Citation, commencement and interpretation

1.-(1) These Regulations may be cited as the Income Support (General) (Standard Interest Rate Amendment) (No. 3) Regulations 1996 and shall come into force on 15th December 1996.

(2) These Regulations shall have effect in relation to any particular claimant-

(a)in a case where income support is paid to the claimant in arrears, in accordance with paragraph 7(1)(i) of Schedule 7 to the Claims and Payments Regulations(3) (date when change of circumstances is to take effect)-

(i)from the first day of the benefit week which includes 22nd December 1996; or

(ii)if the claim for income support is for a period beginning after 22nd December 1996, from the first day of the first benefit week commencing after 15th December 1996;

(b)in a case where income support is paid to the claimant in advance, in accordance with paragraph 7(1)(ii) of Schedule 7 to the Claims and Payments Regulations, from the first day of the first benefit week commencing after 22nd December 1996;

and for this purpose, the expressions "claimant" and "benefit week" have the same meanings as in regulation 2(1) of the Income Support Regulations(4) (interpretation).

(3) In these Regulations, "the Claims and Payments Regulations" means the Social Security (Claims and Payments) Regulations 1987(5) and "the Income Support Regulations" means the Income Support (General) Regulations 1987(6).

Amendment of Schedule 3 to the Income Support Regulations

2. In paragraph 12(1)(a) of Schedule 3 to the Income Support Regulations(7) (standard rate of interest on qualifying loans), for the words "7.16 per cent." there shall be substituted the words "6.89 per cent.".

Revocation of the Income Support (General) (Standard Interest Rate Amendment) (No. 2) Regulations 1996

3. The Income Support (General) (Standard Interest Rate Amendment) (No. 2) Regulations 1996(8) are hereby revoked save that those Regulations shall continue to have effect until the day before the first day of the benefit week having effect in relation to any particular claimant for the purpose of Regulation 1(2) of these Regulations.

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend Schedule 3 to the Income Support (General) Regulations 1987 (S.I. 1987/1967), as substituted and amended, with respect to the standard rate of interest applicable to a loan which qualifies for income support under that Schedule to those Regulations. The new rate is 6.89 per cent. (regulation 2). The Regulations also revoke, with a saving provision, regulations which made a previous amendment to that standard rate of interest (regulation 3).

These Regulations do not impose a charge upon businesses.