(5) Regulations under subsection (3)(e) or (4) may in particular make provision about—
- (a) the persons to whom functions may be delegated;
- (b) the types of claim in relation to which functions may be delegated (by reference to the nature of the property, the amount of the claim, the identity of the claimant or otherwise), and
- (c) the payment and auditing of persons to whom functions are delegated.
Decisions on claims
7Decision on validity of claim
(1) Where a person makes a claim under section 1, the decision-maker must first decide whether the claim is valid.
(2) A claim is valid if—
- (a) it meets the conditions set out in—
- (i) section 1(1)(a) to (c) (in the case of a claim under section 1(1)), or
- (ii) section 1(2)(a) to (c) (in the case of a claim under section 1(2)), and
- (b) it is made in accordance with regulations under section 3.
(3) The Secretary of State may issue guidance on assessing the validity of claims, which may in particular include guidance on deciding whether property was damaged, destroyed or stolen in the course of a riot.
(4) Decision-makers must have regard to any guidance issued under subsection (3).
8Amount and payment of compensation
(1) If the decision-maker decides that a claim is valid, the decision-maker must then decide the amount of compensation, up to a maximum of £1 million per claim (the “compensation cap”), that is fair and reasonable.
(2) The amount of compensation must reflect only the loss directly resulting from the damage, destruction or theft of the property, and in particular must not reflect any consequential loss resulting from it, except in the circumstances described in subsection (3).
(3) Where a claimant’s home is rendered uninhabitable, the amount of compensation may reflect costs that the claimant incurs as a result of needing alternative accommodation.
(4) The Secretary of State may make regulations setting out—
- (a) considerations that decision-makers must take into account in deciding the amount that reflects the claimant’s loss,
- (b) considerations that decision-makers must take into account in deciding the amount of compensation payable as a result of a claimant needing alternative accommodation (and the regulations may include provision limiting the amount of time for which the costs of alternative accommodation may be claimed),
- (c) other factors that may affect the amount of compensation to be paid, and
