The Income Support (General) (Standard Interest Rate Amendment) (No. 3) Regulations 1997

Statutory Instruments

1997 No. 2604

SOCIAL SECURITY

The Income Support (General) (Standard Interest Rate Amendment) (No. 3) Regulations 1997

Made

29th October 1997

Laid before Parliament

31st October 1997

Coming into force

23rd November 1997

The Secretary of State for Social Security, in exercise of the powers conferred on her by sections 123(1)(a), 135(1), 137(1) and 175(1) and (3) to (5) of the Social Security Contributions and Benefits Act 1992(1), and of all other powers enabling her in that behalf, after agreement by the Social Security Advisory Committee that proposals in respect of these Regulations should not be referred to it(2), hereby makes the following Regulations:

Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Income Support (General) (Standard Interest Rate Amendment) (No. 3) Regulations 1997 and shall come into force on 23rd November 1997.

(2) These Regulations shall have effect in relation to any particular claimant—

(a) in a case where income support is paid to the claimant in arrears in accordance with paragraph 7(1)(i) of Schedule 7 to the Claims and Payments Regulations(3) (date when change of circumstances is to take effect)—

(i) from the first day of the benefit week which includes 30th November 1997; or

(ii) if the claim for income support is for a period beginning after 30th November 1997, from the first day of the first benefit week commencing after 23rd November 1997;

(b) in a case where income support is paid to the claimant in advance in accordance with paragraph 7(1)(ii) of Schedule 7 to the Claims and Payments Regulations, from the first day of the first benefit week commencing after 30th November 1997;

and for this purpose, the expressions “claimant” and “benefit week” have the same meanings as in regulation 2(1) of the Income Support Regulations(4) (interpretation).

(3) In these Regulations, “the Claims and Payments Regulations” means the Social Security (Claims and Payments) Regulations 1987(5) and “the Income Support Regulations” means the Income Support (General) Regulations 1987(6).

Amendment of Schedule 3 to the Income Support Regulations

2.  In paragraph 12(1)(a) of Schedule 3 to the Income Support Regulations(7) (standard rate of interest on qualifying loans), for the words “7.57 per cent.” there shall be substituted the words “7.97 per cent.”.

Revocation of the Income Support (General) (Standard Interest Rate Amendment) (No. 2) Regulations 1997

3.  The Income Support (General) (Standard Interest Rate Amendment) (No. 2) Regulations 1997(8) are hereby revoked save that those Regulations shall continue to have effect until the day before the first day of the benefit week having effect in relation to any particular claimant for the purpose of regulation 1(2) of these Regulations.

Signed by authority of the Secretary of State for Social Security.

Keith Bradley

Parliamentary Under-Secretary of State,

Department of Social Security

29th October 1997

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend Schedule 3 to the Income Support (General) Regulations 1987 (S.I. 1987/1967), as substituted and amended, with respect to the standard rate of interest applicable to a loan which qualifies for income support under that Schedule to those Regulations. The new rate is 7.97 per cent. (regulation 2). The Regulations also revoke, with a saving provision, regulations which made a previous amendment to that standard rate of interest (regulation 3).

These Regulations do not impose a charge upon businesses.

(1)

1992 c. 4; section 137(1) is an interpretation provision and is cited because of the meaning ascribed to the word “prescribed”.

(2)

See section 173(1)(b) of the Social Security Administration Act 1992 (c. 5).

(3)

Paragraph 7 is substituted by S.I. 1990/2208 and amended by S.I. 1991/387 and 1992/247.

(4)

The definition of “benefit week” is amended by S.I. 1988/1445.

(5)

S.I. 1987/1968.

(6)

S.I. 1987/1967.

(7)

Schedule 3 is substituted by S.I. 1995/1613; the relevant amending instrument is S.I. 1997/2055.

(8)

S.I. 1997/2055.