Welfare Reform Act 2012
2012 CHAPTER 5
Commentary on Sections
Part 3: Other benefit changes
Section 72: Determination of amount or value of budgeting loan
351.Section 140(1A) of the SSCBA 1992 sets out the factors to which decision makers are to have regard when considering applications for payments by way of social fund budgeting loans. Section 140(2) provides that the decision maker shall determine questions in accordance with the directions issued by the Secretary of State. For budgeting loans, the decision maker is required by section 140(1A)(b) to have regard, subject to directions and guidance under subsection (2), to any relevant allocation made by the Secretary of State under section 168 of the SSAA 1992. Using this allocation, the Secretary of State sets a national loans budget, and issues directions and guidance to decision makers who are required to apply a baseline figure when calculating the amount of a budgeting loan.
352.Section 71(2) amends section 140 to state in subsection (4) that the amount of a budgeting loan may be restricted to a maximum sum as specified in a direction made by the Secretary of State and subsection (3) inserts new subsection (4ZA) to provide that directions may require the maximum sum to be arrived at by reference to the baseline figure which is described in new subsection (4ZB).
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