Arathoon v Secretary of State for Work & Pensions [2005] EWCA Civ 942 (24 June 2005)

Arathoon v Secretary of State for Work & Pensions [2005] EWCA Civ 942 (24 June 2005)

An increase in the standard rate of interest under Schedule 3, paragraph 7, only reduces the add back if it results in housing costs exceeding those applicable in the second benefit week. Increases below that threshold do not erode the add back. However, duplicate increases above the second benefit week level can result in further reductions of the add back.

Citation
[2005] EWCA Civ 942
Parties
Claimant/respondent: Denise Christina Arathoon; Defendant/appellant: Secretary of State for Work and Pensions
Jurisdiction
England and Wales
Judgment Date
24 June 2005
Procedural Posture
Appeal From Social Security Commissioner / Court of Appeal (civil Division) Judgment
Outcome
Appeal dismissed
Legal Topics
Income Support, Transitional Provisions, Housing Costs, Statutory Interpretation
Social Security Law Administrative Law Income Support Transitional Provisions Housing Costs Statutory Interpretation

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Parties

Denise Christina Arathoon

Claimant/respondent

Secretary of State for Work and Pensions

Defendant/appellant

Procedural Posture

Appeal From Social Security Commissioner / Court of Appeal (civil Division) Judgment

Legal Issues

  1. 1 Whether increases in the standard rate of interest below the initial standard rate under Schedule 3, paragraph 7 of the Income Support (General) Regulations 1987, reduce the 'add back' transitional protection for housing costs.
  2. 2 Whether duplicate increases in housing costs as compared with the second benefit week result in multiple reductions of the add back.

Ratio Decidendi

An increase in the standard rate of interest under Schedule 3, paragraph 7, only reduces the add back if it results in housing costs exceeding those applicable in the second benefit week. Increases below that threshold do not erode the add back. However, duplicate increases above the second benefit week level can result in further reductions of the add back.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs.
  • Parties to agree costs; if not, refer to Buxton LJ and then to a costs judge.