Explanatory note

This Order provides for the coming into force on 5th April 1999 of provisions in the Social Security Act 1998 which amend provisions in the Social Security Contributions and Benefits Act 1992 relating to payments from the social fund.

Article 2(a) commences provisions which enable payments to be made out of the social fund by way of community care grant, crisis loan or budgeting loan in accordance with directions given or guidance issued by the Secretary of State. The terms “community care grant”, “crisis loan” and “budgeting loan” are defined. Provision is made that an application for an award of a community care grant may be treated as an application for an award of a crisis loan and vice versa in circumstances specified in a direction issued by the Secretary of State. Provision is also made as to the factors which a social fund officer should take into account in determining whether to make a budgeting loan.

Article 2(b) and (c) commence provisions which make amendments to, and repeal, provisions consequential on the effect of the provisions commenced by article 2(a).

Article 3 makes transitional provision in the light of the effect of the provisions commenced by article 2. Article 3(1) provides that questions arising on applications or decisions made before 5th April 1999 shall be determined subject to directions and guidance in force on 4th April 1999. Article 3(2) provides that the references to appropriate officers in section 140(1A) (which is inserted by virtue of article 2(a)) shall be treated as references to social fund officers.

This Order does not impose a charge on business.