The Income-related Benefits (Subsidy to Authorities) Amendment Order 2011

Made: 8th December 2011

Laid before Parliament: 13th December 2011

Coming into force: 1st February 2012

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 2011 and comes into force on 1st February 2012.

• (2) Articles 2 and 3 have effect from 1st April 2010.

• (3) Articles 4 to 6 have effect from 1st April 2011.

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

Amendment of Parts 2 and 4 of the 1998 Order having effect from 1st April 2010

2

• (1) In Part 2 (claims for and payment of subsidy) of the 1998 Order—

• (a) in article 4[^f00005] (requirement of claim) omit paragraphs (4) and (4ZA);

• (b) in article 9(2)[^f00006] (payment of subsidy for the relevant year)—

• (i) at the end of sub-paragraph (a) insert “and”; and

• (ii) omit sub-paragraphs (c) and (d).

• (c) omit article 9A[^f00007] (transitional protection adjustments).

• (2) In Part 4 (transitional and savings) of the 1998 Order omit article 22 (provisions for claims for 1997/98).

Substitution of Schedule 1 to the 1998 Order having effect from 1st April 2010

3

For Schedule 1[^f00008] (sums to be used in the calculation of subsidy) to the 1998 Order substitute the Schedule in Schedule 1 to this Order.

Amendment of Part 3 of the 1998 Order having effect from 1st April 2011

4

• (1) Part 3 (calculation of subsidy) of the 1998 Order is amended as follows.

• (2) In article 11(1) (interpretation of Part 3) after the definition of “the Community Charge Benefits Regulations” insert—

• “the Consequential Provisions Regulations” means the Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006[^f00009];

• (3) In article 16[^f00010] (treatment of high rents in rent allowance cases) omit paragraph (4)(b).

• (4) In article 17A[^f00011] (subsidy in respect of self-contained licensed accommodation, and leased accommodation, provided by an authority as temporary or short term accommodation), in paragraph (3)(a) after “Order” insert “(as in force on 1st January 2011)”.

• (5) In article 17B[^f00012] (subsidy in respect of non self-contained licensed accommodation, and board and lodging accommodation, made available by a registered housing association as temporary or short term accommodation) at the end of paragraph (1) add—

• and (d) the accommodation is not exempt accommodation within the meaning given by paragraph 4(10) of Schedule 3 (transitional and savings provisions) to the Consequential Provisions Regulations.

• (6) In article 17C (subsidy in respect of self-contained accommodation, or owned or leased accommodation, made available by a registered housing association as temporary or short term accommodation)—

• (a) at the end of paragraph (1) add—

• and (d) the accommodation is not exempt accommodation within the meaning given by paragraph 4(10) of Schedule 3 (transitional and savings provisions) to the Consequential Provisions Regulations.

; and

• (b) in paragraph (3)(a) after “Order” insert “(as in force on 1st January 2011)”.

• (7) In article 18[^f00013] (additions to subsidy)—

• (a) at the end of paragraph (1) add—

(f) where, during the relevant year, it is discovered that an overpayment in respect of which a deduction was made under article 19 (deductions made in calculating subsidy) was a payment on account overpayment, 100 per cent. of so much of the overpayment as has not been recovered by the authority.

• (b) in paragraph (2)—

• (i) omit sub-paragraph (c); and

• (ii) after sub-paragraph (d) add—

• or (e) a payment on account overpayment.

• (c) for paragraph (7) substitute—

(7) Subject to paragraph (7A), in paragraph (2)(b) “technical overpayment” means an overpayment which occurs as a result of— (a) a rebate or council tax benefit being awarded and entitlement to that rebate or benefit being reduced or eliminated because, subsequent to that award, the liability in respect of which the rebate or benefit was awarded was reduced or eliminated; or (b) council tax benefit being awarded and entitlement to that benefit being reduced or eliminated because, subsequent to that award, there was a change of circumstances that does not fall within paragraph (a). (7A) A technical overpayment does not include any part of the overpayment occurring— (a) in a case to which paragraph (7)(a) applies, before the day on which the liability was reduced or eliminated; or (b) in a case to which paragraph (7)(b) applies, before the day on which the authority suspended, revised or superseded the award, whichever is earliest. (7B) In paragraphs (1)(f) and (2)(e), “payment on account overpayment” means an amount paid on account under regulation 93 of the Housing Benefit Regulations or regulation 74 of the Housing Benefit (State Pension Credit) Regulations (payment on account of a rent allowance) which is in excess of the entitlement to housing benefit as subsequently decided.

Amendment of Schedule 4 to the 1998 Order having effect from 1st April 2011

5

• (1) Part 2 of Schedule 4[^f00014] (high rents and rent allowance) to the 1998 Order is amended as follows.

• (2) In paragraph 2 for “paragraph 6, 7, 8, 9 or 11” substitute “paragraph 6, 7, 8 or 9”.

• (3) Omit paragraph 11.

Amendment of Schedule 4A to the 1998 Order having effect from 1st April 2011

6

• (1) Schedule 4A[^f00015] (rent rebate limitation deductions (Housing Revenue Account dwellings)) to the 1998 Order is amended as follows.

• (2) In Part 1 (interpretation) in paragraph 1 omit the definitions of “RPI figure” and “service charge”.

• (3) In Part 2 (England) in paragraph 2 (liability to deduction)—

• (a) for sub-paragraph (2) substitute—

(2) The subsidy limitation rent for an authority is equal to the average weekly rent for a dwelling for the authority for the relevant year, calculated in accordance with sub-paragraph (3).

• (b) omit sub-paragraph (4);

• (c) in sub-paragraphs (5) and (8) for “sub-paragraphs (3) and (4)” substitute “sub-paragraph (3)”;

• (d) omit sub-paragraphs (6) and (7).

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

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

SCHEDULE 2 — Part to be substituted for Part 3 of Schedule 4A to the 1998 Order

SCHEDULE 3 — 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 — 8th December 2011

We consent

Angela Watkinson — Jeremy Wright — Two of the Lords Commissioners of Her Majesty’s Treasury — 7th December 2011

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 has effect from 1st April 2010, revokes article 4(4) and (4A) of the 1998 Order. These required returns in respect of arrangements relating to fraud and error which have been revoked. Article 2 also revokes articles 9A and 22 of the 1998 Order which are transitional provisions that are no longer needed. It amend article 9(2) to remove references to article 9A.

Article 3 , which also has effect from 1st April 2010, 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 year beginning on 1st April 2010.

Article 4 , which has effect from 1st April 2011, amends Part 3 of the 1998 Order. It amends articles 17A and 17C, which make provision for the calculation of subsidy for certain kinds of temporary accommodation, to clarify which local housing allowance rate is to be used in the calculation for accommodation with five bedrooms. It also amends articles 17B and 17C so that arrangements for calculating subsidy in relation to temporary accommodation do not cover exempt accommodation, where a non-profit landlord, or someone acting on its behalf, provides care, support or supervision to the tenant. Article 4 also inserts in article 11 (interpretation of Part 3) a new definition which is needed for these amendments.

Article 4 also amends article 18, which provides for additions to subsidy in respect of certain overpayments. It substitutes a simpler definition of “technical overpayment” which applies to overpayments of rent rebate and council tax benefit where the rebate or benefit is reduced or eliminated as a result of a reduction or elimination of a liability to pay rent or council tax, or where entitlement to council tax benefit is reduced or eliminated because of some other change of circumstances. It does not apply to any overpayment occurring before the liability was reduced or eliminated, or before the authority suspended, revised or superseded the award of council tax benefit. It also removes the separate provision in article 18(2)(c) relating to overpayments arising as a result of a reduction in the amount of council tax a person is liable to pay, as this is within the new definition of a technical overpayment.

Article 4 also adds a new category of overpayment to cover payments on account paid in excess of final benefit entitlement. Subsidy of 100 per cent. will be payable on any amount that the authority has not recovered. Article 4(3) and Article 5 (which also takes effect from 1st April 2011) revoke existing provisions about subsidy in relation to payments on account, which are superseded by these amendments.

Article 6 , which also has effect from 1st April 2011, amends Schedule 4A to the 1998 Order, which determines whether or not an authority is liable to a deduction from rent rebate subsidy payable for 2011-12. With respect to authorities in England, paragraph (3) simplifies the calculation so that it is based on the average weekly rent for a dwelling in the authority’s Housing Revenue Account, and paragraph (4) substitutes a new table in Part 3 of Schedule 4A (weekly rent limits). With respect to authorities in Wales, paragraph (5) substitutes a new table in Part 5 of Schedule 4A which sets out the specified amount “O” and the guideline rent increase used when calculating deductions from subsidy under paragraph 4 in Part 4 of that Schedule.

A full impact assessment has not been produced for this instrument as it has no impact on the private sector or civil society organisations.

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) (“the Fraud Act”), 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) (“the Transfer of Functions Act”), 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 Fraud Act, 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 Transfer of Functions Act, 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]: Article 4(4) was amended by S.I. 2005/36 and 2007/26. Article 4(4ZA) was inserted by S.I. 2005/36.

[^f00006]: Article 9(2) was substituted by S.I. 2006/54/

[^f00007]: Article 9A was inserted by S.I. 2007/26.

[^f00008]: Schedule 1 was substituted by S.I. 2010/2481.

[^f00009]: S.I. 2006/217.

[^f00010]: Article 16(4) was amended by S.I. 2006/217.

[^f00011]: Article 17A was inserted by S.I. 2009/2580 and amended by S.I. 2010/2481 and 2010/2509.

[^f00012]: Articles 17B and 17C were inserted by S.I. 2010/2509.

[^f00013]: Article 18(1)(e) was substituted and article 18(2)(d) inserted by S.I. 2010/2481. Article 18(1) was also amended by S.I. 2000/1091, 2002/3116, 2003/3179, 2006/54 and 2010/2481.

[^f00014]: Paragraph 11 was amended by S.I. 2006/217.

[^f00015]: 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, 2009/2564 and 2010/2481.