C7C18C16C17C19C20C21Part 1Universal credit

Annotations:
Modifications etc. (not altering text)
C18

Pt. 1 modified (coming into force in accordance with art. 1 of the amending S.I.) by The Social Security (Ireland) Order 2019 (S.I. 2019/622), art. 2; 2020 c. 1, Sch. 5 para. 1(1)

C16

Pts. 1, 4 modified (coming into force in accordance with art. 1 of the amending S.I.) by The Social Security (Iceland) (Liechtenstein) (Norway) (Citizens' Rights Agreement) Order 2019 (S.I. 2019/1302), art. 2; 2020 c. 1, Sch. 5 para. 1(1)

C17

Pts. 1, 4 modified (coming into force in accordance with art. 1 of the amending S.I.) by The Social Security (Switzerland) (Citizens' Rights Agreement) Order 2019 (S.I. 2019/1303), art. 2; 2020 c. 1, Sch. 5 para. 1(1)

C20

Pts. 1, 4 modified (coming into force in accordance with art. 1 of the amending S.I.) by The Social Security (Switzerland) Order 2021 (S.I. 2021/1088), art. 2(1)-(3), Sch.

C21

Pts. 1, 4 modified (coming into force in accordance with art. 1(3) of the amending S.I.) by The Social Security (Iceland) (Liechtenstein) (Norway) Order 2023 (S.I. 2023/1060), art. 2, Sch.

C7CHAPTER 1Entitlement and awards

Introductory

C15I12C7I24I36I48I60I72I84I96I108I120I132I144I156I168I180I192I2041C7Universal credit

1

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

2

Universal credit may, subject as follows, be awarded to—

C8a

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,

c

an amount for housing, and

d

amounts for other particular needs or circumstances.

2C7Claims

I13I25I37I49I61I73I85I97I109I121I133I145I157I169I181I193I2051

A claim may be made for universal credit by—

a

a single person, or

b

members of a couple jointly.

I52

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

Entitlement

I14C7I26I38I50I62I74I86I98I110I122I134I146I158I170I182I194I2063C7Entitlement

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.

4C7Basic conditions

I15I27I39I51I63I75I87I99I111I123I135I147I159I171I183I195I2071

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

C1a

is at least 18 years old,

b

has not reached the qualifying age for state pension credit,

C4c

is in Great Britain,

C2C3C11d

is not receiving education, and

e

has accepted a claimant commitment.

I62

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).

I63

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

I15I27I39I51I63I75I87I99I111I123I135I147I159I171I183I195I2074

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.

I65

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.

I66

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.

I67

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.

I1I16C7I28I40I52I64I76I88I100I112I124I136I148I160I172I184I196C13I2085C7Financial conditions

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.

I17C7I29I41I53I65I77I89I101I113I125I137I149I161I173I185I197I2096C7Restrictions on entitlement

1

Entitlement to universal credit does not arise—

I2a

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;

c

for a prescribed period at the beginning of a period during which those requirements are met.

2

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

I23

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

Awards

7C7Basis of awards

I18I30I42I54I66I78I90I102I114I126I138I150I162I174I186I198I2101

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

I72

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

I73

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;

c

about the amount payable in respect of a period shorter than an assessment period.

I18I30I42I54I66I78I90I102I114I126I138I150I162I174I186I198I2104

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

I19C7I31I43I55I67I79I91I103I115I127I139I151I163I175I187I199C12C14I2118C7Calculation of awards

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),

c

any amount included under section 11 (housing costs), and

d

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

I33

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

9C7Standard allowance

I20I32I44I56I68I80I92I104I116I128I140I152I164I176I188I200I2121

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.

I82

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

I83

Regulations may provide for exceptions to subsection (1).

10C7Responsibility for children and young persons

I21I33I45I57I69I81I93I105I117I129I141I153I165I177I189I201I2131

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.

F21A

But the amount mentioned in subsection (1) is to be available in respect of a maximum of two persons who are either children or qualifying young persons for whom a claimant is responsible.

I92

Regulations may make provision for the inclusion of an additional amount F3for each child or qualifying young person F4for whom a claimant is responsible who is disabled.

I93

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

I94

Regulations may provide for exceptions to subsection (1) F5or (1A).

I95

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

11C7Housing costs

I22C5C6I34I46I58I70I82I94I106I118I130I142I154I166I178I190C10I202I2141

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.

I22I34I46I58I70I82I94I106I118I130I142I154I166I178I190I202I2142

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.

I103

Regulations may make provision as to—

a

what is meant by payments in respect of accommodation for the purposes of this section F6...;

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.

I10C94

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

I105

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.

12C7Other particular needs or circumstances

I4I23I35I47I59I71I83I95I107I119I131I143I155I167I179I191I203I2151

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.

I23I35I47I59I71I83I95I107I119I131I143I155I167I179I191I203I2152

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

F1a

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

b

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

c

the fact that a claimant has regular and substantial caring responsibilities for a severely disabled person.

I113

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

I114

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.