The Income-related Benefits (Subsidy to Authorities) Amendment Order 2026

Made: at 9.30 a.m. on 13th October 2026

Laid before Parliament: at 4.30 p.m. on 13th October 2026

Coming into force: 5th November 2026

The Secretary of State makes this Order in exercise of the powers conferred by sections 140B (1), (3), (4) and (4A), 140C (1), (1A), (2) and (4), 140F (2) and 189 (1), (4), (6) and (7) of the Social Security Administration Act 1992[^f00001].

In accordance with section 189 (8) of that Act[^f00002], the Secretary of State has obtained the consent of the Treasury.

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 and extent

1

• (1) This Order may be cited as the Income-related Benefits (Subsidy to Authorities) Amendment Order 2026 and comes into force on 5th November 2026.

• (2) This Order extends to England and Wales and Scotland.

Amendment of the Income-related Benefits (Subsidy to Authorities) Order 1998 and application 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, 5 and 6 and the Schedule apply for the purpose of determining subsidy payable for the relevant year[^f00005] beginning on 1st April 2025.

• (3) Article 4 applies for the purpose of determining subsidy payable for any relevant year beginning on or after 1st April 2025.

• (4) Article 7 applies for the purpose of determining subsidy payable for the relevant year beginning on 1st April 2026.

Housing Benefit Assurance Process

3

In article 2 (interpretation of Parts 2 and 4), in the definition of “HBAP”, for “28th April 2025” substitute “2nd April 2026”[^f00006].

Additional amount of subsidy: Verify Earnings and Pension Alerts Service

4

• (1) In article 12(1) (amount of subsidy)[^f00007], omit sub-paragraph (bza) and the “and” immediately after it.

• (2) Omit Schedule 1ZB (additional amount of subsidy: Verify Earnings and Pension Alerts Service)[^f00008].

The amount of an authority’s subsidy

5

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

Additional amount of subsidy: Housing Benefit Award Accuracy Initiative

6

In Schedule 1ZC (additional amount of subsidy: Housing Benefit Award Accuracy Initiative)—

• (a) in paragraph 1 (interpretation), in the definition of “HBAAI”, for “Housing Benefit Circular HB A5/2024” to the end of that definition substitute “Housing Benefit Circular HB A7/2025 first published by the Department for Work and Pensions on 24th April 2025”[^f00009];

• (b) in paragraph 2 (additional amount: relevant year beginning with 1st April 2024)—

• (i) in the heading, for “1st April 2024”, substitute “1st April 2025”;

• (ii) for “1st April 2024”, substitute “1st April 2025”;

• (iii) for “Housing Benefit Circular” to the end substitute “Housing Benefit Circular HB S4/2025 first published by the Department for Work and Pensions on 24th April 2025”[^f00010].

Rent rebate deductions from the subsidy of an authority in Wales

7

In Schedule 4A (rent rebate limitation deductions (Housing Revenue Account dwellings): authorities in Wales)—

• (a) in paragraph 3(2), for “1st April 2025 is 0.369” substitute “1st April 2026 is 0.332”;

• (b) for paragraph 4, but not including the heading, substitute—

(4) The amounts for the relevant year beginning on 1st April 2026 for the purposes of paragraph 2 are as follows—

Schedule — Substitution of Schedule 1 to the Income-related Benefits (Subsidy to Authorities) Order 1998

Schedule 1

Signed

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

Stephen Timms — Minister of State — Department for Work and Pensions — at 9.30 a.m. on 13th October 2026

We consent

Claire Hughes — Christian Wakeford — Two of the Lords Commissioners of His Majesty’s Treasury — 12th October 2026

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. Sections 140C(4) and 140F(2) of the Social Security Administration Act 1992 (c. 5) authorise 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 2nd April 2026.

Article 4 omits article 12(1)(bza) and Schedule 1ZB from the 1998 Order which provide for the making of additional payments of subsidy to authorities administering alerts relating to the earnings and pension entitlement of claimants for housing benefit (the Verify Earnings and Pension Alerts service (VEP)). Schedule 1ZB specifies the additional amounts to be paid to local authorities to support the administration of VEP. Article 12(1)(bza) requires these additional amounts to be taken into account when calculating subsidy. VEP funding became part of the housing benefit administration funding from 1st April 2025 and these provisions are no longer required to determine additional amounts of subsidy payable in respect of VEP administration.

Article 5 and the Schedule substitute Schedule 1 to the 1998 Order, which prescribes the sums used in the calculation of subsidy for the year beginning 1st April 2025.

Article 6 amends Schedule 1ZC to the 1998 Order which 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. The amendment to paragraph 1 of that Schedule updates the definition of “HBAAI” to refer to the most recent version of the Housing Benefit Award Accuracy Initiative, published on 24th April 2025. The amendments to paragraph 2 of that Schedule update the Schedule to refer to the additional amounts of subsidy payable for the year beginning on 1st April 2025. The amounts were notified by the Secretary of State to local authorities on 24th April 2025.

Article 7 amends Schedule 4A to the 1998 Order, both to update the rebate proportion figure for 2026/2027 to 0.332 and to set out revised specified amounts “O” and guideline rent increases “P” used when calculating deductions from subsidy under paragraph 2 of Schedule 4A. The amendments to Schedule 4A have effect for the purposes of determining subsidy payable for the year beginning on 1st April 2026 for authorities in Wales.

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, Peel Park Phase 2, First Floor Blue Zone, Brunel Way, Blackpool, Lancashire FY4 5ES 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. 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 to the Social Security Administration (Fraud) Act 1997 (c. 47) (“the Fraud Act”). Section 140B(4) was substituted and section 140B(4A) was inserted by section 10 of the Fraud Act. Section 140C(1A) was inserted by paragraph 37 of Schedule 7 to the Local Government Act 2003 (c. 26). Sections 140B, 140C and 140F were repealed by Part 1 of Schedule 14 to the Welfare Reform Act 2012 (c. 5) so far as they relate to the abolition of council tax benefit. There are amendments to section 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 were 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) was 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, 2015/1784, 2018/985, 2021/1031, 2023/1040, 2024/1092 and 2025/1077.

[^f00005]: See article 1(2) of S.I. 1998/562 for the meaning of “relevant year”. See section 140G of the Social Security Administration Act 1992 for the definition of “year”.

[^f00006]: See, in relation to the financial year ending March 2026, https://www.gov.uk/government/publications/housing-benefit-assurance-process-hbap. The relevant HBAP publication is contained in HBAP Module 1 and Module 6.

[^f00007]: Article 12(1) was substituted by S.I. 2015/1784 and sub-paragraph (bza) was inserted by S.I. 2018/985.

[^f00008]: Schedule 1ZB was inserted by S.I. 2018/985 and substituted by S.I. 2023/1040.

[^f00009]: See https://www.gov.uk/government/publications/housing-benefit-adjudication-circulars-2025/a72025-housing-benefit-award-accuracy-initiative-for-the-financial-year-ending-march-2026.

[^f00010]: See https://www.gov.uk/government/publications/housing-benefit-subsidy-circulars-2025/s42025-housing-benefit-award-accuracy-initiative-funding-for-the-financial-year-ending-march-2026-for-local-authorities-participating-from-1-april-2.