Arathoon v Secretary of State for Work & Pensions

Arathoon v Secretary of State for Work & Pensions

An increase in the standard rate of interest only reduces the 'add back' under paragraph 7(3) and (4) if it causes housing costs to exceed those applicable in the second benefit week. Increases below that threshold do not reduce the add back. However, repeat increases above the second benefit week level can cause further reductions.

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
Civil Appeal / Appeal From Social Security Commissioner to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Income Support, Housing Costs, Statutory Interpretation, Transitional Provisions
Social Security Law Income Support Housing Costs Statutory Interpretation Transitional Provisions

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Parties

Denise Christina Arathoon

Claimant/respondent

Secretary of State for Work and Pensions

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Social Security Commissioner to Court of Appeal

Legal Issues

  1. 1 Proper interpretation of paragraph 7(3) and (4) of Schedule 3 to the Income Support (General) Regulations 1987 regarding reduction of 'add back' in housing costs for income support claimants.

Ratio Decidendi

An increase in the standard rate of interest only reduces the 'add back' under paragraph 7(3) and (4) if it causes housing costs to exceed those applicable in the second benefit week. Increases below that threshold do not reduce the add back. However, repeat increases above the second benefit week level can cause further reductions.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs; parties to agree costs, failing which the matter to be referred to Buxton LJ and then to a costs judge.