The Income-related Benefits (Subsidy to Authorities) Amendment (No. 2) Order 2013

Made: 26th November 2013

Laid before Parliament: 2nd December 2013

Coming into force: 28th January 2014

In accordance with 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 (No. 2) Order 2013 and comes into force on 28th January 2014.

• (2) Article 2 and Schedule 1 have effect from 1st April 2012.

• (3) Article 3, Schedule 2 and Schedule 3 have effect from 1st April 2013.

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

Amendments to the 1998 Order having effect from 1st April 2012

2

• (1) Article 18 (additions to subsidy) of the 1998 Order is amended as follows—

• (a) in paragraph (4) after “(4ZA)”[^f00005] insert “or (4ZB)”;

• (b) after paragraph (4ZA) insert—

(4ZB) This paragraph applies to an overpayment where— (a) during the period beginning on 9th April 2012 and ending on 19th April 2012 (the “specified period”) an authority received a notification through the Automated Transfers to Local Authority System used by the Department for Work and Pensions to provide award data to relevant authorities in respect of a claimant (“the notification”); (b) the notification received during the specified period was sufficient to require an authority to make a revision or supersession decision on a claimant’s award; (c) the authority failed to make a revision or supersession decision on the basis of the notification received during the specified period before the next day on which the claimant’s benefit was paid; (d) the authority’s failure to make a revision or supersession decision before the next day on which the claimant’s benefit was paid resulted in the overpayment; and (e) the authority made a revision or supersession decision on the claimant’s award, based on the notification received during the specified period, on or before 10th July 2012.

• (c) in paragraph (6ZA)[^f00006]—

• (i) omit “and” at the end of sub-paragraph (b);

• (ii) at the end of sub-paragraph (c)(ii) insert “; and”; and

• (iii) after sub-paragraph (c) insert—

(d) paragraph (4ZB) is not applicable.

• (d) in paragraph (12)[^f00007] after “(4ZA)” insert “, (4ZB)”.

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

Amendments to the 1998 Order having effect from 1st April 2013

3

• (1) Article 14 (backdated benefit)[^f00009] of the 1998 Order is amended as follows—

• (a) in paragraph (1) for “paragraph (2)” substitute “paragraphs (2) and (3)”;

• (b) after paragraph (2) insert—

(3) This article shall not apply in relation to expenditure in respect of council tax benefit on or after 1st April 2013, even if that expenditure is attributable to a period before that date.

• (2) For Part 3 of Schedule 4A (Weekly rent limits for purposes of Part 2: Authorities in England)[^f00010] to the 1998 Order substitute Part 3 as set out in Schedule 2 to this Order.

• (3) For Part 5 of Schedule 4A (Amounts for purposes of Part 4, paragraph 4: Authorities in Wales)[^f00011] to the 1998 Order 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 — 21st November 2013

We consent

Mark Lancaster — Karen Bradley — Two of the Lords Commissioners of Her Majesty’s Treasury — 26th November 2013

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”) (S.I. 1998/562), 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. Section 140F(2) of the Social Security Administration Act 1992 (c.5) authorises the making or varying of an Order before, during or after the year to which it relates.

Article 2 amends the 1998 Order with effect from 1st April 2012. It inserts a new paragraph (4ZB) into article 18 of the 1998 Order, which provides that certain overpayments that were made between 9th April 2012 and 19th April 2012 can be treated as departmental error overpayments rather than administrative delay overpayments. Local authorities are paid a full subsidy in respect of departmental error overpayments but the subsidy can potentially be reduced to nil in respect of administrative delay overpayments. It also makes consequential amendments to paragraphs (4), (6ZA) and (12) of article 18.

Article 2 (2) and Schedule 1 to this Order substitute Schedule 1 to the 1998 Order. It sets out new figures to be used in the calculation of subsidy for the year beginning on 1st April 2012.

Article 3 amends the 1998 Order with effect from 1st April 2013. Paragraph 3(1) amends article 14 of the 1998 Order to provide that the subsidy in respect of council tax benefit will be nil on and after 1st April 2013 even if the claim relates to a period before that date. Paragraph 3(2) substitutes Part 3 of Schedule 4A to the 1998 Order. With respect to authorities in Wales, paragraph 3(3) substitutes Part 5 of Schedule 4A to the 1998 Order 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 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 and the Local Government Act 2003 (c.26), Schedule 8, paragraph 1. Sections 140B and 140F were repealed by the Welfare Reform Act 2012 (c.5), Schedule 14, paragraph 1 to the extent they related to council tax benefit with effect from 1st April 2013 and subject to savings and transitional provisions in articles 9 and 10 of S.I. 2013/358. Section 189(1) and (4) was 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, paragraph 1. Section 189(4) was amended by S.I. 2013/252. 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. Section 189 was repealed, to the extent it related to council tax benefit, by the Welfare Reform Act 2012, Schedule 14, paragraph 1 with effect from 1st April 2013 and subject to savings and transitional provisions in articles 9 and 10 of S.I. 2013/358.

[^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), the Social Security (Recovery of Benefits) Act 1997 (c.27), Schedule 3, paragraph 10, the Tax Credits Act 2002, Schedule 4, paragraph 3 and the Welfare Reform Act 2012, Schedule 14, paragraph 1 with effect from 1st April 2013.

[^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). Section 176 was repealed, to the extent it related to council tax benefit, by the Welfare Reform Act 2012, schedule 14, paragraph 1 with effect from 1st April 2013 and subject to savings and transitional provisions in articles 9 and 10 of S.I. 2013/358.

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

[^f00005]: Paragraph (4) of article 18 was amended by S.I. 2000/2340, S.I. 2002/1397, S.I. 2003/3179 and S.I. 2005/369. Paragraph (4ZA) was inserted by S.I. 2005/369.

[^f00006]: Paragraph (6ZA) of article 18 was inserted by S.I. 2010/2481.

[^f00007]: Paragraph (12) was amended by S.I. 2010/2481.

[^f00008]: Schedule 1 was substituted by S.I. 2013/266.

[^f00009]: Article 14 was amended by S.I. 2000/1091, S.I. 2000/2340, S.I. 2001/2350, S.I. 2005/369, S.I. 2006/54, S.I. 2006/217, S.I. 2009/2580 and S.I. 2010/2509.

[^f00010]: Part 3 of Schedule 4A was substituted by S.I. 2013/266.

[^f00011]: Part 5 of Schedule 4A was substituted by S.I. 2013/266.