The Universal Credit Regulations 2013

Standard rate to be applied under paragraphs 10 and 11 U.K.

12.—(1) The standard rate is the average mortgage rate published by the Bank of England which, immediately before this Schedule comes into force, has effect for the purposes of paragraph 12 of Schedule 3 to the Income Support (General) Regulations 1987 M1 (which makes provision as to the standard rate to be used in determining amounts applicable to a claimant in respect of income support).

(2) The standard rate is to be varied each time that sub-paragraph (3) applies.

(3) This sub-paragraph applies when, on any reference day, the Bank of England publishes an average mortgage rate which differs by [F1 0.5 percentage points] or more from the standard rate that applies on that reference day (whether it applies by virtue of sub-paragraph (1) or by virtue of a previous application of this sub-paragraph).

(4) The average mortgage rate published on that reference day then becomes the new standard rate in accordance with sub-paragraph (5).

(5) Any variation in the standard rate by virtue of sub-paragraphs (2) to (4) comes into effect—

(a) for the purposes of sub-paragraph (3), on the day after the reference day referred to in sub-paragraph (4);

(b) for the purpose of calculating the amount of housing costs element to be included under this Schedule in an owner-occupier's award, on the day specified by the Secretary of State for that purpose.

(6) At least 7 days before a variation of the standard rate comes into effect under sub-paragraph (5)(b), the Secretary of State must arrange for notice to be published on a publicly accessible website of—

(a) the new standard rate; and

(b) the day specified in relation to that rate under sub-paragraph (5)(b).

(7) In this paragraph—

“average mortgage rate” means the effective interest rate (non-seasonally adjusted) of United Kingdom resident banks and building societies for loans to households secured on dwellings published by the Bank of England in respect of the most recent period specified for that rate at the time of publication M2 ;

“reference day” means any day falling on or after the date on which this Schedule comes into force.

Textual Amendments

F1 Words in Sch. 5 para. 12(3) substituted (28.4.2014) by The Universal Credit and Miscellaneous Amendments Regulations 2014 (S.I. 2014/597), regs. 1, 2(14)(d)

Modifications etc. (not altering text)

C1 Sch. 5 para. 12(1) sum maintained (coming into force in accordance with art. 1(2)(l) of the amending S.I.) by The Social Security Benefits Up-rating Order 2015 (S.I. 2015/457), arts. 1(2)(l), 24(4), Sch. 17

Marginal Citations

M1 S.I. 1987/1967. Paragraph 12 was substituted by S.I. 2004/2825 and amended by S.I. 2007/3183, 2008/3195 and 2010/1811.

M2 This is available on the Bank of England website: http://www.bankofengland.co.uk/statistics/bankstats/current/index.htm.. The effective rate appears in Table G1.4 in the column headed “HSDE”.