The State Pension Credit Regulations 2002

The calculation for loans

7.—(1) The weekly amount of housing costs to be met under this Schedule in respect of a loan which qualifies under paragraph 11 or 12 shall be calculated by applying the formula—

where—

A = the amount of the loan which qualifies under paragraph 11 or 12;

B = the standard rate for the time being [F1 applicable in respect of that loan].

[F2 (2) For the purposes of sub-paragraph (1) and subject to sub-paragraphs (3) and (4A), the amount of the qualifying loan—

(a) except where paragraph (b) applies, shall be determined on the date the housing costs are first met and thereafter on the anniversary of that date;

(b) where housing costs are being met in respect of a qualifying loan (“the existing loan”) and housing costs are subsequently met in respect of one or more further qualifying loans (“the new loan”), shall be the total amount of those loans determined on the date the housing costs were first met in respect of the new loan and thereafter on the anniversary of the date housing costs were first met in respect of the existing loan.]

(3) Where the claimant or his partner—

(a) ceases to be in receipt of or treated as being in receipt of state pension credit; but

(b) within 12 weeks thereof, one of them subsequently becomes entitled again to the credit; and

(c) sub-paragraph (4) applies,

the amount of the qualifying loan shall be—

(i) the amount last determined for the purposes of the earlier entitlement; and

(ii) recalculated on each subsequent anniversary of the date which, for the purposes of sub-paragraph (2), housing costs were first met.

(4) This sub-paragraph applies if—

(a) the earlier entitlement included an amount in respect of a qualifying loan; and

(b) the circumstances affecting the calculation of the qualifying loan remain unchanged since the last calculation of that loan.

[F3 (5) Where in the period since the amount applicable under this Schedule was last determined, there has been a change of circumstances, other than a reduction in the amount of the outstanding loan, which increases or reduces the amount applicable, it shall be recalculated so as to take account of that change.]

Textual Amendments

F1 Words in Sch. II para. 7(1) substituted (28.11.2004) by The Social Security (Housing Costs Amendments) Regulations 2004 (S.I. 2004/2825), regs. 1(2)(a), 2(3)(c)

F2 Sch. II para. 7(2) substituted (6.10.2003) by The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) (No. 2) Regulations 2002 (S.I. 2002/3197), reg. 1(1)(b), Sch. para. 9(e)

F3 Sch. II para. 7(5) substituted (6.10.2003) by The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) Regulations 2002 (S.I. 2002/3019), regs. 1(2)(b), 23(l)(ii)

Modifications etc. (not altering text)

C1 Sch. II para. 7(1) modified (7.4.2003) by The Social Security Benefits Up-rating Order 2003 (S.I. 2003/526), arts. 1(2)(c), 25(6), Sch. 16

C2 Sch. II para. 7(1) sum maintained (12.4.2004) by The Social Security Benefits Up-rating Order 2004 (S.I. 2004/552), arts. 1(2)(c), 26(6), Sch. 20

C3 Sch. II para. 7(1) sum maintained (11.4.2005) by The Social Security Benefits Up-rating Order 2005 (S.I. 2005/522), arts. 1(2)(c), 26(6), Sch. 20

C4 Sch. II para. 7(1) modified (10.4.2006) by The Social Security Benefits Up-rating Order 2006 (S.I. 2006/645), arts. 1(2)(d), 26(6), Sch. 20