The Contracting Out (Functions of Local Authorities: Income-Related Benefits) Order 2002

Explanatory Note

(This note is not part of the Order)

This Order provides that, with specified exceptions, functions of a local authority exercisable under the Social Security Contributions and Benefits Act 1992, the Social Security Administration Act 1992 (“the Administration Act”) section 34 of the Social Security Act 1998 and the Child Support, Pensions and Social Security Act 2000 and Regulations and Orders made thereunder, in relation to council tax benefit, discretionary housing payments and housing benefit may be exercised by such persons as the authority may authorise to do so.

Excepted functions are

(a) any function relating to the claiming and receipt of subsidy;

(b) the issue of a certificate under section 116(3)(b) of the Administration Act (as to the date on which evidence sufficient to justify prosecution came to the local authority’s knowledge);

(c) the grant or withdrawal of authorisations under section 110A(3) to (7) of the Administration Act (to exercise the powers of inspection);

(d) requiring a person to enter into arrangements under section 110AA of the Administration Act (to allow access to electronic records); and

(e) any function under sections 139D to 139H of the Administration Act (directions by the Secretary of State).

Article 4 of the Order requires that an authorisation involving decisions on claims include a requirement that the authorised person provides a local authority with a random sample of not less than 10 per cent. of decisions on claims and that the authorisation is subject to the inclusion of that requirement. This requirement applies to an authorised person only if he employs more than one other person to carry out the work in relation to the exercise of any function involving decisions on claims.

Article 5 of the Order provides that an authorisation given under this Order relating to any function involving decisions on claims shall not extend to a person who has a financial interest in the payment of housing benefit.

This Order does not impose a charge upon business.