The Income-related Benefits (Subsidy to Authorities) Amendment Order 2022

Made: at 12.00 p.m. on 23rd September 2022

Laid before Parliament: at 2.00 p.m. on 23rd September 2022

Coming into force: 31st October 2022

In accordance with section 176(1)(b) 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, extent and interpretation

1

• (1) This Order may be cited as the Income-related Benefits (Subsidy to Authorities) Amendment Order 2022 and comes into force on 31st October 2022.

• (2) Any amendment made by this Order has the same extent as the provision amended.

Amendment of the 1998 Order and effect of amendments

2

• (1) The Income-related Benefits (Subsidy to Authorities) Order 1998[^f00004] is amended in accordance with articles 3 to 7.

• (2) Articles 3, 4 and 6 and Schedules 1 and 3 have effect for the purpose of determining subsidy payable for the relevant year[^f00005] beginning with 1st April 2021.

• (3) Articles 5 and 7 and Schedules 2 and 4 have effect for the purpose of determining subsidy payable for the relevant year beginning with 1st April 2022.

• (4) In paragraphs (2) and (3), “relevant year” means the year in respect of which a claim for subsidy is made.

Housing Benefit Assurance Process

3

In article 2 (interpretation of Parts 2 and 4), in the definition of “HBAP”, for “30th March 2020”, substitute “31st March 2022”.

The amount of an authority’s subsidy

4

For Schedule 1 (sums to be used in the calculation of subsidy) substitute the Schedule 1 set out in Schedule 1 to this Order.

Additional amount of subsidy: Verify Earnings and Pension Alerts Service

5

For Schedule 1ZB (additional amount of subsidy: Verify Earnings and Pension Alerts Service), substitute the Schedule 1ZB set out in Schedule 2 to this Order.

Housing Benefit Award Accuracy Initiative

6

For Schedule 1ZC (additional amount of subsidy: housing benefit award accuracy initiative), substitute the Schedule 1ZC set out in Schedule 3 to this Order.

Rent rebate deductions from the subsidy of an authority in Wales

7

For Schedule 4A (rent rebate limitation deductions (housing revenue account dwellings): authorities in Wales), substitute the Schedule 4A set out in Schedule 4 to this Order.

SCHEDULE 1 — Substitution of Schedule 1 to the 1998 Order

SCHEDULE 2 — Substitution of Schedule 1ZB to the 1998 Order

SCHEDULE 3 — Substitution of Schedule 1ZC to the 1998 Order

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

Signed

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

Victoria Prentis — Minister of State — Department for Work and Pensions — At 12.00 p.m. on 23rd September 2022

We consent.

Craig Whittaker — Gareth Johnson — Two of the Lords Commissioners of His Majesty’s Treasury — 22nd September 2022

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) (“the Act”) authorises the making, revocation or varying of an Order before, during or after the year to which it relates.

Article 3 updates the definition of “HBAP” in article 2 of the 1998 Order to refer to the appropriate version of the Housing Benefit Assurance Process, published on 31st March 2022.

Article 4 and Schedule 1 substitute Schedule 1 to the 1998 Order which prescribes the sums to be used in the calculation of subsidy for the year beginning with 1st April 2021.

Article 5 and Schedule 2 substitute Schedule 1ZB to the 1998 Order, which prescribes a system for the making of additional payments of subsidy to authorities administering alerts relating to the earnings and pension entitlement of claimants for housing benefit. Substituted paragraph 2 of that Schedule has effect for the purposes of determining additional amounts of subsidy payable for the year beginning with 1st April 2022. The amounts were notified by the Secretary of State to local authorities on 17th June 2022.

Article 6 and Schedule 3 substitute Schedule 1ZC to the 1998 Order. This updates the definition of “HBAAI” in paragraph 1 of Schedule 1ZC to the 1998 Order to refer to the most recent version of the Housing Benefit Award Accuracy Initiative, published on 14th May 2021. Substituted paragraph 2 of that Schedule prescribes a system for the making of additional payments of subsidy to authorities verifying the accuracy of information held in respect of the household, income and capital, and general financial circumstances of claimants for housing benefit. It has effect for the purposes of determining additional amounts of subsidy payable for the year beginning with 1st April 2021. The amounts were notified by the Secretary of State to local authorities on 22nd October 2021.

Article 7 and Schedule 4 substitute Schedule 4A to the 1998 Order. This has effect for the purposes of determining subsidy payable for the year beginning with 1st April 2022 for authorities in Wales. The substituted Schedule updates the rebate proportion figure for 2022/2023 to 0.528 and sets out revised specified amounts “O” and guideline rent increases “P” used when calculating deductions from subsidy under paragraph 2 of substituted Schedule.

Hard copies of the circulars referenced in this Order are available by writing to the Department for Work and Pensions, Local Authority Partnership, Engagement and Delivery Division, Room B120D, Warbreck House, Warbreck Hill, Blackpool, FY2 0YE or by emailing lawelfare.lafunding@dwp.gov.uk.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.

Footnotes

[^f00001]: 1992 c. 5 (“the Administration Act”). Sections 140B, 140C and 140F were inserted by paragraph 4 of Schedule 12 to the Housing Act 1996 (c. 52). Section 140B(1) was amended by paragraph 7 of Schedule 1 and Schedule 2 to the Social Security Administration (Fraud) Act 1997 (c. 47) (“the Fraud Act”). Section 140B(4) was substituted and section 140(4A) was inserted by section 10 of the Fraud Act. There are amendments to sections 140C and 189(1), (4) and (6) which are not relevant to this Order. Section 189(7) was amended by paragraph 24 of Schedule 9 to the Local Government Finance Act 1992 (c. 14) and by paragraph 10 of Schedule 1 to the Fraud Act.

[^f00002]: Relevant amendments are made by paragraph 3(5) of Schedule 13 to the Housing Act 1996 and paragraph 3 of Schedule 4 to the Tax Credits Act 2002 (c.21).

[^f00003]: Section 176(1)(b) is amended by paragraph 3(4) of Schedule 13 to the Housing Act 1996.

[^f00004]: S.I. 1998/562; relevant amending instruments are S.I. 2004/646, 2008/695, 2018/985, 2020/976 and 2021/1031.

[^f00005]: See section 140G of the Administration Act for the definition of “year”.

[^f00006]: https://www.gov.uk/government/publications/housing-benefit-subsidy-circulars-2022/s82022-payment-for-the-verify-earnings-and-pension-service-for-the-financial-year-ending-march-2023. The first publication date of Housing Benefit Circulars published in 2022 can be found at https://www.gov.uk/government/publications/housing-benefit-adjudication-circulars-2022#full-publication-update-history and clicking on the “+ show all updates” link to show the update history.

[^f00007]: https://www.gov.uk/government/publications/housing-benefit-adjudication-circulars-2021/a62021-housing-benefit-award-accuracy-initiative-for-the-financial-year-ending-march-2022. The first publication date of Housing Benefit Circulars published in 2021 can be found at https://www.gov.uk/government/publications/housing-benefit-adjudication-circulars-2021#full-publication-update-history and clicking on the “+ show all updates” link to show the update history.