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8.—(1) Subject to the provisions of this Schedule, the existing housing costs to be met in any particular case are—
(a)where the claimant has been entitled to an employment and support allowance for a continuous period of 26 weeks or more, the aggregate of—
(i)an amount determined in the manner set out in paragraph 11 by applying the standard rate to the eligible capital for the time being owing in connection with a loan which qualifies under paragraph 16 or 17; and
(ii)an amount equal to any payments which qualify under paragraph 18(1)(a) to (c);
(b)where the claimant has been entitled to an employment and support allowance for a continuous period of not less than 8 weeks but less than 26 weeks, an amount which is half the amount which would fall to be met by applying the provisions of sub-paragraph (a);
(c)in any other case, nil.
(2) For the purposes of sub-paragraph (1) and subject to sub-paragraph (3), the eligible capital for the time being owing is to be determined on the date the existing housing costs are first met and thereafter on each anniversary of that date.
(3) Where a claimant or that claimant’s partner ceases to be in receipt of or treated as being in receipt of income support, income-based jobseeker’s allowance or state pension credit and one of them becomes entitled to an income-related allowance in a case to which paragraph 3 applies, the eligible capital for the time being owing is to be recalculated on each anniversary of the date on which the housing costs were first met for whichever of the benefits concerned the claimant or the claimant’s partner was first entitled.
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