Guidance

A7/2020: The Social Security (Coronavirus) (Further Measures) Regulations 2020

Updated 10 February 2021

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This publication is available at https://www.gov.uk/government/publications/housing-benefit-adjudication-circulars-2020/a72020-the-social-security-coronavirusfurther-measures-regulations-2020

Who should read

Housing Benefit staff

Action

For information

Guidance manual

The information in this circular does not affect the content of the Housing Benefit (HB) guidance manual. Please annotate this circular number against chapter BW2 paragraphs W2.132 – W2.137 and chapter BP2 paragraphs P2.132 – P2.137

Queries

For queries about the:

Background

1. The Social Security (Coronavirus) (Further Measures) Regulations 2020 (SI 2020/371) were laid and made on the 27 March 2020 and came into force on 30 March 2020. These regulations make amendments to the Housing Benefit Regulations 2006 (SI 2006/213) and the Housing Benefit (persons who have attained the qualifying age for state pension credit) Regulations 2006 (SI 2006/214).

2. Regulation 5 of SI 2020/371 amends paragraph 17 of Schedule 4 and paragraph 56 of Schedule 5 of S.I. 2006/213 and paragraph 9 of Schedule 4 and paragraph 21 of Schedule 5 of S.I. 2006/214 to increase the disregard from income that applies to the calculation of Housing Benefit (HB) where a person is entitled to Working Tax Credit (WTC), or works for a specified minimum number of hours per week (the additional earnings disregard).

Additional earnings disregard and WTC

3. The current rate of the additional earnings disregard of £17.10 is increased to £37.10. The increase takes into account the temporary increase in the basic element of WTC and takes effect on 6th April 2020. The increase will cease to apply at the end of 4th April 2021.

4. HM Revenue and Customs (HMRC) has confirmed that increases to the basic element of WTC will be applied to claims in batches over a 35-day period from 9 April 2020 which will result in the increase from 6 April 2020 being paid as arrears.

5. Arrears payments of Tax Credits including WTC are treated as capital and can be disregarded for 52 weeks under paragraph 9 of regulation 46 and paragraph 9 of Schedule 6 of SI 2006/213 and under paragraph 3 of regulation 44 and paragraphs 18 and 21 of SI 2006/214.

6. This means that in cases where HB claims do not see the increased rate of the additional earnings disregard and increased rate to the basic element of WTC applied to individual claims within the same benefit week, overpayments are not created.

7. Claimants who have been furloughed or whose hours have been reduced temporarily will continue to be entitled to WTC as they will be treated as still working their normal hours for 8 weeks when entitlement will be reviewed. This means they will also continue to be entitled to the additional earnings disregard for the same period.

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