The Income-related Benefits (Subsidy to Authorities) Order 1998

PART II CLAIMS FOR AND PAYMENT OF SUBSIDY

Interpretation of Parts II and IV

2.  In this Part and also in Part IV, unless the context otherwise requires—

• “benefit savings” and “benefit-related savings” have the same meanings as are assigned to them by paragraph 1 of Schedule 5;

• “claim” means an initial claim, mid-year claim, final claim or a return pursuant to article 4(4), as the case may be;

• “claim form” means the form supplied by the Secretary of State pursuant to article 4(2)(a), (b) or (c) or (4), as the case may be;

• “initial claim” means a claim for subsidy pursuant to article 4(2)(a);

• “final claim” means a claim for subsidy pursuant to article 4(2)(c);

• “mid-year claim” means a claim for subsidy pursuant to article 4(2)(b);

• “final subsidy” means any subsidy which is not interim subsidy;

• “interim subsidy” means subsidy pursuant to articles 6(4), 7(2), 8(1) or 9(4), as the case may be;

• “the form” means a printed document or any other format upon which a claim may be set out, or any combination of such formats or alternative formats, as the Secretary of State determines; and

• “the relevant office” means such office as may be designated by the Secretary of State.

Conditions for payment of subsidy

3.  Subject to articles 9(3) and 10, no final subsidy shall be paid unless the conditions specified in the following provisions of this Part have been complied with.

Requirement of claim

4.—(1) The first condition is that subsidy shall be claimed in accordance with the provisions of and in the manner specified by this article.

(2) There shall be submitted by an authority to the Secretary of State, at the relevant office, on the form supplied by him to that authority, the following claims for subsidy, by reference to the amount of relevant benefit that that authority—

(a) estimates it will pay during the relevant year, by 1st March in the year preceding the relevant year;

(b) estimates it has up to that time and will by the end of that relevant year have paid, by 31st August in the relevant year;

(c) has paid in the relevant year, by 30th September in the following year.

(3) The final claim shall be copied to the authority’s auditor, by 30th September in the following year.

(4) In addition to the above claims, each authority shall submit to the Secretary of State at the relevant office, on the form supplied by him to that authority, the following returns—

(a) on the 15th day (“the return date”) of each of July, October and January of the relevant year, details of the benefit savings and benefit-related savings in the relevant year that that authority has achieved by the end of the month immediately preceding the return date; and

(b) on the 15th April in the following year, details of the benefit savings and benefit-related savings that that authority achieved in the relevant year.

(5) All claims and returns submitted by an authority consequent upon this article shall be signed—

(a) in the case of an authority in England or Wales, by the officer who is responsible for finance pursuant to section 151 of the Local Government Act 1972(1);

(b) in the case of an authority in Scotland, by the proper officer pursuant to section 95 of the Local Government (Scotland) Act 1973(2).

Requirement to keep records and provide information

5.  The second condition is that the authority submitting a claim shall—

(a) provide to the Secretary of State such information, including any information required by or consequent upon the claim form; and

(b) keep and, where the Secretary of State requires it or it is otherwise appropriate to do so, produce records with a bearing on that claim,

as the Secretary of State so requires, or as may otherwise be necessary, to satisfy him that—

(i) that claim is full, accurate and properly calculated; and

(ii) any subsidy claimed or paid for the relevant year or that has been claimed or paid in accordance with the provisions of this Order or the 1989 Order, the Housing Benefit (Subsidy) Order 1990 (S.I. 1990/785), the Housing Benefit and Community Charge Benefit (Subsidy) Order 1991 (S.I. 1991/587), the Housing Benefit and Community Charge Benefit (Subsidy) Order 1992 (S.I. 1992/739), the Housing Benefit and Community Charge Benefit (Subsidy) (No.2) Order 1993 (S.I. 1993/935), the Housing Benefit and Council Tax Benefit (Subsidy) Order 1994 (S.I. 1994/523), the Housing Benefit and Council Tax Benefit (Subsidy) Order 1995 (S.I. 1995/872), the Housing Benefit and Council Tax Benefit (Subsidy) Order 1996 (S.I. 1996/1217) and the Housing Benefit and Council Tax Benefit (Subsidy) Order 1997 (S.I. 1997/1004)">previous Orders, as the case may be, in relation to any earlier year was properly so paid or claimed.

Requirement of audit

6.—(1) Subject to article 9(4), the third condition is that the authority

(a) shall procure that their final claim is audited by the authority’s auditor by 31st December in the following year; and

(b) shall comply with the following provisions of this article.

(2) The authority shall—

(a) provide such information; and

(b) keep and, where asked to do so, produce records with a bearing on its claim,

as may be required by the auditor or as may be otherwise required to enable that authority to show and its auditor to check, that—

(i) that claim is properly calculated, and

(ii) the relevant benefit in respect of which subsidy is claimed has been properly paid.

(3) Until the authority’s auditor has certified on the claim form that he is satisfied that—

(a) the final claim is properly calculated; and

(b) the relevant benefit in respect of which subsidy is claimed has been properly paid,

no final subsidy shall be paid.

Final condition for the payment of subsidy

7.  Subject to article 9(4), the fourth condition is that an authority shall satisfy the Secretary of State that its claim—

(a) is true and complete;

(b) is supported and, if appropriate, supplemented by all the information the Secretary of State requires; and

(c) fairly represents the expenditure in relation to relevant benefit incurred or likely to be incurred, as the case may be, by the authority in the relevant year.

In year instalments of subsidy

8.—(1) Where an authority has submitted, by the due date—

(a) the initial claim, mid-year claim and the returns under article 4(4), as the case may be, in accordance with the requirements of this Part; and

(b) the conditions of this Part in relation to such claims have been complied with,

the Secretary of State shall pay each month, to each such authority that has submitted such claims as are by that date due, instalments of subsidy, in accordance with paragraph (2).

(2) The instalments payable by way of interim subsidy to an authority under paragraph (1) shall be such amounts as the Secretary of State considers appropriate in the circumstances of the case, but the total amount of such instalments paid in the relevant year shall not exceed the amount which, in his estimation, is likely to be payable by way of final subsidy, taking account of any withholding, reducing or deducting of subsidy by him, following the submission and audit of that authority’s final claim.

Payment of subsidy for the relevant year

9.—(1) Subject to paragraphs (2) and (3) and to any subsidy withheld, reduced or deducted in accordance with sections 140B(4) or 140C(3), as the case may be, where he is satisfied that—

(a) the authority has submitted its final claim;

(b) the auditor has audited and certified that claim; and

(c) the conditions of this Part have been complied with,

the Secretary of State shall pay to that authority final subsidy calculated in accordance with Part III.

(2) In determining the amount payable pursuant to paragraph (1) the Secretary of State shall take into account any interim subsidy paid during or in respect of the relevant year and any payment pursuant to this article shall only be in respect of the balance of subsidy due after the deduction of such interim subsidy paid.

(3) The Secretary of State may pay subsidy under paragraph (1) once that submission, audit or certification, as the case may be, has occurred, despite it occuring after the time required in this Part.

(4) In a case where the third or fourth condition, as the case may be, are not met in relation to any authority, the Secretary of State may pay such amount of subsidy as he is satisfied will be due when that condition is met.

Estimating subsidy

10.  If an authority has not, at the time specified in articles 4 or 6(1), as the case may be, complied with any condition specified in this Part, the Secretary of State may estimate the amount of any subsidy, including any interim subsidy, payable to that authority and he may employ for that purpose such criteria as he considers relevant.

(1)

1972 c. 70.

(2)

1973 c. 65.