Citation, commencement, application and interpretation

1.-(1) This Order may be cited as the Income-related Benefits (Subsidy to Authorities) Amendment Order 2020 and comes into force on 31st October 2020.

(2) Article 3 and Schedule 1 have effect for the purpose of determining subsidy payable for the relevant year beginning with 1st April 2019.

(3) Articles 4 and 5 and Schedule 2 have effect for the purpose of determining subsidy payable for the relevant year beginning with 1st April 2020.

(4) In this Order-

"the 1998 Order" means the Income-related Benefits (Subsidy to Authorities) Order 1998(4);

"relevant year" means the period of a year, beginning with 1st April in any calendar year, in respect of which a claim for subsidy is made.

Amendment of the 1998 Order

2.  The 1998 Order is amended in accordance with articles 3 to 5.

The amount of an authority's subsidy

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

Rent rebate deductions from an authority's subsidy

4.-(1) For Article 20A substitute-

"Deductions from subsidy for rebate for dwellings within the Housing Revenue Account: authorities in Wales

20A.-(1) Paragraph (2) applies in relation to an authority in Wales.

(2) Where paragraph 4 of Schedule 4A applies, the deduction from subsidy referred to in article 13(1) shall be calculated in accordance with paragraph 5 of that Schedule.".

(2) In Schedule 4A (rent rebate limitation deductions (housing revenue account dwellings)-

(a)at the end of the heading insert ": authorities in Wales";

(b)in Part 1, omit the definitions of "Affordable Rent", "Affordable rent dwelling", "new service", "relevant party", "void dwelling" and "2001-02";

(c)omit Parts 2 and 3;

(d)in Part 4, in paragraph 5, for sub-paragraph (2) substitute-

"(2) The rebate proportion for the purposes of sub-paragraph (1) for each relevant year commencing with 2020–21 is 0.574.".

(e)for Part 5 (amounts for purposes of Part 4, paragraph 4: authorities in Wales), substitute the Part 5 set out in Schedule 2 to this Order.

Additional amount of subsidy: Verify Earnings and Pension Alerts Service

5.  In Schedule 1ZB (additional amount of subsidy: Verify Earnings and Pension Alerts Service) for paragraph 2 substitute-

"Additional amount: relevant year beginning with 1st April 2020

2.  The additional amount of subsidy for an authority for the relevant year beginning with 1st April 2020 is the amount specified for that authority in the Housing Benefit Circular HB S6/2020 published by the Department for Work and Pensions on 16th April 2020(5).".

Article 3

SCHEDULE 1Substitution of Schedule 1 to the 1998 Order

Article 12(1)(b)

"SCHEDULE 1Sums to be used in the calculation of subsidy

Article 4(2)(e)

SCHEDULE 2Substitution of Part 5 of Schedule 4A to the 1998 Order

"PART 5AMOUNTS FOR PURPOSES OF PART 4, PARAGRAPH 4: AUTHORITIES IN WALES

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 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 2019.

Article 4 and Schedule 2 have effect for the purposes of determining subsidy payable for the year beginning with 1st April 2020. They disapply the rent rebate subsidy limitation applying in respect of authorities in England and substitute Part 5 of Schedule 4A to the 1998 Order in respect of authorities in Wales. That Part sets out the specified amount "O" and the guideline rent increase "P" used when calculating deductions from subsidy under paragraph 4 in Part 4 of Schedule 4A.

Article 5 substitutes paragraph 2 of Schedule 1ZB to the 1998 Order. Schedule 1ZB 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 and the substituted paragraph 2 has effect for the purposes of determining additional amounts of subsidy payable for the year beginning with 1st April 2020. The amounts were notified by the Secretary of State to local authorities on 16th April 2020.

Hard copies of the circular referenced in this Order are available from the Department for Work and Pensions, Local Authority Partnership, Engagement and Delivery Division, Room B120D, Warbreck House, Warbreck Hill, Blackpool, FY2 0YE.

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.