2. After paragraph (6) of regulation 63 of the Adjudication Regulations (review in income support cases) there shall be inserted the following paragraphs—
“(7) Where—
(a)a claimant is in receipt of income support and his applicable amount includes an amount determined in accordance with Schedule 3 to the Income Support Regulations (housing costs), and
(b)the conditions referred to in paragraph (8) are satisfied,
any reduction in the amount of eligible capital owing in connection with a loan which qualifies under paragraph 15 or 16 of Schedule 3 to those Regulations shall not constitute a relevant change of circumstances for the purposes of section 25(1)(b) or (c) of the Administration Act.
(8) The conditions are that the reduction in eligible capital occurs—
(a)in the period between the date when housing costs are first met under Schedule 3 to the Income Support Regulations and the first anniversary of that date;
(b)in the period between each subsequent anniversary of the date when the housing costs referred to in sub-paragraph (a) were first met.
(9) Where a claimant is in receipt of income support and payments made to that claimant which fall within paragraph 29 or 30(1)(a) to (c) of Schedule 9 to the Income Support Regulations have been disregarded in relation to the determination or review of the claim and the conditions in paragraph (10) are satisfied, any change in the amount of interest payable, whether—
(a)on a loan qualifying under paragraph 15 or 16 of Schedule 3 to those Regulations to which those payments relate, or
(b)on a loan not so qualifying which is secured on the dwelling occupied as the home to which those payments relate,
shall not constitute a relevant change of circumstances for the purposes of section 25(1)(b) or (c) of the Administration Act.
(10) The conditions are that the change in the amount of interest payable occurs—
(a)in the period between the date the disregarded payments are first made to the claimant and the date when housing costs are first met under paragraphs 6(1)(a), 8(1)(a) or 9(2)(a) of Schedule 3 to the Income Support Regulations,
(b)in the period between the date when housing costs are first met under paragraphs 6(1)(a), 8(1)(a) or 9(2)(a) of Schedule 3 to the Income Support Regulations and the date of the first subsequent change in the standard rate,
(c)in the period between the dates of each subsequent change in the standard rate.
(11) In paragraph (10), “standard rate” has the same meaning as it has in paragraph 1(2) of Schedule 3 to the Income Support Regulations.”.