DHP and capital for UC

Dear All

Our client has received a large DHP to cover some arrears, paid to cl to pay to LL (private rented)

I am fairly sure it is disregarded for UC, but in schedule 10 can only find reference to local welfare support, and not sure if that covers a DHP - it also does not appear in Reg 66

Sure it is obvious but cannot find the answer that shows a DHP is disregarded by UC

Thanks in advance.

Do you need to worry about that? If the capital is used to repay a debt, a claimant isn’t caught by notional capital rules…..the client just needs to get on and repay the debt.

Thanks for that, makes sense.

Thanks again.

I believe, subject to correction, that the arrears would be covered by para 18 of Sch 10 to the UC Regs, as arrears of a “social security benefit” received within the past 12 months. Para 18(2) defines that as “a benefit under any enactment relating to social security”. As DHP is paid under s 69 of the Child Support, Pensions and Social Security Act 2000, that seems to qualify it as a social security benefit. The CPAG Handbook says that it is disregarded as capital for all means-tested benefits, but does not cite any authority on that for UC (Chap 29, fn 29).

John Mesher - 28 May 2024 03:51 PM

The CPAG Handbook says that it is disregarded as capital for all means-tested benefits, but does not cite any authority on that for UC (Chap 29, fn 29).

Yes the footnote is correct in so far as it goes - but it only goes so far as how the DHP is treated for the purposes of income. The footnote refers to reg. 66 UC Regs. which deals with unearned income. As that reg. provides an exhaustive list and a DHP doesn’t feature, it’s disregarded as income.

But as you’ve now dealt with the capital aspect with para. 18 to Sch. 10, it would appear that claimant has 12 months to pay off the rent arrears for which the arrears of DHP were awarded. :)

Thanks both, handy to have references for both income and capital.

Cheers.