The Income-related Benefits (Subsidy to Authorities) Amendment Order 2010

Made: 11th October 2010

Laid before Parliament: 14th October 2010

Coming into force: 26th November 2010

In accordance with section 176(1)[^f00003] of that Act, consultation has taken place with organisations appearing to the Secretary of State to be representative of the authorities concerned.

Citation, commencement and interpretation

1

• (1) This Order may be cited as the Income-related Benefits (Subsidy to Authorities) Amendment Order 2010 and comes into force on 26th November 2010.

• (2) Article 2 has effect from 1st April 2008.

• (3) Articles 3 and 4 have effect from 1st April 2009.

• (4) Articles 5 and 6 have effect from 1st April 2010.

• (5) In this Order, “the 1998 Order” means the Income-related Benefits (Subsidy to Authorities) Order 1998[^f00004].

Amendment of Schedule 1 to the 1998 Order taking effect from 1st April 2008

2

In Schedule 1[^f00005] to the 1998 Order, in the second column, substitute the figures set out in the second column of the table in Schedule 1 to this Order, in respect of the authorities listed in the first column of that table.

Amendment of article 18 of the 1998 Order taking effect from 1st April 2009

3

• (1) Article 18[^f00006] (additions to subsidy) of the 1998 Order is amended as follows.

• (2) In paragraph (1) for “paragraphs (8) and (9)” substitute “paragraph (8)”.

• (3) For paragraph (1)(e) substitute—

(e) where, during the relevant year, it is discovered that any overpayments of relevant benefit have been made which were authority error overpayments or administrative delay overpayments, the following amounts— (i) where the total of the authority error overpayments and administrative delay overpayments is less than or equal to 0.48% of the total specified subsidy, 100% of the total of those overpayments; (ii) where the total of the authority error overpayments and administrative delay overpayments is greater than 0.48% but less than or equal to 0.54% of the total specified subsidy, 40% of the total of those overpayments; and (iii) where the total of the authority error overpayments and administrative delay overpayments is greater than 0.54% of the total specified subsidy, nil.

• (4) In paragraph (2) after sub-paragraph (c) add—

or (d) an administrative delay overpayment.

• (5) For paragraph (5) substitute—

(5) In paragraphs (1)(c) and (4A), and in article 19(1)(f), “fraudulent overpayment” means an overpayment in respect of a period falling wholly or partly after 31st March 1993 where the claimant has in respect of the overpayment— (a) been found guilty of an offence whether under a statute or otherwise; (b) made an admission after caution of deception or fraud for the purpose of obtaining relevant benefit; or (c) agreed to pay a penalty under section 115A of the Act (penalty as an alternative to prosecution) and has not withdrawn that agreement. (5A) In paragraph (5)(b) “admission after caution” means— (a) in England and Wales, an admission after a caution has been administered in accordance with a Code issued under the Police and Criminal Evidence Act 1984[^f00007]; (b) in Scotland, an admission after a caution has been administered, such admission being duly witnessed by two persons.

• (6) After paragraph (6) insert—

(6ZA) In paragraphs (1)(e) and (2)(d), “administrative delay overpayment” means an overpayment arising where— (a) an authority is notified of a change of circumstances and has sufficient information and evidence to make a revision or supersession decision on an award; (b) the authority does not make the decision before the next day on which the claimant’s benefit is paid or, in the case of council tax benefit, is allowed; and (c) the delay was not— (i) caused by a mistake, whether in the form of an act or omission, by an authority; or (ii) caused or materially contributed to by the claimant, a person acting on the claimant’s behalf, or any other person to whom payment is made.

• (7) In paragraph (12) after “(6)” insert “, (6ZA)”.

Substitution of Schedule 1 to the 1998 Order taking effect from 1st April 2009

4

For Schedule 1[^f00008] to the 1998 Order substitute the Schedule in Schedule 2 to this Order.

Amendments relating to temporary accommodation taking effect from 1st April 2010

5

• (1) The 1998 Order is amended as follows.

• (2) In article 13(1)(a)[^f00009] (relevant benefit) for “and 17” substitute “, 17 and 17A”.

• (3) In articles —

• (a) 15(7) (disproportionate rent increase); and

• (b) 15A(7)[^f00010] (disproportionate rent increase – Wales),

for “(subsidy in respect of homeless and short lease rebate cases)” substitute “(subsidy in respect of temporary accommodation – non self-contained licensed accommodation and board and lodging accommodation) or article 17A (subsidy in respect of temporary accommodation – self-contained licensed accommodation and short lease accommodation)”.

• (4) In article 17[^f00011] (subsidy in respect of temporary accommodation – non self-contained licensed accommodation and board and lodging accommodation) and article 17A (subsidy in respect of temporary accommodation – self-contained licensed accommodation and short lease accommodation)—

• (a) in paragraph (2)—

• (i) for “the lower” substitute “the lowest”; and

• (ii) after sub-paragraph (b) add—

or (c) subject to paragraph (3A), £500 where the dwelling is located in a broad rental market area listed in Schedule 8 (broad rental market areas in London) or £375 where the dwelling is located in any other broad rental market area.

; and

• (b) after paragraph (3) insert—

(3A) The Secretary of State may determine in any particular case that paragraph (2)(c)— (a) does not apply; or (b) applies as if for the figure of £500 or £375 there were substituted a higher figure.

• (5) After Schedule 7 (authorities in London) add the Schedule in Schedule 3 to this Order.

Amendment of Schedule 4A to the 1998 Order taking effect from 1st April 2010

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• (1) Schedule 4A[^f00012] (rent rebate limitation deductions (Housing Revenue Account dwellings)) is amended as follows.

• (2) In paragraph 2 (liability to deduction), for sub-paragraphs (6) and (7) substitute—

(6) The RPI figure referred to in Step 3 is 1.2551. (7) The annual factor for 2010-11 is 0.1.

• (3) In paragraph 3 (amount of deduction), for sub-paragraph (3) substitute—

(3) The rebate proportion for each year commencing with 2010-11 is 0.761.

• (4) For Part 3 (weekly rent limits for purposes of Part 2: Authorities in England) substitute Part 3 as set out in Schedule 4 to this Order.

• (5) For Part 5 (amounts for purposes of Part 4, paragraph 4: Authorities in Wales) substitute Part 5 as set out in Schedule 5 to this Order.

SCHEDULE 1 — Amendment of Schedule 1 to the 1998 Order

SCHEDULE 2 — Schedule to be substituted for Schedule 1 to the 1998 Order

SCHEDULE 3 — Schedule to be added after Schedule 7 to the 1998 Order

SCHEDULE 4 — Part to be substituted for Part 3 of Schedule 4A to the 1998 Order

SCHEDULE 5 — Part to be substituted for Part 5 of Schedule 4A to the 1998 Order

Signed

Signed by authority of the Secretary of State for Work and Pensions.

Freud — Parliamentary Under-Secretary of State — Department for Work and Pensions — 6th October 2010

We consent

Michael Fabricant — Angela Watkinson — Two of the Lords Commissioners of Her Majesty’s Treasury — 11th October 2010

Explanatory note

(This note is not part of the Order)

EXPLANATORY NOTE

This Order amends the Income-related Benefits (Subsidy to Authorities) Order 1998 (“the 1998 Order”), which provides for the calculation and payment of housing benefit and council tax benefit subsidy to local authorities in England, Wales and Scotland which administer those benefits. Sections 140C(4) and 140F(2) of the Social Security Administration Act 1992 authorise the making or varying of an Order before, during or after the year to which it relates.

Article 2 , which takes effect from 1st April 2008, corrects some of the figures in the table in Schedule 1 to the 1998 Order.

Article 3 , which takes effect from 1st April 2009, amends article 18 of the 1998 Order. It amends the definition of “fraudulent overpayment” in paragraph (5) to align it with provisions in the Housing Benefit Regulations 2006. It also inserts a new paragraph (6ZA) to introduce and define a new category of administrative delay overpayments. Article 3 makes other amendments to article 18 which are consequential on the insertion of this new category of overpayment.

Article 4 , which also takes effect from 1st April 2009, substitutes a new table in Schedule 1 to the 1998 Order. This substitutes new figures to be used in the calculation of subsidy for the financial year beginning on 1st April 2009.

Article 5 , which takes effect from 1st April 2010, makes amendments relating to the subsidy in respect of temporary accommodation provided by local authorities. Paragraphs (2) and (3) amend articles 13, 15 and 15A to refer to article 17A, which was inserted by the Income-Related Benefits (Subsidy to Authorities) (Temporary Accommodation) Order 2009. Paragraph (4) amends articles 17 and 17A. These amendments limit the amount of rent rebate subsidy payable for temporary accommodation to £500 for dwellings located in London broad rental market areas and £375 for dwellings located elsewhere, unless the Secretary of State determines that a higher amount of subsidy is to be paid. Paragraph (5) inserts a new Schedule 8 to the 1998 Order which lists London broad rental market areas.

Article 6 , which also takes effect from 1st April 2010, amends Schedule 4A to the 1998 Order. With respect to authorities in England, paragraphs (2), (3) and (4) of Article 6 and Schedule 4 amend Schedule 4A to the 1998 Order to substitute the RPI figure, the annual factor, the rebate proportion and the weekly rent limit for the purposes of determining whether or not an authority is liable to a deduction from subsidy payable for 2010-11. With respect to authorities in Wales, paragraph (5) amends Schedule 4A to substitute the specified amount “O” and the guideline rent increase for the purposes of determining whether or not an authority is liable to a deduction from subsidy payable for 2010-11.

A full impact assessment has not been produced for this instrument as it has no impact on the private or voluntary sectors.

Footnotes

[^f00001]: 1992 c.5. Sections 140B, 140C and 140F were inserted by the Housing Act 1996 (c.52), Schedule 12, paragraph 4. Section 140B was amended by the Social Security Administration (Fraud) Act 1997 (c.47), section 10 and Schedule 1, paragraph 7, the Local Government Act 2003 (c.26), Schedule 7, paragraph 36 and the Welfare Reform Act 2007 (c.5), Schedule 5, paragraph 9. Section 189(1) and (4) were amended by the Social Security Act 1998 (c.14), Schedule 7, paragraph 109. Section 189(1) was amended by the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c.2), Schedule 3, paragraph 57(2) and the Tax Credits Act 2002 (c.21), Schedule 6. Section 189(7) was amended by the Local Government Finance Act 1992 (c.14), Schedule 9, paragraph 24 and the Social Security Administration (Fraud) Act 1997, Schedule 1, paragraph 10.

[^f00002]: Section 189(8) was amended by the Housing Act 1996, Schedule 13, paragraph 3(5), the Pensions Act 2007 (c.22), Schedule 1, paragraph 29, the Social Security Contributions (Transfer of Functions, etc.) Act 1999, Schedule 3, paragraph 57(1) and (3) and the Tax Credits Act 2002, Schedule 4, paragraph 3.

[^f00003]: Section 176(1) was amended by the Local Government Finance Act 1992, Schedule 9, paragraph 23, the Child Support, Pensions and Social Security Act 2000 (c.19), section 69(6) and the Housing Act 1996, Schedule 13, paragraph 3(4).

[^f00004]: S.I. 1998/562.

[^f00005]: Schedule 1 was substituted by S.I. 1999/550, 2000/1091, 2001/2350, 2002/1859, 2003/3179, 2005/369, 2006/54, 2007/26, 2008/196, 2008/1649 and 2009/30.

[^f00006]: Relevant amending instruments are S.I. 2000/2340, 2002/3116, 2003/3179, 2005/369, 2006/54, 2006/217, 2007/26 and 2008/196.

[^f00007]: 1984 c.60.

[^f00008]: Schedule 1 was substituted by S.I. 1999/550, 2000/1091, 2001/2350, 2002/1859, 2003/3179, 2005/369, 2006/54, 2007/26, 2008/196, 2008/1649 and 2009/30.

[^f00009]: Article 13(1) was substituted by S.I. 2000/1091 and amended by S.I. 2003/3179, 2005/369, 2006/54 and 2008/196.

[^f00010]: Article 15A was inserted by S.I. 2005/369.

[^f00011]: Article 17 was substituted, and article 17A inserted, by S.I. 2009/2580.

[^f00012]: Schedule 4A was inserted by S.I. 2004/646. Relevant amending instruments are S.I. 2005/535, 2006/559, 2007/26, 2007/731, 2008/695 and 2009/2564.