Explanatory note

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. Sections 140C(4) and 140F(2) of the Social Security Administration Act 1992 (c. 5) authorise the making, revocation or varying of an Order before, during or after the year to which it relates.

Article 3 updates the definition of “HBAP” in article 2 of the 1998 Order to refer to the appropriate version of the Housing Benefit Assurance Process, published on 1st April 2024. Article 4 updates the meaning of “self-contained accommodation” for the purposes of articles 17 to 17C of the 1998 Order. Article 5 makes a correction to paragraph (7A), the definition of “technical overpayment” for the purposes of article 18 of the 1998 Order.

Article 6 and the Schedule 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 2023.

Article 7 amends Schedule 1ZB to the 1998 Order, which 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. The amendments to Schedule 1ZB have effect for the purposes of determining additional amounts of subsidy payable for the year beginning with 1st April 2024. The amounts were notified by the Secretary of State to local authorities on 23rd April 2024.

Article 8 amends Schedule 1ZC to the 1998 Order. The definition of “HBAAI” in paragraph 1 of that Schedule is updated to refer to the most recent version of the Housing Benefit Award Accuracy Initiative, published on 4th April 2023. Paragraph 2 of Schedule 1ZC prescribes a system for the making of additional payments of subsidy to authorities verifying the accuracy of information held in respect of the household, income and capital, and general financial circumstances of claimants for housing benefit. The amendments to Schedule 1ZC have effect for the purposes of determining additional amounts of subsidy payable for the year beginning with 1st April 2023. The amounts were notified by the Secretary of State to local authorities on 27th April 2023 and revised on 19th December 2023.

Article 9 amends Schedule 4A to the 1998 Order, to update the rebate proportion figure for 2024/2025 to 0.397, and to set out revised specified amounts “O” and guideline rent increases “P” used when calculating deductions from subsidy under paragraph 2 of Schedule 4A. The amendments to Schedule 4A have effect for the purposes of determining subsidy payable for the year beginning with 1st April 2024 for authorities in Wales.

Hard copies of the circulars referenced in this Order are available by writing to the Department for Work and Pensions, Local Authority Partnership, Engagement and Delivery Division, Peel Park Phase 2, First Floor Blue Zone, Brunel Way, Blackpool, Lancashire FY4 5ES or by emailing [email protected].

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.