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Chapter F3: Housing Costs Element - Support for renters

Introduction ................................................................................................F3001 Definitions
F3011:"AA"
F3012:Adopter
F3013:Cap rent
F3014:Core rent
F3015:Exempt accommodation
F3016:Extended benefit unit
F3017:Foster child
F3018:Housing Act functions
F3020:Housing cost contribution
F3030:Joint renters
F3031:Joint tenant
F3032:Listed persons
F3033:Member of the armed forces
F3034:Non-dependant
F3035:Provider of social housing
F3036:Registered social landlord
F3037:Relevant payments
F3038:Renter
F3039:Renter who requires overnight care
F3050:Shared accommodation
F3051:Shared ownership
F3052:Social housing
F3060:No HCE to be included for 16 and 17 year old care leavers
General provisions relating to the calculation of the HCE for renters
General
F3071:Payments that are taken into account
Periods of payment
F3080:Calendar monthly average

How to calculate a calendar monthly average
F3090:Weekly payments
F3091:4 weekly payments
F3092:3 monthly payments
F3093:Annual payments
F3100:Rent includes rent free periods
Room allocation
F3110:Reasonably sized accommodation
F3111:Number of bedrooms
Temporary absence of a member of the renter's
F3121:extended benefit unit
F3131:Additional room
F3140:Housing cost contributions
Circumstances where no HCC deduction will be made
F3150:Renters exempt from HCC deduction
F3151:No HCC deductions for certain non-dependants
HCE calculations involving two homes
F3160:Renter treated as occupying single home
F3170:Move to new home delayed for adaptations for disabled person
F3172:Renter moves out of home because of reasonable fear of violence
Rent and other payments in the
private sector and temporary accommodation
F3181:Temporary accommodation
The calculation of HCE in the private sector
F3182:and temporary accommodation
F3190:Core rent
F3193:Core rent for joint tenants
F3201:Cap rent
F3206:Meaning of broad market area
F3207:Meaning of local housing allowance
F3208:Meaning of relevant time
Further size criteria that apply in the private rented sector
F3211:Four bedroom limit
F3212:Entitlement to shared accommodation only
F3213:Specified renter
F3231:Exception to the shared accommodation rule
F3240:Meaning of hostel
F3241:Meaning of hostel for homeless people
Rent and other payments in the social rented sector
Reduction in certain cases of amounts to be taken into account
Deductions from relevant payments of amounts
F3251:relating to particular accommodation

Power to apply to a rent officer if a relevant payment
F3252:appears excessive
The calculation of the HCE in the social rented sector
F3261:The amount of HCE
F3262:Determining the amount from which HCC deductions can be made

Determining the amount from which HCC deductions
F3263:can be made for joint tenants
F3270:Under occupancy deduction

Chapter F3: Housing Costs Element: Support for renters

F3001 Introduction

This chapter provides guidance to determine the calculation of the amount of HCE to
be included in an award of UC for claimants in rented accommodation.

F3002

F3070 et seq contains guidance that is relevant to all rental calculations whether the
claimant's home is privately rented or rented in the social housing sector.

F3003

F3180 et seq contains guidance relevant to claimants who rent privately.

F3004

F3250 et seq contains guidance relevant to claimants who rent in the social housing
sector.

[F3005-F3009]

F3010 Definitions

F3011 et seq contains definitions relevant to this chapter.

F3011 "AA" « F3010

"AA" has the meaning given in prescribed legislation (1). DMs should note the
difference between the term attendance allowance which is commonly used to
describe one particular benefit (abbreviation AA) and "attendance allowance" which
is defined in legislation (abbreviation "AA").
1 UC Regs, reg 2

F3012 Adopter

Adopter has the meaning in prescribed legislation (1) see ADM Chapter J2.
1 UC Regs, reg 2; reg 89(3)(a); Sch 4, para 2

F3013 Cap rent

Cap rent is the maximum amount of all relevant payments allowable.

F3014 Core rent

Core rent is the actual amount of all relevant payments being paid.

F3015 Exempt accommodation « F3110

Exempt accommodation has the meaning given in ADM Chapter F2.

F3016 Extended Benefit Unit « F3034

The members of a renter's extended benefit unit are (1)
1. the renter or joint renters
2. any child or qualifying young person for whom the renter or either joint renter
is responsible
3. anyone who is a non-dependant.
1 UC Regs Sch 4, para 2 & 9(1)

F3017 Foster child

Foster child is a child in relation to whom the renter (or either joint renter) is a foster
parent (1).
1. UC Regs, Sch 4, para 9(3)

F3018 Housing Act functions

Housing Act functions are functions of rent officers under prescribed legislation (1).

1 UC Regs Sch 4, para 2; Housing Act 1996, s 122

[F3019]

F3020 Housing Cost Contribution

A HCC is a deduction to be made from the HCE for each non-dependant who is in
the renters extended benefit unit (1).
1 UC Regs, Sch 4, para 2 & 13

[F3021-F3029]

F3030 Joint renters

Joint
renters (1) are members of the same benefit unit, and are each liable to make the
same relevant payments.
1 UC Regs, Sch 4, para 2

F3031 Joint tenant

A joint tenant (1) is a person who occupies the accommodation with one or more other
people who are separately liable to make relevant payments and are not members
of the same benefit unit.
1 UC Regs, Sch 4, para 24(1)

F3032 Listed persons

Listed
person (1) means
1. the renter
2. where the renter is a member of a couple, the other member of a couple and
3. any child or qualifying young person for whom the renter or joint renter is
responsible.
1 UC Regs, Sch 4, para 2

F3033 Member of the armed forces

Member of the armed forces means a member of the regular forces or the reserve
forces within the meaning of prescribed legislation (1).
1 UC Regs, Sch 4, para 2; Armed Forces Act 2006, s 374

F3034 Non- dependant

A non dependant is someone who normally lives in the home with the renter (or joint
renter) and is not (1)
1. a person within F3016 1. or 2.
2. the other member of a couple where the renter is a member of a couple and is
claiming as a single person.
3. a foster child of either the renter or joint renter
4. anyone who is liable to make payments to occupy the accommodation on a
commercial basis
5. a person to whom payments under F3037 are owed or a member of their household
6. anyone who has already been treated as a non-dependant for a claim to UC
by another person who is liable to make payments for the accommodation
occupied by the renter.
7. a child or qualifying young person for whom no one in the renter's extended
benefit unit is responsible.
Note: For the purpose of this paragraph "normally" means "usually" and should be
tested over a period to which usually can relate.
1 UC Regs, Sch 4, para 2 & 9(2)

F3035 Provider of social housing

A provider of social housing is (1)
1. a LA
2. a non profit registered provider of social housing
3. a profit making registered provider of social housing
4. a registered social landlord.
1 UC Regs, Sch 4, para 2;

F3036 Registered social landlord

A registered social landlord is (1) a body registered under prescribed legislation (2)
1 UC Regs, Sch 4, para 2; 2 Housing Act, Part 1, Ch 1; Housing (Scotland) Act 2010, s 20(1)

F3037 Relevant payments « F3034

Relevant payments are (1) payments of rent under F2041 or service charge payments.
For all renters' service charges see F2050 et seq, for those in the social sector see
also F2060 et seq.
1 UC Regs, Sch 4, para 2 & 3

F3038 Renter

A
renter (1) is either a single renter or either of the joint renters. For the purposes of
this chapter references to renter also refer to joint renters.
1 UC Regs, Sch 4, para 2
F3039 - F3049

F3050 Shared Accommodation

Shared accommodation means the category of accommodation specified in
prescribed legislation (1).
1 UC Regs, Sch 4, para 2; Rent Officers (UC Functions) Order 2013

F3051 Shared Ownership

Shared ownership tenancy has the meaning given in ADM Chapter F2.

F3052 Social housing

Social
housing (1) has the meaning given in prescribed legislation (2).
1 UC Regs, Sch 4, para 2; 2 The Housing and Regeneration Act 2008 s 68 - 77

[F3053-F3059]

F3060 No HCE to be included for 16 and 17 year old care leavers

No amount of the HCE of UC can be included in an award where the renter is
1. 16 or 17 years old and
2. is a care leaver (1) .
Note:
see ADM chapter E1for definition of care leaver.
1 UC Regs, Sch 4, para 4

[F3061-F3069]

General provisions relating to the calculation of the amount of HCE for renters

F3070 General « F3002

F3071 et seq contains guidance that is relevant to the calculation of a renter's HCE.

F3071 Payments that are taken into account « F3070 « F3190 « F3194 « F3251

Where a renter meets the payment, liability and occupation conditions for more than
one relevant payment, each relevant payment will be taken into account in the
calculation of the HCE (1).

1 UC Regs, Sch 4, para 6(1)

F3072

Any amount of a relevant payment where the renter does not meet the payment,
liability and occupation conditions in respect of that amount will not be taken into
account when calculating the HCE (1).

1 UC Regs, Sch 4, para 6(2)

F3073

Any relevant payment a renter is liable for will only be taken into account once,
whether in relation to the same or a different renter, when calculating a renter's
HCE (1). This does not prevent different payments of the same description being
brought into account in respect of the same assessment period.
1 UC Regs, Sch 4, para 6(3)

[F3074-F3079]

Periods of payments

F3080 Calendar monthly average « F3190 « F3194

All relevant payments will be taken into account as a calendar monthly amount (1).

1 UC Regs, Sch 4, para 7(1)

F3081

Where any relevant payment is due for a period other than calendar monthly it will
be calculated as an average of all payments due in a 12 month period (1).
1 UC Regs, Sch 4, para 7(2)

[F3082-F3089]

How to calculate a calendar monthly average

F3090 Weekly payments

Where a relevant payment is weekly, the calendar monthly average is calculated by
multiplying the weekly amount by 52 and dividing the total by 121. It will always be
assumed that there will be 52 weeks in a year.
1 UC Regs, Sch 4, para 7(2)(a)

Example

Jacob's rent is £72 a week for his 2 bedroom flat. £72 x 52 / 12 = £312 Jacob's calendar monthly rent is £312.

F3091 4 weekly payments

Where a relevant payment is due for a 4 weekly period the calendar monthly
average is calculated by multiplying the payment by 13 and dividing the total by 121.
1 UC Regs, Sch 4, para 7(2)(b)

Example

Ellie lives in a two bedroom semi detached house with her family and is charged £480 rent every 4 weeks. £480 x13 / 12 = £520 Ellie's calendar monthly rent is £520.

F3092 3 monthly payments

Where a relevant payment is due quarterly (every 3 months) the calendar monthly
average is calculated by multiplying the payment by 4 and dividing the total by 121.
1 UC Regs, Sch 4, para 7(2)(c)

Example

Isaac lives in a one bedroom flat and he pays his rent quarterly. His quarterly payments are £1,600. £1,600 x 4 / 12 = 533.34 Isaac's calendar monthly rent is £533.34.

F3093 Annual payments

Where a relevant payment is due annually the payment will be divided by 121.
1 UC Regs, Sch 4, para 7(2)(d)

Example

Millie lives with her family in a three bedroom house her rent is paid annually and is
£7000 / 12 = £583.34
Millie's calendar monthly rent is £583.34.

[F3094-F3099]

F3100 Rent includes rent free periods

Where a renter is liable to pay rent and/or service charge payments but that liability
includes periods where they have one or more rent free periods, to determine the
calendar monthly average the amount of each payment must be multiplied by the
number of payments (see F3101) in a 12 month period (1). This number must then be
divided by 12 to find the calendar monthly amount.

1 UC Regs, Sch 4, para 7(3)

F3101 « F2102 « F3100

The total number of weekly payments the renter is liable for in a 12 month period shall
be established using the following formulae (1). For
1. weekly payments
52 - RFP
2. two-weekly
payments 26 - RFP 3. four-weekly
payments 13 - RFP

1 UC Regs, Sch 4, para 7(3A)

F3102

"RFP" is the number of rent free periods in the 12 month period in question (1).
1 UC Regs, Sch 4, para 7(3A)

Example

David pays rent of £150 every week for his one bedroom flat. His tenancy agreement
allows him to have 4 rent free weeks.
52 - 4 = 48
48 x 150 / 12 = £600.00
David's calendar monthly rent is £600.

F3103

A rent free period is a period where the renter has no liability to make relevant
payments.
1 UC Regs, Sch 4, para 7(4)

[F3104-F3109]

Room allocation

F3110 Reasonably sized accommodation « F3202 « F3270

When calculating the amount of the HCE for a renter a determination has to be
made as to the size of the home it is reasonable for the renter to occupy (1). This is
with reference to the number of people in the renter's extended benefit unit, F3015.
1 UC Regs, Sch 4, para 8(1)

F3111 Number of bedrooms « F3203 « F3211

A renter is entitled to a bedroom for (1)
1. the renter or joint renters
2. a qualifying young person for whom the renter or either joint renter is responsible
3. a non dependant who is not a child
4. two children who are under 10 years old
5. two children of the same sex
6. any other child.

1 UC Regs, Sch 4, para 10(1)

F3112

Where a member of the extended benefit appears twice in the list at F3112 they will
be allocated to the description that results in the fewest number of bedrooms (1).
Note:
A claimant couple will generally be allocated only 1 bedroom between them. A
non-dependant couple will be allocated 1 bedroom each but a housing costs
contribution will be considered for each of them.
1 UC Regs, Sch 4, para 10(2)

Example 1

Ann lives with her partner, her son who is 7 and her daughter who is 8. Ann is
entitled to 1 bedroom for her and her partner and another bedroom for her 2
children.

Example 2

Kevin, a single parent, lives with his 12 year old daughter and his 8 year old son.
Kevin is entitled to 1 bedroom for himself and a bedroom for each of his children.
This is 3 bedrooms in total.

Example 3

Angelina and Brad have 4 children. Two boys, Joseph who is 15 and Harry who is 6.
The other children are girls, Amelia who is 12 and Romany who is 8.
Joseph and Harry are both boys so can be allocated 1 room for both of them.
Amelia and Romany are both girls so can be allocated 1 room for both of them. This
would mean two rooms for the children.
Alternatively it is possible that having allocated Amelia and Romany a shared
bedroom, Joseph and Harry could be allocated a room each. As the first calculation
results in fewer bedrooms that will be the number of bedrooms allocated for the
purpose of F3112.

F3113 « F3270

When determining the number of rooms a renter is entitled to, regard must be had
1 to
1. the treatment of temporary absence of members of the renter's extended
benefit unit (F3115)
2. any entitlement to an extra bedroom for overnight care (F3131)
3. the additional requirements in F3211 et seq (in the Private Rental Sector and
temporary accommodation).
1 UC Regs, Sch 4, para 10(3)

[F3114-F3120]

F3121 Temporary absence of a member of the renter's extended benefit unit

Where a member of the renter's extended benefit unit is temporarily absent from the
renter's home they will continue to be included in the calculation of the number of
bedrooms in the circumstances set out in F3122 et seq (1).

F3122 « F3121

For a child or qualifying young adult the circumstances are (1) that the calculation
relates to any time
1. during the first 6 months of the absence of the child or qualifying young person
for whom the renter is treated as not being responsible because they are
being looked after by a LA (2). This applies only where immediately before the
LA started looking after them they were included in the extended benefit unit
of a renter whose award included the HCE (3).or
2. during the first 6 months of the absence of the child or qualifying young person
for whom the renter is treated as not being responsible because they are a
prisoner (4) and
2.1 immediately before becoming a prisoner they were included in the
extended benefit unit of a renter whose award included the HCE and
2.2 they have not been sentenced to a term in custody that is expected to
exceed 6 months (5) or
3. before the renter ceases to be responsible, under prescribed legislation (6), for a
child or QYP who is temporarily absent (7) .
Note:
See also chapter F1 for further guidance on the temporary absence of a child
or QYP.
1 UC Regs, Sch 4, para 11(2); 2 Reg 4(6)(a); 3 Sch 4, para 11(2)(a); 4 Reg 4(6)(b),
5 Sch 4, para 11(2)(b); 6 Reg 4(7); 7 Sch 4, para 11(2)(c)

Example 1

Chloe lives with her parents in a two bedroom flat. Chloe's parents are entitled to UC
which includes the HCE in respect of the flat. On the 14/05/13 she is taken into care
as her parents are unable to look after her. The LA start looking after her. Chloe will
still be included in any determination of the number of bedrooms her parents require
until 14/11/13.

Example 2

Toby lives with his parents and sister in a three bedroom house. Toby is convicted of
a crime on 17/02/13 and sentenced to 2 years in prison. Toby's parents claim UC on
23/07/13. Toby cannot be included in the calculation of bedrooms the family require
because he
1. has been sentenced to a term in prison greater than six months and
2. was not included in a calculation of the number of rooms immediately prior to
becoming a prisoner.

Example 3

Nick is absent from mother's house for 6 weeks during school holidays during which
time he is living with his father in Brighton - Nick is temporarily absent and still
included in his mothers benefit unit for the whole period of absence and therefore
included in any determination of the number of bedrooms she requires.

Example 4

Stan is absent in hospital for unknown period - he is considered to be temporarily
absent for the next 6 months. After 5 months Stan's parents report that he will have
to remain in hospital for at least a further 3 months. The DM is now aware that the
absence period will exceed 6 months (5 months already passed + anticipated 3
months) and so Stan is removed from his parents benefit assessment and any
determination of the number of bedrooms they require. This change in
circumstances will be effective from the first day of the assessment period in which
the notification of Stan's prolonged stay is received.

Example 5

Nicola is absent from her mother's house for 6 weeks during school holidays during
which time she lives with her father in Spain. No temp absence period allowed, as
this absence is longer than 1 month from the outset, and she is removed from her
mothers bedroom calculations from outset of her absence.

Example 6

Kris is absent from GB for medical treatment for unknown period - he is considered
to be temporarily absent and included in his parents calculation of the number of
bedrooms. After 5 months it is decided that he will have to remain abroad for at least
a further 3 months. The DM is now aware that the absence from GB will exceed 6
months (5 months already passed + anticipated 3 months) and so Kris is removed
from any determination of the number of bedrooms his parents require. This change
in circumstances will be effective from the first day of the assessment period in
which the notification of Kris' prolonged stay is received.

F3123

For a renter the circumstances are (1) that the calculation relates to any time when
1. the renter's temporary absence from GB is disregarded under prescribed
legislation (2) or
2. the renter is a prisoner and the existing award includes the HCE when they
become a prisoner (3).

1 UC Regs, Sch 4, para 11(3); 2 Reg 11(1) or (2); 3 Reg 19(2)

F3124 « F3127

For a non-dependant the circumstances are that the calculation relates to any time
during (1)
1. the first month of the non-dependant's temporary absence from GB and
2. a further month after 1. above if the non-dependant's absence is disregarded
because of the death of a close relative (2) or
3. the first 6 months of the non-dependant's temporary absence from GB where
the absence is solely in connection with treatment for illness or physical or
mental impairment (3) or
4. the first 6 months that the non-dependant is a prisoner where they have not
been sentenced to a term of custody that is expected to exceed 6 months and
where immediately before the absence the non-dependant was included in the
extended benefit unit of the renter whose award included the HCE.
Note:
For detailed guidance on absence and temporary absence from GB see
chapter C1.

1 UC Regs, Sch 4, para 11(4) and (5(a)-(c), 2 Reg 11(2), 3 Reg 11(3)(a)

F3125

Where the non-dependent is a child or step child of the renter or joint renter they will
be included in a determination of the number of bedrooms for any period that they are
1. a member of the armed forces and
2. away on operations (1).
1 UC Regs Sch 4, paras 11(4) & (5)(d)

Example 1

Bob and Mary live with their 25 year old daughter Judith. On 15.4.14 Judith is sent
on operations for 5 months. Bob claims UC which includes HCE for their 2 bedroom
rented home on 10.6.14. Judith is included in the determinations of the number of
bedrooms whilst she is on operations.

F3126

"Away on operations" does not necessarily mean away from the UK, just away from
the home normally occupied. It also covers pre-deployment training and post
operation leave (which is described as "normalisation"). Therefore this could apply
1. to Royal Air Force personnel with immediate response duties who are based
away from home for a number of months or
2. where members of the armed forces were deployed to assist with the
Olympics.

Example 1

A two bedroom housing association property is occupied by Martin and Sarah and
their adult daughter Sam, who is in the armed forces. She is then deployed on
operations to assist with the Commonwealth Games. Martin and Sarah will still be
entitled to the bedroom for Sam and will not be under-occupying whilst she is away
on operations.

Example 2

A four bedroom council property is occupied by Warren and his adult daughter
Amelia, who is in the armed forces. Warren also requires frequent overnight care
from a non resident carer. Amelia is then deployed on operations in the UK from
1.12.13 to 30.6.14. Warren will still be entitled to the bedroom for Amelia and will
continue to be under-occupying by one bedroom whilst she is on operations.

Example 3

Kevin and Tanya rent a two bedroom private property. Their adult son Dave, who is
in the armed forces, also lives with them. They make a claim for UC on 1.4.14. Dave
is deployed on operations in the UK on 1.3.14 and will not return to the property until
31.8.14. From the start of the new claim, Kevin and Tanya will be entitled to the two
bedroom LHA rate.

F3127

Any non-dependant who is temporarily absent from the renter's home other than in
the circumstances set out in F3124 et seq will not be treated as part of the renter's
extended benefit unit if the absence exceeds, or is expected to exceed, 6 months (1).
1 UC Regs, Sch 4, para 11(6)

[F3128-F3130]

F3131 Additional room « F3270

A renter is entitled to an additional bedroom if they satisfy (1)
1. the overnight care condition (see paragraph F3132 below)
2. the foster parent condition (see paragraphs F3133 below)
3. the disabled child condition (see paragraph F3135 below).
However this is subject (2) to paragraphs F3136 et seq below.
1 UC regs, Sch 4, para 12(1), 2 Sch 4, para 12(2)

F3132 The overnight care condition « F3131 « F3211

A renter satisfies the overnight care condition if
1. they are in receipt of
1.1
the care component of DLA at the middle or highest rate or
1.2 "AA"
or
1.3
the daily living component of PIP and
2. one or more persons, who do not live in the renter's home, are engaged to
2.1
provide overnight care for the renter and
2.2
stay overnight in the home on a regular basis and
3. overnight care is provided under arrangements entered into for that purpose (1).
1 UC regs, Sch 4, para 12(3)

Example 1

Sandra, who is single and living alone, has a spinal injury and is in receipt of the
highest rate of the care component of DLA. An assessment by her local authority
found that she requires support for 24 hours a day that would be best provided by
employing a team to provide live in care. Overnight, the carer has to regularly turn
her in bed to ensure she does not develop bed sores. Sandra is entitled to an extra
bedroom to accommodate the carer providing overnight care.

Example 2

Philip lives with his wife and is entitled to the daily living component of PIP. At night
he needs assistance to get to the toilet. His wife provides this assistance. Philip is
not entitled to an extra bedroom as there is no requirement for someone who does
not live in the household to provide the overnight care.

F3133 The foster parent condition « F3131

A renter, or either joint renter, are entitled to one additional room if they are
1. a foster parent or
2. an adopter with whom a child has been placed for adoption (1).

1 UC Regs, Sch 4, para 12(4)

F3134

A foster parent includes a person who would be a foster parent but for the fact they
do not currently have a child placed with them provided that any period since the date
1. when their last placement ended or
2. they were approved to be a foster parent, if they have not had a child placed
with them
does not exceed 12 months (1).
1 UC regs, Sch 4, para 12(5)

F3135 The disabled child condition « F3131

A renter satisfies the disabled child condition if
1. they, or another member of their extended benefit unit, are responsible for a
child who would otherwise be expected to share a bedroom and
2. the child is in receipt of the care component of DLA at the middle or highest
rate and
3. because of their disability the child is not reasonably able to share a bedroom
with another child (1).
1 UC regs, Sch 4, para 12(6)

Example 1

Joanne and Kevin live with their two daughters and son in a local authority flat. The
two girls would normally be expected to share a room as they are aged 10 and 8.
The boy is 13 and therefore cannot be expected to share. The girls are both
disabled; one has Down's syndrome the other has Spina Bifida. Both girls are
entitled to the highest rate of the care component of DLA. This means they are not
reasonably able to share a room as the child with Down's syndrome can disrupt the
sleep of, and may pose a risk to, the other child. As the girls are not reasonably able
to share a room Joanne and Kevin are entitled to an additional bedroom.

Example 2

Ankush and Rita live with their three sons aged 7, 9 and 11 in a private rented sector
house. Two of the three children would be expected to share a room. The 9 year old
is severely autistic and suffers from night terrors and would significantly disturb the
sleep of anyone sharing the same room. Because of his disability he would not be
reasonably able to share a room. He is entitled to the highest rate of the care
component of DLA. However, as it is appropriate for the other two children to share,
he is not required to share a bedroom and Ankush and Rita are not entitled to an
additional bedroom.

Example 3

Carol and Jason live with their two daughters aged 5 and 7. Their 7 year old
daughter is entitled to the middle rate of the care component of DLA for day
attention. Carol and Jason claim they require an extra bedroom because their 7 year
old is disruptive at night and keeps their 5 year old daughter awake. The disruption
occurs intermittently on average once every six months. The DM decides that it is
not unreasonable in the circumstances for the two daughters to share a room. Carol
and Jason are not therefore entitled to an extra bedroom.

F3136 Satisfying one or more conditions « F3131

Where a renter, or one or both of joint renters, satisfy
1. the overnight care condition or
2. the foster parent condition
they are entitled to one additional bedroom for each condition they satisfy (1).
1 UC regs, Sch 4, para 12(7)

Example 1

Tony and his civil partner Mike are both entitled to the highest rate of the care
component of DLA. Due to the severity of their disabilities they both require overnight
carers to stay on a regular basis. They are entitled to one additional bedroom
between them.

Example 2

Rosie and Jim are foster parents to two children, Rosie also requires overnight care.
They are entitled to two additional bedrooms. One for satisfying the overnight care
condition and one for satisfying the foster parent condition.

F3137

Where a renter, or one or both joint renters, satisfy the disabled child condition for
one or more children they are entitled to as many bedrooms as are necessary to
ensure each child has their own bedroom (1).

1 UC regs, Sch 4, para 12(8)

F3138

Where a renter, or one or both joint renters, satisfy two or more of the overnight care
condition or
1. the foster parent condition or
2. the disabled child condition
the number of additional bedrooms they are entitled to will be determined by adding
together the number of additional bedrooms they are entitled to by virtue of satisfying
each condition (1).
1 UC regs, Sch 4, para 12(9)
Note: No renter who is living in private sector accommodation, or in temporary
accommodation as described in F3181, will be entitled to more than 4 bedrooms in
total see F3211.

F3139

F3140 Housing cost contributions « F3261

The amount of the HCC deduction for each non dependant living in the claimant's
home is £68.681.

1 UC Regs, Sch 4, para 14(1)

F3141

The deduction will be made after all other calculations have been made to determine
the amount of relevant payments to be included in a renter's HCE (1).
Note: No HCC will be made from any owner occupier payments in shared ownership
cases.

1 UC Regs, Sch 4, para 14(2)

F3142

Where the total amount of the HCC is more than the amount of rent calculated the
amount of the HCE will be nil. No other reduction for housing costs contributions will
be made from the renter's award of UC.
1 UC Regs, Sch 4, para 14(3)

[F3143-F3149]

Circumstances where no HCC deduction will be made

F3150 Renters exempt from HCC deduction

No HCC deduction will be made where the renter is a single person or is a joint
renter and at least one joint renter is (1)
1. registered as blind
2. in receipt of the care component of DLA at the middle or highest rate
3. in receipt of "AA"
4. in receipt of the daily living component of PIP
5. entitled to at least one of the benefits at 2. to 4. above but are not in receipt of
it under prescribed legislation because they are in hospital (2).
1 UC Regs, Sch 4, para 15(1) & (2)
2 DLA Reg 8; AA Reg 6; Gen Ben Reg 21; WR Act 12, s 86

Example

Jackie and David are joint renters. They rent a two bedroom house from their LA.
Their adult son lives with them. Jackie is entitled to the highest rate of DLA but it is
not currently payable as she is in hospital. No HCC will be made to the HCE in these
circumstances.

F3151 No HCC deduction for certain non-dependants

No HCC deduction will be made for any non-dependant who is a member of the
renter's extended benefit unit where they are (1)
1. under 21
2. in receipt of SPC
3. in receipt of the care component of DLA at the middle or highest rate
4. in receipt of "AA"
5. in receipt of the daily living component of PIP
6. entitled to at least one of the benefits at 2. to 4. above but are not receiving it
under prescribed legislation because they are in hospital (2)
7. in receipt of CA
8. a prisoner
9. responsible for a child under 5
10. a person who is a member of the armed forces away on operations who
10.1 is the child or step child of the renter or joint renter and
10.2 lived with the renter, or joint renters immediately before leaving to go on
operations and
10.3 intends to return to live with the renter or joint renters at the end of the
operations.
1 UC Regs, Sch 4, para 16(2)
2 DLA Reg 8; AA Reg 6; Gen Ben Reg 21; WR Act 12, s 86

[F3152-F3159]

HCE calculations involving two homes

F3160 Renter treated as occupying single home « F3204

Where a renter occupies two homes but is treated as occupying a single home as in
ADM Chapter F2 the renter's HCE will be determined by a single calculation for both
homes (1). The calculation will include
1. all relevant payments for both homes and
2. the total number of bedrooms in both homes added together.

1 UC Regs, Sch 4, para 17(1) & (2)

F3161 « F3162 « F3204

Where
1. the renter's liability for both homes is to a provider of social housing and
2. neither of the homes are temporary accommodation within the meaning of

F3181 « F3138 « F3180 « F3180

the rooms of both houses will be counted up and compared to the household needs
and a single calculation of the HCE will be made with reference to paragraphs F3250
et seq (1).

1 UC Regs, Sch 4, para 17(3)

F3162

Where F3161 doesn't apply the HCE calculation will be made with reference to
paragraphs F3180 et seq (1).
Note: The LHA rate cannot exceed the 4 bedroom rate.
1 UC Regs, Sch 4, para 17(4)

[F3163-F3169]

F3170 Move to new home delayed for adaptations for disabled person « F3171

Where the occupation condition for two homes at in ADM Chapter F2 is met, the
amount of the renter's HCE is determined by (1)
1. calculating an amount for each home in accordance with F3180 et seq or

F3250 « F3004 « F3181 « F3172 « F3241

et seq and
2. adding those figures together.

1 UC Regs, Sch 4, para 18(1)

F3171

If a HCC was deducted for both homes, the amount of the deduction for the new
home shall be added to the figure produced at F3170 2..
1 UC Regs, Sch 4, para 18(2)

F3172 Renter moves out of home because of reasonable fear of violence « F3173

Where the occupation condition for two homes at in ADM Chapter F2 is met, the
amount of the renter's HCE is determined by (1)
1. calculating an amount for each home in accordance with F3180 et seq or F3250et seq and
2. adding those figures together.

1 UC Regs, Sch 4, para 18(1)

F3173

If a HCC was deducted for both homes, the DM must
1. decide which home the claimant normally occupies as their home and
2. add the amount of HCC for the other home to the figure produced at F3172 2..

[F3174-F3179]

F3180 Rent and other payments in the private sector and in temporary accommodation « F3003 « F3162 « F3170 « F3172

F3181 et seq give guidance on the calculation of the HCE for those renting in the
private sector and those occupying temporary accommodation.
F3181 Temporary accommodation For the purposes of this chapter temporary accommodation is accommodation
where (1)
1. rent payments are payable to a LA (2), or a provider of social housing other than
a LA (3)
2. the LA, or provider of social housing under arrangements made with it by a
LA, makes the accommodation available to the renter
2.1 to discharge any of the LA's functions under relevant legislation (4) or
2.2 to prevent the claimant being or becoming homeless within the
meaning of prescribed legislation (5) and
3. the accommodation is not exempt accommodation (5).
1 UC Regs, Sch 4, para 21(1); 2 para 21(2); 3 para 21(3); 4 Housing Act 1985, Part 3;
Housing Act 1996, Part 7; Housing (Scotland) Act 1987, part 2;
5 Housing Act 1996, Part 7; Housing (Scotland) Act 1987, part 2

F3182 The calculation of HCE in the private sector and temporary accommodation « F3183

Work out
the renter's core rent (see F3190 et seq) and the renter's cap rent (see F3202 et seq), compare them and take the lower amount (if both amounts are the
same take that amount).

1 UC Regs, Sch 4, para 22, step 1

F3183 « F3184

Having arrived at an amount under F3182 any HCCs are deducted from it (1).

1 UC Regs, Sch 4, para 22, step 2

F3184

The amount of the renter's HCE is the amount resulting from F3183.
1 UC Regs, Sch 4, para 22, step 2

[F3185-F3189]

F3190 Core rent « F3182 « F3191 « F3192 « F3208

Except where F3193 et seq applies the core rent is determined by (1)
1. finding the amount of each relevant payment under F3071 et seq (2) then
2. finding
2.1 the period in respect of which the payment is payable and
2.2 the amount of the payment in respect of a calendar month in
accordance with F3080 et seq (3).

1 UC Regs, Sch 4, para 23; 2 para 23 Step 1; 3 Step 2

F3191

Where there is more than one relevant payment the amounts found after applying F31902. to each of them should be added together for each relevant payment.

1 UC Regs, Sch 4, para 23, Step 3

F3192

The result of the calculations at F3190-191 is the renter's core rent (1).
1 UC Regs, Sch 4, para 23

Example 1

Hazel rents a two bedroom flat from a private landlord. Her rent is £550.00 a month.
She does not have any service charges to pay. Her core rent is therefore £550.00 a
month.

Example 2

Charlie rents a two bedroom flat from her LA. Her rent is £500.00 a month. She also
pays for eligible service charges of £70.00 a month. Her core rent is £570.00.

F3193 Core rent for joint tenants « F3190

Where one or more people other than the renter are liable to make the relevant
payments for the same home the calculation at F3194 et seq will be made to find the
renter's core rent (1).

1 UC Regs, Sch 4, para 24(1) & (2)

F3194 « F3193

The core rent for joint tenants is determined by firstly (1)
1. finding the amount of each relevant payment under F3071 et seq then
2. finding
2.1 the period which the payment is payable and
2.2 the amount of the payment in respect of a calendar month in
accordance with F3080 et seq then
3. adding all the amounts from the calculation at F3194 together
The core rent will then be determined by whichever of the circumstances in F3195 et
seq apply to them.

1 UC Regs, Sch 4, para 24(2)

F3195 « F3194 « F3196

Where the only people liable to make relevant payments are listed persons the
renter's core rent is the aggregate of the calculation at F3195 (1).

1 UC Regs, Sch 4, para 24(3)

F3196 « F3197

Where listed persons and one or more other people are liable to make relevant
payments the result of the calculation below will be the renter's core rent (1)
A
( )xC
B where
A
is the aggregate of the calculation at F3195
B
is the total number of people who are liable to make payments
C
is the number of listed persons liable to make relevant payments.
1 UC Regs, Sch 4, para 24(4)

Example 1

Dave and Joanne live together in a two bedroom flat. They are unrelated and share
the flat to keep their outgoings down. They are both liable for the rent which is £525
a month.
£525 / 2 = £262.50
£262.50 / 1 = £262.50
Dave's core rent for the HCE of UC is £262.50
Dave's partner moves in as they are now a couple and he includes her in his claim
for UC. His partner is also liable for rent. The rent is still £525 a month.
£525 / 3 = £175.00
£175 x 2 = £350.00
Dave's core rent is now £350.00.

F3197

In cases where it would be unreasonable to allocate the aggregate amount in
accordance with F3196 that aggregate amount will be allocated appropriately having
regard to
1. the number of people liable and
2. the proportion of relevant payments each person is liable for (1).
1 UC Regs, Sch 4, para 24(5)

Example

Warren and Jason are brothers and are joint tenants of a three bedroom property
with a monthly rent of £725.00. Warren also has his daughter living with him. The
DM divides the rent between the number of tenants on the agreement given them
both £362.50 core rent. Warren asks for this to be looked at again as he actually
pays two thirds of the rent. The DM considers this to be a reasonable arrangement
and revises the original decision to make Warren's core rent £483.34.

[F3198-F3200]

F3201 Cap rent

F3202 et seq give guidance on determining a renter's cap rent.

F3202 « F3182 « F3201 « F3203

It is necessary to determine what type of accommodation the renter is entitled to with
reference to F3110 et seq and F3211 - F3238 (1). The renter's cap rent is the
maximum amount allowable as set out in F3203 (2).

1 UC Regs, Sch 4, para 25(1), Step 1; 2 Step 2

F3203 « F3202

The maximum amount allowable to the renter is the local housing allowance which
applies at the relevant time to (1)
1. the broad rental market area in which the renter's accommodation is situated
and
2. the type of accommodation the renter is entitled to in F3202.
1 UC Regs, Sch 4, para 25(2)

Example 1

Caroline lives in Basingstoke with her two children in a three bedroom house. Both
her children are under ten years old so she is only entitled to 1 extra bedroom for
them both. Although the LHA for a three bedroom house in Basingstoke at the
relevant time is £800.02 her maximum allowable amount is restricted to £694.98,
which is the 2 bedroom LHA rate.

Example 2

Paul lives in Newbury with his 5 children, two of whom are adults, the calculation at F3111et seq would give 5 bedrooms. However his LHA rate is restricted to the 4
bedroom rate of £1,094.99. This is therefore his maximum allowable amount.
Note: LHA rates are illustrative only, and in reality will vary over time and will not be
the same for different areas.

F3204 « F3205

Where
1. the renter is housed in two homes but treated as occupying a single home as
in ADM Chapter F2 and
2. a single calculation is to be made as set out in F3161 and
3. there is a difference in the maximum amount allowable when calculated for
each home
the maximum amount allowable for the calculation at F3160 is as set out in F3205 (1).

1 UC Regs, Sch 4, para 25(3)

F3205 « F3204

The maximum amount allowable for F3204 (1) is to
1. be determined by reference to the home for which the amount is lower when
the calculation is first made and
2. continue to be determined with reference to that home so long as the renter is
housed in those two homes as in ADM Chapter F2 and
3. be re-determined with reference to 1. and 2. above on each occasion the
renter is re-housed when ADM Chapter F2 still applies.
1 UC Regs, Sch 4, para 25(4)

Example

Justine is liable to pay rent for two flats. She has 5 children. She stays in the two
bedroom flat with her youngest 2 children and her husband stays overnight at the
other flat with the other 3 children. She is entitled to 4 bedrooms. The first flat is in
Outer London and the 4 bedroom LHA rate at the relevant time is £1,300.00 a
month. The other flat is in Inner London and the 4 bedroom LHA rate at the relevant
time is £1,698.67. The maximum amount allowable is therefore £1,300.00 this being
the lower of the two.

F3206 Meaning of broad market rental area

Broad rental market area means (1) the broad market area determined under
prescribed legislation (2).
1 UC Regs, Sch 4, para 25(5); 2 Rent Officers (UC Functions) Order 2013

F3207 Meaning of local housing allowance

Local housing allowance, in relation to a broad market area, means (1) the amount
determined by a rent officer for that area, under prescribed legislation (2).
1 UC Regs, Sch 4, para 2(5); 2 Rent Officers (UC Functions) Order 2013

F3208 Meaning of relevant time

Relevant time means (1) the time the renter's HCE is calculated in F3190 et seq.
1 UC Regs, Sch 4, para 25(5)

[F3209-F3210]

Further size criteria that apply in the private rented sector

F3211 Four bedroom limit « F3113 « F3138 « F3202

When calculating a renter's HCE in F3111 - F3132 no renter is entitled to more than
4 bedrooms (1).
1 UC Regs, Sch 4, para 26

F3212 Entitlement to shared accommodation only

Any renter who is a specified renter within F3213 is only entitled to the rate relating
to shared accommodation (1).
1 UC Regs, Sch 4, para 27

F3213 Specified renter « F3212

A specified renter is a renter who (1)
1. is a single person (or member of a couple claiming as a single person)2
1.1
under 35 years old and
1.2
not an excepted person under F3231 and
2. is not responsible for any child or qualifying young person (3) and
3. does not have any non-dependants (4).
1 UC Regs, Sch 4, para 28(1); 2 para 28(2); 3 para 28(3); 4 para 28(4)

[F3214-F3230]

F3231 Exception to the shared accommodation rule « F3213 « F3232 « F3233 « F3234 « F3235 « F3236 « F3237 « F3238 « F3239

An excepted person (1) is any renter who satisfies any of the conditions set out in

F3232

et seq.

1 UC Regs, Sch 4, para 29(1)

F3232 For the purpose of F3231 a condition is that in England and Wales the renter is aged
at least 18 but under 22 years old (1) and
1. was previously provided with accommodation under prescribed legislation for
certain children (2) and
2. was living in that accommodation on their 16th birthday.

1 UC Regs, Sch 4, para 29(2); 2 Children Act 1989, s 20

F3233

For the purpose of F3231 a condition is that in Scotland the renter is aged at least 18
but under 22 years old (1) and
1. was previously provided with accommodation by a LA under prescribed
legislation (2) and
2. was living in that accommodation on their 16th birthday.

1 UC Regs, Sch 4, para 29(3); 2 Children (Scotland) Act 1995, s 25

F3234

For the purpose of F3231 a condition is that, the renter is between 25 and 35 years
old (1) and
1. has lived for a total of 3 months (whether or not continuously) in one or more
hostels for homeless people and
2. while they were living in a hostel they were offered and they accepted support
services to assist them to be rehabilitated or resettled in the community.
Note: See F3240 and F3241 for definitions of hostel and hostels for homeless
people.

1 UC Regs, Sch 4, para 29(4)

F3235

For the purpose of F3231 a condition is that, the renter is under 35 and in receipt of
1. the care component of DLA at the middle or highest rate
2. "AA"
or
3. the daily living component of PIP.

1 UC Regs, Sch 4, para 29(5)

F3236

For the purpose of F3231 a condition is that, in England and Wales (1), the renter is
1. under 35 years old and
2. the subject of active multi-agency risk management arrangements established
by a responsible authority under prescribed legislation for assessing and
managing risks posed by certain offenders (2).

1 UC Regs, Sch 4, para 29(6); 2 The Criminal Justice Act 2003, s 325(2)

F3237

For the purpose of F3231 a condition is that, in Scotland (1) the renter is
1. under 35 years old and
2. is the subject of active multi-agency risk management established under
prescribed legislation (2) for assessing and managing risks posed by certain
offenders.

1 UC Regs, Sch 4, para 29(7); 2 The Management of Offenders etc. (Scotland) Act 2005, s 10(1)

F3238 « F3202

For the purpose of F3231 a condition is that, in Scotland (1)
1. the renter is under 35 and
2. prescribed legislation (2) does not apply to the renter only because the relevant
section of that legislation (3) has not fully been brought into force and
3. the renter is considered by the Secretary of State to be a person who may
cause serious harm to the public .
1 UC Regs, Sch 4, para 29(8); 2 The Management of Offenders etc. (Scotland) Act 2005, s 10(1);

3 s 10(1)(b) & (d)

F3239

For the purpose of F3231 a condition is that, in Scotland (1)
1. the renter is under 35 and
2. prescribed legislation (2) does not apply to the renter only because the relevant
section of that legislation (3) has not fully been brought into force and
3. the renter has been convicted and is considered by the Secretary of State to
be a person who may cause serious harm to the public.
1 UC Regs, Sch 4, para 29(9); 2 The Management of Offenders etc. (Scotland) Act 2005, s 10(1);
3 s 10(1)(e)

F3240 Meaning of hostel « F3234

A hostel means a building (1)
1. in which there is provided, for people generally or for a class of people
1.1 domestic accommodation which is not in separate and self-contained
premises and
1.2 either board or facilities for preparing food adequate to the needs of
those people, or both board and facilities and
2. that is
2.1 managed or owned by a provider of social housing other than a LA or
2.2 operated other than on a commercial basis and in respect of which
funds are provided wholly or in part by a government agency or
department or a LA or
2.3 managed by a voluntary organisation or registered charity and provides
care, support or supervision with a view to helping the residents
become rehabilitated or resettled within the community and
3. is not a care home.
1 UC Regs, Sch 4, para 29(10)

F3241 Meaning of hostel for homeless people « F3234

A hostel for homeless people is a hostel the main purpose of which is to provide
1. accommodation and
2. care, support or supervision
for homeless people with a view to assisting people to be rehabilitated or resettled in
the community.
1 UC Regs, Sch 4, para 29(10)

[F3242-F3249]

F3250 Rent and other payments in the social rented sector F3251 et seq
1. give guidance relating to renters who are liable to pay rent to a provider of
social housing (1)
2. do not apply to any renter in temporary accommodation (2)
3. apply whether or not the renter is also liable to pay service charges (3).
1 UC Regs, Sch 4, para 30(1)(a); 2 para 30(1)(b); 3 para 30(2)
Reduction in certain cases of amounts to be taken into account

F3251 Deduction from relevant payments of amounts relating to particular accommodation « F3241

A deduction will be made from any relevant payment (1) under F3071 for any amount
that the DM is satisfied
1. is included in the relevant payment but
2. relates to the supply of a commodity, such as water charges or fuel costs, to
the accommodation for use by any member of the renter's extended benefit
unit.
1 UC Regs, Sch 4, para 31

F3252 Power to apply to a rent officer if a relevant payment appears excessive « F3262

Where it appears that any relevant payment is greater than is reasonable to be met
by way of the HCE (1) an application can be made to a rent officer to determine what is
reasonable. The rent officer will use his statutory functions (3) to determine the amount
of the relevant payment.

1 UC Regs, Sch 4, para 32(1); 2 para 32(2); 3 Housing Act

F3253

Factors to be taken account include consideration of whether the rent and or service
charge is unreasonably high compared to the area and what would be paid in the
private sector, but also having regard to any special circumstances the claimant may
have.

Example 1

Frances' rent for her social sector 1 bedroom flat is £600.00 a month. The LHA in
her area for a similar property is £500.00 a month. A referral is made to the rent
officer as it is considered unreasonable high.

Example 2

Andy lives in a 2 bedroom property. The property includes adaptation to enable him
to live there. This includes a stair lift and a modified bathroom. His rent is £700 a
month. The LHA rate for 2 bedroom properties is £550.00 a month. A referral is not
made to the rent officer as it is considered reasonable that the rent is higher as it
includes payment for the modifications. F3253 Where a rent officer determines that the amount of a relevant payment should be a
lower amount, the lower amount will be used when calculating the HCE unless the
DM is satisfied that it is not appropriate to use the lower amount (1).
1 UC Regs, Sch 4, para 32(3) & (4)

[F3254-F3260]

The calculation of the HCE in the social rented sector

F3261 The amount of HCE « F3262 « F3263

The amount of the renter's HCE is calculated with the formula (1)
S - HCC
Where
1. S is the amount from whichever of F3262 or F3263 et seq applies to the renter
2. HCC is the sum of the housing costs contributions in F3140.
1 UC Regs, Sch 4, para 33

F3262 Determining the amount from which HCC deductions can be made « F3261 « F3271

Unless F3263 applies the amount of S in F3261 is found by (1)
1. establishing which relevant payments are to be taken into account (F3071 and F3252et seq) then
2. calculating the calendar monthly amount of each relevant payment (F3080 et
seq) then
3. adding all relevant payments together if there is more than one relevant
payment then
4. deducting any under occupation deduction (F3270).
1 UC Regs, Sch 4, para 34

F3263 Determining the amount from which HCC deductions can be made for joint tenants « F3261 « F3262 « F3265 « F3266 « F3267 « F3271

Where a renter occupies a home with one or more people who are also liable to
make the same payments as the renter the amount S for F3261 is found by (1)
1. establishing all the relevant payments that the renter and others are liable to
make and which are to be taken into account then
2. calculating the calendar monthly amount of each relevant payment (F3080 et
seq) then
3. adding all relevant payments together from 2. if there is more than one
relevant payment.
The amount S will then be found by whichever of paragraphs F3265 - F3267 applies
to the renter.

1 UC Regs, Sch 4, para 35(1) & (2)

F3265 « F3263

Where the only people liable to make the relevant payments are listed persons the
amount S is the result of F3263 3., less any under occupation deduction (1). No under
occupancy deduction will be made if there is a social rental sector joint tenancy, and
there are joint tenants who are not listed persons.

1 UC Regs, Sch 4, para 35(3)

F3266 « F3267

If the people liable for the relevant payments are one or more listed persons and one
or more other people S is found by the following formula (1)
A
(
)xC
B
Where
A is the result of F3263 3.
B is the total number of people liable to make relevant payments
C is the number of listed persons liable to make relevant payments.
1 UC Regs, Sch 4, para 35(4)

Example

Clare, her husband Tony and Tony's brother and sister live together in a two
bedroom flat. Clare, Tony and Tony's brother are liable for the relevant payments of
£800.00. The £800 is divided by 3, the number of people liable to make payments.
That figure is times by 2, the number of listed persons, giving £533.34 for S.

F3267 « F3263

In cases where F3266 would apply and the DM is satisfied that it would be
unreasonable to determine the amount S in accordance with that paragraph, the
amount in F3263 3. will be apportioned appropriately having regard, amongst other
things, to
1. the number of people liable and
2. the proportion of relevant payments each person is liable for (1).
1 UC Regs, Sch 4, para 35(5)

Example 1

David, his partner Anna and their 6 year old daughter live in a three bedroom house
with Anna's brother Bob. The monthly rent for the property is £750.00. David, Anna
and Anna's brother are liable to make the payments. The rent of £750.00 is divided
by 3, the number of people liable to make payments. That figure is then multiplied by
the number of listed people which is 2 (ie David and Anna) giving £500.00. David
and Anna make representations that in fact Bob is liable to pay a half of the rent.
The DM considers this to be a reasonable arrangement and uses a figure of £375.00
for David and Anna's rent.

Example 2

Jason; his partner Joanne; their 17 year old daughter (for whom they are responsible
and who is in Jason and Joanne's UC Benefit Unit) and Dave live together in a three
bedroom property. All are liable to make payments. The rent is £750which is divided
by the number of people liable, which is 4.This figure is then multiplied by the
number of listed people, which is 3 giving a total of £562.50. Dave is liable for a third
of the rent. The DM considers this to be reasonable and uses a figure of £500.00 for
Jason and Joanne's rent.

[F3268-F3269]

F3270 Under occupancy deduction

A deduction for under occupancy will be made where the number of bedrooms the
home has exceeds the number of bedrooms the renter is entitled to (1)under F3110F3113and F3131 - F3136.

1 UC Regs, Sch 4, para 36(1)

F3271

The amount of the deduction is given by the formula (1)
A x B
Where
1. A is
1.1 in relation to any deduction in F3262 is the result of 2. or 3. of that
paragraph or
1.2 in relation to any deduction in F3263 is the result of 3. of that paragraph
and
2. B is the relevant percentage.

1 UC Regs, Sch 4, para 36(2)

F3272

If the excess is one bedroom the relevant percentage is 14%1.
1 UC Regs, Sch 4, para 36(3)

Example

John lives alone in a two bedroom flat. He is entitled to one bedroom. The rent for
his flat is £500.00 a calendar month. A 14% deduction is made to the rent he pays
leaving a HCE of £430.00 to be included in his award of UC.

F3273

If the excess is 2 or more bedrooms the relevant percentage is 25%1.
1 UC Regs, Sch 4, para 36(4)

Example

Janice lived with her two children in a three bedroom semi detached. The rent for the
house is £600.00 a calendar month. Her two children moved out and Janice remains
in the property. Janice is entitled to one bedroom. A 25% deduction is made to the
rent she pays leaving a HCE of £450.00 to be included in her award of UC.

F3274

No under occupancy deduction will be made where the claimant's home is a shared
ownership tenancy as in ADM Chapter F21.
1 UC Regs, Sch 4, para 36(5)