Statutory Instrument 2006 No. 54
The Income-related Benefits (Subsidy to Authorities) Amendment Order 2006
(The document as of February, 2008. Arhiv.Online Library)
2006 No. 54
The Income-related Benefits (Subsidy to Authorities) Amendment Order 2006
| ||Made||11th January 2006|| |
| ||Laid before Parliament||19th January 2006|| |
| ||Coming into force||9th February 2006|| |
The Secretary of State for Work and Pensions makes the following regulations in exercise of the powers conferred upon him by sections 140B, 140C(1), (3) and (4), 140F(2) and 189(1), (4), (5) and (7) of the Social Security Administration Act 1992.
In accordance with section 189(8) of that Act he has sought the consent of Treasury. In accordance with section 176(1) of that Act he has consulted with organisations appearing to him to be representative of the authorities concerned.Citation, commencement, effect and interpretation 1.
—(1) This Order may be cited as the Income-related Benefits (Subsidy to Authorities) Amendment Order 2006, and shall come into force on 9th February 2006.
(2) This Order shall have effect from 1st April 2004.
(3) In this Order, "the principal Order" means the Income-related Benefits (Subsidy to Authorities) Order 1998.Amendment of Part II of the principal Order 2.
—(1) Part II of the principal Order (claims for and payment of subsidy) shall be amended in accordance with the following paragraphs.
(2) In article 2 (interpretation of Parts II and IV) in the definition of "final subsidy", after "interim subsidy" insert "or an amount paid, withheld or deducted pursuant to article 8A".
(3) In article 4 (requirement of claim), in paragraphs (2)(c) and (3) for "31st July" substitute "30th June"; and
(4) After article 8, insert—
"8APayment of subsidy before audit complete
(1) Where an authority has submitted the final claim by the due date in accordance with article 4(2)(c) but the claim has not yet been audited in accordance with article 6 and—
(a) the Secretary of State estimates that the final subsidy will exceed the amount of interim subsidy that was paid to the authority in the relevant year, taking account of any withholding, reducing or deducting of subsidy by him, following the audit of that authority's final claim, he may pay subsidy in accordance with paragraph (2); or
(b) the Secretary of State estimates that the interim subsidy that was paid to the authority in the relevant year will exceed the amount of final subsidy, taking account of any withholding, reducing or deducting of subsidy by him, following the audit of that authority's final claim, he may withhold or deduct subsidy in accordance with paragraph (2).
(2) The amounts that may be paid to, withheld or deducted from an authority under paragraph (1) shall be equal to the amount which the Secretary of State estimates is likely to be payable by way of final subsidy, taking account of any withholding, reducing or deducting of subsidy by him, following the audit of that authority's final claim.".
(5) In article 9 (payment of subsidy for the relevant year)—
(a) for paragraph (2), substitute—
"(2) Any payment pursuant to paragraph (1) shall only be in respect of the balance of subsidy due after the Secretary of State—
(a) has deducted any interim subsidy paid during or in respect of the relevant year;
(b) has added or deducted, as the case may be, any amount paid, recovered or withheld pursuant to article 8A in respect of the relevant year;
(c) has added any amount pursuant to article 9A(3); and
(d) has deducted any amount pursuant to article 9A(4).".
(b) After paragraph (4), insert—
"(5) In paragraph (1), a reference to paying final subsidy calculated in accordance with Part III may also be a reference to deducting or withholding subsidy, as the case may be.".
(6) After article 9, insert—
"9ATransitional Protection Adjustments
(1) After 1st September in the year after the following year the Secretary of State shall calculate an authority's final subsidy in accordance with Part III.
(2) The Secretary of State shall compare the final subsidy in respect of a relevant year with the nominal subsidy calculated in accordance with paragraph (6).
(3) Where, in accordance with paragraph (2), the final subsidy that an authority would receive is less than the nominal subsidy, the Secretary of State may add such amounts to any payment made pursuant to article 9(1) to ensure that the difference between the final subsidy and the nominal subsidy will be limited to—
(a) 0.5 per cent in the year 2004/05;
(b) 1 per cent in the year 2005/06, but only if sub-paragraph (a) applied to the authority; and
(c) 2 per cent in the year 2006/07, but only if sub-paragraphs (a) and (b) applied to the authority.
(4) Where, in accordance with paragraph (2), the final subsidy is greater than the nominal subsidy then the Secretary of State may deduct such amounts from any payment made pursuant to article 9(1) as he considers appropriate, taking into account—
(a) the circumstances of the case; and
(b) the amount of subsidy other authorities will receive pursuant to this article,
but the amount deducted shall not result in a final subsidy which is less than the nominal subsidy.
(5) If an authority has not complied with any condition specified in this Part by 1st September in the year after the following year the Secretary of State may estimate the amount of any subsidy, including any nominal subsidy and any additions or deductions which may be made as a result of paragraphs (3) and (4), payable to that authority and he may take into account for that purpose such information as he considers relevant.
(6) For the purpose of this article the Secretary of State shall calculate the nominal subsidy by—
(a) calculating the authority's final subsidy as if that authority's final subsidy had been calculated at 31st March 2004; and
(b) adding an amount equivalent to that part of the revenue support grant that would have been paid to the Authority in relation to Housing Benefit and Council Tax Subsidy for the relevant year.
(7) In paragraph (6)(b) above, "revenue support grant" means a grant that was paid under section 78 of the Local Government Finance Act 1988 or, for Scotland, section 191 of the Housing (Scotland) Act 1973.".
Amendment of Part III of the principal Order
3.—(1) Part III of the principal Order (calculation of subsidy) shall be amended in accordance with the following paragraphs.
(2) In article 11 (interpretation of Part III) —
(a) in paragraph (1) omit the definition of "X percent"; and
(b) in paragraph (2) in the definition of "qualifying expenditure", after the words "article 15" insert "or 15A".
(3) In article 12 (amount of subsidy)—
"(4) For the purposes of sub-paragraph (1)(c), the additional amount will be 0.2 per cent of the amount or total of amounts calculated in accordance with article 13 but will not exceed 75 per cent of the cost of the total of relevant benefit paid under the scheme.".
(4) In article 13 (relevant benefit)—
(a) in heads (1)(a)(i) and (1)(b)(i) for "95 per cent" substitute "100 per cent";
(b) in heads (1)(a)(ii) and (1)(b)(ii) for "X per cent" substitute "100 per cent"; and
(c) omit paragraph (3).
(5) In article 14 (backdated benefit) —
(a) in sub-paragraph (1)(b) for "50 per cent" substitute "100 per cent".
(6) In article 16 (treatment of high rents in rent allowance cases)—
(a) in paragraph (1) omit "(3)";
(b) in paragraph (2) for "paragraphs 3, 10, 11 or 11A" substitute "paragraphs 3 and 5 to 11A"; and
(c) omit paragraph (3).
(7) In article 17 (subsidy in respect of homeless and short lease rebate cases) —
(a) In paragraphs (2) and (3) for "95 per cent" substitute “100 per cent, wherever it occurs; and
(b) omit paragraph (7).
(8) In article 18 (additions to subsidy) —
(a) in head (1)(b)(i) for "95 per cent" substitute "100 per cent";
(b) in head (1)(b)(ii) for "X per cent" substitute "100 per cent";
(c) in paragraph (1) after sub-paragraph (d), insert—
"(e) where, during the relevant year, it is discovered that an overpayment in respect of which a deduction is to be made under article 19 is an authority error overpayment, where the proportion of total authority error overpayments as a percentage of the total specified subsidy is —
(aa) less than or equal to 0.48 per cent, the addition shall be 100 per cent of the total authority error overpayment;
(bb) greater than 0.48 per cent but less than or equal to 0.54 per cent, the addition shall be 40 per cent of the total authority error overpayment; and
(cc) greater than 0.54 per cent, the addition shall be nil.";
(d) in paragraph (5) for "112(1)" substitute "112";
(e) in paragraph (6) for "In paragraph (2)(a)," substitute "In paragraphs (1)(e) and (2)(a)";
(f) after paragraph (6), insert—
"(6A) In paragraph (1)(e), "total specified subsidy" means the total amount of housing benefit and council tax benefit that attracts 100 per cent subsidy for the relevant year, including any subsidy paid pursuant to article 14.".
(g) omit paragraph (9); and
(h) after paragraph (10), insert—
"(11) Where the addition payable under this article would be greater than a sum equivalent to the appropriate amount under article 17(2)(b)(i), (2)(b)(ii) and (3)(b)(ii) had the expenditure been qualifying expenditure, then the addition will be a sum equivalent to the appropriate amount.
(12) Where, during the relevant year, an overpayment that has been classified as an overpayment under one of paragraphs (4), (4ZA) (4A), (5), (6) or (7) is reclassified, the addition referred to in article 13(1) shall be the amount payable under paragraph (1) for the final classification of the overpayment.".
(9) In article 19 (deductions to be made in calculating subsidy) omit sub-paragraph (1)(d).
(10) In article 21 (additions to subsidy in respect of security against fraud and error)—
(a) in sub-paragraph (1)(a) for "Circulars specified in paragraph (2)" substitute "Housing Benefit and Council Tax Benefit Security Manual and Circular HB/CTB F10/2004";
(b) in sub-paragraph (1)(b) for the words "those Circulars", wherever they occur, substitute "the Housing Benefit and Council Tax Benefit Security Manual and Circular HB/CTB F10/2004"; and
(c) omit paragraph (2).
Amendment of Schedules to the principal Order
4.—(1) For Schedule 1 to the principal Order (sums to be used in the calculation of subsidy) substitute the Schedule set out in Schedule 1 to this Order.
(2) Omit Schedule 2 to the principal Order (adjustment for the prioritisation of claims).
(3) Omit Schedule 3 to the principal Order (calculation of deductions from subsidy in respect of period overruns).
(4) In Schedule 4 to the principal Order (high rents and rent allowances)–
(a) omit Part 1;
(b) for paragraph 6, substitute—
"Except where paragraph 5 applies, this Part also applies in a case where an authority is required under regulation 12A of the Housing Benefit Regulations (requirement to refer to rent officer) to apply for a determination in relation to a dwelling, but the appropriate amount shall be nil if the authority fails to apply for that determination—
(a) during the relevant year; or
(b) as soon as possible thereafter but before the date of the due date for the submission of the final subsidy claim for the relevant year."; and
(c) omit paragraph 14.
(5) In Part 1 of Schedule 4A to the principal Order (rent rebate limitation deductions (housing revenue account dwellings))–
(a) after "In this Schedule–" insert—
""dwelling" has the same meaning it bears in the determination made under section 80(1) of the Local Government and Housing Act 1989,"; and
(b) for paragraph (b) of the definition of "new service" substitute—
"(b) an extension to a service, where the service is provided in the relevant year to a greater extent than in 2001-02, or".
Signed by authority of the Secretary of State for Work and Pensions.
Parliamentary Under-Secretary of State, Department for Work and Pensions
9th January 2006
Two of the Lords Commissioners of Her Majesty's Treasury
11th January 2006
Article 4SCHEDULE TO BE SUBSTITUTED FOR SCHEDULE 1 TO THE PRINCIPAL ORDER
"SCHEDULE 1Articles 12(1)(b) and 17(1) and (8)
SUMS TO BE USED IN THE CALCULATION OF SUBSIDY
|Authority||Administration Subsidy||Homeless Threshold||Homeless Cap|
|ENGLAND|| || || |
|Barking and Dagenham||1,577,552||223.51||335.25|
|Barrow in Furness||567,357||98.76||164.78|
|Basingstoke and Deane||683,686||117.07||195.12|
|Bath and North East Somerset||1,119,296||100.71||167.85|
|Berwick upon Tweed||175,607||88.60||147.81|
|Blackburn with Darwen||1,572,370||108.94||181.57|
|Brighton and Hove||2,305,864||105.84||176.60|
|Chester le Street||388,509||82.28||137.71|
|City of London||101,767||223.51||335.25|
|Crewe and Nantwich||691,699||99.90||173.62|
|East Riding of Yorkshire||1,537,756||87.66||150.16|
|Ellesmere Port and Neston||393,506||73.57||126.92|
|Epsom and Ewell||227,846||117.07||195.12|
|Forest of Dean||489,034||96.52||161.03|
|Hammersmith and Fulham||2,172,197||223.51||335.25|
|Hinckley and Bosworth||352,716||93.60||156.17|
|Isle of Wight||1,116,039||117.07||195.12|
|Isles of Scilly||7,951||104.08||173.65|
|Kensington and Chelsea||1,773,991||223.51||382.76|
|Kings Lynn and West Norfolk||899,979||87.62||154.03|
|Kingston upon Hull||2,830,573||90.63||156.89|
|Kingston upon Thames||613,265||223.51||360.00|
|Newark and Sherwood||658,457||87.56||146.07|
|Newcastle under Lyme||742,167||78.70||131.18|
|Newcastle upon Tyne||3,305,160||85.76||143.08|
|North East Derbyshire||507,199||79.87||136.67|
|North East Lincoln||1,411,414||85.81||148.17|
|North West Leicestershire||369,574||86.63||144.54|
|Nuneaton and Bedworth||659,842||88.81||149.68|
|Oadby and Wigston||167,153||85.39||143.26|
|Redcar and Cleveland||1,313,745||94.34||157.39|
|Reigate and Banstead||490,190||131.92||220.09|
|Richmond upon Thames||1,003,958||223.51||335.25|
|Shrewsbury and Atcham||640,828||95.11||158.69|
|Southend on Sea||1,335,631||106.44||177.59|
|Stockton on Tees||1,333,142||89.51||150.70|
|Stoke on Trent||2,008,836||89.33||149.02|
|Stratford on Avon||563,261||92.82||154.71|
|Telford and Wrekin||1,211,855||92.82||154.71|
|Tonbridge and Malling||556,895||117.07||195.12|
|Vale of White Horse||427,904||117.07||195.12|
|Weymouth and Portland||436,328||104.29||173.81|
|Windsor and Maidenhead||587,153||117.07||195.12|
|WALES|| || || |
|Isle of Anglesey||435,637||87.88||146.61|
|Neath and Port Talbot||1,111,867||90.39||150.81|
|Rhondda Cynon Taff||1,733,323||87.70||146.32|
|Vale of Glamorgan||628,140||105.59||176.17|
|SCOTLAND|| || || |
|Argyll and Bute||606,884||85.63||142.88|
|Comhairle nan Eilean Siar||194,132||88.56||149.63|
|Dumfries and Galloway||1,452,887||80.33||136.45|
|Perth and Kinross||776,586||71.28||118.92|
(This note is not part of the Order)
This Order amends the Income-related Benefits (Subsidy to Authorities) Order 1998 (S.I. 1998/562) ("the principal Order") which provides for subsidy to be payable to authorities administering housing benefit and council tax 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. The amendments made by this Order have effect from 1st April 2004.
Article 2 amends Part II of the principal Order which is concerned with claiming and paying subsidy. Article 8A is inserted by article 2(4) to make provision for balancing what has been paid by way of interim subsidy with what it is estimated will be the amount of final subsidy before the claim has been audited. Article 2(5) amends article 9 to provide that the payment of final subsidy should take into account the amounts paid or recovered pursuant to the new articles 8A and 9A, as well as interim subsidy that has been paid. Article 2(6) inserts a new article 9A, which provides a new transitional protection scheme of subsidy rates and rules effective from 1st April 2004.
Article 3 amends Part III of the principal Order which is concerned with the calculation of subsidy. Article 3(3) also amends article 12, to provide an addition to subsidy in recognition of the operation by local authorities of schemes under s134(8) and 139(6) of the Social Security Administration Act 1992 to disregard the income of those who receive war disablement and war widow's pensions. Article 3(4) provides for a new rate of subsidy of 100 per cent of qualifying expenditure attributable to housing benefit and council tax benefit in article 13. Articles 3(5) and 3(7) increase the rates of subsidy for backdated benefits in article 14 and for homeless and short lease rebate cases in Article 17 to 100 percent. Article 16 has been amended by article 3(6) in order to abolish regulated rent allowance thresholds.
Article 3(8) provides for increases to rates of subsidy in Article 18 where there has been a departmental error overpayment. Article 3(8)(c) provides for variable rates of subsidy to be paid where there has been a local authority error overpayment. New paragraphs are inserted in article 18 clarify how much subsidy is payable when where there has been an overpayment and that authorities can reclassify overpayments in-year. Article 21 is amended by article 3(10) to refer to the Housing Benefit and Council Tax Benefit Security Manual, which encompasses those circulars which were previously listed in article 21. A number of other minor and consequential changes have been made to Part III of the principal Order.
Article 4 amends the Schedules to the principal Order. Article 4(1) substitutes the figures to be used in the calculation of subsidy which are outlined in Schedule 1 to this Order for those in Schedule 1 to the principal Order. Schedule 2 (adjustment for the prioritisation of claims) and Schedule 3 (calculation of subsidy in respect of period overruns) are omitted. Paragraph 6 of schedule 4 (rent officer determinations) has been amended to clarify that subsidy will be payable in certain circumstances where the local authority has not referred to the rent officer. Article 4(5) provides that for the purposes of this schedule the definition of "dwelling" in Schedule 4A (rent rebate limitation deductions) is the same definition as is used in the Housing Revenue Account Subsidy Determination. A number of other minor changes are made to the Schedules to the principal Order.
A full regulatory impact assessment has not been produced for this instrument as it has no impact on the cost of business.
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) and paragraph 36 of Schedule 7 to the Local Government Act 2003 (c.26). Section 189(1) and (4) to (6) was amended by paragraph 109 of Schedule 7 to the Social Security Act 1998 (c.14); section 189(1) was amended by paragraph 57(2) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c.2) and Schedule 6 to the Tax Credits Act 2002 (c.21); 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 Social Security Administration (Fraud) Act 1997.back
Section 189(8) is amended 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).back
Section 176(1) is amended by paragraph 3(4) of Schedule 14 to the Housing Act 1996.back
S.I. 1998/562. Relevant amending instruments are S.I. 1998/2865, 1999/550, 2000/1091, 2000/2340, 2001/2350, 2002/1859, 2002/3116, 2003/3179, 2004/646, 2005/369 and 2005/535.back
A relevant amendment was made by Schedule 9 of the Local Government Finance Act (c.14).back
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