Explanatory note

This Order amends the Income-related Benefits (Subsidy to Authorities) Order 1998 (“the 1998 Order”) (S.I. 1998/562), which provides for the calculation and payment of housing benefit and council tax benefit subsidy to local authorities in England, Wales and Scotland which administer those benefits. Section 140F(2) of the Social Security Administration Act 1992 (c.5) authorises the making or varying of an Order before, during or after the year to which it relates.

Article 2 amends the 1998 Order with effect from 1st April 2012. It inserts a new paragraph (4ZB) into article 18 of the 1998 Order, which provides that certain overpayments that were made between 9th April 2012 and 19th April 2012 can be treated as departmental error overpayments rather than administrative delay overpayments. Local authorities are paid a full subsidy in respect of departmental error overpayments but the subsidy can potentially be reduced to nil in respect of administrative delay overpayments. It also makes consequential amendments to paragraphs (4), (6ZA) and (12) of article 18.

Article 2(2) and Schedule 1 to this Order substitute Schedule 1 to the 1998 Order. It sets out new figures to be used in the calculation of subsidy for the year beginning on 1st April 2012.

Article 3 amends the 1998 Order with effect from 1st April 2013. Paragraph 3(1) amends article 14 of the 1998 Order to provide that the subsidy in respect of council tax benefit will be nil on and after 1st April 2013 even if the claim relates to a period before that date. Paragraph 3(2) substitutes Part 3 of Schedule 4A to the 1998 Order. With respect to authorities in Wales, paragraph 3(3) substitutes Part 5 of Schedule 4A to the 1998 Order which sets out the specified amount “O” and the guideline rent increase used when calculating deductions from subsidy under paragraph 4 in Part 4 of that Schedule.

A full impact assessment has not been produced for this instrument as it has no impact on the private sector or civil society organisations.