# The Housing Benefit and Council Tax Benefit (Subsidy) Order 1997, Article 6: Disproportionate rent increase


(1) Except where paragraph (5), (6) or (7) applies, in the case of an authority in Scotland, where the average rent increase differential, as calculated in accordance with paragraph (2), for such an authority has a value greater than zero, the deduction from housing benefit qualifying expenditure specified in article 2(2)(a) shall be that proportion of the sum calculated for that authority in accordance with paragraph (4).
(2) (a) Subject to sub-paragraph (b), the average rent increase differential for each appropriate authority shall be calculated by applying the formula—
(1+A)×BC×DE-1 where
A, B, C, D and E each has the value determined in accordance with paragraph (3).
(b) In the case of a new authority to which paragraph (5), as modified by paragraph (6), does not apply, the average rent increase differential for each such authority shall be calculated by applying the formula in sub-paragraph (a) except that, for the purposes of this sub-paragraph, the value of A shall be determined by multiplying F x G in relation to each predecessor authority of that new authority and then adding together the sum of that multiplication in relation to each such predecessor authority.
(3) For the purposes of paragraph (2)—
(a) subject to paragraph (2)(b), the value of A shall be the proportion calculated for that authority pursuant to paragraphs (3) and (4) of article 6 of the 1996 Order;
(b) the value of B shall be the average rent charged by the authority in respect of Category 1 dwellings on the final date;
(c) the value of C shall be the average rent charged by the authority in respect of Category 1 dwellings on the initial date;
(d) the value of D shall be the average rent charged by the authority in respect of Category 2 dwellings on the initial date;
(e) the value of E shall be the average rent charged by the authority in respect of Category 2 dwellings on the final date;
(f) the value of F shall be the proportion calculated for a predecessor authority pursuant to paragraphs (3) and (4) of article 6 of the 1996 Order, and
(g) the value of G shall be the proportion of the new authority’s housing stock which was previously the stock (or part thereof) of that predecessor authority.
(4) The sum referred to in paragraph (1) shall be that part of housing benefit qualifying expenditure attributable to rebates granted during the relevant year before any deduction by reason of this article but less any part of such expenditure to which article 4(1)(b)(ii) applies.
(5) This article shall not apply in the case of an authority—
(a) which has—
(i) set the rent for the relevant year according to the type, condition, class or description of the dwellings and the services, facilities or rights provided to the tenants, where that rent is reasonable having regard to those matters;
(ii) not taken account of whether a tenant was a beneficiary when setting rents for the relevant year, and
(iii) not let dwellings, either in the relevant year or in either of the two previous years, to beneficiaries irrespective of their housing needs;
or
(b) where—
(i) any increases in rent between the initial date and 1st April 1997 were of the same percentage and applied on the same day to all tenants irrespective of whether they were beneficiaries, and
(ii) the average rent increase differential calculated in accordance with article 6 of the 1996 Order for that authority had a value which was zero or less than zero.
(6) In relation to a new authority, this article shall be modified so that
“initial date” means 1st April 1996 and in paragraph (5)—
(a) at the beginning there shall be inserted the words “Provided that where the average rent increase differential calculated in accordance with article 6 of the 1996 Order for each predecessor authority had a value which was zero or less than zero,”;
(b) in sub-paragraph (a)(iii) for “, either in the relevant year or in either of the two previous years,” there shall be substituted the words “in the relevant year”; and
(c) in sub-paragraph (b) head (ii) shall be omitted.
(7) This article shall also not apply in a case to which article 9 applies.
(8) In this article (and, in the case of the definition of “beneficiary”, also in article 11(2))—
“average” means the arithmetic mean;
“beneficiary” means a person who is entitled or likely to become entitled to a rebate;
“Category 1 dwellings” means dwellings rented out by the authority on both the initial date and the final date in respect of which, on the final date, the persons liable to pay such rent were in receipt of rebates;
“Category 2 dwellings” means dwellings rented out by the authority on both the initial date and the final date in respect of which, on the final date, the persons liable to pay such rent were not in receipt of rebates;
“final date” means the 31st March 1997;
“initial date” means the 31st March 1996;
“predecessor authority” means, in the case of a new authority, any authority which, before 1st April 1996, administered rent rebates in that new authority’s area, and
“rent” means either—
(a) the payments specified in sub-paragraphs (a) to (j) in paragraph (1) of regulation 10 of the Housing Benefit Regulations (rent); or
(b) the eligible rent,
as the authority may determine, provided that wherever the expression “rent” occurs in paragraph (3) it has the same meaning throughout in relation to that authority.

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Source: https://www.legislation.gov.uk/uksi/1997/1004/article/6 (the official version)
Page: https://openlegislation.uk/housing-benefit-and-council-tax-benefit-subsidy-order-1997/article-6
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.