Citation, commencement and extent

1.—(1) This Order may be cited as the Income-related Benefits (Subsidy to Authorities) Amendment Order 2023 and comes into force on 6th November 2023.

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

Amendment of the Income-related Benefits (Subsidy to Authorities) Order 1998 and effect of amendments

2.—(1) The Income-related Benefits (Subsidy to Authorities) Order 1998( 4) is amended in accordance with articles 3 to 8.

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

(3) In paragraph (2), “ 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 “31st March 2022” substitute “17th April 2023”( 6).

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.

Additional amount of subsidy: 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.

High rents and rent allowances

7.  In Schedule 4 (high rents and rent allowances), omit Part 5.

Rent rebate deductions from the subsidy of an authority in Wales

8.  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.

Schedules

Article 4

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

Article 12(1)(b)

“Schedule 1 Sums to be used in the calculation of subsidy

Article 5

Schedule 2 Substitution of Schedule 1ZB to the Income-related Benefits (Subsidy to Authorities) Order 1998

Article 12(1)(bza)

“Schedule 1ZB Additional amount of subsidy: Verify Earnings and Pension Alerts Service

Interpretation

1.   In this Schedule—

“ relevant activities ” means activities carried out by authorities receiving VEP alerts to administer those alerts;

“ VEP alerts ” means alerts given by the Secretary of State enabling authorities to identify changes in earnings and pensions so as to help prevent fraud and error relating to housing benefit.

Additional amount: relevant year beginning with 1st April 2023

2.   The additional amount of subsidy for an authority for the relevant year beginning with 1st April 2023 is the amount specified for that authority in the Housing Benefit Circular HB S7/2023 first published by the Department for Work and Pensions on 9th May 2023( 7) .

Use of amount paid under paragraph 2

3.   An authority must use the additional amount received under paragraph 2 in connection with relevant activities. ”.

Article 6

Schedule 3 Substitution of Schedule 1ZC to the Income-related Benefits (Subsidy to Authorities) Order 1998

Article 12(1)(bzb)

“Schedule 1ZC Additional amount of subsidy: Housing Benefit Award Accuracy Initiative

Interpretation

1.   In this Schedule—

“ HBAAI ” means the Housing Benefit Award Accuracy Initiative set out in Housing Benefit Circular HB A5/2022 first published by the Department for Work and Pensions on 5th May 2022( 8) ;

“ relevant activities ” means activities carried out by authorities in connection with administering the HBAAI.

Additional amount: relevant year beginning with 1st April 2022

2.   The additional amount of subsidy for an authority for the relevant year beginning with 1st April 2022 is the amount (if any) specified for that authority in the following Housing Benefit Circulars published by the Department for Work and Pensions—

(a) HB S7/2022, first published on 29th April 2022( 9) ;

(b) HB S10/2022, first published on 18th November 2022( 10) .

Use of amount paid under paragraph 2

3.   An authority must use any additional amount received under paragraph 2 in connection with relevant activities. ”.

Article 8

Schedule 4 Substitution of Schedule 4A to the Income-related Benefits (Subsidy to Authorities) Order 1998

Article 20A

“Schedule 4A Rent Rebate Limitation Deductions (Housing Revenue Account Dwellings): Authorities in Wales

Interpretation

1.   In this Schedule—

“ HRA ” means the Housing Revenue Account of the authority the amount of whose subsidy is under consideration;

“ rent ”, in relation to a dwelling, means the total of the payments in respect of the dwelling specified in regulation 12(1) of the Housing Benefit Regulations or, as the case may be, regulation 12(1) of the Housing Benefit (State Pension Credit) Regulations, other than a payment specified in regulation 12(1)(e).

Liability to deduction

2.— (1)  This paragraph applies in relation to the relevant year if—

(a) the authority is specified in the Table in paragraph 4 for that year, and

(b) O + P is less than Q where—

“ O ” is the amount specified in column 1 of that Table for the authority;

“ P ” is the guideline rent increase specified in column 2 of that Table for the authority;

“ Q ” is the average weekly rent for a dwelling for the authority for the relevant year.

(2)  For the purposes of determining Q in sub-paragraph (1)(b), the average weekly rent for a dwelling for the authority for the relevant year is calculated by dividing the total rent charged for all dwellings in the HRA in that year by the total number of weeks for which rent was charged for all dwellings in the HRA, disregarding any unoccupied dwelling.

Amount of deduction

3.— (1)  The amount of the deduction from subsidy referred to in article 20A(2) is to be calculated as follows—

• Step 1

  Divide the amount of rebates granted by the authority in the relevant year in respect of dwellings in the HRA by the income of the authority for that year from rent (including rent remitted by way of rebate) in respect of such dwellings.

• Step 2

  If the result of Step 1—

  (a)

  does not exceed the rebate proportion for the relevant year (see sub-paragraph (2))—

  (i)

  deduct (O + P) from Q (see paragraph 2);

  (ii)

  divide the result of paragraph (a)(i) by Q;

  (iii)

  multiply the amount of the subsidy (apart from any deduction to be calculated under this Schedule) by the result of paragraph (a)(ii));

  (b)

  exceeds the rebate proportion for the relevant year—

  (i)

  deduct (O + P) from Q (see paragraph 2);

  (ii)

  divide the result of paragraph (b)(i) by Q;

  (iii)

  divide the rebate proportion (see sub-paragraph (2)) by the result of Step 1;

  (iv)

  multiply the result of paragraph (b)(ii) by the result of paragraph (b)(iii);

  (v)

  multiply the amount of the subsidy (apart from any deduction to be calculated under this Schedule) by the result of paragraph (b)(iv).

(2)  The rebate proportion for the purposes of sub-paragraph (1) for the relevant year beginning with 1st April 2023 is 0.44.

Amounts for the purposes of paragraph 2

4.   The amounts for the relevant year beginning with 1st April 2023 for the purposes of paragraph 2 are as follows—

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 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)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 17th April 2023.

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 2022.

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. The substituted Schedule 1ZB has effect for the purposes of determining additional amounts of subsidy payable for the year beginning with 1st April 2023. The amounts were notified by the Secretary of State to local authorities on 9th April 2023.

Article 6 and Schedule 3 substitute Schedule 1ZC to the 1998 Order. The definition of “HBAAI” in paragraph 1 of that Schedule is updated to refer to the most recent version of the Housing Benefit Award Accuracy Initiative, published on 5th May 2022. Paragraph 2 of Schedule 1ZC 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 substituted Schedule 1ZC 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 18th November 2022.

Article 7 omits Part 5 of Schedule 4 to the 1998 Order. Paragraph 1 of that Schedule, which referred to the table in Part 5, was previously omitted by the Income-related Benefits (Subsidy to Authorities) Amendment Order 2006 ( S.I. 2006/54). This Order is therefore being issued free of charge to all known recipients of that Statutory Instrument.

Article 8 and Schedule 4 substitute Schedule 4A to the 1998 Order, to update the rebate proportion figure for 2023/2024 to 0.44, 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 substituted Schedule 4A has effect for the purposes of determining subsidy payable for the year beginning with 1st April 2023 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[email protected].

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.