PART IIICALCULATION OF SUBSIDY
Disproportionate rent increase
15.—(1) Except where paragraph (5), (6) or (7) applies, in the case of an authority in Scotland, whose average rent increase differential, as calculated in accordance with paragraph (2) (“the proportion”), has a value greater than zero, the deduction from qualifying expenditure specified in article 11(2)(a) shall be the proportion multiplied by the sum calculated for that authority in accordance with paragraph (4).
(2) The average rent increase differential for each authority shall be calculated by applying the formula—
where
A, B, C, D and E each has the value determined in accordance with paragraph (3).
(3) For the purposes of paragraph (2)—
(a)the value of A shall be the proportion calculated for that authority pursuant to paragraphs (3) and (4) of—
(i)in relation to the relevant year commencing on 1st April 1997, article 6 of the 1997 Order, or
(ii)in relation to a relevant year commencing on or after 1st April 1998, this article of this Order for the year immediately preceding the relevant year;
(b)the value of B shall be the average rent charged by the authority in respect of Category 1 dwellings on the final date;
(c)the value of C shall be the average rent charged by the authority in respect of Category 1 dwellings on the initial date;
(d)the value of D shall be the average rent charged by the authority in respect of Category 2 dwellings on the initial date; and
(e)the value of E shall be the average rent charged by the authority in respect of Category 2 dwellings on the final date.
(4) The sum referred to in paragraph (1) shall be that part of qualifying expenditure attributable to rebates granted during the relevant year before any deduction by reason of this article, but less any part of such expenditure to which article 13(1)(b)(ii) applies.
(5) Subject to paragraph (6), this article shall not apply in the case of an authority—
(a)which has—
(i)set the rent for the relevant year according to the type, condition, class or description of the dwellings and the services, facilities or rights provided to the tenants, where that rent is reasonable having regard to those matters;
(ii)not taken account of whether a tenant was a beneficiary when setting rents for the relevant year, and
(iii)not let dwellings, either in the relevant year or in either of the two previous years, to beneficiaries irrespective of their housing needs;
or
(b)where—
(i)any increases in rent between the initial date and 1st April in the following year were of the same percentage and applied on the same day to all tenants irrespective of whether they were beneficiaries, and
(ii)the average rent increase differential calculated in accordance with—
(aa)in relation to the relevant year commencing on 1st April 1997, article 6 of the 1997 Order; or
(bb)in relation to a relevant year commencing on or after 1st April 1998, this article of this Order for the year immediately preceding the relevant year,
for that authority had a value which was zero or less than zero.
(6) In the case of a new authority, sub-paragraph (a)(iii) of paragraph (5) shall be modified so that, in relation to the relevant year commencing on 1st April 1997, for the words “or in either of the two previous years” there shall be substituted the words “or in the previous year”.
(7) This article shall not apply in a case to which article 17 (subsidy in respect of homeless and short lease rebate cases) applies.
(8) In this article (and, in the case of the meaning ascribed to the word “beneficiary”, also in article 19(2))—
“average” means the arithmetic mean;
“beneficiary” means a person who is entitled or likely to become entitled to a rebate;
“Category 1 dwellings” means dwellings rented out by the authority, on both the initial date and the final date, in respect of which, on the final date, the persons liable to pay such rent were in receipt of rebates;
“Category 2 dwellings” means dwellings rented out by the authority, on both the initial date and the final date, in respect of which, on the final date, the persons liable to pay such rent were not in receipt of rebates;
“final date” means the last day of the relevant year;
“initial date” means the day before the relevant year; and
“rent” means either—
the payments specified in sub-paragraphs (a) to (j) in paragraph (1) of regulation 10 of the Housing Benefit Regulations (rent)(1); or
the eligible rent,
as the authority may determine, provided that wherever the expression “rent” occurs in paragraph (3) it has the same meaning throughout in relation to that authority.
Regulation 10(1) was amended by S.I. 1988/1971.