Standard rate to be applied under paragraphs 10 and 11N.I.
12.—[F1(1) The standard rate is the average mortgage rate published by the Bank of England which, immediately before this Schedule comes into operation, has effect for the purposes of paragraph 12 of Schedule 3 to the Income Support (General) Regulations (Northern Ireland) 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 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), the day after the reference day referred to in sub-paragraph (4);
(b)for the purpose of calculating the amount of the housing costs element to be included under this Schedule in an owner-occupier's award, on the day specified by the Department for that purpose.
(6) At least 7 days before a variation of the standard rate comes into effect under sub-paragraph (5)(b), the Department 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 operation.]
Textual Amendments
F1Sch. 5 paras. 10-12 omitted (6.4.2018) by virtue of The Loans for Mortgage Interest Regulations (Northern Ireland) 2017 (S.R. 2017/176), reg. 1(2)(a), Sch. 5 para. 5(f)(vi) (with regs. 18(2), 19, 19A, 20)
Modifications etc. (not altering text)
C1Sum in Sch. 5 para. 12(1) specified (24.3.2018) by The Social Security (2017 Benefits Up-rating) Order (Northern Ireland) 2018 (S.R. 2018/56), arts. 1, 27(4), Sch. 17
Marginal Citations
M1Paragraph 12 was amended by regulation 2(c) of S.R. 2004 No. 461; regulation 2(3)(c)(ii) of S.R. 2007 No. 475; regulation 2(2)(b) of S.R. 2008 No. 503 and regulation 2(2) of S.R. 2010 No. 340.
M2This 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”.