The Income-related Benefits (Subsidy to Authorities) Amendment Order 2011

Citation, commencement and interpretation

1.—(1) This Order may be cited as the Income-related Benefits (Subsidy to Authorities) Amendment Order 2011 and comes into force on 1st February 2012.

(2) Articles 2 and 3 have effect from 1st April 2010.

(3) Articles 4 to 6 have effect from 1st April 2011.

(4) In this Order “the 1998 Order” means the Income-related Benefits (Subsidy to Authorities) Order 1998(1).

Amendment of Parts 2 and 4 of the 1998 Order having effect from 1st April 2010

2.—(1) In Part 2 (claims for and payment of subsidy) of the 1998 Order—

(a) in article 4(2) (requirement of claim) omit paragraphs (4) and (4ZA);

(b) in article 9(2)(3) (payment of subsidy for the relevant year)—

(i) at the end of sub-paragraph (a) insert “and”; and

(ii) omit sub-paragraphs (c) and (d).

(c) omit article 9A(4) (transitional protection adjustments).

(2) In Part 4 (transitional and savings) of the 1998 Order omit article 22 (provisions for claims for 1997/98).

Substitution of Schedule 1 to the 1998 Order having effect from 1st April 2010

3.  For Schedule 1(5) (sums to be used in the calculation of subsidy) to the 1998 Order substitute the Schedule in Schedule 1 to this Order.

Amendment of Part 3 of the 1998 Order having effect from 1st April 2011

4.—(1) Part 3 (calculation of subsidy) of the 1998 Order is amended as follows.

(2) In article 11(1) (interpretation of Part 3) after the definition of “the Community Charge Benefits Regulations” insert—

““the Consequential Provisions Regulations” means the Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006(6);”.

(3) In article 16(7) (treatment of high rents in rent allowance cases) omit paragraph (4)(b).

(4) In article 17A(8) (subsidy in respect of self-contained licensed accommodation, and leased accommodation, provided by an authority as temporary or short term accommodation), in paragraph (3)(a) after “Order” insert “(as in force on 1st January 2011)”.

(5) In article 17B(9) (subsidy 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 accommodation) at the end of paragraph (1) add—

• “and

(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.”.

(6) In article 17C (subsidy in respect of self-contained accommodation, or owned or leased accommodation, made available by a registered housing association as temporary or short term accommodation)—

(a) at the end of paragraph (1) add—

• “and

(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.”; and

(b) in paragraph (3)(a) after “Order” insert “(as in force on 1st January 2011)”.

(7) In article 18(10) (additions to subsidy)—

(a) at the end of paragraph (1) add—

“(f) 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.”;

(b) in paragraph (2)—

(i) omit sub-paragraph (c); and

(ii) after sub-paragraph (d) add—

• “or

(e) a payment on account overpayment.”;

(c) for paragraph (7) substitute—

“(7) Subject to paragraph (7A), in paragraph (2)(b) “technical overpayment” means an overpayment which occurs as a result of—

(a) a rebate or council tax benefit being awarded and entitlement to that rebate or benefit being reduced or eliminated because, subsequent to that award, the liability in respect of which the rebate or benefit was awarded was reduced or eliminated; or

(b) council tax benefit being awarded and entitlement to that benefit being reduced or eliminated because, subsequent to that award, there was a change of circumstances that does not fall within paragraph (a).

(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.”.

Amendment of Schedule 4 to the 1998 Order having effect from 1st April 2011

5.—(1) Part 2 of Schedule 4(11) (high rents and rent allowance) to the 1998 Order is amended as follows.

(2) In paragraph 2 for “paragraph 6, 7, 8, 9 or 11” substitute “paragraph 6, 7, 8 or 9”.

(3) Omit paragraph 11.

Amendment of Schedule 4A to the 1998 Order having effect from 1st April 2011

6.—(1) Schedule 4A(12) (rent rebate limitation deductions (Housing Revenue Account dwellings)) to the 1998 Order is amended as follows.

(2) In Part 1 (interpretation) in paragraph 1 omit the definitions of “RPI figure” and “service charge”.

(3) In Part 2 (England) in paragraph 2 (liability to deduction)—

(a) for sub-paragraph (2) substitute—

“(2) The subsidy limitation rent for an authority is equal to the average weekly rent for a dwelling for the authority for the relevant year, calculated in accordance with sub-paragraph (3).”;

(b) omit sub-paragraph (4);

(c) in sub-paragraphs (5) and (8) for “sub-paragraphs (3) and (4)” substitute “sub-paragraph (3)”;

(d) omit sub-paragraphs (6) and (7).

(4) For Part 3 (weekly rent limits for purposes of Part 2: Authorities in England) substitute Part 3 as set out in Schedule 2 to this Order.

(5) For Part 5 (amounts for purposes of Part 4, paragraph 4: Authorities in Wales) substitute Part 5 as set out in Schedule 3 to this Order.

Signed by authority of the Secretary of State for Work and Pensions.

Freud

Parliamentary Under-Secretary of State,

Department for Work and Pensions

8th December 2011

We consent

Angela Watkinson

Jeremy Wright

Two of the Lords Commissioners of Her Majesty’s Treasury

7th December 2011