The Housing Benefit and Community Charge Benefit (Subsidy) Order 1991

Disproportionate rent increase

6.—(1) Subject to paragraphs (5) and (6), where the average rent increase of an authority’s Category A tenants is greater than the average rent increase of their Category B tenants, for the purposes of article 4(1)(b)(ii), the appropriate amount for such part of the housing benefit qualifying expenditure as is attributable to rent rebates granted during the relevant year shall be 25 per cent of that portion of the housing benefit qualifying expenditure as is determined in accordance with paragraph (3).

(2) For the purposes of paragraph (1), the average rent increase shall be determined by comparing the average rent of Category A tenants or, as the case may be, Category B tenants on the first relevant date with their average rent on the second relevant date.

(3) For the purposes of paragraph (1), the portion of the housing benefit qualifying expenditure shall be determined in accordance with the formula—

Where—

• A is the total of rent rebates granted by the authority to Category A tenants and other tenants during the relevant year but shall not include any amount of expenditure attributable to rebates awarded in respect of amounts paid under section 35(2)(b) of the Housing (Scotland) Act 1987(1) for accommodation which is board and lodging accomodation;

• B is the amount calculated in accordance with the formula—

  

• C is the amount calculated in accordance with the formula—

  

• D is the average rent for Category B tenants on the second relevant date;

• E is the average rent for Category B tenants on the first relevant date;

• F is the average rent for Category A tenants on the second relevant date;

• G is the average rent for Category A tenants on the first relevant date.

(4) In this article—

“average” means the arithmetic mean;

“Category A tenants” means tenants of the authority who on the first and second relevant dates are in receipt of rent rebates and reside at the same address on both dates, but shall not include a person required to pay an amount to an authority under section 35(2)(b) of the Housing (Scotland) Act 1987 for accommodation which is board and lodging accommodation;

“Category B tenants” means tenants of the authority who are not in receipt of rent rebates on the first and second relevant dates but reside at the same address on both dates, but shall not include a person required to pay an amount to an authority under section 35(2)(b) of the Housing (Scotland) Act 1987 for accommodation which is board and lodging accommodation;

“first relevant date” means a date, other than a day falling in a rent free period, determined by the authority occurring in March 1989; and

“second relevant date” means the same date occurring in March 1991 but if that date falls in a rent free period the nearest date in March 1991 to that date which is not in a rent free period;

“rent” means either—

(a)

the payments specified in sub-paragraphs (a) to (j) in paragraph (1) of regulation 10 of the Housing Benefit Regulations (rent); or

(b)

the eligible rent,

as the authority may determine, provided that wherever the expression “rent” occurs in paragraphs (1) to (3) it has the same meaning throughout.

(5) This article shall not apply in a case to which article 9 applies.

(6) In England and Wales this article shall only apply to rent rebate expenditure granted by new town corporations and the Development Board for Rural Wales.

(1)

1987 c. 26.