Explanatory note

(This note is not part of the Order)

This Order makes provision for the coming into force of the following provisions in the Welfare Reform Act 2007 (“the Act”)—

(a)

section 30(1) of the Act (local housing allowance);

(b)

section 30(2) of the Act (insertion of section 130A (appropriate maximum housing benefit) into the Social Security Contributions and Benefits Act 1992 (“the Contributions and Benefits Act”);

(c)

section 30(3) of the Act (amendment of paragraph 4 of Schedule 7 to the Child Support, Pensions and Social Security Act 2000 (housing benefit and council tax benefit: revisions and appeals);

(d)

section 35(1) to (3) of the Act (information relating to housing benefit);

(e)

section 40 and paragraph 12 of Schedule 5 to the Act (minor and consequential amendments relating to Part 2) so far as it relates to the amendment of section 122(5) of the Housing Act 1996 (“the Housing Act”); and

(f)

section 67 and Schedule 8 to the Act (repeals), in so far as it relates to the repeal of—

(i)

section 130(4) of the Contributions and Benefits Act (housing benefit);

(ii)

section 5(3) of the Social Security Administration Act 1992 (“the Administration Act”) (power to make regulations about information or evidence required by rent officer);

(iii)

section 122(3) of the Housing Act (functions of rent officers in connection with housing benefit and rent allowance subsidy);

(iv)

in section 122(5)(b) of the Housing Act, the words “or regulations”; and

(v)

paragraph 3(2) of Schedule 13 to the Housing Act (housing benefit and related matters: consequential amendments).

The current powers will be repealed on 7 April 2008, except to the extent that they are saved by Articles 3 to 5 of the Commencement Order.

Article 3 saves section 130(4) of the Contributions and Benefits Act and sections 122(3) and (5) of the Housing Act for certain purposes. It also saves regulations made under those provisions for certain periods, subject to specified exceptions and to the provisions in Article 4 relating to extended payments. Once those regulations cease to have effect in any particular case, regulations made under the new powers in section 30 of the Act will apply to those cases.

Under Article 3—

(a)

for cases in which reference was made to maximum rent (standard local rate) (known as local housing allowance cases) immediately before 7th April 2008 (or a claim in such a case is treated as made before that date), the period in relation to which the regulations will apply is until 7th April 2008. This is to ensure that regulations made under section 130(4) of the Contributions and Benefits Act will continue to apply for the period up to 7th April 2008, even where decisions relating to that period are made after that date; and

(b)

for non-local housing allowance cases, the move to the new powers will be staggered. In any particular case regulations made under section 130(4) of the Contributions and Benefits Act will continue to apply until the relevant date for that case or such later date if the claim was made (or treated as made) before the relevant date for that case. Any remaining non-local housing allowance cases which have not already transferred to regulations under the new powers will do so on 6th April 2009.

Article 4 provides that regulations made under section 130(4) of the Contributions and Benefits Act which relate to extended payments will continue to apply until 6th October 2008 or such later date as is provided in that article.

Article 5 provides that regulations made under both section 5(1)(h) and 5(3) of the Administration Act will continue to apply for all purposes which relate to requiring persons to furnish information or evidence to a rent officer in relation to an award of housing benefit for any period before 7th April 2008.

A full regulatory impact assessment has not been published for this instrument as it has no direct impact on the costs of businesses, charities and the voluntary sector.