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The Rent Officers (Housing Benefit and Universal Credit Functions) (Local Housing Allowance Amendments) Order 2013

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EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends the Rent Officers (Housing Benefit Functions) Order 1997 (the “Rent Officers Order”), the Rent Officers (Housing Benefit Functions) (Scotland) Order 1997 (the “Rent Officers Scotland Order”) and the Rent Officers (Universal Credit Functions) Order 2013 (the “UC Order”).

Articles 2 and 3 amend the Rent Officers Order and the Rent Officers Scotland Order respectively to provide for how the local housing allowance (“LHA”) rate will be calculated. The amendments provide that the rate will be determined differently depending on the category of dwelling for which the rate is being determined and the broad rental market area in which the dwelling is situated.

The amendments insert a table into Schedule 3B to each of the Rent Officers Order and the Rent Officers Scotland Order. If the broad rental market area is listed in column 1 of that table then the LHA rate will depend on whether a category of dwelling is listed in column 2 of the table in relation to that broad rental market area.

If the category of dwelling is listed in column 2 of the table in relation to that broad rental market area, then the LHA rate will be the lower of either:

  • the previous LHA rate increased by 4 per cent; or

  • the maximum local housing allowance for that category of dwelling.

If the category of dwelling is not listed in column 2 of the table in relation to that broad rental market area, then the LHA rate will be the lower of either:

  • the rent at the 30th percentile of listed rents; or

  • the previous LHA rate increased by 1 per cent.

For all broad rental market areas not listed in column 1 of the table, the LHA rate will be the lower of the rent at the 30th percentile of listed rents or the previous LHA rate increased by 1 per cent.

Articles 2 and 3 also amend those Orders to provide that the determinations made by the rent officers will be based on the list of market rents payable in the 12 month period ending on the 30th day of the September preceding the date of the determination. They also make consequential amendments to Schedule 3B to those Orders.

Article 4 makes similar amendments to the UC Order. It also changes the date that LHA determinations and broad rental market area determinations take effect. Those determinations will now take effect on 7th April.

A full impact assessment has not been produced for this instrument as it has no new impact on business or civil society organisations.

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