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STATUTORY INSTRUMENTS

2005 No. 369

SOCIAL SECURITY

The Income-related Benefits (Subsidy to Authorities) Amendment Order 2005

  Made 21st February 2005 
  Laid before Parliament 25th February 2005 
  Coming into force 20th March 2005 

The Secretary of State for Work and Pensions, with the consent of the Treasury [1], in exercise of powers conferred on him by sections 140B(1), (3) and (4), 140C(1), 140F(2) and 189(1) and (4) to (7) of the Social Security Administration Act 1992 [2], and of all other powers enabling him in that behalf, after consultation with organisations appearing to him to be representative of the authorities concerned [3], hereby makes the following Order:

Citation, commencement, effect and interpretation
     1.  - (1) This Order may be cited as the Income-related Benefits (Subsidy to Authorities) Amendment Order 2005, and shall come into force on 20th March 2005.

    (2) This Order shall - 

    (3) In this Order, "the principal Order" means the Income-related Benefits (Subsidy to Authorities) Order 1998 [5].

Amendment of article 1 of the principal Order
     2. In article 1(2) of the principal Order (interpretation) the definition of "new incentive scheme" shall be omitted.

Amendment of Part II of the principal Order
     3.  - (1) Part II of the principal Order (claims for and payment of subsidy) shall be amended as follows.

    (2) In article 2 (interpretation of Parts II and IV), the definitions of "benefit savings" and "fraud prosecution points" shall be omitted.

    (3) In article 4 (requirement of claim) - 

Amendment of Part III of the principal Order
     4.  - (1) Part III of the principal Order (calculation of subsidy) shall be amended as follows.

    (2) In article 11(1) (interpretation of Part III), for the definition of "X per cent." substitute - 

    (3) In article 13(1) (relevant benefit - calculation of subsidy) for the words from "articles 18" to the end there shall be substituted "articles 18 and 21, but subject, in each case, to the deductions, where applicable, under articles 20 and 20A.".

    (4) In article 14 (backdated benefit), in paragraph (2), for the words "in a case to which article 18(1)(b)(iii)" there shall be substituted "in relation to expenditure to which article 17(2)(a)(i) or (b)(i) or (3)(b)(ii) or 18(1)(b)(iii)".

    (5) After article 15, insert - 

    (6) In article 17 (subsidy in respect of homeless and short lease rebate cases), in paragraph (2)(a)(i) and (b)(i) and paragraph (3)(b)(ii) for "12.5 per cent." substitute "10 per cent.".

    (7) In article 18 (additions to subsidy) - 

    (8) For article 21 (additions to and deductions from subsidy in respect of benefit savings) there shall be substituted - 

Amendment of Schedules to the principal Order
     5.  - (1) For Schedule 1 to the principal Order (sums to be used in the calculation of subsidy) there shall be substituted the Schedule set out in the Schedule to this Order.

    (2) Schedule 5 (benefit savings) to the principal Order shall be omitted.



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


Chris Pond
Parliamentary Under-Secretary of State, Department for Work and Pensions

21 February 2005



We consent,


Jim Murphy

Nick Ainger
Two of the Lords Commissioners of

21 February 2005



SCHEDULE
Article 5(1)


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 ("the principal Order") which provides for subsidy to be payable to authorities administering housing benefit and council tax benefit.

Section 140F(2) of the Social Security Administration Act 1992 authorises the varying of an Order before, during or after the year to which it relates. Except where article 1(2)(a) and (b) provide that amendments are to have effect from 1st April 2002 or 1st April 2004 respectively, the amendments made by this Order have effect from 1st April 2003.

Article 4 amends Part III of the principal Order which is concerned with the calculation of subsidy. Article 14 is amended so that in a case where subsidy would fall to be calculated in accordance with that article and a specified provision of article 17, only the latter is to apply. A new article 15A is inserted to make provision for the amount to be deducted from qualifying expenditure, when calculating rent rebate subsidy for housing authorities in Wales, where the rent charged by the authority has increased by more than an amount determined in accordance with that article. Article 17 is amended to reduce from 12.5 per cent to 10 per cent of the relevant qualifying expenditure the appropriate amount which is included for the purposes of determining subsidy in relation to board and lodging accommodation. A new paragraph (4ZA) is inserted in article 18 so that certain overpayments which were made during a specified period in 2003 following the introduction of new tax credits are to be treated as 'departmental error overpayments' rather than 'authority error overpayments'.

Article 21 is amended to introduce with effect from 2002 new arrangements for additional amounts of subsidy to be payable where an authority has undertaken activities in accordance with Circulars specified in that article, and in consequence Schedule 5 (which set out the former arrangements for additional amounts of subsidy for that purpose) is omitted. A number of other minor and consequential changes are also made in Part II and Part III of the principal Order.

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business.

Notes:

 [1] See section 189(8) of the Social Security Administration Act 1992 (c.5) ("the 1992 Act"), which was amended by paragraph 3(5) of Schedule 13 to the Housing Act 1996 (c.52), paragraph 10 of Schedule 3 to the Social Security (Recovery of Benefits) Act 1997 (c.27), paragraph 57(3) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc) Act 1999 (c.2) ("the 1999 Act") and paragraph 3 of Schedule 4 to the Tax Credits Act 2992 (c.21) ("the 2002 Act").back

[2] 1992 c.5. Sections 140B and 140F were inserted by paragraph 4 of Schedule 12 to the Housing Act 1996. Section 140B(1) was amended by paragraph 7 of Schedule 1 to the Social Security Administration (Fraud) Act 1997 (c.47) ("the 1997 Act"); section 140B(4) was substituted by section 10 of the 1997 Act; section 189(1) was amended by paragraph 57(2) of Schedule 3 to the 1999 Act and Schedule 6 to the 2002 Act; 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 1997 Act.back

[3] See section 176(1)(b) of the 1992 Act; a relevant amendment was made by paragraph 3(4) of Schedule 13 to the Housing Act 1996.back

[4] See section 140F of the 1992 Act.back

[5] S.I. 1998/562. Relevant amending instruments are S.I. 1998/2865, 1999/550, 2000/1091, 2000/2340, 2001/2350, 2002/1859, 2002/3116 and 2003/3179.back

[6] A copy of this Determination may be obtained from the Welsh Assembly [Government], Cathays Port, Cardiff CS10 3NQ.back

[7] Copies of these Circulars may be obtained from the Department for Work and Pensions, 5th Floor, Adelphi, John Adam Street, London WC2N 6HT.back


ISBN 0 11 072295 7


  © Crown copyright 2005

Prepared 25 February 2005

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URL: http://www.bailii.org/uk/legis/num_reg/2005/20050369.html