This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on 26 October 2007, are made under the Social Security Act 1964 (the Act). They amend the Social Security (Temporary Additional Support) Regulations 2005 by adding a new regulation 8(3)(g), which excludes certain payments from a person’s cash assets, which are considered in determining his or her eligibility for temporary additional support. The excluded payments are compensation or ex gratia payments—

• made to a person, on or after 26 October 2007, by or on behalf of the Crown; and

• made because the person is a former patient of the Lake Alice Psychiatric Hospital.

The exclusion applies only for the first 12 months after the payments concerned are made. For that 12-month period, the excluded payments are also—

• not income or cash assets (and any income derived, directly or indirectly, from them is also not income) for the purposes of the Act, because of the related exemptions (which also extend to similar payments made on or after 1 September 2001) in regulations 5 and 6 of the Social Security (Income and Cash Assets Exemptions—Lake Alice Compensation or Ex Gratia Payments) Regulations 2007; and

• assets exempt from means assessment under Part 4 of the Act, because of the related exemption in regulation 10(1)(h) of the Social Security (Long-term Residential Care) Regulations 2005.