delete The Income Support (General) (Standard Interest Rate Amendment) Regulations 1996
These Regulations amend the Income Support (General) Regulations 1987 by reducing the standard rate of interest on qualifying loans from 7.74% to 7.48%. They come into force on 23rd June 1996 with specific effective dates depending on whether income support is paid in arrears or advance, and revoke the Income Support (General) Amendment (No. 2) Regulations 1996 with transitional provisions.
Government-mandated interest rate caps within the welfare system distort private lending markets and create moral hazard by encouraging over-borrowing against subsidized rates. The regulation perpetuates dependence on state-managed housing finance rather than allowing competitive mortgage markets to function. Such price-fixing of credit terms within social security systems represents classic regulatory intervention that Hayek and Friedman identified as producing unintended consequences including misallocation of capital and delayed market correction of housing valuations.