The Social Security (Housing Costs Special Arrangements) (Amendment and Modification) Regulations 2008

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend and modify the housing costs provisions in the Employment and Support Allowance Regulations 2008, the Income Support (General) Regulations 1987, the Jobseeker's Allowance Regulations 1996 and the State Pension Credit Regulations 2002.

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 Employment and Support Allowance Regulations, the Income Support Regulations and the Jobseeker's Allowance Regulations in relation to certain existing claimants who are entitled to an employment and support allowance, income support or a jobseeker's allowance (“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 2 to 4 modify the provisions relating to the housing costs that can be met by an employment and support allowance, income support or a jobseeker's allowance in the following ways:

— by reducing the 26 week or (as the case may be) 39 week qualifying period before housing costs may be met to 13 weeks (regulations 4(b) and (d), 5(b) and (d) and 6(b) and (c));

— by providing that the maximum appropriate amount in respect of loans that qualify under the Regulations is £200,000 instead of £100,000 (regulations 4(c), 5(c) and 6(d));

— by providing that no amount may be met in respect of interest on a qualifying loan where a a jobseeker's allowance claimant has been in receipt of interest on a qualifying loan for 104 weeks (regulation 6(a)), although this limitation does not apply where the person was previously entitled to income support or an employment and support allowance within a period of 12 weeks or less.

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 force 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 relevant benefit at any time after 4th January 2009:

— which is not or was not immediately preceded by a linked period under the housing costs linking rules; or

— where the claimant, that person's partner or, in the case of a joint-claim for a jobseeker's allowance, the other member of the couple, was previously entitled to state pension credit and more than 12 weeks (26 weeks in some cases) has elapsed since the last day of entitlement to state pension credit.

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

— it provides that a person who is required to satisfy a qualifying period before housing costs may be met must have been continuously entitled to the benefit in question for a continuous period of at least 13 weeks (regulations 9(c), 10(c) and 11(d));

— it provides that the maximum appropriate amount in respect of loans that qualify under the Regulations is £200,000 instead of £100,000 (regulations 9(f), 10(f) and 11(g));

— it provides that no amount may be met in respect of interest on a qualifying loan where a jobseeker's allowance claimant has been in receipt of interest on a qualifying loan for a total of 104 weeks as part of a continuous period of entitlement or periods separated by a linked period under the housing costs linking rules. As in the case of Part 2, the limitation does not apply where the person was previously entitled to income support or an employment and support allowance within a period of 12 weeks or less (regulation 11(b)).

Part 4 modifies the State Pension Credit Regulations 2002 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.

A full impact assessment has not been produced for this instrument as it has no impact on the private or voluntary sectors.