Citation, commencement and application

1. —(1) These Regulations may be cited as the Universal Credit (Benefit Cap Earnings Exception) Amendment Regulations 2017 and come into force on 1st April 2017.

(2) Where an amendment made by these Regulations applies in respect of an existing award of universal credit, that amendment has effect for the purposes of that award—

(a) on 1st April 2017, if there is an assessment period for the award that begins on that day; or

(b) if sub-paragraph (a) does not apply, on the first day of the next assessment period for the award beginning after that day.

(3) For the purposes of this regulation, “existing award of universal credit” means an award of universal credit that exists on 1st April 2017.

Exception to the application of the benefit cap – earnings

2. —(1)The Universal Credit Regulations 2013( 3 ) are amended as follows.

(2) In regulation 6(1A) (rounding), before paragraph (a) insert—

“ (za) regulation 82(1)(a) (exceptions – earnings); ” .

(3) In regulation 82 (exceptions – earnings)—

(a) in paragraph (1)(a), for “£430”, substitute—

“ the amount of earnings that a person would be paid at the hourly rate set out in regulation 4 of the National Minimum Wage Regulations for 16 hours per week, converted to a monthly amount by multiplying by 52 and dividing by 12 ” ;

(b) in paragraph (2)(a), for “less than the amount mentioned in paragraph (1)(a)”, substitute—

“ less than—

(i) where the assessment period began before 1st April 2017, £430; or

(ii) in any other case, the amount calculated in accordance with paragraph (1)(a) ” ; and

(c) in paragraph (3), for “exceeded the amount mentioned in paragraph (1)(a)”, substitute—

“ exceeded—

(a) in any month beginning before 1st April 2017, £430; and

(b) in any other case, the amount calculated in accordance with paragraph (1)(a) ” .