Social Security Act 1986

30 Housing benefit finance

(1) For each year the Secretary of State shall pay—

(a) a subsidy to be known as " rate rebate subsidy " to each rating authority;

(b) a subsidy to be known as " rent rebate subsidy " to each housing authority; and

(c) a subsidy to be known as " rent allowance subsidy " to each local authority.

(2) The subsidy under subsection (1) above which is to be paid to an authority—

(a) shall be calculated, in the manner specified by an order made by the Secretary of State, by reference to the total housing benefit granted by that authority during the year with any additions specified in the order but subject to any deductions so specified; and

(b) shall be subject to deduction of any amount which the Secretary of State considers it unreasonable to meet out of money provided by way of subsidy under subsection (1) above.

(3) For each year the Secretary of State may pay to an authority as part of the subsidy under subsection (1) above an additional sum calculated, in the manner specified by an order made by the Secretary of State, in respect of the costs of administering housing benefit.

(4) The Secretary of State may pay to an authority, for the financial year 1987-88, a subsidy, calculated in the manner specified by an order made by the Secretary of State, in connection with the costs incurred by the authority in implementing the housing benefit scheme.

(5) Rent rebate subsidy shall be payable—

(a) in the case of a local authority in England and Wales—

(i) for the credit of their Housing Revenue Account to the extent that it is calculated by reference to Housing Revenue Account rebates and any costs of administering such rebates; and

(ii) for the credit of their general rate fund to the extent that it is not so calculated;

(b) in the case of a local authority in Scotland, for the credit of their rent rebate account;

(c) in the case of a new town corporation in England and Wales or the Development Board for Rural Wales, for the credit of their housing account; and

(d) in the case of a new town corporation in Scotland or the Scottish Special Housing Association, for the credit of the account to which rent rebates granted by them are debited.

(6) Every local authority shall make for each year a rate fund contribution to their Housing Revenue Account of an amount equal to the difference between—

(a) so much of their rent rebate subsidy for the year as is credited to that Account; and

(b) the total of—

(i) the Housing Revenue Account rebates granted by them during the year; and

(ii) the cost of administering such rebates.

(7) Rent allowance subsidy shall be payable—

(a) in the case of a local authority in England and Wales, for the credit of their general rate fund ; and

(b) in the case of a local authority in Scotland, for the credit of their rent allowance account.

(8) Subsidy under this section shall be payable by the Secretary of State at such time and in such manner as the Treasury may direct, but subject—

(a) to the making of a claim for it in such form and containing such particulars as the Secretary of State may from time to time determine; and

(b) to such conditions as to records, certificates, audit or otherwise as the Secretary of State may, with the approval of the Treasury, impose.

(9) The amount of any subsidy payable to an authority shall be calculated to the nearest pound, by disregarding an odd amount of 50 pence or less and by treating an odd amount exceeding 50 pence as a whole pound.

(10) If an order made by the Secretary of State so provides—

(a) the rate fund contribution under subsection (6) above made by a local authority for any year; and

(b) the rent allowances granted by a local authority during any year,

or such proportion of them as may be calculated in the manner specified by the order, shall not count as relevant expenditure for the purposes of section 54 of the [1980 c. 65.] Local Government, Planning and Land Act 1980 (rate support grant).