This Order makes amendments to the Income-related Benefits (Subsidy to Authorities) Order 1998 (S.I. 1998/562) (“the principal Order”) in respect of years commencing on or after 1st April 1998. All but one of the amendments (that made by article 6) take effect in respect of the years commencing on or after 1st April 1999. The authority for retrospective amendments is section 140F of the Social Security Administration Act 1992.

Article 3 enables the Secretary of State to collect information about prosecutions that increase the subsidy payable to authorities under Schedule 5 (as amended by this Order).

Article 4 and column (7) of Schedule 1 (as amended by Schedule 1 to this Order) specify for each local authority the subsidy percentage generally applicable to council tax benefit expenditure.

Article 5 provides that the additional subsidy payable to Scottish Homes is not to exceed £1,010,190.

Article 6 reduces the subsidy percentage applicable to fraudulent overpayments made in previous years from 95 per cent. to 80 per cent. This amendment takes effect in respect of the year commencing on 1st April 1998 and years thereafter. It brings the subsidy payable on fraudulent overpayments made in previous years into line with the subsidy payable on fraudulent overpayments made in the year to which the subsidy claim relates.

Article 7 makes an amendment consequential on the Social Security (Claims and Information) Regulations 1999 (S.I. 1999/3108).

Article 8 amends article 21 of the principal Order to make changes consequential on the substitution of a new Schedule 5 by article 13 of this Order.

Article 9 replaces Schedule 1 to the principal Order with a new Schedule specifying amounts to be used in the calculation of subsidy for each authority and includes subsidy percentage rates for calculating council tax subsidy that vary from authority to authority.

Article 10 makes an amendment consequential on the Social Security (Miscellaneous Amendments) (No. 2) Regulations 1999 (S.I. 1999/2556).

Article 11 includes amounts relating to water, sewerage or allied environment services deducted from eligible rent as “ineligible amounts”.

Article 12 amends thresholds for subsidy on rent allowances.

Article 13 replaces Schedule 5 with a new Schedule which provides for additional subsidy to be paid according to an authority’s successful fraud prosecutions and compliance with the verification framework, changes references to adjudication officers to references to the Secretary of State and adjusts the way additions to subsidy are calculated in relation to the years commencing on or after 1st April 2000.

Article 14 modifies the references in Schedule 5 to decisions of the Secretary of State to reflect the period for which adjudication officers made determinations. These modifications are in line with the dates on which the Social Security (Decisions and Appeals) Regulations 1999 (S.I. 1999/991) came into force in relation to the various benefits.

This Order does not impose a charge on business.