Disregarding compensation payments relating to the Grenfell fire, the Post Office Horizon scandal and to vaccine damage in the calculation of means-tested benefits
New statutory instrument
New regulations have been issued in relation to the treatment of compensation payments in the calculation of means-tested benefits.
In force from 9 July 2023, the Social Security (Income and Capital Disregards) (Amendment) Regulations 2023 (SI.No.640/2023) amend provisions regarding which payments are to be disregarded as income and capital for the purposes of calculating entitlement to universal credit, income-based jobseeker’s allowance, income-related employment and support allowance, income support, housing benefit and state pension credit in order to –
- expand the existing disregard relating to the fire at Grenfell Tower on 17 June 2017 to cover any payment made to provide compensation or support in respect of the fire;
- create a new disregard in relation to payments made by the Secretary of State or the Post Office for the purpose of providing compensation or support in connection with the failings of the Post Office Horizon computer system or otherwise payable following the judgment in Bates and Others v. Post Office Ltd ((No. 3) Common Issues) [2019] EWHC 606 (QB); and
- create a new disregard in relation to payments made under the Vaccine Damage Payments Act 1979.
In addition, the regulations amend provisions relating to schemes for the recovery of benefits from compensation payments, established under the Social Security (Recovery of Benefits) Act 1997, to exempt payments relating to the Grenfell Tower fire and the Post Office Horizon scandal from those schemes.
SI.No.640/2023 is available from legislation.gov.uk