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United Kingdom Statutory Instruments


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URL: http://www.bailii.org/uk/legis/num_reg/2002/20023197.html

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2002 No. 3197

SOCIAL SECURITY

The State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) (No. 2) Regulations 2002

  Made 19th December 2002 
  Laid before Parliament 23rd December 2002 
  Coming into force
  for the purposes of regulations 1, 5, 6 and 7(4) 7th April 2003 
  for all other purposes 6th October 2003 

The Treasury, with the concurrence of the Secretary of State, in relation to regulation 3, and the Secretary of State in relation to the remainder of the Regulations, in exercise of the powers conferred upon them by sections 3(2) and 175(3) to (5) of the Social Security Contributions and Benefits Act 1992[1], sections 5(1)(p), 15A(2)(aa), 189(4) to (6) and 191 of the Social Security Administration Act 1992[2], sections 26(1) and (4)(a), 35(1) and 36(2) of the Jobseekers Act 1995[3], sections 10(1) and (5)(a) and 26(3) of the Child Support Act 1995[4], section 10(3) and (6), 79(4) and 84 of the Social Security Act 1998[5] and sections 2(3)(b) and (6), 12(2)(b), 13, 15(3) and (6)(a) and (b), 16(2)(a) and 17(2)(a) of the State Pension Credit Act 2002, and of all other powers enabling them in that behalf, by this Instrument, which contains only regulations made by virtue of, or consequential upon, sections 1 to 17 of the State Pension Credit Act 2002 and which is made before the end of the period of 6 months beginning with the coming into force of those provisions[6], make the following Regulations:

Citation, commencement and interpretation
     1.  - (1) These Regulations may be cited as the State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) (No. 2) Regulations 2002 and shall come into force - 

    (2) In these Regulations, "the principal Regulations" means the State Pension Credit Regulations 2002[7] and references in these Regulations to a regulation or a Schedule are, unless the context otherwise requires, to a regulation of, or a Schedule to, those Regulations.

Amendment of the principal Regulations
     2. The principal Regulations shall be amended in accordance with the Schedule to these Regulations.

Further amendments to the principal Regulations relating to earnings
     3.  - (1) In regulation 17A (earnings of an employed earner) - 

    (2) In regulation 17B (earnings of self-employed earners) - 

Amendment of amounts in the principal Regulations
     4.  - (1) In regulation 6 (amount of the guarantee credit) - 

    (2) In regulation 7(2) (savings credit), for the sum "£77" there shall be substituted the sum "£77.45" and for the sum "£123" there shall be substituted the sum "£123.80".

    (3) In paragraph 1 of Schedule III (polygamous marriages) - 

Amendment of the Social Security (Claims and Payments) Regulations 1987
    
5.  - (1) The Social Security (Claims and Payments) Regulations 1987[10] shall be amended in accordance with the following paragraphs of this regulation.

    (2) In regulation 34A[11] (deduction of mortgage interest which shall be made from benefit and paid to qualifying lenders) - 

    (3) After regulation 34A, there shall be inserted the following regulation - 

    (4) In paragraph 3(5)(a) of Schedule 9[15] (deductions from benefit and direct payments to third parties), after "regulation 34A" there shall be inserted "or 34B".

    (5) In Schedule 9A (deductions of mortgage interest from benefit and made to qualifying lenders) - 

Amendment of the Social Security and Child Support (Decisions and Appeals) Regulations 1999
     6. In regulation 7 of the Social Security and Child Support (Decisions and Appeals) Regulations 1999[18] (date from which a decision superseded under section 10 takes effect) - 

Amendments to other Regulations
     7.  - (1) In regulation 8 of the Social Security (Child Maintenance Bonus) Regulations 1996[19] (retirement) - 

    (2) In regulation 17 of the Social Security (Back to Work Bonus) (No. 2) Regulations 1996[20] (persons attaining pensionable age) - 

    (3) In regulation 1(2) of the Community Charges (Deductions from Income Support) (Scotland) Regulation 1989[21] (interpretation), for the definition of "personal allowance for a couple where both members are aged not less than 18" there shall be substituted the following definition - 

    (4) In regulation 36 of the State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) Regulations 2002[24] (persons entitled to income support immediately before the appointed day) - 



Signed for the purposes of regulation 3 of the Regulations.


Nick Ainger

Jim Fitzpatrick
Two of the Lords Commissioners of Her Majesty's Treasury

18th December 2002



Signed by authority of the Secretary of State for Work and Pensions both for the purpose of concurring in the making of regulation 3 of the Regulations and for the purposes of the remainder of the Regulations.


Ian McCartney
Minister of State, Department for Work and Pensions

19th December 2002



SCHEDULE
Regulation 2


Amendment of the principal Regulations


     1. In regulation 1(2) (interpretation) - 

     2. At the end of regulation 5(1) (persons treated as being or not being members of the same household), there shall be added the following sub-paragraphs - 

     3. In regulation 13B(2) (date on which benefits are treated as paid), the words "respect of" shall be omitted.

     4. In regulation 16 (retirement pension income) - 

     5. In regulation 17(10) (calculation of weekly income), for "17C" there shall be substituted "17B(6)" and sub-paragraph (c) shall be omitted.

     6. For regulation 21(1) (notional capital), there shall be substituted the following paragraph - 

     7. In regulation 22 (diminishing notional capital rule), for "22(1)", wherever it occurs, there shall be substituted "21(1)".

     8. In Schedule I - 

     9. In Schedule II (housing costs) - 

     10. In Schedule III (special groups) - 

     11. In Schedule IV (amounts to be disregarded in the calculation of income other than earnings) - 

     12. In Schedule V (income from capital) - 

     13. In Schedule VI (sums disregarded from claimant's earnings) - 



EXPLANATORY NOTE

(This note is not part of the Regulations)


These Regulations are either made by virtue of, or consequential upon, sections 1 to 17 of the State Pension Credit Act 2002 (c.16). They are made before the end of the period of six months beginning with the coming into force of those sections of that Act and are therefore exempt in accordance with section 173(5) of the Social Security Administration Act 1992 (c. 5) from the requirement in section 172(1) of that Act to refer proposals to make these Regulations to the Social Security Advisory Committee and are made without reference to that Committee.

Regulation 2 and the Schedule amend the State Pension Credit Regulations 2002 (S.I. 2002/1792) ("the principal Regulations"). In particular they - 

     -  amend the definition of "care home" and insert a new definition of "voluntary organisation" (paragraph 1);

     -  provide that persons who are not habitually resident in the United Kingdom, the Channel Islands, the Isle of Man or the Republic of Ireland or who are subject to immigration control within the meaning of section 115(9) of the Immigration and Asylum Act 1999 (c. 33) are not to be treated as being members of the same household as the claimant (paragraph 2);

     -  add a new category of retirement pension income (paragraph 4(a) and (c));

     -  make a change which is consequential on the amendment in regulation 3(1) (paragraph 5);

     -  remove otiose rules in relation to the treatment of capital derived from personal injury payments (paragraph 6);

     -  prescribe how the transitional amount is to be calculated where a person's applicable amount in respect of housing costs in income support and jobseeker's allowance include an amount for housing costs calculated on a transitional basis (paragraph 8(c)(ii));

     -  prescribe rules as to when amounts of loans used to calculate housing costs shall be recalculated (paragraph 9(e));

     -  make changes to the rules on disregarded income and capital (paragraphs 11 to 13);

     -  correct minor errors and make certain other clarifications (paragraphs 3, 4(b), 5, 7, 8(a) to (c)(i), 9(a) to (d), (f) and (g) and 10).

Regulation 3 makes further modifications to the rules applying in state pension credit in relation to the treatment of earnings of employed and self-employed earners.

Regulation 4 makes changes to certain of the amounts prescribed in the principal Regulations in respect of the standard minimum guarantee and the prescribed additional amounts.

Regulation 5 amends the Social Security (Claims and Payments) Regulations 1987 (S.I. 1987/1968) so as to prescribe the cases where payment of mortgage interest payments may be made directly to qualifying lenders in state pension credit cases and makes consequential amendments (paragraphs (2) to (4) and (5)(a) to (c), (e) and (f)) and modify the rule as to when housing costs may be paid directly to such lenders where the claimant was previously in receipt of income support or jobseeker's allowance paragraph 5(d)).

Regulation 6 amends the Social Security and Child Support (Decision Making and Appeals) Regulations 1999 (S.I. 1999/991) so as to prescribe rules as to when superseding decisions may take effect where non-dependant deductions for housing costs purposes become applicable or the amount of a non-dependant's income increases.

Regulation 7(1) to (3) respectively make consequential amendments to the Social Security (Child Maintenance Bonus) Regulations 1996 (S.I. 1996/3195), to the Social Security (Back to Work Bonus) (No. 2) Regulations 1996 (S.I. 1996/2570) and to the Community Charges (Deductions from Income Support) (Scotland) Regulations 1989 (S.I. 1989/507).

Regulation 7(4) amends the transitional provisions in the State Pension Credit (Consequential, Transitional and Miscellaneous Provisions) Regulations 2002 (S.I. 2002/3019) in relation to those claiming income support immediately before the appointed day, who are patients on that day and who immediately before becoming patients, were in residential accommodation.

These Regulations do not impose a charge on business.


Notes:

[1] 1992 c. 4; section 3(2) is amended by the Social Security Contributions (Transfer of Functions etc.) Act 1999 (c. 2) ("the Transfer of Functions Act"), Schedule 3, paragraph 3, Section 175(3) to (5) are amended by the Social Security (Incapacity for Work) Act 1994 (c. 18), Schedule 1, paragraph 36 and by the Transfer of Functions Act, Schedule 3, paragraph 29. Section 175(3) to (5) are applied to the provisions of the State Pension Credit Act 2002 (c. 16) ("the State Pension Credit Act") by section 19(1) of that Act.back

[2] 1992 c. 5; section 15A is inserted by the Social Security (Mortgage Interest Payments) Act 1992 (c. 33), Schedule and is applied to state pension credit by subsections (1A) and (2)(aa) of that section, inserted by the State Pension Credit Act, Schedule 2, paragraph 9. Section 189(4) to (6) is amended by the Social Security Act 1998 (c. 14), Schedule 7, paragraph 109. Section 191 is cited because of the meaning ascribed to the word "prescribe".back

[3] 1995 c. 18; section 35(1) is cited because of the meaning ascribed to the words "prescribed" and "regulations".back

[4] 1995, c. 34.back

[5] Chapter II of Part 1 of the Act is applied to state pension credit by section 8(3)(bb) and (4) as inserted and amended by the State Pension Credit Act, Schedule 1, paragraph 6. Section 84 is cited because of the meaning ascribed to the word "prescribe".back

[6] Paragraph 20(a) of Schedule 2 to the State Pension Credit Act added the provisions of that Act to the list of "the relevant enactments" in respect of which regulations must normally be referred to the Social Security Advisory Committee. See however section 173(5)(b) of the Social Security Administration Act 1992.back

[7] S.I. 2002/1792 as amended by S.I. 2002/3019.back

[8] S.I. 1996/2745back

[9] 1993 c. 39.back

[10] S.I. 1987/1968.back

[11] Regulation 34A is inserted by S.I. 1992/1026 and amended by S.I. 2002/3019.back

[12] Section 15A(1A) is inserted by the State Pension Credit Act 2002 (c. 16), Schedule 2, paragraph 9(2).back

[13] See section 15A for the definition of "relevant beneficiary", "qualifying lender" and "mortgage interest".back

[14] Schedule 9A is inserted by S.I. 1992/1026.back

[15] Paragraph 3(5) is inserted by S.I. 1992/1026.back

[16] Paragraph 2 is substituted by S.I. 1995/1613 and amended by S.I. 1996/1460.back

[17] Sub-paragraphs (1A) and (10) are inserted by S.I. 2002/3019.back

[18] S.I. 1999/991; the relevant amending instrument is S.I. 2002/3019.back

[19] S.I. 1996/3195 to which there are amendments which are not relevant to these Regulations.back

[20] S.I. 1996/2570 to which there are amendments which are not relevant to these Regulations.back

[21] S.I. 1989/507; the relevant amending Instruments are S.I. 1990/113, 1996/2344 and 2002/3019.back

[22] S.I. 1987/1967.back

[23] S.I. 1996/207.back

[24] S.I. 2002/3019.back

[25] 2001 asp. 8.back

[26] 1999 c. 33.back

[27] S.I. 1995/2287.back

[28] S.I. 1995/516.back

[29] 1993 c. 39.back

[30] S.I. 1999/991.back

[31] S.I. 2001/1004.back

[32] S.I. 2002/2005.back



ISBN 0 11 044278 4


  Prepared 23 December 2002


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