PART IE+W+S GENERAL

Citation, commencement and interpretationE+W+S

1.—(1) This Order, which may be cited as the Income-related Benefits (Subsidy to Authorities) Order 1998, shall come into force on 31st March 1998 and shall have effect in relation to any relevant year.

(2) In this Order, unless the context otherwise requires —

• “the Act" means the Social Security Administration Act 1992;

• “authority" means a billing, housing or, as the case may be, local authority;

• “a 1997 authority" means a successor authority, whose reorganisation date was 1st April 1997;

• “a 1998 authority" means a successor authority, whose reorganisation date was 1st April 1998;

• “new authority" means

  (i)

  in England, a successor authority, whose reorganisation date was 1st April 1996;

  (ii)

  in Wales, an authority constituted under sections 20 and 21 of the Local Government Act 1972 M5, and

  (iii)

  in Scotland, an authority constituted under section 2 of the Local Government etc. (Scotland) Act 1994 M6;

• “the English Regulations" means the Local Government Changes for England (Housing Benefit and Council Tax Benefit) Regulations 1995 M7;

• F1...

• “the previous Orders" means the 1989 Order, the 1990 Order, the 1991 Order, the 1992 Order, the 1993 Order, the 1994 Order, the 1995 Order, the 1996 Order and the 1997 Order;

• “relevant benefit" has the meaning ascribed to it in section 140B(6) of the Act M8;

• “following year" means the year following the relevant year;

• “relevant year" means the year, commencing on 1st April 1997 or on the 1st April in any year thereafter, in respect of which a claim for subsidy is made;

• “the 1989 Order" means the Housing Benefit (Subsidy) Order 1989 M9;

• “the 1990 Order" means the Housing Benefit (Subsidy) Order 1990 M10;

• “the 1991 Order" means the Housing Benefit and Community Charge Benefit (Subsidy) Order 1991 M11;

• “the 1992 Order" means the Housing Benefit and Community Charge Benefit (Subsidy) Order 1992 M12;

• “the 1993 Order" means the Housing Benefit and Community Charge Benefit (Subsidy) (No.2) Order 1993 M13;

• “the 1994 Order" means the Housing Benefit and Council Tax Benefit (Subsidy) Order 1994 M14;

• “the 1995 Order" means the Housing Benefit and Council Tax Benefit (Subsidy) Order 1995 M15;

• “the 1996 Order" means the Housing Benefit and Council Tax Benefit (Subsidy) Order 1996 M16, and

• “the 1997 Order" means the Housing Benefit and Council Tax Benefit (Subsidy) Order 1997 M17.

(3) In paragraph (2), “successor authority" and “reorganisation date" have the same meanings as in regulation 2(1) of the English Regulations.

(4) In this Order, unless the context otherwise requires, a reference—

(a)to a numbered Part in this Order or a Schedule to this Order, is to the Part in this Order, or that Schedule, as the case may be, bearing that number;

(b)to a numbered article in or Schedule to this Order, is to the article in or Schedule to this Order, as the case may be, bearing that number;

(c)in an article or a Schedule to a lettered or numbered paragraph is to the paragraph bearing that letter or number in that article or that Schedule; and

(d)in a paragraph to a lettered or numbered sub-paragraph is to the sub-paragraph in that paragraph bearing that letter or number.

PART IIE+W+S CLAIMS FOR AND PAYMENT OF SUBSIDY

Interpretation of Parts II and IVE+W+S

2.  In this Part and also in Part IV, unless the context otherwise requires—

• [F2“base data return” means a return pursuant to article 4(4A);]

• F3...

• “claim" means an initial claim, mid-year claim, final claim or a return pursuant to article 4(4), as the case may be;

• “claim form" means the form supplied by the Secretary of State pursuant to article 4(2)(a), (b) or (c) or (4), as the case may be;

• [F4“electronic communication” has the same meaning as in section 15(1) of the Electronic Communications Act 2000]

• F5...

• “initial claim" means a claim for subsidy pursuant to article 4(2)(a);

• “final claim" means a claim for subsidy pursuant to article 4(2)(c);

• “mid-year claim" means a claim for subsidy pursuant to article 4(2)(b);

• “final subsidy" means any subsidy which is not interim subsidy [F6or an amount paid, withheld or deducted pursuant to article 8A];

• “interim subsidy" means subsidy pursuant to articles F7... 8(1) or 9(4), as the case may be;

• “the form" means a printed document or any other format upon which a claim may be set out, or any combination of such formats or alternative formats, as the Secretary of State determines; and

• “the relevant office" means such office as may be designated by the Secretary of State.

Conditions for payment of subsidyE+W+S

3.  Subject to articles 9(3) and 10, no final subsidy shall be paid unless the conditions specified in the following provisions of this Part have been complied with.

[F8Electronic communicationsE+W+S

3A.—(1) The Secretary of State, an authority or auditor may use an electronic communication in connection with any claim, audit or payment of subsidy provided it is made in accordance with the provisions set out in Part 2 of Schedule 6.

(2) Any reference to an electronic communication in this Order means an electronic communication made in accordance with those provisions.

(3) Schedule 6 makes further provisions relating to electronic communications.]

Requirement of claimE+W+S

4.—(1) The first condition is that subsidy shall be claimed in accordance with the provisions of and in the manner specified by this article.

(2) There shall be submitted by an authority to the Secretary of State, at the relevant office, on the form supplied by him to that authority [F9or by means of an electronic communication], the following claims for subsidy, by reference to the amount of relevant benefit that that authority—

(a)estimates it will pay during the relevant year, by 1st March in the year preceding the relevant year;

(b)estimates it has up to that time and will by the end of that relevant year have paid, by 31st August in the relevant year;

(c)has paid in the relevant year, by [F1030th April] in the following year.

(3) [F11Except where an authority submits a claim by means of an electronic communication,] the final claim shall be copied to the authority’s auditor, by [F1230th April] in the following year.

F13(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13(4ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F14 [F15( 4A ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4B) An authority in Wales shall—

(a)if required to do so by the Secretary of State, submit to him, at the relevant office, in any of the above claims or returns, or

(b)if required to do so by the Secretary of State or the National Assembly for Wales, submit to him or, as the case may be, to them, at the relevant office, by way of an additional return on such form as is supplied by him or them [F16or by means of an electronic communication] to that authority and not later than such date as he or they may require,

details in relation to subsidy in respect of rebates granted to tenants of dwellings within the authority’s Housing Revenue Account.]

(5) All claims and returns submitted by an authority consequent upon this article shall be signed [F17or submitted by means of an electronic communication]—

(a)in the case of an authority in England or Wales, by [F18the authority’s chief finance officer, as defined in section 5(8) of the Local Government and Housing Act 1989, or an officer to whom that officer has made a formal delegation];

(b)in the case of an authority in Scotland, by the proper officer pursuant to section 95 of the Local Government (Scotland) Act 1973 M18.

[F19 Requirement to keep records and provide informationE+W+S

5.—(1) The second condition is that the authority submitting a claim shall–

(a)provide to the Secretary of State the information referred to in paragraph (2) [F20in written or electronic form]; and

(b)keep and, where the Secretary of State requires it or it is otherwise appropriate to do so, produce records [F21in written or electronic form] with a bearing on that claim.

(2) The information referred to in this paragraph is such information as the Secretary of State requires, or as may otherwise be necessary, to satisfy him that–

(a)the claim is [F22fairly stated and in accordance with the relevant articles of this Order]; and

(b)any subsidy claimed or paid for the relevant year or for an earlier year has been properly claimed or paid in accordance with the provision of this Order or, as the case may be, the previous Orders.]

Requirement of auditE+W+S

6.—(1) Subject to article 9(4), the third condition is that the authority

[F23(iza)shall, in the case of an authority in England, inform the Secretary of State in writing of the identity of the authority’s auditor by 1st March in the year before the relevant year;]

[F24(ia)shall, in the case of an authority in England, procure that their base data return is audited by the authority’s auditor and that the audited return is submitted to the Secretary of State [F25in written or electronic form] at the relevant office by 10th October in the year before the relevant year;]

(a)shall procure that their final claim is audited by the authority’s auditor by [F2630th November] in the following year; and

(b)shall comply with the following provisions of this article.

(2) The authority shall—

(a)provide such information [F27in written or electronic form]; and

[F28(b)keep, and where asked to do so, produce records in written or electronic form with a bearing on its claim,

as may be required by the auditor or as may be otherwise required to enable that authority to show and its auditor to check, that that claim is fairly stated and in accordance with the relevant articles of this Order.]

[F29(3) No final subsidy shall be paid until the authority’s auditor has certified on the claim for or by means of an electronic communication that the final claim is fairly stated and in accordance with the relevant articles of this Order.]

Final condition for the payment of subsidyE+W+S

7.  Subject to article 9(4), the fourth condition is that an authority shall satisfy the Secretary of State that its claim—

(a)is true and complete;

(b)is supported and, if appropriate, supplemented by all the information the Secretary of State requires; and

(c)fairly represents the expenditure in relation to relevant benefit incurred or likely to be incurred, as the case may be, by the authority in the relevant year.

In year instalments of subsidyE+W+S

8.—(1) Where an authority has submitted, by the due date—

(a)the initial claim, mid-year claim and the returns under article 4(4), as the case may be, in accordance with the requirements of this Part; and

(b)the conditions of this Part in relation to such claims have been complied with,

the Secretary of State shall pay each month, to each such authority that has submitted such claims as are by that date due, instalments of subsidy, in accordance with paragraph (2).

(2) The instalments payable by way of interim subsidy to an authority under paragraph (1) shall be such amounts as the Secretary of State considers appropriate in the circumstances of the case, but the total amount of such instalments paid in the relevant year shall not exceed the amount which, in his estimation, is likely to be payable by way of final subsidy, taking account of any withholding, reducing or deducting of subsidy by him, following the submission and audit of that authority’s final claim.

[F30Payment of subsidy before audit completeE+W+S

8A—(1) Where an authority has submitted the final claim by the due date in accordance with article 4(2)(c) but the claim has not yet been audited in accordance with article 6 and—

(a)the Secretary of State estimates that the final subsidy will exceed the amount of interim subsidy that was paid to the authority in the relevant year, taking account of any withholding, reducing or deducting of subsidy by him, following the audit of that authority’s final claim, he may pay subsidy in accordance with paragraph (2); or

(b)the Secretary of State estimates that the interim subsidy that was paid to the authority in the relevant year will exceed the amount of final subsidy, taking account of any withholding, reducing or deducting of subsidy by him, following the audit of that authority’s final claim, he may withhold or deduct subsidy in accordance with paragraph (2).

(2) The amounts that may be paid to, withheld or deducted from an authority under paragraph (1) shall be equal to the amount which the Secretary of State estimates is likely to be payable by way of final subsidy, taking account of any withholding, reducing or deducting of subsidy by him, following the audit of that authority’s final claim.]

Payment of subsidy for the relevant yearE+W+S

9.—(1) Subject to paragraphs (2) and (3) and to any subsidy withheld, reduced or deducted in accordance with sections 140B(4) or 140C(3), as the case may be, where he is satisfied that—

(a)the authority has submitted its final claim;

(b)the auditor has audited and certified that claim; and

(c)the conditions of this Part have been complied with,

the Secretary of State shall pay to that authority final subsidy calculated in accordance with Part III.

[F31(2) Any payment pursuant to paragraph (1) shall only be in respect of the balance of subsidy due after the Secretary of State—

(a)has deducted any interim subsidy paid during or in respect of the relevant year; [F32and]

(b)has added or deducted, as the case may be, any amount paid, recovered or withheld pursuant to article 8A in respect of the relevant year;

F33( c ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F33( d ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(3) The Secretary of State may pay subsidy under paragraph (1) once that submission, audit or certification, as the case may be, has occurred, despite it occuring after the time required in this Part.

(4) In a case where the third or fourth condition, as the case may be, are not met in relation to any authority, the Secretary of State may pay such amount of subsidy as he is satisfied will be due when that condition is met.

[F34(5) In paragraph (1), a reference to paying final subsidy calculated in accordance with Part III may also be a reference to deducting or withholding subsidy, as the case may be.]

Transitional Protection AdjustmentsE+W+S

F359A  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Estimating subsidyE+W+S

10.  If an authority has not, at the time specified in articles 4 or 6(1), as the case may be, complied with any condition specified in this Part, the Secretary of State may estimate the amount of any subsidy, including any interim subsidy, payable to that authority and he may employ for that purpose such criteria as he considers relevant.

PART IIIE+W+S CALCULATION OF SUBSIDY

Interpretation of Part IIIE+W+S

11.—(1) In this Part, unless the context otherwise requires—

• “allowance" means a rent allowance;

• [F36“appeal tribunal” has the meaning it bears in section 39(1) of the Social Security Act 1998;]

• “board and lodging accommodation" means—

  (a)

  accommodation provided for a charge which is inclusive of the provision of that accommodation and at least some cooked or prepared meals which are both cooked or prepared and consumed in that accommodation or associated premises; or

  (b)

  accommodation provided in a hotel, guest house, lodging house or some similar establishment,

  but it does not include accommodation in a residential care home or nursing home within the meaning of regulation 19(3) of the Income Support (General) Regulations 1987 M19 nor in a hostel within the meaning of [F37regulation 14 of the Housing Benefit Regulations or, as the case may be, regulation 14 of the Housing Benefit (State Pension Credit) Regulations];

• [F38“Commissioner” has the meaning it bears in section 39(1) of the Social Security Act 1998;]

• F39...

• [F40“the Consequential Provisions Regulations” means the Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006;]

• [F41“the Council Tax Benefit Regulations” means the Council Tax Benefit Regulations 2006;]

• [F42“the Council Tax Benefit (State Pension Credit) Regulations” means the Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006;]

• [F43“the Housing Benefit Regulations” means the Housing Benefit Regulations 2006;]

• [F44“the Housing Benefit (State Pension Credit) Regulations” means the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006;]

• “overpayment" includes F45... excess benefit under the Council Tax Benefit Regulations as well as overpayments under the Housing Benefit Regulations and any reference in this Order to “overpayment" in relation to any of the previous Orders shall bear the meaning it has in this Order;

• “period overrun" has the meaning assigned to it by paragraph 1 of Schedule 3;

• “rebate" means a rent rebate F46... M20;

• “the Rent Officers Order" means the Rent Officers (Housing Benefits Functions) Order 1997 M21 or the Rent Officers (Housing Benefits Functions) (Scotland) Order 1997 M22, as the case may be;

• “the Rent Officers Order 1995" means the Rent Officers (Additional Functions) Order 1995 M23 or the Rent Officers (Additional Functions) (Scotland) Order 1995 M24, as the case may be;

• “scheme" means the housing benefit scheme or council tax benefit scheme, as the case may be, as prescribed under section 123(1) of the Social Security [F47Contributions and Benefits Act 1992];

• F48...

and other expressions used in this Part and in [F49the Housing Benefit Regulations, the Housing Benefit (State Pension Credit) Regulations, the Council Tax Benefit Regulations or the Council Tax Benefit (State Pension Credit)Regulations], as the case may be, shall have the same meanings in this Part as they have in those Regulations.

(2) In this Part

[F54(3) An amount of relevant benefit which—

(a)would fall to be paid in the relevant year for a period in a preceding year; and

(b)is not paid by virtue of [F55regulation 98 or 102 of the Housing Benefit Regulations or, as the case may be, regulation 79 or 83 of the Housing Benefit (State Pension Credit) Regulations] (offsetting and method of recovery) on the ground that an overpayment of benefit was made in that preceding year for that period,

shall be treated as lawfully paid in the relevant year for that period.]

Amount of subsidyE+W+S

12.—[F56(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;

[F57(ba)for an authority which is a participating authority for the purposes of Schedule 1ZA (additional amount of subsidy: right benefit initiative), the additional amount specified by that Schedule; and]

F58(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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).]

[F59(2) Subject to paragraph (3), any sum paid after 1st April 1997 by way of subsidy in respect of an overpayment of relevant benefit shall be deducted from any amount of subsidy which would otherwise fall to be paid in respect of any payment of benefit which is treated, in accordance with paragraph 11(3), as made for the same period as that overpayment.

(3) A deduction shall not be made under paragraph (2) where the sum already paid by way of subsidy is greater than the amount which would fall to be paid.]

[F60(4) For the purposes of sub-paragraph [F61(1)(d)], the additional amount will be 0.2 per cent of the amount or total of amounts calculated in accordance with article 13 but will not exceed 75 per cent of the cost of the total of relevant benefit paid under the scheme.]

Relevant benefitE+W+S

13.—[F62(1) [F63The amount of subsidy payable under article 12(1)(a)] shall F64 ... be—

(a)in the case of any authority to which none of articles 14, 16[F65, 17[F66, 17A, 17B and 17C]] applies, an amount equal to the aggregate of—

(i)[F67100 per cent.] of its qualifying expenditure attributable to expenditure in respect of housing benefit; and

(ii)[F68100 per cent]. of its qualifying expenditure attributable to expenditure in respect of council tax benefit;

(b)in the case of any authority to which at least one of those articles applies an amount equal to the aggregate of—

(i)[F69100 per cent]. of so much of its qualifying expenditure attributable to expenditure in respect of housing benefit as remains after deducting from that expenditure the amount of expenditure attributable to housing benefit to which each of those articles which is relevant applies;

(ii)[F70100 per cent.] of so much of its qualifying expenditure attributable to expenditure in respect of council tax benefit as remains after deducting from that expenditure the amount of expenditure attributable to council tax benefit to which article 14 applies; and

(iii)the appropriate amount calculated in respect of the relevant benefit under each such article,

plus, in each case, the additions, where applicable, under [F71[F72article 18] but subject, in each case, to the deductions, where applicable, under articles 20 and 20A].]

F73(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F74(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Backdated benefitE+W+S

14.—(1) Subject to [F75paragraphs (2) and (3)], where—

(a)during the relevant year an authority has, under [F76regulation 83(12) of the Housing Benefit Regulations or, as the case may be, regulation 64(13) of the Housing Benefit (State Pension Credit) Regulations, regulation 69(13) of the Council Tax Benefit Regulations or regulation 53(13) of the Council Tax Benefit (State Pension Credit) Regulations] (time and manner of claiming) M28, treated any claim as made on a day earlier than that on which it is made; and

(b)any part of that authority’s qualifying expenditure is attributable to such earlier period,

for the purposes of [F77article 13(1)(b)(iii)], the appropriate amount for the relevant year in respect of such part shall be [F78100 per cent]. of the qualifying expenditure so attributable.

(2) This article shall not apply in [F79in relation to expenditure to which [F80article 17(2), 17A(2)[F81, 17B(2), 17C(2)]] or 18(1)(b)(iii)] or paragraph 6 of Schedule 4 applies.

[F82(3) This article shall not apply in relation to expenditure in respect of council tax benefit on or after 1st April 2013, even if that expenditure is attributable to a period before that date.]

Disproportionate rent increaseE+W+S

15.—(1) Except where paragraph (5), (6) or (7) applies, in the case of an authority in Scotland, whose average rent increase differential, as calculated in accordance with paragraph (2) (“the proportion"), has a value greater than zero, the deduction from qualifying expenditure specified in article 11(2)(a) shall be the proportion multiplied by the sum calculated for that authority in accordance with paragraph (4).

(2) The average rent increase differential for each authority shall be calculated by applying the formula—

(3) For the purposes of paragraph (2)—

(a)the value of A shall be the proportion calculated for that authority pursuant to paragraphs (3) and (4) of—

(i)in relation to the relevant year commencing on 1st April 1997, article 6 of the 1997 Order, or

(ii)in relation to a relevant year commencing on or after 1st April 1998, this article of this Order for the year immediately preceding the relevant year;

(b)the value of B shall be the average rent charged by the authority in respect of Category 1 dwellings on the final date;

(c)the value of C shall be the average rent charged by the authority in respect of Category 1 dwellings on the initial date;

(d)the value of D shall be the average rent charged by the authority in respect of Category 2 dwellings on the initial date; and

(e)the value of E shall be the average rent charged by the authority in respect of Category 2 dwellings on the final date.

(4) The sum referred to in paragraph (1) shall be that part of qualifying expenditure attributable to rebates granted during the relevant year before any deduction by reason of this article, but less any part of such expenditure to which [F83article 13(1)(b)(iii)] applies.

(5) Subject to paragraph (6), this article shall not apply in the case of an authority—

(a)which has—

(i)set the rent for the relevant year according to the type, condition, class or description of the dwellings and the services, facilities or rights provided to the tenants, where that rent is reasonable having regard to those matters;

(ii)not taken account of whether a tenant was a beneficiary when setting rents for the relevant year, and

(iii)not let dwellings, either in the relevant year or in either of the two previous years, to beneficiaries irrespective of their housing needs;

or

(b)where—

(i)any increases in rent between the initial date and 1st April in the following year were of the same percentage and applied on the same day to all tenants irrespective of whether they were beneficiaries, and

(ii)the average rent increase differential calculated in accordance with—

(aa)in relation to the relevant year commencing on 1st April 1997, article 6 of the 1997 Order; or

(bb)in relation to a relevant year commencing on or after 1st April 1998, this article of this Order for the year immediately preceding the relevant year,

for that authority had a value which was zero or less than zero.

(6) In the case of a new authority, sub-paragraph (a)(iii) of paragraph (5) shall be modified so that, in relation to the relevant year commencing on 1st April 1997, for the words “or in either of the two previous years" there shall be substituted the words “ or in the previous year ”.

[F84(7) This article shall not apply in a case to which article 17 or 17A (subsidy in respect of temporary or short term accommodation) applies.]

(8) In this article (and, in the case of the meaning ascribed to the word “beneficiary", also in article 19(2))—

• “average" means the arithmetic mean;

• “beneficiary" means a person who is entitled or likely to become entitled to a rebate;

• “Category 1 dwellings" means dwellings rented out by the authority, on both the initial date and the final date, in respect of which, on the final date, the persons liable to pay such rent were in receipt of rebates;

• “Category 2 dwellings" means dwellings rented out by the authority, on both the initial date and the final date, in respect of which, on the final date, the persons liable to pay such rent were not in receipt of rebates;

• “final date" means the last day of the relevant year;

• “initial date" means the day before the relevant year; and

• “rent" means either—

  (a)

  the payments specified in [F85sub-paragraphs (a) to (j) in paragraph (1) of regulation 12 of the Housing Benefit Regulations or, as the case may be, sub-paragraphs (a) to (j) in paragraph (1) of regulation 12 of the Housing Benefit (State Pension Credit) Regulations]; or

  (b)

  the eligible rent,

  as the authority may determine, provided that wherever the expression “rent" occurs in paragraph (3) it has the same meaning throughout in relation to that authority.

[F86Disproportionate rent increase – WalesE+W+S

15A.—(1) Subject to paragraphs (5) to (7), in the case of an authority in Wales whose average rent increase differential, as calculated in accordance with paragraph (2) (“the proportion”), has a value greater than zero, the deduction from qualifying expenditure specified in article 11(2)(a) shall be the proportion multiplied by the sum calculated for that authority in accordance with paragraph (4).

(2) The average rent increase differential for each authority shall be calculated by applying the formula—

(3) For the purposes of paragraph (2)—

(a)the value of A shall be the proportion calculated for that authority pursuant to that paragraph for the year immediately preceding the relevant year;

(b)the value of B shall be the average rent charged by the authority in respect of Category 1 dwellings on the final date;

(c)the value of C shall be the average rent charged by the authority in respect of Category 1 dwellings on the initial date;

(d)the value of D shall be the average rent charged by the authority in respect of Category 2 dwellings on the initial date; and

(e)the value of E shall be the average rent charged by the authority in respect of Category 2 dwellings on the final date.

(4) The sum referred to in paragraph (1) shall be that part of qualifying expenditure attributable to rebates granted during the relevant year before any deduction by reason of this article, but less any part of such expenditure to which article 13(1)(b)(iii) applies.

(5) This article shall not apply in the case of an authority—

(a)which has—

(i)set the rent for the relevant year according to the type, condition, class or description of the dwellings and the services, facilities or rights provided to the tenants, where that rent is reasonable having regard to those matters,

(ii)not taken account of whether a tenant was a beneficiary when setting rents for the relevant year, and

(iii)not let dwellings, either in the relevant year or in either of the two previous years, to beneficiaries irrespective of their housing needs; or

(b)where—

(i)any increases in rent between the initial date and 1st April in the following year were of the same percentage and applied on the same day to all tenants irrespective of whether they were beneficiaries, and

(ii)the average rent increase differential calculated in accordance with paragraph (2) for the year immediately preceding the relevant year, for that authority had a value which was zero or less than zero.

(6) Where the relevant year is the year beginning on 1st April 2004—

(a)paragraph (3)(a) shall have effect as if, for the words from “the proportion” to “the relevant year” there were substituted “equal to the value of G calculated for that authority for the purposes of paragraph 6.5.1 of the 2003-04 Determination;”; and

(b)paragraph (5)(b)(ii) shall have effect as if, for the words from “average” to “relevant year” there were substituted “value of G calculated for the purposes of paragraph 6.5.1 of the 2003-04 Determination”.

[F87(7) This article shall not apply in a case to which article 17 or 17A (subsidy in respect of temporary or short term accommodation) applies.]

(8) In this article—

“average” means the arithmetic mean;

“beneficiary” means a person who is entitled or likely to become entitled to a rebate;

“Category 1 dwellings” means dwellings rented out by the authority, on both the initial date and the final date, in respect of which, on the final date, the persons liable to pay such rent were in receipt of rebates;

“Category 2 dwellings” means dwellings rented out by the authority, on both the initial date and the final date, in respect of which, on the final date, the persons liable to pay such rent were not in receipt of rebates;

“2003-04 Determination” means the Housing Revenue Account Subsidy (Wales) Determination 2003-04;

“final date” means the last day of the relevant year;

“initial date” means the day before the first day of the relevant year; and

“rent” means either—

as the authority may determine, provided that wherever the expression “rent” occurs in paragraph (3) it has the same meaning throughout in relation to that authority.]

Treatment of high rents in rent allowance casesE+W+S

16.—(1) Except in a case to which article 14 (backdated benefit)[F89, 17B or 17C (subsidy in respect of accommodation provided by a registered housing association as temporary or short term accommodation)] applies, and subject to paragraphs (2), F90... and (4) and to article 23 (transitional provisions in relation to rent officer determinations), this article applies in a rent allowance case and, where this article applies, the appropriate amount, for the purposes of [F91article 13(1)(b)(iii)], shall be calculated in accordance with Part II of Schedule 4.

(2) This article shall not apply where a dwelling is an excluded tenancy by virtue of -

[F92(a)paragraph 1 and any of paragraphs 3 to 11 of Schedule 2 to the Housing Benefit Regulations (excluded tenancies); or

(b)paragraph 1 and any of paragraphs 3 to 11 of Schedule 2 to the Housing Benefit (State Pension Credit) Regulations (excluded tenancies)]

F93(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) This article shall not apply in a case where a maximum rent has been determined, except where—

(a)it was determined by reference to a reckonable rent and a local reference rent, when the appropriate amount shall be calculated in accordance with paragraph 14 of Schedule 4; or

F94(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)[F95regulation 13(14) of the Housing Benefit Regulations or, as the case may be, regulation 13(14) of the Housing Benefit (State Pension Credit) Regulations] (no maximum rent for first 13 weeks) applies, when the appropriate amount shall be calculated in respect of the first 13 weeks in accordance with paragraph 15 of Schedule 4.

(5) Expressions used in this article and in Schedule 4 have the same meanings in this article as they have in that Schedule.

[F96[F97Subsidy in respect of non self-contained licensed accommodation, and board and lodging accommodation, provided by an authority as temporary or short term accommodation]E+W+S

17.—(1) [F98This article applies where—

(a)a rent rebate is payable by an authority;

(b)a person (“P”) is required to pay the authority for—

(i)board and lodging accommodation; or

(ii)accommodation which is not self-contained and which the authority has a right to use under an agreement, other than a lease, with a third party; and

(c)the authority makes the accommodation available to P—

(i)to discharge any of its functions under Part 3 of the Housing Act 1985, Part 7 of the Housing Act 1996[F99, Part 2 of the Housing (Wales) Act 2014] or Part 2 of the Housing (Scotland) Act 1987, as the case may be; or

(ii)to prevent P being or becoming homeless within the meaning of Part 7 of the Housing Act 1996[F100, Part 2 of the Housing (Wales) Act 2014 or] Part 2 of the Housing (Scotland) Act 1987[F101, as the case may be] .]

(2) Where this article applies the appropriate amount is [F102the lowest] of—

(a)the amount of housing benefit entitlement in a week or part week, as the case may be; or

(b)the maximum amount determined in accordance with paragraph (3); [F103or

(c)F104 ... £500 where the dwelling is located in a broad rental market area listed in Schedule 8 (broad rental market areas in London) or £375 where the dwelling is located in any other broad rental market area.]

(3) The maximum amount referred to in paragraph (2) is the local housing allowance for January [F1052011] for the category specified in paragraph 1(1)(b) of Schedule 3B to the Rent Officers Order which is applicable to the broad rental market area in which the accommodation is situated.

F106( 3A ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) For the purposes of this article and [F107articles 17A, 17B and 17C], accommodation is self-contained if P’s household is not required to share one or more of the following with another household—

(a)a kitchen;

(b)a toilet;

(c)a bathroom.

(5) In this article and [F108articles 17A, 17B and 17C]—

“broad rental market area” has the meaning specified in paragraph 4 of Schedule 3B to the Rent Officers Order; and

“local housing allowance” means an allowance determined in accordance with paragraph 2 of Schedule 3B to the Rent Officers Order.

[F109Subsidy in respect of self-contained licensed accommodation, and leased accommodation, provided by an authority as temporary or short term accommodation]E+W+S

17A.—[F110(1) This article applies where—

(a)a rent rebate is payable by an authority;

(b)a person (“P”) is required to pay the authority—

(i)for self-contained accommodation which the authority has a right to use under an agreement, other than a lease, with a third party;

(ii)in England, for accommodation outside that authority’s Housing Revenue Account which the authority holds on a lease granted for a term not exceeding 10 years; or

(iii)in Wales and Scotland, for accommodation which the authority holds on a lease; and

(c)the authority makes the accommodation available to P—

(i)to discharge any of its functions under Part 3 of the Housing Act 1985, Part 7 of the Housing Act 1996[F111, Part 2 of the Housing (Wales) Act 2014] or Part 2 of the Housing (Scotland) Act 1987, as the case may be; or

(ii)to prevent P being or becoming homeless within the meaning of Part 7 of the Housing Act 1996[F112, Part 2 of the Housing (Wales) Act 2014 or] Part 2 of the Housing (Scotland) Act 1987[F113, as the case may be] .]

(2) Where this article applies, the appropriate amount is [F114the lowest] of—

(a)the amount of housing benefit entitlement in a week or part week, as the case may be; or

(b)the maximum amount determined in accordance with paragraph (3); [F115or

(c)F116 ..., £500 where the dwelling is located in a broad rental market area listed in Schedule 8 (broad rental market areas in London) or £375 where the dwelling is located in any other broad rental market area.]

(3) [F117The maximum amount referred to in paragraph (2) is 90% of the local housing allowance for January 2011 for the category specified in paragraphs 1(1)(b) to (f) of Schedule 3B to the Rent Officers Order (as in force on 1st January 2011) which applies to the accommodation and is applicable to the broad rental market area in which the accommodation is situated.]

F118( 3A ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) [F119For the purposes of determining the applicable local housing allowance in paragraph (3)—

(a)for accommodation which is not self-contained, the applicable local housing allowance is the local housing allowance specified in paragraph 1(1)(b) of Schedule 3B to the Rent Officers Order; and

(b)for accommodation which is self-contained—

(i)where the total number of rooms suitable for living in and bedrooms in the accommodation is between two and five, at least one of those rooms is to be treated as a room suitable for living in; and

(ii)where the total number of rooms suitable for living in and bedrooms in the accommodation is six or more, at least two of those rooms are to be treated as rooms suitable for living in.]]

[F120Subsidy in respect of non self-contained licensed accommodation, and board and lodging accommodation, made available by a registered housing association as temporary or short term accommodationE+W+S

17B.—(1) This article applies where—

(a)a rent allowance is payable by an authority;

(b)a person (“P”) is required to pay a registered housing association for—

(i)board and lodging accommodation; or

(ii)accommodation which is not self-contained and which the registered housing association has a right to use under an agreement, other than a lease, with a third party; and

(c)the registered housing association makes the accommodation available to P in pursuance of arrangements made with it by the authority—

(i)to discharge any of the authority’s functions under Part 3 of the Housing Act 1985, Part 7 of the Housing Act 1996[F121, Part 2 of the Housing (Wales) Act 2014] or Part 2 of the Housing (Scotland) Act 1987, as the case may be; or

(ii)to prevent P being or becoming homeless within the meaning of Part 7 of the Housing Act 1996[F122, Part 2 of the Housing (Wales) Act 2014 or] Part 2 of the Housing (Scotland) Act 1987[F123, as the case may be]; [F124and

(d)the accommodation is not exempt accommodation within the meaning given by paragraph 4(10) of Schedule 3 (transitional and savings provisions) to the Consequential Provisions Regulations.]

(2) Where this article applies the appropriate amount is the lowest of—

(a)the amount of housing benefit entitlement in a week or part week, as the case may be;

(b)the maximum amount determined in accordance with paragraph (3); or

(c)£500 where the dwelling is located in a broad rental market area listed in Schedule 8 (broad rental market areas in London) or £375 where the dwelling is located in any other broad rental market area.

(3) The maximum amount referred to in paragraph (2) is the local housing allowance for January 2011 for the category specified in paragraph 1(1)(b) of Schedule 3B to the Rent Officers Order which is applicable to the broad rental market area in which the accommodation is situated.

Subsidy in respect of self-contained accommodation, or owned or leased accommodation, made available by a registered housing association as temporary or short term accommodationE+W+S

17C.—(1) This article applies where—

(a)a rent allowance is payable by an authority; and

(b)a person (“P”) is required to pay a registered housing association for—

(i)accommodation which is not self-contained and which the registered housing association owns or holds on a lease; or

(ii)accommodation which is self-contained; and

(c)the registered housing association makes the accommodation available to P in pursuance of arrangements made with it by the authority—

(i)to discharge any of the authority’s functions under Part 3 of the Housing Act 1985, Part 7 of the Housing Act 1996[F125, Part 2 of the Housing (Wales) Act 2014] or Part 2 of the Housing (Scotland) Act 1987, as the case may be; or

(ii)to prevent P being or becoming homeless within the meaning of Part 7 of the Housing Act 1996[F126, Part 2 of the Housing (Wales) Act 2014 or] Part 2 of the Housing (Scotland) Act 1987[F127, as the case may be]; [F128and

(d)the accommodation is not exempt accommodation within the meaning given by paragraph 4(10) of Schedule 3 (transitional and savings provisions) to the Consequential Provisions Regulations.]

(2) Where this article applies the appropriate amount is the lowest of—

(a)the amount of housing benefit entitlement in a week or part week, as the case may be;

(b)the maximum amount determined in accordance with paragraph (3); or

(c)£500 where the dwelling is located in a broad rental market area listed in Schedule 8 (broad rental market areas in London) or £375 where the dwelling is located in any other broad rental market area.

[F129(3) The maximum amount referred to in paragraph (2) is 90% of the local housing allowance for January 2011 for the category specified in paragraphs 1(1)(b) to (f) of Schedule 3B to the Rent Officers Order (as in force on 1st January 2011) which applies to the accommodation and is applicable to the broad rental market area in which the accommodation is situated.]

(4) For the purposes of determining the applicable local housing allowance in paragraph (3)—

(a)for accommodation which is not self-contained, the applicable local housing allowance is the local housing allowance specified in paragraph 1(1)(b) of Schedule 3B to the Rent Officers Order; and

(b)for accommodation which is self-contained—

(i)where the total number of rooms suitable for living in and bedrooms in the accommodation is between two and five, at least one of those rooms is to be treated as a room suitable for living in; and

(ii)where the total number of rooms suitable for living in and bedrooms in the accommodation is six or more, at least two of those rooms are to be treated as rooms suitable for living in.]

Additions to subsidyE+W+S

18.—(1) Subject to [F130paragraph (8)], the additions referred to in article 13(1) are—

(a)where following the loss, destruction or non-receipt, or alleged loss, destruction or non-receipt of original instruments of payment of relevant benefit, an authority makes duplicate payments and the original instruments have been or are subsequently encashed, an amount equal to 25 per cent. of the amount of the duplicate payments;

[F131(b)subject to paragraphs (2) and (3), where, during the relevant year, it is discovered that an overpayment of F132... relevant benefit has been made and an amount is to be deducted under article 19 in relation to that overpayment, an amount equal to—

(i)in the case of a departmental error overpayment where the overpayment is overpayment of housing benefit, [F133100 per cent.] of so much of the overpayment as has not been recovered by the authority;

(ii)in the case of a departmental error overpayment where the overpayment is overpayment of F134... council tax benefit, [F135100 per cent.] of so much of the overpayment as has not been recovered by the authority;

F136( iia ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii)[F137except where heads (i) or (ii) above apply, 40 per cent. of the overpayment;]

F138( iv ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(c)where, during the relevant year, it is discovered that an overpayment in respect of which a deduction was made under article 11 or 19 of the 1994 Order, the 1995 Order, the 1996 Order or the 1997 Order (other than a deduction under article 11(1)(g) or 19(1)(c) of the 1994 Order or 11(1)(f) or 19(1)(c) of the 1995, 1996 or 1997 Orders) or, in respect of a year earlier than the relevant year, under article 19 (other than a deduction under article 19(1)(f)), as the case may be, was a fraudulent overpayment, the amount, if any, by which F139... [F14040 per cent.] of any such overpayment exceeds the amount of any subsidy that has been paid in respect of that overpayment;

[F141(d)where, during the relevant year, it is discovered that an overpayment in respect of which a deduction was made—

(i)under article 19 (other than a deduction under article 19(1)(ea)); and

(ii)in respect of a year which begins after 31st March 2001 and which is earlier than the relevant year,

was a claimant error overpayment, the amount, if any, by which 40 per cent. of any such overpayment exceeds the amount of any subsidy that has been paid in respect of that overpayment.]

[F142(e)where, during the relevant year, it is discovered that any overpayments of relevant benefit have been made which were authority error overpayments or administrative delay overpayments, the following amounts—

(i)i)where the total of the authority error overpayments and administrative delay overpayments is less than or equal to 0.48% of the total specified subsidy, 100% of the total of those overpayments;

(ii)where the total of the authority error overpayments and administrative delay overpayments is greater than 0.48% but less than or equal to 0.54% of the total specified subsidy, 40% of the total of those overpayments; and

(iii)where the total of the authority error overpayments and administrative delay overpayments is greater than 0.54% of the total specified subsidy, nil.]

[F143(f)where, during the relevant year, it is discovered that an overpayment in respect of which a deduction was made under article 19 (deductions made in calculating subsidy) was a payment on account overpayment, 100 per cent. of so much of the overpayment as has not been recovered by the authority.]

(2) The amount under paragraph (1)(b) shall not include an amount in relation to—

(a)an authority error overpayment;

(b)any technical overpayment; or

F144(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F145(d)an administrative delay overpayment;] [F146or

(e)a payment on account overpayment.]

(3) In the case of a departmental error overpayment, where some or all of that overpayment is recovered by the authority, no addition shall be applicable to the authority in respect of the amount so recovered.

[F147(4) In paragraphs (1)(b)(i) and (3) and in article 19(1)(e), “departmental error overpayment” means [F148an overpayment of a kind to which paragraph (4ZA) [F149or (4ZB)] applies or] an overpayment caused by a mistake made, whether in the form of an act or omission—

[F150(a)by an officer of the Department for Work and Pensions [F151or of the Inland Revenue], acting as such, or a person providing services to that Department [F152or to the Inland Revenue];]

(b)in a decision of an appeal tribunal or a Commissioner,

where the claimant, a person acting on his behalf or any other person to whom the payment is made did not cause or materially contribute to that mistake but excludes any mistake of law which is shown to have been an error only by virtue of a subsequent decision of a Commissioner or a court.]

[F153(4ZA) This paragraph applies to an overpayment where—

(a)the overpayment was made during the period beginning with 5th April 2003 and ending with 13th June 2003 (“the specified period”);

(b)the overpayment would, but for paragraph (4), fall to be regarded as an authority error overpayment on the ground that it was made as a result of a failure by the authority to take account of information about the amount of any tax credit payable to the claimant; and

(c)the Secretary of State is satisfied that the authority took reasonable steps to avoid making overpayments of the kind described in sub-paragraph (b) during the specified period.]

[F154(4ZB) This paragraph applies to an overpayment where—

(a)during the period beginning on 9th April 2012 and ending on 19th April 2012 (the “specified period”) an authority received a notification through the Automated Transfers to Local Authority System used by the Department for Work and Pensions to provide award data to relevant authorities in respect of a claimant (“the notification”);

(b)the notification received during the specified period was sufficient to require an authority to make a revision or supersession decision on a claimant’s award;

(c)the authority failed to make a revision or supersession decision on the basis of the notification received during the specified period before the next day on which the claimant’s benefit was paid;

(d)the authority’s failure to make a revision or supersession decision before the next day on which the claimant’s benefit was paid resulted in the overpayment; and

(e)the authority made a revision or supersession decision on the claimant’s award, based on the notification received during the specified period, on or before 10th July 2012.]

[F155(4A) In paragraph [F156(1)(d) and in article 19(1)(ea)], “claimant error overpayment” means an overpayment [F157which]—

(a)is caused by—

(i)the claimant, or

(ii)a person acting on the claimant’s behalf under regulation 71 of the Housing Benefit Regulations (who may claim housing benefit) or regulation 61 of the Council Tax Benefit Regulations (who may claim council tax benefit),

failing to provide information in accordance with regulation 72(1), 73 or 75 of, or paragraph 5 of Schedule A1 to, the Housing Benefit Regulations (duties on claimant to provide information) or regulation 62(1), 63 or 65 of, or paragraph 5 of Schedule A1 to, the Council Tax Benefit Regulations (duties on claimant to provide information); and

(b)is not a fraudulent overpayment.]

[F158(5) In paragraphs (1)(c) and (4A), and in article 19(1)(f), “fraudulent overpayment” means an overpayment in respect of a period falling wholly or partly after 31st March 1993 where the claimant has in respect of the overpayment—

(a)been found guilty of an offence whether under a statute or otherwise;

(b)made an admission after caution of deception or fraud for the purpose of obtaining relevant benefit; or

(c)agreed to pay a penalty under section 115A of the Act (penalty as an alternative to prosecution) and has not withdrawn that agreement.

(5A) In paragraph (5)(b) “admission after caution” means—

(a)in England and Wales, an admission after a caution has been administered in accordance with a Code issued under the Police and Criminal Evidence Act 1984;

(b)in Scotland, an admission after a caution has been administered, such admission being duly witnessed by two persons.]

[F159(6) [F160In paragraphs (1)(e) and (2)(a)], “authority error overpayment” means an overpayment caused by a mistake made, whether in the form of an act or omission, by an authority where the claimant, a person acting on his behalf or any other person to whom the payment is made did not cause or materially contribute to that mistake but excludes any mistake of law which is shown to have been an error only by virtue of a subsequent decision of a court.]

[F161(6ZA) In paragraphs (1)(e) and (2)(d), “administrative delay overpayment” means an overpayment arising where—

(a)an authority is notified of a change of circumstances and has sufficient information and evidence to make a revision or supersession decision on an award;

(b) the authority does not make the decision before the next day on which the claimant’s benefit is paid or, in the case of council tax benefit, is allowed; F162 ...

(c)the delay was not—

(i)caused by a mistake, whether in the form of an act or omission, by an authority; or

(ii)caused or materially contributed to by the claimant, a person acting on the claimant’s behalf, or any other person to whom payment is made][F163; and]

[F164(d)paragraph (4ZB) is not applicable.]

[F165(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.]

[F166(6A) In paragraph (1)(e), “total specified subsidy” means the total amount of housing benefit and council tax benefit that attracts 100 per cent subsidy for the relevant year, including any subsidy paid pursuant to article 14.]

[F167(7) Subject to paragraph (7A), in paragraph (2)(b) “technical overpayment” means an overpayment which occurs as a result of—

(a)a rebate or council tax benefit being awarded and entitlement to that rebate or benefit being reduced or eliminated because, subsequent to that award, the liability in respect of which the rebate or benefit was awarded was reduced or eliminated; or

(b)council tax benefit being awarded and entitlement to that benefit being reduced or eliminated because, subsequent to that award, there was a change of circumstances that does not fall within paragraph (a).

(7A) A technical overpayment does not include any part of the overpayment occurring—

(a)in a case to which paragraph (7)(a) applies, before the day on which the liability was reduced or eliminated; or

(b)in a case to which paragraph (7)(b) applies, before the day on which the authority suspended, revised or superseded the award, whichever is earliest.

(7B) In paragraphs (1)(f) and (2)(e), “payment on account overpayment” means an amount paid on account under regulation 93 of the Housing Benefit Regulations or regulation 74 of the Housing Benefit (State Pension Credit) Regulations (payment on account of a rent allowance) which is in excess of the entitlement to housing benefit as subsequently decided.]

(8) Except for [F168paragraphs (1)(b)(iii)], (1)(c) and (5), this article shall not apply to that part of any F169... relevant benefit in respect of a case to which [F170paragraph (12) of regulation 83 of the Housing Benefit Regulations, paragraph (13) of regulation 64 of the Housing Benefit (State Pension Credit) Regulations, paragraph (13) of regulation 69 of the Council Tax Benefit Regulations [F171or] paragraph (13) of regulation 53 of the Council Tax Benefit (State Pension Credit) Regulations] F172..., as the case may be, applies.

F173(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F174(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F174 [F175( 11 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12) Where, during the relevant year, an overpayment that has been classified as an overpayment under one of paragraphs (4), (4ZA) [F176, (4ZB)] (4A), (5), (6)[F177, (6ZA)] or (7) is reclassified, the addition referred to in article 13(1) shall be the amount payable under paragraph (1) for the final classification of the overpayment.]

Deductions to be made in calculating subsidyE+W+S

19.—(1) The deductions referred to in article 11(2)(b) are, subject to paragraph (4), to be of the following amounts where—

(a)subject to paragraphs (2) and (3), a tenant of an authority, who is in receipt of a rebate while continuing to occupy, or when entering into occupation of a dwelling as his home, either under his existing tenancy agreement or by entering into a new tenancy agreement—

(i)is during, or was at any time prior to, the relevant year able to choose whether or not to be provided with any services, facilities or rights (“improvements") and chooses or chose to be so provided;

(ii)is during, or was at any time prior to, the relevant year, able to choose either to be provided with any improvements or, whether or not in return for an award or grant from the authority, to provide such improvements for himself; or

(iii)would be able during, or would have been able at any time prior to, the relevant year to exercise the choice set out in head (i) or (ii) of this sub-paragraph if he were not or had not at that time been in receipt of a rebate,

the amounts attributed during the relevant year to such improvements whether they are or would be expressed as part of the sum fixed as rent, otherwise reserved as rent or expressed as an award or grant from the authority;

(b)during the relevant year a person becomes entitled to a rent-free period which has not been, or does not fall to be, taken into account in calculating the amount of rebate to which he is entitled under the Housing Benefit Regulations, the amount of rebate which is or was payable to him in respect of such rent-free period;

(c)during the relevant year an award in the form of a payment of money or monies worth, a credit to the person’s rent account or in some other form is made by an authority to one of its tenants in receipt of a rebate, whether or not the person is immediately entitled to the award, the amount or value of the award, but no such deduction shall be made in respect of an award—

(i)made to a tenant for a reason unrelated to the fact that he is a tenant;

(ii)made under a statutory obligation;

(iii)made under section 137 of the Local Government Act 1972 M29 or section 83 of the Local Government (Scotland) Act 1973 M30 (power of local authorities to incur expenditure for certain purposes not otherwise authorised);

(iv)except where sub-paragraph (a)(ii) applies, made as reasonable compensation for reasonable repairs or redecoration the tenant has, or has caused to be, carried out whether for payment or not and which the authority would otherwise have carried out or have been required to carry out; or

(v)of a reasonable amount made as compensation for loss, damage or inconvenience of a kind which occurs only exceptionally and which was suffered by the tenant by virtue of his occupation of his home;

F178(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)during the relevant year an amount is recovered in relation to a departmental error overpayment, within the meaning of article 18(4), the amount so recovered, in a case where the overpayment had occurred and been discovered in a year earlier than the relevant year;

[F179(ea)during the relevant year a claimant error overpayment, within the meaning of article 18(4A), is identified, the amount of the overpayment, but only to the extent that the amount of the overpayment or any part of it has not been deducted from qualifying expenditure under article 11(2);]

(f)during the relevant year a fraudulent overpayment, within the meaning of article 18(5), is identified, the amount of the overpayment, but only to the extent that the amount of overpayment or any part of it has not been deducted from qualifying expenditure under article 4 or 19 of the 1994 Order, the 1995 Order, the 1996 Order or the 1997 Order or article 11(2), as the case may be;

(g)subject to sub-paragraphs (e)[F180, (ea)] and (f), during the relevant year it is discovered that an overpayment of relevant benefit has been made, the amount of such overpayment, but only to the extent that—

(i)the amount of such overpayment or any part of it has not been deducted from qualifying expenditure under article 3 of the 1989 Order or the 1990 Order or under article 4 or 15 of the 1991 Order or articles 4 or 16 of the 1992 Order or the 1993 Order or articles 4 or 19 of respectively the 1994 Order, the 1995 Order, the 1996 Order or the 1997 Order, or article 11(2), as the case may be; and

(ii)the amount of the overpayment or any part of it does not include an amount to which paragraph (15) of regulation 72 of the [F181Housing Benefit (General) Regulations 1987], F182..., paragraph (18) of regulation 59 of the Housing Benefit (Community Charge Rebates) (Scotland) Regulations 1988 M31, paragraph (16) of regulation 62 of the [F183Council Tax Benefit (General) Regulations 1992][F184, F185... paragraph (12) of regulation 83 of the Housing Benefit Regulations, paragraph (13) of regulation 64 of the Housing Benefit (State Pension Credit) Regulations, paragraph (13) of regulation 69 of the Council Tax Benefit Regulations or paragraph (13) of regulation 53 of the Council Tax Benefit (State Pension Credit) Regulations] (time and manner in which claims are to be made), as the case may be, applied;

(h)during the relevant year any instrument of payment of relevant benefit issued by an authority during that year is returned to that authority without being presented for payment or is found by that authority to have passed its date of validity without being presented for payment, the amount of any such instrument;

(i)during the relevant year an amount is recovered in respect of which subsidy was paid pursuant to paragraph 6(2) of Schedule 6 to the 1996 Order or the 1997 Order or paragraph 11(2) of Schedule 4 (subsidy on payments on account), the amount so recovered, where the payment on account was made in a year earlier than the relevant year.

(2) Subject to paragraph (3), no deduction shall be made under sub-paragraph (1)(a) where the eligible rent for a tenant has been increased in a case to which that sub-paragraph would apply, but—

(a)any such services, facilities or rights (“improvements")—

(i)relate solely to the physical needs of the property in question or the needs of that tenant; and

(ii)the increased rent in relation to such improvements is reasonable;

(b)the tenant was eligible whether or not he was a beneficiary; and

(c)the authority has not let properties, to which they intend to make improvements, either in the relevant year or in the two years preceding that year, solely or largely to beneficiaries.

(3) In paragraph (2)—

(a)“beneficiary" has the meaning it is given by article 15(8); and

(b)in a case to which article 24 applies, sub-paragraph (c) shall have effect as modified by article 24(2).

(4) Where in relation to any amount of a rebate or allowance a deduction falls to be made under two or more of the sub-paragraphs of paragraph (1), as the case may be, only the higher or highest, or, where the amounts are equal, only one amount, shall be deducted.

Deduction from subsidyE+W+S

20.  Where, during the relevant year, it is found by an authority that any instrument of payment issued by it as payment of any relevant benefit F186... on or after 1st April 1988, but before the relevant year, has been returned to that authority without having been presented for payment or has passed its date of validity without having been presented for payment, the deduction referred to in article 13(1) shall be the amount of any subsidy that has been paid in respect of that instrument.

[F187Deductions from subsidy for rebate for dwellings within the Housing Revenue AccountE+W+S

20A.—(1) This article applies—

(a)in the case of an authority in England, where paragraph 2 of Schedule 4A applies, and

(b)in the case of an authority in Wales, where paragraph 4 of that Schedule applies.

(2) Where this article applies the deduction from subsidy referred to in article 13(1) shall be calculated—

(a)in the case of an authority in England, in accordance with paragraph 3 of Schedule 4A, and

(b)in the case of an authority in Wales, in accordance with paragraph 5 of that Schedule.]

Additions to and deductions from subsidy in respect of benefit savingsE+W+S

F18821.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART IVE+W+S TRANSITIONAL AND SAVINGS

Provisions for claims for 1997/98E+W+S

F18922.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transitional provisions in relation to rent officer determinationsE+W+S

23.—(1) In the relevant year commencing on 1st April 1997, the expression “property-specific rent less ineligible amounts" in both paragraph 17(1) of Schedule 4 and paragraph 13(1) of Schedule 6 to the 1997 Order has effect as if after the words “(“ineligible payments")", there were inserted the words “ or, in the case of a determination prior to 2nd October 1995, the authority is of the opinion that the exceptionally high rent did not include ineligible payments, ”.

F190(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modifications of exemption from improvements ruleE+W+S

24.—(1) This article applies in the case of a new authority, a 1997 authority or a 1998 authority, as the case may be, and, in these cases, the modifications set out in paragraph (2) shall apply.

(2) In relation to the relevant year commencing on—

(a)1st April 1997, in the case of a—

(i)new authority, for the words “or in the two years preceding that year" in article 19(2)(c) there shall be substituted the words “ or in the year preceding that year ”;

(ii)1997 authority, the words “or in the two years preceding that year" shall be omitted from article 19(2)(c);

(b)1st April 1998, in the case of a—

(i)1997 authority, for the words “or in the two years preceding that year" in article 19(2)(c) there shall be substituted the words “ or in the year preceding that year ”;

(ii)1998 authority, the words “or in the two years preceding that year" shall be omitted from article 19(2)(c);

(c)1st April 1999, in the case of a 1998 authority, for the words “or in the two years preceding that year" in article 19(2)(c) there shall be substituted the words “ or in the year preceding that year ”.

Article 12(1)(b)

[F191SCHEDULE 1E+W+SSums to be used in the calculation of subsidy

Article 12(1)(c)

F193SCHEDULE 1AE+W+SAdditional amount of subsidy: Activities to reduce fraud and error

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 12(1)(ba)

[F194SCHEDULE 1ZAE+W+SAdditional amount of subsidy: Right Benefit Initiative

InterpretationE+W+S

1.  In this Schedule—

“participating authority” means an authority which notified the Secretary of State on or before 21st April 2017 that it is participating in the Right Benefit Initiative in the administration of housing benefit described in the Housing Benefit Circular HB A7/2017 (“the Right Benefit Initiative”) ;

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

Additional amount: relevant year beginning with 1st April 2017E+W+S

2.  The additional amount of subsidy for a participating authority for the relevant year beginning with 1st April 2017 is the amount specified for that authority in the Housing Benefit Circular HB S6/2017 published by the Department for Work and Pensions on 30thMarch 2017.

Use and recovery of amount paid under paragraph 2E+W+S

3.—(1) A participating authority must use the additional amount received under paragraph 2 in connection with relevant activities.

(2) The Secretary of State may recover some or all of the additional amount paid to a participating authority under paragraph 2 where satisfied that that authority has not used that amount in connection with relevant activities.]

Article 12(b)

F195SCHEDULE 2E+W+S ADJUSTMENT FOR PRIORITISATION OF CLAIMS

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Article 13(3)

F196SCHEDULE 3E+W+S CALCULATION OF DEDUCTIONS FROM SUBSIDY IN RESPECT OF PERIOD OVERRUNS

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Articles 13(1) and 16

SCHEDULE 4E+W+S HIGH RENTS AND RENT ALLOWANCES

F197PART IE+W+S REGULATED TENANCIES

F1971.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S

PART IIE+W+S RENT OFFICERS’ DETERMINATIONS

Calculation of the appropriate amountE+W+S

2.  The appropriate amount, in a case to which this Part applies, in respect of that part of the qualifying expenditure which is attributable to allowances granted for the period beginning on the relevant date and ending on the termination date, shall be calculated in accordance with [F198paragraph 6, 7, 8 or 9] as appropriate.

Rent officers’ determinationsE+W+S

3.  Except in a case to which Part III applies, this Part applies where an authority applies to a rent officer for a determination to be made under the Rent Officers Order or the Rent Officers Order 1995 in relation to a dwelling and the officer makes such a determination.

4.  This Part also applies in a case where the dwelling A is in a hostel and, by virtue of [F199regulation 14(4) of the Housing Benefit Regulations or, as the case may be, regulation 14(4) of the Housing Benefit (State Pension Credit) Regulations] (exemptions from requirement to refer to rent officers), an application for a determination in respect of that dwelling A is not required, because the dwelling is regarded as similar to dwelling B in that hostel in respect of which a determination has been made, and in such a case the determination made in respect of dwelling B shall, for the purposes of this Part, be treated as if it were a determination in respect of dwelling A.E+W+S