The Income-related Benefits (Subsidy to Authorities) Amendment Order 2006

Amendment of Part III of the principal Order

3.—(1) Part III of the principal Order (calculation of subsidy) shall be amended in accordance with the following paragraphs.

(2) In article 11 (interpretation of Part III) —

(a) in paragraph (1) omit the definition of “X percent”; and

(b) in paragraph (2) in the definition of “qualifying expenditure”, after the words “article 15” insert “or 15A”.

(3) In article 12 (amount of subsidy)—

(a) for sub-paragraph (1)(b) substitute—

“(b) for the purposes of section 140B(4A)(a) of the Act (subsidy in respect of costs of administering relevant benefits) shall include, for an authority identified in column (1) of Schedule 1, the sum specified in column (2) of the Schedule for that authority; and

(c) shall include an additional amount calculated in accordance with paragraph (4), if the authority has modified any part of a scheme it administers in recognition of the operation of a local scheme under sections 134(8) (arrangements for housing benefit) or 139(6) (arrangements for council tax benefit) of the Act(1).”; and

(b) after paragraph (3) insert—

“(4) For the purposes of sub-paragraph (1)(c), the additional amount will be 0.2 per cent of the amount or total of amounts calculated in accordance with article 13 but will not exceed 75 per cent of the cost of the total of relevant benefit paid under the scheme.”.

(4) In article 13 (relevant benefit)—

(a) in heads (1)(a)(i) and (1)(b)(i) for “95 per cent” substitute “100 per cent”;

(b) in heads (1)(a)(ii) and (1)(b)(ii) for “X per cent” substitute “100 per cent”; and

(c) omit paragraph (3).

(5) In article 14 (backdated benefit) —

(a) in sub-paragraph (1)(b) for “50 per cent” substitute “100 per cent”.

(6) In article 16 (treatment of high rents in rent allowance cases)—

(a) in paragraph (1) omit “(3)”;

(b) in paragraph (2) for “paragraphs 3, 10, 11 or 11A” substitute “paragraphs 3 and 5 to 11A”; and

(c) omit paragraph (3).

(7) In article 17 (subsidy in respect of homeless and short lease rebate cases) —

(a) In paragraphs (2) and (3) for “95 per cent” substitute “100 per cent, wherever it occurs; and

(b) omit paragraph (7).

(8) In article 18 (additions to subsidy) —

(a) in head (1)(b)(i) for “95 per cent” substitute “100 per cent”;

(b) in head (1)(b)(ii) for “X per cent” substitute “100 per cent”;

(c) in paragraph (1) after sub-paragraph (d), insert—

“(e) where, during the relevant year, it is discovered that an overpayment in respect of which a deduction is to be made under article 19 is an authority error overpayment, where the proportion of total authority error overpayments as a percentage of the total specified subsidy is —

(aa) less than or equal to 0.48 per cent, the addition shall be 100 per cent of the total authority error overpayment;

(bb) greater than 0.48 per cent but less than or equal to 0.54 per cent, the addition shall be 40 per cent of the total authority error overpayment; and

(cc) greater than 0.54 per cent, the addition shall be nil.”;

(d) in paragraph (5) for “112(1)” substitute “112”;

(e) in paragraph (6) for “In paragraph (2)(a),” substitute “In paragraphs (1)(e) and (2)(a)”;

(f) after paragraph (6), insert—

“(6A) In paragraph (1)(e), “total specified subsidy” means the total amount of housing benefit and council tax benefit that attracts 100 per cent subsidy for the relevant year, including any subsidy paid pursuant to article 14.”.

(g) omit paragraph (9); and

(h) after paragraph (10), insert—

“(11) Where the addition payable under this article would be greater than a sum equivalent to the appropriate amount under article 17(2)(b)(i), (2)(b)(ii) and (3)(b)(ii) had the expenditure been qualifying expenditure, then the addition will be a sum equivalent to the appropriate amount.

(12) Where, during the relevant year, an overpayment that has been classified as an overpayment under one of paragraphs (4), (4ZA) (4A), (5), (6) or (7) is reclassified, the addition referred to in article 13(1) shall be the amount payable under paragraph (1) for the final classification of the overpayment.”.

(9) In article 19 (deductions to be made in calculating subsidy) omit sub-paragraph (1)(d).

(10) In article 21 (additions to subsidy in respect of security against fraud and error)—

(a) in sub-paragraph (1)(a) for “Circulars specified in paragraph (2)” substitute “Housing Benefit and Council Tax Benefit Security Manual and Circular HB/CTB F10/2004”;

(b) in sub-paragraph (1)(b) for the words “those Circulars”, wherever they occur, substitute “the Housing Benefit and Council Tax Benefit Security Manual and Circular HB/CTB F10/2004”; and

(c) omit paragraph (2).

(1)

A relevant amendment was made by Schedule 9 of the Local Government Finance Act (c.14).