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Chapter M2: Pathfinder Group - Effects of transition to UC

Contents
M2001:Scope of Chapter
M2005:Exclusion of entitlement to specified benefits
M2010:Claims for IS, HB, CTC & WTC
M2013:Date of claim
M2016:IS
M2030:HB
M2035:CTC and WTC
M2060:Termination of awards of existing benefits
M2065:Treated as claiming and entitled to a TC
Treated as entitled to a TC
M2070:Introduction
M2071:Meaning of tax year
M2072:Meaning of final notice
M2075:When is a person treated as entitled to a TC
M2076:Case 1
M2077:Case 2
M2078:Case 3
M2079:Case 4
M2090:Finalisation of TC
M2100:Ongoing reconsideration and appeals - new claimant partner
M2110:Advance payment of UC
M2112:Single claimant
M2113:Joint claimants
M2120:Income from existing benefits
M2125:Deductions
New claimant partner entitled to ESA
M2130:Introduction
M2131:Meaning of relevant date
M2132:Meaning of new style ESA

New claimant partner entitled to ESA component
M2133:Work-related activity component
M2135:Support component
New claimant partner entitled to ESA - assessment phase has not ended
M2137:Assessment phase less than 13 weeks
M2138:Assessment phase more than 13 weeks

New claimant partner entitled to IS, IB or SDA
M2140:Introduction
M2142:New claimant partner entitled to IS on the grounds of incapacity
M2145:New claimant partner entitled to IB or SDA

New claimant partner entitled to IB or SDA and approaching
M2150:pensionable age
Support for housing costs
M2160:Claimant previously entitled to housing costs
M2161:Claimant not previously entitled to housing costs
Sanctions
M2170:Introduction
M2171:Relevant date
M2175:ESA sanctions
M2177:Period of reduction
M2178:Escalation
M2190:JSA sanctions
M2192:Period of reduction
M2193:Amount of reduction
M2195:Escalation
M2200:UC claimant awarded existing benefit
M2230:Loss of benefit penalties
M2232:Amount of reduction

Chapter M2: Pathfinder Group - Effects of transition to UC

M2001 Scope of Chapter

This Chapter gives guidance on the effect on
1. entitlement to
and
2. claims for
and
3. termination of
awards of existing benefits for people who are entitled to UC, whether as a
Pathfinder or a new claimant partner. See ADM Chapter M1 (Pathfinder Group -
claims for UC) for guidance on the meaning of existing benefits, Pathfinder and new
claimant partner.

M2002

Guidance is also included on other effects of transition to UC for Pathfinders and
new claimant partners, for example where they are entitled to an existing benefit and
deductions or sanctions are in place.

M2003

The guidance in this Chapter and ADM Chapter M1 applies where
1. a claim for UC was made before 16.6.14 and
2. no payment has been made before that date (1).
See ADM Chapter M3 (Gateway conditions - claims for UC from 16.6.14) and ADM
Chapter M4 (Gateway conditions - effects of transition to UC from 16.6.14) for
guidance on claims for UC made on or after 16.6.14.
1 UC (TP) Regs 14, reg 3(2); 2 reg 3(4)

M2004

M2005 Exclusion of entitlement to specified benefits M2006 M2007

A person is not entitled to
1. IS (1) or
2. HB (2) or
3. CTC (3) or
4. WTC (4) or
5. SPC (5)
at any time when they are entitled to UC (6).
Note: This does not apply where HB is paid for exempt accommodation (7). See ADM F2033for the meaning of exempt accommodation.
1 SS CB Act 92, s 124; 2 s 130; 3 TC Act 02, s 1(1)(a);

4 s 1(1)(b); 5 SPC Act 02, s 1; 6 UC (TP) Regs 13, reg 15(1) & (2); 7 reg 15(2A)

M2006 M2007

The guidance at M2005 also applies to old style ESA and JSA (1). See ADM Chapter
M1 (Pathfinder Group - claims for UC) for guidance on the meaning of old style ESA
and JSA. See ADM Chapters V8 and S6 for guidance on when a former UC claimant
may make a claim for old style ESA or JSA.

1 WR Act 12 (Commencement No. 9 etc) Order, art 4

M2007

A person cannot claim UC if they are entitled to any of the benefits listed at M2005 - M2006- see ADM Chapter M1 (Pathfinder Group - claims for UC). Where a new
claimant partner is entitled to any of these benefits, see M2060 et seq for detailed
guidance on the consequences.

[M2008-M2009]

M2010 Claims for IS, HB, CTC & WTC M2011 M2012

A person who is entitled to UC may not make a claim for
1. IS
or
2. HB
or
3. CTC
or
4. WTC (1).
See M2012 for when this applies.

1 UC (TP) Regs 13, reg 15(3)

M2011

The guidance at M2010 also applies to old style ESA and JSA (1). See ADM Chapter
M1 (Pathfinder Group - claims for UC) for guidance on the meaning of old style ESA
and JSA. See ADM Chapters V8 and S6 for guidance on when a former UC claimant
may make a claim for old style ESA or JSA.

1 WR Act 12 (Commencement No. 9 etc) Order, art 4

M2012 M2010 M2013 M2016 M2017 M2018 M2019 M2020 M2030 M2031 M2032 M2033 M2034 M2035 M2036 M2037

The guidance at M2010 applies even if a claim for the benefit is made or treated as
made under specified legislation (1) at a time when the person was not entitled to UC.
1 UC (TP) Regs (13), reg 15(3); SS (C&P) Regs 87, reg 6(1A)(b), (16), (19), (28) or (3);
HB Regs, reg 83(5) or (12); HB (SPC) Regs, reg 64(6); TC (C&N) Regs, reg 7, 8, 11(3) or 12(6)

M2013 Date of claim M2014 M2015 M2072

In order to decide whether M2012 applies, the date on which a claim is made or
treated as made should first be determined in the normal way (1). See DMG Chapter
02 for detailed guidance on the date of claim for IS. See HB guidance for guidance
on the date of the claim for HB. A claim for a TC is made or treated as made on the
date it is received by a relevant authority at an appropriate office, or in accordance
with the normal rules. See TC guidance for further details.

1 UC (TP) Regs 13, reg 15(5); SS (C&P) Regs; HB Regs; HB (SPC) Regs; TC (C&N) Regs

M2014

In M2013, relevant authority means (1)
1. the Board, that is the Commissioners for HMRC or
2. DWP
or
3. the Department for Social Development in Northern Ireland or
4. a person providing TC services to the bodies in 1. - 3..

1 TC (C&N) Regs, reg 2

M2015

In M2013, appropriate office means (1)
1. Comben House, Farriers Way, Netherton, Merseyside or
2. any other office specified in writing by the Board.
1 TC (C&N) Reg, reg 2

M2016 IS

A claim for IS may not be made as in M2012 where
1. a properly completed claim is received, or made by telephone, within one
month of first notification of intention to claim and
2. it is treated as made on the date of the notification of intention to claim (1).
Note: A defective claim is treated as a notification of intention to claim on the date
that it is received (2). See DMG Chapter 02 for detailed guidance.
1 SS (C&P) Regs, reg 6(1A)(b); 2 reg 6(1A)(c)

Example

Laura is a lone parent with a child aged 3. She phones the DWP on 10.7.13 to make
a claim for IS after losing her job. She is unable to answer all the questions over the
phone, and the claim form is sent to her to complete. She returns this on 8.8.13.
In the meantime Laura joins her partner Greg on 27.7.13. Greg has been entitled to
UC since 20.5.13, and his award as a single claimant ends on 19.7.13. Greg and
Laura are entitled to UC as joint claimants from 20.7.13. Laura is not entitled to claim
IS for the period 10-19.7.13, and is notified that no decision will be made on the IS
claim.

M2017

A claim for IS may not be made as in M2012 where the time for claiming is
extended (1) for a period of up to
1. one
month (2) or
2. three
months (3)
in specified circumstances, for example due to disruption of postal services, or
where the claimant was given information which led them to believe that a claim for
IS would not succeed. See DMG Chapter 02 for detailed guidance.
1 SS (C&P) Regs, reg 6(3); 2 reg 19(6) & (7); 3 reg 19(4) & (5)

Example

Holly is a lone parent with a child aged 2, and has learning difficulties. She lives with
her parents. Her job in a sheltered workshop ends on 3.5.13 when it closes. On
26.7.13 Holly joins her partner Marcus, who has been entitled to UC since 24.6.13.
Marcus's award of UC as a single claimant terminates on 23.7.13, and Holly and
Marcus are entitled to UC as joint claimants from 24.7.13.
On 26.7.13 Holly also claims IS for the period from 4.5.13 - 22.7.13. She explains
that due to her learning difficulties she had good cause for not making the claim on
4.5.13. Holly is not entitled to claim IS for the period 4.5.13 - 22.7.13, and is notified
that no decision will be made on the IS claim.

M2018

A claim for IS may not be made as in M2012 where
1. a previous claim for IS has been disallowed because a qualifying benefit has
not been awarded and
2. an award of a qualifying benefit is later made and
3. a further claim for IS is treated as made on
3.1 the date of the original IS claim or
3.2
the date of the award of the qualifying benefit
whichever is later (1).
See DMG Chapter 02 for detailed guidance.

1 SS (C&P) Regs, reg 6(16)-(18)

M2019

A claim for IS may not be made as in M2012 where
1. an award of IS has been terminated and
2. an award of a qualifying benefit is later made and
3. a further claim for IS is treated as made on
3.1 the date the original IS award was terminated or
3.2
the date of the award of the qualifying benefit
whichever is later (1).
See DMG Chapter 02 for detailed guidance.

1 SS (C&P) Regs, reg 6(19)-(21A) & (30)

M2020

A claim for IS may not be made as in M2012 where
1. a claim for WTC is disallowed and
2. a claim for IS is treated as made on
2.1 the date of the WTC claim or
2.2 a later date where requested by the claimant (1).
See DMG Chapter 02 for detailed guidance.
1 SS (C&P) Regs, reg 6(28)

[M2021-M2029]

M2030 HB

A claim for HB may not be made as in M2012 where
1. the claimant or their partner is entitled to IS, JSA(IB), ESA(IR) or SPC and
2. the claim for HB is made within one month of the date of claim for the benefit
in 1. and
3. the HB claim is treated as made on the first day of entitlement to the benefit in
1..
See HB guidance for detailed guidance.

1 HB Regs, 83(5)(a); HB (SPC) Regs, reg 64(6)(a)

M2031

A claim for HB may not be made as in M2012 where
1. the claimant or their partner is entitled to IS, JSA(IB), ESA(IR) or SPC and
2. the claimant or their partner becomes liable for housing payments and
3. a claim for HB is made within one month of the date the liability arose and
4. the HB claim is treated as made on the date the liability arose (1).
See HB guidance for detailed guidance.

1 HB Regs, 83(5)(b); HB (SPC) Regs, reg 64(6)(b)

M2032

A claim for HB may not be made as in M2012 where
1. the claimant is the former partner of a HB claimant who has dies or left the
household and
2. the HB claim is made within one month of the death or separation and
3. the HB claim is treated as made on that date (1).
See HB guidance for detailed guidance.

1 HB Regs, 83(5)(c); HB (SPC) Regs, reg 64(6)(c)

M2033

A claim for HB may not be made as in M2012 where
1. a properly completed claim is received, or made by telephone, within one
month of first notification of intention to claim and
2. it is treated as made on the date of the notification of intention to claim (1).
See HB guidance for detailed guidance.

1 HB Regs, 83(5)(d); HB (SPC) Regs, reg 64(6)(d)

M2034

A claim for HB may not be made as in M2012 where
1. the claimant requests that a claim for HB includes a period before the date of
claim and
2. the claimant had good cause for not making the claim earlier and
3. the HB claim is treated as made on an earlier date (1).
See HB guidance for detailed guidance.
1 HB Regs, 83(12)

M2035 CTC and WTC

Claims for a TC may not be made as in M2012 where the claim is treated as made
up to 31 days before the claim is received (1). See TC guidance for detailed guidance.

1 TC (C&N) Regs, reg 7

M2036

A claim for WTC may not be made as in M2012 where
1. an award of WTC including the disability element is made and
2. the claim in 1. is made within 31 days of the date that a claim for a specified
benefit is allowed and
3. the claimant would have been entitled to WTC for an earlier period and
4. the WTC is treated as made on an earlier date.
See TC guidance for detailed guidance, including the specified benefits required to
make an award of the disability element of WTC.

1 TC (C&N) Regs, reg 8

M2037

A claim for a TC may not be made as in M2012 where
1. the claimant makes or is treated as making a declaration following a final
notice for a current award and
2. the declaration or deemed declaration is treated as a claim for a subsequent
tax year (1).
See TC guidance for detailed guidance.
1 TC (C&N) Regs, reg 11(3) & 12(6)

[M2038-M2059]

M2060 Termination of awards of existing benefits M2007 M2070 M2113 M2120 M2125 M2133 M2135 M2137 M2138 M2142 M2160 M2161 M2171 M2171

Where
1. an award of UC to a single claimant is terminated because they have become
a member of a couple and
2. the other member of the couple was not previously entitled to UC as a single
claimant (i.e. they are a new claimant partner) and
3. the couple are entitled to UC as joint claimants
all awards of an existing benefit made to the new claimant partner, which did not
otherwise terminate when they formed a couple, end on the day before the first date
of UC entitlement as joint claimants (1). See Chapter M1 for guidance on the meaning
of existing benefit.
Note 1: See M2065 et seq for further guidance where the new claimant partner is
treated as having claimed a TC.
Note
2: See M2100 et seq for guidance where the new claimant partner has an
ongoing appeal about an existing benefit.
Note
3: The existing award does not terminate where it is HB paid for exempt
accommodation (2). See ADM F2033 for the meaning of exempt accommodation.
1 UC (TP) Regs 13, reg 16(1) - (3); 2 reg 16(3A)

Example

Wayne is entitled to IS as a lone parent following his partner's death. He is also
entitled to CTC and HB. On 17.11.13 he is joined by his new partner Gwyneth, who
has been entitled to UC as a single claimant since 10.6.13. Wayne and Gwyneth are
entitled to UC as joint claimants from 10.11.13.
Wayne's award of IS is terminated on 16.11.13 as from 17.11.13 he no longer
satisfies any condition of entitlement to IS. His awards of CTC and HB terminate on
9.11.13. Wayne's IS for the period 10-16.11.13 is taken into account as unearned
income.

[M2061-M2064]

M2065 Treated as claiming and entitled to a TC M2060 M2066

Where, immediately before forming a couple with a UC single claimant, the new
claimant partner is treated as entitled to a TC as in M2070 et seq, they are treated
as having made a claim for a TC for the current tax year (1).

1 UC (TP) Regs 13, reg 8 & 16(4)

M2066

Where a claim for a TC is treated as made as in M2065, any award made
terminates on the day before the first day of UC entitlement as joint claimants (1).
1 UC (TP) Regs 13, reg 16(5)

[M2067-M2069]

Treated as entitled to a TC

M2070 Introduction M2065

The guidance at M2075 et seq applies for the purpose of considering whether (1)
1. a person satisfies the conditions for claiming UC as a Pathfinder (2) (see ADM
Chapter M1) and
2. an award of a TC made to a new claimant partner should terminate when they
become entitled to UC as joint claimants (3) (see M2060).
Note:
Decisions relating to TC entitlement for the purposes of the Pathfinder Group
and new claimant partners will continue to be made by HMRC. The following
guidance is for information only.
1 UC (TP) Regs 13, reg 8(1); 2 reg 7(2); 3 reg 16(4)

M2071 Meaning of tax year

Tax year means the period
1. beginning on 6th April in one year and
2. ending on 5th April in the following year (1).
1 TC Act 02, s 48(1); UC (TP) Regs 13, reg 2(1)

M2072 Meaning of final notice M2079

Where a claim for a TC is made, an initial decision is made as to whether an award
should be made (1). If an award is made, the Board (see M2013 1.) notifies the
claimant or claimants that
1. they are required to
1.1 declare that their circumstances are as specified or
1.2
state where their circumstances are not as specified
by a specified date or
2. they are treated as having made a declaration as in 1.1 unless they state
otherwise by a specified date (2).
This is known as a final notice. After the date specified in the final notice, a decision
on entitlement for the tax year for which the award was made is given (3).
1 TC Act 02, s 14; 2 s 17; 3 s 18

[M2073-M2074]

M2075 When is a person treated as entitled to a TC M2070

A person is treated as entitled to a TC from the beginning of the current tax year
even though a decision has not been made on a claim for that year if
1. the person was entitled to a TC for the pervious tax year and
2. any of the cases in M2076 - M2079 apply (1).

1 UC (TP) Regs 13, reg 8(1); TC Act 02, s 14Case 1

M2076 M2075

Case 1 is where a final notice has not been given to the person in respect of the
previous tax year (1).
1 UC (TP) Regs 13, reg 8(2)(a)

M2077 Case 2

Case 2 is where (1) a final notice has been issued and
1. the date or later of the dates specified in the notice has not been reached and
no claim for CTC or WTC has been made or treated as made (2) or
2. a claim for CTC or WTC has been made or treated as made before the date
or later of the dates specified in the notice, but no initial award has been made
on that claim (3).
1 UC (TP) Regs (13), reg 8(2)(b); TC Act 02, s 17(2), (4) & (6); 2 s 17(2) & (4); 3 s 14(1)

M2078 Case 3

Case 3 is where (1)
1. a final notice has been given and
2. no claim for CTC or WTC for the current tax year has been made or treated
as made and
3. no decision on entitlement for the previous tax year has been made (2).
1 UC (TP) Regs 13, reg 8(2)(c); 2 TC Act 02, s 18(1)

M2079 Case 4 M2075

Case 4 is where (1)
1. a final notice has been given and
2. the person did not make a declaration by the specified date (2) as in M2072 1.1
and
3. they were notified that payment of TC had ceased because of the failure (3) and
4. during the period of 30 days starting with the date on the notice in 3. is given
4.1 the claim for UC is made or
4.2 in the case of a new claimant partner, notification of the formation of a
couple is given.
1 UC (TP) Regs 13, reg 8(2)(d); 2 TC Act 02, s 17(2)(a), (4)(a) or (6)(a); 3 s 24(4)

[M2080-M2089]

M2090 Finalisation of TC

Where
1. a claimant is awarded UC and
2. the claimant was previously entitled to a TC and
3. the award of TC is terminated at any time during the tax year in which UC is
awarded (1)
the amount of TC entitlement is calculated in accordance with TC legislation as
modified (2), unless the Board considers that it is not reasonably practical to apply
those modifications (3). The modifications enable HMRC to finalise the award of a TC
before the end of the tax year.
1 UC (TP) Regs 13, reg 17(1); 2 reg 17(2) & Sch; TC Act 02; 3 UC (TP) Regs 13, reg 17(3)

[M2091-M2099]

M2100 Ongoing reconsideration and appeals - new claimant partner M2060 M2101 M2102 M2104

See M2101 - M2104 for the action to take where a new claimant partner who is
awarded UC
1. has an appeal to
1.1 the
FtT
or
1.2 the
UT
or
1.3 a court
in relation to an existing benefit ongoing at the date on which the award of UC
was made (1) or
2. has applied for revision or supersession of a decision about entitlement to
2.1 JSA
or
2.2 ESA
or
2.3 IS
or
2.4 HB
and the application has not been determined as at the date on which the
award of UC was made (2).
Note 1: "The date on which the award of UC was made" is the date of the decision
to award UC.
Note
2: The existing award does not terminate where it is HB paid for exempt
accommodation (3). See ADM F2033 for the meaning of exempt accommodation.

1 UC (TP) Regs 13, reg 18(1); 2 reg 18(2); 3 reg 18(3)

M2101 M2100

Where
1. an appeal or application has been made as in M2100 and
2. the new claimant partner is still entitled to UC when
2.1
the appeal is finally determined or
2.2
the decision is revised or superseded
the consequences in M2102 - M2104 apply.

1 UC (TP) Regs 13, reg 18(3)

M2102 M2101

Entitlement to any existing benefit which arises as a result of the outcome of the
1. appeal
or
2. revision
or
3. supersession
in M2100 is terminated on the day before the first day of UC entitlement (1).

1 UC (TP) Regs 13, reg 18(3)(a)

M2103

The new claimant partner is not entitled to any payment of an existing benefit for any
period after the day before the first day of UC entitlement (1).

1 UC (TP) Regs 13, reg 18(3)(b)

M2104 M2100 M2101

The DM should consider whether to revise the decision awarding UC or any
subsequent supersession decision in the light of the outcome of the appeal, revision
or supersession as in M2100, including any findings of fact made by the FtT, UT or
1
court .
1 UC (TP) Regs 13, reg 18(3)(b) & (4)

Example

Olivia's entitlement to ESA(IR) is terminated after she is found not to have LCW
following application of the WCA. She appeals, and a new award of ESA is made
pending the outcome of the appeal.
Olivia joins her partner John, and an award of UC is made to them both as joint
claimants. Olivia's award of ESA(IR) is terminated on the day before that UC
entitlement begins.
Olivia's ESA appeal is successful, and the FtT places her in the WRAG. The
pending appeal award is revised to include the WRAC for the period up to the day
before UC entitlement began. The DM also revises the decision awarding UC to
Olivia and John to include the LCW element (see M2133 et seq).

[M2105-M2109]

M2110 Advance payment of UC M2111

Where a claim has been made or treated as made, and the circumstances in M2112
- M2113 apply, a request for an advance payment of UC may be made during the
first assessment period by
1. a single claimant or
2. either or both joint claimants (1).

1 UC (TP) Regs 13, reg 19(1)-(3)

M2111 M2112 M2113

If a request as in M2110 is made, the DM may make an advance payment of an
appropriate amount of UC (1). If an advance payment is made, payments of UC are
reduced until the amount of the advance has been repaid (2).
Note: This applies to advance payments made before 16.6.14.
1 UC (TP) Regs 13, reg 19(4); 2 reg 19(5)

M2112 Single claimant M2110

An advance payment of UC may be made as in M2111 where
1. a claim for UC has been made and
2. the claimant was previously entitled to an existing benefit and
3. the UC claim is made within a period of one month starting with the date on
which the award of the existing benefit terminated (1).
1 UC (TP) Regs 13, reg 19(1)

M2113 Joint claimants M2110

An advance payment of UC may be made as in M2111 where
1. a claim for UC is treated as having been made (1) and
2. one of the claimants is a new claimant partner who was previously entitled to
an existing benefit and
3. the award of the existing benefit terminated
3.1 on formation of the couple or
3.2 as in M2060 (2).
1 UC, PIP, JSA & ESA (C&P) Regs, reg 9(8); 2 UC (TP) Regs 13, reg 19(2)

Example

Sally is entitled to CA and IS (including housing costs) while she cares for her
mother. She is paid fortnightly in arrears, the most recent payment being made on
3.9.13. She is joined by her partner Jack on 6.9.13. Jack has been entitled to UC
since 4.6.13. Jack and Sally are treated as having claimed UC from 4.9.13. Sally's
award of IS terminates on 5.9.13, and a final payment is made on 11.9.13. Had she
remained entitled to IS, her next payment would have been due on 17.9.13. Jack's
last payment of UC as a single claimant was made on 3.9.13. The DM awards UC,
and makes an advance payment of 14 days UC on 17.9.13.

[M2114-M2119]

M2120 Income from existing benefits M2121

Where
1. an award of UC is made to joint claimants and
2. one of the claimants is a new claimant partner whose previous award of
2.1 JSA(IB)
or
2.2 ESA(IR)
or
2.3 IS
terminated either on formation of a couple or as in M2060 and
3. a payment of the existing benefit in 2. is made including for a period which
falls in one or more UC assessment periods (1)
the payment in 3. is treated as unearned income for the purposes of calculating the
award of UC (2).
Note: The guidance about calculating unearned income monthly (3) does not apply.
1 UC (TP) Regs 13, reg 21(1); 2 reg 21(2); UC Regs, reg 66(1)(b); 3 reg 73

Example 1

Stewart is entitled to UC as a single claimant. His assessment period begins on the
1st of the month. Maggie is entitled to JSA(IB), and moves in with Stewart on
28.6.13. She notifies this when she attends her fortnightly interview on 3.7.13.
JSA(IB) is paid for the period up to 3.7.13. Maggie and Stewart are treated as
claiming UC as joint claimants from 1.6.13. Maggie's award of JSA(IB) is terminated
from the same date. Payments of JSA(IB) for the periods 1.6.13 - 30.6.13 and
1.7.13 - 3.7.13 are treated as unearned income for the assessment periods
beginning on 1.6.13 and 1.7.13 respectively.

Example 2

Bryn is entitled to UC as a single claimant. His assessment period begins on the 5th
of the month. On 1.6.13 he joins his partner Cerys, who is entitled to ESA(Cont) and
ESA(IR), including the support component and enhanced disability premium. Bryn
and Cerys are treated as claiming UC as joint claimants from 5.5.13. Cerys's award
of ESA(Cont) becomes an award of new style ESA, and is taken into account as
unearned income. The ESA(IR) part of her ESA award (i.e. the enhanced disability
premium) terminates on 4.5.13. Her last payment of ESA before the change of
circumstances is actioned was made on 26.6.13. Payments of ESA(IR) for the
period 4.5.13 - 26.6.13 are treated as unearned income for the assessment periods
beginning on 4.5.13 and 4.6.13.

M2121

DMs should be aware that where
1. payments of benefit are treated as unearned income as in ADM M2120 and
2. third party deductions are made from the benefit
the gross amount of benefit paid before third party deductions are applied is treated
as unearned income.

[M2122-M2124]

M2125 Deductions

Where
1. an award of UC is made to joint claimants and
2. one member of the couple is a new claimant partner who
2.1 was previously entitled to JSA(IB), ESA(IR) or IS or
2.2 was immediately before termination of the award the partner of a
person entitled to JSA(IB), ESA(IR) or IS and
3. the earlier award terminated (1) as in M2060 and
4. at the time the earlier award terminated, deductions were being made (2) for
4.1 fuel costs
or
4.2 water charges
or
4.3 both
deductions for fuel costs or water charges may continue to be made from the award
of UC without the need for any consent (3). See ADM Chapter D2 (Third party
deductions) for detailed guidance on utility deductions.
Note: This only applies where the new claimant partner remains liable for the debt
and lives at the same address.
1 UC (TP) Regs, reg 16; 2 SS (C&P) Regs, reg 35 & Sch 9;
3 UC (TP) Regs 13, reg 22; UC, PIP, JSA & ESA (C&P) Regs, Sch 6; para 3(3)

Example

Ashley is entitled to JSA(IB). He has deductions in place for arrears of gas, electricity
and water charges. His award of JSA(IB) is terminated when he is joined by his
partner Selma, who is entitled to UC. Ashley and Selma's award of UC as joint
claimants continues to have amounts deducted for fuel and water charges.

[M2126-M2129]

New claimant partner entitled to ESA

M2130 Introduction

This section gives guidance on the effect on entitlement to UC for joint claimants
where one of the couple is a new claimant partner who was previously entitled to
ESA. The new claimant partner may be treated as having LCW or LCWRA, and may
be entitled to the LCW or LCWRA element. If they are treated as having LCW or
LCWRA, then the normal UC rules for further referrals for the WCA apply (1). See
ADM Chapter G1 (Work capability assessment) for further details.
1 UC (TP) Regs 13, reg 23(7); UC Regs, Part 5

M2131 Meaning of relevant date

For the purposes of M2133 - M2139, the relevant date is where the new claimant
partner was previously entitled to
1. ESA(IR) only, the date on which that award terminates (1) or
2. ESA(Cont), or ESA(Cont) and ESA(IR), the day before the first day of
entitlement to UC (2).
1 UC (TP) Regs 13, reg 23(2)(a) & 24(2)(a); 2 reg 23(2)(b) & 24(2)(b)

M2132 Meaning of new style ESA

New style ESA means an award of ESA(Cont) made under ESA legislation as
amended (1).
1 WR Act 07 Part 1; WR Act 12, Sch 3 & Sch 14, Part 1; ESA Regs 13; UC (TP) Regs 13, reg 2(1)
New claimant partner entitled to ESA component

M2133 Work-related activity component M2104 M2131 M2134 M2136

Where
1. an award of UC is made to joint claimants and
2. one of the claimants is a new claimant partner and
3. the new claimant partner was previously entitled to ESA which
3.1 for ESA(IR), terminated on formation of the couple or as in M2060 or
3.2 for ESA(Cont), continued as an award of new style ESA and
4. before the relevant date, it had been determined that the new claimant partner
was entitled to the WRAC and
5. the assessment phase had ended
the new claimant partner is treated as having LCW without the need for the WCA (1).
Note: See M2137 for guidance where the assessment phase had not ended when
ESA was terminated. See DMG Chapter 42 for guidance on ESA components, and
Chapter 44 for guidance on when the assessment phase ends.

1 UC (TP) Regs 13, reg 23(1) & (3); WR Act 12, s 21(1)(a); UC Regs, reg 27(1)(a) & (3)

M2134

Where M2133 applies, the LCW element is normally included in the amount of UC
award to the joint claimants from the beginning of the first assessment period (1). The
guidance about the relevant period before which the element is not included in the
UC award (2) in ADM Chapter F5 (Work capability elements) does not apply.
Note: See ADM Chapters F5 and F6 (Carer element) for further details about when
the LCW element is not included in the UC amount payable.
1 UC (TP) Regs 13, reg 23(4); UC Regs, reg 27(4) & 29(4); 2 reg 28

Example

Jessie has been entitled to UC as a single claimant since 23.5.13. On 8.9.13 she
joins her partner Tim, who is entitled to ESA(IR) including the WRAC and the carer
premium. He is entitled to CA while he cares for his disabled 17 year old son
Stephen. He is also entitled to HB. Tim's awards of ESA(IR) and HB are terminated
on 22.8.13. Jessie and Tim are entitled to UC as joint claimants from 23.8.13. Their
award includes the carer element, but not the LCW element, which would otherwise
have been payable.

M2135 Support component

Where
1. an award of UC is made to joint claimants and
2. one of the claimants is a new claimant partner and
3. the new claimant partner was previously entitled to ESA which
3.1 for ESA(IR), terminated on formation of the couple or as in M2060 or
3.2 for ESA(Cont), continued as an award of new style ESA and
4. before the relevant date, it had been determined that the new claimant partner
was entitled to the support component and
5. the assessment phase had ended
the new claimant partner is treated as having LCWRA without the need for the
WCA (1).
Note: See M2135 for guidance where the assessment phase had not ended when
ESA was terminated. See DMG Chapter 42 for guidance on ESA components, and
Chapter 44 for guidance on when the assessment phase ends.

1 UC (TP) Regs 13, reg 23(1) & (5); WR Act 12, s 19(2)(a); UC Regs, reg 27(1)(b) & (3)

M2136

Where M2133 applies, the LCWRA element is normally included in the amount of
UC award to the joint claimants from the beginning of the first assessment period (1).
The guidance about the relevant period before which the element is not included in
the UC award (2) in ADM Chapter F5 (Work capability elements) does not apply.
1 UC (TP) Regs 13, reg 23(4); 2 UC Regs, reg 29(4)

Example 1

Fergal has been entitled to UC since 6.8.13. He is joined on 15.10.13 by his partner
Donna, who is entitled to ESA(Cont) and (IR), including the support component. The
ESA(IR) part of Donna's award is terminated on 5.9.13, the day before Fergal and
Donna's award of UC as joint claimants begins. The UC includes the LCWRA
element from 6.9.13. Donna remains entitled to new style ESA.

Example 2

Tamsin claims UC on 2.5.13 after being dismissed from her job. Soon after she
becomes pregnant, and is diagnosed with severe hyperemesis gravidarum and high
blood pressure early on in the pregnancy. She requires hospital treatment for
dehydration on several occasions, and submits medical evidence. Tamsin is referred
for the WCA, and the HCP advises that the condition is likely to continue throughout
the pregnancy given the stage she has now reached, with a consequent risk to her
health. Tamsin is treated as having LCWRA, and the LCWRA element is included in
her UC award from 2.9.13.
Tamsin is joined by her partner Noel on 17.9.13. Noel is entitled to ESA(IR) including
the support component. Noel's award of ESA(IR) is terminated on 1.9.13. Tamsin
and Noel are entitled to UC as joint claimants from 2.9.13. Although both have
LCWRA, only one LCWRA element can be included in the UC award.
New claimant partner entitled to ESA - assessment phase has not ended

M2137 Assessment phase less than 13 weeks M2133

Where
1. an award of UC is made to joint claimants and
2. one of the claimants is a new claimant partner and
3. the new claimant partner was previously entitled to ESA which
3.1 for ESA(IR), terminated on formation of the couple or as in M2060 or
3.2 for ESA(Cont), continued as an award of new style ESA and
4. on the relevant date, the assessment phase (1) had lasted for less than 13 weeks
the guidance in ADM Chapter F5 (Work capability elements) about the length of the
relevant period (during which a work capability element cannot be included in a UC
award), and when it begins, does not apply (2). Instead, the relevant period is 13
weeks, beginning with the first day of the ESA assessment phase (3).
Note: If on application of the WCA it is determined that the new claimant partner has
LCW or LCWRA, a work capability element should be included in the UC award from
the first day of the assessment period after the one in which the relevant period
ends (4).
1 WR Act 07, s 24(2); UC (TP) Regs 13, reg 23(8); 2 reg 24(1) & (3)(a); 3 reg 24(3)(b);
4 UC Regs, reg 28(1); UC, PIP, JSA & ESA (D&A) Regs, reg 35(9)(a)

Example

Olumide claimed and was awarded ESA(IR) from 19.3.13. On 25.6.13 he is joined
by his partner Ayo, who has been entitled to UC since 15.5.13. Olumide's award of
ESA(IR) terminates on 14.6.13, and he and Ayo are entitled to UC as joint claimants
from 15.6.13. The DM determines that Olumide has LCW. The relevant period
began on 19.3.13, and ends on 18.7.13. The LCW element is included in the UC
award from 15.8.13.

M2138 Assessment phase more than 13 weeks

Where
1. an award of UC is made to joint claimants and
2. one of the claimants is a new claimant partner and
3. the new claimant partner was previously entitled to ESA which
3.1 for ESA(IR), terminated on formation of the couple or as in M2060 or
3.2 for ESA(Cont), continued as an award of new style ESA and
4. on the relevant date, the assessment phase (1) had
4.1 not ended
and
4.2 lasted for more than 13 weeks
the guidance in ADM Chapter F5 (Work capability elements) about the relevant
period (during which a work capability element cannot be included in a UC award)
does not apply (2).

1 WR Act 07, s 24(2); UC (TP) Regs 13, reg 23(8); 2 reg 24(1) & (4)(a)

M2139 M2131

If on application of the WCA it is determined that the new claimant partner has LCW
or LCWRA
1. the LCW or LCWRA element as appropriate is included in the UC award from
the beginning of the first assessment period and
2. for the purpose of entitlement to ESA, the new claimant partner is treated as
having been entitled to the WRAC or support component as appropriate from
week 14 of ESA entitlement (1).
Note: See DMG Chapter 04 and 44 for guidance on when the ESA component is
awarded for old style ESA, and ADM Chapter A4 and V1 for new style ESA.
1 UC (TP) Regs 13, reg 24(4)(b) & (c)

Example

Carly claimed and was awarded ESA(IR) from 21.2.13. On 15.7.13 she joins her
partner Warren, who has been entitled to UC since 7.5.13. Carly's award of ESA(IR)
ends on 6.7.13, and she and Warren are entitled to UC as joint claimants from
7.7.13.
On 19.9.13 after application of the WCA, the DM determines that Carly has LCW.
The UC award is revised to include the LCW element from 7.7.13. The decision
awarding ESA is superseded to award the WRAC for the period 23.5.13 - 6.7.13.
New claimant partner entitled to IS, IB or SDA

M2140 Introduction

Claimants who are entitled to
1. IS on the grounds of incapacity or
2. IB
or
3. SDA
are being reassessed to determine whether their benefit, referred to as an existing
award (1), can be converted to ESA. This is known as IB Reassessment - see DMG
Chapter 45 for detailed guidance. This section gives guidance on the action to take
where a claimant entitled to an existing award becomes a new claimant partner.

1 WR Act 07, Sch 4, para 11

M2141

Where IB or SDA is in payment at the time the award of UC to joint claimants
begins, it is taken into account as unearned income (1). See ADM Chapter H5
(Unearned income) for detailed guidance.
1 UC (TP) Regs 13, reg 28(1); UC Regs, reg 66

M2142 New claimant partner entitled to IS on the grounds of incapacity

Where
1. an award of UC is made to joint claimants and
2. one member of the couple is a new claimant partner who was previously
entitled to IS on the grounds of incapacity (1) and
3. the new claimant partner's award of IS was terminated on formation of the
couple or as in M2060 and
4. it is determined that the new claimant has LCW or LCWRA
the new claimant partner is treated as having LCW or LCWRA from the beginning of
the first assessment period for the purposes of entitlement to a work capability
element (2). There is no requirement to serve a relevant period, and the work capability
element is included in the UC award from the beginning of the first assessment
period (3).
Note: Whether or not the conversion phase had begun, it terminates when the
award of IS terminates - see DMG Chapter 45 for further details. The new claimant
partner should be referred for the WCA under UC rules - see ADM Chapters G1 -
G3.
1 WR Act 07, Sch 4, para 11; UC (TP) Regs 13, reg 25(3); 2 reg 25(1) and (2)(a)(i) & (b)(i);
3 reg 25(2)(a)(ii) & (iii) and (b)(ii) & (iii)

[M2143-M2144]

M2145 New claimant partner entitled to IB or SDA

Where
1. an award of UC is made to joint claimants and
2. one member of the couple is a new claimant partner who was entitled to IB or
SDA (1) when the UC award was made and
3. it is determined that the award of IB or SDA qualifies for conversion to ESA (2)
the new claimant partner is treated as having LCW where the ESA award includes
the WRAC, or LCWRA if the support component is awarded, from the beginning of
the first assessment period for the purposes of entitlement to a work capability
element. There is no requirement to serve a relevant period, and the work capability
element is included in the UC award from the beginning of the first assessment
period (3).
Note 1: See M2146 for guidance on where a determination of LCW or LCWRA has
been made under UC rules before a conversion decision is made for the purposes of
IB reassessment.
Note 2: "The date on which the award of UC was made" is the date of the decision
to award UC.
1 WR Act 07, Sch 4, para 11; UC (TP) Regs, reg 23(8); 2 ESA (TP, HB & CTB)(EA)(No. 2) Regs, reg 7;

3 UC (TP) Regs 13, reg 26

M2146 M2145

The new claimant partner may have submitted medical evidence and been referred
for the WCA before it has been determined whether their award of IB or SDA
qualifies for conversion to ESA. For example, this might be where they consider that
their health condition has deteriorated, or they are not due to be reassessed for
some time. If
1. a determination on LCW or LCWRA is made for the purposes of UC and
2. it is determined that the award of IB or SDA qualifies for conversion to ESA
the UC decision should be revised to reflect the conversion decision (1).
1 UC (TP) Regs 13, reg 26(2)(a) & (3)(a); 2 UC, PIP, JSA & ESA (D&A) Regs, reg 5(1)(a)

[M2147-M2149]

M2150 New claimant partner entitled to IB or SDA and approaching pensionable age

Where
1. an award of UC is made to joint claimants and
2. one member of the couple is a new claimant partner who is entitled to IB or
SDA (1) and
3. the new claimant partner will reach pensionable age (2) before 6.4.14 so that no
conversion notice will be issued and
4. the new claimant partner is entitled to
4.1 PIP
or
4.2 DLA
or
4.3 AA
or
4.4 AFIP
the new claimant partner is treated as having LCW or LCWRA from the beginning of
the first assessment period for the purposes of entitlement to a work capability
element. There is no requirement to serve a relevant period, and the work capability
element is included in the UC award from the beginning of the first assessment
period (3). See M2151 for guidance on which element is included in the UC award.
1 WR Act 07, Sch 4, para 11; UC (TP) Regs 13, reg 23(8); 2 ESA (TP, HB & CTB)(EA)(No. 2) Regs, reg 4(5)(a);

3 UC (TP) Regs 13, reg 27

M2151 M2150

The new claimant partner is entitled to the LCW element where they are entitled to (1)
1. PIP and neither
1.1 the daily living component or
1.2
the mobility component is payable at the enhanced rate (2) or
2. DLA and either
2.1
the care component is payable at the middle rate or
2.2
the mobility component is payable at the lower rate (3) or
3. AA payable at the lower rate (4).
1 UC (TP) Regs 13, reg 27(1)(e) & (2)(d); 2 WR Act 12, s 78 - 80;

3 SS CB Act 92, s 71, 72(4) & 73(11); 4 s 64 & 65

M2152

The new claimant partner is entitled to the LCWRA element where they are entitled
1 to
1. PIP and either
1.1 the daily living component or
1.2
the mobility component is payable at the enhanced rate (2) or
2. DLA and either
2.1
the care component is payable at the highest rate or
2.2
the mobility component is payable at the higher rate (3) or
3. AA payable at the higher rate (4) or
4. AFIP (5).
1 UC (TP) Regs 13, reg 27(1)(e) & (2)(d); 2 WR Act 12, s 78 - 80;
3 SS CB Act 92, s 71, 72(4) & 73(11); 4 s 64 & 65; 5 AF & RF (Comp Scheme) Order

[M2153-M2159]

Support for housing costs

M2160 Claimant previously entitled to housing costs

Where (1)
1. an award of UC is made to single or joint claimants and
2. the claimant was
2.1 previously entitled to JSA(IB), ESA(IR) or IS or
2.2 the partner of a person entitled to JSA(IB), ESA(IR) or IS immediately
before the award in 2.1 was terminated, but is no longer their partner
and
3. the award in 2.1 terminated
3.1 during the period of one month ending on the first day of UC entitlement
or
3.2 on formation of the couple or as in M2060 and
4. the award in 2.1 included housing costs (2) and
5. the claimant is liable for housing costs for the purposes of UC
the requirement to serve a qualifying period before a housing costs element for
owner-occupiers can be included in the UC award does not apply (3). See ADM
Chapter F2 (Housing costs element: general) for detailed guidance on the qualifying
period, and ADM Chapter F4 (Housing costs element: home finance payments) for
guidance on the housing costs element for owner-occupiers.
1 UC (TP) Regs 13, reg 29(1); 2 JSA Regs 96, Sch 2, para 14 - 16; ESA Regs 08, Sch 6, para 16 - 18;
IS (Gen) Regs, Sch 3, para 15 - 17; UC (TP) Regs 13, reg 29(2); UC Regs, Sch 5, para 5

Example

Maureen has been entitled to UC since 22.5.13. She moves in with her partner
Calvin on 14.9.13. Calvin is entitled to JSA(IB), including housing costs for a loan
used to buy his home. Calvin's award of JSA(IB) terminates on 21.8.13, and he and
Maureen are entitled to UC as joint claimants from 22.8.13. Their UC award includes
the owner-occupier housing costs element from 22.8.13.

M2161 Claimant not previously entitled to housing costs

Where (1)
1. an award of UC is made to single or joint claimants and
2. the claimant was
2.1 previously entitled to JSA(IB), ESA(IR) or IS or
2.2 the partner of a person entitled to JSA(IB), ESA(IR) or IS immediately
before the award in 2.1 was terminated, but is no longer their partner
and
3. the award in 2.1 terminated
3.1 during the period of one month ending on the first day of UC entitlement
or
3.2 on formation of the couple or as in M2060 and
4. the award in 2.1 did not include housing costs because the qualifying period
had not ended (2) and
5. the claimant is liable for housing costs for the purposes of UC
the qualifying period during which the housing costs element cannot be paid is
reduced as in M2162 (3).
1 UC (TP) Regs 13, reg 29(1)(a) & (b) & (3); 2 JSA Regs 96, Sch 2, para 6(1)(c) & (7)(1)(b);
ESA Regs 08, Sch 6, para 8(1)(c) & 9(1)(b); IS (Gen) Regs, Sch 3, para 6(1)(c) or 8(1)(b);

3 UC (TP) Regs 13, reg 29(4)

M2162 M2161 M2163

Where M161 applies, the qualifying period before which the housing costs element
is included in the UC award is reduced by (1)
1. the length of time during which the claimant or their former partner was
continuously entitled to JSA(IB), ESA(IR) or IS, including linked periods (2) and
2. any period between the date on which the award in 1. terminated and the first
day of entitlement to UC.
See DMG Chapter 23 for guidance on housings costs for JSA(IB) and IS, and DMG
Chapter 44 for guidance on ESA(IR) housing costs.
1 UC (TP) Regs 13, reg 29(4); 2 JSA Regs 96, Sch 2, para 13;

ESA Regs 08, Sch 6, para 15; IS (Gen) Regs, Sch 3, para 14

M2163

Where the qualifying period is reduced as in M2162, the rules about reduction of the
qualifying period for days when the claimant was
1. an
owner-occupier
and
2. entitled to ESA or JSA where the award was made on or after 29.4.13
do not apply (1).
1 UC (TP) Regs 13, reg 29(5); UC Regs, Sch 5, para 6

[M2164-M2169]

Sanctions

M2170 Introduction

This section gives guidance on reduction of UC awards made to a UC claimant,
including a new claimant partner, who, immediately before the relevant date (see M2171), was entitled to an award of ESA or JSA (see ADM Chapter M1 for the
meaning of ESA and JSA) which had been subject to
1. a sanction - see M2175 et seq or
2. a loss of benefit penalty - see M2230 et seq.
See DMG Chapter 53 for guidance on ESA sanctions, DMG Chapter 34 for guidance
on JSA sanctions, and DMG Chapter 08 for guidance on deductions from benefit for
a loss of benefit penalty.
Note: If the new claimant partner had been awarded ESA or JSA hardship payments
and that award is terminated, they can apply for hardship under UC provisions. See
DMG Chapter 35 and ADM Chapter L1 for further details.

M2171 Relevant date M2170 M2190

In this section, the relevant date is
1. the date on which the award of ESA or JSA terminated other than as in M2060
or
2. the day before the first date of entitlement to UC where
2.1 the award of ESA(IR) or JSA(IB) terminated as in M2060 or
2.2 the award of ESA(Cont) or JSA(Cont) continued as an award of new
style ESA or JSA (1). See ADM Chapter M1 for the meaning of new style
ESA or JSA.
1 WR Act 12, Sch 3 & Sch 14, Part 1; UC (TP) Regs 13, reg 2(1), 30(2) & 32(2)

[M2172-M2174]

M2175 ESA sanctions M2170 M2176

Where
1. an award of UC is made to a claimant who was previously entitled to ESA and
2. immediately before the relevant date, the award of ESA was reduced because
the claimant had failed without good cause to
2.1 take part in a WFI or
2.2 undertake
WRA (1)
the ESA failure is treated as a sanctionable failure for the purposes of UC (2).
1 WR Act 07, s 12 & 13; ESA Regs 08, reg 61 & 63; ESA (WRA) Regs, reg 8;

2 WR Act 12, s 27; UC (TP) Regs 13, reg 30(1) & (3)(a)

M2176 M2178 M2179

Where M2175 applies
1. the award of UC is reduced as in M2177 (1) and
2. the reduction is treated as a reduction in accordance with UC rules (2).
See ADM Chapter K1 for guidance on general principles for UC reduction periods.
1 UC (TP) Regs 13, reg 30(3)(b); 2 WR Act 12, s 27; UC (TP) Regs 13, reg 30(3)(c); UC Regs, reg 101

M2177 Period of reduction M2176

The reduction period is the number of days equivalent to the length of the fixed
period part of the ESA reduction (1) less
1. the number of days (if any) in that period for which ESA was reduced and
2. the number of days (if any) in the period
2.1 starting with the day after the relevant date and
2.2 ending with the day before the first day of UC entitlement (2).
1 ESA Regs, reg 63(7); 2 UC (TP) Regs 13, reg 30(4)
Note: Although the claimant may not have complied with the requirement for which
the ESA sanction was imposed, the requirement no longer applies where the award
is terminated or changed to an award of new-style ESA. The fixed period still has to
be served and is applied to UC.

Example

Joy is entitled to ESA(IR). She joins her partner Tony on 14.9.13. Tony has been
entitled to UC since 11.6.13. Joy's award of ESA(IR) terminates on 10.9.13, as does
Tony's award of UC as a single claimant. Tony and Joy are entitled as joint
claimants from 11.9.13.
Joy's award of ESA(IR) had been reduced because she had failed to take part in a
WFI. This was Joy's second failure, and a fixed period of reduction of two weeks
was imposed after she agreed to attend a WFI. The fixed period began on 4.9.13.
Joy's award of ESA(IR) was reduced for seven days before it terminated on 10.9.13,
and a further seven days reduction period is imposed for the UC award.

M2178 Escalation M2179

Where
1. the UC claimant fails for no good reason to comply with a work-related
requirement and
2. the failure is a sanctionable failure and
3. the claimant was previously entitled to ESA
the DM should take into account any previous ESA fixed period reductions, including
a reduction carried forward to UC as in M2176, when determining what reduction
period applies for the purposes of a low-level sanction (1). See ADM Chapter K5 for
guidance on low-level sanctions, and DMG Chapter 53 for guidance on ESA
reductions.
Note 1: See M2179 for when M2178 does not apply.
Note 2: ESA fixed period reductions began on 3.12.12. Reductions before 3.12.12
are disregarded when considering what reduction period applies for low-level
sanctions.
1 UC (TP) Regs 13, reg 31(1) & (2); UC Regs, reg 104; ESA Regs 08, reg 63

Example 1

Hussain was entitled to ESA. His award terminated on 16.4.13 after he returned to
work. Hussain had failed to undertake WRA on 17.12.12, and a fixed period
reduction of one week was imposed from 9.1.13.
Hussain's job comes to an end, and he claims UC from 12.8.13. He is required to
attend the Jobcentre fortnightly, but fails for no good reason to attend on 28.8.13. He
attends on 30.8.13. The DM treats the ESA one week reduction as a seven day low-
level sanction. As this was within 365 days of the current sanctionable failure, the
DM decides that Hussain's award of UC is subject to a reduction of two days for the
period before compliance, followed by 14 days, as the failure is within 365 days of a
previous failure for which a seven day reduction period is treated as applying.

Example 2

Ryan is entitled to ESA. He fails to attend a WFI on 15.1.13, for which a one week
fixed period reduction is imposed. Ryan then fails to undertake WRA on 28.5.13, and
as this is within 52 weeks of the failure on 15.1.13, a two week fixed period reduction
is imposed following compliance. The fixed period begins on 12.6.13.
Linzi has been entitled to UC since 16.5.13. On 24.6.13 she moves in with Ryan.
Ryan and Linzi are entitled as joint claimants from 16.6.13. Their UC award is
reduced for a period of 10 days, the balance of the ESA two weeks fixed period
reduction (calculated by reducing half of the joint standard allowance).
On 5.9.13 Ryan fails for no good reason to attend a WFI. He meets the specified
compliance condition by phoning on 11.9.13 and agreeing to attend a WFI. A low-
level sanction is applied. When calculating the reduction period, the DM treats the
failure of 15.1.13 as incurring a six day reduction period, and the failure of 28.5.13 as
incurring a 14 day reduction period. Ryan and Linzi's award of UC is reduced for a
total period of 38 days (10 for the period before compliance, and 28 as the previous
failure within 365 days was for 14 days).

M2179 M2178

When determining a reduction period for a low-level sanction as in M2178, no
account is taken of
1. a reduction of ESA carried forward to UC as in M2176, if the claimant is
subsequently entitled to an existing benefit (see ADM Chapter M1 for meaning
of existing benefit) or
2. a reduction of ESA, if after that reduction the claimant was entitled to UC, new
style ESA or new style JSA, and was subsequently entitled to an existing benefit
if they are awarded UC again and there is a sanctionable failure (1).
Note: See ADM Chapter V8 and S6 for guidance on where a UC claimant is
subsequently entitled to an existing benefit.
1 UC (TP) Regs 13, reg 31(3); ESA Regs 08, reg 63

Example

Maddie is entitled to ESA. She fails to attend a WFI on 15.1.13, for which a one
week fixed period reduction is imposed. Maddie then fails to undertake WRA on
28.5.13, and as this is within 52 weeks of the failure on 15.1.13, a two week fixed
period reduction is imposed following compliance. The fixed period begins on
12.6.13.
David has been entitled to UC since 16.5.13. On 24.6.13 he moves in with Maddie.
David and Maddie are entitled as joint claimants from 16.6.13. Their award is
reduced for a period of 10 days, the balance of the ESA two weeks fixed period
reduction.
On 5.9.13 Maddie fails for no good reason to attend a WFI. She phones up on
11.9.13 and agrees to attend a WFI. When calculating the reduction period, the DM
treats the failure of 15.1.13 as incurring a seven day reduction period, and the failure
of 28.5.13 as incurring a 14 day reduction period. David and Maddie's award of UC
is reduced for a total period of 38 days (10 days for the period before compliance,
and 28 days as the previous failure within 365 days was for 14 days).
On 30.5.13 David finds work and because of his earnings both he and Maddie are
no longer entitled to UC. On 30.6.13 David's job finishes because he is not fit for
work. David is not entitled to claim UC because he does not meet the Pathfinder
criteria, so he makes a claim for ESA(IR). He receives the full amount of ESA for
himself and Maddie. This is because the previous reductions applied to the UC
award are not brought forward to the ESA award.
David fails to attend a WFI on 1.10.13 and a one week fixed period reduction is
applied to his ESA. This is because the previous reductions applied to the UC award
do not count for the purpose of ESA reduction periods. David then fails to undertake
WRA on 28.11.13, and as this is within 52 weeks of the failure on 01.10.13, a two
week fixed period reduction is imposed following compliance.

[M2180-M2189]

M2190 JSA sanctions M2191

Where
1. an award of UC is made to a claimant who was previously entitled to JSA and
2. immediately before the relevant date (see M2171, the award of JSA was
reduced because of a sanctionable failure (whether before or after 22.10.12)1 and
3. in the case of joint-claim couples, the sanction applies to the member of the
couple who is subsequently awarded UC
the JSA failure is treated as a higher-level, medium-level or low-level sanctionable
failure for the purposes of UC (2). See ADM Chapter K3 (Higher-level sanctions),
Chapter K4 (Medium-level sanctions) and Chapter K5 (Low-level sanctions) for
further guidance.

1 JS Act 95, s 19 & 19A; JSA Regs, 96, reg 69B; 2 UC (TP) Regs 13, reg 32(1) - (3)

M2191 M2195 M2196

Where M2190 applies
1. the award of UC is reduced as in M2192 (1) and
2. the reduction is treated as a reduction in accordance with UC rules (2).
See ADM Chapter K1 for guidance on general principles for UC reduction periods.
1 UC (TP) Regs 13, reg 32(3)(b); 2 WR Act 12, s 26 & 27; UC (TP) Regs, reg 32(3)(c); UC Regs, reg 101

M2192 Period of reduction M2191

The UC reduction period is the number of days equivalent to the length of the period
of the reduction (1) less
1. the number of days (if any) in that period for which JSA was reduced and
2. the number of days (if any) in the period
2.1 starting with the day after the relevant date and
2.2 ending with the day before the first day of UC entitlement (2).
1 JSA Regs 96, reg 69, 69A or 69B; 2 UC (TP) Regs 13, reg 32(4)

M2193 Amount of reduction M2194

Where
1. the JSA award was to a joint-claim couple and
2. the failure was by one member of the couple
the daily reduction rate for the UC award is the amount specified for the purposes of
JSA divided by seven and rounded down to the nearest 10 pence (1). See DMG
Chapter 34 for guidance on JSA sanctions, and DMG Chapter 35 for JSA hardship.
Note: But see M2194 for exceptions.

1 JSA Regs 96, reg 74B(3); UC (TP) Regs 13, reg 32(6) & (7); UC Regs, reg 111

M2194 M2193

M2193 does not apply if, at the end of the assessment period, the claimant for whom
the reduction is imposed is (1)
1. aged 16 or 172 or
2. subject to no work-related requirements (3) because they
2.1 are responsible for a child aged under one (4) or
2.2 are an adopter (5) or
2.3 are pregnant and within 11 weeks of the EWC (6) or
2.4 were pregnant and within 15 weeks of confinement (6) or
2.5 are the foster parent of a child aged under one (7) or
2.6 have
LCWRA (8) or
3. subject to a WFI only work-related requirement (9).
The normal UC rules apply instead. See ADM Chapter K9 (Amount of reduction) for
guidance on what reduction amounts apply.
1 UC (TP) Regs 13, reg 32(6); UC Regs, reg 11(2) & (3); 2 reg 111(2)(a); 3 WR Act 12, s 19; 4 s 19(2)(c);
5 UC Regs, reg 89(1)(c); 6 reg 89(1)(d); 7 reg 89(1)(f); 8 WR Act 12, s 19; UC Regs, reg 40; 9 WR Act 12, s 20

M2195 Escalation M2196

Where
1. the UC claimant fails for no good reason to comply with a work-related
requirement and
2. the failure is a sanctionable failure and
3. the claimant was previously entitled to JSA
the DM should taken into account any previous JSA sanctions, including a sanction
carried forward to UC as in M2191, when determining what reduction period applies
for the purposes of a higher-level, medium-level or low-level sanction (1). See ADM
Chapter K3 (Higher-level sanctions), Chapter K4 (Medium-level sanctions) and
Chapter K5 (Low-level sanctions) for further guidance. See DMG Chapter 34 for
guidance on JSA sanctions.
Note: See M2196 for when M2195 does not apply.
1 UC (TP) Regs 13, reg 33(1) & (2); UC Regs, reg 102, 103 & 104;

JS Act 95, s 19 & 19A; JSA Regs 96, reg 69, 69A & 69B

M2196 M2195

When determining a reduction period for a higher-level, medium-level or low-level
sanction as in M2195, no account is taken of
1. a reduction of JSA carried forward to UC as in M2191, if the claimant is
subsequently entitled to an existing award or
2. a reduction of JSA, if after that reduction the claimant was entitled to UC, new
style ESA or new style JSA, and was subsequently entitled to an existing award
if they are awarded UC again and there is a sanctionable failure (1).
Note: See ADM Chapter V8 and S6 for guidance on where a UC claimant is
subsequently entitled to an existing award.
1 UC (TP) Regs 13, reg 33(3); JS Act 95, s 19 & 19A; JSA Regs 96, reg 69B
Rita is entitled to JSA. She fails to attend a training course on 15.1.13, for which a 4
week lower level fixed period reduction is imposed. Rita then fails to provide a CV on
28.5.13 and as this is within 52 weeks of the failure on 15.1.13, a 13 week fixed
period reduction is imposed following compliance. The fixed period begins on 4.6.13.
Ben has been entitled to UC since 12.5.13. On 24.6.13 he moves in with Rita. Ben
and Rita are entitled as joint claimants from 12.6.13. When Ben and Rita form a
couple any sanction which has not yet been applied to Rita's JSA is transferred to
the joint UC award. The balance of the sanction is converted into days (84 days) and
added to Rita's total outstanding reduction period. This is applied to the first
assessment period of the joint UC award i.e. 12.06.13 to 11.07.13 (31 days), with the
remaining 53 days applied until the outstanding period runs out i.e. 12.07.13 to
11.08.13 (31 days) and 12.08.13 to 02.09.13 (22 days).
On 5.09.13 Rita again fails for no good reason to attend a training course, but after
talking to her adviser she starts the course on 11.09.13. When calculating the
reduction period, the DM treats this as the third low-level sanction failure in UC and
imposes an open ended sanction.
On 30.9.13 Ben finds work and because of his earnings both he and Rita are no
longer entitled to UC. On 30.10.13 Ben's job finishes because it was a short-term
contract. Ben is excluded from claiming UC because he does not meet the
Pathfinder criteria as he is not single, so he makes a claim for JSA(IB). He receives
the full amount of JSA. This is because the previous reductions applied to the UC
award are not brought forward into the JSA award.
Ben fails to provide a CV on 12.11.13 and a 4 week lower level sanction is applied to
his JSA. This is because the previous reductions applied to the UC award do not
count towards JSA sanction escalation. Ben then fails to attend a training course on
17.12.13, and as this is within 52 weeks of the first lower level sanction failure on
12.11.13, a 13 week fixed period reduction is imposed.

[M2197-M2199]

M2200 UC claimant awarded existing benefit

Where
1. an award of UC terminates and
2. there is an outstanding reduction period and
3. the claimant is entitled to an existing award during the reduction period
the rules about the reduction period continuing after UC terminates (including where
UC terminates before a determination has been made) does not apply (1), even if the
claimant is awarded UC again. Instead, the reduction period ends on the first day of
entitlement to the existing award (2). See ADM Chapter K8 (When the reduction period
begins and ends) for guidance on termination of the reduction period.
1 UC (TP) Regs 13, reg 34(a); UC Regs, reg 107; 2 UC (TP) Regs 13, reg 34(b)

Example

Stefan's award of UC terminates on 7.6.13 when he finds temporary work and
moves outside the Pathfinder area. At the time his award terminated, it was subject
to a 91 day reduction period for a higher-level sanction. There were still 68 days left
for which benefit had not been reduced when the award of UC terminated.
Stefan's job contract ends after three weeks, and as he is no longer in a Pathfinder
area, he claims JSA(IB) on 1.7.13. He moves in with his partner Magdalena on
28.7.13. Magdalena is entitled to UC. Stefan's reduction period terminates on 1.7.13,
so there is no outstanding reduction period when his award of JSA(IB) is terminated
and he and Magdalena become entitled to UC as joint claimants.

[M2201-M2229]

M2230 Loss of benefit penalties M2170 M2231 M2232

Where
1. an award of UC is made to a claimant who was previously entitled to an
existing benefit and
2. the claimant is an offender (1) and
3. at the time the existing award terminated, payment was subject to a restriction
as a penalty for a benefit offence (2) and
4. the first day of UC entitlement is within one month of the termination of the
existing benefit
payment of UC is reduced for any day included in the remainder of the
disqualification period for that benefit offence (3). See M2232 for guidance on
calculation of the amount of the reduction. See DMG Chapter 08 for guidance on
benefit offences, offenders and loss of benefit restrictions.
Note: This does not apply where the existing benefit was a TC.

1 SS Fraud Act 01, s 6B & 7; 2 s 6B, 7 & 8; 3 UC (TP) Regs 13, reg 35(1) & (3); SS (LoB) Regs

M2231 M2232

The guidance at M2230 and M2232 also applies where
1. an award of UC is made to an offender (1) and
2. another person who was that offender's family member (2) was previously
entitled to an existing benefit and
3. at the time the award of that benefit terminated, payment was subject to a
restriction as a penalty for a benefit offence (2) and
4. the first day of UC entitlement is within one month of the termination of the
existing benefit (3).
1 SS Fraud Act 01, s 6B & 7; 2 s 9; 3 UC (TP) Regs 13, reg 35(2)

M2232 Amount of reduction M2230 M2231 M2233 M2233 M2233 M2233

Where M2230 or M2231 applies, payment of UC is reduced by (1)
1. an amount equal to the amount by which payment of the existing benefit was
reduced immediately before it terminated (2), multiplied as in M2233 and divided
by the number of the days in the year or
2. whatever lower amount reduces payment of UC to nil.
Note: The normal rules about the amount of reduction of UC for a benefit offence do
not apply (3). See ADM Chapter B2 (Loss of benefit: fraud) for details.
1 UC (TP) Regs 13, reg 35(4); 2 SS Fraud Act 01; SS (LoB) Regs;

3 UC (TP) Regs 13, reg 35(3)(b); SS Fraud Act 01, s 6B(5A) & 7(2A)(a)

M2233 M2232

Where the existing benefit was paid
1. weekly, the reduction amount in M2232 1. is multiplied by 52
2. fortnightly, the reduction amount in M2232 1. is multiplied by 26
3. every four weeks, the reduction amount in M2232 1. is multiplied by 13
4. monthly, the reduction amount in M2232 1. is multiplied by 121.
Note: HB can be paid at monthly or four weekly intervals. TCs can be paid every
four weeks.
1 UC (TP) Regs 13, reg 35(5)

[M2234-M2999]