With immaculate timing, the DWP's very own political snowball loomed larger than ever this week. Accompanying its response to last November's consultation on the draft Financial Assistance Scheme and Incapacity Benefit (Miscellaneous Amendments) Regulations 2008, the Government laid the final Regs before Parliament. These allow for early unreduced payment of assistance for qualifying members who are aged 55 or over, who are not terminally ill, but have a significantly shortened life expectancy.

These will be the twelfth set of regulations with "The Financial Assistance Scheme" in their title to hit the statute book in less than four years. Nor are they the last; far from it. With the FAS the Government has created a mini-industry all of its own. On the very same day as these regs were laid, a thirteenth set was issued: a monumental consultation document 121 pages long, including 30 pages of draft regs in small print.

The draft Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 follow two sets of earlier regulations which came into force in 2008 (see earlier articles on this site). These latest proposals are supposed to implement the remaining elements of the December 2007 commitment made by the then Secretary of State, on significant improvements to the FAS. In addition, the new draft regs also make certain changes to the administration of the scheme, including a proposal to confer responsibility for the FAS on the Board of the Pension Protection Fund (PPF).

The consultation period began on 11 February and concludes on 25 March 2009. Subject to the outcome of this consultation and the Parliamentary timetable, it is hoped that these Regulations will come into force in the summer of 2009.

Aries comment

Even seasoned DWP-watchers might be somewhat taken aback by the size of this condoc and the implied micromanagement of taxpayer funds. Aficionados of legalese might be impressed by the attention to detail: for example, "comments are invited on whether all legal spouses of a polygamous marriage should qualify for an equal share of a single survivor's Assistance". All might wish that the same regulatory dedication was evident in the UK macro economic environment.

At present the FAS is administered by the FAS Operational Unit (FASOU), part of the DWP. The Government is intending to make some fundamental changes to the FAS, including taking the remaining assets of qualifying pension schemes into government and becoming responsible for the full payment of some qualifying members. In parallel with the consultation launched this week, the DWP will also be consulting on early proposals on asset transfer, the delivery of asset-backed payments (including lump sums) and the formal discharge of trustees of qualifying schemes. A formal consultation on draft Regulations is planned for the summer, with a view to their coming into force in winter 2009.

All these developments are explained for the benefit of trustees in a mercifully shorter four-page Trustee Update, also published this week.