The Income-related Benefits (Subsidy to Authorities) Order 1998

Articles 13 and 21

SCHEDULE 5 BENEFIT SAVINGS

General and interpretation

1.—(1) The additions to or deductions from subsidy referred to in articles 13 and 21 shall be calculated in accordance with this Schedule.

(2) In this Schedule, unless the context otherwise requires—

• A is equal to

  (B + C) × 32,

  where—

  • B is the total sum of benefit savings made by an authority; and

  • C is the total sum of benefit-related savings made by an authority;

• D is the sum specified in column (6) of Schedule 1 (Benefits Savings Threshold) for an authority identified in column (1) of that Schedule;

• E is 0.75 of the value of D;

• F is twice the value of D;

• G is thrice the value of D;

• “authorised person” means—

  (i)

  an officer of an authority; or

  (ii)

  an employee of an authority’s contractor,

  who has been designated by that authority for the investigation of fraud;

• “benefit savings” means, in a case where an award of benefit had—

  (a)

  been made before an intervention and a fraudulent overpayment has arisen; or

  (b)

  been made before the intervention, but no overpayment of relevant benefit can be determined by the authority by reason of paragraphs 10 of Schedule 3, 4 of Schedule 4 or 5 of Schedule 5 to the Housing Benefit Regulations or paragraphs 10 of Schedule 3, 4 of Schedule 4 or 5 of Schedule 5 to the Council Tax Benefit Regulations (income and capital to be disregarded) where a person is in receipt of income support or an income-based jobseeker’s allowance(1), as the case may be, pending the determination of an adjudication officer; or

  (c)

  not been made before the intervention,

  any amount, which would—

  (i)

  but for the intervention, have been paid by way of relevant benefit to a claimant during a benefit week; and

  (ii)

  had it been paid as relevant benefit, have been a fraudulent overpayment (or in a case within paragraph (a) above, have also been a fraudulent overpayment), within the meaning of article 18(5),

  or, in a case where only a proportion of that non-payment was due to the intervention, the amount shall be that proportion;

• “benefit-related savings” means—

  (i)

  where benefit savings have been established and the investigation that led to those savings has also led to a determination by an adjudication officer that no designated benefit, or less designated benefit is payable to a claimant, any specified amount of designated benefit that would, but for that intervention and consequent determination, have been paid to that claimant; and

  (ii)

  where the benefit savings were less than the total relevant benefit not paid, the benefit-related savings shall be an amount determined by applying to the total of designated benefit not paid a percentage equal to the percentage which those benefit savings bear to the total relevant benefit not paid;

• “designated benefit” means income support, incapacity benefit, jobseeker’s allowance, retirement pension, severe disablement allowance and widow’s pension, in a case where a claimant was, prior to the intervention, also being paid relevant benefit;

• “intervention” means an investigation and intervention of one or more authorised persons whilst involved in the investigation of fraud and not in the performance of any other duty; and

• “specified amount”, in relation to a claimant, means—

  (i)

  where the benefit is income support, the amount payable in respect of a benefit week within the meaning prescribed therefor in regulation 2(1) of the Income Support (General) Regulations 1987(2);

  (ii)

  where the benefit is incapacity benefit or severe disablement allowance, half of the fortnightly payment in arrears by which such benefit is to be paid, pursuant to regulation 24(1) of the Social Security (Claims and Payments) Regulations 1987(3) or, in a case where that regulation does not apply, would be so paid if that regulation did apply;

  (iii)

  where the benefit is jobseeker’s allowance, the amount payable in respect of a benefit week within the meaning prescribed therefor in regulation 2(1) of the Jobseeker’s Allowance Regulations 1996(4);

  (iv)

  where the benefit is retirement pension or widow’s pension, the amount payable in respect of the week in advance in which such benefit is to be paid, pursuant to regulation 22(1) of the Social Security (Claims and Payments) Regulations 1987(5) or, in a case where that regulation does not apply, would be so paid if that regulation did apply.

Addition to subsidy

2.—(1) Subject to sub-paragraphs (2) and (3), in the case of an authority where A is greater than D, the addition for that authority shall be 25 per cent. of the sum by which A exceeds D.

(2) Subject to sub-paragraph (3), in the case of an authority where A is greater than F, the addition for that authority shall be the sum calculated for that authority in sub-paragraph (1), plus 5 per cent. of the sum by which A exceeds F.

(3) In the case of an authority where A is greater than G, the addition for that authority shall be the sum calculated for that authority in sub-paragraphs (1) and (2), plus 10 per cent. of the sum by which A exceeds G.

No addition or deduction

3.  In the case of an authority where—

(a) A is the same as or is less than D; and

(b) A is also the same as or exceeds E, or where, by reason of paragraph 4(2), paragraph 4(1) does not apply,

there shall be no addition or deduction under this Schedule for that authority.

Deduction from subsidy

4.—(1) Subject to sub-paragraph (2), in the case of an authority where A is less than E, the deduction for that authority shall be the sum by which A is less than E.

(2) Sub-paragraph (1) shall not apply in a case where the value of D for an authority is less than £60,000.

(1)

These paragraphs were all amended by S.I. 1996/1510.

(2)

S.I. 1987/1967; the definition of “benefit week” was added by S.I. 1988/1445.

(3)

S.I. 1987/1968; regulation 24 was substituted by regulation 9 of S.I. 1994/2943.

(4)

S.I. 1996/207; the definition of “benefit week” was amended by S.I. 1996/1517 and 2538.

(5)

The relevant amendments are S.I. 1991/2741 and 1994/3196.