The Social Security (Claims and Payments) Amendment Regulations 1992

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Social Security (Claims and Payments) Regulations 1987 ( “the Claims and Payments Regulations”)and are consequential upon the coming into force of the Social Security (Mortgage Interest Payments) Act 1992 (c. 33) ( “the 1992 Act”). The instrument is made before the end of the period of 6 months beginning with the coming into force of that Act and the regulations in it are therefore exempted by section 61(5) of the Social Security Act 1986 (c. 50) (as amended by the Social Security Act 1989 (c. 24), Schedule 8, paragraph 12(3)) from the requirement under section 10 of the Social Security Act 1980 (c. 30) to refer the proposals to the Social Security Advisory Committee and are made without reference to that Committee.

Regulations 1 and 2 contain provisions relating to citation, commencement and interpretation.

Regulation 3 inserts a regulation 34A in the Claims and Payments Regulations which requires the Secretary of State to pay part of a beneficiary’s benefit directly to a qualifying lender (defined in section 1 of the 1992 Act) and requires that lender to apply the benefit so paid towards the discharge of the beneficiary’s liability to pay mortgage interest.

Regulations 4 and 5 make amendments to the Claims and Payments Regulations which are consequential upon the insertion of regulation 34A and regulation 7 makes consequential amendments to the Community Charges (Deductions from Income Support) (Scotland) Regulations 1989 and the Community Charges (Deductions from Income Support) (No. 2) Regulations 1990.

Regulation 6 adds a Schedule 9A to the Claims and Payments Regulations. In this Schedule—

(1) paragraph 1 contains provisions relating to interpretation;

(2) paragraph 2 prescribes the circumstances in which regulation 34A of the Claims and Payments Regulations applies;

(3) paragraph 3 prescribes the part of a beneficiary’s benefit which is to be paid directly to a qualifying lender;

(4) paragraph 4 set out how the part of a beneficiary’s benefit shall be paid directly when he is liable to pay mortgage interest on more than 1 loan;

(5) paragraph 5 prescribes the benefits from which a part may be paid directly to a qualifying lender;

(6) paragraph 6 provides for the time and manner of direct payments;

(7) paragraph 7 prescribes the fees to be paid by qualifying lenders;

(8) paragraph 8 prescribes the bodies and persons who are qualifying lenders in addition to those specified in section 1 of the 1992 Act;

(9) paragraph 9 enables a qualifying lender to elect not to be regarded as a qualifying lender;

(10) paragraph 10 specifies the information which a qualifying lender must give to the Secretary of State;

(11) paragraph 11 contains provisions relating to the recovery of sums wrongly paid.