# The Income-related Benefits (Subsidy to Authorities) Amendment Order 2025, Note: Explanatory note


(This note is not part of the Order)
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 28th April 2025.
Article 4 provides that the local authority may, in calculating subsidy for the relevant year, limit the amount of deductions for overpayments made in any earlier relevant years to the amount of subsidy local authorities received in respect of those overpayments.
Article 5 and the Schedule substitute Schedule 1 to the 1998 Order, which prescribes the sums used in the calculation of subsidy for the year beginning 1st April 2024.
Article 6 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 amendment provides that the additional amount of subsidy relating to those alerts for the year beginning on 1st April 2024 includes the amounts specified in the Housing Benefit Circular published on 20th December 2024.
Article 7 amends Schedule 1ZC to the 1998 Order which 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 amendment to paragraph 1 of that Schedule updates the definition of “HBAAI” to refer to the most recent version of the Housing Benefit Award Accuracy Initiative, published on 23rd April 2024. The amendments to paragraph 2 of that Schedule update the Schedule to refer to the additional amounts of subsidy payable for the year beginning on 1st April 2024. The amounts were notified by the Secretary of State to local authorities on 23rd April 2024.
Article 8 amends Schedule 4A to the 1998 Order, both to update the rebate proportion figure for 2025/2026 to 0.369 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 on 1st April 2025 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 lawelfare.lafunding@dwp.gov.uk.
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.

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Source: https://www.legislation.gov.uk/uksi/2025/1077/note (the official version)
Page: https://openlegislation.uk/income-related-benefits-subsidy-to-authorities-amendment-order-2025/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.