Statutory Instrument 1992 No. 1026

The Social Security (Claims and Payments) Amendment Regulations 1992

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© Crown Copyright 1992

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1992 No. 1026

COMMUNITY CHARGES, ENGLAND AND WALES COMMUNITY CHARGES, SCOTLAND SOCIAL SECURITY

The Social Security (Claims and Payments) Amendment Regulations 1992

The Secretary of State for Social Security, in exercise of the powers conferred by section 166(2) of the Social Security Act 1957^[1], sections 51(1)(r), 51C(1) and 84(1) of the Social Security Act 1986^[2], section 22(3) of, and paragraph 6 of Schedule 4 to, the Local Government Finance Act 1988^[3], section 31(3) of, and paragraph 7A of Schedule 2 to the Abolition of Dosmetic Rates Etc. (Scotland) Act 1987^[4] and those provisions as read with paragraph 11 of Schedule 5 to that Act^[5] and with the Community Water Charges (Scotland) Regulations 1988^[6] made thereunder, and section 2(4) of the Social Security (Mortgage Interest Payments) Act 1992^[7] and of all other powers enabling him in that behalf, after consultation with organisations representing qualifying lenders likely to be affected by the Regulations^[8], by this instrument, which contains only regulations made consequential upon section 1 of the Social Security (Mortgage Interest Payments) Act 1992, hereby makes the following Regulations:

Citation and commencement
    1.—(1)  These Regulations may be cited as the Social Security (Claims and Payments) Amendment Regulation 1992.

    (2)  This regulation and the Schedule to these Regulations in so far as it relates to paragraphs 1 and 9 of Schedule 9A to the Claims and Payments Regulations shall come into force on 29th April 1992.

    (3)  The provisions of these Regulations other than those referred to in paragraph (2) above shall, to the extent that they relate to claims for any relevant benefits—
 (a) made on or after 25th May 1992; or
 (b) made before 25th May 1992 but determined after that date,
come into force on 25th May 1992.

    (4)  The provisions of these Regulations other than those referred to in paragraph (2) above shall, in relation to a particular beneficiary, come into force on the date the first determination is made by an adjudication officer in respect of that beneficiary's award of any relevant benefit on or after 25th May 1992.

Interpretation
    2.    In these Regulations—

"the Claims and Payments Regulations" means the Social Security (Claims and Payments) Regulations 1987^[9];

"the Community Charges Regulations" means the Community Charges (Deductions from Income Support) (No.2) Regulations 1990^[10];

"the Community Charges (Scotland) Regulations" means the Community Charges (Deductions from Income Support) (Scotland) Regulations 1989^[11];

"relevant benefits" has the meaning given to it by paragraph 5 of Schedule 9A to the Claims and Payments Regulations^[12].

Insertion of regulations 34A into the Claims and Payments Regulations
    3.    After regulation 34 of the Claims and Payments Regulations there shall be inserted the following regulation—

"Deductions of mortgage interest which shall be made from benefit and paid to qualifying lenders
    34A—(1)  In relation to cases to which section 51C(1) of the Social Security Act 1986 (payment out of benefit of sums in respect of mortgage interest etc.) applies and in the circumstances specified in Schedule 9A, such part of any relevant benefits to which a relevant beneficiary is entitled as may be specified in that Schedule shall be paid by the Secretary of State directly to the qualifying lender and shall be applied by that lender towards the discharge of the liability in respect of that mortgage interest^[13].

    (2)  The provisions of Schedule 9A shall have effect in relation to mortgage interest payments." .

Amendment of regulation 35 of the Claims and Payments Regulations
    4.    In regulation 35(1) of the Claims and Payments Regulations for the words preceding the words "may be made from benefit and", there shall be substituted the words—

"Deductions which may be made from benefit and paid to third parties
    35.—(1)  Except as provided for in regulation 34A and Schedule 9A, deductions" .

Amendment of Schedule 9 to the Claims and Payments Regulations
    5.—(1)  Schedule 9 to the Claims and Payments Regulations shall be amended in accordance with the following provisions of this regulation.

    (2)  In paragraph 3—
 (a) in sub-paragraph (1), for the words "sub-paragraph (4)" there shall be substituted the words "sub-paragraphs (4) to (6)";
 (b) in sub-paragraph (2), for the words "Subject to sub-paragraph (3)", there shall be substituted the words "Subject to sub-paragraphs (2A) and (3)";
 (c) after sub-paragraph (2), there shall be inserted the following sub-paragraph—
"  (2A)  Where a payment falls to be made to a third party in accordance with this Schedule, and—
(a) more than one item of housing costs falls to be taken into account in determining the beneficiary's applicable amount; and

(b) in accordance with paragraph 10 or paragraph 11 of Schedule 3 to the Income Support Regulations an amount is not allowed or a deduction falls to be made from the amount to be met by way of housing costs,

then in calculating the amount deductible, the weekly aggregate ascertained in accordance with sub-paragraph (2) shall be reduced by an amount determined by applying the formula—

C × B A

where— A = housing costs; B = the item of housing costs which falls to be paid to a third party under this Schedule; C = the sum which is not allowed or falls to be deducted in accordance with paragraph 10 or, as the case may be, paragraph 11 of Schedule 3 to the Income Support Regulations.

" ; and

 (d) after sub-paragraph (4) there shall be added the following sub-paragraphs—
"  (5)  No amount shall be paid pursuant to this paragraph in respect of mortgage interest in any case where a specified part of relevant benefits—
(a) is required to be paid directly to a qualifying lender under regulation 34A and Schedule 9A; or

(b) would have been required to be paid to a body which, or a person who, would otherwise have been a qualifying lender but for an election given under paragraph 9 of Schedule 9A not to be regarded as such.


    (6)  In sub-paragraph (5), "specified part" and "relevant benefits" have the meanings given to them in paragraph 1 of Schedule 9A." .


    (3)  In paragraph 8—
 (a) in sub-paragraph (1), after the words "and 7(5)(a)" there shall be inserted the words "and sub-paragraph 3(5) of Schedule 9A"; and
 (b) after sub-paragraph (2) there shall be added the following sub-paragraph—
"  (3)  Where the aggregate of the amounts payable under the provisions mentioned in sub-paragraph (2) does not exceed the sum there mentioned "the specified sum") but does exceed that sum where the aggregate includes in addition any amount required to be paid in accordance with paragraph 3(5) of Schedule 9A, then in relation to the amounts payable under the provisions mentioned in sub-paragraph (2) the consent of the beneficiary is required to the payment of so much of the specified sum as represents the amount by which that sum is so exceeded." .


    (4)  In paragraph 9—
 (a) after the words "applicable to the beneficiary" there shall be inserted the words "or one or more of those paragraphs are applicable to the beneficiary and Schedule 9A also applies"; and
 (b) after the words "priorities shall apply—" there shall be inserted the following head—
(za) "any liability mentioned in Schedule 9A;" .

Insertion of Schedule 9A into the Claims and Payments Regulations
    6.    After Schedule 9 to the Claims and Payments Regulations there shall be inserted the Schedule set out in the Schedule to these Regulations.

Amendment of the Community Charges Regulations and the Community Charges (Scotland) Regulations
    7.    In regulation 2(4)(b) of both the Community Charges Regulations and the Community Charges (Scotland) Regulations, after the words "priorities shall apply—" there shall be inserted the following head—
(zi) "any liability mentioned in regulation 34A of the Social Security (Claims and Payments) Regulations 1987 (mortgage interest);" .

Signed by authority of the Secretary of State for Social Security.

Nicholas Scott

Minister of State, Department of Social Security

24th April 1992

[1] 1975 c. 14. Section 166(2) is applied to the powers to make regulations in the Social Security Act 1986 ( "the 1986 Act") by section 83 of that Act and to the powers to make regulations in the Social Security (Mortgage Interest Payments) Act 1992 ( "the 1992 Act") by section 2(5) of that Act. back

[2] 1986 c. 50. Section 51C was inserted by section 1(1) of the 1992 Act and section 84(1) is cited because of the meaning it ascribes to the words "prescribed"and "regulations". back

[3] 1988 c. 41. back

[4] 1987 c. 47. Paragraph 7A was inserted by the Local Government Finance Act 1988 (c. 41), Schedule 12, paragraph 36(10). back

[5] Paragraph 11 was amended by the Local Government Finance Act 1988, Schedule 12, paragraph 38. back

[6] S.I. 1988/1538; to which the relevant amendment is S.I. 1990/113. back

[7] 1992 c. 33. back

[8] Seesection 51C(2) of the 1986 Act. back

[9] S.I. 1987/1968; relevant amending instruments are S.I. 1988/522, 1990/2208 and 1991/2284. back

[10] S.I. 1990/545. back

[11] S.I. 1989/507. back

[12] Schedule 9A is introduced by regulation 6 of, and the Schedule to, these Regulations. back

[13] Seesection 51C of the Social Security Act 1986 for definitions of "relevant benefits", "relevant beneficiary", "qualifying lender"and "mortgage interest". back

Explanatory Note