Social Security Administration Act 1992

135 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—

(i) in the case of an authority in England and Wales, to the relevant benefit; and

(ii) in the case of an authority in Scotland, to the total housing benefit,

and by reference also, in the case of an authority in England and Wales or Scotland, to any rebate or allowance within the meaning of the [1982 c. 24.] Social Security and Housing Benefits Act 1982 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) In subsection (2) above “relevant benefit”, in relation to an authority, means total housing benefit excluding any Housing Revenue Account rebates granted by them.

(4) Nothing in this section shall be taken to imply that any such addition or deduction as is mentioned in subsection (2)(a) or (b) above may not be determined by reference to—

(a) an authority’s expenditure in respect of any housing benefit, or in respect of any rebate or allowance within the meaning of the Social Security and Housing Benefits Act 1982, granted during any previous year; or

(b) any subsidy under this section or that Act paid to an authority in respect of any previous year.

(5) 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.

(6) Rent rebate subsidy shall be payable—

(a) in the case of a local authority in England and Wales, subject to subsection (7) below, for the credit of a revenue account of theirs which is not a Housing Revenue Account or a Housing Repairs Account;

(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 Scottish Homes, for the credit of the account to which rent rebates granted by them, or it, are debited.

(7) Rent rebate subsidy for a year beginning before 1st April 1990 shall be payable in the case of a local authority in England and Wales—

(a) 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

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

(8) Every local housing authority in England and Wales shall for each year carry to the credit of their Housing Revenue Account from some other revenue account of theirs which is not a Housing Repairs Account an amount equal to the aggregate of—

(a) so much of each Housing Revenue Account rebate granted by them during the year as was granted in the exercise of a discretion conferred by the housing benefit scheme or in pursuance of such modifications of that scheme as are mentioned in paragraph (b) of section 134(8) above; and

(b) unless the authority otherwise determine, so much of each such rebate as was granted in pursuance of such modifications of that scheme as are mentioned in paragraph (a) of that subsection.

(9) Every local authority in Scotland 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.

(10) Rent allowance subsidy shall be payable—

(a) in the case of a local authority in England and Wales and subsidy payable for a year beginning before 1st April 1990, 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.

(11) Subsidy under this section shall be payable by the Secretary of State at such time and in such manner as the Treasury may direct.

(12) 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.

(13) In subsection (7) above “general rate fund” means—

(a) in relation to the Council of the Isles of Scilly, their general fund; and

(b) in relation to the Common Council of the City of London, their general rate.

(14) In this section “modifications” includes additions, omissions and amendments and related expressions shall be construed accordingly.