The Income-related Benefits (Subsidy to Authorities) Amendment Order 2015

Article 2(5)

SCHEDULE 2 Schedule to be inserted after Schedule 1 to the 1998 Order

Article 12(1)(c)

“SCHEDULE 1A Additional amount of subsidy: Activities to reduce fraud and error

Interpretation

1.— (1) In this Schedule—

“FERIS” means the Fraud and Error Reduction Incentive Scheme in the administration of housing benefit described in the Housing Benefit Circular HB A17/2014(1);

“participating authority” means an authority which notified the Secretary of State on or before 30th January 2015 that it is participating in FERIS;

“performance”, in relation to a period, means the amount by which payments of housing benefit by the participating authority are reduced in that period as a result of relevant activities;

“relevant activities” means activities carried out by a participating authority in order to reduce fraud and error in payments of housing benefit.

(2) A reference in this Schedule to the “administration subsidy” for a participating authority for a relevant year is—

(a) in relation to the relevant year beginning on 1st April 2014, a reference to the amount specified in relation to that authority in—

(i) the Annex to HB Subsidy Circular S8/2013 for authorities in Wales (2);

(ii) the Annex to HB Subsidy Circular S9/2013 for authorities in England (3);

(iii) the Annex to HB Subsidy Circular S10/2013 for authorities in Scotland (4);

(b) in relation to the relevant year beginning on 1st April 2015, a reference to the amount specified in relation to that authority in—

(i) the Annex to HB Subsidy Circular S6/2014 for authorities in Scotland (5);

(ii) the Annex to HB Subsidy Circular S7/2014 for authorities in Wales (6);

(iii) the Annex to HB Subsidy Circular S8/2014 for authorities in England (7).

Additional amount: relevant year beginning with 1st April 2014

2.— (1) This paragraph has effect for the purpose of determining the additional amount of subsidy payable under article 12(1)(c) for the relevant year beginning with 1st April 2014.

(2) If the performance of the participating authority in the performance period—

(a) does not exceed the baseline performance of the authority in that period; or

(b) exceeds the baseline performance of the authority in that period by less than 8 per cent.,

there is no additional amount.

(3) Otherwise, the additional amount is determined as follows.

Step 1

Calculate the percentage (“the out-performance percentage”) by which the performance of the authority exceeds its baseline performance in the performance period.

Step 2

Look up the percentage (“the additional amount percentage”) specified in column (2) of the following Table in the row applicable to the authority’s out-performance percentage.

Step 3

Multiply the additional amount percentage by the administration subsidy for the authority for the relevant year.

Table

Out performance percentage (1)	Additional amount percentage (2)
at least 8 per cent. but less than 10 per cent.	1.75 per cent.
at least 10 per cent. but less than 12 per cent.	2.1 per cent.
at least 12 per cent. but less than 14 per cent.	2.45 per cent.
at least 14 per cent. but less than 16 per cent.	2.8 per cent.
at least 16 per cent. but less than 18 per cent.	3.15 per cent.
at least 18 per cent.	3.5 per cent.

(4) In this paragraph, “performance period” means the period beginning with 1st December 2014 and ending with 31st March 2015.

(5) References in this paragraph to “the baseline performance” of the authority in the performance period are to the higher of the following amounts—

(a) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period beginning with 1st December 2013 and ending with 31st March 2014 were reduced as a result of relevant activities;

(b) the average of—

(i) the amount specified in paragraph (a); and

(ii) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period beginning with 1st December 2012 and ending with 31st March 2013 were reduced as a result of relevant activities.

Additional amount: relevant year beginning with 1st April 2015

3.— (1) This paragraph and paragraph 4 have effect for the purpose of determining the additional amount of subsidy payable under article 12(1)(c) for the relevant year beginning with 1st April 2015.

(2) The additional amount is determined as follows—

Step 1

Calculate the percentage (“the out-performance percentage”), if any, by which the performance of the authority exceeds its baseline performance in the performance period beginning with 1st April 2015.

Step 2

Look up the percentage (“the additional amount percentage”) specified in column (2) of the following Table in the row applicable to the authority’s out-performance percentage.

Step 3

Multiply the additional amount percentage by the enhanced administration subsidy.

Step 4

Repeat Steps 1 to 3 for each of the other performance periods.

Step 5

Add the amounts determined for each performance period under Step 3.

Step 6

Add the amount, if any, determined under paragraph 4.

Table

Out-performance percentage (1)	Additional amount percentage (2)
less than 10 per cent.	0 per cent.
at least 10 per cent. but less than 12 per cent.	1.25 per cent.
at least 12 per cent. but less than 14 per cent.	1.5 per cent.
at least 14 per cent. but less than 16 per cent.	1.75 per cent.
at least 16 per cent. but less than 18 per cent.	2 per cent.
at least 18 per cent. but less than 20 per cent.	2.25 per cent.
at least 20 per cent.	2.5 per cent.

(3) In this paragraph, “performance period” means the period of 3 months beginning with 1st April 2015, 1st July 2015, 1st October 2015 or 1st January 2016.

(4) In sub-paragraph (2), “enhanced administration subsidy” means 110 per cent. of the administration subsidy for the authority for the relevant year.

(5) References in this paragraph to “the baseline performance” of the authority in a performance period are to the amount determined in accordance with sub-paragraphs (6) to (9).

(6) For the performance period beginning with 1st April 2015 the baseline performance is the higher of the following amounts—

(a) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period of 3 months beginning with 1st April 2014 were reduced as a result of relevant activities;

(b) the average of—

(i) the amount specified in paragraph (a); and

(ii) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period of 3 months beginning with 1st April 2013 were reduced as a result of relevant activities.

(7) For the performance period beginning with 1st July 2015 the baseline performance is the higher of the following amounts—

(a) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period of 3 months beginning with 1st July 2014 were reduced as a result of relevant activities;

(b) the average of—

(i) the amount specified in paragraph (a); and

(ii) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period of 3 months beginning with 1st July 2013 were reduced as a result of relevant activities.

(8) For the performance period beginning with 1st October 2015 the baseline performance is the higher of the following amounts—

(a) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period of 3 months beginning with 1st October 2013 were reduced as a result of relevant activities;

(b) the average of—

(i) the amount specified in paragraph (a); and

(ii) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period of 3 months beginning with 1st October 2012 were reduced as a result of relevant activities.

(9) For the performance period beginning with 1st January 2016 the baseline performance is the higher of the following amounts—

(a) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period of 3 months beginning with 1st January 2014 were reduced as a result of relevant activities;

(b) the average of—

(i) the amount specified in paragraph (a); and

(ii) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period of 3 months beginning with 1st January 2013 were reduced as a result of relevant activities.

Additional amount: relevant year beginning with 1st April 2015: supplementary

4.— (1) If the performance of the participating authority in the extended performance period does not exceed the baseline performance of the authority in that period, the amount determined under this paragraph is nil.

(2) Otherwise, the amount under this paragraph is determined as follows—

Step 1

Calculate the percentage (“the out-performance percentage”) by which the performance of the authority exceeds its baseline performance in the extended performance period.

Step 2

Look up the calculation specified in column (2) of the following Table in the row applicable to the authority’s out-performance percentage and perform the calculation.

Step 3

Subtract from the amount calculated under Step 2 the sum of the amounts payable to the authority by virtue of—

(a) paragraph 2; and

(b) paragraph 3, disregarding any amount determined under this paragraph.

Table

Out-performance percentage (1)	Calculation (2)
less than 2 per cent.	the sum of 1.75 per cent. of the 2014/15 administration subsidy and 5 per cent. of the 2015/16 enhanced administration subsidy
at least 2 per cent. but less than 4 per cent.	the sum of 2.1 per cent. of the 2014/15 administration subsidy and 6 per cent. of the 2015/16 enhanced administration subsidy
at least 4 per cent. but less than 6 per cent.	the sum of 2.45 per cent. of the 2014/15 administration subsidy and 7 per cent. of the 2015/16 of the enhanced administration subsidy
at least 6 per cent. but less than 8 per cent.	the sum of 2.8 per cent. of the 2014/15 administration subsidy and 8 per cent. of the 2015/16 enhanced administration subsidy
at least 8 per cent. but less than 10 per cent.	the sum of 3.15 per cent. of the 2014/15 administration subsidy and 9 per cent. of the 2015/16 enhanced administration subsidy
at least 10 per cent.	the sum of 3.5 per cent. of the 2014/15 administration subsidy and 10 per cent. of the 2015/16 enhanced administration subsidy

(3) References in this paragraph to the “baseline performance” of the authority in the extended performance period are to the sum of—

(a) 108 per cent. of the baseline performance of the authority determined under paragraph 2(5);

(b) 110 per cent. of the baseline performance of the authority determined under paragraph 3(6);

(c) 110 per cent. of the baseline performance of the authority determined under paragraph 3(7);

(d) 110 per cent. of the baseline performance of the authority determined under paragraph 3(8); and

(e) 110 per cent. of the baseline performance of the authority determined under paragraph 3(9).

(4) In this paragraph—

“2014/15 administration subsidy” means the administration subsidy for the authority for the relevant year beginning with 1st April 2014;

“2015/16 enhanced administration subsidy” means 110 per cent. of the administration subsidy for the authority for the relevant year beginning with 1st April 2015;

“extended performance period” means the period beginning with 1st December 2014 and ending with 31st March 2016.”

(1)

https://www.gov.uk/government/collections/housing-benefit-for-local authorities-circulars-2014.

(2)

https://www.gov.uk/government/publications/hb-subsidy-circular-s82013-housing-benefit-subsidy-arrangements-2014-to-2015-for-welsh-authorities.

(3)

https://www.gov.uk/government/publications/hb-subsidy-circular-s92013-revised-administration-subsidy-arrangements-for-english-local-authorities-201415.

(4)

https://www.gov.uk/government/publications/hb-subsidy-circular-s102013-administration-costs-for-scottish-authorities-201415.

(5)

https://www.gov.uk/government/publications/hb-subsidy-circular-s62014-housing-benefit-administration-subsidy-arrangements-for-scottish-local-authorities-apr-2015-to-mar-2016.

(6)

https://www.gov.uk/government/publications/hb-subsidy-circular-s72014-housing-benefit-administration-subsidy-arrangements-for-welsh-local-authorities-apr-2015-to-mar-2016.

(7)

https://www.gov.uk/government/publications/hb-subsidy-circular-s82014-housing-benefit-administration-subsidy-arrangements-for-english-local-authorities-apr-2015-to-mar-2016.