The Income-related Benefits (Subsidy to Authorities) and Discretionary Housing Payments (Grants) Amendment Order 2021

PART 1 PRELIMINARY

Citation, commencement and extent

1.—(1) This Order may be cited as the Income-related Benefits (Subsidy to Authorities) and Discretionary Housing Payments (Grants) Amendment Order 2021 and comes into force on 31st October 2021.

(2) Any amendment made by this Order has the same extent as the provision amended.

PART 2 AMENDMENT OF THE INCOME-RELATED BENEFITS (SUBSIDY TO AUTHORITIES) ORDER 1998

Amendment of the Income-related Benefits (Subsidy to Authorities) Order 1998 and effect of amendments

2.—(1) The Income-related Benefits (Subsidy to Authorities) Order 1998(1) is amended in accordance with the following provisions of this Part.

(2) Articles 3 and 4 and Schedules 1 and 2 have effect for the purpose of determining subsidy payable for the relevant year(2) beginning with 1st April 2020.

(3) In relation to article 5—

(a) paragraph (1) has effect from 1st April 2020;

(b) paragraph (2) has effect for the purpose of determining subsidy payable for the relevant year beginning with 1st April 2020;

(c) paragraph (3) has effect for the purpose of determining subsidy payable for the relevant year beginning with 1st April 2021,

and Schedules 3 and 4 have effect accordingly.

(4) Article 6 has effect for the purpose of determining subsidy payable for the relevant year beginning with 1st April 2021.

(5) In paragraphs (2), (3) and (4), “relevant year” means the year in respect of which a claim for subsidy is made.

The amount of an authority’s subsidy

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

Housing Benefit Award Accuracy Initiative

4.—(1) In article 12, after paragraph (1)(bza) insert—

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

(2) After Schedule 1ZB, insert the Schedule 1ZC set out in Schedule 2 to this Order.

Rent rebate deductions from the subsidy of an authority in Wales

5.—(1) For article 20A substitute—

“Deductions from subsidy for rebate for dwellings within the Housing Revenue Account: authorities in Wales

20A.— (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.”.

(2) For Schedule 4A, substitute the Schedule 4A set out in Schedule 3 to this Order.

(3) In the substituted Schedule 4A—

(a) for paragraph 3(2) substitute—

“(2) The rebate proportion for the purposes of sub-paragraph (1) for the relevant year beginning with 1st April 2021 is 0.682.”;

(b) in paragraph 4—

(i) for “2020” substitute “2021”;

(ii) for the Table, substitute the Table set out in Schedule 4 to this Order.

Additional amount of subsidy: Verify Earnings and Pension Alerts Service

6.  In Schedule 1ZB (additional amount of subsidy: Verify Earnings and Pension Alerts Service) for paragraph 2 substitute—

“Additional amount: relevant year beginning with 1st April 2021

2.   The additional amount of subsidy for an authority for the relevant year beginning with 1st April 2021 is the amount specified for that authority in the Housing Benefit Circular HB S6/2021 published by the Department for Work and Pensions on 19th April 2021(3).”.

Minor amendments

7.  Schedule 5 to this Order (which makes minor amendments) has effect.

PART 3 AMENDMENT OF THE DISCRETIONARY HOUSING PAYMENTS (GRANTS) ORDER 2001

Amendment of the Discretionary Housing Payments (Grants) Order 2001 and effect of amendments

8.—(1) The Discretionary Housing Payments (Grants) Order 2001(4) is amended as follows.

(2) The amendments made by this article have effect in respect of any year(5) commencing on or after 1st April 2021.

(3) Article 2 (determining the amount of grant) is renumbered as article 2(1) and—

(a) in the renumbered article 2(1), in sub-paragraph (a)—

(i) omit “and council tax benefit”; and

(ii) at the end insert “and relevant awards of universal credit”;

(b) after the renumbered article 2(1) insert—

“(2) For the purpose of paragraph (1), a “relevant award of universal credit” means an award of universal credit, the calculation of which includes an amount under section 11 of the Welfare Reform Act 2012(6), calculated in accordance with Schedule 4 to the Universal Credit Regulations 2013(7), or would include such an amount but for paragraph 3(h) or (i) of Schedule 1 to those Regulations.”.

(4) In article 3 (claims)—

(a) in paragraph (2)—

(i) omit sub-paragraphs (a) to (d);

(ii) for sub-paragraph (e), substitute—

“(e) by 31st October in a relevant year—

(i) showing the amount of payments it has made from 1st April to 30th September of that relevant year; and

(ii) estimating the total amount of payments it believes it will make between 1st April and 31st March of that relevant year.”;

(b) in paragraph (3), omit sub-paragraph (b).

(5) For article 6 (payment), substitute—

“6.— (1) Subject to paragraph (2) and article 6A, the Secretary of State may make payments by way of instalments by reference to claims submitted in accordance with article 3 but no final payment shall be made until the Secretary of State is satisfied that no request for information in accordance with article 4 is outstanding.

(2) An initial instalment payment for the relevant year may be made without reference to any claim submitted in accordance with article 3.”

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

Will Quince

Parliamentary Under-Secretary of State for Welfare Delivery

Department for Work and Pensions

8th September 2021

We consent.

James Morris

Rebecca Harris

Two of the Lords Commissioners of Her Majesty’s Treasury

7th September 2021