Mr Maher Hsnatou v Secretary of State for Work and Pensions (UC): [2026] UKUT 126 (AAC)
Upper Tribunal Administrative Appeals Chamber decision by Judge Sutherland Williams on 16 March 2026.
Read the full decision in .
Judicial Summary
In order to be eligible for the housing costs element, a claimant must meet the three basic conditions in regulation 25(2)–(4) of the Universal Credit Regulations 2013: the payment condition, the liability condition, and the occupation condition. An agreement to pay money to a tenant-in-common in return for occupation of jointly owned property does not, without more, establish that an individual is “liable to pay rent” within the meaning of regulation 25. The housing costs element of Universal Credit is intended to meet payments securing a person’s occupation of their home. It is not designed to meet discretionary or compensatory payments made to another co‑owner who does not reside there. To qualify for UC housing costs, there must be a legal liability to pay rent, and it must be reasonable having regard to all the circumstances and the statutory purpose of the UC scheme. The mere fact that the payment pattern or amount bears superficial resemblance to rent does not confer a commercial character upon the arrangement.