(1) In the case of a legacy benefit claimant or UC claimant, where the claimant or the claimant’s partner is in receipt of a payment under a policy of insurance taken out to insure against the risk of being unable to maintain owner-occupier payments within the meaning of Schedule 1, a deduction from the loan payment calculated under regulation 10 (calculation of each loan payment) shall be made equal to the amount received in respect of owner-occupier payments.

(2) Where the amount referred to in paragraph (1) is equal to or more than the loan payment, the amount of the loan payment shall be zero.

Interest

Repayment

Direct payments to qualifying lenders

Consequential amendments

Transitional provision: loan offer made before 6th April 2018

Transitional provision: loan offer made on or after 6th April 2018

19A

(1) Subject to regulation 20 (transitional provision: persons who lack capacity or may lack capacity identified before 6th April 2018) and paragraph (4), in relation to an existing claimant in a case where the loan payments offer date does not occur before 6th April 2018, the amendments made by Schedule 5 (consequential amendments) shall be treated as though they did not have effect until the earlier of the following days (where that day occurs after 6th April 2018) (“the transitional end day”)—

(a) the relevant day in paragraph (2);

(b) the day after the day on which entitlement to a qualifying benefit ends;

(c) the day after the day on which the Department receives notification from the claimant that the claimant does not wish to receive loan payments.

(2) The relevant day is—

(a) 7th May 2018; or

(b) where the loan payments offer date occurs before 7th May 2018, the relevant day in regulation 19(3)(b) and (c) and (4).

(3) Where in the case of—

(a) a legacy benefit claimant or SPC claimant, the day referred to in paragraph (1)(c), or the relevant day as referred to in paragraph (2)(a), is not the first day of the claimant’s benefit week, then that day or that relevant day is the first day of the first benefit week that begins after that day or that relevant day; or

(b) a UC claimant, the day referred to in paragraph (1)(c), or the relevant day as referred to in paragraph (2)(a), is not the first day of the claimant’s assessment period, then that day or that relevant day is not the first day of the first assessment period that begins after that day or that relevant day.

(4) Paragraphs (1) to (3) do not apply in relation to an existing claimant where, as at the end of 5th April 2018—

(a) the Department, or a person authorised to exercise functions of the Department, has, before 19th March 2018 made a request to the claimant, whether orally or in writing, to provide information that is needed in order for the Department or that person to—

(i) take steps to ascertain whether the claimant wishes to receive an offer of loan payments or not, or

(ii) be able to send to the claimant the loan agreement and documents referred to in regulation 5(2) (conditions to meet before the loan payments can be made); and

(b) the claimant has not provided that information to the Department or that person.

(5) Subject to regulation 20, in the case of an existing claimant referred to in paragraph (4), where 6th April 2018 is not the first day of the claimant’s benefit week, in the case of a legacy benefit or SPC claimant, or assessment period, in the case of a UC claimant, the amendments made by Schedule 5 (consequential amendments) shall be treated as though they did not have effect until the first day of the first benefit week or first assessment period that begins after that date (“the transitional end day”).

Transitional provision: persons who lack capacity or may lack capacity identified before 6th April 2018

Transition from legacy benefit to universal credit

Delegation

PART1 — General

7

The Claims and Payments Regulations are amended as follows—

(a) omit regulations 34ZA and 34ZB;

(b) in regulation 34A(1) omit “Except as provided for in regulation 34ZA and Schedule 8B,”;

(i) in paragraph 1(1), omit the definition of “mortgage payment”,

(ii) in paragraph 3—

(aa) omit sub-paragraph (2)(b)(i);

(bb) in sub-paragraph (2)(b)(ii), for “for any other housing item” substitute “for any housing item”;

(cc) in sub-paragraph (2A)(b) omit “4(8) or (11) or”, “5(9) or (12) or” and “6(10) or (13) or” in each place where these words occur;

(dd) for sub-paragraph (3) substitute—

(3) Sub-paragraph (1) shall not apply to any debt which is for any item of housing costs and is less than half the annual amount due to be paid by the beneficiary or his partner in respect of that item, unless, in the opinion of the Department it is in the overriding interests of the family that paragraph (1) should apply.

(ee) omit sub-paragraphs (4) and (5),

(iii) in paragraph 9, omit sub-paragraph (2); and

(d) omit Schedule 8B.

8

The Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance (Claims and Payments) Regulations (Northern Ireland) 2016 are amended as follows—

(a) omit regulation 54;

(b) in regulation 55 omit “Except as provided for in regulation 54 and Schedule 4,”;

(d) in paragraph 6 of Schedule 5 omit sub-paragraphs (5) and (6).

9

The Social Fund Maternity and Funeral Expenses (General) Regulations (Northern Ireland) 2005 are amended as follows—

(a) in regulation 2—

(i) in paragraph (1), after the definition of “order freeing a child for adoption” insert—

“owner-occupier loan payments” means loan payments under the Loans for Mortgage Interest Regulations (Northern Ireland) 2017;

(ii) after paragraph (4)(b) insert—

(c) a person being treated as entitled to a benefit has the meaning given to it in regulation 2(2)(aa) of the Loans for Mortgage Interest Regulations (Northern Ireland) 2017.

(i) at the end of sub-paragraph (f) omit “or”,

(ii) at the end of sub-paragraph (g) insert “or”; and

(iii) after sub-paragraph (g) add—

(h) owner-occupier loan payments and is treated as entitled to a benefit specified in sub-paragraphs (a) to (c) and (f).

(d) in regulation 7(4)(a)—

(i) at the end of head (vii) omit “or”,

(ii) at the end of head (viii) insert “or”, and

(iii) after head (viii) add—

(ix) owner-occupier loan payments and is treated as entitled to a benefit specified in sub-paragraphs (i) to (iii) and (vii).

10

The Social Fund (Cold Weather Payments) (General) Regulations (Northern Ireland) 1988 are amended as follows—

(a) in regulation 1(2)—

(i) in the definition of “claimant”, after “universal credit” insert “or who is in receipt of owner-occupier loan payments”, and

(ii) after the definition of “overlap period” insert—

“owner-occupier loan payments” means loan payments made under the Loans for Mortgage Interest Regulations (Northern Ireland) 2017;

(b) in regulation 1A(2)—

(i) at the end of sub-paragraph (d) omit “or”,

(ii) at the end of sub-paragraph (e) insert “or”, and

(iii) after sub-paragraph (e) insert—

(f) owner-occupier loan payments and is treated as entitled to a benefit specified in sub-paragraphs (a) to (d).

(iv) in paragraph (3)—

(aa) for “(d) or (e)” substitute “(d), (e) or (f)”;

(bb) at the end of sub-paragraph (e) omit “or”;

(cc) at the end of sub-paragraph (f) insert “or”;

(dd) after sub-paragraph (f) insert—

(g) where P has been awarded owner-occupier loan payments, P’s applicable amount, if P were entitled to a benefit specified in paragraph (2)(b) to (d), would include one or more of the premiums specified in— (aa) where P is treated as entitled to income support, paragraphs 9 to 14 of Part 3 of Schedule 2 to the General Regulations; (bb) where P is treated as entitled to jobseeker’s allowance, paragraphs 10 to 16 of Part 3 of Schedule 1 to the Jobseeker’s Allowance Regulations (Northern Ireland) 1996; (cc) where P is treated as entitled to employment and support allowance, paragraphs 5 to 7 of Schedule 4 to the Employment and Support Allowance Regulations (Northern Ireland) 2008.

(ee) after paragraph (3) insert—

(3A) In paragraph (3), a person being treated as entitled to benefit has the meaning given to it in regulation 2(2)(aa) of the Loans for Mortgage Interest Regulations (Northern Ireland) 2017.

PART2 — Decisions and Appeals

11

The Social Security and Child Support (Decisions and Appeals) Regulations (Northern Ireland) 1999 are amended as follows—

(a) in regulation 1(2)—

(i) after the definition of “limited capability for work” insert—

“the Loans for Mortgage Interest Regulations” means the Loans for Mortgage Interest Regulations (Northern Ireland) 2017;

(ii) after the definition of “out of jurisdiction appeal” insert—

“owner-occupier loan payments” means loan payments made under the Loans for Mortgage Interest Regulations;

“owner-occupier payments” has the same meaning as in Part 1 of Schedule 1 to the Loans for Mortgage Interest Regulations;

(b) in regulation 7—

(i) after paragraph (12) insert—

(12A) Paragraph (12) applies where— (a) the effect of a decision under Article 11 is that owner-occupier loan payments are to be made to a claimant in respect of the claimant’s liability to make owner-occupier payments; and (b) that decision could not have been made earlier because information necessary to make that decision, requested otherwise than in accordance with paragraph 8 of Schedule 4 to the Loans for Mortgage Interest Regulations (provision of information), had not been supplied to the Department by the lender. (12B) Where a claimant is receiving owner-occupier loan payments and there is a reduction in the amount owing in connection with a qualifying loan or alternative finance arrangement (within the meaning in Schedule 1 to the Loans for Mortgage Interest Regulations (meaning of owner-occupier payments)), a decision made under Article 11 takes effect— (a) on the first anniversary of the date on which the claimant’s liability to make owner-occupier payments was first met by an owner-occupier loan payment; or (b) where the reduction in the amount owing in connection with a qualifying loan or alternative finance arrangement occurred after the first anniversary of the date referred to in sub-paragraph (a), on the next anniversary of that date following the date of the reduction. (12C) Where a claimant is receiving owner-occupier loan payments, an insurance payment deduction is made under regulation 14A(1) of the Loans for Mortgage Interest Regulations (insurance payment deduction) in relation to any decision under Article 9 or 11 and there is a change in the amount of the owner-occupier payments payable— (a) on a qualifying loan or alternative finance arrangement (within the meaning in Schedule 1 to the Loans for Mortgage Interest Regulations (meaning of owner-occupier payments)) to which those payments relate; or (b) on a loan or alternative finance arrangement not so qualifying which is secured on the dwelling occupied as the home to which those payments relate, a decision under Article 11 which is made as a result of that change in the amount of the owner-occupier payments payable shall take effect on whichever of the dates referred to in paragraph (12D) is appropriate in the claimant’s case. (12D) The date on which a decision under Article 11 takes effect for the purposes of paragraph (12C) is— (a) the date on which the claimant’s liability to make owner-occupier payments is first met by an owner-occupier loan payment; or (b) where the change in the amount of the owner-occupier payments payable occurred after the date referred to in sub-paragraph (a), on the date of the next alteration in the standard rate following the date of that change. (12E) In paragraph (12D), “standard rate” has the same meaning as it has in regulation 13 of the Loans for Mortgage Interest Regulations (standard rate to be applied under regulations 11 and 12). (12F) Paragraph (12G) applies where— (a) a claimant is awarded state pension credit; (b) the claimant or the claimant’s partner has reached pensionable age (within the meaning in section 133(1) of the Contributions and Benefits Act); (c) the claimant is in receipt of owner-occupier loan payments; and (d) after the date from which sub-paragraph (c) applies— (i) a non-dependant (within the meaning in regulation 2(1) of the Loans for Mortgage Interest Regulations) begins to reside with the claimant, or (ii) there has been a change of circumstances in respect of a non-dependant and this reduces the amount of the owner-occupier loan payments. (12G) Where this paragraph applies, a decision made under Article 11 shall take effect— (a) where there is more than one change of the kind specified in paragraph (12F)(d) in respect of the same non-dependant within the same 26 week period, 26 weeks after the date on which the first such change occurred; and (b) in any other circumstances, 26 weeks after the date on which a change specified in paragraph (12F)(d) occurred.

(ii) omit paragraphs (13) to (17G) and (18) to (23);

(1) Where, for the purpose of a decision under Article 9 (decisions by the Department) or 11 (decisions superseding earlier decisions)— (a) a determination falls to be made by the Department in respect of a claimant of income support, state pension credit or employment and support allowance as to— (i) the amount to be included in an owner-occupier loan payment under regulation 10 (calculation of each loan payment) of the Loans for Mortgage Interest Regulations, or (ii) what housing costs are to be included in the claimant’s applicable amount (in the case of income support or employment and support allowance) or the claimant’s appropriate minimum guarantee (in the case of state pension credit); and (b) it appears to the Department that the Department is not in possession of all of the evidence or information which is relevant for the purposes of such a determination, the Department shall make the determination on the assumption that the amounts to be included in an owner-occupier loan payment, the claimant’s applicable amount, or the claimant’s appropriate minimum guarantee, as the case may be, are those that can be immediately determined.

(d) in paragraph 5 of Schedule 1 for sub-paragraph (r) substitute—

(r) regulation 17(1) (direct payments to qualifying lenders by the Department where specified circumstances met) of the Loans for Mortgage Interest Regulations;

12

In Schedule 3 (decisions against which no appeal lies), in paragraph 1 of the Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance (Decisions and Appeals) Regulations (Northern Ireland) 2016 omit sub-paragraph (o).

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