Explanatory note

This Order amends the Income-related Benefits (Subsidy to Authorities) Order 1998 (S.I. 1998/562) (“the principal Order”) which provides for subsidy to be payable by the Secretary of State to authorities administering housing benefit and council tax 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. Certain amendments made by this Order shall have retrospective effect.

Article 2 amends Part II of the principal Order which is concerned with claiming and paying subsidy. A new article 3A is inserted, which authorises the Secretary of State, local authorities and auditors to use an electronic communication in connection with the claim, audit or payment of subsidy where the conditions listed in Schedule 6 of the principal Order are met. Article 2 also makes consequential amendments to other parts of Part II to clarify the audit process.

Article 3 makes a minor amendment to Part III of the principal Order.

Article 4 amends the Schedules to the principal Order. Article 4(1) substitutes the figures to be used in the calculation of subsidy which are outlined in Schedule 1 to this Order for those in Schedule 1 to the principal Order. Article 4(2) increases the subsidy paid to authorities in certain cases to 100%. Article 4(3) makes some amendments to calculation of rent rebate limitation deductions.

A regulatory impact assessment has not been produced for this instrument as it has no impact on the cost of business, charities and voluntary bodies.