PART III CALCULATION OF SUBSIDY

Interpretation of Part III11

1

In this Part, unless the context otherwise requires—

  • “allowance" means a rent allowance;

  • F51“appeal tribunal” has the meaning it bears in section 39(1) of the Social Security Act 1998;

  • “board and lodging accommodation" means—

    1. a

      accommodation provided for a charge which is inclusive of the provision of that accommodation and at least some cooked or prepared meals which are both cooked or prepared and consumed in that accommodation or associated premises; or

    2. b

      accommodation provided in a hotel, guest house, lodging house or some similar establishment,

    but it does not include accommodation in a residential care home or nursing home within the meaning of regulation 19(3) of the Income Support (General) Regulations 1987 M1 nor in a hostel within the meaning of F43regulation 14 of the Housing Benefit Regulations or, as the case may be, regulation 14 of the Housing Benefit (State Pension Credit) Regulations;

  • F52“Commissioner” has the meaning it bears in section 39(1) of the Social Security Act 1998;

  • F113...

  • F94“the Consequential Provisions Regulations” means the Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006;

  • F140...

  • F140...

  • F44“the Housing Benefit Regulations” means the Housing Benefit Regulations 2006;

  • F45“the Housing Benefit (State Pension Credit) Regulations” means the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006;

  • “overpayment" includes F114... F141... overpayments under the Housing Benefit Regulations and any reference in this Order to “overpayment" in relation to any of the previous Orders shall bear the meaning it has in this Order;

  • F140...

  • “rebate" means a rent rebate F22... M2;

  • “the Rent Officers Order" means the Rent Officers (Housing Benefits Functions) Order 1997 M3 or the Rent Officers (Housing Benefits Functions) (Scotland) Order 1997 M4, as the case may be;

  • “the Rent Officers Order 1995" means the Rent Officers (Additional Functions) Order 1995 M5 or the Rent Officers (Additional Functions) (Scotland) Order 1995 M6, as the case may be;

  • “scheme" means the housing benefit scheme F142... as prescribed under section 123(1) of the Social Security F1Contributions and Benefits Act 1992;

and other expressions used in this Part and in F46the Housing Benefit Regulations F139or the Housing Benefit (State Pension Credit) Regulations, as the case may be, shall have the same meanings in this Part as they have in those Regulations.

2

In this Part

“qualifying expenditure" means, in relation to an authority, the total of F143housing benefit, including any payments under F47regulation 93 of the Housing Benefit Regulations F48and regulation 74 of the Housing Benefit (State Pension Credit) Regulations (payments on account of a rent allowance) M7 and any extended payments, lawfully paid F53or treated as lawfully paid under paragraph (3) by the authority during the relevant year, less—

  1. a

    the deduction, if any, calculated for that authority in article 15 F30or 15A;

  2. b

    any deductions specified in article 19 relevant to that authority, and

  3. c

    where, under F144section 134(8) (arrangements for housing benefit) of the Act, the authority has modified any part of a scheme it administers, any amount by which the total of F143housing benefit paid under that scheme during the relevant year by it exceeds the total it would have paid if the scheme had not been so modified.

F493

An amount of F145housing benefit which—

a

would fall to be paid in the relevant year for a period in a preceding year; and

b

is not paid by virtue of F50regulation 98 or 102 of the Housing Benefit Regulations or, as the case may be, regulation 79 or 83 of the Housing Benefit (State Pension Credit) Regulations (offsetting and method of recovery) on the ground that an overpayment of benefit was made in that preceding year for that period,

shall be treated as lawfully paid in the relevant year for that period.

Amount of subsidy12

F1151

Subject to paragraph (2), the amount of an authority’s subsidy for the relevant year is the sum of the following—

a

the amount of subsidy calculated in accordance with article 13;

b

for an authority identified in column (1) of Schedule 1 (sums to be used in the calculation of subsidy), the amount in respect of the costs of administering the F147housing benefit specified in column (2) of that Schedule for that authority;

F137bza

the additional amount specified by Schedule 1ZB (additional amount of subsidy: verify earnings and pension alerts service); and

F146bzb

any additional amount specified by Schedule1ZC (additional amount of subsidy: Housing Benefit Award Accuracy Initiative);

F138ba

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F134c

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d

for an authority which has modified any part of a scheme it administers in recognition of the operation of a local scheme under section 134(8) of the Act (arrangements for housing benefit), the additional amount calculated in accordance with paragraph (4).

F1022

Subject to paragraph (3), any sum paid after 1st April 1997 by way of subsidy in respect of an overpayment of F148housing benefit shall be deducted from any amount of subsidy which would otherwise fall to be paid in respect of any payment of benefit which is treated, in accordance with paragraph 11(3), as made for the same period as that overpayment.

3

A deduction shall not be made under paragraph (2) where the sum already paid by way of subsidy is greater than the amount which would fall to be paid.

F314

For the purposes of sub-paragraph F116(1)(d), 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 F149housing benefit paid under the scheme.

F151Housing benefit13

F21

F117The amount of subsidy payable under article 12(1)(a) shall F10 ... be—

a

in the case of any authority to which none of articles 14, 16F65, 17F77, 17A, 17B and 17C applies, an amount equal to F152100 per cent. of its qualifying expenditure attributable to expenditure in respect of housing benefit.

b

in the case of any authority to which at least one of those articles applies an amount equal to the aggregate of—

i

F32100 per cent. of so much of its qualifying expenditure attributable to expenditure in respect of housing benefit as remains after deducting from that expenditure the amount of expenditure attributable to housing benefit to which each of those articles which is relevant applies; F153and

F154ii

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

iii

the appropriate amount calculated F155... under each such article,

plus, in each case, the additions, where applicable, under F24F60article 18 but subject, in each case, to the deductions, where applicable, under articles 20 and 20A.

F112

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F333

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Backdated benefit14

1

Subject to F106paragraphs (2) and (3), where—

a

during the relevant year an authority has, under F54regulation 83(12) of the Housing Benefit Regulations or, as the case may be, regulation 64(13) of the Housing Benefit (State Pension Credit) RegulationsF156... (time and manner of claiming) M8, treated any claim as made on a day earlier than that on which it is made; and

b

any part of that authority’s qualifying expenditure is attributable to such earlier period,

for the purposes of F5article 13(1)(b)(iii), the appropriate amount for the relevant year in respect of such part shall be F34100 per cent. of the qualifying expenditure so attributable.

2

This article shall not apply in F25in relation to expenditure to which F64article 17(2), 17A(2)F78, 17B(2), 17C(2) or 18(1)(b)(iii) or paragraph 6 of Schedule 4 applies.

F1573

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disproportionate rent increase15

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—

(1+A)×(BC×DE)-1math

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 F6article 13(1)(b)(iii) 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 ”.

F797

This article shall not apply in a case to which article 17 or 17A (subsidy in respect of temporary or short term accommodation) 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—

    1. a

      the payments specified in F55sub-paragraphs (a) to (j) in paragraph (1) of regulation 12 of the Housing Benefit Regulations or, as the case may be, sub-paragraphs (a) to (j) in paragraph (1) of regulation 12 of the Housing Benefit (State Pension Credit) Regulations; or

    2. b

      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.

F23Disproportionate rent increase – Wales15A

1

Subject to paragraphs (5) to (7), in the case of an authority in Wales 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 that paragraph 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)(iii) applies.

5

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 paragraph (2) for the year immediately preceding the relevant year, for that authority had a value which was zero or less than zero.

6

Where the relevant year is the year beginning on 1st April 2004—

a

paragraph (3)(a) shall have effect as if, for the words from “the proportion” to “the relevant year” there were substituted “equal to the value of G calculated for that authority for the purposes of paragraph 6.5.1 of the 2003-04 Determination;”; and

b

paragraph (5)(b)(ii) shall have effect as if, for the words from “average” to “relevant year” there were substituted “value of G calculated for the purposes of paragraph 6.5.1 of the 2003-04 Determination”.

F807

This article shall not apply in a case to which article 17 or 17A (subsidy in respect of temporary or short term accommodation) applies.

8

In this article—

  • “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;

  • “2003-04 Determination” means the Housing Revenue Account Subsidy (Wales) Determination 2003-04;

  • “final date” means the last day of the relevant year;

  • “initial date” means the day before the first day of the relevant year; and

  • “rent” means either—

    1. a

      the payments specified in sub-paragraphs (a) to (i) in paragraph (1) of F56regulation 12 of the Housing Benefit Regulations or, as the case may be, regulation 12 of the Housing Benefit (State Pension Credit) Regulations (rent); or

    2. b

      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.

Treatment of high rents in rent allowance cases16

1

Except in a case to which article 14 (backdated benefit)F81, 17B or 17C (subsidy in respect of accommodation provided by a registered housing association as temporary or short term accommodation) applies, and subject to paragraphs (2), F35... and (4) and to article 23 (transitional provisions in relation to rent officer determinations), this article applies in a rent allowance case and, where this article applies, the appropriate amount, for the purposes of F7article 13(1)(b)(iii), shall be calculated in accordance with Part II of Schedule 4.

2

This article shall not apply where a dwelling is an excluded tenancy by virtue of -

F57a

paragraph 1 and any of paragraphs 3 to 11 of Schedule 2 to the Housing Benefit Regulations (excluded tenancies); or

b

paragraph 1 and any of paragraphs 3 to 11 of Schedule 2 to the Housing Benefit (State Pension Credit) Regulations (excluded tenancies)

F363

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

This article shall not apply in a case where a maximum rent has been determined, except where—

F158a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F95b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

F58regulation 13(14) of the Housing Benefit Regulations or, as the case may be, regulation 13(14) of the Housing Benefit (State Pension Credit) Regulations (no maximum rent for first 13 weeks) applies, when the appropriate amount shall be calculated in respect of the first 13 weeks in accordance with paragraph 15 of Schedule 4.

5

Expressions used in this article and in Schedule 4 have the same meanings in this article as they have in that Schedule.

F63F82Subsidy in respect of non self-contained licensed accommodation, and board and lodging accommodation, provided by an authority as temporary or short term accommodation17

1

F83This article applies where—

a

a rent rebate is payable by an authority;

b

a person (“P”) is required to pay the authority for—

i

board and lodging accommodation; or

ii

accommodation which is not self-contained and which the authority has a right to use under an agreement, other than a lease, with a third party; and

c

the authority makes the accommodation available to P—

i

to discharge any of its functions under Part 3 of the Housing Act 1985, Part 7 of the Housing Act 1996F131, Part 2 of the Housing (Wales) Act 2014 or Part 2 of the Housing (Scotland) Act 1987, as the case may be; or

ii

to prevent P being or becoming homeless within the meaning of Part 7 of the Housing Act 1996F132, Part 2 of the Housing (Wales) Act 2014 or Part 2 of the Housing (Scotland) Act 1987F133, as the case may be .

2

Where this article applies the appropriate amount is F66the lowest of—

a

the amount of housing benefit entitlement in a week or part week, as the case may be; or

b

the maximum amount determined in accordance with paragraph (3); F67or

c

F84 ... £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.

3

The maximum amount referred to in paragraph (2) is the local housing allowance for January F852011 for the category specified in paragraph 1(1)(b) of Schedule 3B to the Rent Officers Order which is applicable to the broad rental market area in which the accommodation is situated.

F86 3A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

For the purposes of this article and F87articles 17A, 17B and 17C, accommodation is self-contained if P’s household is not required to share one or more of the following with another household—

a

a kitchen;

b

a toilet;

c

a bathroom.

5

In this article and F88articles 17A, 17B and 17C—

  • “broad rental market area” has the meaning specified in paragraph 4 of Schedule 3B to the Rent Officers Order; and

  • “local housing allowance” means an allowance determined in accordance with paragraph 2 of Schedule 3B to the Rent Officers Order.

F89Subsidy in respect of self-contained licensed accommodation, and leased accommodation, provided by an authority as temporary or short term accommodation17A

F901

This article applies where—

a

a rent rebate is payable by an authority;

b

a person (“P”) is required to pay the authority—

i

for self-contained accommodation which the authority has a right to use under an agreement, other than a lease, with a third party;

ii

in England, for accommodation outside that authority’s Housing Revenue Account which the authority holds on a lease granted for a term not exceeding 10 years; or

iii

in Wales and Scotland, for accommodation which the authority holds on a lease; and

c

the authority makes the accommodation available to P—

i

to discharge any of its functions under Part 3 of the Housing Act 1985, Part 7 of the Housing Act 1996F128, Part 2 of the Housing (Wales) Act 2014 or Part 2 of the Housing (Scotland) Act 1987, as the case may be; or

ii

to prevent P being or becoming homeless within the meaning of Part 7 of the Housing Act 1996F129, Part 2 of the Housing (Wales) Act 2014 or Part 2 of the Housing (Scotland) Act 1987F130, as the case may be .

2

Where this article applies, the appropriate amount is F68the lowest of—

a

the amount of housing benefit entitlement in a week or part week, as the case may be; or

b

the maximum amount determined in accordance with paragraph (3); F69or

c

F91 ..., £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.

3

F135The maximum amount referred to in paragraph (2) is 90% of the local housing allowance for January 2011 for the category specified in paragraphs 1(1)(b) to (f) of Schedule 3B to the Rent Officers Order (as in force on 1st January 2011) which applies to the accommodation and is applicable to the broad rental market area in which the accommodation is situated.

F92 3A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

F93For the purposes of determining the applicable local housing allowance in paragraph (3)—

a

for accommodation which is not self-contained, the applicable local housing allowance is the local housing allowance specified in paragraph 1(1)(b) of Schedule 3B to the Rent Officers Order; and

b

for accommodation which is self-contained—

i

where the total number of rooms suitable for living in and bedrooms in the accommodation is between two and five, at least one of those rooms is to be treated as a room suitable for living in; and

ii

where the total number of rooms suitable for living in and bedrooms in the accommodation is six or more, at least two of those rooms are to be treated as rooms suitable for living in.

F76Subsidy in respect of non self-contained licensed accommodation, and board and lodging accommodation, made available by a registered housing association as temporary or short term accommodation17B

1

This article applies where—

a

a rent allowance is payable by an authority;

b

a person (“P”) is required to pay a registered housing association for—

i

board and lodging accommodation; or

ii

accommodation which is not self-contained and which the registered housing association has a right to use under an agreement, other than a lease, with a third party; and

c

the registered housing association makes the accommodation available to P in pursuance of arrangements made with it by the authority—

i

to discharge any of the authority’s functions under Part 3 of the Housing Act 1985, Part 7 of the Housing Act 1996F122, Part 2 of the Housing (Wales) Act 2014 or Part 2 of the Housing (Scotland) Act 1987, as the case may be; or

ii

to prevent P being or becoming homeless within the meaning of Part 7 of the Housing Act 1996F123, Part 2 of the Housing (Wales) Act 2014 or Part 2 of the Housing (Scotland) Act 1987F124, as the case may be; F100and

d

the accommodation is not exempt accommodation within the meaning given by paragraph 4(10) of Schedule 3 (transitional and savings provisions) to the Consequential Provisions Regulations.

2

Where this article applies the appropriate amount is the lowest of—

a

the amount of housing benefit entitlement in a week or part week, as the case may be;

b

the maximum amount determined in accordance with paragraph (3); or

c

£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.

3

The maximum amount referred to in paragraph (2) is the local housing allowance for January 2011 for the category specified in paragraph 1(1)(b) of Schedule 3B to the Rent Officers Order which is applicable to the broad rental market area in which the accommodation is situated.

Subsidy in respect of self-contained accommodation, or owned or leased accommodation, made available by a registered housing association as temporary or short term accommodation17C

1

This article applies where—

a

a rent allowance is payable by an authority; and

b

a person (“P”) is required to pay a registered housing association for—

i

accommodation which is not self-contained and which the registered housing association owns or holds on a lease; or

ii

accommodation which is self-contained; and

c

the registered housing association makes the accommodation available to P in pursuance of arrangements made with it by the authority—

i

to discharge any of the authority’s functions under Part 3 of the Housing Act 1985, Part 7 of the Housing Act 1996F125, Part 2 of the Housing (Wales) Act 2014 or Part 2 of the Housing (Scotland) Act 1987, as the case may be; or

ii

to prevent P being or becoming homeless within the meaning of Part 7 of the Housing Act 1996F126, Part 2 of the Housing (Wales) Act 2014 or Part 2 of the Housing (Scotland) Act 1987F127, as the case may be; F101and

d

the accommodation is not exempt accommodation within the meaning given by paragraph 4(10) of Schedule 3 (transitional and savings provisions) to the Consequential Provisions Regulations.

2

Where this article applies the appropriate amount is the lowest of—

a

the amount of housing benefit entitlement in a week or part week, as the case may be;

b

the maximum amount determined in accordance with paragraph (3); or

c

£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.

F1363

The maximum amount referred to in paragraph (2) is 90% of the local housing allowance for January 2011 for the category specified in paragraphs 1(1)(b) to (f) of Schedule 3B to the Rent Officers Order (as in force on 1st January 2011) which applies to the accommodation and is applicable to the broad rental market area in which the accommodation is situated.

4

For the purposes of determining the applicable local housing allowance in paragraph (3)—

a

for accommodation which is not self-contained, the applicable local housing allowance is the local housing allowance specified in paragraph 1(1)(b) of Schedule 3B to the Rent Officers Order; and

b

for accommodation which is self-contained—

i

where the total number of rooms suitable for living in and bedrooms in the accommodation is between two and five, at least one of those rooms is to be treated as a room suitable for living in; and

ii

where the total number of rooms suitable for living in and bedrooms in the accommodation is six or more, at least two of those rooms are to be treated as rooms suitable for living in.

Additions to subsidy18

1

Subject to F70paragraph (8), the additions referred to in article 13(1) are—

a

where following the loss, destruction or non-receipt, or alleged loss, destruction or non-receipt of original instruments of payment of F169housing benefit, an authority makes duplicate payments and the original instruments have been or are subsequently encashed, an amount equal to 25 per cent. of the amount of the duplicate payments;

F3b

subject to paragraphs (2) and (3), where, during the relevant year, it is discovered that an overpayment of F120... F159housing benefit has been made and an amount is to be deducted under article 19 in relation to that overpayment, an amount equal to—

i

in the case of a departmental error overpayment F161..., F37100 per cent. of so much of the overpayment as has not been recovered by the authority;

F162ii

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12 iia

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

iii

F14except where F160head (i) above applies, 40 per cent. of the overpayment;

F13 iv

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

where, during the relevant year, it is discovered that an overpayment in respect of which a deduction was made under article 11 or 19 of the 1994 Order, the 1995 Order, the 1996 Order or the 1997 Order (other than a deduction under article 11(1)(g) or 19(1)(c) of the 1994 Order or 11(1)(f) or 19(1)(c) of the 1995, 1996 or 1997 Orders) or, in respect of a year earlier than the relevant year, under article 19 (other than a deduction under article 19(1)(f)), as the case may be, was a fraudulent overpayment, the amount, if any, by which F15... F840 per cent. of any such overpayment exceeds the amount of any subsidy that has been paid in respect of that overpayment;

F16d

where, during the relevant year, it is discovered that an overpayment in respect of which a deduction was made—

i

under article 19 (other than a deduction under article 19(1)(ea)); and

ii

in respect of a year which begins after 31st March 2001 and which is earlier than the relevant year,

was a claimant error overpayment, the amount, if any, by which 40 per cent. of any such overpayment exceeds the amount of any subsidy that has been paid in respect of that overpayment.

F71e

where, during the relevant year, it is discovered that any overpayments of F163housing benefit have been made which were authority error overpayments or administrative delay overpayments, the following amounts—

i

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.

F96f

where, during the relevant year, it is discovered that an overpayment in respect of which a deduction was made under article 19 (deductions made in calculating subsidy) was a payment on account overpayment, 100 per cent. of so much of the overpayment as has not been recovered by the authority.

2

The amount under paragraph (1)(b) shall not include an amount in relation to—

a

an authority error overpayment;

b

any technical overpayment; or

F97c

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F72d

an administrative delay overpayment;F98or

e

a payment on account overpayment.

3

In the case of a departmental error overpayment, where some or all of that overpayment is recovered by the authority, no addition shall be applicable to the authority in respect of the amount so recovered.

F1054

In paragraphs (1)(b)(i) and (3) and in article 19(1)(e), “departmental error overpayment” means F26an overpayment of a kind to which paragraph (4ZA) F107or (4ZB) applies or an overpayment caused by a mistake made, whether in the form of an act or omission—

F104a

by an officer of the Department for Work and Pensions F17or of the Inland Revenue, acting as such, or a person providing services to that Department F18or to the Inland Revenue;

b

in a decision of an appeal tribunal or a Commissioner,

where the claimant, a person acting on his behalf or any other person to whom the payment is made did not cause or materially contribute to that mistake but excludes any mistake of law which is shown to have been an error only by virtue of a subsequent decision of a Commissioner or a court.

F274ZA

This paragraph applies to an overpayment where—

a

the overpayment was made during the period beginning with 5th April 2003 and ending with 13th June 2003 (“the specified period”);

b

the overpayment would, but for paragraph (4), fall to be regarded as an authority error overpayment on the ground that it was made as a result of a failure by the authority to take account of information about the amount of any tax credit payable to the claimant; and

c

the Secretary of State is satisfied that the authority took reasonable steps to avoid making overpayments of the kind described in sub-paragraph (b) during the specified period.

F1084ZB

This paragraph applies to an overpayment where—

a

during the period beginning on 9th April 2012 and ending on 19th April 2012 (the “specified period”) an authority received a notification through the Automated Transfers to Local Authority System used by the Department for Work and Pensions to provide award data to relevant authorities in respect of a claimant (“the notification”);

b

the notification received during the specified period was sufficient to require an authority to make a revision or supersession decision on a claimant’s award;

c

the authority failed to make a revision or supersession decision on the basis of the notification received during the specified period before the next day on which the claimant’s benefit was paid;

d

the authority’s failure to make a revision or supersession decision before the next day on which the claimant’s benefit was paid resulted in the overpayment; and

e

the authority made a revision or supersession decision on the claimant’s award, based on the notification received during the specified period, on or before 10th July 2012.

F94A

In paragraph F19(1)(d) and in article 19(1)(ea), “claimant error overpayment” means an overpayment F28which—

F170a

is caused by the claimant, or a person acting on the claimant’s behalf under regulation 82 of the Housing Benefit Regulations (who may claim housing benefit), failing to provide information in accordance with regulation 83, 86 or 88 of, or paragraph 5 of Schedule A1 to, those Regulations (duties on claimant to provide information); and

b

is not a fraudulent overpayment.

F735

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 F167housing 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;

b

in Scotland, an admission after a caution has been administered, such admission being duly witnessed by two persons.

F1036

F38In paragraphs (1)(e) and (2)(a), “authority error overpayment” means an overpayment caused by a mistake made, whether in the form of an act or omission, by an authority where the claimant, a person acting on his behalf or any other person to whom the payment is made did not cause or materially contribute to that mistake but excludes any mistake of law which is shown to have been an error only by virtue of a subsequent decision of a court.

F746ZA

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 F168...; F109 ...

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 madeF110; and

F111d

paragraph (4ZB) is not applicable.

F1196ZB

For the purposes of paragraphs (1)(e) and (2), an “authority error overpayment” or an “administrative delay overpayment” does not include an overpayment of a kind to which paragraphs (6ZC) or (6ZD) apply.

6ZC

This paragraph applies to an overpayment where—

a

an authority receives real time information in respect of the overpayment which indicates that the overpayment was caused by the incorrect declaration of PAYE employment income or PAYE pension income by the claimant; and

b

the authority—

i

has sufficient real time information to make a revision or supersession decision on the claimant’s award; and

ii

makes a revision or supersession decision during the period of 4 weeks beginning with the date on which the authority received the real time information.

6ZD

This paragraph applies to an overpayment where—

a

an authority receives real time information in respect of the overpayment which indicates that the overpayment was caused by the incorrect declaration of PAYE employment income or PAYE pension income by the claimant;

b

the authority has insufficient real time information to make a revision or supersession decision;

c

the authority requests further information from the claimant; and

d

the authority makes a revision or supersession decision either—

i

if the additional information is provided during the period of 4 weeks beginning with the date on which the authority received the real time information (“the 4 week period”), by the end of that 4 week period; or

ii

if the additional information is provided after the 4 week period has ended, by the Monday following the date on which the additional information is received.

6ZE

For the purposes of paragraphs (6ZC) and (6ZD)—

  • “ PAYE employment income” has the meaning in section 683(2) of the Income Tax (Earnings and Pensions) Act 2003;

  • “ PAYE pension income” has the meaning in section 683(3) of the Income Tax (Earnings and Pensions) Act 2003;

  • “real time information” means information which is reported by a Real Time Information employer or Real Time Information pension payer in respect of the PAYE employment income or PAYE pension income of its employees;

  • “Real Time Information employer” has the meaning in regulation 2A(1) of the Income Tax (Pay As You Earn) Regulations 2003;

  • “Real Time Information pension payer” has the meaning in regulation 2B(1) of the Income Tax (Pay As You Earn) Regulations 2003.

F396A

In paragraph (1)(e), “total specified subsidy” means the total amount of housing benefit F164... that attracts 100 per cent subsidy for the relevant year, including any subsidy paid pursuant to article 14.

F997

Subject to paragraph (7A), in paragraph (2)(b) “technical overpayment” means an overpayment which occurs as a result of F150a rebate being awarded and entitlement to that rebate being reduced or eliminated because, subsequent to that award, the liability in respect of which the rebate was awarded was reduced or eliminated.

7A

A technical overpayment does not include any part of the overpayment occurring—

a

in a case to which paragraph (7)(a) applies, before the day on which the liability was reduced or eliminated; or

b

in a case to which paragraph (7)(b) applies, before the day on which the authority suspended, revised or superseded the award, whichever is earliest.

7B

In paragraphs (1)(f) and (2)(e), “payment on account overpayment” means an amount paid on account under regulation 93 of the Housing Benefit Regulations or regulation 74 of the Housing Benefit (State Pension Credit) Regulations (payment on account of a rent allowance) which is in excess of the entitlement to housing benefit as subsequently decided.

8

Except for F4paragraphs (1)(b)(iii), (1)(c) and (5), this article shall not apply to that part of any F121... F165housing benefit in respect of a case to which F59paragraph (12) of regulation 83 of the Housing Benefit RegulationsF166applies.

F409

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6110

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F61F41 11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

Where, during the relevant year, an overpayment that has been classified as an overpayment under one of paragraphs (4), (4ZA) F112, (4ZB) (4A), (5), (6)F75, (6ZA) 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.

Deductions to be made in calculating subsidy19

1

The deductions referred to in article 11(2)(b) are, subject to paragraph (4), to be of the following amounts where—

a

subject to paragraphs (2) and (3), a tenant of an authority, who is in receipt of a rebate while continuing to occupy, or when entering into occupation of a dwelling as his home, either under his existing tenancy agreement or by entering into a new tenancy agreement—

i

is during, or was at any time prior to, the relevant year able to choose whether or not to be provided with any services, facilities or rights (“improvements") and chooses or chose to be so provided;

ii

is during, or was at any time prior to, the relevant year, able to choose either to be provided with any improvements or, whether or not in return for an award or grant from the authority, to provide such improvements for himself; or

iii

would be able during, or would have been able at any time prior to, the relevant year to exercise the choice set out in head (i) or (ii) of this sub-paragraph if he were not or had not at that time been in receipt of a rebate,

the amounts attributed during the relevant year to such improvements whether they are or would be expressed as part of the sum fixed as rent, otherwise reserved as rent or expressed as an award or grant from the authority;

b

during the relevant year a person becomes entitled to a rent-free period which has not been, or does not fall to be, taken into account in calculating the amount of rebate to which he is entitled under the Housing Benefit Regulations, the amount of rebate which is or was payable to him in respect of such rent-free period;

c

during the relevant year an award in the form of a payment of money or monies worth, a credit to the person’s rent account or in some other form is made by an authority to one of its tenants in receipt of a rebate, whether or not the person is immediately entitled to the award, the amount or value of the award, but no such deduction shall be made in respect of an award—

i

made to a tenant for a reason unrelated to the fact that he is a tenant;

ii

made under a statutory obligation;

iii

made under section 137 of the Local Government Act 1972 M9 or section 83 of the Local Government (Scotland) Act 1973 M10 (power of local authorities to incur expenditure for certain purposes not otherwise authorised);

iv

except where sub-paragraph (a)(ii) applies, made as reasonable compensation for reasonable repairs or redecoration the tenant has, or has caused to be, carried out whether for payment or not and which the authority would otherwise have carried out or have been required to carry out; or

v

of a reasonable amount made as compensation for loss, damage or inconvenience of a kind which occurs only exceptionally and which was suffered by the tenant by virtue of his occupation of his home;

F42d

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

e

during the relevant year an amount is recovered in relation to a departmental error overpayment, within the meaning of article 18(4), the amount so recovered, in a case where the overpayment had occurred and been discovered in a year earlier than the relevant year;

F20ea

during the relevant year a claimant error overpayment, within the meaning of article 18(4A), is identified, the amount of the overpayment, but only to the extent that the amount of the overpayment or any part of it has not been deducted from qualifying expenditure under article 11(2);

f

during the relevant year a fraudulent overpayment, within the meaning of article 18(5), is identified, the amount of the overpayment, but only to the extent that the amount of overpayment or any part of it has not been deducted from qualifying expenditure under article 4 or 19 of the 1994 Order, the 1995 Order, the 1996 Order or the 1997 Order or article 11(2), as the case may be;

g

subject to sub-paragraphs (e)F21, (ea) and (f), during the relevant year it is discovered that an overpayment of F171housing benefit has been made, the amount of such overpayment, but only to the extent that—

i

the amount of such overpayment or any part of it has not been deducted from qualifying expenditure under article 3 of the 1989 Order or the 1990 Order or under article 4 or 15 of the 1991 Order or articles 4 or 16 of the 1992 Order or the 1993 Order or articles 4 or 19 of respectively the 1994 Order, the 1995 Order, the 1996 Order or the 1997 Order, or article 11(2), as the case may be; and

ii

the amount of the overpayment or any part of it does not include an amount to which F172paragraph (18) of regulation 59 of the Housing Benefit (Community Charge Rebates) (Scotland) Regulations 1988 or paragraph (12) of regulation 83 of the Housing Benefit Regulations (time and manner in which claims are to be made), as the case may be, applied;

h

during the relevant year any instrument of payment of F173housing benefit issued by an authority during that year is returned to that authority without being presented for payment or is found by that authority to have passed its date of validity without being presented for payment, the amount of any such instrument;

i

during the relevant year an amount is recovered in respect of which subsidy was paid pursuant to paragraph 6(2) of Schedule 6 to the 1996 Order or the 1997 Order or paragraph 11(2) of Schedule 4 (subsidy on payments on account), the amount so recovered, where the payment on account was made in a year earlier than the relevant year.

2

Subject to paragraph (3), no deduction shall be made under sub-paragraph (1)(a) where the eligible rent for a tenant has been increased in a case to which that sub-paragraph would apply, but—

a

any such services, facilities or rights (“improvements")—

i

relate solely to the physical needs of the property in question or the needs of that tenant; and

ii

the increased rent in relation to such improvements is reasonable;

b

the tenant was eligible whether or not he was a beneficiary; and

c

the authority has not let properties, to which they intend to make improvements, either in the relevant year or in the two years preceding that year, solely or largely to beneficiaries.

3

In paragraph (2)—

a

“beneficiary" has the meaning it is given by article 15(8); and

b

in a case to which article 24 applies, sub-paragraph (c) shall have effect as modified by article 24(2).

4

Where in relation to any amount of a rebate or allowance a deduction falls to be made under two or more of the sub-paragraphs of paragraph (1), as the case may be, only the higher or highest, or, where the amounts are equal, only one amount, shall be deducted.

Deduction from subsidy20

Where, during the relevant year, it is found by an authority that any instrument of payment issued by it as payment of F174housing benefitF118... on or after 1st April 1988, but before the relevant year, has been returned to that authority without having been presented for payment or has passed its date of validity without having been presented for payment, the deduction referred to in article 13(1) shall be the amount of any subsidy that has been paid in respect of that instrument.

F175Deductions from subsidy for rebate for dwellings within the Housing Revenue Account: authorities in Wales20A

1

Paragraph (2) applies in relation to an authority in Wales.

2

Where paragraph 2 of Schedule 4A applies, the deduction from subsidy referred to in article 13(1) shall be calculated in accordance with paragraph 3 of that Schedule.

Additions to and deductions from subsidy in respect of benefit savingsF6221

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .