[2023] UKUT 176 (AAC)

Universal credit was created by Part 1 of the Welfare Reform Act 2012 (‘the WRA’). It abolished and replaced a series of other benefits including housing benefit. Under section 11 of the WRA an award of universal credit includes an amount in respect of liability for payments in respect of accommodation occupied as a home. The amount is determined in accordance with the Universal Credit Regulations 2013 (‘the 2013 Regulations’). Regulation 25 sets out the conditions of entitlement to the housing costs element. There is no issue in this appeal in that regard. Regulation 26 provides for the amount of the housing costs element and gives effect to Schedule 4 in regard to liability for rent payments.

Paragraph 8(1) of Schedule 4 requires a determination to be made “as to the category of accommodation which it is reasonable for the renter to occupy, having regard to the number of persons who are members of the renter’s extended benefit unit”. It is common ground that P was a member of the extended benefit unit. Under paragraph 10, the Appellant and his wife were entitled to one bedroom for themselves and one bedroom for P.

Paragraph 12(A1) provides for entitlement to an additional bedroom. The relevant provisions in this case are:

“12.— (A1) A renter is entitled to an additional bedroom if one or more of the following persons satisfies the overnight care condition (see sub-paragraph (3)) —

…(b) a person in the renter’s extended benefit unit;…

(3)

A person satisfies the overnight care condition if—

(a)

they are in receipt of—

… (iii) the daily living component of personal independence payment

(b)

one or more persons who do not live in the renter’s accommodation are engaged to provide overnight care for the person and to stay overnight in the accommodation on a regular basis; and

(c)

overnight care is provided under arrangements entered into for that purpose.”