The Loans for Mortgage Interest Regulations 2017

• (b) if any amount of the excess is then remaining, towards discharging any liability of the claimant to repay—

• (i) the principal sum in respect of the qualifying loan or alternative finance arrangement; or

• (ii) any other sum payable by the claimant to that lender in respect of that qualifying loan or alternative finance arrangement.

• (3) Where owner-occupier payments on two or more qualifying loans or alternative finance arrangements are payable to the same qualifying lender, the lender must apply the amount of the excess as follows—

• (a) first, towards discharging the amount of any liability of the claimant for arrears of owner-occupier payments in respect of the qualifying loan or alternative finance arrangement in respect of which the excess amount was paid;

• (b) if any amount of the excess is then remaining, towards discharging any liability of the claimant to repay—

• (i) in respect of the loan or alternative finance arrangement referred to in paragraph (a), the principal sum or any other sum payable by the claimant to that lender; or

• (ii) in respect of any other loan or alternative finance arrangement, any sum payable by the claimant to that lender where the liability to pay that sum is not already discharged.

Fees payable by qualifying lenders

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Election not to be regarded as a qualifying lender

7

• (1) A body or person who would otherwise be within the definition of “qualifying lender” in the Act—

• (a) may elect not to be regarded as such for the purposes of these Regulations by giving notice to the Secretary of State in writing; and

• (b) may revoke any such notice by giving a further notice in writing.

• (2) In respect of any financial year, a notice under sub-paragraph (1) which is given not later than 1st February before the start of the financial year, takes effect on 1st April following the giving of the notice.

• (3) Where a body or person becomes a qualifying lender in the course of a financial year—

• (a) any notice of an election by the body or person under sub-paragraph (1)(a) must be given within 6 weeks (“the initial period”) beginning with the date on which the body or person becomes a qualifying lender; and

• (b) no direct payments may be made under regulation 17(1) to the body or person before the expiry of the initial period.

• (4) Sub-paragraph (3)(b) does not apply in any case where—

• (a) the person or body gives the Secretary of State notice in writing that that provision should not apply; and

• (b) the notice is given before the start of the initial period or before that period expires.

• (5) In relation to a notice under sub-paragraph (1)—

• (a) where the notice is given by an electronic communication, it must be given in accordance with Schedule 2 of the Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance (Claims and Payments) Regulations 2013[^f00103];

• (b) where the notice is sent by post, it is to be treated as having been given on the day the notice was received.

Provision of information

8

• (1) A qualifying lender must, in respect of the claimant, provide the Secretary of State with information as to—

• (a) the owner-occupier payments payable by the claimant to the lender;

• (b) the amount of the qualifying loan or alternative finance arrangement in respect of which owner-occupier payments are payable;

• (c) the purpose for which the qualifying loan or alternative finance arrangement was made;

• (d) the amount outstanding on the qualifying loan or alternative finance arrangement;

• (e) the amount of arrears of owner-occupier payments due in respect of the qualifying loan or alternative finance payment;

• (f) any change in the owner-occupier payments payable by the claimant to the lender; and

• (g) the redemption of the qualifying loan or alternative finance arrangement,

in the circumstances specified in sub-paragraphs (2), (3) and (6).

• (2) The information referred to in sub-paragraph (1)(a) to (e) must be provided at the request of the Secretary of State where the claimant has made a claim for a qualifying benefit, provided that the Secretary of State may only make one request under this sub-paragraph.

• (3) The information referred to in sub-paragraph (1)(d) and (f) must be provided where the Secretary of State makes a request for that information on or after the first day in respect of which loan payments are paid, or to be paid, to the qualifying lender on behalf of the claimant (“the first day”), provided that the Secretary of State may only make a request under this sub-paragraph once in each period of 12 months referred to in sub-paragraph (4).

• (4) The period of 12 months is the period of 12 months beginning with the first day and each subsequent period of 12 months commencing on the anniversary of that day.

• (5) A request may be made under paragraph (3) for the information referred to in sub-paragraph (1)(d) even though that information has been requested in the same 12 month period (as referred to in sub-paragraph (4)) under sub-paragraph (2).

• (6) The information referred to in sub-paragraph (1)(g) must be provided to the Secretary of State as soon as reasonably practicable once the qualifying lender has received notice that the qualifying loan or alternative finance arrangement is to be redeemed.

Recovery of sum wrongly paid

9

• (1) In the following circumstances, a qualifying lender must at the request of the Secretary of State repay any amount paid to the lender under regulation 17(1) which ought not to have been paid.

• (2) The circumstances are that, in respect of a claimant—

• (a) the loan payments are terminated under regulation 9(2);

• (b) the qualifying loan or alternative finance arrangement in respect of which owner-occupier payments are made has been redeemed; or

• (c) both of the conditions in sub-paragraphs (3) and (4) are met.

• (3) The first condition is that the amount of each loan payment determined under regulation 10 is reduced as a result of—

• (a) the standard rate determined under regulation 13 having been reduced; or

• (b) the amount outstanding on the qualifying loan or alternative finance arrangement having been reduced.

• (4) The second condition is that no corresponding reduction was made to the amount calculated in respect of the qualifying lender under paragraph 2 or 3 of this Schedule.

• (5) A qualifying lender is not required to make a repayment in the circumstances described in sub-paragraph (2)(a) unless the Secretary of State’s request is made before the end of the period of two months starting with the date on which the loan payments are terminated.

SCHEDULE 5 — Consequential amendments

1

The ESA Regulations are amended as follows—

• (a) in regulation 67(1), in sub-paragraph (c) for “mortgage interest payments or such other housing costs as are prescribed” substitute “housing costs as prescribed”;

• (b) in regulation 68(1), in sub-paragraph (d) for “mortgage interest payments or such other housing costs as are prescribed” substitute “housing costs as prescribed”;

• (c) in Schedule 6—

• (i) in paragraph 1(1)(b), for “under paragraph 16 to 18” substitute “under paragraph 18”;

• (ii) in paragraph 1(2), omit the definition of “standard rate”;

• (iii) in paragraph 3—

• (aa) in sub-paragraph (1)(a), for “under paragraphs 14 to 16 of Schedule 2” substitute “under paragraph 16 of Schedule 2” and for “paragraphs 15 to 17 of Schedule 3” substitute “paragraph 17 of Schedule 3”;

• (bb) in paragraph (2)(a), for “under paragraphs 11 to 13 of Schedule 2” substitute “under paragraph 13 of Schedule 2”;

• (iv) in paragraph 6, omit sub-paragraphs (2) to (14);

• (v) in paragraph 9, omit sub-paragraphs (1)(a)(i) and (2);

• (vi) in paragraph 10, omit sub-paragraph (2)(a)(i);

• (vii) omit paragraphs 11 to 14;

• (viii) in paragraph 15—

• (aa) omit sub-paragraph (6);

• (bb) in sub-paragraph (12)(b), for “any loan or payment which qualifies under paragraphs 16 to 18” substitute “any payment which qualifies under paragraph 18”;

• (ix) omit paragraphs 16 and 17;

• (x) in paragraph 18—

• (aa) for the heading substitute “Housing costs”;

• (bb) in sub-paragraph (2)(c), for “the same meaning it has in paragraph 17(2)” substitute “the meaning in sub-paragraph (6)”;

• (cc) after sub-paragraph (5) insert—

(6) For the purposes of sub-paragraph (2)(c), “repairs and improvements” means any of the following measures undertaken with a view to maintaining the fitness of the dwelling for human habitation or, where the dwelling forms part of a building, any part of a building containing that dwelling— (a) provision of a fixed bath, shower, wash basin, sink or lavatory, and necessary associated plumbing, including the provision of hot water not connected to a central heating system; (b) repairs to existing heating system; (c) damp proof measures; (d) provision of ventilation and natural lighting; (e) provision of drainage facilities; (f) provision of facilities for preparing and cooking food; (g) provision of insulation of the dwelling occupied as the home; (h) provision of electric lighting and sockets; (i) provision of storage facilities for fuel or refuse; (j) repairs of unsafe structural defects; (k) adapting a dwelling for the special needs of a disabled person; or (l) provision of separate sleeping accommodation for persons of different sexes aged 10 or over but under the age of 20 who live with the claimant and for whom the claimant or the claimant’s partner is responsible.

• (xi) in paragraph 19, after sub-paragraph (2) insert—

(2A) Where a non-dependant deduction is being made under the Loans for Mortgage Interest Regulations 2017, the amount of the deduction under sub-paragraph (1) or (2) is to be reduced by an amount equal to that non-dependant deduction.

; and

• (xii) in paragraph 20, omit sub-paragraph (2);

• (d) in Schedule 8 (sums to be disregarded in the calculation of income other than earnings)—

• (i) for paragraph 31 substitute—

(31) Any payment received under an insurance policy taken out to insure against the risk of being unable to maintain repayments on a loan which qualifies under Part 1 of Schedule 1 to the Loans for Mortgage Interest Regulations 2017 (legacy benefit claimants and SPC claimants) and used to meet such repayments.

; and

• (ii) in paragraph 32—

• (aa) in sub-paragraph (1)(a) for “under Schedule 6” substitute “under Part 1 of Schedule 1 to the Loans for Mortgage Interest Regulations”;

• (bb) for sub-paragraph (1)(b) substitute—

(b) any charge which qualifies in accordance with paragraph 18 of Schedule 6 (housing costs) to these Regulations or any interest payment on a loan which qualifies under Part 1 of Schedule 1 to the Loans for Mortgage Interest Regulations, to the extent that the charge or payment is not met under these Regulations or by loan payments (as the case may be);

• (cc) in sub-paragraph (1)(c) for “under paragraph 16 or 17 of Schedule 6” substitute “under Part 1 of Schedule 1 to the Loans for Mortgage Interest Regulations”;

• (dd) after sub-paragraph (2) insert—

(3) In this paragraph— (a) “Loans for Mortgage Interest Regulations” means the Loans for Mortgage Interest Regulations 2017; (b) “loan payments” has the meaning given in the Loans for Mortgage Interest Regulations.

2

The IS Regulations are amended as follows—

• (a) in regulation 6(5)(c)—

• (i) in paragraph (i), for “under paragraphs 15 to 17” substitute “under paragraph 17”;

• (ii) in paragraph (ii), for “under paragraphs 14 to 16” substitute “under paragraph 16”;

• (iii) in paragraph (iii), for “under paragraphs 16 to 18” substitute “under paragraph 18”;

• (b) in regulation 17(1), in sub-paragraph (e) for “mortgage interest payments or such other housing costs as are prescribed” substitute “housing costs as prescribed”;

• (c) in regulation 18(1), in sub-paragraph (f) for “mortgage interest payments or such other housing costs as are prescribed” substitute “housing costs as prescribed”;

• (d) in Schedule 3—

• (i) in paragraph 1(1)(b), for “under paragraphs 15 to 17” substitute “under paragraph 17”;

• (ii) in paragraph 1(2), the definition of “standard rate” is omitted;

• (iii) in paragraph 1A(1)(a)—

• (aa) for “under paragraph 14 to 16 of Schedule 2” substitute “under paragraph 16 of Schedule 2”; and

• (bb) for “paragraphs 16 to 18 of Schedule 6” substitute “paragraph 18 of Schedule 6”;

• (iv) in paragraph 1A(1A)(a), for “under paragraphs 11 to 13 of Schedule II” substitute “paragraph 13 of Schedule II”;

• (v) in paragraph 4, omit sub-paragraphs (2) to (12);

• (vi) in paragraph 8, omit sub-paragraphs (1)(a)(i), (1A) and (1B);

• (vii) in paragraph 9, omit sub-paragraph (2)(a)(i);

• (viii) omit paragraphs 10 to 13;

• (ix) in paragraph 14—

• (aa) omit sub-paragraph (3AA);

• (bb) in sub-paragraph (6)(b), for “any loan or payment which qualifies under paragraphs 15 to 17” substitute “any payment which qualifies under paragraph 17”;

• (x) omit paragraphs 15 and 16;

• (xi) in paragraph 17—

• (aa) for the heading substitute “Housing costs”;

• (bb) in sub-paragraph (2)(c), for “the same meaning it has in paragraph 16(2)” substitute “the meaning in sub-paragraph (6);

• (cc) after sub-paragraph (5) insert—

(6) For the purposes of sub-paragraph (2)(c), “repairs and improvements” means any of the following measures undertaken with a view to maintaining the fitness of the dwelling for human habitation or, where the dwelling forms part of a building, any part of a building containing that dwelling— (a) provision of a fixed bath, shower, wash basin, sink or lavatory, and necessary associated plumbing, including the provision of hot water not connected to a central heating system; (b) repairs to existing heating system; (c) damp proof measures; (d) provision of ventilation and natural lighting; (e) provision of drainage facilities; (f) provision of facilities for preparing and cooking food; (g) provision of insulation of the dwelling occupied as the home; (h) provision of electric lighting and sockets; (i) provision of storage facilities for fuel or refuse; (j) repairs of unsafe structural defects; (k) adapting a dwelling for the special needs of a disabled person; or (l) provision of separate sleeping accommodation for persons of different sexes aged 10 or over but under the age of 20 who live with the claimant and for whom the claimant or the claimant’s partner is responsible.

; and

• (xii) in paragraph 18, after sub-paragraph (2) insert—

(2A) Where a non-dependant deduction is being made under the Loans for Mortgage Interest Regulations 2017, the amount of the deduction under sub-paragraph (1) or (2) is to be reduced by an amount equal to that non-dependant deduction.

3

The JSA Regulations are amended as follows—

• (a) in regulation 83, in paragraph (f) for “mortgage interest payments or such other housing costs as are prescribed” substitute “housing costs as prescribed”;

• (b) in regulation 84(1), in paragraph (g) for “mortgage interest payments or such other housing costs as are prescribed” substitute “housing costs as prescribed”;

• (c) in regulation 86A, in paragraph (d) for “mortgage interest payments or such other housing costs as are prescribed” substitute “housing costs as prescribed”;

• (d) in regulation 86B, in paragraph (e) for “mortgage interest payments or such other housing costs as are prescribed” substitute “housing costs as prescribed”;

• (e) omit regulation 87(4) and (5);

• (f) in Schedule 2—

• (i) in paragraph 1(1)(b), for “under paragraph 14 to 16” substitute “under paragraph 16”;

• (ii) in paragraph 1(2), omit the definition of “standard rate” ;

• (iii) in paragraph 1A(1)(a)—

• (aa) for “under paragraph 15 to 17 of Schedule 3” substitute “under paragraph 17 of Schedule 3”; and

• (bb) for “paragraphs 16 to 18 of Schedule 6” substitute “under paragraph 18 of Schedule 6”;

• (iv) in paragraph 1A(1ZA)(a), for “under paragraphs 11 to 13 of Schedule II” substitute “under paragraph 13 of Schedule II”;

• (v) in paragraph 1A(1A)(a)—

• (aa) for “under paragraph 15 or 16 of Schedule 3” substitute “under paragraph 17 of Schedule 3”; and

• (bb) for “paragraphs 16 or 17 of schedule 6” substitute “under paragraph 18 of Schedule 6”;

• (vi) in paragraph 1A(1B)(a), for “under paragraphs 11 to 13 of Schedule II” substitute “under paragraph 13 of Schedule II”;

• (vii) in paragraph 4, omit sub-paragraphs (2) to (12);

• (viii) in paragraph 7, omit sub-paragraphs (1)(a)(i), (2), (2A) and (2B);

• (ix) in paragraph 8, omit sub-paragraph (2)(a)(i);

• (x) omit paragraphs 9 to 12;

• (xi) in paragraph 13—

• (aa) omit sub-paragraph (4A);

• (bb) in sub-paragraph (9)(b), for “any loan or payment which qualifies under paragraphs 14 to 16” substitute “any payment which qualifies under paragraph 16”;

• (xii) omit paragraphs 14 and 15;

• (xiii) in paragraph 16—

• (aa) for the heading substitute “Housing costs”;

• (bb) in sub-paragraph (2)(c), for “the same meaning it has in paragraph 15(2)” substitute “the meaning in sub-paragraph (6)”;

• (cc) after sub-paragraph (5) insert—

(6) For the purposes of sub-paragraph (2)(c), “repairs and improvements” means any of the following measures undertaken with a view to maintaining the fitness of the dwelling for human habitation or, where the dwelling forms part of a building, any part of a building containing that dwelling— (a) provision of a fixed bath, shower, wash basin, sink or lavatory, and necessary associated plumbing, including the provision of hot water not connected to a central heating system; (b) repairs to existing heating system; (c) damp proof measures; (d) provision of ventilation and natural lighting; (e) provision of drainage facilities; (f) provision of facilities for preparing and cooking food; (g) provision of insulation of the dwelling occupied as the home; (h) provision of electric lighting and sockets; (i) provision of storage facilities for fuel or refuse; (j) repairs of unsafe structural defects; (k) adapting a dwelling for the special needs of a disabled person; or (l) provision of separate sleeping accommodation for persons of different sexes aged 10 or over but under the age of 20 who live with the claimant and for whom the claimant or the claimant’s partner is responsible.

• (xiv) in paragraph 17, after sub-paragraph (2) insert—

(2A) Where a non-dependant deduction is being made under the Loans for Mortgage Interest Regulations 2017, the amount of the deduction under sub-paragraph (1) or (2) is to be reduced by an amount equal to that non-dependant deduction.

; and

• (xv) in paragraph 18, omit sub-paragraph (2);

• (g) in Schedule 7 (sums to be disregarded in the calculation of income other than earnings)—

• (i) for paragraph 30 substitute—

(30) Any payment received under an insurance policy taken out to insure against the risk of being unable to maintain repayments on a loan which qualifies under Part 1 of Schedule 1 to the Loans for Mortgage Interest Regulations 2017 (legacy benefit claimants and SPC claimants) and used to meet such repayments.

; and

• (ii) in paragraph 31—

• (aa) in sub-paragraph (1)(a) for “under Schedule 2 (housing costs)” substitute “under Part 1 of Schedule 1 to the Loans for Mortgage Interest Regulations”;

• (bb) for sub-paragraph (1)(b) substitute—

(b) any charge which qualifies in accordance with paragraph 16 of Schedule 2 (housing costs) to these Regulations or any interest payment on a loan which qualifies under Part 1 of Schedule 1 to the Loans for Mortgage Interest Regulations, to the extent that the charge or payment is not met under these Regulations or by loan payments (as the case may be);

• (cc) in sub-paragraph (1)(c) for “under paragraph 14 or 15 of Schedule 2” substitute “under Part 1 of Schedule 1 to the Loans for Mortgage Interest Regulations”;

• (dd) after sub-paragraph (2) insert—

(3) In this paragraph— (a) “Loans for Mortgage Interest Regulations” means the Loans for Mortgage Interest Regulations 2017; (b) “loan payments” has the meaning given in the Loans for Mortgage Interest Regulations.

4

Schedule 2 of the SPC Regulations is amended as follows—

• (a) in paragraph 1—

• (i) in sub-paragraph (1)(b), for “under paragraphs 11 to 13” substitute “under paragraph 13”;

• (ii) omit sub-paragraph (2);

• (b) in paragraph 5, omit sub-paragraphs (2) to (13);

• (c) omit paragraphs 7 to 12;

• (d) in paragraph 13—

• (i) for the heading substitute “Housing costs”;

• (ii) in sub-paragraph (2)(c), for “the same meaning it has in paragraph 12(2)” substitute “the meaning in sub-paragraph (7)”;

• (iii) after sub-paragraph (6) insert—

(7) For the purposes of sub-paragraph (2)(c), “repairs and improvements” means any of the following measures undertaken with a view to maintaining the fitness of the dwelling for human habitation or, where the dwelling forms part of a building, any part of a building containing that dwelling— (a) provision of a fixed bath, shower, wash basin, sink or lavatory, and necessary associated plumbing, including the provision of hot water not connected to a central heating system; (b) repairs to existing heating system; (c) damp proof measures; (d) provision of ventilation and natural lighting; (e) provision of drainage facilities; (f) provision of facilities for preparing and cooking food; (g) provision of insulation of the dwelling occupied as the home; (h) provision of electric lighting and sockets; (i) provision of storage facilities for fuel or refuse; (j) repairs of unsafe structural defects; (k) adapting a dwelling for the special needs of a disabled person; or (l) provision of separate sleeping accommodation for persons of different sexes aged 10 or over but under the age of 20 who live with the claimant and for whom the claimant or the claimant’s partner is responsible.

; and

• (e) in paragraph 14, after sub-paragraph (2) insert—

(2A) Where a non-dependant deduction is being made under the Loans for Mortgage Interest Regulations 2017, the amount of the deduction under sub-paragraph (1) or (2) is to be reduced by an amount equal to that non-dependant deduction.

5

The UC Regulations are amended as follows—

• (a) omit regulation 25(2)(b);

• (b) omit regulation 26(3)(b)(i);

• (c) in regulation 26(3)(b)(ii), omit “only”;

• (d) omit regulation 66(1)(h)(ii);

• (e) in Schedule 1—

• (i) in paragraph 3(f), for “within the meaning of paragraph 4” substitute “within the meaning of Schedule 1 of the Loans for Mortgage Regulations 2017”;

• (ii) omit paragraphs 4 to 6;

• (iii) in paragraph 7(3)(a), for “a loan that falls within paragraph 5” substitute “a qualifying loan within the meaning of regulation 2 of the Loans for Mortgage Interest Regulations 2017”;

• (f) in Schedule 5—

• (i) in paragraph 2, omit the definitions of “alternative finance arrangements”, “alternative finance payments”, “loan interest payments” and “standard rate”;

• (ii) for paragraph 3(1), substitute—

(1) “Relevant payments” means one or more payments which are service charge payments.

• (iii) omit paragraph 3(2);

• (iv) in paragraph 9, for “the aggregate of the amounts resulting from paragraphs 10, 11 and 13” substitute “the amount resulting from paragraph 13”; and

• (v) omit paragraphs 10, 11 and 12.

6

Regulation 29 of the Transitional Provisions Regulations is amended as follows—

• (a) in paragraph (1)(b)(i), for “paragraphs 14 to 16 of Schedule 2” substitute “paragraph 16 of Schedule 2”;

• (b) in paragraph (1)(b)(ii), for “paragraphs 16 to 18 of Schedule 6” substitute “paragraph 18 of Schedule 6”; and

• (c) in paragraph (1)(b)(iii), for “paragraphs 15 to 17 of Schedule 3” substitute “paragraph 17 of Schedule 3”.

Signed

Signed by authority of the Secretary of State for Work and Pensions

Caroline Dinenage — Parliamentary Under-Secretary of State — Department for Work and Pensions — 2017-07-05

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations make provision for the Secretary of State to make loan payments to claimants of income-related employment and support allowance, income support, income-based jobseeker’s allowance, state pension credit or universal credit (referred to as “qualifying benefits”) or, if applicable, direct to the claimant’s mortgage lender, in respect of the claimant’s liability to make owner-occupier payments (principally mortgage interest) on the claimant’s home.

The powers to make such provision are contained in sections 18 to 21 of the Welfare Reform and Work Act 2016 (c. 7) (the “2016 Act”). The Regulations also make consequential changes to the regulations providing for the qualifying benefits so that support with owner-occupier payments is no longer payable as part of the benefit award.

Regulation 1 provides for the citation and commencement of these Regulations. The Regulations come into force on 27th July 2017, with the exception of regulations 18 to 21 which come into force on 6th April 2018.

Regulation 2 sets out the definitions which are used in these Regulations.

Regulation 3 provides that the Secretary of State may offer loan payments to a claimant in respect of any liability the claimant has, or is treated as having, to make owner-occupier payments in respect of the accommodation the claimant is, or is treated as, occupying as the claimant’s home. The meaning of “owner-occupier payments”, the circumstances in which a claimant is, or is to be treated as, liable to make owner-occupier payments and the circumstances in which a claimant is, or is to be treated as, occupying accommodation as the claimant’s home (referred to as the “relevant accommodation”) are set out in Schedules 1 to 3 to the Regulations.

Regulation 3(4) provides that a claimant of universal credit will not be eligible for the offer of loan payments if any member of the benefit unit (comprised of the claimant and his or her partner, if any) has any earned income.

Regulation 4 provides that the offer of loan payments is accepted where the Secretary of State has received the loan agreement signed by, in the case of a single claimant, the claimant and the claimant’s partner (if any), or joint claimants, and the relevant documents referred to in regulation 5(2).

Under regulation 5, the Secretary of State shall only make the loan payments if the offer is accepted and certain conditions are met. The conditions are that—

• (a) in England and Wales, where the legal owners of the relevant accommodation are all in the benefit unit, each legal owner has executed a charge by way of legal mortgage. However, where any legal owners are not in the benefit unit, any legal owners who are in the benefit unit must execute an equitable charge in respect of his or her beneficial interest in the accommodation;

• (b) in Scotland, each legal owner within the benefit unit has executed a standard security in respect of his or her interest in the relevant accommodation;

• (c) the Secretary of State has obtained written consent from any person in the benefit unit who is not a legal owner to the creation of a charge;

• (d) the Secretary of State has provided certain information about the loan payments, which is set out in regulation 6, to the claimant and the claimant’s partner (if any).

Regulation 7 sets out the intervals at which the loan payments will be made to the claimant or, if relevant, direct to the claimant’s mortgage lender.

Regulation 8 provides for the day from which loan payments will be made, which will not be before 6th April 2018.

Under regulation 9(1), loan payments will continue to be made at intervals indefinitely. However, if one of the circumstances in regulation 9(3) occurs (which includes where the claimant ceases to be entitled to a qualifying benefit), the loan payments will stop.

Regulation 9(4) provides that where a claimant ceases to be entitled to income support, an income-based jobseeker’s allowance or an income-related employment and support allowance because, in the case of a single claimant, the claimant or the claimant’s partner, or either joint claimant, starts remunerative work, the loan payments will be paid to the claimant for a period of 4 weeks if the conditions in paragraph (5) are met.

Regulation 10 provides that the amount of each loan payment will be the sum of the amounts calculated under regulations 11 and 12. Regulation 11 provides for the calculation of an amount to be included in each loan payment in respect of qualifying loans. Regulation 12 provides for the calculation of an amount to be included in respect of alternative finance arrangements (this is applicable to universal credit and state pension credit claimants only).

Regulation 13 sets out how the standard rate, which is used to determine the amount of each loan payment, is determined. Regulation 14 applies a non-dependant deduction to the loan payment calculated under regulation 10, save in the case of a universal credit claimant.

Regulation 15 makes provision as to the payment of interest on the sum of the loan payments made.

Regulation 16 provides the circumstances and manner in which a claimant must repay the sum of the loan payments and accrued interest. Under regulation 16(8) and (9) a claimant may repay the outstanding amount voluntarily.

Under regulation 17, each loan payment must be made direct to a claimant’s lender where the conditions in paragraph (2) are met (including that the lender satisfies the definition of “qualifying lender” in the 2016 Act); otherwise the loan payments must be made to the claimant.

Regulation 18 provides that the amendments in Schedule 5 have effect.

Regulation 19 contains transitional provisions for the situation where an existing claimant is entitled to a qualifying benefit, including an amount for owner-occupier payments, on 5th April 2018. In this case, the amendments made by Schedule 5 are treated as if they were not in force for a temporary period, enabling support with owner-occupier payments to continue to be paid as part of a claimant’s qualifying benefit during this time.

Regulation 20 provides that where the Secretary of State determines that an existing claimant lacks capacity to make decisions about entering into a loan agreement, the amendments made by Schedule 5 are treated as if they were not in force until a relevant person has made a decision (for example, a decision to appoint a deputy with power to act on the claimant’s behalf in respect of entering into a loan agreement), enabling support with owner-occupier payments to continue to be paid as part of a claimant’s qualifying benefit during this time.

Regulation 21 provides that where a claimant or the claimant’s former partner was entitled to a legacy benefit within one month before a claim for universal credit is made, and the claimant or the former partner was entitled to an amount in respect of housing costs as part of that benefit award or to loan payments, the claimant will be entitled to loan payments in conjunction with the award of universal credit without having to serve the qualifying period. Where the previous award did not include an amount for housing costs because the qualifying period was in the course of being served, the regulation provides for a modified qualifying period in relation to the universal credit award.

Regulation 22 enables any function of the Secretary of State under these Regulations to be delegated to a person authorised by the Secretary of State for that purpose.

Schedule 1 to the Regulations sets out the meaning of owner-occupier payments.

Schedule 2 sets out the circumstances in which a claimant is, or is to be treated as, liable to make owner-occupier payments.

Schedule 3 sets out the circumstances in which a claimant is, or is to be treated as, occupying accommodation as the claimant’s home.

Schedule 4 makes provision for direct payments to qualifying lenders where the circumstances in regulation 17(2) apply.

Schedule 5 sets out amendments to the provisions of the regulations which currently provide for support with owner-occupier payments to be included in a claimant’s qualifying benefit, so that such support is no longer included.

An impact assessment has not been produced for this instrument as it has no impact on business and civil society organisations. This instrument has no impact on the public sector.

Footnotes

[^f00001]: 1995 c. 18. Section 35(1) is cited for the meaning of “prescribed” and “regulations”. Section 36(4) was amended by paragraph 63 of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 9).

[^f00002]: 2002 c. 16. Section 17(1) is cited for the meaning of “prescribed” and “regulations”. Section 19(1) applies section 175(1), (3) and (4) of the Social Security Contributions and Benefits Act 1992 (c. 4) to regulations under the State Pension Credit Act 2002.

[^f00003]: 1992 c. 4. Section 137(1) is cited for the meaning of “prescribed”. Section 175(1) and (4) was amended by paragraph 29(2) and (4) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999.

[^f00004]: 2007 c. 5. Section 24(1) is cited for the meaning of “prescribed” and “regulations”.

[^f00005]: 2012 c. 5.

[^f00006]: 2016 c. 7.

[^f00007]: 1992 c. 5.

[^f00008]: S.I. 2008/794. Regulation 67 was amended by S.I. 2009/3228 and 2017/204.

[^f00009]: S.I. 1987/1967. Regulation 17 was amended by S.I. 1988/1445, 1989/1678, 1991/387, 2003/455, 2005/2687, 2006/588 and 2009/3228.

[^f00010]: S.I. 1996/207. Regulation 83 was amended by S.I. 2003/455 and 1121 and 2009/3228. Regulation 84 was amended by S.I 1996/1516, 2001/3767, 2003/455 and 1121 and 2009/3228. Regulations 86A and 86B were amended by S.I. 2000/1978, 2001/3767, 2003/1121 and 2009/3228.

[^f00011]: 2002 c. 6. Section 2 is amended by paragraph 14 of Schedule 24 to the Civil Partnership Act 2004 (c. 33).

[^f00012]: S.I. 2013/376. Regulation 23(1) was amended by S.I. 2017/204.

[^f00013]: Regulation 21 was amended by S.I. 2014/2887 and 2015/1362.

[^f00014]: There have been amendments to regulation 2 which are not relevant to these Regulations.

[^f00015]: S.I. 1987/1968. Paragraph 4 was amended by S.I. 1988/522.

[^f00016]: Regulation 2 was amended by S.I. 2009/604 and other amending instruments which are not relevant to these Regulations.

[^f00017]: There have been amendments to regulation 1 which are not relevant to these Regulations.

[^f00018]: 2002 c. 9.

[^f00019]: S.I. 1987/1968.

[^f00020]: Paragraph 1(3) was amended by S.I. 2012/913, 2013/630 and 2017/204.

[^f00021]: Paragraph 1(3) was amended by S.I. 1995/2927, 2006/2378, 2008/1554, 2012/913, 2013/630 and 2017/204.

[^f00022]: Paragraph 1(3) was amended by S.I. 1989/534, 1996/1516, 2006/2378, 2008/1554, 2012/913, 2013/630 and 2017/204.

[^f00023]: Paragraph 1(2)(a) was amended by S.I. 2002/3197, 2005/3360, 2006/718, 2008/1554, 2012/913, 2013/388, 591 and 630, 2014/2888 and 2017/204.

[^f00024]: 1992 c. 14.

[^f00025]: S.I. 2008/794. The Regulations have been modified in their application to certain claimants by S.I. 2008/3195, as amended by S.I. 2009/3257.

[^f00026]: 2011 c. 4.

[^f00027]: S.I. 1987/1967. The Regulations have been modified in their application to certain claimants by S.I. 2008/3195, as amended by S.I. 2009/3257.

[^f00028]: S.I. 1996/207. The Regulations have been modified in their application to certain claimants by S.I. 2008/3195, as amended by S.I. 2009/3257.

[^f00029]: 1925 c. 20.

[^f00030]: S.I. 2008/3195. The Regulations were amended by S.I. 2009/3257.

[^f00031]: S.I. 2014/1230. Regulation 7 was amended by S.I. 2014/2887.

[^f00032]: Regulation 3 was amended by S.I. 1988/1445, 1989/534 and 1678, 1990/1776, 1991/2334, 1994/3061 and 1995/516.

[^f00033]: There have been amendments to regulation 2 which are not relevant to these Regulations.

[^f00034]: 2005 c. 9.

[^f00035]: 2000 asp 4.

[^f00036]: Paragraph 14 was amended by S.I. 1995/2927, 1996/206 and 1944, 1997/2863, 1998/2231, 1999/714, 1921 and 3178, 2000/724 and 1981, 2001/488 and 1029, 2002/841 and 3019, 2005/2465, 2006/2378, 2008/698, 1554, 2428 and 2767 and 2011/674 .

[^f00037]: Paragraph 13 was amended by S.I. 1996/1516, 1517 and 2538, 1997/827 and 2863, 1998/2231, 1999/714, 1921 and 2860, 2000/724 and 1978, 2001/488 and 1029, 2002/841 and 3019, 2005/2465, 2006/2378, 2008/698, 1554, 1826 and 2767, 2009/480 and 2011/674 and 2425.

[^f00038]: Paragraph 15 was amended by S.I. 2008/2428, 2011/674, 2425 and 2428, 2013/388 and 599 and 2015/1647.

[^f00039]: 1992 c. 4. Section 142 was substituted by section 1(2) of the Child Benefit Act 2005 (c. 6).

[^f00040]: Regulation 4A was inserted by S.I. 2016/624.

[^f00041]: S.I. 2002/1792. The Regulations have been modified in their application to certain claimants by S.I. 2008/3195, as amended by S.I. 2009/3257.

[^f00042]: 1970 c. 35.

[^f00043]: S.I. 2014/1230.

[^f00044]: S.I. 2013/376.

[^f00045]: Regulation 156(10) was amended by S.I. 2008/2428, 2011/1740 and 2015/643.

[^f00046]: Regulation 15 was amended by S.I. 1993/2119 and 2002/2402.

[^f00047]: Regulation 77 was amended by S.I. 2002/2402.

[^f00048]: Regulation 4 was amended by S.I. 2013/1508.

[^f00049]: Regulation 156 was amended by S.I. 2008/2428, 2011/1740 and 2015/643.

[^f00050]: Regulation 16 was amended by S.I. 1988/663, 1989/534, 1990/547, 1992/468 and 3147, 1993/2119, 1996/206 and 1944, 2005/445, 2078 and 2687, 2006/2378, 2011/1740 and 2015/643.

[^f00051]: Regulation 78 was amended by S.I. 1996/1516 and 1517, 2000/1978, 2005/2687, 2006/588 and 2378, 2008/1554, 2011/1740, and 2015/643.

[^f00052]: Regulation 5 was amended by S.I. 2002/1792, 3019 and 3197, 2003/2274, 2005/445, 2078 and 2687, 2006/2378, 2008/2424 and 2016/624.

[^f00053]: Regulation 43 was amended by S.I. 2009/3228, 2013/2536 and 2014/3255.

[^f00054]: Regulation 5 was amended by S.I. 1988/663, 1445 and 2022, 1990/547, 1991/1559, 1993/2119, 1995/516, 1996/1944, 1999/3178, 2000/681, 2001/488, 2002/2689, 2007/2618, 2008/698 and 2014/3255. Regulation 6 was amended by S.I. 1999/2556, 2000/681, 2003/1589, 2004/963, 2007/3183, 2008/1554, 2009/3228 and 2010/641.

[^f00055]: Regulation 53 was amended by S.I. 2009/3228, 2013/2536, 2014/3255 and 2015/389.

[^f00056]: Paragraph 2 was amended by S.I. 2002/3197, 2003/2274 and 2014/3255.

[^f00058]: Paragraph 17 was amended by S.I. 2006/217 and 2378.

[^f00059]: Paragraph 16 was amended by S.I. 2006/217 and 2378.

[^f00060]: Paragraph 13 was amended by S.I. 1987/1967, 1996/207, 2002/3019, 2006/2378, 2008/794 and 2017/524.

[^f00061]: Paragraph 18 was amended by S.I. 1995/2927, 1996/2518, 2004/2327, 2005/3360, 2006/217, 2008/1553 and 2767, 2010/641, 2011/2425, 2013/388, 443, 591 and 630, 2014/2888 and 2017/204 and 329.

[^f00062]: Paragraph 17 was amended by S.I. 1996/1517 and 2538, 1997/827, 1999/2518 and 2860, 2003/1195, 2004/2327, 2005/3360, 2006/217, 2008/1554 and 2767, 2010/641, 2011/2425, 2013/388, 443, 591 and 630, 2014/2888, 2017/204, 260 and 329.

[^f00063]: Paragraph 19 was amended by S.I. 2008/2428, 2013/388, 591 and 630, 2014/2888 and 2017/204.

[^f00064]: Paragraph 14 was amended by S.I. 1987/1968, 2002/3197, 2003/526, 1195 and 2274, 2004/552 and 2327, 2005/522 and 3360, 2006/645 and 2378, 2007/668, 2008/632, 1554 and 2767, 2009/497, 2010/641 and 793, 2011/821 and 2425, 2012/780, 2013/388, 443, 574, 591 and 630, 2014/516 and 2888, 2015/457, 2016/242, 2017/204, 260 and 329.

[^f00065]: 2011 c. 4.

[^f00070]: 2012 c. 5.

[^f00071]: S.I. 2014/1230.

[^f00072]: Paragraph 15 was amended by S.I. 2008/2767. Paragraph 16 was amended by S.I. 2006/217 and 2378. The Regulations have been modified in their application to certain claimants by S.I. 2008/3195, as amended by S.I. 2009/3257 and 2011/2425.

[^f00073]: Paragraph 16 was amended by S.I. 2008/2767. Paragraph 17 was amended by S.I. 2006/217 and 2378.

[^f00074]: Paragraph 7(1)(b) was amended by S.I. 2015/1647.

[^f00075]: Paragraph 9(1) was amended by S.I. 2015/1647.

[^f00076]: Paragraph 8(1)(b) was amended by S.I. 1995/2927 and 2015/1647.

[^f00077]: Paragraph 13 was amended by S.I. 1996/1516, 1517 and 2538, 1997/827 and 2863, 1998/2231, 1999/714, 1921 and 2860, 2000/724 and 1978, 2001/488 and 1029, 2002/841 and 3019, 2005/2465, 2006/2378, 2008/698, 1554, 1826 and 2767, 2009/480 and 2011/674 and 2425.

[^f00078]: Paragraph 15 was amended by S.I. 2008/2428, 2011/674, 2425 and 2428 and 2013/388 and 591.

[^f00079]: Paragraph 14 was amended by S.I. 1995/2927, 1996/206 and 1944, 1997/2863, 1998/2231, 1999/714, 1921 and 3178, 2000/724 and 1981, 2001/488 and 1029, 2002/841 and 3019, 2005/2465, 2006/2378, 2008/698, 1554, 2428 and 2767 and 2011/674.

[^f00080]: Regulation 29 was amended by S.I. 2015/1647

[^f00081]: 1974 c. 39.

[^f00082]: Regulation 75(1)(a) was substituted by S.I. 2012/2568.

[^f00083]: 2007 c. 3. Part 10A was inserted by section 365 of, and Part 1 of Schedule 2 to, the Taxation (International and Other Provisions) Act 2010 (c. 8).

[^f00084]: 1992 c. 52.

[^f00085]: There have been amendments to regulation 3 which are not relevant to these Regulations.

[^f00086]: 2000 c. 14. Section 3 was amended by paragraph 4(2) and (3) of Part 1 of Schedule 5 to the Health and Social Care Act 2008 (c. 14).

[^f00087]: 2010 asp 8.

[^f00088]: 1993 c. 44. Section 3(1) was amended by section 2(a) of the Crofting Reform etc. Act 2007 (asp 7) and section 22(1) of the Crofting Reform (Scotland) Act 2010 (asp 4).

[^f00089]: The definition of “full-time student” was amended by S.I. 2000/1981 and 2006/718.

[^f00090]: The definition of “full-time student” was amended by S.I. 1996/1516, 2001/1434 and 2319, 2006/718, 2008/3157, 2010/641 and 2015/971.

[^f00091]: There have been amendments to regulation 131 which are not relevant to these Regulations.

[^f00092]: There have been amendments to regulation 1(2) which are not relevant to these Regulations.

[^f00093]: 2006 c. 41.

[^f00094]: 1978 asp 29. Section 10F(1)(A) was inserted by the Public Services Reform (Scotland) Act 2010 (asp 8).

[^f00095]: Regulation 2(1) was amended by S.I. 2000/1981 and other amending instruments which are not relevant to these Regulations.

[^f00096]: Regulation 1(3) was amended by S.I. 2000/1922 and other amending instruments which are not relevant to these Regulations.

[^f00097]: There have been amendments to regulation 2 which are not relevant to these Regulations.

[^f00098]: Relevant amending instruments are: S.I. 1988/663, 1991/2742, 1993/1150 and 2119, 1994/2139 and 3061, 1995/482, 1998/2231, 2000/681 and 724, 2002/490, 2497 and 3019, 2003/455, 2379 and 2629, 2004/1141, 2006/2378, 2007/719, 2009/1488, 2010/1160 and 1907, 2011/674 and 2425, 2013/388 and 591, 2014/2888 and 2015/173 and 1754 and other amending instruments which are not relevant to these Regulations.

[^f00099]: Relevant amending instruments are: S.I. 1996/1516 and 2538, 1998/2231, 2000/681 and 724, 2002/490, 2003/455 and 511, 2006/2378, 2007/719, 2009/1488, 2010/1160, 2013/388 and 591, 2014/2888 and 2015/1754 and other amending instruments which are not relevant to these Regulations.

[^f00100]: Relevant amending instruments are: 2012/913, 2013/630 and 2017/204.

[^f00101]: 2002 c. 21. Section 9 is amended by the Act.

[^f00102]: 2007 c. 21.

[^f00103]: S.I. 2013/380.

Insurance payment deduction

14A

• (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 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

Transferring the loan between properties

16A

• (1) Subject to paragraph (6), where the conditions in paragraphs (2) and (3) are met, regulation 16 (repayment) applies in relation to the new property referred to in paragraph (2) instead of in relation to the relevant accommodation (“Property 1”).

• (2) The first condition is that the claimant or the claimant’s partner informs the Secretary of State that it is proposed to sell Property 1, and requests that the outstanding amount be transferred from Property 1 to a new property (“Property 2”).

• (3) The second condition is that prior to the completion of the sale of Property 1—

• (a) the conveyancer dealing with the sale of the property has provided a written undertaking to the Secretary of State to do the following—

• (i) to discharge the charge (in England and Wales), if any, or standard security (in Scotland), if any, in favour of the Secretary of State; and

• (ii) to transfer the outstanding amount to the conveyancer for the claimant or the claimant’s partner, if not also acting on their behalf; and

• (b) the conveyancer for the claimant or the claimant’s partner has provided a written undertaking to the Secretary of State to do the following—

• (i) to register a new charge (in England and Wales) or standard security (in Scotland) in favour of the Secretary of State for the outstanding amount in respect of Property 2; and

• (ii) if completion of the sale and completion of the purchase do not happen simultaneously to hold the outstanding amount to the order of the Secretary of State until completion of the purchase of Property 2.

• (4) Where the Secretary of State meets the reasonable costs incurred by the conveyancer for the claimant or the claimant’s partner for the purpose of transferring the loan from Property 1 to Property 2—

• (a) these costs may be added to the outstanding amount of the loan; and

• (b) any costs added to the outstanding amount are to be considered as a loan payment for the purpose of accruing interest under regulation 15.

• (5) For the purposes of sub-paragraphs (a)(ii) and (b)(ii) of paragraph (3)—

• (a) in England and Wales, where the available equity in Property 1 as referred to in regulation 16(4), or, as the case may be, the amount of the equitable interest or interests, as referred to in regulation 16(5), is or are less than the outstanding amount, the reference in those sub-paragraphs to the outstanding amount is a reference to the available equity or to the amount of the equitable interest or interests, as the case may be; and

• (b) in Scotland, where the available equity in the whole or part of Property 1 over which the standard security is held, as referred to in regulation 16(6), is less than the outstanding amount, the reference in those sub-paragraphs to the outstanding amount is a reference to the available equity.

• (6) If completion in respect of Property 2 does not take place within twelve weeks beginning with the date that completion of the sale of Property 1 occurs or by such later date as the Secretary of State may agree then paragraph (1) does not apply and the outstanding amount under regulation 16, together with any future interest which accrues on that amount under regulation 15, shall be immediately due and payable.

• (7) For the purposes of this regulation references to a claimant includes a former claimant.

• (8) Where, under paragraph (1), the provisions of regulation 16 apply in relation to Property 2, this regulation applies as if any reference to the relevant accommodation were a reference to Property 2 (with no limit to the number of times this regulation may be treated as applying in relation to a new property).

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 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 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 Secretary of State 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 Secretary of State, or a person authorised to exercise functions of the Secretary of State, 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 Secretary of State 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); and

• (b) the claimant has not provided that information to the Secretary of State 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 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

• (1) The Claims and Payment Regulations are amended as follows.

• (2) Omit regulations 34A (deductions of mortgage interest which shall be made from benefit and paid to qualifying lenders) and 34B (deductions of mortgage interest which may be made from benefits and paid to qualifying lenders in other cases).

• (3) In regulation 35 (deductions which may be made from benefit and paid to third parties), omit “Except as provided for in regulation 34A and Schedule 9A,”.

• (4) In Schedule 9 (deductions from benefit and direct payment to third parties)—

• (a) in paragraph 1(1), omit the definition of “mortgage payment”;

• (b) in paragraph 3—

• (i) omit sub-paragraph (2)(b)(i);

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

• (iii) in sub-paragraph (2A)(b)—

• (aa) in both places where the words occur omit “paragraph 4(8) or (11) or”;

• (bb) omit “paragraph 5(9) or (12) or”;

• (cc) omit “paragraph 6(10) or (13) or”;

• (iv) for sub-paragraph (4) substitute—

(4) 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 Secretary of State it is in the overriding interests of the family that paragraph (1) should apply.

• (v) omit sub-paragraphs (5) and (6);

• (c) in paragraph 9, omit sub-paragraph (2).

• (5) Omit Schedule 9A (deductions of mortgage interest from benefit and payment to qualifying lenders).

8

The Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance (Claims and Payments) Regulations 2013 are amended as follows—

• (a) omit regulation 59 (direct payment to lender of deductions in respect of interest on secured loans);

• (b) in regulation 60 (deductions which may be made from benefit and paid to third parties), omit “Except as provided for in regulation 59 and Schedule 5,”;

• (c) omit Schedule 5 (direct payment to lender of deductions in respect of interest on secured loans);

• (d) in Schedule 6 (deductions from benefit and direct payment to third parties), omit paragraph 6(5) and (6).

9

• (1) The Social Fund Maternity and Funeral Expenses (General) Regulations 2005 are amended as follows.

• (2) In regulation 3 (interpretation), in paragraph (1)—

• (a) in the appropriate place insert—

• “owner-occupier loan payments” means loan payments made under the Loans for Mortgage Interest Regulations 2017;

• (b) after paragraph (4) insert—