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United Kingdom Statutory Instruments
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STATUTORY INSTRUMENTS

2006 No. 54

SOCIAL SECURITY

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[1].

     In accordance with section 189(8) of that Act he has sought the consent of Treasury[2]. In accordance with section 176(1) of that Act he has consulted with organisations appearing to him to be representative of the authorities concerned[3].

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[4].

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—

    (5) In article 9 (payment of subsidy for the relevant year)—

    (6) After article 9, insert—

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) —

    (3) In article 12 (amount of subsidy)—

    (4) In article 13 (relevant benefit)—

    (5) In article 14 (backdated benefit) —

    (6) In article 16 (treatment of high rents in rent allowance cases)—

    (7) In article 17 (subsidy in respect of homeless and short lease rebate cases) —

    (8) In article 18 (additions to subsidy) —

    (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)—

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)–

    (5) In Part 1 of Schedule 4A to the principal Order (rent rebate limitation deductions (housing revenue account dwellings))–



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


James Plaskitt
Parliamentary Under-Secretary of State, Department for Work and Pensions

9th January 2006



We consent


Tom Watson

Gillian Merron
Two of the Lords Commissioners of Her Majesty's Treasury

11th January 2006



SCHEDULE 1
Article 4


SCHEDULE TO BE SUBSTITUTED FOR SCHEDULE 1 TO THE PRINCIPAL ORDER




EXPLANATORY NOTE

(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.

Notes:

 [1] 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

[2] 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

[3] Section 176(1) is amended by paragraph 3(4) of Schedule 14 to the Housing Act 1996.back

[4] 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

[5] 1998 c.41.back

[6] 1987 c.26.back

[7] A relevant amendment was made by Schedule 9 of the Local Government Finance Act (c.14).back


ISBN 0 11 073905 1


 © Crown copyright 2006

Prepared 19 January 2006

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URL: http://www.bailii.org/uk/legis/num_reg/2006/20060054.html