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

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 [e-mail].

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.