Paragraph

For paragraphs 29 and 30 of Schedule 9 to the Income Support Regulations, there shall be substituted the following paragraphs

“29

(1)

Subject to sub-paragraph (2) 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 paragraph 15 or 16 of Schedule 3 (housing costs in respect of loans to acquire an interest in a dwelling, or for repairs and improvements to the dwelling, occupied as the home) and used to meet such repayments, to the extent that it does not exceed the aggregate of—

(a)

the amount, calculated on a weekly basis, of any interest on that loan which is in excess of the amount met in accordance with Schedule 3 (housing costs);

(b)

the amount of any payment, calculated on a weekly basis, due on the loan attributable to the repayment of capital; and

(c)

any amount due by way of premiums on—

(i)

that policy, or

(ii)

a policy of insurance taken out to insure against loss or damage to any building or part of a building which is occupied by the claimant as his home.

(2)

This paragraph shall not apply to any payment which is treated as possessed by the claimant by virtue of regulation 42(4)(a)(ii) (notional income).

30

(1)

Except where paragraph 29 applies, and subject to sub-paragraph (2), any payment made to the claimant which is intended to be used and is used as a contribution towards—

(a)

any payment due on a loan if secured on the dwelling occupied as the home which does not qualify under Schedule 3 (housing costs);

(b)

any interest payment or charge which qualifies in accordance with paragraphs 15 to 17 of Schedule 3 to the extent that the payment or charge is not met;

(c)

any payment due on a loan which qualifies under paragraph 15 or 16 of Schedule 3 attributable to the payment or capital;

(d)

any amount due by way of premiums on—

(i)

that policy, or

(ii)

a policy of insurance taken out to insure against loss or damage to any building or part of a building which is occupied by the claimant as his home.

(e)

his rent in respect of the dwelling occupied by him as his home but only to the extent that it is not met by housing benefit; or his accommodation charge but only to the extent that the actual charge increased, where appropriate, in accordance with paragraph 2 of Schedule 4 exceeds the amount determined in accordance with regulation 19 (residential care and nursing homes) or the amount payable by a local authority in accordance with Part III of the National Assistance Act 1948.”.