The Universal Credit (Transitional Provisions) Regulations 2014

Made: 12th May 2014

Laid before Parliament: 14th May 2014

Coming into force: 16th June 2014

The Secretary of State for Work and Pensions makes the following Regulations in exercise of the powers conferred by section 42(2) and (3) of and paragraphs 1(1) and (2)(b), 3(1)(a) to (c), 4(1)(a), 5(1), (2)(c) and (d) and (3)(a) and 6 of Schedule 6 to the Welfare Reform Act 2012 .

In accordance with section 172(1) of the Social Security Administration Act 1992 (“the 1992 Act”), the Secretary of State has referred proposals in respect of these Regulations to the Social Security Advisory Committee.

In accordance with section 176(1) of the 1992 Act and, in so far as these Regulations relate to housing benefit, the Secretary of State has consulted with organisations appearing to him to be representative of the authorities concerned in respect of proposals for these Regulations.

PART 1 — INTRODUCTORY

Citation and commencement

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• (1) These Regulations may be cited as the Universal Credit (Transitional Provisions) Regulations 2014.

• (2) These Regulations come into force on 16th June 2014.

Interpretation

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• (1) In these Regulations—

• “the 2002 Act” means the Tax Credits Act 2002 ;

• “the 2007 Act” means the Welfare Reform Act 2007 ;

• “the Act” means the Welfare Reform Act 2012;

• “the 2006 (SPC) Regulations” means the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006;

• “assessment period” has the same meaning as in the Universal Credit Regulations ;

• “childcare costs element” has the meaning in the Universal Credit Regulations;

• “the Claims and Payments Regulations” means the Universal Credit, Personal Independence Payment, Jobseeker's Allowance and Employment and Support Allowance (Claims and Payments) Regulations 2013 ;

• “contributory employment and support allowance” means a contributory allowance under Part 1 of the 2007 Act as that Part has effect apart from the amendments made by Schedule 3, and Part 1 of Schedule 14, to the Act that remove references to an income-related allowance;

• “deadline day” has the meaning in regulation 44;

• “the Decisions and Appeals Regulations” means the Universal Credit, Personal Independence Payment, Jobseeker's Allowance and Employment and Support Allowance (Decisions and Appeals) Regulations 2013;

• “earned income” has the meaning in Chapter 2 of Part 6 of the Universal Credit Regulations;

• ...

• “existing benefit” means income-based jobseeker's allowance, income-related employment and support allowance, income support, housing benefit and child tax credit and working tax credit under the 2002 Act, but see also paragraph (3) and regulation 25(2);

• “final deadline” has the meaning in regulation 46;

• “First-tier Tribunal” has the same meaning as in the Social Security Act 1998 ;

• “HMRC” means Her Majesty’s Revenue and Customs;

• “housing benefit” means housing benefit under section 130 of the Social Security Contributions and Benefits Act 1992 ;

• “income-based jobseeker's allowance” has the same meaning as in the Jobseekers Act 1995 ;

• “income-related employment and support allowance” means an income-related allowance under Part 1 of the 2007 Act ;

• “income support” means income support under section 124 of the Social Security Contributions and Benefits Act 1992;

• “indicative UC amount” has the meaning in regulation 54;

• “joint-claim jobseeker's allowance” means old style JSA, entitlement to which arises by virtue of section 1(2B) of the Jobseekers Act 1995 ;

• “migration day” has the meaning in regulation 49;

• “migration notice” has the meaning in regulation 44;

• “new claimant partner” has the meaning given in regulation 7;

• “new style ESA” means an allowance under Part 1 of the 2007 Act as amended by the amendments made by Schedule 3, and Part 1 of Schedule 14, to the Act that remove references to an income-related allowance;

• “new style JSA” means an allowance under the Jobseekers Act 1995 as amended by the amendments made by Part 1 of Schedule 14 to the Act that remove references to an income-based allowance;

• “notified person” has the meaning in regulation 44;

• “old style ESA” means an employment and support allowance under Part 1 of the 2007 Act as that Part has effect apart from the amendments made by Schedule 3, and Part 1 of Schedule 14, to the Act that remove references to an income-related allowance;

• “old style JSA” means a jobseeker's allowance under the Jobseekers Act 1995 as that Act has effect apart from the amendments made by Part 1 of Schedule 14 to the Act that remove references to an income-based allowance;

• “partner” in relation to a person (“A”) means a person who forms part of a couple with A ;

• “qualifying age for state pension credit” has the meaning given by section 1(6) of the State Pension Credit Act 2002;

• “qualifying claim” has the meaning in regulation 48;

• “qualifying young person” has the same meaning as in the Universal Credit Regulations, but see also regulation 28;

• “severe disability premium” means the premium in relation to an employment and support allowance under paragraph 6 of Schedule 4 to the Employment and Support Allowance Regulations 2008 or, as the case may be, the corresponding premium in relation to income support, old style JSA or housing benefit;

• “specified accommodation” means accommodation to which one or more of sub-paragraphs (2) to (5) of paragraph 3A of Schedule 1 to the Universal Credit Regulations applies;

• “state pension credit” means state pension credit under the State Pension Credit Act 2002;

• “tax credit” (including “child tax credit” and “working tax credit”), “tax credits” and “tax year” have the same meanings as in the 2002 Act ;

• “tax credit closure notice” means a notice issued under article 3A (tax credit closure notice) of the Welfare Reform Act 2012 (Commencement No. 32 and Savings and Transitional Provisions) Order 2019;

• “temporary accommodation” means accommodation which falls within Case 1 or Case 2 under paragraph 3B of Schedule 1 to the Universal Credit Regulations;

• “total legacy amount” has the meaning in regulation 53;

• “transitional capital disregard” has the meaning in regulation 51;

• “transitional element” has the meaning in regulation 52;

• “the Universal Credit Regulations” means the Universal Credit Regulations 2013 ;

• “Upper Tribunal” has the same meaning as in the Social Security Act 1998.

• (2) For the purposes of these Regulations—

• (a) the date on which a claim for universal credit is made is to be determined in accordance with the Claims and Payments Regulations ;

• (b) where a couple is treated, in accordance with regulation 9(8) of the Claims and Payments Regulations, as having made a claim for universal credit, references to the date on which the claim is treated as made are to the date of formation of the couple;

• (c) where a regulation refers to entitlement to an existing benefit on the date on which a claim for universal credit is made or treated as made, such entitlement is to be taken into account notwithstanding the effect of regulations 5, 7 and 8 or termination of an award of the benefit before that date by virtue of an order made under section 150(3) of the Act .

• (3) In these Regulations—

• (a) references to an award of income-based jobseeker’s allowance are to an award of old style JSA where the claimant is, or joint claimants are, entitled to the income-based allowance; and

• (b) references to an award of income-related employment and support allowance are to an award of old style ESA where the claimant is entitled to the income-related allowance.

• (4) In regulation 46 (termination of existing benefits if no claim before the deadline) ... “terminate” in relation to an award of income-based jobseeker’s allowance or income-related employment and support allowance means treating that award as if the following provisions had come into force (including where a saving provision has ceased to apply) in relation to that award—

• (a) section 33(1)(a) and (b) and (2) of the Act (abolition of benefits);

• (b) paragraphs 22 to 26 of Schedule 3 to the Act (abolition of benefits: consequential amendments) and section 33(3) of the Act in so far as it relates to those paragraphs; and

• (c) the repeals in Part 1 of Schedule 14 to the Act (abolition of benefits superseded by universal credit) that come into force if a claim is made for universal credit.

Revocation and saving of the Universal Credit (Transitional Provisions) Regulations 2013

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• (1) The Universal Credit (Transitional Provisions) Regulations 2013 (“the 2013 Regulations”) are revoked, subject to the savings in paragraphs (2) to (4).

• (2) Chapters 2 and 3 of Part 2 (Pathfinder Group and treatment of invalid claims) of the 2013 Regulations continue to have effect in relation to a claim for universal credit—

• (a) which was made before the date on which these Regulations come into force (“the commencement date”); and

• (b) in respect of which no payment has been made to the claimant before the commencement date.

• (3) Regulation 19 of the 2013 Regulations (advance payments of universal credit) continues to have effect in relation to an advance payment which was made in accordance with that regulation before the commencement date and regulation 17 of these Regulations does not apply to such a payment.

• (4) Any other provision of the 2013 Regulations continues to have effect in so far as is necessary to give full effect to paragraphs (2) and (3).

PART 2 — TRANSITION TO UNIVERSAL CREDIT

CHAPTER 1 — ENTITLEMENT TO CLAIM UNIVERSAL CREDIT

Secretary of State discretion to determine that claims for universal credit may not be made

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CHAPTER 2 — ENTITLEMENT TO OTHER BENEFITS

Exclusion of entitlement to certain benefits

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• (1) Except as provided in paragraph (2), a claimant is not entitled to—

• (a) income support;

• (b) housing benefit;

• (c) a tax credit; or

• (d) state pension credit ... ,

in respect of any period when the claimant is entitled to universal credit .

• (2) Entitlement to universal credit does not preclude the claimant from entitlement—

• (a) to housing benefit in respect of specified accommodation or temporary accommodation;

• (ab) to housing benefit or income support where regulation 8(2A) or 46(1) applies; ...

• (b) during the first assessment period for universal credit, where the claimant is a new claimant partner, to—

• (i) income support, where an award to which the new claimant partner is entitled terminates, in accordance with regulation 7(4), after the first date of entitlement to universal credit;

• (ii) housing benefit, where regulation 7(5)(b) or (c) applies and an award of housing benefit to which the new claimant partner is entitled terminates after the first date of entitlement to universal credit; ...

• (iii) a tax credit, where an award to which the new claimant partner is entitled terminates, in accordance with the 2002 Act, after the first date of entitlement to universal credit; or

• (iv) state pension credit, where an award to which the new claimant partner is entitled terminates after the first date of entitlement to universal credit; or

• (c) during the last assessment period for universal credit, where the claimant reaches the qualifying age for state pension credit and paragraph 26 of Schedule 1 to the Decisions and Appeals Regulations applies, to housing benefit or state pension credit from the date the claimant reaches that age

Exclusion of claims for certain existing benefits

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Termination of awards of certain existing benefits: new claimant partners

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• (1) This regulation applies where—

• (a) a person (“A”) who was previously entitled to universal credit ... ceases to be so entitled on becoming a member of a couple;

• (b) the other member of the couple (“the new claimant partner”) was not entitled to universal credit ... immediately before formation of the couple; and

• (c) the couple is treated, in accordance with regulation 9(8) of the Claims and Payments Regulations, as having made a claim for universal credit; ...

• (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) Subject to paragraphs (4) and (5), where this regulation applies, all awards of income support or housing benefit to which the new claimant partner would (were it not for the effect of these Regulations) have been entitled during the relevant period are to terminate, by virtue of this regulation—

• (a) on the day before the first date on which the joint claimants are entitled to universal credit in connection with the claim; or

• (b) if the joint claimants are not entitled to universal credit, on the day before the first date on which they would have been so entitled, if all of the basic and financial conditions applicable to them had been met; or

• (c) if the new claimant partner became entitled to an award after the date on which it would otherwise terminate under sub-paragraph (a) or (b), at the beginning of the first day of entitlement to that award.

• (3) For the purposes of this regulation, “the relevant period” is the period starting with the first day of the assessment period (in relation to A's award of universal credit) during which A and the new claimant partner formed a couple and ending with the date of formation of the couple.

• (4) Where the new claimant partner was entitled during the relevant period to income support, he or she was at that time a member of a couple and the award included an amount in respect of the new claimant partner and their partner at that time (“P”), the award of income support terminates, by virtue of this regulation, on the date on which the new claimant partner and P ceased to be a couple for the purposes of the Income Support (General) Regulations 1987, unless it terminates on that date in accordance with other legislative provision, or terminated on an earlier date.

• (5) An award of housing benefit to which the new claimant partner is entitled does not terminate by virtue of this regulation where—

• (a) the award is in respect of specified accommodation or temporary accommodation; ...

• (b) the new claimant partner leaves the accommodation in respect of which housing benefit was paid, in order to live with A; or

• (c) the new claimant partner has reached the qualifying age for state pension credit and the award is made in accordance with the 2006 (SPC) Regulations

• (6) Where an award terminates by virtue of this regulation, any legislative provision under which the award terminates on a later date does not apply.

• (7) Where the new claimant partner was, immediately before forming a couple with A, treated by regulation 11 as being entitled to a tax credit, the new claimant partner is to be treated, for the purposes of the 2002 Act, as having made a claim for the tax credit in question for the current tax year.

Termination of awards of certain existing benefits: new claimant partners

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• (1) This regulation applies where—

• (a) a claim for universal credit (other than a claim which is treated, in accordance with regulation 9(8) of the Claims and Payments Regulations, as having been made) is made , whether or not subsequently withdrawn; ...

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

• (2) Where this regulation applies, all awards of ...a tax credit to which the claimant (or, in the case of joint claimants, either of them) is entitled on the date on which the claim is made are to terminate, by virtue of this regulation—

• (a) on the day before the first date on which the claimant is entitled to universal credit in connection with the claim; or

• (b) if the claimant is not entitled to universal credit, on the day before the first date on which he or she would have been so entitled, if all of the basic and financial conditions applicable to the claimant had been met.

• (2A) Subject to paragraph (3), where this regulation applies, an award of income support or housing benefit to which the claimant is entitled on the day mentioned in paragraph (2)(a) or (b) terminates on the last day of the period of two weeks beginning with the day after that day (whether or not the person is also entitled to an award of ... a tax credit).

• (2B) This regulation does not apply in the case of a single claimant who has reached the qualifying age for state pension credit or in the case of joint claimants who have both reached the qualifying age for state pension credit.

• (3) An award of housing benefit to which a claimant is entitled in respect of specified accommodation or temporary accommodation does not terminate by virtue of this regulation.

• (4) Where this regulation applies and the claimant (or, in the case of joint claimants, either of them) is treated by regulation 11 as being entitled to a tax credit—

• (a) the claimant (or, as the case may be, the relevant claimant) is to be treated, for the purposes of the 2002 Act and this regulation, as having made a claim for the tax credit in question for the current tax year; and

• (b) if the claimant (or the relevant claimant) is entitled on the date on which the claim for universal credit was made to an award of a tax credit which is made in respect of a claim which is treated as having been made by virtue of sub-paragraph (a), that award is to terminate, by virtue of this regulation—

• (i) on the day before the first date on which the claimant is entitled to universal credit; or