Social Security Administration Act 1992

[F1 15A Payment out of benefit of sums in respect of mortgage interest etc U.K.

(1) This section applies in relation to cases where—

(a) mortgage interest is payable to a qualifying lender by a person (“the borrower”) who is entitled, or whose partner, former partner or qualifying associate is entitled, to [F2 universal credit,] income support[F3 , an income-based jobseeker's allowance or an income-related employment and support allowance]; and

(b) a sum in respect of that mortgage interest is or was brought into account in determining [F4 the maximum amount for the purposes of universal credit or] the applicable amount for the purposes of income support[F3 , an income-based jobseeker's allowance or an income-related employment and support allowance] in the case of the borrower or the partner, former partner or qualifying associate;

and any reference in this section to “the relevant beneficiary” is a reference to the person whose [F5 maximum amount for the purposes of universal credit or] applicable amount for the purposes of income support[F3 , an income-based jobseeker's allowance or an income-related employment and support allowance] is or was determined as mentioned in paragraph (b) above.

[F6 (1A) This section also applies in relation to cases where—

(a) mortgage interest is payable to a qualifying lender by a person (also referred to as “the borrower”) who is, or whose partner, or former partner or qualifying associate is, entitled to state pension credit; and

(b) a sum in respect of that mortgage interest is or was brought into account in determining the appropriate minimum guarantee for the purposes of state pension credit in the case of the borrower or the partner, former partner or qualifying associate;

and any reference in this section to “the relevant beneficiary” includes a reference to the person whose appropriate minimum guarantee for the purposes of state pension credit is or was determined as mentioned in paragraph (b) above.]

(2) Without prejudice to paragraphs (i) and (p) of section 5(1) above, regulations may, in relation to cases where this section applies, make provision—

(a) requiring that, in prescribed circumstances, a prescribed part of any relevant benefits [F7 (other than state pension credit)] to which the relevant beneficiary is entitled shall be paid by the Secretary of State directly to the qualifying lender and applied by that lender towards the discharge of the liability in respect of the mortgage interest;

[F8 (aa) authorising or requiring that, in prescribed circumstances, a prescribed part of any state pension credit to which the relevant beneficiary is entitled may (or, as the case may be, 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 the mortgage interest;]

(b) for the expenses of the Secretary of State in administering the making of payments under the regulations to be defrayed, in whole or in part, at the expense of qualifying lenders, whether by requiring them to pay prescribed fees or by deducting and retaining a prescribed part of the payments that would otherwise be made to them under the regulations or by such other method as may be prescribed;

(c) for requiring a qualifying lender, in a case where by virtue of paragraph (b) above the amount of the payment made to him under the regulations is less than it would otherwise have been, to credit against the liability in respect of the mortgage interest (in addition to the payment actually made) an amount equal to the difference between—

(i) the payment that would have been so made, apart from paragraph (b) above; and

(ii) the payment actually made;

and, in any such case, for treating the amount so credited as properly paid on account of benefit due to the relevant beneficiary;

(d) for enabling a body which, or person who, would otherwise be a qualifying lender to elect not to be regarded as such for the purposes of this section, other than this paragraph;

(e) for the recovery from any body or person—

(i) of any sums paid to that body or person by way of payment under the regulations that ought not to have been so paid; or

(ii) of any fees or other sums due from that body or person by virtue of paragraph (b) above;

(f) for cases where the same person is the borrower in relation to mortgage interest payable in respect of two or more different loans; and

(g) for any person of a prescribed class or description who would otherwise be regarded for the purposes of this section as the borrower in relation to any mortgage interest not to be so regarded, except for the purposes of this paragraph;

but the Secretary of State shall not make any regulations under paragraph (b) above unless he has consulted with such organisations representing qualifying lenders likely to be affected by the regulations as he considers appropriate.

(3) The bodies and persons who “qualifying lenders” for the purposes of this section are—

[F9 (a) a deposit taker,]

F10 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F11 (c) an insurer],

(d) any county council, [F12 county borough council,] district council F13 ... or London Borough Council,

(e) the Common Council of the City of London,

[F14 (ee) any council constituted under section 2 of the M1 Local Government etc. (Scotland) Act 1994],

(f) the Council of the Isles of Scilly,

(g) any new town corporation,

and such bodies or persons not falling within the above paragraphs as may be prescribed.

(4) In this section—

• [F15 “appropriate minimum guarantee” has the meaning given by section 2(3) of the State Pension Credit Act 2002;]

• [F16 “deposit taker” means—

  (a)

  a person who has permission under [F17 Part 4A] of the Financial Services and Markets Act 2000 to accept deposits, or

  (b)

  an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits;

• “insurer” means—

  (a)

  a person who has permission under [F17 Part 4A] of the Financial Services and Markets Act 2000 to effect and carry out contracts of insurance, or

  (b)

  an EEA firm of the kind mentioned in [F18 paragraph 5(d)] of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect and carry out contracts of insurance;]

• “mortgage interest” means interest on a loan which is secured by a mortgage of or charge over land, or (in Scotland) by a heritable security, and which has been taken out to defray money applied for any of the following purposes, that is to say—

  (a)

  acquiring any residential land which was intended, at the time of the acquisition, for occupation by the borrower as his home;

  (b)

  carrying out repairs or improvements to any residential land which was intended, at the time of taking out the loan, for occupation by the borrower as his home

  (c)

  paying off another loan; or

  (d)

  any prescribed purpose not falling within paragraphs (a) to (c) above;

  but interest shall be regarded as mortgage interest by virtue of paragraph (c) above only to the extent that interest on that other loan would have been regarded as mortgage interest for the purposes of this section had the loan not been paid off;

• “partner” means—

  (a)

  any person [F19 who is married to, or a civil partner of, the borrower] and who is a member of the same household as the borrower; or

  (b)

  any person [F20 who is neither married to, nor a civil partner of, the borrower but who lives together with the borrower as [F21 husband and wife or as if they were civil partners][F21 if they were a married couple]], otherwise than in prescribed circumstances;

  and “former partner” means a person who has at some time been, but no longer is, the borrowers's partner;

• “qualifying associate”, in relation to the borrower, means a person who, for the purposes of income support[F22 , an income-based jobseeker’s allowance[F23 , state pension credit or an income-related employment and support allowance],] [F24 or universal credit] falls to be treated by regulations under Part VII of the Contributions and Benefits Act [F25 or (as the case may be) under the Jobseekers Act 1995][F23 , the State Pension Credit Act 2002 or Part 1 of the Welfare Reform Act 2007] [F26 or Part 1 of the Welfare Reform Act 2012] as responsible for so much of the expenditure which relates to housing costs (within the meaning of those regulations) as consists of any of the mortgage interest payable by the borrower, and who falls to be so treated because—

  (a)

  the borrower is not meeting those costs, so that the person has to meet them if he is to continue to live in the dwelling occupied as his home; and

  (b)

  the person is one whom it is reasonable, in the circumstances, to treat as liable to meet those costs;

• “relevant benefits” means such of the following benefits as may be prescribed, namely—

  (za)

  [F27 universal credit;]

  (a)

  benefits, as defined in section 122 of the Contributions and Benefits Act;

  (aa)

  [F28 a jobseeker's allowance;]

  (b)

  income support;

  (c)

  [F29 state pension credit;]

  (d)

  [F30 an employment and support allowance;]

• “residential land” means any land which consists of or includes a dwelling.

[F31 (4A) The definitions of “deposit taker” and “insurer” in subsection (4) must be read with—

(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.]

[F32 (4B) [F33 For the purposes of this section, two people of the same sex are to be regarded as living together as if they were civil partners if, but only if, they would be regarded as living together as husband and wife were they instead two people of the opposite sex.]]

(5) For the purposes of this section, regulations may make provision—

(a) as to circumstances in which residential land is or is not to be treated as intended for occupation by the borrower as his home; or

(b) as to circumstances in which persons are to be treated as being or not being members of the same household.]

Textual Amendments

F1 S. 15A and cross-heading inserted (1.7.1992) by Social Security (Mortgage Interest Payments) Act 1992 (c. 33), Sch. para. 1

F2 Words in s. 15A(1)(a) inserted (25.2.2013) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 2 para. 6(2)(a); S.I. 2013/358, art. 2(2), Sch. 2 para. 40

F3 Words in s. 15A(1) substituted (18.3.2008 for specified purposes, 27.10.2008 in so far as not already in force) by Welfare Reform Act 2007 (c. 5), s. 70(2), Sch. 3 para. 10(5)(a); S.I. 2008/787, art. 2(1)(4)(f), Sch.

F4 Words in s. 15A(1)(b) inserted (25.2.2013) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 2 para. 6(2)(b); S.I. 2013/358, art. 2(2), Sch. 2 para. 40

F5 Words in s. 15A(1) inserted (25.2.2013) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 2 para. 6(2)(c); S.I. 2013/358, art. 2(2), Sch. 2 para. 40

F6 S. 15A(1A) inserted (2.7.2002 for specified purposes, 6.10.2003 in so far as not already in force) by State Pension Credit Act 2002 (c. 16), s. 22(3), Sch. 2 para. 9(2); S.I. 2002/1691, art. 2(l); S.I. 2003/1766, art. 2(a)

F7 Words in s. 15A(2)(a) inserted (2.7.2002 for specified purposes, 6.10.2003 in so far as not already in force) by State Pension Credit Act 2002 (c. 16), s. 22(3), Sch. 2 para. 9(3); S.I. 2002/1691, art. 2(l); S.I. 2003/1766, art. 2(a)

F8 S. 15A(2)(aa) inserted (2.7.2002 for specified purposes, 6.10.2003 in so far as not already in force) by State Pension Credit Act 2002 (c. 16), s. 22(3), Sch. 2 para. 9(4); S.I. 2002/1691, art. 2(l); S.I. 2003/1766, art. 2(a)

F9 S. 15(3)(a) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 330(2)(a)

F10 S. 15A(3)(b) repealed (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 330(2)(b)

F11 S. 15A(3)(c) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 330(2)(c)

F12 Words in s. 15A(3)(d) inserted (1.4.1996) by Local Government (Wales) Act 1994 (c. 19), s. 66(3), Sch. 8 para. 11; S.I. 1996/396, art. 3, Sch.1

F13 Words in s. 15A(3)(d) omitted (1.4.1996) by Local Government etc. (Scotland) Act 1994 (c. 39), s. 184(2), Sch. 13 para. 175(2)(a), Sch. 14; S.I. 1996/323, art. 4(c)(d), Sch. 2

F14 S. 15A(3)(ee) inserted (1.4.1996) by Local Government etc. (Scotland) Act 1994 (c. 39), s. 184(2), Sch. 13 para. 175(2)(b); S.I. 1996/323, art. 4(c)

F15 Words in s. 15A(4) inserted (2.7.2002 for specified purposes, 6.10.2003 in so far as not already in force) by State Pension Credit Act 2002 (c. 16), s. 22(3), Sch. 2 para. 9(5)(a); S.I. 2002/1691, art. 2(l); S.I. 2003/1766, art. 2(a)

F16 Words in s. 15A(4) inserted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 330(3)

F17 Words in s. 15A(4) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 74(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F18 Words in s. 15A(4) substituted (3.7.2002) by The Financial Services and Markets Act 2000 (Consequential Amendments) Order 2002 (S.I. 2002/1555), arts. 1, 17

F19 Words in s. 15A(4) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(8)(d), Sch. 24 para. 57(2)(a); S.I. 2005/3175, art. 2(1), Sch. 1

F20 Words in s. 15A(4) substituted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(8)(d), Sch. 24 para. 57(2)(b); S.I. 2005/3175, art. 2(1), Sch. 1

F21 Words in s. 15A(4) substituted (E.W.) (13.3.2014) by The Marriage (Same Sex Couples) Act 2013 (Consequential and Contrary Provisions and Scotland) Order 2014 (S.I. 2014/560), art. 1(2), Sch. 1 para. 23(a)

F22 Words in s. 15A(4) substituted (2.7.2002 for specified purposes, 6.10.2003 in so far as not already in force) by State Pension Credit Act 2002 (c. 16), s. 22(3), Sch. 2 para. 9(5)(b)(i); S.I. 2002/1691, art. 2(l); S.I. 2003/1766, art. 2(a)

F23 Words in s. 15A(4) substituted (18.3.2008 for specified purposes, 27.10.2008 in so far as not already in force) by Welfare Reform Act 2007 (c. 5), s. 70(2), Sch. 3 para. 10(5)(b); S.I. 2008/787, art. 2(1)(4)(f), Sch.

F24 Words in s. 15A(4) inserted (25.2.2013) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 2 para. 6(3)(a)(i); S.I. 2013/358, art. 2(2), Sch. 2 para. 40

F25 Words in s. 15A(4) inserted (22.4.96) by Jobseekers Act 1995 (c. 18), s. 41(2), Sch. 2 para. 40(3)(b); S.I. 1996/1126, art. 2(a)

F26 Words in s. 15A(4) inserted (25.2.2013) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 2 para. 6(3)(a)(ii); S.I. 2013/358, art. 2(2), Sch. 2 para. 40

F27 Words in s. 15A(4) inserted (25.2.2013) by Welfare Reform Act 2012 (c. 5), s. 150(3), Sch. 2 para. 6(3)(b); S.I. 2013/358, art. 2(2), Sch. 2 para. 40

F28 Words in s. 15A(4) inserted (22.4.1996) by Jobseeker's Act 1995 (c. 18), s. 41(2), Sch. 2 para. 40(4); S.I. 1996/1126, art. 2(a)

F29 Words in s. 15A(4) inserted (2.7.2002 for specified purposes, 6.10.2003 in so far as not already in force) by State Pension Credit Act 2002 (c. 16), s. 22(3), Sch. 2 para. 9(5)(c); S.I. 2002/1691, art. 2(l); S.I. 2003/1766, art. 2(a)

F30 S. 15A(4)(d) inserted (18.3.2008 for specified purposes, 27.10.2008 in so far as not already in force) by Welfare Reform Act 2007 (c. 5), s. 70(2), Sch. 3 para. 10(5)(c); S.I. 2008/787, art. 2(1)(4)(f), Sch.

F31 S. 15A(4A) inserted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 330(4)

F32 S. 15A(4B) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(8)(d), Sch. 24 para. 57(3); S.I. 2005/3175, art. 2(1), Sch. 1

F33 S. 15A(4B) omitted (E.W.) (13.3.2014) by virtue of The Marriage (Same Sex Couples) Act 2013 (Consequential and Contrary Provisions and Scotland) Order 2014 (S.I. 2014/560), art. 1(2), Sch. 1 para. 23(b)

Marginal Citations

M1 1994 c. 39.