Explanatory note

This Order amends the Income-related Benefits (Subsidy to Authorities) Order 1998 (“the 1998 Order”), 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 authorises the making or varying of an Order before, during or after the year to which it relates.

Article 2, which has effect from 1st April 2011, substitutes a new table in Schedule 1 to the 1998 Order. This substitutes new figures to be used in the calculation of administration subsidy for the year beginning on 1st April 2011.

Article 3, which has effect from 1st April 2012, amends article 4(2)(a) of the 1998 Order to change the date on which a subsidy claim must be send to the Secretary of State. Instead of 31st May of the relevant year, it must now be sent by 30th April.

Article 4, which also has effect from 1st April 2012, amends Schedule 4A to the 1998 Order, which determines whether or not an authority is liable to a deduction from rent rebate subsidy payable for 2012-13.

With respect to authorities in England, paragraph (2) amends the calculation so that the rent for a dwelling in the authority’s Housing Revenue Account which is part of the Affordable Rent programme is not included (and so is not subject to the subsidy limitation on weekly rents). The Affordable Rent programme allows an authority to charge a rent of up to 80% of the rent in the local market in respect of dwellings where it has entered into an arrangement with the Secretary of State, the Homes and Communities Agency or the Greater London Authority. Paragraph (3) substitutes a new table in Part 3 of Schedule 4A (weekly rent limits).

With respect to authorities in Wales, paragraph (4) substitutes a new table in Part 5 of Schedule 4A 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.