The Housing Benefit (Implementation Subsidy) Order 1987

Article 2

SCHEDULE CALCULATION OF THE SUBSIDY

1.  Subject to paragraph 4 below the amount of subsidy payable to any authority shall be calculated as an amount equal to—

(a) the estimate of the implementation costs of that authority; or

(b) the sum which, in the case of that authority, is appropriate under paragraph 3 below;

whichever is the less.

2.  For the purposes of paragraphs 3 and 4 below for each authority there shall be calculated a proportionate assessment, based on its estimates for the relevant financial year of its administration costs and of the number of recipients of housing benefit in its area, in accordance with the formula—

where—

• A is the amount of that estimate of administration costs;

• B is the total amount of the estimates of administration costs for that year submitted by all authorities;

• C is the number of recipients in that estimate of the number of recipients of housing benefit;

• D is the total number of such recipients in the estimates for that year of the number of such recipients submitted by all authorities.

3.  Where the proportionate assessment calculated for any authority is of an amount specified in any paragraph of column (1) of the Table below, the sum which for the purposes of paragraph 1(b) above is appropriate in the case of that authority is the sum specified opposite in column (2) or, as the case may be, a sum calculated as specified there.

Table

(1)	(2)
Proportionate Assessment	Sum
(i) £5,000 or less	£5,000
(ii) More than £5,000 but not more than £20,000	£20,000
(iii) More than £20,000 but not more than £200,000	110% of the proportionate assessment rounded down to the nearest pound
(iv) More than £200,000	£220,000 and 15.3% of the amount, rounded down to the nearest pound, by which the proportionate assessment exceeds £200,000

4.  The amount of subsidy payable to any authority which has not submitted an estimate of its implementation costs shall—

(a) if the proportionate assessment calculated for that authority is not more than £20,000, be calculated as an amount equal to the sum specified in column (2) of the Table in paragraph 3 above opposite paragraph (i) or (ii), as the case may be, of column (1);

(b) if the proportionate assessment calculated for that authority is more than £20,000, be calculated as an amount equal, subject to rounding down to the nearest £1,000—

(i) to the proportionate assessment, if it is not more than £50,000;

(ii) in any other case, to the aggregate of the sums arrived at by calculating in respect of each portion of that assessment specified in column (1) of the Table below the percentage specified opposite to it in column (2).

Table

(1)	(2)
Portion of the Proportionate Assessment	Percentage
The first £50,000	100%
Any excess over £50,000 not exceeding £75,000	80%
Any excess over £75,000 not exceeding £100,000	60%
Any excess over £100,000 not exceeding £150,000	40%
Any excess over £150,000 not exceeding £200,000	20%
Any excess over £200,000	10%