SCHEDULE 1TRANSITIONAL PROVISIONS

PART IIITHE SECOND STAGE

8

1

Subject to the following provisions of this paragraph, once a resident has been assessed as liable to pay a protected amount for his accommodation, any increase in his income or capital shall not affect the level of his protected amount.

2

When a resident’s protected amount is redetermined in accordance with paragraph 7, any increase in his income or capital shall be taken into consideration for the purposes of any calculation under the new rules which is made for the purposes of that paragraph.

3

If a resident’s resources are increased by—

a

any income such as is mentioned in regulation 17(4); or

b

any payment of capital such as is mentioned in regulation 25(4),

in respect of the first full week after that increase in his resources, that resident shall be assessed both in accordance with the new rules and in accordance with the old rules, and paragraphs (4) to (7) shall apply.

4

If the charge which the resident is assessed as liable to pay under the old rules is lower than the charge which he is assessed as liable to pay under the new rules, for the purposes of assessing his ability to pay for his accommodation, the old rules shall continue to apply to him and his new protected amount shall, subject to sub-paragraphs (5) and (6), be the amount which he is assessed under the old rules as liable to pay for his accommodation.

5

If the two assessments referred to in sub-paragraph (3) are carried out during the tax year 1994—1995, the resident’s new protected amount determined in accordance with paragraph (4) shall be increased by 33 per cent of the difference between the charges determined in accordance with those two assessments unless those assessments are carried out before an order up-rating income support made under section 150 of the Administration Act has come into force during that tax year.

6

If the two assessments referred to in sub-paragraph (3) are carried out during the tax year 1995—1996, the resident’s new protected amount determined in accordance with paragraph (4) shall be increased by 66 per cent of the difference between the charges determined in accordance with those two assessments unless those assessments are carried out before an order up-rating income support made under section 150 of the Administration Act has come into force during that tax year, in which case the increase shall be 33 per cent of that difference.

7

If the charge which a resident is assessed under the new rules as liable to pay for his accommodation in accordance with sub-paragraph (3) is equal to or lower than the charge which he is assessed as liable to pay under the old rules, the provisions of this Part of this Schedule shall cease to apply to that resident from the date of the increase in resources which led to those assessments.