Rent Act 1974

12 Rent allowances in Scotland

(1) On and after such day as the Secretary of State may by order made by statutory instrument appoint, so much of section 16 of the Act of 1972 (rent allowances) as requires that, for certain persons to be or to be treated as private tenants, they must be qualified persons within the meaning of subsection (8) of that section, shall cease to have effect.

(2) In paragraph 15(1)(g)(ii) of Schedule 3 to the Act of 1972 (which provides that in ascertaining the amount of an allowance in respect of a furnished letting a certain amount of rent payable is to be disregarded), the words " 125 per cent. of " shall cease to have effect on the commencement date.

(3) Notwithstanding anything in subsection (2) above, in the case of a person who immediately before the commencement date was a tenant of a dwelling-house under a furnished letting, the provisions of subsection (4) below shall apply, if, for an allowance period which was current on or ended immediately before that date, the tenant was entitled to an allowance towards the rent payable under the furnished letting which was calculated, for the last week of that period which ended before that date, by reference to an amount of rent which, after making the deduction (if any) required by head (i) of paragraph 15(1)(g) of Schedule 3 to the Act of 1972, was more than the estimated fair rent referred to in head (ii) of that paragraph but not more than 125 per cent. of that estimated fair rent.

(4) If, by virtue of subsection (3) above, this subsection applies in relation to a tenant, then, if and so long as he continues on and after the commencement date to be—

(a) a tenant of the same dwelling-house under the same letting (whether or not it continues to be a furnished letting) and

(b) entitled to an allowance towards the rent under the letting concerned,

the allowance shall be calculated by reference to the amount of rent referred to in subsection (3) above until—

(i) the rent recoverable from the tenant for any week of an allowance period is less than the amount referred to in that subsection, or

(ii) the amount of rent by reference to which, but for this subsection, the allowance for any such week would be calculated is higher than the amount referred to in subsection (3) above,

whichever is the earlier; and as from the beginning of that week the allowance shall be calculated by reference to the amount of rent to which an authority would be entitled to have regard but for this subsection.

(5) Paragraph 17 of Schedule 2 to the Act of 1972 shall be amended as follows—

(a) in sub-paragraph (1) for the words " sub-paragraph (2) below" there shall be substituted the words " the following provisions of this paragraph ";

(b) at the end there shall be added the following sub-paragraphs—

“(3) It shall be the duty of every authority, for the purpose of computing the amount of an allowance towards the rent payable by tenants of such classes as may be prescribed who are for the time being in receipt of—

(a) an award or grant, being a bursary, scholarship or allowance granted under section 49(1) or 75(f) of the [1962 c. 47.] Education (Scotland) Act 1962, or

(b) any other award or grant which is paid out of money provided by Parliament and is determined by the Secretary of State to be analagous to any such bursary, scholarship or allowance,

to treat the rent as reduced by such amount as may be prescribed.

(4) In sub-paragraph (3) above " prescribed " means prescribed by regulations made by the Secretary of State by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(5) Regulations under this paragraph may make different provision in relation to different periods and different classes of awards or grants.”

(6) In this section "the Act of 1972" means the [1972 c. 46.] Housing (Financial Provisions) (Scotland) Act 1972; and section 22 of the Act of 1972 (interpretation of Part II of that Act) shall apply in relation to this section as if it were included in that Part.