2015 No. 1784

Social Security

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

Made

Laid before Parliament

Coming into force

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 19921.

In accordance with section 189(8) of that Act2, the Secretary of State has obtained the consent of the Treasury.

In accordance with section 176(1) of that Act3, the Secretary of State has consulted with organisations appearing to the Secretary of State to be representative of the authorities concerned.

Citation, commencement and interpretation1

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 19984;

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 subsidy2

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 subsidy3

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 200310;

  • 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 200311;

  • “Real Time Information pension payer” has the meaning in regulation 2B(1) of the Income Tax (Pay As You Earn) Regulations 200312.

Rent rebate deductions from an authority’s subsidy4

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 benefit5

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

FreudMinister of State,Department for Work and Pensions

We consent

Charlie ElphickeMel StrideTwo of the Lords Commissioners of Her Majesty’s Treasury

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

Article 2(4)

SCHEDULE 1Sums to be used in the calculation of subsidy

Article 12(1)(b)

Relevant Year 2014-2015

Local authority

Administration subsidy(£)

England

Adur

284,754

Allerdale

501,177

Amber Valley

583,185

Arun

779,941

Ashfield

643,947

Ashford

571,726

Aylesbury Vale

702,012

Babergh

345,186

Barking & Dagenham

1,636,923

Barnet

2,473,067

Barnsley

1,532,037

Barrow in Furness

389,038

Basildon

1,044,461

Basingstoke and Deane

776,222

Bassetlaw

595,256

Bath & North East Somerset

814,756

Bedford

948,233

Bexley

1,215,949

Birmingham

8,508,760

Blaby

298,130

Blackburn with Darwen

968,286

Blackpool

1,475,926

Bolsover

415,646

Bolton

1,959,127

Boston

416,763

Bournemouth

1,336,748

Bracknell Forest

530,251

Bradford

3,511,436

Braintree

720,774

Breckland

1,041,397

Brent

3,214,671

Brentwood

258,757

Brighton and Hove

2,140,528

Bristol

3,070,735

Broadland

398,912

Bromley

1,538,678

Bromsgrove

297,939

Broxbourne

524,955

Broxtowe

446,491

Burnley

720,514

Bury

1,042,153

Calderdale

1,332,370

Cambridge

1,321,053

Camden

2,261,136

Cannock Chase

529,674

Canterbury

649,399

Carlisle

565,516

Castle Point

389,291

Central Bedfordshire

983,617

Charnwood

637,355

Chelmsford

667,870

Cheltenham

568,254

Cherwell

625,784

Cheshire East

1,551,528

Cheshire West and Chester

1,616,730

Chesterfield

655,552

Chichester

500,992

Chiltern

302,414

Chorley

475,240

Christchurch

224,928

City of London

112,419

Colchester

837,311

Copeland

391,193

Corby

515,844

Cornwall

3,032,868

Cotswold

345,877

Coventry

2,264,153

Craven

203,537

Crawley

699,202

Croydon

2,856,446

Dacorum

697,851

Darlington

680,173

Dartford

444,100

Daventry

301,410

Derby

1,462,960

Derbyshire Dales

245,188

Doncaster

2,042,503

Dover

648,897

Dudley

1,735,011

Durham

3,516,220

Ealing

2,767,856

East Cambridgeshire

347,152

East Devon

533,625

East Dorset

304,494

East Hampshire

409,887

East Hertfordshire

525,027

East Lindsey

996,541

East Northamptonshire

355,272

East Riding of Yorkshire

1,511,223

East Staffordshire

541,138

Eastbourne

718,346

Eastleigh

481,390

Eden

190,446

Elmbridge

476,105

Enfield

3,321,185

Epping Forest

500,782

Epsom and Ewell

267,945

Erewash

571,126

Exeter

677,111

Fareham

342,647

Fenland

575,531

Forest Heath

304,537

Forest of Dean

408,486

Fylde

342,842

Gateshead

1,403,742

Gedling

543,699

Gloucester

785,600

Gosport

547,595

Gravesham

557,965

Great Yarmouth

746,627

Greenwich

2,539,289

Guildford

545,022

Hackney

3,653,507

Halton

971,467

Hambleton

340,685

Hammersmith and Fulham

1,773,438

Harborough

231,518

Haringey

2,822,038

Harlow

599,193

Harrogate

568,878

Harrow

1,610,470

Hart

219,116

Hartlepool

857,534

Hastings

874,817

Havant

617,527

Havering

1,103,182

Herefordshire

854,590

Hertsmere

547,490

High Peak

445,053

Hillingdon

1,946,913

Hinckley and Bosworth

442,614

Horsham

424,177

Hounslow

1,808,918

Huntingdonshire

706,549

Hyndburn

602,613

Ipswich

874,953

Isle of Wight

913,466

Isles of Scilly

4,002

Islington

2,592,394

Kensington and Chelsea

1,569,112

Kettering

472,076

King’s Lynn & West Norfolk

757,300

Kingston upon Hull

2,304,697

Kingston upon Thames

784,272

Kirklees

2,293,383

Knowsley

1,370,013

Lambeth

3,682,708

Lancaster

693,234

Leeds

4,816,618

Leicester

2,370,233

Lewes

447,980

Lewisham

3,619,951

Lichfield

358,575

Lincoln

678,659

Liverpool

5,142,181

Luton

1,252,478

Maidstone

671,778

Maldon

244,052

Malvern Hills

322,604

Manchester

5,059,228

Mansfield

630,780

Medway

1,583,173

Melton

183,679

Mendip

547,570

Merton

1,191,601

Mid Devon

339,385

Mid Suffolk

289,407

Mid Sussex

435,328

Middlesbrough

1,358,751

Milton Keynes

1,683,413

Mole Valley

302,144

New Forest

649,460

Newark and Sherwood

486,569

Newcastle under Lyme

600,250

Newcastle upon Tyne

2,241,200

Newham

2,820,834

North Devon

528,165

North Dorset

266,754

North East Derbyshire

421,289

North East Lincolnshire

1,229,616

North Hertfordshire

652,247

North Kesteven

389,523

North Lincolnshire

978,702

North Norfolk

502,439

North Somerset

1,131,450

North Tyneside

1,309,039

North Warwickshire

268,156

North West Leicestershire

376,977

Northampton

1,237,889

Northumberland

1,733,828

Norwich

1,140,295

Nottingham

2,716,639

Nuneaton and Bedworth

672,465

Oadby and Wigston

186,662

Oldham

1,591,694

Oxford

866,931

Pendle

686,031

Peterborough

1,410,857

Plymouth

1,871,444

Poole

675,314

Portsmouth

1,610,753

Preston

891,223

Purbeck

198,750

Reading

1,072,266

Redbridge

1,469,399

Redcar and Cleveland

1,024,148

Redditch

442,083

Reigate and Banstead

559,459

Ribble Valley

171,545

Richmond upon Thames

833,212

Richmondshire

179,454

Rochdale

1,625,820

Rochford

284,210

Rossendale

390,540

Rother

450,948

Rotherham

1,560,314

Rugby

462,361

Runnymede

333,932

Rushcliffe

336,256

Rushmoor

537,580

Rutland

121,121

Ryedale

230,158

Salford

2,185,282

Sandwell

2,401,630

Scarborough

778,061

Sedgemoor

761,108

Sefton

1,767,590

Selby

312,927

Sevenoaks

431,312

Sheffield

3,303,293

Shepway

649,204

Shropshire

1,314,715

Slough

1,025,162

Solihull

878,035

South Bucks

225,930

South Cambridgeshire

417,407

South Derbyshire

314,371

South Gloucestershire

1,139,200

South Hams

373,595

South Holland

396,146

South Kesteven

578,537

South Lakeland

353,891

South Norfolk

480,960

South Northamptonshire

239,409

South Oxfordshire

431,521

South Ribble

439,749

South Somerset

799,943

South Staffordshire

392,342

South Tyneside

1,189,042

Southampton

1,740,509

Southend on Sea

1,228,568

Southwark

3,393,874

Spelthorne

400,657

St Albans

438,737

St Edmundsbury

468,715

St Helens

1,271,078

Stafford

499,237

Staffordshire Moorlands

346,535

Stevenage

520,529

Stockport

1,349,722

Stockton on Tees

1,313,851

Stoke on Trent

1,736,182

Stratford on Avon

462,107

Stroud

412,415

Suffolk Coastal

457,172

Sunderland

2,321,230

Surrey Heath

279,347

Sutton

1,064,597

Swale

797,204

Swindon

1,094,024

Tameside

1,662,183

Tamworth

362,616

Tandridge

294,770

Taunton Deane

563,703

Teignbridge

630,956

Telford and Wrekin

1,155,166

Tendring

962,953

Test Valley

472,871

Tewkesbury

336,178

Thanet

1,187,246

Three Rivers

366,779

Thurrock

901,153

Tonbridge and Malling

498,407

Torbay

1,137,906

Torridge

346,342

Tower Hamlets

3,881,970

Trafford

1,120,495

Tunbridge Wells

484,158

Uttlesford

233,691

Vale of White Horse

436,295

Wakefield

2,385,884

Walsall

2,137,228

Waltham Forest

2,179,682

Wandsworth

2,447,476

Warrington

1,106,189

Warwick

500,996

Watford

558,973

Waveney

697,149

Waverley

399,571

Wealden

490,517

Wellingborough

454,598

Welwyn Hatfield

600,855

West Berkshire

627,091

West Devon

248,374

West Dorset

434,912

West Lancashire

526,857

West Lindsey

458,111

West Oxfordshire

400,185

West Somerset

223,522

Westminster

2,421,284

Weymouth and Portland

455,164

Wigan

1,902,188

Wiltshire

2,018,760

Winchester

399,358

Windsor and Maidenhead

519,042

Wirral

2,234,386

Woking

398,109

Wokingham

349,850

Wolverhampton

1,977,115

Worcester

569,566

Worthing

549,408

Wychavon

466,328

Wycombe

724,691

Wyre

623,117

Wyre Forest

561,741

York

857,005

Wales

Blaenau Gwent

589,022

Bridgend

841,844

Caerphilly

1,045,589

Cardiff

2,110,111

Carmarthenshire

929,120

Ceredigion

356,359

Comhairle nan Eilean Siar

164,602

Conwy

659,748

Denbighshire

568,170

Flintshire

719,672

Gwynedd

653,200

Isle of Anglesey

376,828

Merthyr Tydfil

436,505

Monmouthshire

374,298

Neath Port Talbot

949,055

Newport

1,000,697

Orkney

104,606

Pembrokeshire

610,934

Powys

598,917

Rhondda Cynon Taf

1,493,363

Shetland

83,170

Swansea

1,442,129

Torfaen

662,896

Vale of Glamorgan

634,724

Wrexham

722,474

Scotland

Aberdeen

994,590

Aberdeenshire

898,607

Angus

617,253

Argyll and Bute

505,935

Clackmannanshire

340,673

Dumfries and Galloway

967,125

Dundee

1,284,890

East Ayrshire

879,320

East Dunbartonshire

374,426

East Lothian

542,696

East Renfrewshire

264,620

Edinburgh

2,843,243

Falkirk

908,441

Fife

2,153,895

Glasgow

6,200,858

Highland

1,193,433

Inverclyde

686,325

Midlothian

488,876

Moray

396,407

North Ayrshire

1,073,196

North Lanarkshire

2,258,213

Perth and Kinross

694,556

Renfrewshire

1,216,850

Scottish Borders

662,940

South Ayrshire

691,064

South Lanarkshire

1,807,810

Stirling

382,704

West Dunbartonshire

870,085

West Lothian

1,081,340.

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

Article 2(5)

SCHEDULE 1AAdditional amount of subsidy: Activities to reduce fraud and error

Article 12(1)(c)

Interpretation1

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 A17/201420;

  • “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 20142

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 20153

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: supplementary4

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.

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

Article 4(b)

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

RELEVANT YEAR 2015-2016

Authority

Weekly rent limit (£)

Adur

96.11

Arun

93.35

Ashfield

70.31

Ashford

91.47

Babergh

91.80

Barking & Dagenham

101.67

Barnet

118.30

Barnsley

76.97

Barrow

77.12

Basildon

89.52

Bassetlaw

74.46

Birmingham

85.11

Blackpool

73.10

Bolsover

84.21

Bournemouth

85.28

Brent

119.20

Brentwood

97.05

Brighton & Hove

86.74

Bristol

83.44

Broxtowe

76.34

Bury

78.90

Cambridge

105.62

Camden

124.21

Cannock Chase

75.58

Canterbury

90.97

Castle Point

91.10

Central Bedfordshire

104.71

Charnwood

76.56

Cheltenham

82.61

Cheshire West & Chester

84.83

Chesterfield

81.96

City of London

111.81

City of York

81.61

Colchester

89.95

Corby

81.13

Cornwall

72.94

Crawley

106.04

Croydon

109.11

Dacorum

111.70

Darlington

72.92

Dartford

92.05

Derby

80.82

Doncaster

75.26

Dover

86.71

Dudley

85.19

Durham

72.38

Ealing

105.47

East Devon

83.42

East Riding

81.37

Eastbourne

79.65

Enfield

104.23

Epping Forest

102.18

Exeter

77.41

Fareham

92.61

Gateshead

78.70

Gloucester City

80.07

Gosport

86.34

Gravesham

92.04

Great Yarmouth

77.12

Greenwich

105.93

Guildford

113.82

Hackney

102.62

Hammersmith

119.12

Haringey

108.58

Harlow

94.96

Harrogate

82.99

Harrow

116.96

Havering

99.27

High Peak

75.32

Hillingdon

111.71

Hinckley & Bosworth

80.55

Hounslow

105.77

Hull

77.22

Ipswich

87.84

Islington

122.41

Kensington

131.74

Kettering

84.03

Kingston upon Thames

115.33

Kirklees

71.87

Lambeth

111.49

Lancaster

79.50

Leeds

75.87

Leicester

74.27

Lewes

92.17

Lewisham

98.92

Lincoln

70.77

Luton

89.27

Manchester

75.10

Mansfield

75.30

Medway

84.29

Melton

79.18

Mid Devon

80.68

Mid Suffolk

84.49

Milton Keynes

88.18

North East Derbyshire

83.59

New Forest

102.26

Newark & Sherwood

80.49

Newcastle upon Tyne

77.45

Newham

99.46

North Kesteven

78.82

North Tyneside

78.72

North Warwickshire

91.02

Northampton

85.67

Northumberland

70.22

Norwich

81.72

Nottingham

77.20

Nuneaton & Bedworth

80.06

North West Leicestershire

81.14

Oadby & Wigston

81.66

Oldham

72.17

Oxford City

112.63

Poole

87.82

Portsmouth

87.33

Reading

107.52

Redbridge

105.85

Redditch

80.74

Richmondshire

79.81

Rotherham

78.12

Rugby

88.93

Runnymede

112.72

Salford

77.14

Sandwell

83.83

Sedgemoor

79.75

Selby

80.51

Sheffield

74.05

Shepway

86.46

Shropshire

84.16

Slough

109.05

Solihull

84.59

South Cambridgeshire

109.65

South Derbyshire

81.60

South Holland

77.98

South Kesteven

81.15

South Tyneside

77.22

Southampton

87.29

Southend-on-Sea

88.62

Southwark

111.00

St Albans

116.38

Stevenage

100.93

Stockport

77.05

Stoke-on-Trent

72.52

Stroud

84.84

Sutton

110.16

Swindon

85.38

Tamworth

82.56

Tandridge

101.26

Taunton Deane

84.87

Tendring

85.95

Thanet

83.39

Thurrock

88.37

Tower Hamlets

114.00

Uttlesford

102.48

Waltham Forest

105.26

Wandsworth

128.34

Warwick

96.72

Waveney

81.44

Waverley

116.95

Wealden

87.53

Welwyn Hatfield

110.99

West Lancashire

78.24

Westminster

128.49

Wigan

80.26

Wiltshire

90.39

Winchester

104.12

Woking

106.44

Wokingham

117.21

Wolverhampton

82.23.

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

Article 4(c)

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” (£)

Caerphilly

74.09

4.82

Cardiff

84.91

4.27

Carmarthenshire

74.55

3.97

Denbighshire

72.40

3.89

Flintshire

75.34

3.29

Isle of Anglesey

71.25

3.90

Pembrokeshire

76.31

3.78

Powys

76.31

4.04

Swansea

73.27

3.97

Vale of Glamorgan

81.95

4.26

Wrexham

74.52

4.01.

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.