SCHEDULE 1TRANSITIONAL PROVISIONS

PART IIITHE SECOND STAGE

7

1

Subject to paragraph 9, following the projected review of income support for the tax year 1994—1995 in accordance with section 150 of the Administration Act43 (annual up-rating of benefits) and any consequential order up-rating income support made under that section, a resident’s protected amount shall be increased by 33 per cent of the difference between—

a

the amount which in respect of the first full week after the date on which that order comes into force44 he would be liable to pay for his accommodation in accordance with the new rules; and

b

his protected amount as assessed under paragraph 6 or as redetermined in accordance with paragraph 8.

2

Subject to paragraph 9, following the projected review of income support for the tax year 1995—1996 in accordance with section 150 of the Administration Act and any consequential order up-rating income support made under that section, a resident’s protected amount shall be increased by 33 per cent of the difference between—

a

the amount which in respect of the first full week after the date on which that order comes into force he would be liable to pay for his accommodation in accordance with the new rules; and

b

his protected amount as redetermined in accordance with sub-paragraph (1) or in accordance with paragraph 8.

3

Following the projected review of income support for the tax year 1996—1997 in accordance with section 150 of the Administration Act and any consequential order up-rating income support made under that section, the provisions of this Part of this Schedule shall cease to apply in all cases on the date on which that order comes into force.

4

If in relation to any of sub-paragraphs (1) to (3) no up-rating order is made in a relevant tax year, the reference in the relevant sub-paragraph to the date of an order coming into force shall be construed as a reference to the first Monday in the tax year referred to in that sub-paragraph.