The Income-related Benefits (Subsidy to Authorities) Amendment Order 2015

• Citation: S.I. 2015/1784
• Sections: 9

Section 1 Citation, commencement and interpretation

(1) This Order may be cited as the Income-related Benefits (Subsidy to Authorities) Amendment Order 2015 and comes into force on 9th November 2015.

(2) Article 2(4) and Schedule 1 have effect for the purpose of determining subsidy payable for the relevant year beginning with 1st April 2014.

(3) Article 2(2) and (3) and article 3 have effect for the purpose of determining subsidy payable for—

(a) the relevant year beginning with 1st April 2014; and

(b) any subsequent relevant year.

(4) Article 4 and Schedules 3 and 4 have effect for the purpose of determining subsidy payable for the relevant year beginning with 1st April 2015.

(5) In this Order—

(a) the “ 1998 Order ” means the Income-related Benefits (Subsidy to Authorities) Order 1998 ;

(b) “relevant year” means the period of a year beginning with 1st April in any calendar year, in respect of which a claim for subsidy is made.

Section 2 The amount of an authority’s subsidy

(1) The 1998 Order is amended as follows.

(2) In article 12 (amount of subsidy)—

(a) for paragraph (1) , substitute—

(1) Subject to paragraph (2), the amount of an authority’s subsidy for the relevant year is the sum of the following—

(a) the amount of subsidy calculated in accordance with article 13;

(b) for an authority identified in column (1) of Schedule 1 (sums to be used in the calculation of subsidy), the amount in respect of the costs of administering the relevant benefit specified in column (2) of that Schedule for that authority;

(c) for an authority which is a participating authority for the purpose of Schedule 1A (additional amount of subsidy: activities to reduce fraud and error), the additional amount (if any) calculated in accordance with that Schedule; and

(d) for an authority which has modified any part of a scheme it administers in recognition of the operation of a local scheme under section 134(8) of the Act (arrangements for housing benefit), the additional amount calculated in accordance with paragraph (4).

(b) in paragraph (4) , for “(1)(c)” substitute “(1)(d)”.

(3) In article 13(1) (relevant benefit) , for the words from “Subject to” to “paid to an authority” substitute “The amount of subsidy payable under article 12(1)(a)”.

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

(5) After Schedule 1 (sums to be used in the calculation of subsidy), insert the Schedule 1A set out in Schedule 2 to this Order.

Section 3 Additions to an authority’s subsidy

(1) The 1998 Order is amended as follows.

(2) In article 18 (additions to subsidy), after paragraph (6ZA) insert—

(6ZB) For the purposes of paragraphs (1)(e) and (2), an “authority error overpayment” or an “administrative delay overpayment” does not include an overpayment of a kind to which paragraphs (6ZC) or (6ZD) apply.

(6ZC) This paragraph applies to an overpayment where—

(a) an authority receives real time information in respect of the overpayment which indicates that the overpayment was caused by the incorrect declaration of PAYE employment income or PAYE pension income by the claimant; and

(b) the authority—

(i) has sufficient real time information to make a revision or supersession decision on the claimant’s award; and

(ii) makes a revision or supersession decision during the period of 4 weeks beginning with the date on which the authority received the real time information.

(6ZD) This paragraph applies to an overpayment where—

(a) an authority receives real time information in respect of the overpayment which indicates that the overpayment was caused by the incorrect declaration of PAYE employment income or PAYE pension income by the claimant;

(b) the authority has insufficient real time information to make a revision or supersession decision;

(c) the authority requests further information from the claimant; and

(d) the authority makes a revision or supersession decision either—

(i) if the additional information is provided during the period of 4 weeks beginning with the date on which the authority received the real time information (“the 4 week period”), by the end of that 4 week period; or

(ii) if the additional information is provided after the 4 week period has ended, by the Monday following the date on which the additional information is received.

(6ZE) For the purposes of paragraphs (6ZC) and (6ZD)—

“PAYE employment income” has the meaning in section 683(2) of the Income Tax (Earnings and Pensions) Act 2003 ;

“PAYE pension income” has the meaning in section 683(3) of the Income Tax (Earnings and Pensions) Act 2003;

“real time information” means information which is reported by a Real Time Information employer or Real Time Information pension payer in respect of the PAYE employment income or PAYE pension income of its employees;

“Real Time Information employer” has the meaning in regulation 2A(1) of the Income Tax (Pay As You Earn) Regulations 2003 ;

“Real Time Information pension payer” has the meaning in regulation 2B(1) of the Income Tax (Pay As You Earn) Regulations 2003 .

Section 4 Rent rebate deductions from an authority’s subsidy

(1) The 1998 Order is amended as follows.

(2) In Schedule 4A (rent rebate limitation deductions (Housing Revenue Account Dwellings)) —

(a) in Part 2 (England), in paragraph 3 (amount of deduction), for sub-paragraph (3) substitute—

(3) The rebate proportion for 2015-16 is 0.746.

(b) for Part 3 (weekly rent limits for purposes of Part 2: authorities in England) , substitute the Part 3 set out in Schedule 3 to this Order.

(c) for Part 5 (amounts for purposes of Part 4, paragraph 4: authorities in Wales) , substitute the Part 5 set out in Schedule 4 to this Order.

Section 5 Amendments consequential to the abolition of community charge benefit

(1) The 1998 Order is amended as follows.

(2) In article 11 (interpretation of Part 3)—

(a) omit the definition of “the Community Charge Benefits Regulations”;

(b) in the definition of “Overpayment”, omit “excess benefits under the Community Charge Benefits Regulations and”.

(3) In article 18 (additions to subsidy)—

(a) in paragraph (1)(b) , omit “community charge benefit or”;

(b) in paragraph (1)(b)(ii), omit “community charge benefit or”;

(c) in paragraph (8) —

(i) omit “community charge benefit or”;

(ii) after “regulation 69 of the Council Tax Benefit Regulations”, for “of” substitute “or”;

(iii) omit “or paragraph (18) of regulation 60 of the Community Charge Benefits Regulations (time and manner in which claims are to be made)”.

(4) In paragraph (1)(g)(ii) of article 19 (deductions to be made in calculating subsidy)—

(a) omit “paragraph (7) of article 2 of the Community Charge Benefits (Transitional) Order 1989,”;

(b) omit “paragraph (18) of regulation 60 of the Community Charge Benefits Regulations,”.

(5) In article 20 (deduction from subsidy), omit “or community charge benefit”.

Section 1 Interpretation

(1) In this Schedule—

“FERIS” means the Fraud and Error Reduction Incentive Scheme in the administration of housing benefit described in the Housing Benefit Circular HB A17/2014 ;

“participating authority” means an authority which notified the Secretary of State on or before 30th January 2015 that it is participating in FERIS;

“performance”, in relation to a period, means the amount by which payments of housing benefit by the participating authority are reduced in that period as a result of relevant activities;

“relevant activities” means activities carried out by a participating authority in order to reduce fraud and error in payments of housing benefit.

(2) A reference in this Schedule to the “administration subsidy” for a participating authority for a relevant year is—

(a) in relation to the relevant year beginning on 1st April 2014, a reference to the amount specified in relation to that authority in—

(i) the Annex to HB Subsidy Circular S8/2013 for authorities in Wales ;

(ii) the Annex to HB Subsidy Circular S9/2013 for authorities in England ;

(iii) the Annex to HB Subsidy Circular S10/2013 for authorities in Scotland ;

(b) in relation to the relevant year beginning on 1st April 2015, a reference to the amount specified in relation to that authority in—

(i) the Annex to HB Subsidy Circular S6/2014 for authorities in Scotland ;

(ii) the Annex to HB Subsidy Circular S7/2014 for authorities in Wales ;

(iii) the Annex to HB Subsidy Circular S8/2014 for authorities in England .

Section 2 Additional amount: relevant year beginning with 1st April 2014

(1) This paragraph has effect for the purpose of determining the additional amount of subsidy payable under article 12(1)(c) for the relevant year beginning with 1st April 2014.

(2) If the performance of the participating authority in the performance period—

(a) does not exceed the baseline performance of the authority in that period; or

(b) exceeds the baseline performance of the authority in that period by less than 8 per cent.,

there is no additional amount.

(3) Otherwise, the additional amount is determined as follows.

Step 1

Calculate the percentage (“the out-performance percentage”) by which the performance of the authority exceeds its baseline performance in the performance period.

Step 2

Look up the percentage (“the additional amount percentage”) specified in column (2) of the following Table in the row applicable to the authority’s out-performance percentage.

Step 3

Multiply the additional amount percentage by the administration subsidy for the authority for the relevant year.

(4) In this paragraph, “performance period” means the period beginning with 1st December 2014 and ending with 31st March 2015.

(5) References in this paragraph to “the baseline performance” of the authority in the performance period are to the higher of the following amounts—

(a) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period beginning with 1st December 2013 and ending with 31st March 2014 were reduced as a result of relevant activities;

(b) the average of—

(i) the amount specified in paragraph (a); and

(ii) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period beginning with 1st December 2012 and ending with 31st March 2013 were reduced as a result of relevant activities.

Section 3 Additional amount: relevant year beginning with 1st April 2015

(1) This paragraph and paragraph 4 have effect for the purpose of determining the additional amount of subsidy payable under article 12(1)(c) for the relevant year beginning with 1st April 2015.

(2) The additional amount is determined as follows—

Step 1

Calculate the percentage (“the out-performance percentage”), if any, by which the performance of the authority exceeds its baseline performance in the performance period beginning with 1st April 2015.

Step 2

Look up the percentage (“the additional amount percentage”) specified in column (2) of the following Table in the row applicable to the authority’s out-performance percentage.

Step 3

Multiply the additional amount percentage by the enhanced administration subsidy.

Step 4

Repeat Steps 1 to 3 for each of the other performance periods.

Step 5

Add the amounts determined for each performance period under Step 3.

Step 6

Add the amount, if any, determined under paragraph 4.

(3) In this paragraph, “performance period” means the period of 3 months beginning with 1st April 2015, 1st July 2015, 1st October 2015 or 1st January 2016.

(4) In sub-paragraph (2), “enhanced administration subsidy” means 110 per cent. of the administration subsidy for the authority for the relevant year.

(5) References in this paragraph to “the baseline performance” of the authority in a performance period are to the amount determined in accordance with sub-paragraphs (6) to (9).

(6) For the performance period beginning with 1st April 2015 the baseline performance is the higher of the following amounts—

(a) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period of 3 months beginning with 1st April 2014 were reduced as a result of relevant activities;

(b) the average of—

(i) the amount specified in paragraph (a); and

(ii) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period of 3 months beginning with 1st April 2013 were reduced as a result of relevant activities.

(7) For the performance period beginning with 1st July 2015 the baseline performance is the higher of the following amounts—

(a) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period of 3 months beginning with 1st July 2014 were reduced as a result of relevant activities;

(b) the average of—

(i) the amount specified in paragraph (a); and

(ii) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period of 3 months beginning with 1st July 2013 were reduced as a result of relevant activities.

(8) For the performance period beginning with 1st October 2015 the baseline performance is the higher of the following amounts—

(a) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period of 3 months beginning with 1st October 2013 were reduced as a result of relevant activities;

(b) the average of—

(i) the amount specified in paragraph (a); and

(ii) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period of 3 months beginning with 1st October 2012 were reduced as a result of relevant activities.

(9) For the performance period beginning with 1st January 2016 the baseline performance is the higher of the following amounts—

(a) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period of 3 months beginning with 1st January 2014 were reduced as a result of relevant activities;

(b) the average of—

(i) the amount specified in paragraph (a); and

(ii) the amount by which, in the Secretary of State’s opinion, the total payments of housing benefit made by the authority in the period of 3 months beginning with 1st January 2013 were reduced as a result of relevant activities.

Section 4 Additional amount: relevant year beginning with 1st April 2015: supplementary

(1) If the performance of the participating authority in the extended performance period does not exceed the baseline performance of the authority in that period, the amount determined under this paragraph is nil.

(2) Otherwise, the amount under this paragraph is determined as follows—

Step 1

Calculate the percentage (“the out-performance percentage”) by which the performance of the authority exceeds its baseline performance in the extended performance period.

Step 2

Look up the calculation specified in column (2) of the following Table in the row applicable to the authority’s out-performance percentage and perform the calculation.

Step 3

Subtract from the amount calculated under Step 2 the sum of the amounts payable to the authority by virtue of—

(a) paragraph 2; and

(b) paragraph 3, disregarding any amount determined under this paragraph.

(3) References in this paragraph to the “baseline performance” of the authority in the extended performance period are to the sum of—

(a) 108 per cent. of the baseline performance of the authority determined under paragraph 2(5);

(b) 110 per cent. of the baseline performance of the authority determined under paragraph 3(6);

(c) 110 per cent. of the baseline performance of the authority determined under paragraph 3(7);

(d) 110 per cent. of the baseline performance of the authority determined under paragraph 3(8); and

(e) 110 per cent. of the baseline performance of the authority determined under paragraph 3(9).

(4) In this paragraph—

“2014/15 administration subsidy” means the administration subsidy for the authority for the relevant year beginning with 1st April 2014;

“2015/16 enhanced administration subsidy” means 110 per cent. of the administration subsidy for the authority for the relevant year beginning with 1st April 2015;

“extended performance period” means the period beginning with 1st December 2014 and ending with 31st March 2016.