Paragraph 12 Standard rate to be applied under paragraphs 10 and 11

The standard rate is the average mortgage rate published by the Bank of England which, immediately before this Schedule comes into force, has effect for the purposes of paragraph 12 of Schedule 3 to the Income Support (General) Regulations 1987^f1 (which makes provision as to the standard rate to be used in determining amounts applicable to a claimant in respect of income support).

The standard rate is to be varied each time that sub-paragraph (3) applies.

This sub-paragraph applies when, on any reference day, the Bank of England publishes an average mortgage rate which differs by 0.5% or more from the standard rate that applies on that reference day (whether it applies by virtue of sub-paragraph (1) or by virtue of a previous application of this sub-paragraph).

The average mortgage rate published on that reference day then becomes the new standard rate in accordance with sub-paragraph (5).

Any variation in the standard rate by virtue of sub-paragraphs (2) to (4) comes into effect—

At least 7 days before a variation of the standard rate comes into effect under sub-paragraph (5)(b), the Secretary of State must arrange for notice to be published on a publicly accessible website of—

In this paragraph—

• “average mortgage rate” means the effective interest rate (non-seasonally adjusted) of United Kingdom resident banks and building societies for loans to households secured on dwellings published by the Bank of England in respect of the most recent period specified for that rate at the time of publication^f2;

• “reference day” means any day falling on or after the date on which this Schedule comes into force.