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

JurisdictionUK Non-devolved
CitationSI 2002/3197
Year2002

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 23th December 2002

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 19921, sections 5(1)(p), 15A(2)(aa), 189(4) to (6) and 191 of the Social Security Administration Act 19922, sections 26(1) and (4)(a), 35(1) and 36(2) of the Jobseekers Act 19953, sections 10(1) and (5)(a) and 26(3) of the Child Support Act 19954, section 10(3) and (6), 79(4) and 84 of the Social Security Act 19985and 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 provisions6, make the following Regulations:

S-1 Citation, commencement and interpretation

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—

(a)

(a) for the purposes of this regulation and regulations 5, 6 and 7(4), on 7th April 2003;

(b)

(b) for all other purposes, on 6th October 2003.

(2) In these Regulations, “the principal Regulations” means the State Pension Credit Regulations 20027and 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.

S-2 Amendment of the principal Regulations

Amendment of the principal Regulations

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

S-3 Further amendments to the principal Regulations relating to earnings

Further amendments to the principal Regulations relating to earnings

3.—(1) In regulation 17A (earnings of an employed earner)—

(a)

(a) in paragraph (2), for “(3) and (4)”, there shall be substituted “(3), (4) and (4A)”;

(b)

(b) after paragraph (3)(d), there shall be added the following—

“;

(e)

(e) any payment of compensation made pursuant to an award by an employment tribunal in respect of unfair dismissal or unlawful discrimination”;

(c)

(c) after paragraph (4), there shall be inserted the following paragraph—

S-4A

“4A One half of any sum paid by a claimant by way of a contribution towards an occupational pension scheme or a personal pension scheme shall, for the purpose of calculating his earnings in accordance with this regulation, be disregarded.”.

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

(a)

(a) before paragraph (2)(a), there shall be inserted the following sub-paragraph—

“(za)

“(za) “board and lodging accommodation” has the same meaning as in paragraph 8(2) of Schedule IV;”;

(b)

(b) at the end of regulation 12(2)(e) of the Social Security Benefit (Computation of Earnings) Regulations 19968as given effect by paragraph (4)(b), there shall be added the words “being an award made by one of the Sports Councils named in section 23(2) of the National Lottery etc. Act 19939out of sums allocated to it for distribution under that section”.

S-4 Amendment of amounts in the principal Regulations

Amendment of amounts in the principal Regulations

4.—(1) In regulation 6 (amount of the guarantee credit)—

(a)

(a) in paragraph (1)—

(i) in sub-paragraph (a), for the sum “£154” there shall be substituted the sum “£155.80”;

(ii) in sub-paragraph (b), for the sum “£100” there shall be substituted the sum “£102.10”;

(b)

(b) in paragraph (5)—

(i) in sub-paragraph (a), for the sum “£43.45” there shall be substituted the sum “£42.95”;

(ii) in sub-paragraph (b), for the sum “£86.90” there shall be substituted the sum “£85.90”;

(c)

(c) in paragraph (8), for the sum “£25.35” there shall be substituted the sum “£25.10”.

(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)—

(a)

(a) in sub-paragraph (5)—

(i) in the substituted regulation 6(1)(a), for the sum “£154” there shall be substituted the sum “£155.80”;

(ii) in the substituted regulation 6(1)(b), for the sum “£54” there shall be substituted the sum “£53.70”;

(b)

(b) in sub-paragraph (7), in the substituted regulation 7(2), for the sum “£123” there shall be substituted the sum “£123.80”.

S-5 Amendment of the Social Security (Claims and Payments) Regulations 1987

Amendment of the Social Security (Claims and Payments) Regulations 1987

5.—(1) The Social Security (Claims and Payments) Regulations 198710shall be amended in accordance with the following paragraphs of this regulation.

(2) In regulation 34A11(deduction of mortgage interest which shall be made from benefit and paid to qualifying lenders)—

(a)

(a) for the words “or (1A)” there shall be substituted the words “or, subject to paragraph (1A), section 15A(1A)”;

(b)

(b) after paragraph (1), there shall be inserted the following paragraph—

S-1A

“1A Paragraph (1) shall only apply in relation to a relevant beneficiary who is entitled to state pension credit where he is entitled to a guarantee credit.”.

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

S-34B

Deductions of mortgage interest which may be made from benefits and paid to qualifying lenders in other cases

34B.—(1) In relation to cases to which section 15A(1A) of the Social Security Administration Act 199212applies (other than those referred to in regulation 34A(1A))—

(a)

(a) in the circumstances specified in paragraph 2A(1) of Schedule 9A: and

(b)

(b) in either of the further circumstances specified in paragraph 2A(2) of that Schedule,

such part of any relevant benefits to which a relevant beneficiary is entitled as may be specified in that Schedule may be paid by the Secretary of State directly to the qualifying lender and shall be applied by that lender towards the discharge of the liability in respect of that interest13.

(2) The provisions of Schedule 9A14shall have effect in relation to mortgage interest payments made under this regulation.”.

(4) In paragraph 3(5)(a) of Schedule 915(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)—

(a)

(a) in the heading, for “Regulation 34A” there shall be substituted “Regulations 34A and 34B”;

(b)

(b) at the end of the heading to paragraph 216, there shall be added the words “for the purposes of regulation 34A”;

(c)

(c) after paragraph 2, there shall be inserted the following paragraph—

S-2A

Specified circumstances for the purposes of regulation 34B

2A.—(1) The circumstances referred to in regulation 34B are that—

(a)

(a) the relevant beneficiary is entitled to a savings credit as construed in accordance with sections 1 and 3 of the 2002 Act and not to a guarantee credit; and

(b)

(b) sub-paragraphs (a) and (b) of paragraph 2 apply.

(2) The further circumstances referred to in that regulation are that—

(a)

(a) the relevant beneficiary has requested the Secretary of State in writing to make such payments to the qualifying lender; or

(b)

(b) the Secretary of State has determined that it would be in the relevant beneficiary’s interests, or in the interests of his family, to make such payments to the qualifying lender.

(3) In making the determination referred to in sub-paragraph (2)(b), the Secretary of State shall have regard to whether or not the relevant beneficiary is in arrears with his payments to the qualifying lender.

(4) For the purposes of sub-paragraph (2)(b), “a family” comprises the relevant beneficiary, his partner, any additional partner to whom section 12(1)(c) of the 2002 Act applies and any person who has not attained the age of 19, is treated as a child for the purposes of section 142 of the Contributions and Benefits Act and lives with the relevant beneficiary or the relevant beneficiary’s partner.”.

(d)

(d) in paragraph 317

(i) in sub-paragraph (1A), after the words “qualifying lender” there shall be inserted the words “or, in accordance with regulation 34B, may be paid directly to the qualifying lender”;

(ii) in sub-paragraph (10), after the words “state pension credit”, in the first place where those words occur, there shall be inserted the words “but not in a case to which sub-paragraph (11) applies,”;

(iii) after sub-paragraph (10), there shall be added the following sub-paragraph—

S-11

“11 This sub-paragraph applies where the last day on which either the claimant or his partner were entitled to income support or to an income-based jobseeker’s allowance was no more than twelve weeks before—

(a) except where paragraph (b) applies, the first day of entitlement to state pension credit; or

(b) where the claim for state pension credit was treated as made on a day earlier than the day on which it was actually made (“the actual date”), the day which would have been the first day of entitlement to state pension credit had the claim been treated as made on the actual date.”;

(e)

(e) in paragraphs 6 and 7, after “regulation 34A” there shall be inserted “or 34B”;

(f)

(f) in paragraph 9(4), for the words “Regulation 34A shall not” there shall be substituted the words “Neither regulation 34A nor 34B shall”;

(g)

(g) in paragraph 11—

(i) in sub-paragraph (1), after “regulation 34A” there shall be inserted “or 34B”;

(ii) in...

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