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Chapter K9: Amount of reduction

Contents
K9001:Introduction
K9002:Amount of the reduction for each assessment period
K9006:Daily reduction rate
K9007:40% reduction applies
K9008:Nil reduction applies
K9009:Joint-claim couples
UC Daily Reduction Rates - 2013/14 ............................................... Appendix 1

Chapter K9: Amount of reduction

K9001 Introduction

This chapter provides guidance on the
1. amount of reduction for each assessment period and
2. daily reduction rate.
Amount of the reduction for each assessment period

K9002

Where it is determined that an award of UC is to be reduced because of a
sanctionable failure, the amount of the reduction for each assessment period in
respect of which a reduction has effect is calculated as follows (1)
1. take the number of days in
1.1 the assessment period or
1.2 if lower, in the total outstanding reduction period (see ADM Chapter K1
for guidance on the total outstanding reduction period)
deducting any days in that assessment period for which the reduction is
suspended (for detailed guidance on the suspension of a reduction period see
Chapter K8 - When reduction is to have effect)
2. multiply the number of days at 1. by the daily reduction rate (see K9006 -
K9011)
3. if necessary, adjust the amount at 2. so that it does not exceed
3.1 the amount of the standard allowance applicable to the award or
3.2 half the amount of that standard allowance in the case of a joint-claim
where a determination to reduce the award applies only to one claimant
and
4. deduct the amount produced from 2. and 3. from the amount of the award for
the assessment period after any deduction has been made in accordance with
the benefit cap.
Note:
For detailed guidance on standard allowance see ADM Chapter E2 (Awards,
benefit unit and maximum amounts) and ADM Chapter E5 (Benefit cap) for detailed
guidance on benefit cap.
1 UC Regs, reg 110

[K9003-K9005]

K9006 Daily reduction rate K9002 K9007 K9009

Unless K9007 or K9008 applies, the daily reduction rate is :
1.
an amount equal to the amount of the standard allowance that is applicable to
the award :
2.
multiplied by 12 and
3. divided by 3651. See Appendix 1 for the daily reduction amounts for the year 2013/2014. Note: The daily amount calculated is rounded down to the nearest 10 pence (2). 1 UC Regs, reg 111 (1); 2 reg 111(4)

Example 1

Brad is awarded UC from 13.3.14. His assessment period begins on the 13th of
each month. On 26.3.14 the DM determines that Brad had no good reason for not
complying with a work search requirement, and a 28 day reduction of UC is
imposed.
The daily rate of reduction is 10.20 (see Appendix 1).
The first assessment period a reduction can be imposed is from 13.3.14.
The amount of the reduction is calculated as the total outstanding reduction period of
28 days X 10.20 (the daily reduction rate) = 285.60.

Example 2

On 29.4.14 Jamilla is sacked from her job due to misconduct. She claims UC on
30.4.14. On 19.5.14 the DM determines that Jamilla lost her job due to misconduct
and imposes a reduction of 91 days for a first higher level failure.
Jamilla's assessment period begins on the 30th of each month. She is 23 years old.
The first assessment period a reduction can be imposed is from 30.4.14.
The daily rate of reduction is 8.10 (see Appendix 1).
The amount of the reduction is calculated as the number of days in the assessment
period of 30 days x 8.10 (the daily reduction rate) = 243 reduction for the
assessment period commencing on 30.4.14.
For the next assessment period commencing on 30.5.14 the amount of the reduction
is calculated as the number of days in the assessment period of 31 days x 8.10
(the daily reduction rate) = 251.10.
For the next assessment period commencing on 30.6.14 the amount of the reduction
is calculated as the number of days in the assessment period of 30 days (which in
this case is also the total outstanding reduction period) x 8.10 (the daily reduction
rate) = 243.
There will be no reduction in the following assessment period commencing on
30.7.14 as the full 91 days of the sanction has been served.

Example 3

Justin is aged 27 years, single and claims UC. His assessment period begins on the
14th of each month.
On 6.11.14 the DM determines that Justin has failed without good reason to comply
with a specified action as part of a work search requirement. Justin has no previous
low level sanctionable failures, so the DM imposes a sanction of 6 days for the
period of non-compliance and a further 7 days (fixed period) following compliance.
Justin already has a higher level sanction imposed on his UC award of 91days which
still has 30 days outstanding. Therefore, the new total outstanding reduction period
is 43 days as all sanctions run consecutively.
The daily reduction rate is 10.20 (see Appendix 1).
The amount of reduction is calculated as the number of days in the assessment
period of 30 days x 10.20 (the daily reduction rate) = 306 for the assessment
period beginning on 14.11.14.
For the assessment period commencing on 14.12.14 the amount of reduction is
calculated as the total outstanding reduction period of 13 days (i.e. the balance of
days that remain to be served) x 10.20 = 132.60.

Example 4

Mary has a 182 day reduction period imposed on her UC from 6.1.15. Her
assessment period begins on the 6th of each month. On 15.4.15 a fraud penalty of
26 weeks is imposed on her claim to UC. The reduction period is suspended from
15.4.15 - 13.10.15. An 83 day reduction period will be imposed, which is the balance
of the reduction period still to be served, from 14.10.15, the day after the fraud
penalty ends.
The daily reduction rate is 10.20 (see Appendix 1).
When calculating the reduction period for the assessment period starting on 6.10.15,
the number of days in the assessment period is 31 days minus 8 days for which the
reduction is suspended because of a fraud penalty = 23 days x 10.20 ( the daily
reduction rate) = 234.60.
For the following assessment period commencing on 6.11.15, the amount of the
reduction will be the number of days in the assessment period of 30 days x 10.20
(the daily reduction rate) = 306.
For the following assessment period commencing on 6.12.15, the amount of the
reduction will be the total outstanding reduction period of 30 days (as this is lower
than the number of days in the assessment period, i.e. 31 days) = 30 days x 10.20
(the daily reduction rate) = 306.

K9007 40% reduction applies K9006

The daily reduction rate is 40% of the rate set out in K9006 if at the end of the
assessment period the claimant is
1. aged 16 or 171 or
2. subject to no work-related requirements because they are
2.1
a responsible carer for a child under the age of 1 or
2.2
an adopter or responsible foster parent of a child under the age of 1 or
2.3
within 11 weeks before or 15 weeks after confinement (2) or
3. subject to WFI's only (3) (i.e. they are subject to a lowest level sanction).
See Appendix 1 for the daily reduction amounts for the year 2013/2014.
Note 1: The daily amount calculated is rounded down to the nearest 10 pence (4).
Note
2: For detailed guidance on work-related requirements see Chapter J3 (Work
related requirements) and for WFI's see Chapter K6 (Lowest level sanctions).
1 UC Regs, reg 111(2)(a); 2 reg 111 (2)(b) ; 3 reg 111 (2)(c) ; 4 reg 111 (4)

Example

Maisie is entitled to UC, and is aged 17. On 16.7.14 Maisie fails to apply for a job
vacancy and on 13.8.14 the DM determines it is a failure without good reason and a
14 day reduction to her UC is imposed as this is Maisie's first higher level
sanctionable failure.
Maisie's assessment period runs from the 6th of each month. The daily reduction
rate will be 3.20 (see Appendix 1).
The amount of the reduction to be deducted for the assessment period from 6.8.14
is calculated as the total outstanding reduction period of 14 days x 3.20 (the daily
reduction rate) = 44.80.

K9008 Nil reduction applies K9006 K9009

The daily reduction rate is nil if at the end of the assessment period the claimant is
subject to no work-related requirements because they have LCW and LCWRA (1).
Note 1: This does not apply where the claimant just has LCW. A claimant has to
have both LCW and LCWRA in order for a nil reduction to apply.
Note
2: For detailed guidance on work -related requirements see Chapter J3
(Work-related requirements) and Chapter K6 (Lowest level sanctions) for guidance
on lowest level sanctions.
1 UC Regs, reg 111 (3)

K9009 Joint-claim couples

In the case of joint-claim couples :
1.
each joint claimant is considered individually for the purposes of determining
the daily reduction rate as per K9006 - K9008 and
2. half of any applicable rate is applied to each joint claimant accordingly (1).
See Appendix 1 for the daily reduction amounts for the year 2013/2014.
Note: The daily amount calculated is rounded down to the nearest 10 pence.
1 UC Regs, reg 111 (5); 2 reg 111 (4)

Example 1

Carlo lives with his partner Camilla and they are entitled to UC as a joint-claim
couple. Both are aged over 25 years.
Camilla has LCW and is in the work preparation group. On 6.10.14 Camilla has a
low-level sanction imposed for a failure to attend a WFI on 16.9.14. On 22.9.14 she
complied with the requirement to attend a WFI. A sanction is imposed for 6 days non
- compliance plus a fixed period sanction of 14 days as this is Camilla's 2nd low level
sanctionable failure. The total outstanding reduction period is 20 days.
The UC assessment period starts on the 20th of each month.
The daily reduction rate is 8.00 (see Appendix 1).
The amount of the reduction to be deducted for the assessment period from 20.9.14
is calculated as the total outstanding reduction period of 20 days x 8 (the daily
reduction rate) = 160.

Example 2

Sasha lives with her partner Duncan and they claim UC as a joint-claim couple.
Duncan is aged 24 and Sasha is aged 22. The UC assessment period starts on the
6th of each month.
A sanction is already imposed on the award of UC for a higher level failure. Duncan
failed without good reason to apply for a job vacancy and a reduction period of 91
days was imposed from 6.8.13 - 4.11.13.
On 17.9.13 Sasha fails to participate in an interview as required and re-complies on
20.9.13. The DM decides Sasha had no good reason for the failure and imposes an
11 day reduction period (i.e. 4 days of non-compliance + a fixed period sanction of 7
days for a first lower level failure).
The amount of the reduction to be deducted for the assessment period on the joint-
claim from 6.9.13 is calculated as follows:
the daily reduction rate where both members of the joint-claim couple aged 18 - 24
are sanctioned is 6.30 each (see Appendix 1)
the total outstanding reduction period of 11 days in respect of Sasha is 11days X
6.30 = 69.30
the number of days in the assessment period in respect of Duncan is 30 days x
6.30 = 189
total reduction = 258.30.
Appendix 1.
UC Daily Reduction Rates - 2013/14
Type of claimant/sanction
Formula
Daily reduction amount
(rounded down to nearest 10p)
High, medium or low level sanctions apply - claimants aged 18 and over
Single claimant over 25
[Standard Allowance x 12] \ 365
10.20
311.55
10.24
Single claimant between 18 -24
Standard Allowance x 12] \ 365
8.10
246.81
8.11
Joint claimants where one or
For both claimants - [Standard
8.00 for each claimant
both are 25 or over and both are
Allowance \ 2 x 12] \ 365 sanctioned
8.04
489.06 Joint claimants where one or
[Standard Allowance \ 2 x 12] \
8.00 for one claimant
both are 25 or over and one is
365 sanctioned
8.04
489.06 Joint claimants where both are
For both claimants - [Standard
6.30 for each claimant
18 -24 and both are sanctioned
Allowance \ 2 x 12] \ 365
387.42
6.37
Joint claimants where both are
[Standard Allowance \ 2 x 12] \
6.30 for one claimant
18 -24 and one is sanctioned
365
387.42
6.37
Lowest level sanction applies
Single claimant over 25
[Standard Allowance x 12] \ 365
4.00
311.55
[ x 0.40]
4.09
Single claimant between 18 - 24
[Standard Allowance x 12] \ 365
3.20
246.81
[ x 0.40]
3.25
Joint claimants where both are
Standard Allowance \ 2 x 12] \
2.50 for each claimant
18-24 and both are sanctioned
365 [ x 0.40]
387.42
2.55
Joint claimants where both are
Standard Allowance \ 2 x 12] \
2.50 for one claimant
18-24 and one is sanctioned
365 [ x 0.40]
387.42
2.55
Joint claimants where either is
Standard Allowance \ 2 x 12] \
3.20 for each claimant
over 25 and both are
365 [ x 0.40 sanctioned
3.22
489.06 Joint claimants where either is
Standard Allowance \ 2 x 12] \
3.20 for one claimant
over 25 and one is sanctioned
365 [ x 0.40
489.06
3.22
16/17 year olds
Single claimant - 16/17 year old
[Standard Allowance x 12] \ 365
3.20
246.81
[ x 0.40]
3.25
Joint claimants where both are
[Standard Allowance \ 2 x 12] \
2.50 for each claimant
sanctioned - 387.42
365 [ x 0.40]
2.55
Joint claimants where one is
[Standard Allowance \ 2 x12] \
2.50 for one claimant
sanctioned - 387.42
365 [x 0.40]
2.55