The 2018 Order brings into force a variation made by the Secretary of State to increase the rate per loan from 8.20 pence to 8.52 pence from 20 December 2018.
The Government ran a four-week consultation during October 2018 and the British Library Board, which has been responsible for administering the Public Lending Right Scheme since 2013, subsequently recommended an increase.
According to the Explanatory Memorandum, the reason for the increase is that there has been a reduction in the number of estimated loans of registered books across the UK compared with the number from the previous year. If the rate per loan is not increased, it would result in an underspend against the available budget for the year.
Payments under the Scheme are made to authors annually in arrears, no later than the end of the following financial year. Accordingly, payments made in relation to the increased rate will correspond to loans made between 1st July 2017 and 30th June 2018. To access the new legislation, click here.