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STATUTORY INSTRUMENTS

2006 No. 559

SOCIAL SECURITY

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

  Made 2nd March 2006 
  Laid before Parliament 9th March 2006 
  Coming into force 1st April 2006 

The Secretary of State for Work and Pensions makes the following Order in exercise of the powers conferred upon him by sections 140B, 140F(2) and 189(1), (4), (5) and (7) of the Social Security Administration Act 1992[1].

     In accordance with section 189(8) of that Act he has sought the consent of the Treasury[2]. In accordance with section 176(1) of that Act he has consulted with organisations appearing to him to be representative of the authorities concerned[3].

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

    (2) In this Order, "the 1998 Order" means the Income-related Benefits (Subsidy to Authorities) Order 1998[4].

    (3) This Order extends to England and Wales.

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



Signed by authority of the Secretary of State for Work and Pensions.


James Plaskitt
Parliamentary Under-Secretary of State, Department for Work and Pensions

2nd March 2006



We consent


Gillian Merron

Tom Watson
Two of the Lords Commissioners of Her Majesty's Treasury

2nd March 2006



SCHEDULE
Article 2


AMENDMENTS TO SCHEDULE 4A TO THE 1998 ORDER


     1. In paragraph 1 (interpretation), after the definition of "rent" insert—

     2. In paragraph 2 (England – liability to deduction)—

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

     4. For Part 3 there shall be substituted—




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

     6. For Part 5 there shall be substituted—





EXPLANATORY NOTE

(This note is not part of the Order)


This Order amends the Income-related Benefits (Subsidy to Authorities) Order 1998 (S.I. 1998/562) ("the 1998 Order"), which provides for the calculation and payment of housing benefit subsidy to local authorities in England and Wales, in respect of rent rebates for dwellings within the authorities' Housing Revenue Accounts.

With respect to authorities in England, the Schedule to this Order amends Schedule 4A to the 1998 Order to substitute the GDP deflator, the annual factor and the weekly rent limit for the purposes of determining whether or not an authority is liable to a deduction from subsidy payable for 2006-07 (paragraphs 2 and 4). The RPI figure replaces the GDP Deflator as the measure of inflation. It substitutes a rebate proportion for that year for the purpose of calculating the amount of the deduction (paragraph 3). The manner for calculating a dwelling's average weekly rent and service charges has also been amended.

With respect to authorities in Wales, the Schedule to this Order amends Schedule 4A to the 1998 Order to substitute the specified amount "O" and the guideline rent increase for the purposes of determining whether or not an authority is liable to a deduction from subsidy payable for 2006-07 (paragraph 6). It also substitutes a rebate proportion for that year for the purpose of calculating the amount of the deduction (paragraph 5). By virtue of paragraph 4 of Schedule 4A to the 1998 Order, the amendment to the average weekly rent calculation also applies to Wales.

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business.

Notes:

 [1] 1992 c.5. Sections 140B and 140F were inserted by paragraph 4 of Schedule 12 to the Housing Act 1996 (c.52). Section 140B was amended by section 10 of, and paragraph 7 of Schedule 1 to, the Social Security Administration (Fraud) Act 1997 (c.47) and paragraph 36 of Schedule 7 to the Local Government Act 2003 (c.26). Section 189(1) and (4) to (6) was amended by paragraph 109 of Schedule 7 to the Social Security Act 1998 (c.14); section 189(1) was amended by paragraph 57(2) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c.2) and Schedule 6 to the Tax Credits Act 2002 (c.21); section 189(7) was amended by paragraph 24 of Schedule 9 to the Local Government Finance Act 1992 (c.14) and paragraph 10 of Schedule 1 to the Social Security Administration (Fraud) Act 1997.back

[2] Section 189(8) is amended by paragraph 3(5) of Schedule 13 to the Housing Act 1996, paragraph 10 of Schedule 3 to the Social Security (Recovery of Benefits) Act 1997 (c.27), paragraph 57(3) of Schedule 3 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 and paragraph 3 of Schedule 4 to the Tax Credits Act 2002 (c.21).back

[3] Section 176(1) is amended by paragraph 3(4) of Schedule 13 to the Housing Act 1996.back

[4] S.I. 1998/562. The relevant amending instruments are S.I. 2004/646, S.I. 2005/535 and S.I. 2006/54.back


ISBN 0 11 074162 5


 © Crown copyright 2006

Prepared 9 March 2006

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URL: http://www.bailii.org/uk/legis/num_reg/2006/20060559.html