Explanatory note

This Order sets out the manner in which the subsidy payable under section 32 of the Social Security and Housing Benefits Act 1982 to authorities who grant rate rebates, rent rebates or rent allowances under that Act is to be calculated in respect of the year beginning 1st April 1987.

Articles 3 and 5 and the Schedule set out the basis on which the subsidy in respect of rebates and allowances is to be calculated and article 4 the basis of calculating the amount of subsidy in respect of administration costs. The amount included in respect of rebates and allowances is to be the percentage (set out in the Schedule) of the rebates or allowances granted by an authority under the statutory scheme less the deductions set out in article 5. The amount included in respect of administration costs is to be the percentage (set out in article 4) of the costs reasonably incurred by an authority. Article 6 sets out the amount included in respect of overpayments of benefit in certain cases.