The Income-related Benefits (Subsidy to Authorities) Amendment Order 2017

Made: 6th September 2017

Laid before Parliament: 12th September 2017

Coming into force: 26th October 2017

In accordance with section 176(1) of that Act[^f00003], the Secretary of State has consulted 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 2017 and comes into force on 26th October 2017.

• (2) Article 2(3) and Schedule 1 have effect for the purpose of determining subsidy payable for the relevant year beginning with 1st April 2016.

• (3) Articles 2(2)(a) and (4) and 3 and Schedules 2, 3 and 4 have effect for the purpose of determining subsidy payable for the relevant year beginning with 1st April 2017.

• (4) Articles 2(2)(b) and (5), 4 and 5 have effect from 1st April 2017.

• (5) In this Order—

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

• “relevant year” means the period of a year beginning on 1st April in any calendar year in respect of which a claim for subsidy is made.

The amount of an authority’s subsidy

2

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

• (2) In article 12(1) (amount of subsidy)[^f00005]—

• (a) after sub-paragraph (b), insert—

(ba) for an authority which is a participating authority for the purposes of Schedule 1ZA (additional amount of subsidy: right benefit initiative), the additional amount specified by that Schedule; and

• (b) omit sub-paragraph (c).

• (3) For Schedule 1 (sums to be used in the calculation of subsidy)[^f00006] substitute the Schedule 1 set out in Schedule 1 to this Order.

• (4) After the substituted Schedule 1 insert the Schedule 1ZA set out in Schedule 2 to this Order.

• (5) Omit Schedule 1A (additional amount of subsidy: activities to reduce fraud and error)[^f00007].

Rent rebate deductions from an authority’s subsidy

3

• (1) Schedule 4A to the 1998 Order (rent rebate limitation deductions (Housing Revenue Account Dwellings))[^f00008] is amended as follows.

• (2) In Part 2 (England), in paragraph 3 (amount of deduction), for sub-paragraph (3)[^f00009] substitute—

(3) The rebate proportion for 2017-18 is 0.739.

• (3) For Part 3 (weekly rent limits for purposes of Part 2: authorities in England)[^f00010], substitute the Part 3 set out in Schedule 3 to this Order.

• (4) For Part 5 (amounts for purposes of Part 4, paragraph 4: authorities in Wales)[^f00011], substitute the Part 5 set out in Schedule 4 to this Order.

Amendment relating to requirement of audit

4

In article 6(1) of the 1998 Order (requirement of audit), before sub-paragraph (ia)[^f00012] insert—

(iza) shall, in the case of an authority in England, inform the Secretary of State in writing of the identity of the authority’s auditor by 1st March in the year before the relevant year;

Amendments relating to the removal of the temporary accommodation management fee

5

• (1) In article 17A of the 1998 Order (subsidy in respect of self-contained licensed accommodation, and leased accommodation, provided by an authority as temporary or short term accommodation)[^f00013], for paragraph (3) substitute—

(3) The maximum amount referred to in paragraph (2) is 90% of the local housing allowance for January 2011 for the category specified in paragraphs 1(1)(b) to (f) of Schedule 3B to the Rent Officers Order (as in force on 1st January 2011) which applies to the accommodation and is applicable to the broad rental market area in which the accommodation is situated.

• (2) In article 17C of the 1998 Order (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) [^f00014], for paragraph (3) substitute—

(3) The maximum amount referred to in paragraph (2) is 90% of the local housing allowance for January 2011 for the category specified in paragraphs 1(1)(b) to (f) of Schedule 3B to the Rent Officers Order (as in force on 1st January 2011) which applies to the accommodation and is applicable to the broad rental market area in which the accommodation is situated.

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

SCHEDULE 2 — New Schedule 1ZA to the 1998 Order

SCHEDULE 3 — Substitution of Part 3 of Schedule 4A to the 1998 Order

SCHEDULE 4 — Substitution of Part 5 of Schedule 4A to the 1998 Order

Signed

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

Caroline Dinenage — Minister of State — Department for Work and Pensions — 3.00 p.m. on 6th September 2017

We consent.

Guto Bebb — Heather Wheeler — Two of the Lords Commissioners of Her Majesty’s Treasury — 4.30 p.m. on 6th September 2017

Explanatory note

(This note is not part of the Order)

EXPLANATORY NOTE

This Order amends the Income-related Benefits (Subsidy to Authorities) Order 1998 (S.I. 1998/562) (“the 1998 Order”) which provides for the calculation and payment of housing benefit subsidy to local authorities in England, Wales and Scotland which administer housing benefit. Section 140F(2) of the Social Security Administration Act 1992 (c.5) authorises the making, revocation or varying of an Order before, during or after the year to which it relates.

Article 2 (3) substitutes Schedule 1 to the 1998 Order with a new Schedule 1 prescribing the sums to be used in the calculation of subsidy for the year beginning 1st April 2016.

Article 2 (2)(a) and (4) and Schedule 2 have effect for the purposes of determining additional amounts of subsidy payable for the year beginning with 1st April 2017. In particular, it prescribes a system for the making of additional payments of subsidy to be made to local authorities which participate in the Right Benefit Initiative Scheme (“the RBI Scheme”), as notified by the Secretary of State to local authorities on 30th March 2017.

In the RBI scheme, participating authorities are given funding to carry out activities with a view to reducing fraud and error in relation to the payment of housing benefit based on its use of real time information. Some or all of the funding may be recovered if the Secretary of State is satisfied that the funding is not being used in connection with those activities. The amendments at article 2(2)(b) and (5) revoke provisions relating to the previous incentive scheme.

Hard copies of the circulars referenced in new Schedule 1ZA to the 1998 Order which set out details of the RBI Scheme and the amounts of the payment, are available from the Department for Work and Pensions, Caxton House, Tothill Street, London SW1H 9NA.

Article 3 has effect for the purposes of determining subsidy payable for the year beginning with 1st April 2017. Paragraph (2) amends paragraph 3 of Schedule 4A to provide that the rebate proportion figure for 2017/2018 is 0.739. Paragraph (3) substitutes Part 3 of Schedule 4A to the 1998 Order in respect of weekly rent limits for authorities in England. With respect to authorities in Wales, paragraph (4) substitutes Part 5 of Schedule 4A to the 1998 Order which sets out the specified amount “O” and the guideline rent increase “P” used when calculating deductions from subsidy under paragraph 4 in Part 4 of that Schedule.

The amendment in article 4 requires local authorities in England to inform the Secretary of State of the identity of their auditor before 1st March in the year before the year for which subsidy is payable.

The amendments in article 5 relate to the fact that the Secretary of State no longer subsidises the temporary accommodation management fee through the subsidy.

An 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 paragraph 4 of Schedule 12 to the Housing Act 1996 (c.52). Section 140B was amended by section 10 of, and paragraph 7 of Schedule 1 to, the Social Security Administration (Fraud) Act 1997 (c.47) (“the Fraud Act”). Section 189(1) and (4) was amended by paragraph 109 of Schedule 7 to the Social Security Act 1998 (c.14). Section 189(4) was amended by S.I. 2013/252. Section 189(7) was amended by paragraph 24 of Schedule 9 to the Local Government Finance Act 1992 (c.14) and paragraph 10 of Schedule 1 to the Fraud Act. Sections 140B, 140F and 189 were repealed, to the extent they relate to council tax benefit, by section 147 of, and paragraph 1 of Schedule 14 to, the Welfare Reform Act 2012 (c.5) 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 paragraph 3(5) of Schedule 13 to the Housing Act 1996, paragraph 10 of Schedule 4 to the Social Security (Recovery of Benefits) Act 1997 (c.27), paragraph 3 of Schedule 4 to the Tax Credits Act 2002 (c.21), paragraph 29 of Schedule 1 to the Pensions Act 2007 (c.22) and paragraph 57(3) of Schedule 3 to the Transfer of Functions Act.

[^f00003]: Section 176(1)(b) was amended by paragraph 3(4) of Schedule 13 to the Housing Act 1996 and was repealed, to the extent it relates to council tax benefit, by section 147 of, and paragraph 1 of Schedule 14 to, the Welfare Reform Act 2012 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]: Article 12(1) was substituted by S.I. 2015/1784.

[^f00006]: Schedule 1 was substituted by S.I. 2016/986.

[^f00007]: Schedule 1A was inserted by S.I. 2015/1784 and substituted by S.I. 2016/986.

[^f00008]: Schedule 4A was inserted by S.I. 2004/646.

[^f00009]: In Part 2 of Schedule 4A, paragraph 3(3) was substituted by S.I. 2016/986.

[^f00010]: Part 3 of Schedule 4A was substituted by S.I. 2016/986.

[^f00011]: Part 5 of Schedule 4A was substituted by S.I. 2016/986.

[^f00012]: Article 6(1)(ia) was inserted by S.I. 2004/646.

[^f00013]: Article 17A was inserted by S.I. 2009/2580. Relevant amendments were made by S.I. 2010/2509 and 2011/2957.

[^f00014]: Article 17C was inserted by S.I. 2010/2509. Relevant amendments were made by S.I. 2011/2957.