PART 1 PRELIMINARY

Citation, commencement and extent

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

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

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

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

2. —(1)The Income-related Benefits (Subsidy to Authorities) Order 1998( 5 ) is amended in accordance with the following provisions of this Part.

(2) Articles 3 and 4 and Schedules 1 and 2 have effect for the purpose of determining subsidy payable for the relevant year( 6 ) beginning with 1st April 2020.

(3) In relation to article 5—

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

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

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

and Schedules 3 and 4 have effect accordingly.

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

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

The amount of an authority’s subsidy

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

Housing Benefit Award Accuracy Initiative

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

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

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

Rent rebate deductions from the subsidy of an authority in Wales

5. —(1) For article 20A substitute—

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

20A. —(1) Paragraph (2) applies in relation to an authority in Wales.

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

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

(3) In the substituted Schedule 4A—

(a) for paragraph 3(2) substitute—

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

(b) in paragraph 4—

(i) for “2020” substitute “2021”;

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

Additional amount of subsidy: Verify Earnings and Pension Alerts Service

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

“ Additional amount: relevant year beginning with 1st April 2021

2. The additional amount of subsidy for an authority for the relevant year beginning with 1st April 2021 is the amount specified for that authority in the Housing Benefit Circular HB S6/2021 published by the Department for Work and Pensions on 19th April 2021 ( 7 ) . ” .

Minor amendments

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

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

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

8. —(1)The Discretionary Housing Payments (Grants) Order 2001( 8 ) is amended as follows.

(2) The amendments made by this article have effect in respect of any year( 9 ) commencing on or after 1st April 2021.

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

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

(i) omit “and council tax benefit”; and

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

(b) after the renumbered article 2(1) insert—

“ (2) For the purpose of paragraph (1), a “relevant award of universal credit” means an award of universal credit, the calculation of which includes an amount under section 11 of the Welfare Reform Act 2012 ( 10 ) , calculated in accordance with Schedule 4 to the Universal Credit Regulations 2013 ( 11 ) , or would include such an amount but for paragraph 3(h) or (i) of Schedule 1 to those Regulations. ” .

(4) In article 3 (claims)—

(a) in paragraph (2)—

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

(ii) for sub-paragraph (e), substitute—

“ (e) by 31st October in a relevant year—

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

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

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

(5) For article 6 (payment), substitute—

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

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

Article 3

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

Article 12(1)(b)

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

Article 4(2)

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

Article 12(1)(bzb)

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

Interpretation

1. In this Schedule—

“HBAAI” means the Housing Benefit Award Accuracy Initiative set out in Housing Benefit Circular HB A9/2020 published by the Department for Work and Pensions on 7th August 2020 ( 12 ) ;

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

Additional amount: relevant year beginning with 1st April 2020

2. The additional amount of subsidy for an authority for the relevant year beginning with 1st April 2020 is the amount (if any) specified for that authority in the Housing Benefit Circular HB S8/2020 published by the Department for Work and Pensions on 2nd November 2020 ( 13 ) .

Use of amount paid under paragraph 2

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

Article 5(2)

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

Article 20A

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

Interpretation

1. In this Schedule—

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

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

Liability to deduction

2. —(1) This paragraph applies in relation to the relevant year if—

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

(b) O + P is less than Q where—

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

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

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

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

Amount of deduction

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

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

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

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

(b) divide the result of paragraph (a) by Q;

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

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

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

(ii) divide the result of paragraph (i) by Q;

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

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

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

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

Amounts for the purposes of paragraph 2

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

Article 5(3)(b)

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

Article 7

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

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

2. In article 2—

(a) omit the definition of “base data return””;

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

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

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

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

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

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

6. In article 11—.

(a) in paragraph (1)—

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

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

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

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

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

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

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

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

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

8. —(1) Article 13 is amended as follows.

(2) For the heading substitute “Housing benefit”.

(3) In paragraph (1)—

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

(b) in sub-paragraph (b)—

(i) at the end of head (i) insert “and”;

(ii) omit head (ii);

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

9. In article 14—

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

(b) omit paragraph (3).

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

11. —(1) Article 18 is amended as follows.

(2) In paragraph (1)—

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

(b) in sub-paragraph (b)—

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

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

(iii) omit head (ii);

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

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

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

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

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

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

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

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

(8) In paragraph (8)—

(a) for “relevant benefit” substitute “housing benefit”;

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

12. In article 19(1)—

(a) in sub-paragraph (g)—

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

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

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

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

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

(a) “the aggregate of”; and

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