Guidance

A4/2026: Social Security consequential amendments (four subject areas)

Updated 9 April 2026

Who should read

All Housing Benefit colleagues and wider if appropriate.

Action

For information.

Subject

• The Social Security (Removal of Two Child Limit) (Consequential Amendments) Regulations 2026  

• The Social Security (Scotland) Act 2018 (Carer’s Assistance) (Consequential Modifications) Order 2026 

• Mother and Baby Institutions Payment Scheme 

• State Pension and notional tax assessment

Guidance Manual

The information in this circular does affect the content of the Housing Benefit manual.

Please annotate this circular number against Chapter BW1: paragraphs 1.180, 1.216, 1.249, 1.280, 1.680 and Chapter BW2: paragraphs 2.20, 2.531 and Annex B and Chapter BP1: paragraphs 1.180, 1.280, 1.680 and Chapter BP2: paragraphs 2.20, 2.531, 2.612 and Annex B.

Queries

For queries about the:

• technical content of this circular, contact housing.policyenquiries@dwp.gov.uk
• distribution of this circular, contact lawelfare.correspondence@dwp.gov.uk 

Extra copies of this circular and copies of previous circulars can be found at Housing Benefit for local authorities: adjudication circulars.

Crown Copyright 2026.

Recipients may freely reproduce this circular.

Introduction

1. This circular provides guidance on:  

• The Social Security (Removal of Two Child Limit) (Consequential Amendments) Regulations 2026 (SI 2026/316)

• The Social Security (Scotland) Act 2018 (Carer’s Assistance) (Consequential Modifications) Order 2026 (SI 2026/246)

• the Mother and Baby Institutions Payment Scheme set up by the Irish Government 

• notional tax assessments for people receiving income from the State Pension

The Social Security (Removal of Two Child Limit) (Consequential Amendments) Regulations 2026

Background

2. The Universal Credit (Removal of Two Child Limit) Act 2026 makes provision to remove the policy of paying the child element for a maximum of two children in a household (subject to a limited number of exceptions) in Universal Credit (UC). As a result of this measure, a child element amount will be included in the UC calculation for each child or qualifying young person in the household, increasing the amount of welfare support available to families on UC with three or more children or qualifying young persons.

Amendment to the Housing Benefit Regulations 2006

3. The Social Security (Removal of Two Child Limit) (Consequential Amendments) Regulations 2026 (SI 2026/316) were made on 19 March 2026. These regulations ensure parity between UC and Housing Benefit (HB) claimants by removing the Two-child limit for Working Age HB claimants.

4. SI 2026/316 comes into force on 6 April 2026 so that, from that date, Working Age families on HB will now have all their children or qualifying young persons included in the HB award.

5. No amendments to the Pension age Housing Benefit Regulations are required because The Social Security (State Pension Age Claimants: Closure of Tax Credits) (Amendments) Regulations 2024 (SSI 2024/611) removed the Two-child limit for Pension age HB claimants from June 2024.

The Social Security (Scotland) Act 2018 (Carer’s Assistance) (Consequential Modifications) Order 2026

Background

6. The Scottish Government introduced changes to its carer’s assistance through The Carer’s Assistance (Miscellaneous and Consequential Amendments, Revocation, Transitional and Saving Provisions) (Scotland) Regulations 2025 (SSI 2025/340).

7. The relevant changes introduce Carer Support; an overarching benefit with three components:

• Carer Support Payment, and

• two new forms of carer’s assistance:

  • Carer Additional Person Payment

  • Scottish Carer Supplement

And provide that carers in receipt of Carer Support will continue to receive that benefit after the death of their cared-for person for 12 weeks instead of 8 weeks.

Amendments to Housing Benefit regulations

8. The Social Security (Scotland Act 2018 (Carer’s Assistance) (Consequential Modifications) Order 2026 (SI 2026/246) amends The Housing Benefit regulations 2006 (SI 2006/213) and The Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 (SI 2006/214) to reflect the changes made by the Scottish Government.

9. SI 2006/246 was made on 3 March 2026 and came into force on 15 March 2026. SI 2006/246 amends the definition of ‘Carer Support Payment’ in Regulation 2 of SI 2006/213 and SI 2006/214, so that it now means a payment of the ‘Carer Support Payment component of Carer Support’ rather than ‘Carer’s Assistance’. The Carer Support Payment component is treated the same way as Carer’s Allowance, so is treated as income and gives entitlement to a carer premium.

10. SI 2026/246 also amends SI 2006/213 and SI 2006/214, so that new components of carer’s assistance are not qualifying benefits for entitlement to a carer premium but are disregarded as capital and income when assessing entitlement.

11. SI 2026/246 amends the provisions for carer premium in both SI 2006/213 and SI 2006/214 so that, where the cared for person dies, entitlement to the carer premium continues for 12 weeks to mirror continued entitlement to the Carer Support Payment.

Mother and Baby Institutions Payment Scheme

12. The Irish Government has established the Mother and Baby Institutions Payment Scheme, which pays compensation to those who spent time in these institutions. The average payment is around £15,000, but payments can vary up to £105,000 (€125,000) in some cases. Some of the recipients of payments from the scheme now live in Great Britain.

13. The UK Government has decided, with effect from 13 March 2026, that these payments should be disregarded indefinitely as capital for income-related benefits including Pension Credit, UC and HB. This is on an ex-statutory basis until legislation is in place.

State Pension and notional tax assessment

14. When assessing income other than earnings, Regulation 33(12) of the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 (SI 2006/214) allows notional tax to be deducted from any income where the claimant has a tax liability. This provision applies to the treatment of income from the State Pension.

Example:

Sara has been receiving State Pension of £110.50 since April and claims HB on 5 June. The local authority, when calculating HB, estimates that Sara will be liable for £79 tax on this year’s State Pension. The amount of State Pension to be taken into account is calculated as follows:

£110.50 a week State Pension being paid less £1.52 a week tax [£79 divided by 52 and rounded up] = £108.98, which is the amount to be treated as income when assessing HB.