Welfare Reform and Work Act 2016

25 Exemption of a registered provider of social housing

(1) The regulator may issue a direction mentioned in subsection (2) in respect of a private registered provider if—

(a) the condition in subsection (4) or (5) is satisfied, and

(b) the Secretary of State consents.

(2) The directions are—

(a) a direction that section 23 does not apply in relation to a private registered provider specified in the direction;

(b) a direction that section 23 is to have effect in relation to a private registered provider specified in the direction as if in section 23(1) for “at least 1% less than” there were substituted “no more than”;

(c) a direction that section 23 is to have effect in relation to a private registered provider specified in the direction as if section 23(1) required at least the lesser reduction specified in the direction;

(d) a direction that section 23 is to have effect in relation to a private registered provider specified in the direction as if section 23(1) required the private registered provider to secure that the amount of rent payable by a tenant of their social housing increased by no more than the percentage specified in the direction.

(3) The regulator may specify in a direction—

(a) the period during which it is to have effect, and

(b) the social housing in relation to which it is to have effect.

(4) The condition in this subsection is that the regulator considers that complying with section 23 would jeopardise the financial viability of the private registered provider.

(5) The condition in this subsection is that the circumstances of the private registered provider satisfy requirements prescribed in regulations made by the Secretary of State.

(6) The regulator may publish a document about the measures that the regulator considers could be taken by a private registered provider to comply with section 23 and to avoid jeopardising its financial viability.

(7) The Secretary of State may issue a direction mentioned in subsection (8) in respect of a local authority if the condition in subsection (10) or (11) is satisfied.

(8) The directions are—

(a) a direction that section 23 does not apply in relation to a local authority specified in the direction;

(b) a direction that section 23 is to have effect in relation to a local authority specified in the direction as if in section 23(1) for “at least 1% less than” there were substituted “no more than”;

(c) a direction that section 23 is to have effect in relation to a local authority specified in the direction as if section 23(1) required at least the lesser reduction specified in the direction;

(d) a direction that section 23 is to have effect in relation to a local authority specified in the direction as if section 23(1) required the authority to secure that the amount of rent payable by a tenant of their social housing increased by no more than the percentage specified in the direction.

(9) The Secretary of State may specify in a direction—

(a) the period during which it is to have effect, and

(b) the social housing in relation to which it is to have effect.

(10) The condition in this subsection is that the Secretary of State considers that the local authority would be unable to avoid serious financial difficulties if it were to comply with section 23.

(11) The condition in this subsection is that the circumstances of the local authority satisfy requirements prescribed in regulations made by the Secretary of State.

(12) The Secretary of State may publish a document about the measures that the Secretary of State considers could be taken by a local authority in order to comply with section 23 and to avoid serious financial difficulties.

(13) Regulations under this section must be made by statutory instrument.

(14) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament.