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Department for Work and Pensions Department for

VIEWS: 706 PAGES: 40

									     Department for Work and Pensions
     DECISION MAKING AND APPEALS (PART OF LEGAL GROUP)


                       Decision Makers Guide
                         Volume 13
                   Amendment 22 – June 2010

1.    This letter provides details on Amendment 22; the changes have already been
      incorporated in to the Intranet and Internet versions of the DMG.

2.    PDF amendment packages are also available. These can be printed with the
      amended pages being reproduced in full. Each page will contain the
      amendment number in the footer and significant changes are sidelined for ease
      of identification.

      PDF amendment packages can be found on the Intranet at:

      http://intralink/1/lg/acileeds/guidance/decision%20makers%20guide/dmg%20a
      mendment%20packages/index.asp#

      or on the Internet at the ‘Amdt Packages’ tab on the following link:

      http://www.dwp.gov.uk/publications/specialist-guides/decision-makers-guide/

      Note: When printing PDF packages set the print properties to Duplex/Long
      Edge in order to produce double sided prints.


3.    Amendment 22 affects abbreviations, Statutory Instruments, Statutes and
      Chapters 77 , 78 and 79. The changes

      •   to chapter 77 incorporate DMG memo 19/10 concerning the rates of benefit
          from April 2010
      •   make amendments to Chapter 78 which expands the guidance on housing
          cost loans for repairs, mortgage rescue scheme loans and definitions. It
          also incorporates DMG memo 1/10 and 19/10 concerning the abolition of
          UCPs and the rates of benefit from April 2010 and makes other minor
          amendments.
      •   Incorporates SI 2010 / 671 The Housing & Regeneration Act
          2008(Consequential Provisions) which amend definitions in C & P Regs in
          Chapter 79


4.    The last two amendment packages amending Volume 13 were


      Amendment 21 [February 2010]

      Amendment 20 [October 2009]

5.    For reference purposes Decision Makers may find it useful to retain
      deleted pages for a short period after the introduction of this package.
 6.        If using a PDF amendment package remove the sheets as stated in the left
           hand column of the Remove and Insert table below and insert the new sheets
           as stated in the right hand column (note the record of amendments at the back
           of the Volume).

 7.        Copies of amendment packages can be purchased from Corporate Document
           Services (0113 399 4040). For DWP customers this will be chargeable to your
           own cost centre.


Remove                                             Insert


Abbreviations                                      Abbreviations
AA – RMPS (3 pages)                                AA – RMPS (3 pages)


Statutes                                           Statutes
NI Act 65 - WC Act 25 (1 page)                     NI Act 65 - WC Act 25 (1 page)


Statutory Instruments                             Statutory Instruments
IS (Gen) Amdt No. 6 Regs - SMP (Gen) Regs (1       IS (Gen) Amdt No. 6 Regs - SMP (Gen) Regs (1
page)                                              page)
SS (JPIfP) Regs – SS (U, S & IVB) Regs (1          SS (JPIfP) Regs – SS (U, S & IVB) Regs (1
page)                                              page)

Chapter 77                                         Chapter 77
Appndx 2.10 – Appndx 2.10 (1 page)                 Appndx 2.10 – Appndx 2.11 (1 page)


Chapter 78                                         Chapter 78
Contents 78519 – Contents 78725 (1 page)           Contents 78519 – Contents 78725 (1 page)
78277 – 78283 (1 page)                             78277 – 78283 (1 page)
78415 – 78427 (2 pages)                            78415 – 78427 (2 pages)
78657 – 78667 (1 page)                             78657 – 78667 (1 page)
78677 – 78679 (1 page)                             78677 – 78679 (1 page)
78900 – 78908 (1 page)                             78900 – 78908 (1 page)
78940 – 78947 (1 page)                             78940 – 78947 (1 page)
Appndx 1 (1 page)                                  Appndx 1 (1 page)
Appndx 4.2 – Appndx 4.3 (1 page)                   Appndx 4.2 – Appndx 4.3 (1 page)


Chapter 79                                         Chapter 79
79300 – 79307 (1 page)                             79300 – 79307 (1 page)
79500 – 79507 (1 page)                             79500 – 79507 (1 page)
                                                                           Abbreviations

        Abbreviations
         AA            Attendance Allowance paid under s 64 of the SS (CB) Act 92
         "AA"          Attendance Allowance as defined in IS (Gen) Regs, reg 2(1) or
                        JSA, reg 1(3)
         ADC           Actual Date of Confinement
         ADF           Adviser Discretion Fund
         ADI           Adult Dependency Increase
         AIP           Assessed Income Period
         AMG           Appropriate Minimum Guarantee
         AP            Additional Pension
         APP           Adoption Pay Period
         Art           Article
         ASE           Actively seeking employment
         AT            Appeal Tribunal
         AWT           All Work Test


         BA            Bereavement Allowance
         BB            Bereavement Benefits
         BL            Board and Lodging
         BP            Basic Pension/Bereavement Premium
         BPT           Bereavement Payment
         BTEC          Business and Technology Education Council
         BWC           Benefit Week Commencing
         BWE           Benefit Week Ending


         CA            Carer’s Allowance
         CAA           Constant Attendance Allowance
         Cat           Category
         CB            Contributory Benefit
         CC            Community Charge
         CDI           Child Dependency Increase
         CESC          Council of European Social Charter
         CHB           Child Benefit
         CHB(LP)       Child Benefit for Lone Parents
         CMB           Child Maintenance Bonus
         CMP           Child Maintenance Premium
         CP            Carer Premium
         CSM           Child Support Maintenance
         CT            Council Tax
         CTA           Common Travel Area
         CTB           Council Tax Benefit



Abbreviations Amendment 7 June 2010
                                                                          Abbreviations

         CTC           Child Tax Credit
         CTM           Contribution to Maintenance
         CWP           Cold Weather Payment


         DCP           Disabled Child Premium
         DCT           Direct Credit Transfer
         DH            Department of Health
         Dis G         Disablement Gratuity
         Dis P         Disablement Pension
         DLA           Disability Living Allowance
         DM            Decision Maker
         DMA           Decision Making and Appeals
         DMG           Decision Makers Guide
         DO            District Office
         DP            Disability premium
         DPTC          Disabled Persons Tax Credit
         DWA           Disability Working Allowance
         DWP           Department for Work and Pensions


         EC            European Community
         ECJ           European Court of Justice
         ECSMA         European Convention on Social & Medical Assistance
         ECHR          European Convention for the Protection of Human Rights and
                       Fundamental Freedoms
         EctHR         European Court of Human Rights
         EDP           Enhanced Disability Premium
         EFC           Earnings factor credits
         EEA           European Economic Area
         EFTA          European Free Trade Association
         ELDS          Eligible loan deduction scheme
         Emp O         Employment Officer
         EO            Employment Option of New Deal for young people
         EO(E)         Employed Employment Option
         EO(S/E)       Self-Employed Employment Option of the New Deal for young
                        people
         EPP           Enhanced Pensioner Premium
         ERC           Employment Rehabilitation Centre
         ERA           Employment Retention and Advancement
         ESA           Employment and Support Allowance
         ESA(Cont)     Employment and Support Allowance (contributory allowance)

         ESA(IR)       Employment and Support Allowance (income-related allowance)

         ESA(Y)        Employment and Support Allowance for those with limited
                       capability for work in youth
Abbreviations Amendment 7 June 2010
                                                                         Abbreviations

         ESDA          Exceptionally Severe Disablement Allowance
         ET            Employment Training
         ETFO          Environment Task Force Option of New Deal for young people
         EU            European Union
         EWC           Expected Week of Confinement
         EZ            Employment Zone


         FamC          Family Credit
         FAS           Financial Assistance Scheme
         FND           Flexible New Deal
         FP            Family Premium
         FP(LP)        Family Premium (Lone Parent Rate)
         FRIY          Flat Rate Introduction Year
         FRM           Flat Rate Maintenance
         F/T           Full-Time
         FTE           Full-Time Education
         FTET          Full-Time Education and Training Option
         FtT           First-tier Tribunal


         GA            Guardian's Allowance
         GB            Great Britain
         GC            Guarantee Credit
         GCE           General Certificate of Education
         GCSE          General Certificate of Secondary Education
         GMP           Guaranteed Minimum Pension
         GNVQ          General National Vocational Qualification
         GP            General Practitioner
         GRB           Graduated Retirement Benefit
         GRC           Gender Recognition Certificate
         GRP           Gender Recognition Panel


         HA            Health Authority
         HB            Housing Benefit
         HBS           Housing Benefit Supplement
         HCP           Health care professional
         Hep C         Hepatitis C
         HIV           Human Immunodeficiency Virus
         HM            Her Majesty
         HMF           Her Majesty's Forces
         HMRC          Her Majesty’s Revenue and Customs
         HO            Home Office
         HPP           Higher Pensioner Premium
         HRP           Home Responsibilities Protection

Abbreviations Amendment 7 June 2010
                                                                             Abbreviations

         IA            Industrial Accident
         IAP           Intensive Activity Period for those aged 25 and over and under 50
         IAP for 50+   Intensive Activity Period for those aged 50 or over
         IB            Incapacity Benefit
         IBLT          Long-term Incapacity Benefit
         IBST          Short-term Incapacity Benefit
         IBST(H)       Higher rate of short-term Incapacity Benefit
         IBST(L)       Lower rate of short-term Incapacity Benefit
         IB(Y)         Incapacity Benefit for those incapacitated in youth
         IC            Intermittent Custody
         IDB           Industrial Death Benefit
         IFM           Immediate Family Member
         IfW           Incapacity for Work
         II            Industrial Injury(ies)
         IIDB          Industrial Injuries Disablement Benefit
         Incs          Increments (of Retirement Pension)
         IND           Immigration and Nationality Department
         IPC           International Pension Centre
         IPPIW         Immediate Past Period of Incapacity for Work
         IS            Income Support
         IT            Industrial Tribunal (now Employment Tribunal)
         IVA           Invalidity Allowance
         IVB           Invalidity Benefit
         IVP           Invalidity Pension
         IVS           Invalid Vehicle Scheme


         JSA           Jobseeker's Allowance
         JSA(Cont)     Contribution based JSA
         JSAg          Jobseeker's Agreement
         JSA(IB)       Income based JSA
         JSD           Jobseeker's Direction
         JSP           Jobseeking Period


         LA            Local Authority
         LCW           Limited capability for work
         LCWA          Limited capability for work assessment
         LCWRA         Limited capability for work related activity
         LEA           Local Education Authority
         LEC           Local Enterprise Council




Abbreviations Amendment 7 June 2010
                                                                       Abbreviations

         LEL           Lower Earnings Limit
         LETS          Local Exchange Trading System
         LPP           Lone Parent Premium
         LPRO          Lone Parent run-on
         LQPM          Legally Qualified Panel Member
         LRP           Liable Relative Payment
         LSC           Learning and Skills Council
         LT            Linking Term
         LTACP         Living Together as Civil Partners
         LTAHAW        Living Together as Husband And Wife


         MA            Maternity Allowance
         MAP           Maternity Allowance Period
         MB            Maternity Benefit
         MG            Maternity Grant
         MID           Mortgage Interest Direct
         MIRO          Mortgage Interest run-on
         MP            Member of Parliament
         MPP           Maternity Pay Period
         MSC           Maximum Savings Credit
         MSP           Member of the Scottish Parliament


         NASS          National Asylum Support Service
         NCET          National Council for Education and Training
         NCIP          Non-Contributory Invalidity Pension
         ND            New Deal
         NDLP          New Deal for Lone Parents
         NDP           New Deal for Partners
         NDYP          New Deal for Young People
         ND18-24       New Deal for 18-24 year olds
         ND25+         New Deal for claimants aged 25 years and over
         NHS           National Health Service
         NI            National Insurance
         NINO          National Insurance Number
         NMW           National Minimum Wage
         NRP           Non-Resident Parent
         NVQ           National Vocational Qualification


         OOT           Own Occupation Test
         OPB           One Parent Benefit


         PA            Personal Adviser
         PAYE          Pay As You Earn

Abbreviations Amendment 7 June 2010
                                                                          Abbreviations
                       Pneumoconiosis, Byssinosis and Miscellaneous Diseases Benefits
         PB and MDB
                       scheme
         PCA           Personal Capability Assessment
         PD            Prescribed Disease
         PETA          Personal Expenses Transitional Addition
         PFA           Person(s) From Abroad
         PIE           Period of Interruption of Employment
         PILON         Pay In Lieu Of Notice
         PILOR         Pay In Lieu Of Remuneration
         PIW           Period of Incapacity for Work
         PLCW          Period of limited capability for work
         PLCWA         Period of limited capability for work assessment
         PO            Post Office
         POA           Power of Attorney
         PP            Pensioner Premium
         PR            Preserved Right
         PSIC          Person Subject to Immigration Control
         P/T           Part-Time
         PW            Pay-Week
         PWC           Person With Care
         PWHL          Permitted Work Higher Limit
         PWHLS         Permitted Work Higher Limit subsequent period
         PWK           Permitted Work
         PWLL          Permitted Work Lower Limit
         PWP           Permitted Work Period


         QB            Qualifying Benefit
         QBP           Qualifying Benefit or Pension
         QD            Qualifying Days
         QEF           Qualifying earnings factor
         QI            Qualifying Income
         QP            Qualifying Period
         QRW           Qualifying remunerative work
         QW            Qualifying Week
         QWfI          Quarterly Work-focused interview


         RA            Retirement Allowance
         RBD           Reduced Benefit Direction
         RCH           Residential Care Home
         REA           Reduced Earnings Allowance
         Reg(s)        Regulation(s)
         Res A         Residential Allowance
         RISWR         Redundant Iron and Steel Employees re-adaptation scheme
         RMPS          Redundant Mineworkers Payment scheme
Abbreviations Amendment 7 June 2010
Statutes


           National Insurance Act 1965                         NI Act 65


           National Insurance (Industrial Injuries) Act 1965   NI (II) Act 65


           National Insurance contributions Act 2008           NIC Act 08


           National Minimum Wage Act 1998                      NMW Act 98


           Pensions Act 2007                                   Pensions Act 07


           Pensions Act 2008                                   Pensions Act 08


           Pension Schemes Act 1993                            PS Act 93


           Registered Homes (Amendment) Act 1991               RH (Amdt) Act 91


           Registered Homes Act 1984                           RH Act 84


           Rehabilitation of Offenders Act 1974                ROO Act 74


           Social Security Act 1975                            SS Act 75


           Social Security Act 1985                            SS Act 85


           Social Security Act 1986                            SS Act 86


           Social Security Act 1988                            SS Act 88


           Social Security Act 1989                            SS Act 89


           Social Security Act 1990                            SS Act 90


           Social Security Act 1998                            SS Act 98


           Social Security Administration Act 1992             SS A Act 92


           Social Security Contributions and Benefits          SS CB Act 92
           Act 1992


           Social Security Contributions (Transfer of          SSC (ToF) Act 99
           Functions, etc) Act 1999


           Social Security Fraud Act 2001                      SS Fraud Act 01



Statutes Amendment 3 June 2010
Statutes


           Social Security (Incapacity for Work) Act 1994   SS (IfW) Act 94


           Social Work (Scotland) Act 1968                  SW (Scot) Act 68


           State Pension Credit Act 2002                    SPC Act 02


           Tax Credit Act 2002                              TC Act 02


           Tribunals, Courts and Enforcement Act 2007       TCE Act 07


           Teaching and Higher Education Act 1998           T & HE Act 98


           Trade Union and Labour Relations                 TULR (C) Act 92
           (Consolidation) Act 1992


           Trade Union Reform and Employment Rights         TURER Act 93
           Act 1993


           Welfare Reform Act 2007                          WR Act 07


           Welfare Reform Act 2009                          WR Act 09


           Welfare Reform and Pensions Act 1999             WRP Act 99


           Workmen’s Compensation Act 1925                  WC Act 25




Statutes Amendment 3 June 2010
Statutory Instruments


          The Income Support (General) Amendment No. 6           IS (Gen) Amdt No. 6
          Regulations 1991 No. 2334                              Regs



          The Income Support (General) Amendment and             IS (Gen) Amdts &
          Transitional Regulations 1995 No. 2287                 Transitional Regs 95



          The Income Support (General) Amendment No. 3           IS (Gen) Amdt No. 3
          Regulations 1993 No. 1679                              Regs 93



          The Income Support (General) Regulations 1987 No.      IS (Gen) Regs
          1967



          The Income Support (Transitional) Regulations 1987     IS (Trans) Regs
          No. 1969



          The Jobseeker’s Allowance (Joint-Claims) Regulations   JSA (JC) Regs
          2000 No. 1978



          The Jobseeker’s Allowance Regulations 1996 No. 207     JSA Regs



          The Jobseeker’s Allowance (Transitional Provisions)    JSA (TP) Regs
          Regulations 1995 No. 3276



          The Jobseeker’s Allowance (Transitional Provisions)    JSA (TP) (96) Regs
          Regulations 1996 No. 2567



          The Merchant Shipping (Repatriation) Regulations       Merchant Shipping
          1979 No. 97                                            (Repatriation) Regs



          The National Assistance (Assessment of Resources)      NA (AR) Regs
          Regulations 1992 No. 2977



          The Paternity and Adoption Leave Regulations 2002      PA Regs
          No. 2788




Statutory Instruments Amendment 5 June 2010
Statutory Instruments


       The Pneumoconiosis, Byssinosis and Miscellaneous         PB & MDB Scheme
       Diseases Benefit Scheme 1983 No. 136



       The Qualifications for Appointment of Members to the     Qualifications for
       First-tier Tribunal and Upper Tribunal Order 2008 No.    Appointment of Members
       2692                                                     to the FtT & UT Order



       The Redundant Mineworkers and Concessionary Coal         Redundant Mineworkers
       (Payments Schemes) Order 1986 No. 625                    and Concessionary Coal
                                                                (Payments Schemes)
                                                                Order



       The Students’ Allowances (Scotland) Regulations 1987     SA (Scot) Regs
       No. 864,1991 No. 1522



       The Shipbuilding (Redundancy Payments Scheme) (Great     Shipbuilding
       Britain) Order 1981 No. 916 (Amendment) Order 1982 No.   (Redundancy Payments
       1090                                                     Scheme) (GB) Order



       The Social Fund Cold Weather Payments (General)          SFCWP (Gen) Regs
       Regulations 1988 No. 1724



       The Social Fund Cold Weather Payments (General)          SFCWP (Gen) Amdt
       Amendment Regulations                                    Regs



       The Social Fund Maternity and Funeral Expenses           SFMFE (Gen) Regs
       (General) Regulations 2005 No. 3061



       The Social Fund Winter Fuel Payment Regulations 2000     SFWFP Regs
       No. 729



       The Education (Student loans) (Scotland) Regulations     SL (Scot) Regs



       The Statutory Maternity Pay (General) Regulations 1986   SMP (Gen) Regs
       No. 1960




Statutory Instruments Amendment 5 June 2010
Statutory Instruments


       The Social Security (Jobcentre Plus Interviews for          SS (JPIfP) Regs
       Partners) Regulations 2003 No. 1886



       The Social Security (Jobcentre Plus Interviews)             SS (JPI) Regs 01
       Regulations 2001 No. 3210



       The Social Security (Jobcentre Plus Interviews)             SS (JPI) Regs 02
       Regulations 2002 No. 1703



       The Social Security Lone Parents and Miscellaneous          SS (LP & Misc Amdts)
       Amendments Regulations 2008 SI 2008 No. 3051                Regs



       The Social Security (Loss of Benefit) Regulations 2001      SS (Loss of Benefit)
       No. 4022                                                    Regs



       The Social Security (Mariners’ Benefits) Regulations 1975   SS (Mariners’ Ben) Regs
       No. 529



       The Social Security (Maternity Allowance) (Work Abroad)     SS (MA) (Work Abroad)
       Regulations 1987 No. 417                                    Regs



       The Social Security (Maternity Allowance) Regulations       SS (MA) Regs
       1987 No. 416



       The Social Security (Maternity Allowance) (Earnings)        SS (MA) (Earnings) Regs
       Regulations 2000 No. 688



       The Social Security (Maximum Additional Pension)            SS (MAP) Regs
       Regulations 2010 No. 426



       The Social Security (Medical Evidence) Regulations 1976     SS (Med Ev) Regs
       No. 615



       The Social Security (Miscellaneous Amendments)              SS (Misc Amdts) Regs
       Regulations 1997 No. 454




Statutory Instruments Amendment 5 June 2010
Statutory Instruments


       The Social Security (Miscellaneous Amendments) (No. 2)     SS (Misc Amdt) (No. 2)
       Regulations 2001 No. 652                                   Regs



       The Social Security (National Insurance Number             SS (NINO: Exemption)
       Information: Exemption) Regulations 1997 No. 2676          Regs



       The Social Security (Overlapping Benefits) Regulations     SS (OB) Regs
       1979 No. 597



       The Social Security (Payments on account, Overpayments     SS (POR) Regs
       and Recovery) Regulations 1988 No. 664



       The Social Security (Persons from Abroad) Miscellaneous    SS (PFA) Misc Amdt
       Amendments Regulations 1996 No. 30                         Regs 96



       The Social Security Benefit (Persons Residing Together)    SS (PRT) Regs
       Regulations 1977 No. 956



       The Social Security (Reciprocal Agreements) Order 1995     SS (RA) Order 95
       No. 767



       The Social Security (Reciprocal Agreements) Order 1996     SS RA Order
       No. 1928



       The Social Security (Retirement Pensions etc.)             SS (RP etc) (Trans
       (Transitional Provisions) Regulations 2005 No. 469         Provs) Regs



       The Social Security (Severe Disablement Allowance)         SS (SDA) Regs
       Regulations 1984 No. 1303


       The Social Security (Savings for Existing Beneficiaries)   SS (SEB) Regs
       Regulations 1984 No. 1696


       The Social Security (Unemployment, Sickness, and           SS (U, S, & IVB) Regs
       Invalidity Benefit) Regulations 1983 No. 1598




Statutory Instruments Amendment 5 June 2010
Amounts to be used in the calculation of entitlement                          Appendix 2.10


         3.     Amount B (see DMG 77187 1.)                                       40%


         Maximum savings credit from 6.04.09

36       The MSC is a fixed percentage of the difference between the SMG and the SCT
         (see DMG 77179). From 6.4.09, that percentage is 60% (see para 35.1 above).

         So from 6.04.09 the amount of the MSC is as follows

         1.     claimant with no partner £130.00 SMG - £96.00 SCT x 60% =       £20.40

         2.     claimant with a partner £198.45 SMG - £153.40 SCT x 60% =       £27.03

         3.     polygamous marriages £198.45 SMG - £153.40 SCT x 60% =          £27.03

         4.     prisoners                                                           Nil

         5.     members of religious orders fully maintained by their order
                (see DMG 78680)                                                     Nil

         6.     people in hospital - see DMG 78700.


         Guarantee credit from 12.04.10

         Standard minimum guarantee (see DMG 77151)

37       Amount of SMG from                                                    12.04.10

         1.     Claimant who has no partner                                    £132.60

         2.     Claimant and one partner (if appropriate)                      £202.40

         3.     Each additional spouse in a polygamous marriage case            £69.80

         4.     Prisoners                                                           Nil

         5.     Members of religious orders fully maintained by their order         Nil

         6.     People in hospital - see DMG 78700 et seq.


         Additional amounts (see DMG Chapter 78)

38       Prescribed additional amounts from                                    12.04.10

         1.     Severely disabled

                1.1     lower rate                                              £53.65

                1.2     higher rate                                            £107.30

         2.     Carer                                                           £30.05

         3.     Transitional amount for former claimants of IS/JSA(IB) - see DMG 78120

         4.     Housing costs - see DMG 78170 et seq.




Vol 13 Amendment 22 June 2010
Amounts to be used in the calculation of entitlement                          Appendix 2.11



         Savings credit

         Savings credit threshold (see DMG 77173)

39       Amount of SCT from                                                    12.04.10

         1.     Claimant who has no partner                                     £98.40

         2.     Claimant who has a partner                                     £157.25

         3.     Polygamous marriage cases                                      £157.25


         Prescribed percentages

40       Prescribed percentages from                                           12.04.10

         For the purposes of determining

         1.     The MSC (see DMG 77179)                                           60%

         2.     Amount A (see DMG 77185 2.)                                       60%

         3.     Amount B (see DMG 77187 1.)                                       40%


         Maximum savings credit from 12.04.10

41       The MSC is a fixed percentage of the difference between the SMG and the SCT
         (see DMG 77179). From 12.4.10, that percentage is 60% (see para 40.1 above).

         1.     Claimant with no partner £132.60 SMG - £98.40 SCT x 60% =       £20.52

         2.     Claimant with a partner £202.40 SMG - £157.25 SCT x 60% =       £27.09

         3.     Polygamous marriages £202.40 SMG - £157.25 SCT x 60% =          £27.09

         4.     Prisoners                                                           Nil

         5.     Members of religious orders fully maintained by their order
                (see DMG 78680)                                                     Nil

         6.     People in hospital - see DMG 78700.




Vol 13 Amendment 22 June 2010
Contents


           Non-dependant of more than one joint occupier ..........................................78519

           Non-dependant deduction not appropriate ...................................................78521

           Calculation of a non-dependant’s gross weekly income ..............................78524

           Insufficient information to determine housing costs .............................78530


           Special groups

           Polygamous marriages

           Introduction...................................................................................................78600

           General

               Claims .....................................................................................................78601

               Entitlement ..............................................................................................78602

               Income and capital ..................................................................................78603

           Guarantee credit...........................................................................................78608

               Standard minimum guarantee.................................................................78609

           Additional amount for the severely disabled.................................................78610

               Lower rate ...............................................................................................78611

               Higher rate...............................................................................................78614

           Additional amount for carers ........................................................................78620

           Additional amount for former claimants of IS/JSA(IB)..................................78621

           Additional amount for housing costs ............................................................78622

           Savings credit ...............................................................................................78623

           Prisoners .....................................................................................................78650

           Meaning of prisoner......................................................................................78651

               Meaning of detained in custody...............................................................78653

               Pre-release schemes ..............................................................................78657

               Release on licence ..................................................................................78658

               Curfews ...................................................................................................78659

           Period of detention in custody ......................................................................78661

           Prisoner admitted to hospital........................................................................78663

           Claimant is a Technical Lifer - England and Wales only .............................78664

           Guarantee credit for prisoners......................................................................78666



Vol 13 Amendment 22 June 2010
Contents


           Guarantee credit for remand prisoners

               Meaning of remand prisoner ...................................................................78667

               Remand prisoners detained in custody...................................................78668

               People in bail hostels ..............................................................................78670

           Savings credit for prisoners..........................................................................78672

           Membership of the household ......................................................................78673

               Partner of a prisoner claiming SPC.........................................................78674

               Person becomes a prisoner during an SPC claim ..................................78675

               Life sentences .........................................................................................78677

           Members of religious orders

           Introduction...................................................................................................78680

           Meaning of religious order ............................................................................78681

           Amount payable for members of religious orders

               Member fully maintained .........................................................................78683

               Member not fully maintained ...................................................................78690


           People in hospital

           General

           Introduction...................................................................................................78700

           Definitions.....................................................................................................78702

               Patient .....................................................................................................78703

               Prisoner ...................................................................................................78704

               Transferee...............................................................................................78705

           Housing costs ...............................................................................................78706

           Membership of the household ......................................................................78707

           Patients receiving other social security benefits...........................................78709

           People admitted to hospital from care homes ..............................................78710

           Free in-patient treatment

           Deciding free in-patient treatment ................................................................78720

           Maintained free of charge.............................................................................78722

               Burden of proof........................................................................................78724

           Medical or other treatment............................................................................78725

Vol 13 Amendment 22 June 2010
Housing costs not met                                                          78277      78280


         Example 1

         Mark has been in receipt of IS since 1993 and transfers to SPC on 6.10.03. On
         18.11.03 he takes out a mortgage (exchanges contracts) to buy his own home. Mark
         does not come within any of the exceptions in DMG 78280 et seq. An additional
         amount for housing costs is not allowable in the SPC award.

         Example 2

         Aniza is a retired teacher who is in receipt of IS until 11.8.03 when she returns to
         work. On 27.8.03, Aniza takes out a mortgage to buy her own home, having
         previously lived with her brother. She loses her job on 27.9.03 and claims IS.

         The break between Aniza’s two IS claims is less than 26 weeks and so her
         mortgage was taken out in a relevant period. An award of IS is made but nothing is
         allowed for housing costs.

         Aniza transfers to SPC on 6.10.03. An additional amount for housing costs is not
         allowed in the SPC award.

         Example 3

         Maria lives with her partner Alberto who gets JSA(IB) for them. Housing costs are
         included for a mortgage in joint names taken out on 20.3.89, which Maria and
         Alberto jointly used to purchase the property. Maria leaves the household on
         10.10.03 and goes to live with her son. Alberto moves out of the property on
         24.11.03 allowing Maria to return to live there on 5.12.03. Maria reaches age 60 on
         10.12.03 and claims SPC.

         Maria’s housing costs have not been incurred in a relevant period. The housing
         costs were incurred on 20.3.89, the date the loan was taken out. An additional
         amount for housing costs is allowed in the SPC award.

         78277 - 78279

         Loans that may be allowed

78280    An additional amount for housing costs cannot normally be allowed for loans taken
         out in a relevant period (see DMG 78270 et seq). The exceptions are where

         1.    the loan is a new loan used to repay an earlier allowable loan or buy a new
               home (see DMG 78283) or

         2.    the claimant, or partner, was previously renting accommodation before the
               purchase of the home (see DMG 78287) or

         3.    the loan is used to buy accommodation more suited to the needs of a
               disabled person (see DMG 78289) or

         4.    the change of dwelling is to provide separate sleeping accommodation for
               persons of different sexes aged ten or over but under 20 (see DMG 78295) or

         5.    other housing costs were in payment before the purchase (see DMG 78296).

Vol 13 Amendment 22 June 2010
Housing costs not met                                                                   78281           78283


78281    When considering the amount of housing costs to allow under the exceptions in
         DMG 78280 2. to 5., DMs should note that
                                                                                          1
         1.    each exception may be subject to its own additional limitations and

         2.    if more than one of the exceptions in DMG 78280 2. to 5. are relevant, the DM
                                                                                               2
               should apply the exception that is most favourable to the claimant .
                                                        1 SPC Regs, Sch II, para 5(8)(a); 2 Sch II, para 5(8)(b)

78282    Where appropriate, the maximum amount should be applied and the question of
         excessive housing costs should be considered (see DMG 78345 and 78370).


         New loan to repay earlier allowable loan or buy a new home

78283    If a claimant, or their partner, takes out a secured or unsecured allowable loan in a
         relevant period and uses it to

         1.    buy the home, and repay an earlier loan used to acquire an interest in the
                                                              1
               home, allowable during the relevant period or

         2.    repay another earlier allowable loan used

               2.1      to acquire an interest in or

               2.2      for repairs and improvements to

               the previous property, allowable during the relevant period, which is paid off
               (in whole or in part) with the money received from the sale of that other
                         2
               property

         part of the new loan equal to the amount of the earlier loan is allowable.

         Note: See DMG 78417 where the loan for repairs and improvements is not
         redeemed with the sale of the other property.
                                                                   1 Sch II, para 5(7)(a); 2 Sch II, para 5(7)(b)

         Example 1

         Harry takes out a loan of £95,000 in 1995 to buy his own home. In October 2003
         only £50,000 remains on the mortgage. The mortgage is allowable as a housing
         cost. In November 2003 Harry moves house. He has a new mortgage of £57,000
         and he pays off his first loan in the process. The eligible part of the later loan is
         £50,000.

         Example 2

         Lasse lives with his sister who has a mortgage on their home in her sole name.
         They both get SPC and an additional amount for housing costs for mortgage interest
         is paid to Lasse’s sister. Following her death and settlement of the estate, the
         building society transfers the mortgage into Lasse’s name. He is then liable for the
         payment of interest on the new mortgage.



Vol 13 Amendment 22 June 2010
Loans for repairs and improvements                                                  78415          78417


         Loans for repairs and improvements
78415    Any loan, or any part of a secured or unsecured loan, taken out and used within six
         months of the date of receipt, or such further period as is reasonable in the
         circumstances, to pay

         1.    for repairs or improvements to the home or

         2.    service charges for repairs and improvements to the home or

         3.    off a loan to the amount which would have been allowable under 1. or 2.

         will be allowable, provided that the repairs and improvements are allowable (see
                             1
         DMG 78420 et seq) .

         Note: the loan will only become eligible after the work has been paid for or
         completed.
                                                                             1 SPC Regs, Sch II, para 12(1)

78416    Where only part of a loan has been used for a purpose as in DMG 78415, only that
                                                                         1
         portion of the loan that is applied for that purpose can qualify .
                                                                                        1 Sch II, para 12(3)

78417    For interest to be payable on loans as in DMG 78415, the

         1.    purpose for which the loan is

               1.1    taken out and

               1.2    used

               must be the same. A loan taken out for some other purpose, which is used
               instead for the improvement of the home, will not qualify. Make enquiries of
               the lender if the circumstances are unclear and
                                                                                    1
         2.    loan must be in respect of the dwelling occupied as the home . That is the
               dwelling currently occupied. Interest is no longer payable if the claimant
               changes address to another property.
                                                                                               1 R(IS) 5/96

         Example 1

         Harriet takes out a loan for repairs and improvements to her home, but does not use
         it for that purpose. The money is paid into a business account held by Harriet’s son
         and his partner. The business account is heavily overdrawn and three days later
         again becomes overdrawn. The business then goes into liquidation and there is no
         prospect of the money being repaid to Harriet. The DM determines that interest on
         the loan cannot be allowed. The loan was taken out for repairs and improvements
         but it cannot be used for that purpose within a reasonable period of time.




Vol 13 Amendment 22 June 2010
Loans for repairs and improvements                                              78418       78420


         Example 2

         Wilford wants to buy his home with the help of a mortgage from a finance company.
         The property needs a lot of attention and a mortgage is given on the understanding
         that Wilford will do all the necessary work. But he fails to do so and the property
         gets worse. It is in such a bad state of repair that the LA threatens to condemn it.
         Without asking Wilford the finance company carries out building work on the
         property to remedy the serious defects. The cost of the repairs is then added to the
         balance outstanding on Wilford’s mortgage account. The DM determines that the
         cost of the repairs is not allowable. Wilford did not take out a loan, did not receive
         any loan money and did not use such money for repairs and improvements.

         Example 3

         Vincenzo takes out a loan for repairs and improvements to his home. Interest on the
         loan is included as a housing cost in his SPC award. Vincenzo then sells that home
         and moves to a new one. The DM determines that interest on the loan can no longer
         be allowed as from the date that Vincenzo changes address. This is because
         Vincenzo no longer occupies the house to which the improvements were made.

         78418 - 78419

         Meaning of repairs and improvements

78420    Repairs and improvements are any of a list of measures done to maintain the
         fitness of the home for human habitation, or where the home is part of a building,
                                                  1
         the fitness of any part of that building . Those measures are

         1.    provision of a bath, shower, wash basin, sink or lavatory and necessary
               associated plumbing, including hot water not connected to a central heating
               system

         2.    repairs to existing heating systems

         3.    damp proof measures (see DMG 78426)

         4.    provision of ventilation and natural lighting

         5.    provision of drainage facilities
                                                                                            2
         6.    provision of facilities for preparing and cooking food, but not for storing it

         7.    provision of insulation of the dwelling occupied as the home

         8.    provision of electric lighting and sockets

         9.    provision of storage facilities for fuel or refuse

         10.   repairs of unsafe structural defects (see Appendix 3 to this Chapter)

         11.   the adaptation of the home for the special needs of a disabled person (see
               DMG 78429)


Vol 13 Amendment 22 June 2010
Loans for repairs and improvements                                                     78421         78422


         12.   provision of separate sleeping accommodation for two or more persons who

               12.1 live with the claimant and

               12.2 the claimant or partner is responsible for and

               12.3 are each aged ten or over but under 20 when the loan is taken out, or
                      who will be age ten within a year and

               12.4 are of different sexes (see DMG 78430).
                                                                  1 SPC Regs, Sch II, para 12(2) 2 R(IS) 16/98

78421    Provision of, in this context, applies to measures both to provide and maintain a
         dwelling in an acceptable state for human habitation. This means that replacement
         (where the item no longer performs the function for which it was designed) can also
         be considered as well as initial installation.

         Example 1

         Jack buys a cottage lacking basic modern amenities and obtains a loan to carry out
         extensive improvement work. This involves the building of an extension to house a
         new kitchen and bathroom. Jack and his partner have two young children and there
         is no other way of providing these facilities in the existing structure. Interest on a
         loan for the extension can be considered under DMG 78420 1. and 6., as the
         allowable expenditure is for providing or adapting a room to house the bath, shower
         etc. or the facilities for cooking and preparing food.

         Example 2

         Kelly has taken out a home improvement loan for replacement windows. The
         previous window frames were rotten and they leaked. The DM determines that
         interest on the loan cannot be allowed as the windows already provide ventilation,
         insulation and natural lighting and there is therefore no need to provide it.

         Fitness for human habitation

78422    Fitness for human habitation is a flexible concept that can change from one
         generation to another. The measures listed at DMG 78420 are an exclusive list of
         items currently considered necessary for a dwelling to be fit for human habitation.
         But this does not mean that all the items in the list must be installed to make the
         dwelling fit. The DM should exercise discretion as to what is necessary in each
         particular case.

         Example 1

         Gina takes out a loan to pay for the installation of a damp proof course in her home.
         The property is not damp and is not likely to become so. But Gina wants to have the
         work done anyway. The DM determines that interest on the loan cannot be allowed.




Vol 13 Amendment 22 June 2010
Loans for repairs and improvements                                              78423       78427

         The installation of a damp proof course is not necessary to maintain the home’s
         fitness for human habitation.

         Example 2

         Eric has a loan for various repairs to his home. The work he had done includes
         insulating the loft, re-wiring, a new bathroom, a new kitchen and a new central
         heating boiler and radiators. Eric says that

         1.       there was no insulation in the loft

         2.       the upstairs rooms were cold due to heat escaping through the roof

         3.       the wiring was in good repair but he thought he would have it done

         4.       the washbasin and toilet were cracked and the bath leaked

         5.       the kitchen was usable but his wife wanted something more up to date

         6.       there was central heating, but the boiler had broken down and he had 2 of his
                  10 radiators replaced at the same time.

         Allowable amounts are the new bathroom, insulating the loft and the central heating
         boiler. The rest are not allowable because they are not necessary to maintain the
         home’s fitness for human habitation as adequate facilities were already in place.

         Example 3

         Blair’s central heating system is condemned by the Gas Board. He takes out a loan
         to pay for a complete new central heating system. The DM determines that interest
         on the loan cannot be allowed. The replacement of the old unsafe system with a
         complete new central heating system is not a repair to an existing heating system.

         78423 - 78425

         Damp proof measures

78426    When considering damp proof measures as in DMG 78420 3., DMs should note that
         a roof

         1.       keeps out the elements

         2.       provides security

         3.       is an important part of the structure of a building

         4.       prevents water entering a building

         5.       prevents damp occurring.

78427    A repair or improvement made to a roof is a damp proof measure as in DMG 78420
         3., if that is its sole or predominant purpose. It is not a damp proof measure if that is
         merely one part of its function. The renewal of a roof is not a damp proof measure
         but may be the repair of an unsafe structural defect (see DMG 78420 10.).



Vol 13 Amendment 22 June 2010
Prisoners                                                                             78657          78662

            Pre-release schemes

78657       Shortly before release, prisoners may be allowed short periods of release on
            temporary licence to help them get used to life outside prison again. They may find
            work outside prison to support themselves and spend short periods at home. Such
            people

            1.    are still serving a sentence of imprisonment and
                                                                            1
            2.    continue to be prisoners until the time of their release .
                                                                                                   1 R(I) 9/75

            Release on licence

78658       Release on licence means release on parole after completion of a specified part of
                                                                  1
            the original sentence. A person released on licence is no longer detained in legal
            custody and is no longer a prisoner.
                                                                      1 Criminal Justice Act 1991, s 32 to 37A

            Curfews

78659       Some prisoners sentenced to less than four years can be released on a curfew
            licence up to 60 days before their automatic release date. Under the curfew licence
            they have to wear an electronic tag and remain at home during agreed periods of
                     1
            the day . These conditions apply from the date of early release to the day they
            would have been eligible for release under licence.
                                                                                               1 s 34A & 37A

78660       Although subject to a curfew condition, the person is released on licence and is no
                             1
            longer a prisoner .
                                                                                                1 s 32 to 37A



            Period of detention in custody

78661       When working out the period for which a person is detained in custody

            1.    count the day on which the detention starts and

            2.    do not count the day of release from detention

            as a day on which the person is detained in custody.

78662       A period of detention in custody therefore

            1.    starts on the day on which the person is detained and

            2.    ends on the day before the person is released from detention.




Vol 13 Amendment 22 June 2010
Prisoners                                                                                           78663         78667


            Prisoner admitted to hospital

78663       The DM should establish the legislation used to admit a prisoner to hospital. A
            person admitted
                                                                          1
            1.     under prescribed mental health legislation is a patient for SPC purposes and
                   has an applicable amount of nil or
                                                                          2
            2.     under prescribed mental health legislation other than that in 1. above is a
                   patient for SPC purposes and has entitlement to their full applicable amount
                        1 SPC Regs, reg 1(2), Sch III para 2, MH Act 83 s 47, s 45A; MH (C & T) (Scot) Act 03 s 136, s 130;
                                                                     Criminal Procedure (Scotland) Act 1995; 2 MH Act 83



            Claimant is a Technical Lifer - England and Wales only

                                             1
78664       The status of technical lifer is an administrative classification which was given to
            certain prisoners with a life sentence. It was given when the Secretary of State for
            Justice accepted that the criminal court that heard the individual’s case would have
            given an order for hospital treatment rather than impose a sentence of
            imprisonment.
                                        1 Regina (EM and others) v SoS for Work and Pensions [2009] EWHC 454 (Admin)

78665       A technical lifer should be treated, for the purposes of entitlement to SPC, as though
                                                          1
            they had been given a hospital order with no term of imprisonment . This means
            that a person with technical lifer status is eligible for SPC as an ordinary hospital in-
            patient.

            Note: The practice of treating prisoners as technical lifers was abandoned in 2005.
                                                                                                         1 MH Act 83, s 37



            Guarantee credit for prisoners

78666       GC is not normally payable to prisoners. This is because the rate of both the

            1.     SMG and

            2.     additional amount applicable
                                1
            for prisoners is nil . The exception to this rule is where a person is a remand
            prisoner.
                                                                   1 SPC Act 02, s 2(3) & (9); SPC Regs, reg 6(2)(a) & (3)



            Guarantee credit for remand prisoners

            Meaning of remand prisoner

                                    1
78667       A remand prisoner is a person who, for a period of not more than 52 weeks, has
            been

Vol 13 Amendment 22 June 2010
Prisoners                                                                               78677          78679

            2.     claimant who is detained in custody, the DM should

                   2.1    revise the award to a nil amount for the claimant and

                   2.2    consider whether a change of claimant is needed and

                   2.3    if the claimant’s partner claims SPC, consider their claim under the
                          normal rules.

            Life Sentences

78677       Life sentences (or indeterminate sentences) fall into two categories -

            1.     mandatory life sentences. Where a person is convicted of murder this is the
                   only sentence which can be imposed;

            2.     discretionary life sentences where the judge holds it to be appropriate in the
                   circumstances of the case or where it is held to be necessary, e.g. for public
                   protection.

78678       In both cases the trial judge sets a tariff period which is effectively the “punishment”
            part of the sentence. Once the tariff date has been reached the Parole Board can
            consider an application for release. A release direction will only be made if the
            Parole Board is satisfied that the prisoner would not pose an unacceptable risk to
            the public. Otherwise they will remain in prison. A trial judge can decline to set a
            tariff period. In the case of mandatory lifers this is called a ‘whole life order’. It
            means that a prisoner can never become eligible for a Parole Board review or for
            release.

78679       A prisoner who remains in prison beyond their tariff date does not become eligible
            for DWP benefits - they are still prisoners. Similarly a life sentence prisoner who is
            transferred to psychiatric hospital for treatment does not become eligible for DWP
                                                               1
            benefits when the tariff date has been reached . Such a patient would only become
            eligible for benefit upon release.
                                                                              1 SPC Regs, reg 8; Sch III, para 2




Vol 13 Amendment 22 June 2010
Loss of benefit                                                                             78900          78905


         Others
         Loss of benefit
         Introduction

78900    [See DMG Memo 20/10] The law provides for restrictions in the payment of certain
                                                                          1
         benefits following convictions for benefit fraud offences .
                                                                    1 SS Fraud Act 2001; SS (Loss of Benefit) Regs

78901    General guidance on how to apply the restrictions can be found in DMG Chapter 08
         at DMG 08200 et seq. But there are certain provisions that apply particularly to
              1
         SPC . The following guidance explains how those provisions apply.
                                             1 SPC Act 02, s 14; Sch 2, Part 3, paras 44 to 49; SPC Regs, reg 25(1)


         Definitions

78902    The following paragraphs explain the meaning of terms used throughout this
         guidance on the loss of benefit provisions.

         Benefit week

                                1
78903    Benefit week means

         1.       where SPC is paid in advance, the period of 7 days beginning on the day on
                  which, in the claimant’s case, that benefit is payable

         2.       where SPC is paid in arrears, the period of 7 days ending on the day on
                  which, in the claimant’s case, that benefit is payable
                                                           1 reg 1(2) & 25(3); SS (Loss of Benefit) Regs, reg 3A(6)

         Determination day

78904    The determination day is the day that a determination is made that loss of benefit
                        1
         should apply .
                                                                                  1 reg 1(2); SPC Regs, reg 25(2)(i)

         Family

                                                                              1
78905    For the purposes of the loss of benefit provisions, family means a

         1.       couple or

         2.       a couple and any child or person of a prescribed description who is

                  2.1   a member of the same household and

                  2.2   the responsibility of either or both members of the couple or




Vol 13 Amendment 22 June 2010
Loss of benefit                                                                                        78906          78908

         3.       person who is not a member of a couple and any child or person of a
                  prescribed description who is

                  3.1       a member of the same household and

                  3.2       the responsibility of that person.
                                                                            1 SS Fraud Act 2001, s 13; SS CB Act 92, s 137(1)


         Person of a prescribed description

78906    A person of a prescribed description for the purposes of the definition of family in
                               1
         DMG 78905, is a person
                                                                                                              2
         1.       who is an additional spouse in the case of a polygamous marriage (see DMG
                  77020) or

         2.       aged 16 or over who is in F/T education and is treated as a child for CHB
                                3
                  purposes .
                        1 SS (Loss of Benefit) Regs, reg 3A(7); SPC Regs, reg 25(3); 2 SS (Loss of Benefit) Regs, reg 3A(7)(a);
                                           SPC Act 02, s 12(1); 3 SS (Loss of Benefit) Regs, reg 3A(7)(b); SS CB Act 92, s 142


         Conditions for restriction on payment
                                                                                1
78907    Restrictions on the payment of benefit apply where the

         1.       offender is convicted of one or more benefit offences (see DMG 08206) in two
                  separate sets of proceedings and

         2.       second offence is committed within the period of

                  2.1       three years after the date of the second conviction where the second
                            offence was committed before 1.4.08 or

                  2.2       five years after the date of the second conviction where the second
                            offence was committed on or after 1.4.08 and

         3.       later or earlier proceedings have not previously been taken into account in
                  applying a restriction on payment in relation to the offender or to a member of
                  the offender’s family and

         4.       offender, or a member of the offender’s family, satisfies the conditions of
                  entitlement for a sanctionable benefit (see DMG 08201) at any time within the
                  disqualification period.
                                                                                                   1 SS Fraud Act 2001, s 7(1)

78908    DMs should note that
                                                            1
         1.       SPC is a sanctionable benefit (see DMG 08201)

         2.       determinations as to whether the conditions in DMG 78907 apply will be
                  made on behalf of the Secretary of State by a central unit (see Multi Benefit
                  Bulletin 18/02 for details of the procedure).
                                                                                 1 s 7(8); SPC Act 02, Sch 2, para 45(1) & (3)


Vol 13 Amendment 22 June 2010
People subject to immigration control                                                           78940         78942

         People subject to immigration control
         General

                                                                     1
78940    PSICs are normally excluded from SS benefits . There are exceptions to this rule for
                                            2
         certain categories of people .
                                            1 Immigration and Asylum Act 1999, s 115(1); 2 SS (Immigration and Asylum)
                                                                          Consequential Amendments Regulations 2000


         Meaning of person subject to immigration control

                          1
78941    PSICs means a person who is not a national of the EEA who

         1.     requires leave to enter or remain in the UK but does not have it or

         2.     has leave subject to the condition that they have no recourse to public funds
                or

         3.     is a sponsored immigrant or

         4.     has had limited leave extended only because they have appealed a decision
                to vary, or refuse to vary that leave.
                                                                           1 Immigration and Asylum Act 1999, s 115(9)


          Exceptions

78942    The exceptions where SPC can be awarded in full (subject to the normal rules of
         entitlement) are when the claimant
                                                                                                               1
         1.     is a sponsored immigrant who has been in the UK for five years or more or
                                                                                     1
         2.     is a sponsored immigrant and the sponsor has died or
                                                                                 1
         3.     has limited leave and is temporarily without funds or
                                                                                                                   2
         4.     is an asylum seeker who has transitional protection under the 3.4.00 rules or

         5.     is a national of a country which has ratified the

                5.1      European Convention on Social and Medical Assistance or

                5.2      Council of Europe Social Charter (see Appendix 4 to DMG Chapter 24)
                                                  1
         and is lawfully present in the UK .

         “Lawfully present” in this context means that the person should have some form of
         leave to enter or remain in the UK. Asylum seekers, or people with temporary
         admission in other circumstances, would not be regarded as being lawfully present
         for this purpose.
          1 The Social Security (Immigrants and Asylum) Consequential Amendments Regulations 2000, reg 2(1); 2 reg 2(7)




Vol 13 Amendment 22 June 2010
People subject to immigration control                                                            78943          78947


         Sponsored immigrants

78943    PSIC’s are entitled to SPC if they

         1.      have leave to enter or remain in the UK as a sponsored immigrant and

         2.      have not been resident in the UK for a period of at least five years and

         3.      the sponsor has died.

         If there is more than one sponsor they must all have died before SPC can be
         awarded.

         Example 1

         A man enters the UK in December 1999 with indefinite leave under a written
         sponsorship agreement signed in November 1999. In January 2004 the sponsor
         dies and he claims SPC. He is a PSIC with entitlement to SPC.

         Example 2

         A woman enters the UK in May 2001 with indefinite leave under a written
         sponsorship agreement signed by her two sons in April 2001. She lives with her
         elder son who dies in May 2004 and she claims SPC. But her other sponsor, her
         younger son, is still alive. The claimant is a PSIC with no entitlement to SPC.

         Note: Where the claimant has been resident in the UK for five years, SPC can be
                            1
         awarded in full .
         1 The Social Security (Immigrants and Asylum) Consequential Amendments Regulations 2000, reg 2 (1), Sch, para 3



         78944 - 78945


         Partner is a person subject to immigration control

                                                                                                   1
78946    A partner that is a PSIC is not a member of the claimant’s household although their
         presence in the dwelling may be counted as a person residing with the claimant for
                                           2
         severe disability purposes .
                                                                                      1 reg 5(1)(h); 2 Sch I para 1(1)(a)


         Temporarily without funds

78947    A PSIC is entitled to SPC if they

         1.      have limited leave to enter or remain in the UK with no

                 1.1      recourse to public funds or

                 1.2      charge on public funds

                 during that period of limited leave and



Vol 13 Amendment 22 June 2010
Types of mortgage and loan arrangements                                             Appendix 1


        11.   Overdraft facilities

        An overdraft is an arrangement under which a person is allowed to withdraw more
        money than they have in their bank account. But a person does not have to make
        use of any such arrangement. An overdraft may simply be a facility that is available
        if needed and the granting of it is not a loan. But the use of an overdraft facility may
                                                                      1
        be a loan that can be allowed for housing costs purposes if the overdraft is

              1.     specifically arranged in advance for an eligible purpose and

              2.     used for that eligible purpose.
                                                                                      1 R(IS) 22/98

        12.   Flexible mortgage

        This type of mortgage combines mortgage borrowing with savings and/or a current
        account. Flexible mortgage accounts and the type of statements issued by lenders
        vary. But basically all income is paid into the account and regular spending is taken
        from it. Such accounts may also include a “drawdown” facility. This can be used to
        provide extra loan monies to the borrower when and if required with the minimum of
        inconvenience. When considering a flexible mortgage the DM should

              1.     find out what the true capital balance outstanding is at the outset and

              2.     revisit that amount on the anniversary date (unless there is an eligible
                     increase in the outstanding balance) and

              3.     apply normal rules when considering whether housing costs can be
                     allowed on loan monies used from a “drawdown” facility.

        Note: The amount of any drawdown facility should not be treated as part of the
        outstanding balance as in 1.. This is because although such a facility is available
        automatically, there is no compulsion on the borrower to take it up.

        13.   Mortgage Rescue Scheme

        The mortgage rescue scheme has two separate parts – a mortgage to rent scheme
        and a shared equity scheme.

        Under the mortgage to rent scheme, a housing association buys the home and
        allows the claimant to carry on living there as a tenant. The claimant will no longer
        own the home and will not be entitled to housing costs.

        Under the shared equity scheme, a housing association will give the claimant a loan
        (based on the equity they have in the property) which will be paid to the main
        mortgage lender and will be used to lower the monthly mortgage payments to that
        lender. The claimant will be entitled to housing cost interest on the housing
        association loan as well as the interest to the main mortgage lender.




Vol 13 Amendment 22 June 2010
Housing costs - amount of non-dependant deductions                          Appendix 4.2


        Rates from 9.4.07

        Deductions apply as follows

        1.    non-dependants in remunerative work - £47.75

        2.    where the DM is satisfied that the non-dependant in remunerative work has a
              gross weekly income of

              2.1     less than £111.00                           £7.40

              2.2     £111.00 to £163.99                          £17.00

              2.3     £164.00 to £212.99                          £23.35

              2.4     £213.00 to £282.99                          £38.20

              2.5     £283.00 to £352.99                          £43.50

              2.6     £353.00 or more.                            £47.75


        Rates from 7.4.08

        Deductions apply as follows

        1.    non-dependants in remunerative work - £47.75

        2.    where the DM is satisfied that the non-dependant in remunerative work has a
              gross weekly income of

                2.1   Less than £116.00     £7.40

                2.2   £116.00 to £171.99    £17.00

                2.3   £172.00 to £222.99    £23.35

                2.4   £223.00 to £295.99    £38.20

                2.5   £296.00 to £368.99    £43.50

                2.6   £369.00 or more       £47.75


        Rates from 6.4.09

        Deductions apply as follows

        1.    non-dependants in remunerative work - £47.75

        2.    where the DM is satisfied that the non-dependant in remunerative work has a
              gross weekly income of




Vol 4 Amendment 22 June 2010
Housing costs - amount of non-dependant deductions                             Appendix 4.3


                2.1   Less than £120.00       £7.40

                2.2   £120.00 to £177.99      £17.00

                2.3   £178.00 to £230.99      £23.35

                2.4   £231.00 to £305.99      £38.20

                2.5   £306.00 to £381.99      £43.50

                2.6   £382.00 or more         £47.75


        Rates from 12.4.10

        Deductions apply as follows (note for this year the bandwidths and the rates of
        deduction have not changed)

        1.    non-dependants in remunerative work - £47.75

        2.    where the DM is satisfied that the non-dependant in remunerative work has a
              gross weekly income of

                2.1   Less than £120.00       £7.40

                2.2   £120.00 to £177.99      £17.00

                2.3   £178.00 to £230.99      £23.35

                2.4   £231.00 to £305.99      £38.20

                2.5   £306.00 to £381.99      £43.50

                2.6   £382.00 or more         £47.75




Vol 13 Amendment 22 June 2010
Third party deductions for mortgage interest and housing costs                                   79300          79303


         Third party deductions for mortgage
         interest and housing costs

79300    There are two schemes for third party deductions for housing costs
                                   1
         1.    the MID scheme and
                                                         2
         2.    the third party deduction scheme .
                                                         1 SS (C&P) Regs, regs 34A, 34B & Sch 9A; 2 reg 35 & Sch 9


         Mortgage interest direct

         Claimant entitled to guarantee credit

79301    [See Memo DMG 26/10] Mortgage interest payments must be made directly to a
         third party where
                                                    1
         1.    the claimant is entitled to GC
                                                        2
         2.    the loan is secured on the home and
                                                                     3
         3.    the loan is payable to a qualifying lender and
                                                                                                            4
         4.    there is an amount in respect of mortgage interest included in the AMG .
                   1 reg 34A(1A), Sch 9A, para 1; 2 SS A Act 92, s 15A(4); 3 s 15A(3), SS (C&P) Regs, Sch 9A, para 8;
                                                        4 SS A Act 92, s 15A(1A) & SS (C&P) Regs, Sch 9A, para 2(a)


         Claimant entitled to savings credit only

79302    Mortgage interest payments may be made directly to a third party where
                                                            1
         1.    the claimant is entitled to SC only and
                                                                                   2
         2.    the conditions described at DMG 79301 2. - 4. apply and

         3.    the claimant has requested in writing that the Secretary of State make
                                                                 3
               payments direct to the qualifying lender or

         4.    the DM decides it would be in the interests of the claimant’s family to make
                                                                                             4
               payments of mortgage interest direct to the qualifying lender .
                    1 Sch 9A, para 2A(1)(a); 2 SS A Act 92, s 15A(1A), s 15A(3), s 15A(4), SS (C&P) Regs, reg 34B(1),
                     (2) and Sch 9A, paras 2(a) and 8; 3 SS A Act 92, s 15A(3), SS (C&P) Regs, Sch 9A, para 2A(2)(a);
                                                                                               4 Sch 9A, para 2A(2)(b)


79303    When deciding whether it would be in the interests of the claimant’s family (see
         DMG 79334 and 79335) to make third party deductions, the DM should have regard
                                                                                                 1
         to whether the claimant is in arrears with their payments to the lender .
                                                                                                  1 Sch 9A, para 2A(3)




Vol 13 Amendment 22 June 2010
Third party deductions for mortgage interest and housing costs                                    79304         79307

         Amount of loan interest to pay to qualifying lender


79304    The DM decides the amount of qualifying loan interest to be paid direct to a
                                                                          1
         qualifying lender. This should be calculated using the standard rate of interest.
                                                                                    1 SS (C&P) Regs, Sch 9A, para 3(1A)


79305    The DM then pays the specified amount in arrears at four weekly intervals directly to
                                   1
         the qualifying lender .
                                                                                                        1 Sch 9A, para 6


         Qualifying lenders

                                    1
79306    A qualifying lender is
                                                                                              2
         1.      any company describing itself as a bank under certain law
                                                                                     2
         2.      any building society incorporated under relevant law
                                                                                                            3
         3.      any body or person carrying on insurance business under certain law

         4.      any county council, district council, county borough council or London Borough
                 Council
                                                       4
         5.      any council under certain law

         6.      the Common Council of the City of London

         7.      the Council of the Isles of Scilly

         8.      any new town corporation

         9.      the Regulator of Social Housing

         10.     Housing for Wales
                                               5
         11.     Communities Scotland

         12.     the Development Board for Rural Wales
                                                                      6
         13.     any body incorporated under certain law whose main objectives include
                 making loans secured by a mortgage or charge over land or (in Scotland) by
                 heritable security.
                   1 SS A Act 92, s 15A(3); SS (C&P) Regs, Sch 9A, para 8; 2 SS A Act 92, s 15A(3)(a); Financial Services
               and Markets Act 2000, Part 4; 3 SS A Act 92, s 15A(3)(c); Financial Services and Markets Act 2000, Part 4;
                  4 Local Government etc (Scotland) Act 94, s 2; 5 SS (C&P) Regs, Sch 9A, para 8(c); 6 Companies Act 85


         Relevant benefits

                                        1
79307    Relevant benefit means SPC, or SPC and any RP, IB or SDA

         1.      if one of those benefits is paid with SPC in a combined payment in respect of
                 any period and

         2.      the SPC alone is insufficient for the purposes of deductions.
                                                                                         1 SS (C&P) Regs, Sch 9A, para 1


Vol 13 Amendment 22 June 2010
Third party deductions for hostel service charges                                                  79500         79501


         Third party deductions for hostel service
         charges

         Meaning of hostel
                      1
79500    A hostel is a building other than a care home, independent hospital or Abbeyfield
         Home which

         1.     is

                1.1       managed or owned by a housing association registered with the
                                                                                              2
                          Regulator of Social Housing or the Welsh Ministers or

                1.2       managed or owned by a housing association registered with the
                                                    3
                          Scottish Ministers or

                1.3       operated other than on a commercial basis and funded wholly or partly
                          by a government department or an LA or

                1.4       managed by a voluntary organization or charity and provides care,
                          support or supervision for the purpose of

                          1.4.a      rehabilitation or

                          1.4.b      resettlement within the community and

         2.     provides accommodation not in separate and self-contained premises and
                facilities adequate for the needs of those living in the hostel including

                2.1       board or

                2.2       water or

                2.3       a service charge for fuel or

                2.4       meals or

                2.5       laundry or

                2.6       cleaning (other than communal areas).
                          1 SS (C&P) Regs, Sch 9, para 1(1); 2 Sch 9, para 1(1)(b)(i); 3 Housing (Scotland) Act 2001, s 57

                                                1
79501    Voluntary organization means a body that is not a

         1.     public authority or

         2.     LA

         whose activities are carried out otherwise than for profit.
                                                                                       1 SS (C&P) Regs, Sch 9, para 1(1)




Vol 13 Amendment 22 June 2010
Third party deductions for hostel service charges                                               79502       79507

79502    In deciding if the hostel is managed the DM may find it useful to know

         1.     the terms of the lease (if available)

         2.     details of how the hostel is staffed

         3.     who has responsibility for major and minor repairs

         4.     who does the accounts for the hostel.

79503    Staffing levels may be flexible but should be appropriate to the claimant's needs.
         Some hostels may be run with few staff. Others may need to be fully staffed with a
         great deal of administration. The time spent managing the hostel and the quality of
         care provided is also important.

         Rules for third party deductions

79504    Part of the claimant's specified benefit (see DMG 79203) may be deducted and paid
         direct for hostel charges. This can include a deduction for
                                                      1
         1.     current hostel service charges and
                                                2
         2.     arrears of hostel charges .
                                                                     1 SS (C&P) Regs, Sch 9, para 4A; 2 Sch 9, para 5


         Current charges

                                                                                           1
79505    Current hostel service charges can be deducted and paid direct if

         the claimant or partner

         1.     is resident in a hostel and has claimed HB in the form of a rent rebate or rent
                allowance or
                                                                                            2
         2.     is resident in approved premises under specified legislation and

         3.     the charge for the hostel or approved premises includes a payment for
                        3
                services as listed in DMG 79500 2..
                            1 Sch 9, para 4A(1); 2 Offender Management Act, s 13; SS (C&P) Regs, Sch 9, para 4A(1)(d)



                                                            1
79506 Approved premises in DMG 79505 means accommodation provided for persons
        granted bail or who have been convicted of offences.

                                                                                    1 Offender Management Act, S 13

79507    The amount to be paid direct is
                                  1
         1.     determined by

                1.1   the housing authority or

                1.2   the DM, where the housing authority has not made a determination




Vol 13 Amendment 22 June 2010

								
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