2004 No. 461

SOCIAL SECURITY

The Social Security (Housing Costs Amendments) Regulations (Northern Ireland) 2004

Made4th November 2004

Coming into operation in accordance with regulation 1(1)

The Department for Social Development, in exercise of the powers conferred by sections 122(1)(a), 131(1) and 171(1) and (3) to (5) of the Social Security Contributions and Benefits (Northern Ireland) Act 19921, Articles 6(5) and 36(2) of the Jobseekers (Northern Ireland) Order 19952 and sections 2(3)(b) and 19(1) to (3) of the State Pension Credit Act (Northern Ireland) 20023, and now vested in it4, and of all other powers enabling it in that behalf, hereby makes the following Regulations:

Citation, commencement and interpretation1.

(1)

These Regulations may be cited as the Social Security (Housing Costs Amendments) Regulations (Northern Ireland) 2004 and shall come into operation –

(a)

except for the purposes of regulation 5(a), on 28th November 2004, and

(b)

for the purposes of regulation 5(a), on 28th November 2005.

(2)

The Interpretation Act (Northern Ireland) 19545 shall apply to these Regulations as it applies to an Act of the Assembly.

Amendment of the Income Support (General) Regulations2.

In Schedule 36 to the Income Support (General) Regulations (Northern Ireland) 19877 (housing costs) –

(a)

in paragraph 1(2)8 (interpretation) –

F1(i)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii)

in the definition of “standard rate” for “specified in”, there shall be substituted “determined in accordance with”;

(b)

in paragraph 109 (the calculation for loans), in the explanation of “B”, for “specified in respect of that loan under paragraph 12” there shall be substituted “applicable in respect of that loan”;

(c)

for paragraph 1210 (the standard rate) there shall be substituted the following paragraph –

“12.
(1)
The standard rate is the rate of interest applicable per annum to a loan which qualifies under this Schedule.
(2)
Subject to sub-paragraphs (3), (4) and (6), the standard rate shall be 1.58 per cent. plus –
(a)
the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets, or
(b)
where an order under section 19 of the Bank of England Act 199811 (reserve powers) is in force, any equivalent rate determined by the Treasury under that section.
(3)
The Department shall determine the date from which the standard rate calculated in accordance with sub-paragraph (2) takes effect12.
(4)
Where –
(a)
the actual rate of interest charged on the loan which qualifies under this Schedule is less than 5 per cent. per annum on the day the housing costs first fall to be met, and
(b)
that day occurs before 28th November 2004,
the standard rate shall be equal to that actual rate.
(5)
Sub-paragraph (4) shall cease to apply in a particular case to any one or more loans which fall within that sub-paragraph on whichever of the following dates occurs first –
(a)
the date on which the actual rate of interest charged on such a loan is 5 per cent. per annum or higher,
(b)
the anniversary of the date on which the housing costs first fell to be met, or
(c)
where a supersession decision based on a change of circumstances arising on or after 28th November 2004 is made under Article 11 of the Social Security (Northern Ireland) Order 1998 (decisions superseding earlier decisions)13, the date of the change of circumstances.
(6)
Where sub-paragraph (4) does not apply to a loan which qualifies under this Schedule, the standard rate shall be 5.88 per cent. until the first date determined by the Department under sub-paragraph (3).”.

Amendment of the Jobseeker’s Allowance Regulations3.

In Schedule 2 to the Jobseeker’s Allowance Regulations (Northern Ireland) 199614 (housing costs) –

(a)

in paragraph 1(2) (interpretation) –

F2(i)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii)

in the definition of “standard rate” for “specified in”, there shall be substituted “determined in accordance with”;

(b)

in paragraph 915 (the calculation for loans), in the explanation of “B”, for “specified in respect of that loan under paragraph 11” there shall be substituted “applicable in respect of that loan”;

(c)

for paragraph 1116 there shall be substituted the following paragraph –

“11.
(1)
The standard rate is the rate of interest applicable per annum to a loan which qualifies under this Schedule.
(2)
Subject to sub-paragraphs (3), (4) and (6), the standard rate shall be 1.58 per cent. plus –
(a)
the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets, or
(b)
where an order under section 19 of the Bank of England Act 1998 (reserve powers) is in force, any equivalent rate determined by the Treasury under that section.
(3)
The Department shall determine the date from which the standard rate calculated in accordance with sub-paragraph (2) takes effect.
(4)
Where –
(a)
the actual rate of interest charged on the loan which qualifies under this Schedule is less than 5 per cent. per annum on the day the housing costs first fall to be met, and
(b)
that day occurs before 28th November 2004,
the standard rate shall be equal to that actual rate.
(5)
Sub-paragraph (4) shall cease to apply in a particular case to any one or more loans which fall within that sub-paragraph on whichever of the following dates occurs first –
(a)
the date on which the actual rate of interest charged on such a loan is 5 per cent. per annum or higher,
(b)
the anniversary of the date on which the housing costs first fell to be met, or
(c)
where a supersession decision based on a change of circumstances arising on or after 28th November 2004 is made under Article 11 of the Social Security (Northern Ireland) Order 1998 (decisions superseding earlier decisions), the date of the change of circumstances.
(6)
Where sub-paragraph (4) does not apply to a loan which qualifies under this Schedule, the standard rate shall be 5.88 per cent. until the first date determined by the Department under sub-paragraph (3).”.

Amendment of the State Pension Credit Regulations4.

In Schedule 2 to the State Pension Credit Regulations (Northern Ireland) 200317 (housing costs) –

(a)

in paragraph 1(2), in the definition of “standard rate” for “specified in”, there shall be substituted “determined in accordance with”;

(b)

in paragraph 7(1) (the calculation for loans), in the explanation of “B”, for “specified in respect of that loan under paragraph 9” there shall be substituted “applicable in respect of that loan”;

(c)

for paragraph 9 (the standard rate) there shall be substituted the following paragraph –

“9.
(1)
The standard rate is the rate of interest applicable per annum to a loan which qualifies under this Schedule.
(2)
Subject to sub-paragraphs (3), (4) and (6), the standard rate shall be 1.58 per cent. plus –
(a)
the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets, or
(b)
where an order under section 19 of the Bank of England Act 1998 (reserve powers) is in force, any equivalent rate determined by the Treasury under that section.
(3)
The Department shall determine the date from which the standard rate calculated in accordance with sub-paragraph (2) takes effect.
(4)
Where –
(a)
the actual rate of interest charged on the loan which qualifies under this Schedule is less than 5 per cent. per annum on the day the housing costs first fall to be met, and
(b)
that day occurs before 28th November 2004,
the standard rate shall be equal to that actual rate.
(5)
Sub-paragraph (4) shall cease to apply in a particular case to any one or more loans which fall within that sub-paragraph on whichever of the following dates occurs first –
(a)
the date on which the actual rate of interest charged on such a loan is 5 per cent. per annum or higher,
(b)
the anniversary of the date on which the housing costs first fell to be met, or
(c)
where a supersession decision based on a change of circumstances arising on or after 28th November 2004 is made under Article 11 of the Social Security (Northern Ireland) Order 1998 (decisions superseding earlier decisions), the date of the change of circumstances.
(6)
Where sub-paragraph (4) does not apply to a loan which qualifies under this Schedule, the standard rate shall be 5.88 per cent. until the first date determined by the Department under sub-paragraph (3).”.

Consequential Amendments5.

In Schedule 8B to the Social Security (Claims and Payments) Regulations (Northern Ireland) 198718 (deductions of mortgage interest from benefit and payment to qualifying lenders) –

(a)

in paragraph 2(a)19 (specified circumstances for the purposes of regulation 34ZA), “(whether at the full rate or a lesser rate)” shall be omitted;

(b)

in paragraph 10(2)(a)20 (recovery of sums wrongly paid), for “specified in” there shall be substituted “determined in accordance with”.

Sealed with the Official Seal of the Department for Social Development on 4th November 2004.

John O'Neill

A senior officer of the

Department for Social Development

(This note is not part of the Regulations.)

These Regulations amend the provisions of the Income Support (General) Regulations (Northern Ireland) 1987, the Jobseeker’s Allowance Regulations (Northern Ireland) 1996 and the State Pension Credit Regulations (Northern Ireland) 2003 (“the principal sets of Regulations”) allowing a claimant’s housing costs to be met. They also make minor consequential amendments to the Social Security (Claims and Payments) Regulations (Northern Ireland) 1987.

Regulations 2(a)(ii) and 3(a)(ii) amend Schedule 3 to the Income Support (General) Regulations (Northern Ireland) 1987 and Schedule 2 to the Jobseeker’s Allowance Regulations (Northern Ireland) 1996 respectively to provide the circumstances in which a claimant can remortgage and the standard rate will still be set by reference to the actual rate of interest on their loan.

Regulations 2(c), 3(c) and 4(c) substitute the same new provisions in the principal sets of Regulations. These new paragraphs set the standard rate which is used to calculate the amount of interest on a loan that will be met under those Regulations. The new sub-paragraphs (2) and (3) set the standard rate by reference to the Bank of England base rate from a date to be determined by the Department. The new sub-paragraph (4) applies to specified cases and sets the standard rate by reference to the actual rate of interest on a loan. By virtue of the new sub-paragraph (5) these specified cases will move onto the standard rate determined in accordance with the new sub-paragraph (2) during the year after these Regulations come into operation. The new sub-paragraph 6 sets the standard rate for a transitional period.

Regulation 5 makes consequential amendments to the Social Security (Claims and Payments) Regulations (Northern Ireland) 1987. Amendment (a) comes into operation a year after the other provisions in these Regulations by which time the wording omitted will be redundant.

These Regulations make in relation to Northern Ireland only provision corresponding to provision contained in Regulations made by the Secretary of State for Work and Pensions in relation to Great Britain and accordingly, by virtue of section 149(3) of, and paragraph 10 of Schedule 5 to, the Social Security Administration (Northern Ireland) Act 1992 (c. 8), are not subject to requirement of section 149(2) of that Act for prior reference to the Social Security Advisory Committee.

These Regulations do not impose a charge on business.