entitled to state pension credit.

• (9) For the purposes of sub-paragraph (8), there shall be disregarded—

• (a) any break in entitlement not exceeding 8 weeks; and

• (b) any amount by which the appropriate minimum guarantee of a patient is increased on 10th April 2006 by virtue of the substitution of paragraph 2 of Schedule 3.

• (10) This sub-paragraph applies where the relevant amount included an amount in respect of housing costs relating to a loan—

• (a) which is treated as a qualifying loan by virtue of regulation 3 of the Income Support (General) Amendment and Transitional Regulations 1995 or paragraph 18(2) of Schedule 2 to the Jobseeker’s Allowance Regulations or paragraph 20(2) of Schedule 6 to the Employment and Support Allowance Regulations; or

• (b) the appropriate amount of which was determined in accordance with paragraph 7(6C) of Schedule 3 to the Income Support Regulations as in force prior to 10th April 1995 and maintained in force by regulation 28(1) of the Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1995.

• (11) Where sub-paragraph (10) applies, the transitional amount shall be calculated or, as the case may be, recalculated, on the relevant anniversary date determined in accordance with paragraph 7(4C) of Schedule II (“the relevant anniversary date”) on the basis that the provisional amount on the relevant day included, in respect of housing costs, the amount calculated in accordance with paragraph 7(1) of Schedule II as applying from the relevant anniversary date and not the amount in respect of housing costs determined on the basis of the amount of the loan calculated in accordance with paragraph 7(4A) of that Schedule.

• (12) The transitional amount as calculated in accordance with sub-paragraph (11) shall only be applicable from the relevant anniversary date.

SCHEDULE II — HOUSING COSTS

Housing costs

1

• (1) Subject to the following provisions of this Schedule, the housing costs applicable to a claimant in accordance with regulation 6(6)(c) are those costs—

• (a) which the claimant or, if he has a partner, his partner is, in accordance with paragraph 3, liable to meet in respect of the dwelling occupied as the home which he or his partner is treated as occupying; and

• (b) which qualify under under paragraph 13 .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) For the purposes of sub-paragraph (2)(a), a person shall not cease to be a disabled person on account of his being disqualified for receiving benefit or treated as capable of work by virtue of the operation of section 171E of the 1992 Act (incapacity for work, disqualification etc.) or disqualified for receiving employment and support allowance or treated as not having limited capability for work in accordance with regulations made under section 18 of the Welfare Reform Act (disqualification).

• (4) In this Schedule, “non-dependant” means any person, except someone to whom sub-paragraph (5), (6) or (7) applies, who normally resides with the claimant.

• (5) This sub-paragraph applies to—

• (a) a partner of the claimant or any person under the age of 20 for whom the claimant or the claimant’s partner is responsible;

• (b) a person who lives with the claimant in order to care for him or for the claimant’s partner and who is engaged for that purpose by a charitable or voluntary organisation which makes a charge to the claimant or the claimant’s partner for the care provided by that person;

• (c) the partner of a person to whom head (b) above applies.

• (6) This sub-paragraph applies to a person, other than a close relative of the claimant or the claimant’s partner,—

• (a) who is liable to make payments on a commercial basis to the claimant or the claimant’s partner in respect of his occupation of the claimant’s dwelling; or

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) who is a member of the household of a person to whom head (a) ... above applies.

• (7) This sub-paragraph applies to—

• (a) a person who jointly occupies the claimant’s dwelling and who is either—

• (i) co-owner of that dwelling with the claimant or the claimant’s partners (whether or not there are other co-owners); or

• (ii) jointly liable with the claimant or the claimant’s partner to make payments to a landlord in respect of his occupation of that dwelling;

• (b) a partner of a person to whom head (a) above applies.

• (8) For the purpose of sub-paragraphs (4) to (7) a person resides with another only if they share any accommodation except a bathroom, a lavatory or a communal area but not if each person is separately liable to make payments in respect of his occupation of the dwelling to the landlord.

• (9) In sub-paragraph (8), “communal area” means any area (other than rooms) of common access (including halls and passageways) and rooms of common use in sheltered accommodation.

Remunerative work

2

• (1) Subject to the following provisions of this paragraph, a person shall be treated for the purposes of this Schedule as engaged in remunerative work if he is engaged, or, where his hours of work fluctuate, he is engaged on average, for not less than 16 hours a week, in work for which payment is made or which is done in expectation of payment.

• (2) Subject to sub-paragraph (3), in determining the number of hours for which a person is engaged in work where his hours of work fluctuate, regard shall be had to the average of hours worked over—

• (a) if there is a recognisable cycle of work, the period of one complete cycle (including, where the cycle involves periods in which the person does no work, those periods but disregarding any other absences);

• (b) in any other case, the period of 5 weeks immediately prior to the date of claim, or such other length of time as may, in the particular case, enable the person’s weekly average hours of work to be determined more accurately.

• (3) Where, for the purposes of sub-paragraph (2)(a), a person’s recognisable cycle of work at a school, other educational establishment or other place of employment is one year and includes periods of school holidays or similar vacations during which he does not work, those periods and any other periods not forming part of such holidays or vacations during which he is not required to work shall be disregarded in establishing the average hours for which he is engaged in work.

• (4) Where no recognisable cycle has been established in respect of a person’s work, regard shall be had to the number of hours or, where those hours will fluctuate, the average of the hours, which he is expected to work in a week.

• (5) A person shall be treated as engaged in remunerative work during any period for which he is absent from work referred to in sub-paragraph (1) if the absence is either without good cause or by reason of a recognised, customary or other holiday.

• (6) A person on income support or an income-based jobseeker’s allowance for more than 3 days in any benefit week shall be treated as not being in remunerative work in that week.

• (7) A person shall not be treated as engaged in remunerative work on any day on which the person is on maternity leave , paternity leave , shared parental leave , parental bereavement leave , neonatal care leave, or adoption leave, or is absent from work because he is ill.

• (8) A person shall not be treated as engaged in remunerative work on any day on which he is engaged in an activity in respect of which—

• (a) a sports award has been made, or is to be made, to him; and

• (b) no other payment is made or is expected to be made to him ,

and for the purposes of this sub-paragraph, “sports award” means an award made by one of the Sports Councils named in section 23(2) of the National Lottery etc. Act 1993 out of sums allocated to it for distribution under that section

• (9) In this paragraph “benefit week”—

• (a) in relation to income support, has the same meaning as in regulation 2(1) of the Income Support Regulations;

• (b) in relation to jobseeker’s allowance, has the same meaning as in regulation 1(3) of the Jobseeker’s Allowance Regulations.

Circumstances in which a person is liable to meet housing costs

3

A person is liable to meet housing costs where—

• (a) the liability falls upon him or his partner but not where the liability is to a member of the same household as the person on whom the liability falls;

• (b) because the person liable to meet the housing costs is not meeting them, the claimant has to meet those costs in order to continue to live in the dwelling occupied as the home and it is reasonable in all the circumstances to treat the claimant as liable to meet those costs;

• (c) he in practice shares the housing costs with other members of the household none of whom are close relatives either of the claimant or his partner, and

• (i) one or more of those members is liable to meet those costs, and

• (ii) it is reasonable in the circumstances to treat him as sharing responsibility.

Circumstances in which a person is to be treated as occupying a dwelling as his home

4

• (1) Subject to the following provisions of this paragraph, a person shall be treated as occupying as his home the dwelling normally occupied as his home by himself or, if he has a partner, by himself and his partner, and he shall not be treated as occupying any other dwelling as his home.

• (2) In determining whether a dwelling is the dwelling normally occupied as the claimant’s home for the purposes of sub-paragraph (1) regard shall be had to any other dwelling occupied by the claimant or by him and his partner whether or not that other dwelling is in Great Britain.

• (3) Subject to sub-paragraph (4), where a claimant who has no partner is a full-time student or is on a training course and is liable to make payments (including payments of mortgage interest or, in Scotland, payments under heritable securities or, in either case, analogous payments) in respect of either (but not both) the dwelling which he occupies for the purpose of attending his course of study or his training course or, as the case may be, the dwelling which he occupies when not attending his course, he shall be treated as occupying as his home the dwelling in respect of which he is liable to make payments.

• (4) A full-time student shall not be treated as occupying a dwelling as his home for any week of absence from it, other than an absence occasioned by the need to enter hospital for treatment, outside the period of study, if the main purpose of his occupation during the period of study would be to facilitate attendance on his course.

• (5) Where a claimant has been required to move into temporary accommodation by reason of essential repairs being carried out to the dwelling normally occupied as his home and he is liable to make payments (including payments of mortgage interest or, in Scotland, payments under heritable securities or, in either case, analogous payments) in respect of either (but not both) the dwelling normally occupied or the temporary accommodation, he shall be treated as occupying as his home the dwelling in respect of which he is liable to make those payments.

• (6) Where a person is liable to make payments in respect of two (but not more than two) dwellings, he shall be treated as occupying both dwellings as his home only—

• (a) where he has left and remains absent from the former dwelling occupied as the home through fear of violence in that dwelling or of violence by a close relative or former partner and it is reasonable that housing costs should be met in respect of both his former dwelling and his present dwelling occupied as the home; or

• (b) in the case of partners, where one partner is a full-time student or is on a training course and it is unavoidable that he or they should occupy two separate dwellings and reasonable that housing costs should be met in respect of both dwellings; or

• (c) in the case where a person has moved into a new dwelling occupied as the home, except where sub-paragraph (5) applies, for a period not exceeding four benefit weeks from the first day of the benefit week where the move takes place on that day, but if it does not, from the first day of the next following benefit week if his liability to make payments in respect of two dwellings is unavoidable.

• (7) Where—

• (a) a person has moved into a dwelling and was liable to make payments in respect of that dwelling before moving in; and

• (b) he had claimed state pension credit before moving in and either that claim has not yet been determined or it has been determined but—

• (i) an amount has not been included under this Schedule; or

• (ii) the claim has been refused and a further claim has been made within four weeks of the date on which the claimant moved into the new dwelling occupied as the home; and

• (c) the delay in moving into the dwelling in respect of which there was liability to make payments before moving in was reasonable and—

• (i) that delay was necessary in order to adapt the dwelling to meet the disablement needs of the claimant, his partner or a person under the age of 20 for whom either the claimant or his partner is responsible; or

• (ii) the move was delayed pending local welfare provision or the outcome of an application under Part VIII of the 1992 Act for a social fund payment to meet a need arising out of the move or in connection with setting up the home in the dwelling; or

• (iii) the person became liable to make payments in respect of the dwelling while he was a patient or was in a care home or an independent hospital,

he shall be treated as occupying the dwelling as his home for any period not exceeding four weeks immediately prior to the date on which he moved into the dwelling and in respect of which he was liable to make payments.

• (8) This sub-paragraph applies to a person who enters a care home or an independent hospital—

• (a) for the purpose of ascertaining whether that care home or independent hospital suits his needs, and

• (b) with the intention of returning to the dwelling which he normally occupies as his home should, in the event that, the care home or independent hospital prove not to suit his needs,

and while in the care home or independent hospital, the part of the dwelling which he normally occupies as his home is not let, or as the case may be, sub-let to another person.

• (9) A person to whom sub-paragraph (8) applies shall be treated as occupying the dwelling he normally occupies as his home during any period (commencing with the day he enters the care home or independent hospital) not exceeding 13 weeks in which the person is resident in the care home or independent hospital, but only in so far as the total absence from the dwelling does not exceed 52 weeks.

• (10) A person, other than a person to whom sub-paragraph (1l) applies, shall be treated as occupying a dwelling as his home throughout any period of absence not exceeding 13 weeks, if, and only if—

• (a) he intends to return to occupy the dwelling as his home; and

• (b) the part of the dwelling normally occupied by him has not been let or, as the case may be, sub-let to another person; and

• (c) the period of absence is unlikely to exceed 13 weeks.

• (11) This sub-paragraph applies to a person whose absence from the dwelling he normally occupies as his home is temporary and—

• (a) he intends to return to occupy the dwelling as his home; and

• (b) while the part of the dwelling which is normally occupied by him has not been let or, as the case may be, sub-let; and

• (c) he is—

• (i) detained in custody on remand pending trial or, as a condition of bail, required to reside—

• (aa) in a dwelling, other than the dwelling he occupies as his home; or

• (bb) in premises approved under section 13 of the Offender Management Act 2007 ,

or, detained pending sentence upon conviction; or

• (ii) resident in a hospital or similar institution as a patient; or

• (iii) undergoing or, as the case may be, his partner or a person who has not attained the age of 20 and who is dependent on him or his partner is undergoing, in the United Kingdom or elsewhere, medical treatment, or medically approved convalescence, in accommodation other than in a care home or an independent hospital; or

• (iv) following, in the United Kingdom or elsewhere, a training course; or

• (v) undertaking medically approved care of a person residing in the United Kingdom or elsewhere; or

• (vi) undertaking the care of a person under the age of 20 whose parent or guardian is temporarily absent from the dwelling normally occupied by that parent or guardian for the purpose of receiving medically approved care or medical treatment, or

• (vii) a person who is, whether in the United Kingdom or elsewhere, receiving medically approved care provided in accommodation other than a care home or an independent hospital; or

• (viii) a full-time student to whom sub-paragraph (3) or (6)(b) does not apply; or

• (ix) a person, other than a person to whom sub-paragraph (8) applies, who is receiving care provided in a care home or an independent hospital; or

• (x) a person to whom sub-paragraph (6)(a) does not apply and who has left the dwelling he occupies as his home through fear of violence in that dwelling, or by a person who was formerly his partner or is a close relative; and

• (d) the period of his absence is unlikely to exceed a period of 52 weeks or, in exceptional circumstances, is unlikely substantially to exceed that period.

• (12) A person to whom sub-paragraph (11) applies is to be treated as occupying the dwelling he normally occupies as his home during any period of absence not exceeding 52 weeks beginning with the first day of that absence.

• (13) In this paragraph—

• (a) “medically approved” means certified by a medical practitioner;

• (b) “training course” means such a course of training or instruction provided wholly or partly by or on behalf of or in pursuance of arrangements made with, or approved by or on behalf of, Skills Development Scotland, Scottish Enterprise, Highlands and Islands Enterprise, a government department or the Secretary of State.

Housing costs not met

5

• (1) No amount may be met under the provisions of this Schedule—

• (a) in respect of housing benefit expenditure; or

• (b) where the claimant is in accommodation which is a care home or an independent hospital except where he is in such accommodation during a temporary absence from the dwelling he occupies as his home and in so far as they relate to temporary absences, the provisions of paragraph 4(8) to (12) apply to him during that absence.

• (1A) In paragraph (1), “housing benefit expenditure” means expenditure in respect of which housing benefit is payable as specified in regulation 10(1) of the Housing Benefit (General) Regulations 1987 but does not include any such expenditure in respect of which an additional amount is applicable under regulation 6(6)(c) (housing costs).

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Apportionment of housing costs

6

• (1) Where the dwelling occupied as the home is a composite hereditament and—

• (a) before 1st April 1990 for the purposes of section 48(5) of the General Rate Act 1967 (reduction of rates on dwellings), it appeared to a rating authority or it was determined in pursuance of subsection (6) of section 48 of that Act that the hereditament, including the dwelling occupied as the home, was a mixed hereditament and that only a proportion of the rateable value of the hereditament was attributable to use for the purpose of a private dwelling; or

• (b) in Scotland, before 1st April 1989 an assessor acting pursuant to section 45(1) of the Water (Scotland) Act 1980 (provision as to valuation roll) has apportioned the net annual value of the premises including the dwelling occupied as the home between the part occupied as a dwelling and the remainder,

the additional amount applicable under this Schedule shall be such proportion of the amounts applicable in respect of the hereditament or premises as a whole as is equal to the proportion of the rateable value of the hereditament attributable to the part of the hereditament used for the purposes of a private tenancy or, in Scotland, the proportion of the net annual value of the premises apportioned to the part occupied as a dwelling house.

• (2) Subject to sub-paragraph (1) and the following provisions of this paragraph, where the dwelling occupied as the home is a composite hereditament, the additional amount applicable under this Schedule shall be the relevant fraction of the amount which would otherwise be applicable under this Schedule in respect of the dwelling occupied as the home.

• (3) For the purposes of sub-paragraph (2), the relevant fraction shall be obtained in accordance with the formula—

$$AA+B$where— “A” is the current market value of the claimant’s interest in that part of the composite hereditament which is domestic property within the meaning of section 66 of the Act of 1988;“B” is the current market value of the claimant’s interest in that part of the composite hereditament which is not domestic property within that section.$

• (4) In this paragraph—

“composite hereditament” means—

• (a) as respects England and Wales, any hereditament which is shown as a composite hereditament in a local non-domestic rating list;

• (b) as respects Scotland, any lands and heritages entered in the valuation roll which are part residential subjects within the meaning of section 26(1) of the Act of 1987;

“local non-domestic rating list” means a list compiled and maintained under section 41(1) of the Act of 1988;

“local non-domestic rating list” means—

“the Act of 1987” means the Abolition of Domestic Rates Etc. (Scotland) Act 1987 ;

“the Act of 1988” means the Local Government Finance Act 1988 .

• (5) Where responsibility for expenditure which relates to housing costs met under this Schedule is shared, the additional amounts applicable under this Schedule shall be calculated by reference to the appropriate proportion of that expenditure for which the claimant is responsible.

The calculation for loans

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General provisions applying to housing costs

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The standard rate

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Excessive Housing Costs

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Loans on residential property

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Loans for repairs and improvements to the dwelling occupied as the home

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other housing costs

13

• (1) Subject to the deduction specified in sub-paragraph (2) and the reductions applicable in sub-paragraph (5), there shall be met under this paragraph the amounts, calculated on a weekly basis, in respect of the following housing costs—

• (a) payments by way of rent or ground rent relating to a long tenancy ...;

• (b) service charges;

• (c) payments by way of rentcharge within the meaning of section 1 of the Rentcharges Act 1977 ;

• (d) payments under a co-ownership scheme;

• (e) payments under or relating to a tenancy or licence of a Crown tenant;

• (f) where the dwelling occupied as the home is a tent, payments in respect of the tent and the site on which it stands.

• (2) Subject to sub-paragraph (3), the deductions to be made from the weekly amounts to be met under this paragraph are—

• (a) where the costs are inclusive of any of the items mentioned in paragraph 5(2) of Schedule I to the Housing Benefit (General) Regulations 1987 (payment in respect of fuel charges), the deductions prescribed in that paragraph unless the claimant provides evidence on which the actual or approximate amount of the service charge for fuel may be estimated, in which case the estimated amount;

• (b) where the costs are inclusive of ineligible service charges within the meaning of paragraph 1 of Schedule I to the Housing Benefit (General) Regulations 1987 (ineligible service charges) the amounts attributable to those ineligible service charges or where that amount is not separated from or separately identified within the housing costs to be met under this paragraph, such part of the payments made in respect of those housing costs which are fairly attributable to the provision of those ineligible services having regard to the costs of comparable services;

• (c) any amount for repairs and improvements, and for this purpose the expression “repairs and improvements” has the meaning in sub-paragraph (7).

• (3) Where arrangements are made for the housing costs, which are met under this paragraph and which are normally paid for a period of 52 weeks, to be paid instead for a period of 53 weeks, or to be paid irregularly, or so that no such costs are payable or collected in certain periods, or so that the costs for different periods in the year are of different amounts, the weekly amount shall be the amount payable for the year divided by 52.

• (4) Where the claimant or the claimant’s partner—

• (a) pays for reasonable repairs or redecorations to be carried out to the dwelling he occupies; and

• (b) that work was not the responsibility of the claimant or his partner; and

• (c) in consequence of that work being done, the costs which are normally met under this paragraph are waived,

then those costs shall, for a period not exceeding 8 weeks, be treated as payable.

• (5) Where in England and Wales an amount calculated on a weekly basis in respect of housing costs specified in sub-paragraph (l)(e) (Crown tenants) includes water charges, that amount shall be reduced—

• (a) where the amount payable in respect of water charges is known, by that amount;

• (b) in any other case, by the amount which would be the likely weekly water charge had the property not been occupied by a Crown tenant.

• (6) In this paragraph—

• (a) “co-ownership scheme” means a scheme under which a dwelling is let by a housing association and the tenant, or his personal representative, will, under the terms of the tenancy agreement or of the agreement under which he became a member of the association, be entitled, on his ceasing to be a member and subject to any condition stated in either agreement, to a sum calculated by reference directly or indirectly to the value of the dwelling;

• (b) “Crown tenant” means a person who occupies a dwelling under a tenancy or licence where the interest of the landlord belongs to Her Majesty in right of the Crown or to a government department or is held in trust for Her Majesty for the purposes of a government department except (in the case of an interest belonging to Her Majesty in right of the Crown) where the interest is under the management of the Crown Estate Commissioners or a relevant person ;

• (c) “housing association” has the meaning assigned to it by section 1(1) of the Housing Associations Act 1985;

• (d) “long tenancy” means a tenancy granted for a term of years certain exceeding twenty one years, whether or not the tenancy is, or may become, terminable before the end of that term by notice given by or to the tenant or by re-entry, forfeiture (or, in Scotland, irritancy) or otherwise and includes a lease for a term fixed by law under a grant with a covenant or obligation for perpetual renewal unless it is a lease by sub-demise from one which is not a long tenancy; and

• (e) “relevant person”, in relation to any property, rights or interests to which section 90B(5) of the Scotland Act 1998 applies, means the person who manages that property or those rights or interests.

• (7) For the purposes of sub-paragraph (2)(c), “repairs and improvements” means any of the following measures undertaken with a view to maintaining the fitness of the dwelling for human habitation or, where the dwelling forms part of a building, any part of a building containing that dwelling—

• (a) provision of a fixed bath, shower, wash basin, sink or lavatory, and necessary associated plumbing, including the provision of hot water not connected to a central heating system;

• (b) repairs to existing heating system;

• (c) damp proof measures;

• (d) provision of ventilation and natural lighting;

• (e) provision of drainage facilities;

• (f) provision of facilities for preparing and cooking food;

• (g) provision of insulation of the dwelling occupied as the home;

• (h) provision of electric lighting and sockets;

• (i) provision of storage facilities for fuel or refuse;

• (j) repairs of unsafe structural defects;

• (k) adapting a dwelling for the special needs of a disabled person; or

• (l) provision of separate sleeping accommodation for persons of different sexes aged 10 or over but under the age of 20 who live with the claimant and for whom the claimant or the claimant’s partner is responsible.

Persons residing with the claimant

14

• (1) Subject to the following provisions of this paragraph, the following deductions from the amount to be met under the preceding paragraphs of this Schedule in respect of housing costs shall be made—

• (a) in respect of a non-dependant aged 18 or over who is engaged in any remunerative work, £126.65;

• (b) in respect of a non-dependant aged 18 or over to whom paragraph (a) does not apply, £19.65.

• (2) In the case of a non-dependant aged 18 or over to whom sub-paragraph (1)(a) applies because he is in remunerative work, where the claimant satisfies the Secretary of State that the non-dependant’s gross weekly income is—

• (a) less than £183.00 the deduction to be made under this paragraph shall be the deduction specified in sub-paragraph (1)(b);

• (b) not less than £183.00 but less than £266.00, the deduction to be made under this paragraph shall be £45.15;

• (c) not less than £266.00 but less than £348.00, the deduction to be made under this paragraph shall be £62.00;

• (d) not less than £348.00 but less than £463.00, the deduction to be made under this paragraph shall be £101.35;

• (e) not less than £463.00 but less than £577.00, the deduction to be made under this paragraph shall be £115.45.

• (2A) Where a non-dependant deduction is being made under the Loans for Mortgage Interest Regulations 2017, the amount of the deduction under sub-paragraph (1) or (2) is to be reduced by an amount equal to that non-dependant deduction.

• (3) Only one deduction shall be made under this paragraph in respect of partners and where, but for this sub-paragraph, the amount that would fall to be deducted in respect of one partner is higher than the amount (if any) that would fall to be deducted in respect of the other partner, the higher amount shall be deducted.

• (4) In applying the provisions of sub-paragraph (2) in the case of partners, only one deduction shall be made in respect of the partners based on the partners’ joint weekly income.

• (5) Where a person is a non-dependant in respect of more than one joint occupier of a dwelling (except where the joint occupiers are partners), the deduction in respect of that non-dependant shall be apportioned between the joint occupiers (the amount so apportioned being rounded to the nearest penny) having regard to the number of joint occupiers and the proportion of the housing costs in respect of the dwelling occupied as the home payable by each of them.