Local Government Finance Act 1988

6 The following shall be inserted after section 31—

“Community charge benefits

31A Nature of benefits

(1) In relation to England and Wales, regulations shall provide that where a person is entitled to a community charge benefit in respect of a charging authority’s personal community charge the benefit shall take such of the following forms as is prescribed in the case of the person—

(a) a payment or payments by the authority to the person;

(b) a reduction in the amount the person is liable to pay to the authority in respect of the charge as it has effect for the relevant chargeable financial year;

(c) both such payment or payments and such reduction.

(2) In relation to Scotland, regulations shall provide that where a person is entitled to a community charge benefit in respect of a personal community charge determined by a regional, islands or district council the benefit shall take such of the following forms as is prescribed in the case of the person—

(a) a payment or payments to the person by the levying authority to which the charge is payable;

(b) a reduction in the amount the person is liable to pay in respect of the charge as it has effect for the relevant chargeable financial year;

(c) both such payment or payments and such reduction.

(3) Regulations shall provide that where a person is entitled to a community charge benefit in respect of a contribution period the benefit shall take such of the following forms as is prescribed in the case of the person—

(a) a payment or payments by the relevant authority to the person;

(b) the reductions mentioned in subsection (4) below;

(c) both such payment or payments and such reductions.

(4) The reductions are—

(a) a reduction in the amount the person is liable to pay to the charge payer in respect of the contribution period, and

(b) a consequential reduction in the amount the charge payer is liable to pay in respect of the charge concerned as it has effect for the relevant chargeable financial year.

(5) For the purposes of subsections (1) and (2) above the relevant chargeable financial year is the chargeable financial year in which the relevant day falls; and the relevant day is the day in respect of which the person concerned is entitled to the benefit.

(6) For the purposes of subsection (3) above the relevant authority is—

(a) in relation to England and Wales, the authority to which an amount is payable in respect of the collective community charge concerned under section 15 of the 1988 Act;

(b) in relation to Scotland, the levying authority to which the collective community charge is payable.

(7) For the purposes of subsection (4) above the charge payer is—

(a) in relation to England and Wales, the person who is liable to pay an amount in respect of the collective community charge concerned under section 15 of the 1988 Act;

(b) in relation to Scotland, the person who is liable to pay the collective community charge under section 11(5) of the 1987 Act.

(8) For the purposes of subsection (4) above the relevant chargeable financial year is the chargeable financial year in which the contribution period falls.

(9) Regulations under subsection (1), (2) or (3) above may include such supplementary, incidental or consequential provisions as appear to the Secretary of State to be necessary or expedient; and such provisions may include provisions amending or adapting provisions of the 1987 Act or the 1988 Act.

31B Arrangements for benefits

(1) Any community charge benefit provided for by virtue of a scheme under section 20(1) above (in this Act referred to as a community charge benefit scheme) is to be administered by the appropriate authority.

(2) For the purposes of this section in its application to England and Wales, the appropriate authority in relation to a particular benefit is the charging authority as regards whose personal or collective community charge a person is entitled to the benefit.

(3) For the purposes of this section in its application to Scotland, the appropriate authority in relation to a particular benefit is the levying authority—

(a) to which the personal community charge is payable by a person entitled to the benefit; or

(b) in whose area is situated the premises in respect of residence in which for a contribution period a collective community charge contribution is payable.

(4) Charging authorities may agree that one shall carry out responsibilities relating to community charge benefits on another’s behalf.

(5) Levying authorities may agree that one shall carry out responsibilities relating to community charge benefits on another’s behalf.

(6) A charging authority or levying authority may modify any part of the community charge benefit scheme administered by the authority—

(a) so as to provide for disregarding, in determining a person’s income, the whole or part of any war disablement pension or war widow’s pension payable to that person;

(b) to such extent in other respects as may be prescribed,

and any such modifications may be adopted by resolution of an authority.

(7) Modifications other than such modifications as are mentioned in subsection (6)(a) above shall be so framed as to secure that, in the estimate of the authority adopting them, the total of the benefits which will be allowed by the authority for any year will not exceed the permitted total of benefits for that year.

(8) An authority which has adopted modifications may by resolution revoke or vary them.

(9) If the community charge benefit scheme includes power for an authority to exercise a discretion in allowing community charge benefits, the authority shall not exercise that discretion so that the total of the benefits allowed by it for any year exceeds the permitted total of benefits for that year.

(10) In relation to any authority the permitted total of benefits for any year shall be such amount as is calculated in accordance with rules contained in an order made by the Secretary of State.

31C Adjudication

(1) Regulations shall provide that, where a person has claimed a community charge benefit as regards—

(a) a personal or collective community charge of a charging authority, or

(b) a personal or collective community charge payable to a levying authority,

the authority shall notify the person of its determination of the claim.

(2) Any such notification shall be given in such form as may be prescribed.

(3) Regulations shall make provision for reviews of determinations relating to community charge benefits.

31D Excess benefits

(1) Regulations may make provision as to any case where a charging authority or a levying authority has allowed a community charge benefit to a person and the amount allowed exceeds the amount to which he is entitled in respect of the benefit.

(2) As regards any case where the benefit is in respect of a personal community charge the regulations may provide that—

(a) a sum equal to the excess shall be due from the person concerned to the authority (whatever the form the benefit takes);

(b) any liability under any provision included under paragraph (a) above shall be met by such method mentioned in subsection (3) below as is prescribed as regards the case concerned, or by such combination of two or all three of the methods as is prescribed as regards the case concerned.

(3) The methods are—

(a) payment by the person concerned;

(b) addition to any amount payable in respect of the charge concerned;

(c) deduction from any other income-related benefit which he may be allowed by the authority concerned.

(4) As regards any case where the benefit is in respect of a contribution period the regulations may provide that—

(a) a sum equal to the excess shall be due from the person concerned to the authority (whatever the form the benefit takes);

(b) any liability under any provision included under paragraph (a) above shall be met by such method mentioned in subsection (5) below as is prescribed as regards the case concerned, or by such combination of the methods as is prescribed as regards the case concerned;

(c) there is to be no adjustment as between the person concerned and the charge payer, or as between the charge payer and the authority concerned.

(5) The methods are—

(a) payment by the person concerned;

(b) deduction from any other income-related benefit which he may be allowed by the authority concerned.

(6) In a case where the regulations provide that a sum or part of a sum is to be paid, and the sum or part is not paid on or before such day as may be prescribed, the regulations may provide that the sum or part shall be recoverable in a court of competent jurisdiction.

(7) For the purposes of subsection (4) above the charge payer is—

(a) in relation to England and Wales, the person who is liable to pay an amount in respect of the collective community charge concerned under section 15 of the 1988 Act;

(b) in relation to Scotland, the person who is liable to pay the collective community charge under section 11(5) of the 1987 Act.

(8) The regulations may provide that they are not to apply as regards any case falling within a prescribed category.

31E Shortfall in benefits

(1) Regulations may make provision as to any case where a charging authority or a levying authority has allowed a community charge benefit to a person and the amount allowed is less than the amount to which he is entitled in respect of the benefit.

(2) In particular, as regards any prescribed case where the benefit is in respect of a contribution period the regulations may provide that—

(a) a sum equal to the difference shall be due from the authority to the person concerned;

(b) any liability under any provision included under paragraph (a) above shall be met by payment and not by such reductions as are mentioned in section 31A(4) above (whatever the form the benefit actually allowed takes);

(c) there is to be no adjustment as between the person concerned and the charge payer, or as between the charge payer and the authority concerned.

(3) For the purposes of subsection (2) above the charge payer is—

(a) in relation to England and Wales, the person who is liable to pay an amount in respect of the collective community charge concerned under section 15 of the 1988 Act;

(b) in relation to Scotland, the person who is liable to pay the collective community charge under section 11(5) of the 1987 Act.

31F Community charge benefit finance

(1) For each year the Secretary of State shall pay a subsidy (to be known as community charge benefit subsidy) to each charging authority and to each levying authority.

(2) The amount of community charge benefit subsidy to be paid to a charging authority or a levying authority for a year shall be calculated in such manner as may be specified by an order made by the Secretary of State.

(3) Any such order shall require the calculation to be made by reference to an amount found by—

(a) taking the total amount allowed by the authority for the year by way of community charge benefits, and

(b) adjusting that total by making such additions or subtractions (or both) as are specified in the order.

(4) The Secretary of State may deduct, from the amount which would (apart from this subsection) be payable to a charging or levying authority by way of community charge benefit subsidy for a year, such amount as he considers it unreasonable to pay by way of such subsidy.

(5) The Secretary of State may pay to an authority, as part of the amount of community charge benefit subsidy payable to the authority for a year, an additional sum in respect of the costs of administering community charge benefits; and any such additional sum shall be calculated in a manner specified by an order made by the Secretary of State.

(6) Subsidy under this section shall be payable by the Secretary of State at such time and in such manner as the Treasury may direct, but subject—

(a) 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; and

(b) to such conditions as to records, certificates, audit or otherwise as the Secretary of State may, with the approval of the Treasury, impose.

(7) 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.

31G Information

(1) The Secretary of State may supply to charging authorities and levying authorities such information of a prescribed description obtained by reason of the exercise of any of his functions under the benefit Acts as they may require in connection with any of their functions relating to community charge benefits.

(2) Charging authorities and levying authorities shall supply to the Secretary of State such information of a prescribed description obtained by reason of the exercise of their functions relating to community charge benefits as he may require in connection with any of his functions under the benefit Acts.

(3) It shall also be the duty of each charging authority and of each levying authority to supply the Secretary of State, in the prescribed manner and within the prescribed time—

(a) with such information as he may require concerning its performance of any of its functions relating to community charge benefits;

(b) with such information as he may require to enable him to prepare estimates of likely future amounts of community charge benefit subsidy; and

(c) with such information as he may require to enable him to decide questions relating to the development of policy as regards community charge benefits.

(4) Each charging authority shall take such steps as appear to it appropriate for the purpose of securing that any person who may be entitled to a community charge benefit as regards a personal or collective community charge of the authority becomes aware that he may be entitled to it.

(5) Each levying authority shall take such steps as appear to it appropriate for the purpose of securing that any person who may be entitled to a community charge benefit in respect of a personal community charge payable to the authority becomes aware that he may be entitled to it.

(6) Each charging authority and each levying authority shall make copies of the community charge benefit scheme, with any modifications adopted by it under section 31B above, available for public inspection at its principal office at all reasonable hours without payment.”