This Statutory Instrument has been made in consequence of defects in S.I. 2020/976 and is being issued free of charge to all known recipients of that Statutory Instrument.
2021 No. 1031
Social Security

The Income-related Benefits (Subsidy to Authorities) and Discretionary Housing Payments (Grants) Amendment Order 2021

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), 140C(1) and (4), 140F(2) and 189(1), (4), (5), (6) and (7) of the Social Security Administration Act 19921 (“the Administration Act”) and section 70(2) and (6) of the Child Support, Pensions and Social Security Act 20002.
In accordance with section 189(8) of the Administration Act3, the Secretary of State has obtained the consent of the Treasury.
In accordance with section 176(1)(b) of the Administration Act4, the Secretary of State has consulted with organisations appearing to the Secretary of State to be representative of the authorities concerned.

PART 1PRELIMINARY

Citation, commencement and extent1.

(1)

This Order may be cited as the Income-related Benefits (Subsidy to Authorities) and Discretionary Housing Payments (Grants) Amendment Order 2021 and comes into force on 31st October 2021.

(2)

Any amendment made by this Order has the same extent as the provision amended.

PART 2AMENDMENT OF THE INCOME-RELATED BENEFITS (SUBSIDY TO AUTHORITIES) ORDER 1998

Amendment of the Income-related Benefits (Subsidy to Authorities) Order 1998 and effect of amendments2.

(1)

The Income-related Benefits (Subsidy to Authorities) Order 19985 is amended in accordance with the following provisions of this Part.

(2)

Articles 3 and 4 and Schedules 1 and 2 have effect for the purpose of determining subsidy payable for the relevant year6 beginning with 1st April 2020.

(3)

In relation to article 5—

(a)

paragraph (1) has effect from 1st April 2020;

(b)

paragraph (2) has effect for the purpose of determining subsidy payable for the relevant year beginning with 1st April 2020;

(c)

paragraph (3) has effect for the purpose of determining subsidy payable for the relevant year beginning with 1st April 2021,

and Schedules 3 and 4 have effect accordingly.

(4)

Article 6 has effect for the purpose of determining subsidy payable for the relevant year beginning with 1st April 2021.

(5)

In paragraphs (2), (3) and (4), “relevant year” means the year in respect of which a claim for subsidy is made.

The amount of an authority’s subsidy3.

For Schedule 1 (sums to be used in the calculation of subsidy) substitute the Schedule 1 set out in Schedule 1 to this Order.

Housing Benefit Award Accuracy Initiative4.

(1)

In article 12, after paragraph (1)(bza) insert—

“(bzb)

any additional amount specified by Schedule1ZC (additional amount of subsidy: Housing Benefit Award Accuracy Initiative);”.

(2)

After Schedule 1ZB, insert the Schedule 1ZC set out in Schedule 2 to this Order.

Rent rebate deductions from the subsidy of an authority in Wales5.

(1)

For article 20A substitute—

“Deductions from subsidy for rebate for dwellings within the Housing Revenue Account: authorities in Wales20A.

(1)

Paragraph (2) applies in relation to an authority in Wales.

(2)

Where paragraph 2 of Schedule 4A applies, the deduction from subsidy referred to in article 13(1) shall be calculated in accordance with paragraph 3 of that Schedule.”.

(2)

For Schedule 4A, substitute the Schedule 4A set out in Schedule 3 to this Order.

(3)

In the substituted Schedule 4A—

(a)

for paragraph 3(2) substitute—

“(2)

The rebate proportion for the purposes of sub-paragraph (1) for the relevant year beginning with 1st April 2021 is 0.682.”;

(b)

in paragraph 4—

(i)

for “2020” substitute “2021”;

(ii)

for the Table, substitute the Table set out in Schedule 4 to this Order.

Additional amount of subsidy: Verify Earnings and Pension Alerts Service6.

In Schedule 1ZB (additional amount of subsidy: Verify Earnings and Pension Alerts Service) for paragraph 2 substitute—

“Additional amount: relevant year beginning with 1st April 20212.

The additional amount of subsidy for an authority for the relevant year beginning with 1st April 2021 is the amount specified for that authority in the Housing Benefit Circular HB S6/2021 published by the Department for Work and Pensions on 19th April 20217.”.

Minor amendments7.

Schedule 5 to this Order (which makes minor amendments) has effect.

PART 3AMENDMENT OF THE DISCRETIONARY HOUSING PAYMENTS (GRANTS) ORDER 2001

Amendment of the Discretionary Housing Payments (Grants) Order 2001 and effect of amendments8.

(1)

The Discretionary Housing Payments (Grants) Order 20018 is amended as follows.

(2)

The amendments made by this article have effect in respect of any year9 commencing on or after 1st April 2021.

(3)

Article 2 (determining the amount of grant) is renumbered as article 2(1) and—

(a)

in the renumbered article 2(1), in sub-paragraph (a)—

(i)

omit “and council tax benefit”; and

(ii)

at the end insert “and relevant awards of universal credit”;

(b)

after the renumbered article 2(1) insert—

“(2)

For the purpose of paragraph (1), a “relevant award of universal credit” means an award of universal credit, the calculation of which includes an amount under section 11 of the Welfare Reform Act 201210, calculated in accordance with Schedule 4 to the Universal Credit Regulations 201311, or would include such an amount but for paragraph 3(h) or (i) of Schedule 1 to those Regulations.”.

(4)

In article 3 (claims)—

(a)

in paragraph (2)—

(i)

omit sub-paragraphs (a) to (d);

(ii)

for sub-paragraph (e), substitute—

“(e)

by 31st October in a relevant year—

(i)

showing the amount of payments it has made from 1st April to 30th September of that relevant year; and

(ii)

estimating the total amount of payments it believes it will make between 1st April and 31st March of that relevant year.”;

(b)

in paragraph (3), omit sub-paragraph (b).

(5)

For article 6 (payment), substitute—

“6.

(1)

Subject to paragraph (2) and article 6A, the Secretary of State may make payments by way of instalments by reference to claims submitted in accordance with article 3 but no final payment shall be made until the Secretary of State is satisfied that no request for information in accordance with article 4 is outstanding.

(2)

An initial instalment payment for the relevant year may be made without reference to any claim submitted in accordance with article 3.”

Signed by authority of the Secretary of State for Work and Pensions

Will Quince
Parliamentary Under-Secretary of State for Welfare Delivery
Department for Work and Pensions

We consent.

James Morris
Rebecca Harris
Two of the Lords Commissioners of Her Majesty’s Treasury

SCHEDULE 1Substitution of Schedule 1 to the Income-related Benefits (Subsidy to Authorities) Order 1998

Article 3

“SCHEDULE 1Sums to be used in the calculation of subsidy

Article 12(1)(b)

Relevant Year 2020-2021

Local authority

Administration subsidy (£)

England

Adur

204,793

Allerdale

299,716

Amber Valley

366,608

Arun

517,407

Ashfield

480,401

Ashford

404,869

Babergh

215,987

Barking and Dagenham

1,324,425

Barnet

2,002,179

Barnsley

934,078

Barrow-in-Furness

258,013

Basildon

695,055

Basingstoke and Deane

468,510

Bassetlaw

353,292

Bath and North East Somerset

456,184

Bedford

541,151

Bexley

880,915

Birmingham

6,270,351

Blaby

185,270

Blackburn with Darwen

592,472

Blackpool

1,023,012

Bolsover

280,916

Bolton

1,282,493

Boston

255,521

Bournemouth, Christchurch and Poole

1,423,664

Bracknell Forest

320,039

Bradford

2,104,804

Braintree

407,606

Breckland

403,512

Brent

2,550,427

Brentwood

154,586

Brighton and Hove

1,328,994

Bristol

2,079,830

Broadland

262,695

Bromley

1,011,197

Bromsgrove

192,541

Broxbourne

354,254

Broxtowe

295,540

Buckinghamshire

1,317,254

Burnley

403,737

Bury

654,628

Calderdale

770,310

Cambridge

414,544

Camden

1,761,120

Cannock Chase

334,267

Canterbury

480,375

Carlisle

349,040

Castle Point

229,313

Central Bedfordshire

656,140

Charnwood

393,166

Chelmsford

462,142

Cheltenham

323,322

Cherwell

371,182

Cheshire East

875,810

Cheshire West and Chester

953,909

Chesterfield

442,262

Chichester

344,807

Chorley

302,527

City of London

70,917

Colchester

607,221

Copeland

233,332

Corby

245,629

Cornwall

2,079,159

Cotswold

196,974

Coventry

1,472,318

Craven

112,218

Crawley

528,815

Croydon

1,815,457

Dacorum

538,059

Darlington

462,154

Dartford

325,647

Daventry

163,041

Derby

1,025,722

Derbyshire Dales

168,448

Doncaster

1,178,243

Dorset

1,014,841

Dover

408,093

Dudley

1,066,797

Durham

2,253,143

Ealing

2,150,701

East Cambridgeshire

221,333

East Devon

374,243

East Hampshire

247,394

East Hertfordshire

369,256

East Lindsey

540,979

East Northamptonshire

206,056

East Riding of Yorkshire

854,519

East Staffordshire

335,345

East Suffolk

727,746

Eastbourne

471,295

Eastleigh

283,460

Eden

115,759

Elmbridge

351,391

Enfield

2,327,776

Epping Forest

387,420

Epsom and Ewell

188,987

Erewash

337,792

Exeter

456,630

Fareham

228,334

Fenland

357,950

Folkestone and Hythe

442,862

Forest of Dean

228,892

Fylde

237,491

Gateshead

950,769

Gedling

335,377

Gloucester

473,035

Gosport

332,737

Gravesham

377,284

Great Yarmouth

433,964

Greenwich

1,864,547

Guildford

340,793

Hackney

3,021,376

Halton

551,704

Hambleton

191,776

Hammersmith and Fulham

1,201,186

Harborough

136,566

Haringey

2,212,237

Harlow

404,598

Harrogate

311,142

Harrow

1,035,098

Hart

158,107

Hartlepool

515,965

Hastings

474,237

Havant

366,404

Havering

857,676

Herefordshire

548,707

Hertsmere

365,826

High Peak

266,292

Hillingdon

1,285,406

Hinckley and Bosworth

214,020

Horsham

298,583

Hounslow

1,147,936

Huntingdonshire

409,779

Hyndburn

342,703

Ipswich

610,516

Isle of Wight

572,284

Isles of Scilly

4,502

Islington

1,996,914

Kensington and Chelsea

1,159,379

Kettering

296,932

King’s Lynn and West Norfolk

470,912

Kingston upon Hull

1,726,212

Kingston upon Thames

568,368

Kirklees

1,443,919

Knowsley

903,155

Lambeth

2,396,093

Lancaster

419,705

Leeds

3,399,576

Leicester

1,665,689

Lewes

348,323

Lewisham

2,334,028

Lichfield

220,549

Lincoln

434,919

Liverpool

3,167,951

Luton

1,036,852

Maidstone

494,835

Maldon

159,432

Malvern Hills

212,632

Manchester

3,197,592

Mansfield

444,492

Medway

1,026,243

Melton

109,292

Mendip

297,979

Merton

739,725

Mid Devon

222,693

Mid Suffolk

198,125

Mid Sussex

306,199

Middlesbrough

945,560

Milton Keynes

1,144,966

Mole Valley

215,380

New Forest

444,118

Newark and Sherwood

325,405

Newcastle-under-Lyme

405,669

Newcastle upon Tyne

1,393,727

Newham

2,407,480

North Devon

319,135

North East Derbyshire

307,200

North East Lincolnshire

682,163

North Hertfordshire

383,039

North Kesteven

244,574

North Lincolnshire

523,515

North Norfolk

325,431

North Somerset

636,683

North Tyneside

843,909

North Warwickshire

173,402

North West Leicestershire

229,498

Northampton

849,495

Northumberland

1,151,665

Norwich

807,826

Nottingham

1,897,789

Nuneaton and Bedworth

432,917

Oadby and Wigston

121,716

Oldham

965,516

Oxford

538,657

Pendle

343,818

Peterborough

826,545

Plymouth

1,129,872

Portsmouth

1,198,961

Preston

571,119

Reading

694,950

Redbridge

1,184,389

Redcar and Cleveland

713,776

Redditch

280,281

Reigate and Banstead

391,874

Ribble Valley

99,708

Richmondshire

103,249

Richmond upon Thames

545,549

Rochdale

1,031,522

Rochford

177,649

Rossendale

240,110

Rother

271,086

Rotherham

1,105,287

Rugby

235,383

Runnymede

247,327

Rushcliffe

210,375

Rushmoor

362,714

Rutland

70,667

Ryedale

131,755

Salford

1,441,879

Sandwell

1,672,482

Scarborough

461,403

Sedgemoor

398,305

Sefton

1,093,781

Selby

193,317

Sevenoaks

310,589

Sheffield

2,569,346

Shropshire

791,339

Slough

699,045

Solihull

589,146

Somerset West and Taunton

459,698

South Cambridgeshire

299,103

South Derbyshire

227,641

South Gloucestershire

684,356

South Hams

241,595

South Holland

233,078

South Kesteven

354,970

South Lakeland

216,871

South Norfolk

312,169

South Northamptonshire

154,788

South Oxfordshire

282,191

South Ribble

255,626

South Somerset

448,498

South Staffordshire

251,565

South Tyneside

896,022

Southampton

1,073,738

Southend-on-Sea

778,276

Southwark

1,998,237

Spelthorne

304,429

St Albans

316,640

St Helens

773,580

Stafford

309,359

Staffordshire Moorlands

191,532

Stevenage

388,610

Stockport

900,453

Stockton-on-Tees

811,331

Stoke-on-Trent

1,209,839

Stratford-on-Avon

282,801

Stroud

267,802

Sunderland

1,542,425

Surrey Heath

183,108

Sutton

658,847

Swale

538,119

Swindon

619,143

Tameside

1,020,954

Tamworth

238,717

Tandridge

213,328

Teignbridge

399,171

Telford and Wrekin

837,745

Tendring

643,002

Test Valley

298,955

Tewkesbury

211,436

Thanet

667,732

Three Rivers

234,054

Thurrock

593,317

Tonbridge and Malling

363,586

Torbay

682,791

Torridge

209,593

Tower Hamlets

2,462,720

Trafford

640,441

Tunbridge Wells

344,142

Uttlesford

160,989

Vale of White Horse

284,228

Wakefield

1,524,872

Walsall

1,350,416

Waltham Forest

1,569,524

Wandsworth

1,769,397

Warrington

551,767

Warwick

339,882

Watford

367,221

Waverley

286,654

Wealden

326,348

Wellingborough

280,662

Welwyn Hatfield

402,730

West Berkshire

384,977

West Devon

160,620

West Lancashire

311,943

West Lindsey

288,215

West Oxfordshire

232,285

West Suffolk

473,808

Westminster

1,746,386

Wigan

1,138,087

Wiltshire

1,175,037

Winchester

285,762

Windsor and Maidenhead

353,683

Wirral

1,417,662

Woking

285,746

Wokingham

236,008

Wolverhampton

1,250,377

Worcester

372,266

Worthing

363,429

Wychavon

339,607

Wyre

382,904

Wyre Forest

374,674

York

451,599

Wales

Blaenau Gwent

375,401

Bridgend

575,185

Caerphilly

772,229

Cardiff

1,601,197

Carmarthenshire

689,691

Ceredigion

250,219

Conwy

445,307

Denbighshire

412,484

Flintshire

443,870

Gwynedd

428,082

Isle of Anglesey

263,940

Merthyr Tydfil

284,129

Monmouthshire

245,948

Neath Port Talbot

651,792

Newport

658,481

Pembrokeshire

455,190

Powys

383,211

Rhondda Cynon Taf

1,029,971

Swansea

1,004,909

Torfaen

408,377

Vale of Glamorgan

450,890

Wrexham

516,502

Scotland

Aberdeen

806,471

Aberdeenshire

578,920

Angus

394,561

Argyll and Bute

319,608

Clackmannanshire

237,246

Comhairle nan Eilean Siar

97,955

Dumfries and Galloway

618,203

Dundee

880,566

East Ayrshire

550,467

East Dunbartonshire

229,933

East Lothian

323,403

East Renfrewshire

197,963

Edinburgh

2,061,389

Falkirk

597,958

Fife

1,425,345

Glasgow

4,771,508

Highland

703,350

Inverclyde

415,797

Midlothian

314,341

Moray

270,772

North Ayrshire

736,746

North Lanarkshire

1,576,864

Orkney

68,443

Perth and Kinross

429,178

Renfrewshire

872,491

Scottish Borders

421,135

Shetland

59,401

South Ayrshire

471,229

South Lanarkshire

1,214,242

Stirling

261,496

West Dunbartonshire

645,451

West Lothian

746,375”

SCHEDULE 2New Schedule 1ZC to Income-related Benefits (Subsidy to Authorities) Order 1998

Article 4(2)

“SCHEDULE 1ZCAdditional amount of subsidy: Housing Benefit Award Accuracy Initiative

Article 12(1)(bzb)

Interpretation

1.

In this Schedule—

“HBAAI” means the Housing Benefit Award Accuracy Initiative set out in Housing Benefit Circular HB A9/2020 published by the Department for Work and Pensions on 7th August 202012;

“relevant activities” means activities carried out by authorities in connection with administering the HBAAI.

Additional amount: relevant year beginning with 1st April 2020

2.

The additional amount of subsidy for an authority for the relevant year beginning with 1st April 2020 is the amount (if any) specified for that authority in the Housing Benefit Circular HB S8/2020 published by the Department for Work and Pensions on 2nd November 202013.

Use of amount paid under paragraph 2

3.

An authority must use any additional amount received under paragraph 2 in connection with relevant activities.”

SCHEDULE 3Substitution of Schedule 4A to the Income-related Benefits (Subsidy to Authorities) Order 1998

Article 5(2)

“SCHEDULE 4ARENT REBATE LIMITATION DEDUCTIONS (HOUSING REVENUE ACCOUNT DWELLINGS): AUTHORITIES IN WALES

Article 20A

Interpretation

1.

In this Schedule—

“HRA” means the Housing Revenue Account of the authority the amount of whose subsidy is under consideration;

“rent”, in relation to a dwelling, means the total of the payments in respect of the dwelling specified in regulation 12(1) of the Housing Benefit Regulations or, as the case may be, regulation 12(1) of the Housing Benefit (State Pension Credit) Regulations, other than a payment specified in regulation 12(1)(e).

Liability to deduction

2.

(1)

This paragraph applies in relation to the relevant year if—

(a)

the authority is specified in the Table in paragraph 4 for that year; and

(b)

O + P is less than Q where—

O is the amount specified in column 1 of that Table for the authority;

P is the guideline rent increase specified in column 2 of that Table for the authority; and

Q is the average weekly rent for a dwelling for the authority for the relevant year.

(2)

For the purposes of determining Q in sub-paragraph (1)(b), the average weekly rent for a dwelling for the authority for the relevant year is calculated by dividing the total rent charged for all dwellings in the HRA in that year by the total number of weeks for which rent was charged for all dwellings in the HRA, disregarding any unoccupied dwelling.

Amount of deduction

3.

(1)

The amount of the deduction from subsidy referred to in article 20A(2) is to be calculated as follows—

Step 1 Divide the amount of rebates granted by the authority in the relevant year in respect of dwellings in the HRA by the income of the authority for that year from rent (including rent remitted by way of rebate) in respect of such dwellings.

Step 2 If the result of Step 1 does not exceed the rebate proportion for the relevant year (see sub-paragraph (2))—

(a)

deduct (O + P) from Q (see paragraph 2);

(b)

divide the result of paragraph (a) by Q;

(c)

multiply the amount of the subsidy (apart from any deduction to be calculated under this Schedule) by the result of paragraph (b)).

If the result of Step 1 exceeds the rebate proportion for the relevant year—

(i)

deduct (O + P) from Q (see paragraph 2);

(ii)

divide the result of paragraph (i) by Q;

(iii)

divide the rebate proportion (see sub-paragraph (2)) by the result of Step 1;

(iv)

multiply the result of paragraph (ii) by the result of paragraph (iii);

(v)

multiply the amount of the subsidy (apart from any deduction to be calculated under this Schedule) by the result of paragraph (iv).

(2)

The rebate proportion for the purposes of sub-paragraph (1) for the relevant year beginning with 1st April 2020 is 0.574.

Amounts for the purposes of paragraph 2

4.

The amounts for the relevant year beginning with 1st April 2020 for the purposes of paragraph 2 are as follows—

Local authority

(1) Specified amount “O”(£)

(2) Guideline rent increase “P” (£)

Caerphilly

95.77

4.38

Cardiff

107.42

4.82

Carmarthenshire

95.29

4.36

Denbighshire

93.07

4.42

Flintshire

96.54

4.53

Isle of Anglesey

92.20

4.48

Pembrokeshire

96.09

4.23

Powys

97.15

4.42

Swansea

94.25

4.48

Vale of Glamorgan

103.94

4.63

Wrexham

95.45

4.46”

SCHEDULE 4Substitution of the Table in paragraph 4 of Schedule 4A to the Income-related Benefits (Subsidy to Authorities) Order 1998

Article 5(3)(b)

“Local authority

(1) Specified amount “O”(£)

(2) Guideline rent increase “P” (£)

Caerphilly

100.15

1.27

Cardiff

112.24

2.00

Carmarthenshire

99.65

0.95

Denbighshire

97.49

3.39

Flintshire

101.07

3.45

Isle of Anglesey

96.68

3.42

Pembrokeshire

100.32

3.28

Powys

101.57

2.62

Swansea

98.73

2.89

Vale of Glamorgan

108.57

3.52

Wrexham

99.91

3.42”

SCHEDULE 5Minor amendments to the Income-related Benefits (Subsidy to Authorities) Order 1998

Article 7

1.

In article 1(2), omit the definition of “relevant benefit”.

2.

In article 2—

(a)

omit the definition of “base data return””;

(b)

in the definition of “claim” for “, final claim or a return pursuant to article 4(4)” substitute “or a final claim”;

(c)

in the definition of “claim form” omit “or (4)”;

(d)

in the definition of “HBAP”, for “27th March 2018” substitute “30th March 2020”;

3.

In article 4(2), for “relevant benefit” substitute “housing benefit”.

4.

In article 7(c), for “relevant benefit” substitute “housing benefit”.

5.

In article 8(1)(a), for “, mid-year claim and the returns under article 4(4)” substitute “and mid-year claim”.

6.

In article 11—.

(a)

in paragraph (1)—

(i)

omit the definitions of “the Council Tax Benefit Regulations”, “the Council Tax Benefit (State Pension Credit) Regulations” and “period overrun”;

(ii)

in the definition of “overpayment”, omit “excess benefit under the Council Tax Benefit Regulations as well as”;

(iii)

in the definition of “scheme”, omit “or council tax benefit scheme, as the case may be,”;

(iv)

in the full out words at the end, for “, the Housing Benefit (State Pension Credit) Regulations, the Council Tax Benefit Regulations or the Council Tax Benefit (State Pension Credit) Regulations” substitute “or the Housing Benefit (State Pension Credit) Regulations”;

(b)

in paragraph (2), in the definition of “qualifying expenditure”—

(i)

for “relevant benefit” in both places it occurs, substitute “housing benefit”;

(ii)

in paragraph (c), for “sections 134(8) (arrangements for housing benefit) or 139(6) (arrangements for council tax benefit) of the Act, as the case may be” substitute “section 134(8) (arrangements for housing benefit) of the Act”;

(c)

in paragraph (3), for “relevant benefit” substitute “housing benefit”.

7.

In article 12(1)(b), (2) and (4), for “relevant benefit” substitute “housing benefit”.

8.

(1)

Article 13 is amended as follows.

(2)

For the heading substitute “Housing benefit”.

(3)

In paragraph (1)—

(a)

in sub-paragraph (a), for the words from “the aggregate of” to the end substitute “100 per cent. of its qualifying expenditure attributable to expenditure in respect of housing benefit”;

(b)

in sub-paragraph (b)—

(i)

at the end of head (i) insert “and”;

(ii)

omit head (ii);

(iii)

in head (iii), omit “in respect of the relevant benefit”.

9.

In article 14—

(a)

in paragraph (1), omit “, regulation 69(13) of the Council Tax Benefit Regulations or regulation 53(13) of the Council Tax Benefit (State Pension Credit) Regulations”;

(b)

omit paragraph (3).

10.

In article 16, omit paragraph (4)(a).

11.

(1)

Article 18 is amended as follows.

(2)

In paragraph (1)—

(a)

in sub-paragraph (a), for “relevant benefit” substitute “housing benefit”;

(b)

in sub-paragraph (b)—

(i)

in the opening words, for “relevant benefit” substitute “housing benefit”;

(ii)

in head (i), omit “where the overpayment is overpayment of housing benefit”;

(iii)

omit head (ii);

(iv)

in head (iii), for “heads (i) or (ii) above apply” substitute “head (i) above applies”;

(c)

in sub-paragraph (e), for “relevant benefit” substitute “housing benefit”.

(3)

In paragraph (4A), for sub-paragraph (a) substitute—

“(a)

is caused by the claimant, or a person acting on the claimant’s behalf under regulation 82 of the Housing Benefit Regulations (who may claim housing benefit), failing to provide information in accordance with regulation 83, 86 or 88 of, or paragraph 5 of Schedule A1 to, those Regulations (duties on claimant to provide information); and”.

(4)

In paragraph (5)(b), for “relevant benefit” substitute “housing benefit”.

(5)

In paragraph (6ZA)(b), omit “or, in the case of council tax benefit, is allowed”.

(6)

In paragraph (6A), omit “and council tax benefit”.

(7)

In paragraph (7), for the words from “—” to the end substitute “a rebate being awarded and entitlement to that rebate being reduced or eliminated because, subsequent to that award, the liability in respect of which the rebate was awarded was reduced or eliminated”.

(8)

In paragraph (8)—

(a)

for “relevant benefit” substitute “housing benefit”;

(b)

for the words from “, paragraph (13)” to the end substitute “applies”.

12.

In article 19(1)—

(a)

in sub-paragraph (g)—

(i)

in the opening words, for “relevant benefit” substitute “housing benefit”;

(ii)

in head (ii), for the words from “paragraph (15)” to “Council Tax Benefit (State Pension Credit) Regulations” substitute “paragraph (18) of regulation 59 of the Housing Benefit (Community Charge Rebates) (Scotland) Regulations 1988 or paragraph (12) of regulation 83 of the Housing Benefit Regulations”;

(b)

in sub-paragraph (h), for “relevant benefit” substitute “housing benefit”.

13.

In article 20, for “any relevant benefit” substitute “housing benefit”.

14.

In Schedule 4, in both paragraphs 7(b) and 8(b) omit—

(a)

“the aggregate of”; and

(b)

the words from “and those service charges” to “(ineligible service charges)”.

EXPLANATORY NOTE
(This note is not part of the Order)

Part 2 of 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 which administer housing benefit. Section 140F(2) of the Social Security Administration Act 1992 (c. 5) (“the Act”) authorises the making, revocation or varying of an Order before, during or after the year to which it relates.

Article 3 and Schedule 1 substitute Schedule 1 to the 1998 Order which prescribes the sums to be used in the calculation of subsidy for the year beginning with 1st April 2020.

Article 4 and Schedule 2 prescribe an additional amount of subsidy to be payable to authorities in respect of their participation in the Housing Benefit Award Accuracy Initiative as notified by the Secretary of State to local authorities on 7th August 2020.

Article 5(1) and (2) and Schedule 3 (when read together with relevant provisions of article 2) substitute article 20A and the accompanying Schedule 4A with effect from 1st April 2020. The substitutions correct minor defects in the Income-related Benefits (Subsidy to Authorities) Amendment Order 2020 (S.I. 2020/976). In particular, they ensure that the substituted version of Schedule 4A applies permanently going forwards and reinstate necessary wording relating to the application of the rent rebate subsidy limitation regime in Wales.

Article 5(3) and (4) and Schedule 4 have effect for the purposes of determining subsidy payable for the year beginning with 1st April 2021 for authorities in Wales. Article 5(3) provides that the rebate proportion figure for 2021/2022 is 0.682 and article 5(4) and Schedule 4 set out the specified amount “O” and the guideline rent increase “P” used when calculating deductions from subsidy under paragraph 2 of Schedule 4A.

Article 6 substitutes paragraph 2 of Schedule 1ZB. That Schedule prescribes a system for the making of additional payments of subsidy to authorities administering alerts relating to the earnings and pension entitlement of claimants for housing benefit and the substituted paragraph 2 has effect for the purposes of determining additional amounts of subsidy payable for the year beginning with 1st April 2021. The amounts were notified by the Secretary of State to local authorities on 19th April 2021.

Article 7 and Schedule 5 make minor amendments. Those amendments are necessary as a consequence of the abolition of council tax benefit, in order to amend incorrect legislative references, to remove references to provisions which have been revoked and to ensure that the Order refers to the up-to-date version of the Housing Benefit Assurance Process.

Part 3 of this Order amends the Discretionary Housing Payments (Grants) Order 2001 (S.I. 2001/2340) (“the 2001 Order”), which sets out the procedure by which the Secretary of State makes payments to local authorities towards the cost of discretionary housing payments in accordance with section 70 of the Child Support, Pensions and Social Security Act 2000 (c.19). The amendments in this Part of the Order have effect for any year commencing on or after 1st April 2021.

Article 8(3) amends article 2 to include amendments that are necessary as a consequence of the abolition of council tax benefit and the introduction of universal credit. It also inserts a definition of “relevant award of universal credit” to clarify which awards of universal credit are to be taken into account for the purpose of determining the amount of grant payments to be made to local authorities by the Secretary of State under the 2001 Order.

Article 8(4)(a) amends article 3 to remove provisions that are no longer applicable for the purpose of submitting a claim and removes the requirement for local authorities to provide an initial estimate by 1st April in any year to the Department for Work and Pensions (DWP). It also substitutes article 3(2)(e) to require local authorities to provide to DWP, by 31st October in the relevant year, an actual spend figure specifying the payments it has made between the 1st April and 30th September of that year, and an estimate of the total amount of payments it believes it will make during the whole of that year, from 1st April to 31st March.

Article 8(4)(b) amends article 3 to remove any references to Scotland from the 2001 Order as discretionary housing payments have been fully devolved to Scotland since April 2017.

Article 8(5) substitutes a new article 6 to clarify that an initial instalment payment of discretionary housing payment grant may be made to a local authority without reference to any claim submitted under article 3 of the 2001 Order.

Hard copies of the circulars referenced in Part 2 of, and in Schedule 2 to, this Order are available by writing to the Department for Work and Pensions, Local Authority Partnership, Engagement and Delivery Division, Room B120D, Warbreck House, Warbreck Hill, Blackpool, FY2 0YE or by emailing lawelfare.lafunding@dwp.gov.uk.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.