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Universal Credit counts dependants' income: a child's or qualifying young person's earnings and unearned income reduce the parents' award #1976

Description

@MaxGhenis

uc_earned_income and uc_unearned_income sum every member of the benefit unit, so a dependent child's or qualifying young person's income reduces the parents' Universal Credit. Only the claimant's income counts in law.

Law

UC Regulations 2013 reg 22(1) deducts:

(a) all of the claimant's unearned income (or in the case of joint claimants all of their combined unearned income) in respect of the assessment period; and
(b) the following amount of the claimant's earned income (or, in the case of joint claimants, their combined earned income) in respect of the assessment period

A claim is made by a single person or jointly by the members of a couple (Welfare Reform Act 2012 s.2(1)), so there are at most two claimants. A child or qualifying young person is someone a claimant is responsible for, not a claimant.

Reproduction (2026, model at #1973's head baff2d793; the same on main)

A lone parent aged 40 with no income, and a 17-year-old in upper secondary education.

The 17-year-old has uc_earned_income uc_unearned_income universal_credit Should be
no income 0 0 £9,321.36 £9,321.36
wages of £12,000 3,480 0 £7,407.36 £9,321.36
savings interest of £12,000 (or dividends, rent, a private pension) 0 12,000 £0 £9,321.36

£9,321.36 is 12 × (£424.90 standard allowance + £351.88 first-child element), the 2026-27 amounts in the reg 36 table. 3,480 is the £12,000 less the £8,520 work allowance.

The same pattern elsewhere in Universal Credit

  • Benefit cap earnings exception (is_benefit_cap_exempt_earnings). Reg 82(1)(a) tests "the claimant's earned income or, if the claimant is a member of a couple, the couple's combined earned income". The model sums every member's earnings, so a dependant's job exempts the whole family from the cap.
  • Childcare work condition (uc_childcare_work_condition). Reg 32(1) asks whether "the claimant is in paid work" and, in a couple, "the other member". The model requires every member aged 18 or over to be in work, so a dependent 18- or 19-year-old without a job blocks the childcare costs element, and their taking one switches it on. Replace generic child and adult flags with each programme's legal definitions #1896 also fixes this.

Fix

Limit these sums and tests to claimants (is_uc_claimant, at most the two eldest, as #1973's reg 62(3) couple rule already does).

Activity

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