The Social Security (Income and Capital Disregards) (Amendment) Regulations 2025
The Social Security (Income and Capital Disregards) (Amendment) Regulations 2025 were laid before Parliament on 20th January 2025 and come into force on 6th April 2025.
These Regulations amend the Social Security (Income and Capital Disregards) Regulations 2018 to:
- Increase the capital disregard for housing costs from £107,250 to £113,000.
- Increase the weekly income disregard for housing costs from £85 to £95.
- Increase the weekly income disregard for other expenses from £35 to £40.
The changes will apply to all new claims for Universal Credit, Pension Credit and Housing Benefit from 6th April 2025.
The Department for Work and Pensions has said that the changes will help to ensure that people on low incomes have enough money to cover their essential living costs.
Background
The Social Security (Income and Capital Disregards) Regulations 2018 set out the rules for disregarding certain types of income and capital when calculating entitlement to benefits.
The capital disregard for housing costs is the amount of capital that a person can have in their home without it affecting their entitlement to benefits. The weekly income disregard for housing costs is the amount of income that a person can have without it affecting their entitlement to benefits. The weekly income disregard for other expenses is the amount of income that a person can have without it affecting their entitlement to benefits.
Impact of the changes
The changes to the capital and income disregards will mean that more people will be eligible for benefits and that those who are already receiving benefits will receive more money.
The Department for Work and Pensions has estimated that the changes will increase the number of people receiving Universal Credit by 100,000 and the number of people receiving Pension Credit by 50,000. The changes will also increase the average weekly payment of Universal Credit by £5 and the average weekly payment of Pension Credit by £10.
Conclusion
The Social Security (Income and Capital Disregards) (Amendment) Regulations 2025 are a welcome change that will help to ensure that people on low incomes have enough money to cover their essential living costs.
The Social Security (Income and Capital Disregards) (Amendment) Regulations 2025
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