Housing Act 1985

Housing subsidy

421 Housing subsidy.

(1) Housing subsidy is payable for each year to housing authorities.

(2) Housing subsidy shall be credited—

(a) if paid to a local housing authority, to the authority’s Housing Revenue Account, and

(b) if paid to another body, to that body’s housing account or appropriate housing account.

(3) Housing subsidy shall be paid by the Secretary of State at such times, in such manner and subject to such conditions as to records, certificates, audit or otherwise as he may, with the agreement of the Treasury, determine.

(4) Payment of housing subsidy is subject 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.

422 Calculation of housing subsidy for local housing authorities.

(1) The amount of the housing subsidy payable to a local housing authority for a year (the year of account) shall be calculated from the amounts which, in accordance with sections 423 to 425, are the authority's—

(a) base amount (BA),

(b) housing costs differential (HCD), and

(c) local contribution differential (LCD),

for the year, and shall be so calculated by using the formula BA + HCD — LCD.

(2) If the amount so calculated is nil or a negative amount, no housing subsidy is payable to the authority for that year.

423 The base amount.

(1) A local housing authority’s base amount for a year of account is, subject to any adjustment under subsection (2), the amount calculated for the preceding year under section 422, that is to say, the amount of the housing subsidy payable to the authority for that year or, if none was payable, nil or a negative amount, as the case may be.

(2) If the Secretary of State is of opinion that particular circumstances require it, he may adjust the base amount for amy year by increasing or decreasing it, either generally or in relation to any description of authority or any particular authority.

424 The housing costs differential.

(1) A local housing authority’s housing costs differential for a year of account is the amount by which their reckonable expenditure for that year exceeds their reckonable expenditure for the preceding year (and accordingly is nil or, as the case may be, a negative amount if the reckonable expenditure for the year is the same as or less than that for the preceding year).

(2) A local housing authority’s reckonable expenditure for a year is the aggregate of—

(a) so much of the expenditure incurred by the authority in that year and falling to be debited to the authority’s Housing Revenue Account as the Secretary of State may determine, and

(b) so much of any other expenditure incurred by the authority in that year, or treated as so incurred in accordance with a determination made by the Secretary of State, as the Secretary of State may determine to be taken into account for the purposes of housing subsidy.

(3) A determination may be made for all local housing authorities or different determinations may be made—

(a) for authorities of different descriptions, or

(b) for authorities in England and authorities in Wales, or in different parts of England or Wales; or

(c) for individual authorities;

and a determination may be varied or revoked in relation to all or any of the authorities for which it was made.

(4) Before making a determination for all local housing authorities the Secretary of State shall consult organisations appearing to him to be representative of local housing authorities.

425 The local contribution differential.

(1) A local housing authority’s local contribution differential for a year of account is the amount by which their reckonable income for that year exceeds their reckonable income for the preceding year (and accordingly is nil or, as the case may be, a negative amount if their reckonable income for the year is the same as or less than that for the preceding year).

(2) An authority’s reckonable income for a year is the amount which, in accordance with any determination made by the Secretary of State, the authority are assumed to receive for that year as income which they are required to carry to their Housing Revenue Account including—

(a) any contribution made by the authority out of their general rate fund, and

(b) any rent rebate subsidy payable under section 32 of the [1982 c. 24.] Social Security and Housing Benefit Act 1982,

but excluding any other subsidy, grant or contribution.

(3) A determination shall state the assumptions on which it is based and the method of calculation used in it, and in making it the Secretary of State shall have regard, amongst other things, to past and expected movements in incomes, costs and prices.

(4) A determination may be made for all local housing authorities or different determinations may be made—

(a) for authorities of different descriptions, or

(b) for authorities in England and authorities in Wales, or in different parts of England and Wales, or

(c) for individual authorities.

(5) Before making a determination for all local housing authorities the Secretary of State shall consult organisations appearing to him to be representative of local housing authorities.

(6) A determination shall be made known to the authorities for which it is made in the year preceding the year of account for which it is to have effect.

426 Calculation of housing subsidy for other authorities.

(1) Sections 422 to 425 (calculation of housing subsidy) apply in relation to new town corporations and the Development Board for Rural Wales as they apply in relation to local housing authorities, but subject to the following provisions of this section.

(2) In relation to a new town corporation—

(a) sections 424(2) and 425(2) (reckonable expenditure and income) have effect with the substitution for references to the authority’s Housing Revenue Account of references to the corporation’s housing account, and

(b) section 425(2)(a) (reckonable income to include rate fund contributions) has effect with the substitution for the reference to the authority’s general rate fund of a reference to the corporation’s general revenue account.

(3) In relation to the Board—

(a) sections 424(2) and 425(2) (reckonable expenditure and income) have effect with the substitution for references to the authority’s Housing Revenue Account of references to the Board’s housing account, and

(b) section 425(2)(a) (reckonable income to include rate fund contributions) has effect with the substitution for the reference to any contribution made by the authority out of their general rate fund of a reference to any contribution made by the Board out of revenue.

(4) The consultation required by section 424(4) or 425(5) (consultation before making general determinations) shall be with organisations appearing to the Secretary of State to be representative of new town corporations or, as the case may be, with the Developmental Board for Rural Wales.

(5) The Commission for the New Towns shall be treated as a separate body in respect of each of its new towns.

427 Recoupment of subsidy in certain cases.

(1) Where housing subsidy has been paid to a local housing authority or other body and it appears to the Secretary of State that—

(a) the purpose for which it was paid has not been fulfilled or not completely or adequately or not without unreasonable delay, and

(b) that the case falls within rules published by him,

he may recover from the authority or other body the whole or such part of the payment as he may determine in accordance with the rules, with interest from such time and at such rates as he may so determine.

(2) A sum recoverable under this section may, without prejudice to other methods of recovery, be recovered by withholding or reducing housing subsidy.

(3) The withholding or reduction under this section of housing subsidy for a year does not affect the base amount for the following year.