The Income-related Benefits (Subsidy to Authorities) Amendment (No. 2) Order 2006

• Citation: S.I. 2006/559
• Sections: 8

Section 1 Citation, commencement, interpretation and extent

(1) This Order may be cited as the Income-related Benefits (Subsidy to Authorities) Amendment (No. 2) Order 2006 and shall come into force on 1st April 2006.

(2) In this Order, “the 1998 Order ” means the Income-related Benefits (Subsidy to Authorities) Order 1998 .

(3) This Order extends to England and Wales.

Section 2 Amendment of the 1998 Order

Schedule 4A to the 1998 Order (rent rebate limitation deductions) is amended in accordance with the Schedule to this Order.

Section 1

In paragraph 1 (interpretation), after the definition of “rent” insert—

“ RPI figure” means the annual percentage change at September of the index of retail prices for the United Kingdom published by the Office for National Statistics,

Section 2

In paragraph 2 (England – liability to deduction)—

(a) for sub-paragraph (3), there shall be substituted—

(3) For the purposes of sub-paragraph (2), 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.

(b) in sub-paragraph (4)—

(i) for Step 1, there shall be substituted—

Step 1

Find the average weekly service charge for a dwelling for the authority for the relevant year by dividing the total service charges imposed in respect of all dwellings in the HRA in that year by the total number of weeks for which service charges were imposed for all dwellings in the HRA.

(ii) for Step 2, there shall be substituted—

Step 2

Find the average weekly service charge for a dwelling for the authority for the year 2001-02 by dividing the total service charges imposed in that year in respect of all dwellings that are both in the HRA in that year and in the relevant year by the total number of weeks for which service charges were imposed for all dwellings in the HRA in the relevant year.

(iii) in Step 3, for the words “ GDP Deflator” there shall be substituted “RPI figure”; and

(iv) for Step 4, there shall be substituted—

Step 4

Find the average weekly service charge for new services for a dwelling for the authority for the relevant year by dividing the total charges for new services imposed in that year by the total number of weeks in that year for which new service charges were imposed for all dwellings in the HRA.

(c) for sub-paragraphs (6) and (7) there shall be substituted—

(6) The RPI figure for the period beginning with September 2001 and ending with September of the year prior to the relevant year is 1.1258.

(7) The annual factor for 2006-07 is 0.5.

Section 3

In paragraph 3 (amount of deduction), for sub-paragraph (3) there shall be substituted—

(3) The rebate proportion in England for each relevant year commencing with 2006-07 is 0.61

Section 4

For Part 3 there shall be substituted—

WEEKLY RENT LIMITS FOR PURPOSES OF PART 2: AUTHORITIES IN ENGLAND

RELEVANT YEAR 2006-07

Section 5

In paragraph 5 (Wales – amount of deduction), for sub-paragraph (2) there shall be substituted—

(2) The rebate proportion for Wales for each relevant year commencing with 2006-07 is 0.66.

Section 6

For Part 5 there shall be substituted—

AMOUNTS FOR PURPOSES OF PART 4, PARAGRAPH 4: AUTHORITIES IN WALES

RELEVANT YEAR 2006-07