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Article 15A Disproportionate rent increase – WalesF1

(1)

Subject to paragraphs (5) to (7), in the case of an authority in Wales whose average rent increase differential, as calculated in accordance with paragraph (2) (“the proportion”), has a value greater than zero, the deduction from qualifying expenditure specified in article 11(2)(a) shall be the proportion multiplied by the sum calculated for that authority in accordance with paragraph (4).

(2)

The average rent increase differential for each authority shall be calculated by applying the formula—

(1+A)×(BC×DE)−1

where A, B, C, D and E each has the value determined in accordance with paragraph (3).

(3)

For the purposes of paragraph (2)—

(a)

the value of A shall be the proportion calculated for that authority pursuant to that paragraph for the year immediately preceding the relevant year;

(b)

the value of B shall be the average rent charged by the authority in respect of Category 1 dwellings on the final date;

(c)

the value of C shall be the average rent charged by the authority in respect of Category 1 dwellings on the initial date;

(d)

the value of D shall be the average rent charged by the authority in respect of Category 2 dwellings on the initial date; and

(e)

the value of E shall be the average rent charged by the authority in respect of Category 2 dwellings on the final date.

(4)

The sum referred to in paragraph (1) shall be that part of qualifying expenditure attributable to rebates granted during the relevant year before any deduction by reason of this article, but less any part of such expenditure to which article 13(1)(b)(iii) applies.

(5)

This article shall not apply in the case of an authority—

(a)

which has—

(i)

set the rent for the relevant year according to the type, condition, class or description of the dwellings and the services, facilities or rights provided to the tenants, where that rent is reasonable having regard to those matters,

(ii)

not taken account of whether a tenant was a beneficiary when setting rents for the relevant year, and

(iii)

not let dwellings, either in the relevant year or in either of the two previous years, to beneficiaries irrespective of their housing needs; or

(b)

where—

(i)

any increases in rent between the initial date and 1st April in the following year were of the same percentage and applied on the same day to all tenants irrespective of whether they were beneficiaries, and

(ii)

the average rent increase differential calculated in accordance with paragraph (2) for the year immediately preceding the relevant year, for that authority had a value which was zero or less than zero.

(6)

Where the relevant year is the year beginning on 1st April 2004—

(a)

paragraph (3)(a) shall have effect as if, for the words from “the proportion” to “the relevant year” there were substituted “equal to the value of G calculated for that authority for the purposes of paragraph 6.5.1 of the 2003-04 Determination;”; and

(b)

paragraph (5)(b)(ii) shall have effect as if, for the words from “average” to “relevant year” there were substituted “value of G calculated for the purposes of paragraph 6.5.1 of the 2003-04 Determination”.

(F27)

This article shall not apply in a case to which article 17 or 17A (subsidy in respect of temporary or short term accommodation) applies.

(8)

In this article—

  • “average” means the arithmetic mean;

  • “beneficiary” means a person who is entitled or likely to become entitled to a rebate;

  • “Category 1 dwellings” means dwellings rented out by the authority, on both the initial date and the final date, in respect of which, on the final date, the persons liable to pay such rent were in receipt of rebates;

  • “Category 2 dwellings” means dwellings rented out by the authority, on both the initial date and the final date, in respect of which, on the final date, the persons liable to pay such rent were not in receipt of rebates;

  • “2003-04 Determination” means the Housing Revenue Account Subsidy (Wales) Determination 2003-04;

  • “final date” means the last day of the relevant year;

  • “initial date” means the day before the first day of the relevant year; and

  • “rent” means either—

    1. (a)

      the payments specified in sub-paragraphs (a) to (i) in paragraph (1) of F3regulation 12 of the Housing Benefit Regulations or, as the case may be, regulation 12 of the Housing Benefit (State Pension Credit) Regulations (rent); or

    2. (b)

      the eligible rent,

    as the authority may determine, provided that wherever the expression “rent” occurs in paragraph (3) it has the same meaning throughout in relation to that authority.

Annotations

Textual amendments

F1

Art. 15A inserted (with effect in accordance with art. 1(2) of the commencing S.I.) by Income-related Benefits (Subsidy to Authorities) Amendment Order 2005 (S.I. 2005/369) , arts. 1(1) , 4(5)

F2

Art. 15A(7) substituted (1.4.2011) by Income-related Benefits (Subsidy to Authorities) (Temporary Accommodation) Amendment Order 2010 (S.I. 2010/2509), arts. 1, 2(4)

F3

Words in art. 15A(8) substituted (6.3.2006) by The Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006 (S.I. 2006/217) , reg. 1(1) , Sch. 2 para. 13(5) (with regs. 2 , 3 , Schs. 3 , Sch. 4 )