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Service charges for owner occupiers
Hi Rightsnet Community,
Can anyone provide the UC regs where it states you have to wait 9 months and cannot have any earned income in those 9 months before you can receive any help with housing costs for service charges.
This is for an owner occupier and I know rules are different for renters.
Martin Hodges
Dudley Welfare Rights Service
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Schedule 5 of the Universal Credit Regulations 2013 - specifically paragraph 5
https://www.legislation.gov.uk/uksi/2013/376/schedule/5
Did they just completely omit this in updating the SMI regs?
Did they just completely omit this in updating the SMI regs?
Originally schedule 5 of the UC Regs dealt with both support for mortgage interest as well as other charges which can be included in UC such as service charges.
When we moved to a loan for mortgage interest, the SMI provisions were excised from schedule 5 and now it just deals with the other charges.
Mortgage interest is now dealt with under the Loans for Mortgage Interest Regulations 2017 which operate differently.
Thank you Elliot,
Another sneaky move by DWP !!
The LMI Regs do NOT provide that you cannot have any earned income during the 9 month wait
Regulation 3(4) provides
(4) A UC claimant shall not be eligible for the offer of loan payments if—
(a)where the claimant is a single person, the claimant has any earned income; or
(b) where the claimant is a member of a couple, either member of the couple has any earned income.
This provision does not re set the clock during the quailifying period
Qualifying Period” for the purposes of the LMI Regs is defined by Reg 2 as
a period of—
(a) nine consecutive assessment periods in which a claimant has been entitled to universal credit;
(b) 39 consecutive weeks in which a claimant—
(i)has been entitled to a legacy benefit; or
(ii)is treated as having been entitled to such a benefit under —
(aa)paragraph 14 of Schedule 3 to the IS Regulations
(bb)paragraph 13 of Schedule 2 to the JSA Regulations(; or
(cc)paragraph 15 of Schedule 6 to the ESA Regulations
The only relevant criterion for the qualifying period is simply that of entitlement to UC or a legacy benefit
It is useful to compare Reg 2 with paragraph 5(3) of Sch 5 UC Regs. Paragraph 5(3) provides.
(3) Where, before the end of a qualifying period, an owner-occupier for any reason ceases to qualify for the inclusion of an amount calculated under this Schedule—
(a)that qualifying period stops running; and
(b) a new qualifying period starts only when the owner-occupier again meets the requirements of sub-paragraph (2)(a) or (b).
The provision in Sch 5 UC Regs is completely absent from the LMI Regs.
[ Edited: 17 Jul 2023 at 12:32 pm by Stainsby ]My understanding is that the question is asking about service charges, not mortgage interest, so it is schedule 5 which is relevant.
It is Sch 5 that is relevant to the original question
It just seemed to me that the discussion had widened to the LMI Regs so I added my 2p worth because the DWP appear to think that the clock is still reset when someone asks for LMI payments
[ Edited: 17 Jul 2023 at 12:53 pm by Stainsby ]Just hopping on to this thread as also need some clarification on service charges.
It seems that the waiting period, and condition that references earnings has now been amended from April 23
https://www.legislation.gov.uk/uksi/2023/226/contents/made
What I cant find is anything to say that the same applies to service charges? can anyone please confirm? (seems a bit harsh to allow SMI with earnings and reduced waiting time but not service charges?)
What I cant find is anything to say that the same applies to service charges? can anyone please confirm? (seems a bit harsh to allow SMI with earnings and reduced waiting time but not service charges?)
can i please bump this? - SMI has now been updated, what about service charges?
thanks
There have been no relevant changes to the service charge provisions.