U/C & rent

Maximum disregards will be reduced by one and a half times the help given with rent or mortgage interset, so therefore if a client recieves £50 a week in rent payments then they will lose £75 out of their disregard. Is this correct because I cannot see the point in recieving rent payments if working up to your max disregard as you will be worse off or could someone please explain if I’m missing the point!

This has been changed.  Now there will simply be a higher disregard if there are no housing costs, so the 1.5 times reduction has gone.  The 65% taper will apply to the post disregarded amount.

Anyone with any level of earnings will not get help with mortgage interest.

Could you please let me know the source of the information about the change regarding the housing costs disregard. Would like to look it up. Thanks.

The draft regs.

It’s also referred to in the stakeholders briefing minutes.

Draft UC regs

http://www.dwp.gov.uk/docs/uc-draft-regs-2012.pdf

Reg 19(2)

The amount to be disregarded is—
(a) if the award contains no amount for the housing costs element, the maximum amount specified in the table below; and

(b) if the award does contain an amount for the housing costs element, the minimum amount specified in the table

http://www.dwp.gov.uk/docs/uc-draft-regs-2012-memorandum.pdf

para. 137 of the EM to the UC Regs. makes direct reference to the change of policy.

Thank you to all who replied.