Guidance

A4/2022: The Social Security (Habitual Residence) (Amendment) Regulations 2022 and the Homes for Ukraine Scheme

Updated 20 December 2022

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This publication is available at https://www.gov.uk/government/publications/housing-benefit-adjudication-circulars-2022/a42022-the-social-security-habitual-residence-amendment-regulations-2022-and-the-homes-for-ukraine-scheme

Guidance Manual

The information in this circular is relevant to Chapter C4, paragraphs 4.64 to 4.88 of the HB Guidance Manual covering actual habitual residence.

Queries

You can get extra copies of this circular/copies of previous circulars.

For queries about the content of this circular relating to Homes for Ukraine, contact [email protected]

For queries about the technical content of the circular on the Habitual Residence Test contact [email protected]

If you need to ask about the distribution of this circular, contact [email protected]

Who should read

All Housing Benefit staff

Action

For information

Subject

The Social Security (Habitual Residence) (Amendment) Regulations 2022 and the Homes for Ukraine Scheme

Introduction

1. This circular provides guidance on both the:

  • new regulations amending the Habitual Residence Test (HRT) for those coming from the Ukraine

  • Homes for Ukraine scheme and the impact on Housing Benefit (HB)

Background

2. Following the Russian Invasion of Ukraine on 24 February 2022, the Department for Work and Pensions has been working with other government departments to ensure a consistent approach in supporting UK nationals, Ukrainians and non-Ukrainian family members who may decide to return or come to the UK. Some of these individuals may require access to Welfare Benefits.

3. As part of the wider UK government response to the situation in Ukraine, the Home Office announced the Ukraine Family Scheme and the Homes for Ukraine on 1 March 2022.

New Legislation and impact on HB

4. On 22 March 2022 DWP introduced legislation which inserts a category to the list of persons who are exempted from having to satisfy the HRT for HB. The category covers those who have left Ukraine in connection with the Russian invasion on 24 February 2022 and who were residing in Ukraine immediately before 1 January 2022.

5. An amendment was also made in the Housing Benefit Regulations 2006 and the Housing Benefit (persons who have attained the qualifying age for state pension credit) Regulations 2006 to the existing list of persons exempted from having to satisfy the HRT, to make clear that all those granted types of leave outside the Immigration Rules are exempted from the HRT requirement for HB.

People fleeing from Ukraine

6. From 22 March 2022 the following cohorts will be exempt from the HRT (for all income related benefits):

  • Those with a right of abode in the UK, including British nationals and non-British nationals with pre-existing leave in the UK who left Ukraine in connection with the Russian invasion on 24 February 2022 and were resident in Ukraine immediately before 1 January 2022.

  • Anyone granted leave either under or outside the Immigration Rules who left Ukraine in connection with the Russian invasion on 24 February 2022 and were resident in Ukraine immediately before 1 January 2022.

  • Existing claimants who are in Ukraine and are unable to return.

7. For existing HB claimants currently stranded in Ukraine and unable to return to the UK the temporary absence rule will apply. Any queries can be raised through the Local Authority Partnership, Engagement and Delivery division by emailing [email protected]

Ukraine Family Scheme

8. To qualify for the Ukraine Family Scheme their family member must be one of the following:

  • a British national

  • someone settled in the UK – for example, they have indefinite leave to remain, settled status or proof of permanent residence

  • someone from the EU, Iceland, Liechtenstein, Norway or Switzerland who has pre-settled status and started living in the UK before 1 January 2021

  • someone with refugee status or humanitarian protection in the UK

9. Those arriving under the scheme are provided with 36 months leave. This scheme currently operates on a concessionary basis with leave being granted outside of the Immigration Rules on compelling compassionate grounds with the intention of adding the scheme to a new appendix to the Immigration Rules in the near future. In any event, the leave granted will come with a right to work and recourse to public funds.

10. Further guidance about this scheme and the impact on existing HB claimants will be issued at a later date.

Homes for Ukraine scheme

11. On 1 March 2022, the Home Secretary announced the creation of a humanitarian sponsorship pathway for people fleeing the conflict in Ukraine. The Homes for Ukraine scheme was subsequently launched on 14 March 2022 by the Secretary of State for Levelling Up, Housing and Communities.

12. This scheme allows Ukrainian nationals and their immediate family members with no family ties to the UK, who were resident in Ukraine prior to 1 January 2022, to be sponsored by individuals or organisations who can offer them a home, such as a spare room or an unoccupied residential self-contained unit.

13. Sponsors are expected to provide accommodation for at least 6 months, which is fit for people to live in, and suitable for the number of people to be accommodated.

14. The number of people who can access this scheme is uncapped and is dependent on the capacity of the sponsors who come forward.

Eligible Ukrainian nationals

15. Ukrainian nationals (or immediate family members of a Ukrainian national), who were resident in Ukraine prior to 1 January 2022 are eligible to be sponsored under the Homes for Ukraine scheme. Successful applicants will receive 36 months leave in the UK on arrival with recourse to public funds and a right to work.

Sponsors

16. Sponsors will be eligible for an optional, tax free ‘thank you payment’ of £350 per month, for up to 12 months. The payment will be made after the local council has carried out a check on the sponsor’s accommodation.

17. Sponsors will need to provide a minimum of six months of accommodation and can sponsor for as long as they choose in excess of that but will not receive payment after 12 months per residential address.

18. There will be a maximum of one payment per address, regardless of the number of beneficiaries hosted, and regardless of size or location of the property. In England, the payment will be delivered through local authorities.

19. Further guidance will be issued on how the payment will be delivered in Scotland and Wales once this has been announced.

Impact on HB of the Homes for Ukraine Scheme

20. There are no changes to HB regulations but the following paragraphs explain in more detail how hosting a Ukrainian national or family under the Homes for Ukraine Scheme will be treated for HB purposes. You can also find some ‘Key housing messages and housing support costs questions and answers’ at Annex A

Rental Liability

21. No rental liability will be created between the sponsor and the Ukrainian nationals they offer a home to, while they are part of the Homes for Ukraine scheme, which means there will be no income from board and / or lodging declared by any claimants who volunteer for the Scheme.

‘Thank you’ payment

22. Claimants who opt to receive the monthly £350 ‘thank you’ payment must declare it and it should be recorded on the claimant’s claim but as it is a payment of local welfare provision, it is disregarded as both unearned income and capital.

Size criteria

23. As the Ukrainian national and their family members, if applicable, are to be treated as not normally residing with their host, there is no change to the number of bedrooms which the claimant is entitled to under the removal of the spare room subsidy or the local housing allowance.

Non-dependant deductions

24. As the Ukrainian national and their family members, if applicable, are living temporarily with the host they are not considered to be normally residing with them, as set out in Commissioners Decision CH/4004/2004. This means that they don’t attract a non-dependant deduction in Housing Benefit.

Severe Disability Premium

25. As the Ukrainian national and their family members, if applicable, are living temporarily with the host they are not considered to be normally residing with them. This means that the host will not lose their entitlement to the severe disability premium.

Discretionary Housing Payments

26. There are no changes to the rules concerning entitlement to help through Discretionary Housing Payments.

Benefit cap

27. The benefit cap will apply as normal.

Annex A: Homes for Ukraine Scheme: Key housing messages and housing support costs questions and answers

Key housing messages:

  • The thank you payment is not a rental liability.

  • The host will be no better or worse off in terms of their benefit entitlement.

  • The Ukrainian national (evacuee) will only be able to apply for housing costs support in Housing Benefit (HB) or Universal Credit (UC) at the point when they have a rental liability (after the Homes for Ukraine scheme ends).

Housing support costs questions and answers

Q1. Will hosting a Ukrainian family entitle a claimant to an extra bedroom?

A1. No, as the Ukrainian national and their family members, if applicable, are to be treated as not normally residing with their host, there is no change to the number of bedrooms which the claimant is entitled to under the removal of the spare room subsidy or the local housing allowance.

Q2. Are there any changes to the rules concerning entitlement to help through Discretionary Housing Payments (DHPs)?

A2. No, there are no changes to the rules concerning entitlement to help through DHPs.

Q3. Will non-dependant deductions apply?

A4. As the Ukrainian national and their family members, if applicable, are living temporarily with the host they are not considered to be normally residing with them. This means that they don’t attract either a non-dependant deduction in HB or a housing cost contribution in UC.

Q4. Will the presence of a Ukrainian national in the household affect entitlement to the severe disability premium?

A4. As the Ukrainian national and their family members, if applicable, are living temporarily with the host they are not considered to be normally residing with them. This means that the host will not lose their entitlement to the severe disability premium.

Q5. Is the £350 thank you payment treated as income or capital?

A5. Payment of the £350 thank you payment can be disregarded as income and capital because it is a payment of local welfare provision made by local authorities.

Q6. Why will the Removal of the Spare Room Subsidy (RSRS) still apply in cases where a Ukrainian national is living in the spare room of a claimant in the social rented sector?

A6. Yes, as the Ukrainian national and their family members, if applicable, are to be treated as not normally residing with their host, there is no change to the number of bedrooms which the claimant is entitled to under the RSRS. We have always been clear that a host will be no better or worse off in terms of their benefit entitlement.

Q7. Why can a Ukrainian national receive more money for rent than a UK national in the Private rented sector who gets the Shared accommodation rate of Local Housing Allowance?

A7. The circumstances are not comparable as the ‘thank you payment’ is not a rental liability and the payment goes to the host.

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