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Statutory Instruments

2015 No. 1784

Social Security

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

Made

12th October 2015

Laid before Parliament

19th October 2015

Coming into force

9th November 2015

The Secretary of State for Work and Pensions makes the following Order in exercise of the powers conferred by sections 140B(1), (3), (4) and (4A), 140F(2) and 189(1), (4), (5) and (7) of the Social Security Administration Act 1992(1).

In accordance with section 189(8) of that Act(2), the Secretary of State has obtained the consent of the Treasury.

In accordance with section 176(1) of that Act(3), the Secretary of State has consulted with organisations appearing to the Secretary of State to be representative of the authorities concerned.

Citation, commencement and interpretation

1.—(1) This Order may be cited as the Income-related Benefits (Subsidy to Authorities) Amendment Order 2015 and comes into force on 9th November 2015.

(2) Article 2(4) and Schedule 1 have effect for the purpose of determining subsidy payable for the relevant year beginning with 1st April 2014.

(3) Article 2(2) and (3) and article 3 have effect for the purpose of determining subsidy payable for—

(a)the relevant year beginning with 1st April 2014; and

(b)any subsequent relevant year.

(4) Article 4 and Schedules 3 and 4 have effect for the purpose of determining subsidy payable for the relevant year beginning with 1st April 2015.

(5) In this Order—

(a)the “1998 Order” means the Income-related Benefits (Subsidy to Authorities) Order 1998(4);

(b)“relevant year” means the period of a year beginning with 1st April in any calendar year, in respect of which a claim for subsidy is made.

The amount of an authority’s subsidy

2.—(1) The 1998 Order is amended as follows.

(2) In article 12 (amount of subsidy)—

(a)for paragraph (1)(5), substitute—

(1) 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 relevant benefit specified in column (2) of that Schedule for that authority;

(c)for an authority which is a participating authority for the purpose of Schedule 1A (additional amount of subsidy: activities to reduce fraud and error), the additional amount (if any) calculated in accordance with that Schedule; and

(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).;

(b)in paragraph (4)(6), for “(1)(c)” substitute “(1)(d)”.

(3) In article 13(1) (relevant benefit)(7), for the words from “Subject to” to “paid to an authority” substitute “The amount of subsidy payable under article 12(1)(a)”.

(4) For Schedule 1 (sums to be used in the calculation of subsidy)(8), substitute the Schedule 1 set out in Schedule 1 to this Order.

(5) After Schedule 1 (sums to be used in the calculation of subsidy), insert the Schedule 1A set out in Schedule 2 to this Order.

Additions to an authority’s subsidy

3.—(1) The 1998 Order is amended as follows.

(2) In article 18 (additions to subsidy), after paragraph (6ZA)(9) insert—

(6ZB) 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(10);

“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(11);

“Real Time Information pension payer” has the meaning in regulation 2B(1) of the Income Tax (Pay As You Earn) Regulations 2003(12)..

Rent rebate deductions from an authority’s subsidy

4.—(1) The 1998 Order is amended as follows.

(2) In Schedule 4A (rent rebate limitation deductions (Housing Revenue Account Dwellings))(13)—

(a)in Part 2 (England), in paragraph 3 (amount of deduction), for sub-paragraph (3)(14) substitute—

(3) The rebate proportion for 2015-16 is 0.746..

(b)for Part 3 (weekly rent limits for purposes of Part 2: authorities in England)(15), substitute the Part 3 set out in Schedule 3 to this Order.

(c)for Part 5 (amounts for purposes of Part 4, paragraph 4: authorities in Wales)(16), substitute the Part 5 set out in Schedule 4 to this Order.

Amendments consequential to the abolition of community charge benefit

5.—(1) The 1998 Order is amended as follows.

(2) In article 11 (interpretation of Part 3)—

(a)omit the definition of “the Community Charge Benefits Regulations”;

(b)in the definition of “Overpayment”, omit “excess benefits under the Community Charge Benefits Regulations and”.

(3) In article 18 (additions to subsidy)—

(a)in paragraph (1)(b)(17), omit “community charge benefit or”;

(b)in paragraph (1)(b)(ii), omit “community charge benefit or”;

(c)in paragraph (8)(18)—

(i)omit “community charge benefit or”;

(ii)after “regulation 69 of the Council Tax Benefit Regulations”, for “of” substitute “or”;

(iii)omit “or paragraph (18) of regulation 60 of the Community Charge Benefits Regulations (time and manner in which claims are to be made)”.

(4) In paragraph (1)(g)(ii)(19) of article 19 (deductions to be made in calculating subsidy)—

(a)omit “paragraph (7) of article 2 of the Community Charge Benefits (Transitional) Order 1989,”;

(b)omit “paragraph (18) of regulation 60 of the Community Charge Benefits Regulations,”.

(5) In article 20 (deduction from subsidy), omit “or community charge benefit”.

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

Freud

Minister of State,

Department for Work and Pensions

12th October 2015

We consent

Charlie Elphicke

Mel Stride

Two of the Lords Commissioners of Her Majesty’s Treasury

12th October 2015

Article 2(4)

SCHEDULE 1Schedule to be substituted for Schedule 1 to the 1998 Order

Article 12(1)(b)

SCHEDULE 1Sums to be used in the calculation of subsidy

Relevant Year 2014-2015

Local authorityAdministration subsidy(£)
England
Adur284,754
Allerdale501,177
Amber Valley583,185
Arun779,941
Ashfield643,947
Ashford571,726
Aylesbury Vale702,012
Babergh345,186
Barking & Dagenham1,636,923
Barnet2,473,067
Barnsley1,532,037
Barrow in Furness389,038
Basildon1,044,461
Basingstoke and Deane776,222
Bassetlaw595,256
Bath & North East Somerset814,756
Bedford948,233
Bexley1,215,949
Birmingham8,508,760
Blaby298,130
Blackburn with Darwen968,286
Blackpool1,475,926
Bolsover415,646
Bolton1,959,127
Boston416,763
Bournemouth1,336,748
Bracknell Forest530,251
Bradford3,511,436
Braintree720,774
Breckland1,041,397
Brent3,214,671
Brentwood258,757
Brighton and Hove2,140,528
Bristol3,070,735
Broadland398,912
Bromley1,538,678
Bromsgrove297,939
Broxbourne524,955
Broxtowe446,491
Burnley720,514
Bury1,042,153
Calderdale1,332,370
Cambridge1,321,053
Camden2,261,136
Cannock Chase529,674
Canterbury649,399
Carlisle565,516
Castle Point389,291
Central Bedfordshire983,617
Charnwood637,355
Chelmsford667,870
Cheltenham568,254
Cherwell625,784
Cheshire East1,551,528
Cheshire West and Chester1,616,730
Chesterfield655,552
Chichester500,992
Chiltern302,414
Chorley475,240
Christchurch224,928
City of London112,419
Colchester837,311
Copeland391,193
Corby515,844
Cornwall3,032,868
Cotswold345,877
Coventry2,264,153
Craven203,537
Crawley699,202
Croydon2,856,446
Dacorum697,851
Darlington680,173
Dartford444,100
Daventry301,410
Derby1,462,960
Derbyshire Dales245,188
Doncaster2,042,503
Dover648,897
Dudley1,735,011
Durham3,516,220
Ealing2,767,856
East Cambridgeshire347,152
East Devon533,625
East Dorset304,494
East Hampshire409,887
East Hertfordshire525,027
East Lindsey996,541
East Northamptonshire355,272
East Riding of Yorkshire1,511,223
East Staffordshire541,138
Eastbourne718,346
Eastleigh481,390
Eden190,446
Elmbridge476,105
Enfield3,321,185
Epping Forest500,782
Epsom and Ewell267,945
Erewash571,126
Exeter677,111
Fareham342,647
Fenland575,531
Forest Heath304,537
Forest of Dean408,486
Fylde342,842
Gateshead1,403,742
Gedling543,699
Gloucester785,600
Gosport547,595
Gravesham557,965
Great Yarmouth746,627
Greenwich2,539,289
Guildford545,022
Hackney3,653,507
Halton971,467
Hambleton340,685
Hammersmith and Fulham1,773,438
Harborough231,518
Haringey2,822,038
Harlow599,193
Harrogate568,878
Harrow1,610,470
Hart219,116
Hartlepool857,534
Hastings874,817
Havant617,527
Havering1,103,182
Herefordshire854,590
Hertsmere547,490
High Peak445,053
Hillingdon1,946,913
Hinckley and Bosworth442,614
Horsham424,177
Hounslow1,808,918
Huntingdonshire706,549
Hyndburn602,613
Ipswich874,953
Isle of Wight913,466
Isles of Scilly4,002
Islington2,592,394
Kensington and Chelsea1,569,112
Kettering472,076
King’s Lynn & West Norfolk757,300
Kingston upon Hull2,304,697
Kingston upon Thames784,272
Kirklees2,293,383
Knowsley1,370,013
Lambeth3,682,708
Lancaster693,234
Leeds4,816,618
Leicester2,370,233
Lewes447,980
Lewisham3,619,951
Lichfield358,575
Lincoln678,659
Liverpool5,142,181
Luton1,252,478
Maidstone671,778
Maldon244,052
Malvern Hills322,604
Manchester5,059,228
Mansfield630,780
Medway1,583,173
Melton183,679
Mendip547,570
Merton1,191,601
Mid Devon339,385
Mid Suffolk289,407
Mid Sussex435,328
Middlesbrough1,358,751
Milton Keynes1,683,413
Mole Valley302,144
New Forest649,460
Newark and Sherwood486,569
Newcastle under Lyme600,250
Newcastle upon Tyne2,241,200
Newham2,820,834
North Devon528,165
North Dorset266,754
North East Derbyshire421,289
North East Lincolnshire1,229,616
North Hertfordshire652,247
North Kesteven389,523
North Lincolnshire978,702
North Norfolk502,439
North Somerset1,131,450
North Tyneside1,309,039
North Warwickshire268,156
North West Leicestershire376,977
Northampton1,237,889
Northumberland1,733,828
Norwich1,140,295
Nottingham2,716,639
Nuneaton and Bedworth672,465
Oadby and Wigston186,662
Oldham1,591,694
Oxford866,931
Pendle686,031
Peterborough1,410,857
Plymouth1,871,444
Poole675,314
Portsmouth1,610,753
Preston891,223
Purbeck198,750
Reading1,072,266
Redbridge1,469,399
Redcar and Cleveland1,024,148
Redditch442,083
Reigate and Banstead559,459
Ribble Valley171,545
Richmond upon Thames833,212
Richmondshire179,454
Rochdale1,625,820
Rochford284,210
Rossendale390,540
Rother450,948
Rotherham1,560,314
Rugby462,361
Runnymede333,932
Rushcliffe336,256
Rushmoor537,580
Rutland121,121
Ryedale230,158
Salford2,185,282
Sandwell2,401,630
Scarborough778,061
Sedgemoor761,108
Sefton1,767,590
Selby312,927
Sevenoaks431,312
Sheffield3,303,293
Shepway649,204
Shropshire1,314,715
Slough1,025,162
Solihull878,035
South Bucks225,930
South Cambridgeshire417,407
South Derbyshire314,371
South Gloucestershire1,139,200
South Hams373,595
South Holland396,146
South Kesteven578,537
South Lakeland353,891
South Norfolk480,960
South Northamptonshire239,409
South Oxfordshire431,521
South Ribble439,749
South Somerset799,943
South Staffordshire392,342
South Tyneside1,189,042
Southampton1,740,509
Southend on Sea1,228,568
Southwark3,393,874
Spelthorne400,657
St Albans438,737
St Edmundsbury468,715
St Helens1,271,078
Stafford499,237
Staffordshire Moorlands346,535
Stevenage520,529
Stockport1,349,722
Stockton on Tees1,313,851
Stoke on Trent1,736,182
Stratford on Avon462,107
Stroud412,415
Suffolk Coastal457,172
Sunderland2,321,230
Surrey Heath279,347
Sutton1,064,597
Swale797,204
Swindon1,094,024
Tameside1,662,183
Tamworth362,616
Tandridge294,770
Taunton Deane563,703
Teignbridge630,956
Telford and Wrekin1,155,166
Tendring962,953
Test Valley472,871
Tewkesbury336,178
Thanet1,187,246
Three Rivers366,779
Thurrock901,153
Tonbridge and Malling498,407
Torbay1,137,906
Torridge346,342
Tower Hamlets3,881,970
Trafford1,120,495
Tunbridge Wells484,158
Uttlesford233,691
Vale of White Horse436,295
Wakefield2,385,884
Walsall2,137,228
Waltham Forest2,179,682
Wandsworth2,447,476
Warrington1,106,189
Warwick500,996
Watford558,973
Waveney697,149
Waverley399,571
Wealden490,517
Wellingborough454,598
Welwyn Hatfield600,855
West Berkshire627,091
West Devon248,374
West Dorset434,912
West Lancashire526,857
West Lindsey458,111
West Oxfordshire400,185
West Somerset223,522
Westminster2,421,284
Weymouth and Portland455,164
Wigan1,902,188
Wiltshire2,018,760
Winchester399,358
Windsor and Maidenhead519,042
Wirral2,234,386
Woking398,109
Wokingham349,850
Wolverhampton1,977,115
Worcester569,566
Worthing549,408
Wychavon466,328
Wycombe724,691
Wyre623,117
Wyre Forest561,741
York857,005
Wales
Blaenau Gwent589,022
Bridgend841,844
Caerphilly1,045,589
Cardiff2,110,111
Carmarthenshire929,120
Ceredigion356,359
Comhairle nan Eilean Siar164,602
Conwy659,748
Denbighshire568,170
Flintshire719,672
Gwynedd653,200
Isle of Anglesey376,828
Merthyr Tydfil436,505
Monmouthshire374,298
Neath Port Talbot949,055
Newport1,000,697
Orkney104,606
Pembrokeshire610,934
Powys598,917
Rhondda Cynon Taf1,493,363
Shetland83,170
Swansea1,442,129
Torfaen662,896
Vale of Glamorgan634,724
Wrexham722,474
Scotland
Aberdeen994,590
Aberdeenshire898,607
Angus617,253
Argyll and Bute505,935
Clackmannanshire340,673
Dumfries and Galloway967,125
Dundee1,284,890
East Ayrshire879,320
East Dunbartonshire374,426
East Lothian542,696
East Renfrewshire264,620
Edinburgh2,843,243
Falkirk908,441
Fife2,153,895
Glasgow6,200,858
Highland1,193,433
Inverclyde686,325
Midlothian488,876
Moray396,407
North Ayrshire1,073,196
North Lanarkshire2,258,213
Perth and Kinross694,556
Renfrewshire1,216,850
Scottish Borders662,940
South Ayrshire691,064
South Lanarkshire1,807,810
Stirling382,704
West Dunbartonshire870,085
West Lothian1,081,340.

Article 2(5)

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

Article 12(1)(c)

SCHEDULE 1AAdditional 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(20);

“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 (21);

(ii)the Annex to HB Subsidy Circular S9/2013 for authorities in England (22);

(iii)the Annex to HB Subsidy Circular S10/2013 for authorities in Scotland (23);

(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 (24);

(ii)the Annex to HB Subsidy Circular S7/2014 for authorities in Wales (25);

(iii)the Annex to HB Subsidy Circular S8/2014 for authorities in England (26).

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.

Article 4(b)

SCHEDULE 3Part to be substituted for Part 3 of Schedule 4A to the 1998 Order

PART 3WEEKLY RENT LIMITS FOR PURPOSES OF PART 2: AUTHORITIES IN ENGLAND

RELEVANT YEAR 2015-2016

AuthorityWeekly rent limit (£)
Adur96.11
Arun93.35
Ashfield70.31
Ashford91.47
Babergh91.80
Barking & Dagenham101.67
Barnet118.30
Barnsley76.97
Barrow77.12
Basildon89.52
Bassetlaw74.46
Birmingham85.11
Blackpool73.10
Bolsover84.21
Bournemouth85.28
Brent119.20
Brentwood97.05
Brighton & Hove86.74
Bristol83.44
Broxtowe76.34
Bury78.90
Cambridge105.62
Camden124.21
Cannock Chase75.58
Canterbury90.97
Castle Point91.10
Central Bedfordshire104.71
Charnwood76.56
Cheltenham82.61
Cheshire West & Chester84.83
Chesterfield81.96
City of London111.81
City of York81.61
Colchester89.95
Corby81.13
Cornwall72.94
Crawley106.04
Croydon109.11
Dacorum111.70
Darlington72.92
Dartford92.05
Derby80.82
Doncaster75.26
Dover86.71
Dudley85.19
Durham72.38
Ealing105.47
East Devon83.42
East Riding81.37
Eastbourne79.65
Enfield104.23
Epping Forest102.18
Exeter77.41
Fareham92.61
Gateshead78.70
Gloucester City80.07
Gosport86.34
Gravesham92.04
Great Yarmouth77.12
Greenwich105.93
Guildford113.82
Hackney102.62
Hammersmith119.12
Haringey108.58
Harlow94.96
Harrogate82.99
Harrow116.96
Havering99.27
High Peak75.32
Hillingdon111.71
Hinckley & Bosworth80.55
Hounslow105.77
Hull77.22
Ipswich87.84
Islington122.41
Kensington131.74
Kettering84.03
Kingston upon Thames115.33
Kirklees71.87
Lambeth111.49
Lancaster79.50
Leeds75.87
Leicester74.27
Lewes92.17
Lewisham98.92
Lincoln70.77
Luton89.27
Manchester75.10
Mansfield75.30
Medway84.29
Melton79.18
Mid Devon80.68
Mid Suffolk84.49
Milton Keynes88.18
North East Derbyshire83.59
New Forest102.26
Newark & Sherwood80.49
Newcastle upon Tyne77.45
Newham99.46
North Kesteven78.82
North Tyneside78.72
North Warwickshire91.02
Northampton85.67
Northumberland70.22
Norwich81.72
Nottingham77.20
Nuneaton & Bedworth80.06
North West Leicestershire81.14
Oadby & Wigston81.66
Oldham72.17
Oxford City112.63
Poole87.82
Portsmouth87.33
Reading107.52
Redbridge105.85
Redditch80.74
Richmondshire79.81
Rotherham78.12
Rugby88.93
Runnymede112.72
Salford77.14
Sandwell83.83
Sedgemoor79.75
Selby80.51
Sheffield74.05
Shepway86.46
Shropshire84.16
Slough109.05
Solihull84.59
South Cambridgeshire109.65
South Derbyshire81.60
South Holland77.98
South Kesteven81.15
South Tyneside77.22
Southampton87.29
Southend-on-Sea88.62
Southwark111.00
St Albans116.38
Stevenage100.93
Stockport77.05
Stoke-on-Trent72.52
Stroud84.84
Sutton110.16
Swindon85.38
Tamworth82.56
Tandridge101.26
Taunton Deane84.87
Tendring85.95
Thanet83.39
Thurrock88.37
Tower Hamlets114.00
Uttlesford102.48
Waltham Forest105.26
Wandsworth128.34
Warwick96.72
Waveney81.44
Waverley116.95
Wealden87.53
Welwyn Hatfield110.99
West Lancashire78.24
Westminster128.49
Wigan80.26
Wiltshire90.39
Winchester104.12
Woking106.44
Wokingham117.21
Wolverhampton82.23.

Article 4(c)

SCHEDULE 4Part to be substituted for Part 5 of Schedule 4A to the 1998 Order

PART 5AMOUNTS FOR PURPOSES OF PART 4, PARAGRAPH 4: AUTHORITIES IN WALES

RELEVANT YEAR 2015-2016

Local authority(1) Specified amount “O”(£)(2) Guideline rent increase “P” (£)
Caerphilly74.094.82
Cardiff84.914.27
Carmarthenshire74.553.97
Denbighshire72.403.89
Flintshire75.343.29
Isle of Anglesey71.253.90
Pembrokeshire76.313.78
Powys76.314.04
Swansea73.273.97
Vale of Glamorgan81.954.26
Wrexham74.524.01.

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends the Income-related Benefits (Subsidy to Authorities) Order 1998 (S.I. 1998/562) (“the 1998 Order”) which provides for the calculation and payment of housing benefit subsidy to local authorities in England, Wales and Scotland who administer those benefits. Section 140F(2) of the Social Security Administration Act 1992 (c.5) authorises the making, revocation or varying of an Order before, during or after the year to which it relates.

Article 2(2) and (3) have effect for the purpose of determining subsidy payable for the year beginning with 1st April 2014 and any subsequent year beginning with 1st April. Article 2(2) substitutes article 12(1) of the 1998 Order with a new paragraph (1) which sets out how the amount of an authority’s subsidy for the relevant year is to be calculated. In particular, it allows for additional payments of subsidy to be made in certain circumstances to local authorities who participate in the Fraud and Error Reduction Incentive Scheme (“FERIS”), as notified by the Secretary of State to local authorities on 24th November 2014. Article 2(3) makes a consequential change to article 13(1) of the 1998 Order.

Participating authorities are given funding to carry out activities with a view to reducing fraud and error in relation to the payment of housing benefit. The Secretary of State then sets a threshold for expected performance in reducing fraud and error in a specified period for each such authority based on the authority’s performance in making such reductions in a previous equivalent period. Additional payments are then made to the authority, the amounts depending on the extent to which the authority exceeds the threshold for reducing housing benefit payments in each such period by virtue of those activities. Provision is also made for a further additional payment to be made to the authority based on performance in reducing housing benefit payments over the entire course of the scheme.

New Schedule 1A to the 1998 Order, which is inserted by article 2(5) and set out in Schedule 2 to this Order, sets out how the additional payments of subsidy in respect of FERIS are to be calculated.

Hard copies of the circulars explaining FERIS and the amounts of the administration subsidy on which payments are based are available from the Department for Work and Pensions, Caxton House, Tothill Street, London SW1H 9NA.

Article 2(4) sets out new figures to be used in the calculation of subsidy payable to an authority for the year beginning with 1st April 2014 by substituting Schedule 1 to the 1998 Order with Schedule 1 to this Order.

Article 3 has effect for the purpose of determining subsidy payable for the year beginning with 1st April 2014 and any subsequent year beginning with 1st April. It inserts new paragraphs (6ZB), (6ZC) and (6ZD) into article 18 of the 1998 Order which provide that where a local authority receives real time information in respect of an overpayment and makes a revision or supersession decision within 4 weeks (subject to extension where further information is required), that overpayment will not be treated as an authority error overpayment or administrative delay overpayment for the purposes of calculating additional amounts of subsidy payable to an authority.

Article 4 has effect for the purpose of determining subsidy payable for the year beginning with 1st April 2015. Article 4(2)(a) amends paragraph 3 of Schedule 4A to provide that the rebate proportion figure for 2015/2016 is 0.746. Article 4(2)(b) substitutes Part 3 of Schedule 4A to the 1998 Order in respect of weekly rent limits for authorities in England. With respect to authorities in Wales, article 4(2)(c) substitutes Part 5 of Schedule 4A to the 1998 Order which sets out the specified amount “O” and the guideline rent increase “P” used when calculating deductions from subsidy under paragraph 4 in Part 4 of that Schedule.

Article 5 removes references to community charge benefit from the 1998 Order which are now obsolete as it was replaced by council tax benefit in 1993.

An impact assessment has not been produced for this instrument as it has no impact on business or civil society organisations.

(1)

1992 c.5. Sections 140B and 140F were inserted by paragraph 4 of Schedule 12 to the Housing Act 1996 (c.52). Section 140B was amended by section 10 of, and paragraph 7 of Schedule 1 to, the Social Security Administration (Fraud) Act 1997 (c.47) (“the Fraud Act”). Sections 140B and 140F were repealed, to the extent they related to council tax benefit, by section 147 of, and paragraph 1 of Schedule 14 to, the Welfare Reform Act 2012 (c.5) with effect from 1st April 2013 and subject to savings and transitional provisions in articles 9 and 10 of S.I. 2013/358. Section 189(1) and (4) was amended by paragraph 109 of Schedule 7 to the Social Security Act 1998 (c.14). Section 189(1) was amended by paragraph 57(2) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c.2) (“the Transfer of Functions Act”) and paragraph 1 of Schedule 6 to the Tax Credits Act 2002 (c.21). Section 189(4) was amended by S.I. 2013/252. Section 189(7) was amended by paragraph 24 of Schedule 9 to the Local Government Finance Act 1992 (c.14) and paragraph 10 of Schedule 1 to the Fraud Act. Section 189 was repealed, to the extent it related to council tax benefit, by section 147 of, and paragraph 1 of Schedule 14 to, the Welfare Reform Act 2012 with effect from 1st April 2013 and subject to savings and transitional provisions in articles 9 and 10 of S.I. 2013/358.

(2)

Section 189(8) was amended by paragraph 3(5) of Schedule 13 to the Housing Act 1996, paragraph 10 of Schedule 4 to the Social Security (Recovery of Benefits) Act 1997 (c.27), paragraph 3 of Schedule 4 to the Tax Credits Act 2002 (c.21), paragraph 29 of Schedule 1 to the Pensions Act 2007 (c.22) and paragraph 57(3) of Schedule 3 to the Transfer of Functions Act.

(3)

Section 176(1)(b) was amended by paragraph 3(4) of Schedule 13 to the Housing Act 1996 and was repealed, to the extent it related to council tax benefit, by section 147 of, and paragraph 1 of Schedule 14 to, the Welfare Reform Act 2012 with effect from 1st April 2013 and subject to savings and transitional provisions in articles 9 and 10 of S.I. 2013/358.

(5)

Paragraph (1) of article 12 was amended by S.I. 2000/2340 and 2006/54.

(6)

Paragraph (4) of article 12 was inserted by S.I. 2006/54.

(7)

Paragraph (1) of article 13 was substituted by S.I. 2000/1091.

(8)

Schedule 1 was substituted by S.I. 2014/1667.

(9)

Paragraph (6ZA) of article 18 was inserted by S.I. 2010/2481.

(10)

2003 c.1.

(11)

S.I. 2003/2682. Regulation 2A(1) was inserted by S.I. 2012/822 and amended by S.I. 2013/521.

(12)

S.I. 2003/2682. Regulation 2B(1) was inserted by S.I. 2012/822 and amended by S.I. 2013/521.

(13)

Schedule 4A was inserted by S.I. 2004/646.

(14)

In Part 2 of Schedule 4A, paragraph 3(3) was substituted by S.I. 2010/2481.

(15)

Part 3 of Schedule 4A was substituted by S.I. 2014/1667.

(16)

Part 5 of Schedule 4A was substituted by S.I. 2014/1667.

(17)

Paragraph 1(b) of article 18 was substituted by S.I. 2000/1091 and amended by S.I. 2003/3179 and 2006/54.

(18)

Paragraph 8 of article 18 was amended by S.I. 2000/1091 and 2006/217.

(19)

Paragraph 1(g)(ii) of article 19 was amended by S.I. 2006/217.