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1.—(1) This Order may be cited as the Income-related Benefits (Subsidy to Authorities) Amendment Order 2010 and comes into force on 26th November 2010.
(2) Article 2 has effect from 1st April 2008.
(3) Articles 3 and 4 have effect from 1st April 2009.
(4) Articles 5 and 6 have effect from 1st April 2010.
(5) In this Order, “the 1998 Order” means the Income-related Benefits (Subsidy to Authorities) Order 1998(1).
2. In Schedule 1(2) to the 1998 Order, in the second column, substitute the figures set out in the second column of the table in Schedule 1 to this Order, in respect of the authorities listed in the first column of that table.
3.—(1) Article 18(3) (additions to subsidy) of the 1998 Order is amended as follows.
(2) In paragraph (1) for “paragraphs (8) and (9)” substitute “paragraph (8)”.
(3) For paragraph (1)(e) substitute—
“(e)where, during the relevant year, it is discovered that any overpayments of relevant benefit have been made which were authority error overpayments or administrative delay overpayments, the following amounts—
(i)where the total of the authority error overpayments and administrative delay overpayments is less than or equal to 0.48% of the total specified subsidy, 100% of the total of those overpayments;
(ii)where the total of the authority error overpayments and administrative delay overpayments is greater than 0.48% but less than or equal to 0.54% of the total specified subsidy, 40% of the total of those overpayments; and
(iii)where the total of the authority error overpayments and administrative delay overpayments is greater than 0.54% of the total specified subsidy, nil.”.
(4) In paragraph (2) after sub-paragraph (c) add—
“or
(d)an administrative delay overpayment.”.
(5) For paragraph (5) substitute—
“(5) In paragraphs (1)(c) and (4A), and in article 19(1)(f), “fraudulent overpayment” means an overpayment in respect of a period falling wholly or partly after 31st March 1993 where the claimant has in respect of the overpayment—
(a)been found guilty of an offence whether under a statute or otherwise;
(b)made an admission after caution of deception or fraud for the purpose of obtaining relevant benefit; or
(c)agreed to pay a penalty under section 115A of the Act (penalty as an alternative to prosecution) and has not withdrawn that agreement.
(5A) In paragraph (5)(b) “admission after caution” means—
(a)in England and Wales, an admission after a caution has been administered in accordance with a Code issued under the Police and Criminal Evidence Act 1984(4);
(b)in Scotland, an admission after a caution has been administered, such admission being duly witnessed by two persons.”.
(6) After paragraph (6) insert—
“(6ZA) In paragraphs (1)(e) and (2)(d), “administrative delay overpayment” means an overpayment arising where—
(a)an authority is notified of a change of circumstances and has sufficient information and evidence to make a revision or supersession decision on an award;
(b)the authority does not make the decision before the next day on which the claimant’s benefit is paid or, in the case of council tax benefit, is allowed; and
(c)the delay was not—
(i)caused by a mistake, whether in the form of an act or omission, by an authority; or
(ii)caused or materially contributed to by the claimant, a person acting on the claimant’s behalf, or any other person to whom payment is made.”.
(7) In paragraph (12) after “(6)” insert “, (6ZA)”.
4. For Schedule 1(5) to the 1998 Order substitute the Schedule in Schedule 2 to this Order.
5.—(1) The 1998 Order is amended as follows.
(2) In article 13(1)(a)(6) (relevant benefit) for “and 17” substitute “, 17 and 17A”.
(3) In articles —
(a)15(7) (disproportionate rent increase); and
(b)15A(7)(7) (disproportionate rent increase – Wales),
for “(subsidy in respect of homeless and short lease rebate cases)” substitute “(subsidy in respect of temporary accommodation – non self-contained licensed accommodation and board and lodging accommodation) or article 17A (subsidy in respect of temporary accommodation – self-contained licensed accommodation and short lease accommodation)”.
(4) In article 17(8) (subsidy in respect of temporary accommodation – non self-contained licensed accommodation and board and lodging accommodation) and article 17A (subsidy in respect of temporary accommodation – self-contained licensed accommodation and short lease accommodation)—
(a)in paragraph (2)—
(i)for “the lower” substitute “the lowest”; and
(ii)after sub-paragraph (b) add—
“or
(c)subject to paragraph (3A), £500 where the dwelling is located in a broad rental market area listed in Schedule 8 (broad rental market areas in London) or £375 where the dwelling is located in any other broad rental market area.”; and
(b)after paragraph (3) insert—
“(3A) The Secretary of State may determine in any particular case that paragraph (2)(c)—
(a)does not apply; or
(b)applies as if for the figure of £500 or £375 there were substituted a higher figure.”.
(5) After Schedule 7 (authorities in London) add the Schedule in Schedule 3 to this Order.
6.—(1) Schedule 4A(9) (rent rebate limitation deductions (Housing Revenue Account dwellings)) is amended as follows.
(2) In paragraph 2 (liability to deduction), for sub-paragraphs (6) and (7) substitute—
“(6) The RPI figure referred to in Step 3 is 1.2551.
(7) The annual factor for 2010-11 is 0.1.”.
(3) In paragraph 3 (amount of deduction), for sub-paragraph (3) substitute—
“(3) The rebate proportion for each year commencing with 2010-11 is 0.761.”.
(4) For Part 3 (weekly rent limits for purposes of Part 2: Authorities in England) substitute Part 3 as set out in Schedule 4 to this Order.
(5) For Part 5 (amounts for purposes of Part 4, paragraph 4: Authorities in Wales) substitute Part 5 as set out in Schedule 5 to this Order.
Signed by authority of the Secretary of State for Work and Pensions.
Freud
Parliamentary Under-Secretary of State
Department for Work and Pensions
6th October 2010
We consent
Michael Fabricant
Angela Watkinson
Two of the Lords Commissioners of Her Majesty’s Treasury
11th October 2010
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