Guidance

A4/2021: The Universal Credit (Persons who have attained state pension credit qualifying age) (Amendment) Regulations 2020

Updated 31 January 2022

Who should read

All Housing Benefit (HB) staff

Action

For information

Subject

The Universal Credit (Persons who have attained state pension credit qualifying age) (Amendment) Regulations 2020

Guidance Manual

The information in this circular does not affect the content of the HB Guidance Manual.

Queries

Extra copies of this circular/copies of previous circulars can be found at Housing Benefit for local authorities: adjudication circulars

For queries about the:

• general or technical content of this circular, contact [email protected]
• distribution of this circular, contact [email protected]

Introduction

1. This circular provides information about the Universal Credit (Persons who have attained state pension credit qualifying age) (Amendment) Regulations 2020 (SI 2020/655) which were laid on 29 June 2020 and came into force on 25 November 2020.

2. SI 2020/655 makes amendments to the Housing Benefit (persons who have attained the qualifying age for state pension credit) Regulations 2006 (SI 2006/214) but makes no changes to the Housing Benefit Regulations 2006 (SI 2006/213).

3. SI 2020/655 also makes amendments to the mixed age couples provisions in the Welfare Reform Act 2012 (Commencement No.31 and Savings and Transitional Provisions and Commencement No.21 and 23 and Transitional and Transitory Provisions (Amendment)) Order 2019 (SI 2019/37) See circulars A3/2019 and A9/2019 for guidance on mixed age couples.

Background

4. Entitlement to Universal Credit (UC) ends when a single person or the younger member of a mixed age couple reaches state pension age. At this point, claimants can make a claim for Pension Credit and/or Housing Benefit (HB).

5. UC legislation provided for a part-month payment to cover the period from the start of the monthly assessment period until the day State Pension age was reached if an advance claim for Pension Credit had been made.

Changes to UC regulations

6. SI 2020/655 amends UC regulations so that entitlement to UC can continue during the whole of the final assessment period in which the claimant reaches Pension Credit qualifying age.

7. The regulations also make changes to the restrictions on:

• claims for HB and
• entitlement to HB and Pension Credit – during the final assessment period in which the UC claimant reaches Pension Credit qualifying age

8. There are also changes to the restrictions on entitlement to HB and Pension Credit during the first assessment period in which a UC claimant forms a mixed age couple with a partner who has reached Pension Credit qualifying age.

Entitlement to UC, HB and Pension Credit during final UC assessment period

Entitlement to UC

9. A basic condition of entitlement to UC is that the claimant has not reached the qualifying age for Pension Credit. When a UC single claimant, or the younger member of a mixed-age couple, reaches Pension Credit qualifying age, the award of UC is superseded and terminated on the grounds of a relevant change of circumstances. Before 25 November 2020, the effective date of the supersession was:

• where no advance Pension Credit claim is made, the first day of the assessment period in which the claimant reached Pension Credit qualifying age; or
• where the person made an advance claim for Pension Credit, the date the claimant reached Pension Credit qualifying age

10. From 25 November 2020, when a UC award is superseded because the claimant reaches the qualifying age for Pension Credit, the effective date of the decision is the first day of the assessment period after the assessment period in which the change occurs. This applies whether or not the person makes a claim for Pension Credit.

11. This applies where the UC claimant who reaches Pension Credit qualifying age is:

• a single claimant, or
• the younger member of a mixed age couple

12. This change means that UC continues in payment for the whole assessment period during which the claimant or younger member of a mixed-age couple reaches Pension Credit qualifying age.

Example

Norman and Audrey are UC joint claimants. Their assessment period begins on the 4th of every month. Audrey has already reached Pension Credit qualifying age. Norman reaches Pension Credit qualifying age on 7 January 2021. Audrey and Norman’s award of UC is superseded and terminates on 3 February 2021.

Claims for HB

13. Normally a UC claimant is precluded from claiming HB. However, there are exceptions to this. From 25 November 2020 the exceptions include a claim for State Pension age HB by a UC claimant who reaches the Pension Credit qualifying age and whose award of UC ends as in paragraph 10.

Entitlement to HB

14. Normally a UC claimant is not entitled to HB for any period of UC entitlement. However, there are exceptions to this. From 25 November 2020 the exceptions include entitlement to HB for UC claimants who reach the qualifying age for Pension Credit, and whose UC awards terminate as in paragraph 10.

Separation or bereavement

15. Where the claimant who has reached Pension Credit qualifying age is no longer a member of a mixed-age couple due to separation, divorce or bereavement, the claimant is treated as single from the date UC entitlement ends rather than from the date that the couple separated or the younger member of the couple died.

16. UC entitlement normally ends from the first day of the assessment period in which the couple separates, is treated as separated or divorces. In bereavement cases, the surviving member of the couple may remain entitled to UC for up to two assessment periods after the assessment period in which the partner died. This also applies to mixed age couples where the surviving member has reached the qualifying age for Pension Credit at the date of the bereavement. They may choose instead to relinquish entitlement to UC at any time during the three month run-on period.

Example

Chantel and Paschal are a mixed age couple entitled to UC. Their assessment period begins on the 9th of the month. Chantel has already reached the State Pension age. Paschal dies on 28 November 2020. Chantel can remain entitled to UC as if she were still a joint claimant until 8 February 2021, and claim Pension Credit and HB from 9 February 2021 as a single claimant. Alternatively, she can choose to give up her entitlement to UC earlier. Chantal decides to give up her UC on 3 December 2020. Her award of UC terminates on 8 November 2020, and she can be treated as a single claimant from 9 November 2020 and claim Pension Credit and HB from the same date.

New income disregard in HB

17. Social Security benefits are regarded as income for HB purposes. From 25 November 2020, UC is added to the list of benefits which can be disregarded. This means that the final payment of UC is disregarded when a claim for State Pension age HB is made during the final UC assessment period.

Example

Leigh is a single claimant entitled to UC, and his assessment period begins on the 8th day of the month. On 15 February 2021 he reaches the qualifying age for Pension Credit. Leigh’s entitlement to UC terminates on 7 March 2021. Leigh claims HB from 15 February 2021. His UC award for the period 15 February 2021 to 7 March 2021 is disregarded as income when calculating his HB entitlement.

Entitlement to HB and Pension Credit during first UC Assessment Period

18. Normally a UC claimant is not entitled to HB or Pension Credit for any period of UC entitlement. However, there are exceptions to this during the first UC assessment period where the claimant is a new claimant partner.

19. From 25 November 2020 the exceptions include where the new claimant partner:

• has reached State Pension age, and
• is entitled to an award of State Pension age HB or Pension Credit – and the award of State Pension age HB or Pension Credit ends after the first day of entitlement to UC

Example

Sarah has been entitled to UC as a single claimant since 10 November 2018. On 28 January 2021 she joins her partner Lee who has reached the qualifying age for State Pension age, and is entitled to Pension Credit and State Pension age HB. Sarah and Lee are treated as claiming UC as joint claimants from 10 January 2021, the first day of the assessment period in which they formed a couple. Lee is paid Pension Credit in arrears, so his award of Pension Credit ends with effect from the first day of the Pension Credit benefit week which includes 28 January 2021 (the day on which they formed a couple). His award of State Pension age HB ends with effect from the first day of the HB benefit week following the benefit week which includes 28 January 2021. The awards of HB and Pension Credit do not affect the amount of UC entitlement.

UC claimants approaching State Pension age

20. When a UC claimant is approaching State Pension age a letter is posted on the claimants UC account. The letter explains that the claimant will no longer get UC when they reach State Pension age and this will signpost them to:

• claim State Pension
• apply for Pension Credit including if they want to claim HB
• apply for HB only

21. All claimants are signposted to the appropriate www.gov.uk pages and telephone numbers for the Department for Work and Pensions benefit helplines for State Pension and Pension Credit. There is also a section in the letter that signposts the claimant to applying for HB.

22. When the claimant calls the Pension Service, if they have housing costs then they can apply for HB alongside their Pension Credit claim. This will use the existing business process and a Local Authority Claim Information document will be sent to the local authority (LA) via Transfer Your Files.

23. If the claimant does not claim Pension Credit, then they will need to contact the LA and apply directly for HB. Claimants will be signposted to get more information from www.gov.uk and search ‘Apply for Housing Benefit’.

24. The claimant is responsible for notifying UC that they have claimed HB.