EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend and modify the housing costs provisions in the Income Support (General) Regulations (Northern Ireland) 1987 (“the Income Support Regulations”), the Jobseeker’s Allowance Regulations (Northern Ireland) 1996 (“the Jobseeker’s Allowance Regulations”), the State Pension Credit Regulations (Northern Ireland) 2003 (“the State Pension Credit Regulations”) and the Employment and Support Allowance Regulations (Northern Ireland) 2008 (“the Employment and Support Allowance Regulations”).

Part 1 amends the standard rate which is used to calculate the amount of interest on a loan that will be met under the Regulations referred to above. It provides that the standard rate is to be 6.08% instead of the rate being determined by reference to the Bank of England base rate.

Part 2 modifies the Income Support Regulations, the Jobseeker’s Allowance Regulations and the Employment and Support Allowance Regulations, in relation to certain existing claimants who are entitled to income support, a jobseeker’s allowance or an employment and support allowance (“a relevant benefit”) on 4th January 2009.

Regulation 3 deals with the application of Part 2. It provides that Part 2 applies where the claimant is not entitled to housing costs because the person does not satisfy the applicable waiting period or (in some cases) he or she is entitled to housing costs at a reduced rate. Regulation 3 also provides that Part 2 does not apply if a person makes a further claim to a relevant benefit after 4th January 2009.

In the case of a claimant to whom Part 2 applies, regulations 4 to 6 modify the provisions relating to the housing costs that can be met by income support, a jobseeker’s allowance or an employment and support allowance in the following ways:

Regulation 7 is a savings provision and clarifies that Part 2 does not affect the amount of housing costs to which a person is entitled in respect of a period ending before these Regulations come into operation or in respect of a period which ends after that date during which the person is entitled to the benefit concerned for a continuous period that does not exceed 12 weeks.

Part 3 concerns certain persons who claim a relevant benefit after 4th January 2009.

Regulation 8 deals with the application and interpretation of Part 3. It provides that this Part applies where Part 2 applied to the person at any time. It also provides that Part 3 applies where a person claims or claimed a relevant benefit at any time after 4th January 2009:

Part 3 makes the following modifications to the housing costs provisions of the Income Support Regulations, the Jobseeker’s Allowance Regulations and the Employment and Support Allowance Regulations in relation to a person to whom that Part applies:

Part 4 modifies the State Pension Credit Regulations with the result that in certain cases the maximum appropriate amount in respect of loans which qualify under those Regulations is £200,000. Part 4 applies where a person or his or her partner was in receipt of housing costs under Part 2 or 3 of these Regulations and the person becomes entitled to state pension credit within 12 weeks of that entitlement ending.