(1)    These Regulations shall be cited as the Income Support (General) (Standard Interest Rate Amendment) Regulations 2004 and shall come into force on 21st March 2004.

(2)    In these Regulations, “the Decisions and Appeals Regulations” means the Social Security and Child Support (Decisions and Appeals) Regulations 1999 and “the Income Support Regulations” means the Income Support (General) Regulations 1987.

(3)    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 1(a) of Schedule 3A to the Decisions and Appeals Regulations (date on which change of circumstances takes effect in certain cases where a claimant is in receipt of income support)—

(i)    from the first day of the benefit week which includes 28th March 2004; or

(ii)    if the claim for income support is for a period commencing after 28th March 2004, from the first day of the first benefit week commencing after 21st March 2004;

(b)    in a case where income support is paid to the claimant in advance, in accordance with paragraph 1(b) of Schedule 3A to the Decisions and Appeals Regulations from the first day of the first benefit week commencing after 28th March 2004,

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

In paragraph 12(1)(a) of Schedule 3 to the Income Support Regulations (standard rate of interest on qualifying loans), for the words “5.07 per cent” there shall be substituted the words “5.33 per cent”.

The Income Support (General) (Standard Interest Rate Amendment) Regulations 2003 are hereby revoked save that those Regulations shall continue to have effect until the first day of the benefit week having effect in relation to any particular claimant for the purpose of regulation 1(3) of these Regulations.

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

Chris Pond

Parliamentary Under-Secretary of State,

Department for Work and Pensions

23rd February 2004

These Regulations amend Schedule 3 to the Income Support (General) Regulations 1987 (SI 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 5.33 per cent (regulation 2). The Regulations also revoke, with a saving provision, regulations which made the previous amendment to that standard rate of interest (regulation 3).

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business.