Q&As

Is rule 9.2(1)(e) of the Insolvency (England and Wales) Rules 2016 still in effect if section 138(1)(b) of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992) was repealed by section 70(1) of the Welfare Reform Act 2012? The explanatory note of the Social Fund (Budgeting Loans) (Applications and Miscellaneous Provisions) also states budgeting loans will remain as part of SSCBA 1992, s 138(1)(b). If SSCBA 1992, s 138(1)(b) was repealed, why does r 9.2(1)(e) still cite this as an excluded debt?

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Produced in partnership with Simon Kerry of 14 Labour Injunctions
Published on: 04 May 2023
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In summary, yes, Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, r 9.2(1)(e) remains in effect. Section 138(1)(b) of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992) has not been fully repealed, and remains in force (as modified by section 71 of the Welfare Reform Act 2012 (WRA 2012)) in respect of ‘budgeting loans,’ as well as community care grants and crises loans applied for before 1 April 2013. IR 2016, SI 2016/1024, r 9.2(1)(e) therefore continues in force, and remains potentially relevant to repayment of loans governed by SSCBA

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