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13 April, 2022 Open access

Disregarding local welfare provision in the calculation of capital for universal credit purposes

New statutory instrument

New regulations have been issued in relation to the effect of local welfare provision in the calculation of capital for universal credit purposes.

In force from 4 May 2022, the Universal Credit (Local Welfare Provision Disregard) (Amendment) Regulations 2022 (SI.No.448/2022) amend the Universal Credit Regulations 2013 (SI.No.376/2013) to include a capital disregard for payments received by a universal credit claimant by way of local welfare provision.

The explanatory memorandum to the regulations advises that the disregard has been in place in legacy benefits since 2013 but not in respect of universal credit and that this omission has become particularly apparent in light of the ‘thank you’ payments under the Homes for Ukraine scheme and the extension of the Household Support Fund.

However, it adds that -

'Departmental data indicates that only a very small proportion of universal credit claimants have capital of over £6,000, and it is assumed that the vast majority of universal credit recipients of local welfare provision payments would spend the money before it could affect their universal credit entitlement.

Nonetheless, because there is no guarantee that in all cases universal credit entitlement would be unaffected by local welfare provision payments, the department has decided to make these regulations to put the position beyond doubt.’

SI.No.448/2022 is available from legislation.gov.uk