Appendix 5
Draft S.I.: memorandum from the
Department for Work and Pensions
Draft Universal Credit Regulations 2013
1. In its letter to the Department of 18th
January 2013, the Committee requested a memorandum on the following
points:
1. Explain the legislative purpose
of regulation 7.
2. Explain -
a. whether the provision in regulation
13(1) for determining whether a person is undertaking a course
of education or training is intended to apply when determining
for the purposes of regulations 12 and 14 whether a person is
undertaking a course of study or training; and
b. if so, how that intention is given
effect.
3. Explain how paragraph (4) of regulation
111 is intended to apply in a case to which paragraph (3) applies.
4. Explain, in relation to regulation
117, what is intended by -
(a) the reference in paragraph (a)(i)
to "the date of issue of the application";
(b) the reference in paragraph (a)(ii)
to "the ... claimant's ... next full payment of universal
credit"; and
(c) the reference in paragraph (b)
to regulation 111;
and how, in each case, effect is given
to that intention.
2. The Department's response to each of the Committee's
points is outlined below.
POINT (1)
3. Regulation 7 is one of a series of overview provisions
indicating the content of a part or chapter. It does not have
a direct legal effect. The reasons for these provisions are twofold:
first, as an aid to navigation of the regulations and, secondly,
to make clear how the regulations relate to the primary legislation.
In the case of universal credit the second reason is particularly
important as the regulations supplement the basic framework for
that benefit in Part 1 of the Welfare Reform Act 2012 and can
only be properly understood when read with that Act. The Regulations
largely follow the structure of the Act and the overview provisions
are intended to place each part or chapter in its proper context
in relation to the Act.
4. Social security regulations can be extremely
complex and a prime objective in the drafting of the Universal
Credit Regulations was to have a clear structure and to assist
the reader as much as possible. We were mindful of the risks of
having inoperative material in regulations (for example where
this might create ambiguity). We looked at examples of where
these had been used in other legislation, (notably the rewritten
taxes Acts) and sought feedback during the drafting of the regulations.
We concluded that these provisions, used sparingly, were helpful
for the reader in ways that could not be achieved by use of footnotes
and extraneous explanatory material.
POINT (2)
5. The provision in regulation 13(1) is intended
to apply for the purpose of regulation 12, which deals with the
condition of entitlement to universal credit that a person should
not be receiving education. Regulation 13 determines the period
over which a person is taken to be undertaking any course referred
to in regulation 12. It would also, in theory, apply to any course
mentioned in regulation 14, but as that regulation is only concerned
with exceptions to the requirement not to be receiving education,
the period of a course will not usually be in issue.
6. In order to give effect to the intention in relation
to regulation 12, one has to read the reference in paragraph (2)(b)
to "any other full-time course of study… at an educational
establishment" as being a course of education. That means
"other" must be read as "other than advanced"
and "education" must be read as including "study".
We think that is the most likely interpretation, but accept that
the absence of any reference to "study" in regulation
13(1) creates unnecessary doubt. We will therefore make an amendment
at the next suitable opportunity to achieve a better fit between
regulation 13 and regulations 12 and 14.
POINT (3)
7. Paragraph (4) of regulation 111 provides for
the rounding down to 10 pence of the daily reduction rate calculated
in accordance with the earlier paragraphs in that regulation.
Clearly, where paragraph (3) applies, the rounding provision
in paragraph (4) has no effect because the reduction rate is nil.
8. The reference to paragraphs (1) to (3) is a general
reference to the provisions dealing with the calculation of the
daily reduction rate and the rounding rule would be not be applied
where there is no amount to be rounded down. That could be where
the figure is nil (as in paragraph (3)) or where the amount calculated
under paragraph (1) or (2) is already a multiple of 10 pence.
We consider that regulation 111 applies the rounding rule in
paragraph (4) in appropriate cases, but will amend the provision
at the next suitable opportunity if that is the Committee's recommendation.
POINT (4)
9. The reference in regulation 117(a)(i) to "the date of issue of the application" is intended to mean the date on which an application form is sent to the claimant (which will be the date on which the claimant makes contact with the Department about being in hardship). But, on further reflection, we have concluded that the only date needed for the purposes of regulation 117(a)(i) is the date on which all the conditions in regulation 116(1) are met. The date of the first contact will, in practice, always occur on or before that date. We will therefore amend the regulation to remove the superfluous words (i.e. "the date of issue of the application under regulation 116(1)(c), or, if later,") at the next suitable opportunity.
10. The reference in regulation 117(a)(ii) to the due date of "the next full payment" is intended to mean the next regular monthly payment of universal credit (as opposed to an advance payment or a more frequent payment released in instalments over the month). The other meaning it might have had (i.e. a payment that is not to be reduced by a sanction applied under section 26 or 27 of the Welfare Reform Act 2012) is precluded by the words in brackets. However, we would accept the need to specify more clearly the date and type of payment referred to and will amend the regulations at the next suitable opportunity.
11. The reference in regulation 117(b) to regulation 111 (which provides for the daily rate of reduction) is an error and is intended to be a reference to regulation 110, which is the substantive provision for calculating the reduction. Although in practice this is unlikely to cause any misunderstanding, the error will be corrected at the next suitable opportunity.
12. We thank the Committee for drawing points 2 to 4 to our attention and apologise for including inaccurate drafting in the draft laid.
Department for Work and Pensions
22 January 2013
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