PART IGENERAL

Citation, commencement and interpretation

1.-(1) This Order, which may be cited as the Housing Benefit and Council Tax Benefit (Subsidy) Order 1994, shall come into force on 31st March 1994.

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

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

"period overrun" has the meaning assigned to it by paragraph 1 of Schedule 4;

"relevant year" means the year ending 31st March 1994;

"the 1991 Order" means the Housing Benefit and Community Charge Benefit (Subsidy) Order 1991(3);

"the 1992 Order" means the Housing Benefit and Community Charge Benefit (Subsidy) Order 1992(4);

"the 1993 Order" means the Housing Benefit and Community Charge Benefit (Subsidy) (No.2) Order 1993(5).

(3) In this Order, a reference to a numbered article or Schedule is to the article in, or Schedule to, this Order bearing that number and, unless the context otherwise requires, a reference in an article or a Schedule to a numbered paragraph or Part is to the paragraph or Part, as the case may be, bearing that number in that article or that Schedule.

PART IIHOUSING BENEFIT SUBSIDY

Interpretation of Part II

2.-(1) In this Part of this Order, unless the context otherwise requires-

"the 1982 Act" means the Social Security and Housing Benefits Act 1982(6);

"allowance" means a rent allowance;

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

"board and lodging accommodation" means-

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(7) nor in a hostel within the meaning of regulation 12A of the Housing Benefit Regulations(8);

"housing benefit subsidy" means subsidy under section 135(1) of the Act (rate rebate, rent rebate and rent allowance subsidy payable) and under section 30(1A) of the Social Security Act 1986(9) (community charge rebate subsidy payable);

"rebate" means a rent rebate excluding, in the case of England and Wales, any Housing Revenue Account rebates(10);

"relevant date" has the meaning it is given for the purposes of Schedule 6 in paragraph 7 of that Schedule;

"scheme" means the housing benefit scheme as defined in section 123 of the Social Security Contributions and Benefits Act 1992(11);

"the Housing Benefit Regulations" means the Housing Benefit (General) Regulations 1987(12);

"the Rent Officers Order" means the Rent Officers (Additional Functions) Order 1990(13) or, as the case may be, the Rent Officers (Additional Functions) (Scotland) Order 1990(14);

"termination date" has the meaning it is given for the purposes of Schedule 6 in paragraph 8 of that Schedule,

and other expressions used in this Order and in the Housing Benefit Regulations shall have the same meanings in this Order as in those Regulations.

(2) In this Part of this Order-

• "housing benefit qualifying expenditure" means the total of rebates and allowances granted by the authority during the relevant year, less-

  (a)

  the deductions specified in article 11; and

  (b)

  where, under subsection (8) of section 134 of the Act(15) (arrangements for housing benefit), the authority has modified any part of the scheme administered by it, any amount by which the total of the rebates or allowances which it granted under the scheme during the relevant year exceeds the total of those which it would have granted if the scheme had not been so modified.

Amount of housing benefit subsidy

3. The amount of an authority's housing benefit subsidy for the relevant year-

(a)for the purposes of section 135(2) of the Act (subsidy in respect of rebates or allowances) shall be the amount or total of the amounts calculated in accordance with article 4;

(b)for the purposes of section 135(5) of the Act (subsidy in respect of the costs of administering housing benefit) may include an additional sum in respect of the costs of administering housing benefit calculated in accordance with Schedules 1 and 2.

Rebates and allowances

4.-(1) Subject to any adjustment in accordance with paragraph (3), for the purposes of section 135(2) of the Act, an authority's housing benefit subsidy for the relevant year shall, subject to paragraph (2), be-

(a)in the case of an authority to which articles 5, 6, 7, 8 and 9 do not apply, 95 per cent.of its housing benefit qualifying expenditure;

(b)in the case of an authority to which at least one of those articles is relevant an amount equal to the aggregate of-

(i)95 per cent.of so much of its housing benefit qualifying expenditure as remains after deducting from total qualifying expenditure the amount of expenditure attributable to the rebates or allowances to which each of those articles which is relevant applies; and

(ii)the appropriate amount calculated in respect of the rebates or allowances under each such article,

plus, in each case, the additions, where applicable, under article 10 but subject, in each case, to the deduction, where applicable, under article 12.

(2) Where the authority is the Scottish Homes or a new town corporation in Scotland, its housing benefit subsidy for the relevant year shall include a further sum being-

(a)in the case of an authority to which sub-paragraph (a) of paragraph (1) applies, 5.5 per cent.of its housing benefit qualifying expenditure, but subject to the relevant maximum specified in column (2) of Schedule 3; or

(b)in the case of an authority to which sub-paragraph (b) of paragraph (1) applies, 5.5 per cent.of so much of its housing benefit qualifying expenditure as remains after the deductions set out in paragraph (1)(b)(i), but subject to the relevant maximum specified in column (2) of Schedule 3.

(3) Where, during the relevant year there is a period overrun in respect of either rebates or allowances, or both, then the housing benefit subsidy for the authority for that year shall be adjusted by the deduction from the subsidy otherwise due under this article of-

(a)an amount equal to the percentage, as calculated in accordance with paragraph 2 of Schedule 4, of that part of the housing benefit qualifying expenditure for that authority attributable to expenditure in respect of allowances to the extent that the overrun relates to allowances; and

(b)an amount equal to the percentage, as calculated in accordance with paragraph 3 of Schedule 4, of that part of the housing benefit qualifying expenditure for that authority attributable to expenditure in respect of rebates to the extent that the overrun relates to rebates.

Backdated benefit

5.-(1) Subject to paragraph (2), where-

(a)during the relevant year an authority has, under paragraph (15) of regulation 72 of the Housing Benefit Regulations, treated any claim for a rebate or allowance as made on a day earlier than that on which it is made; and

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

for the purposes of article 4(1)(b)(ii), the appropriate amount for the relevant year in respect of such part shall be 50 per cent.of the housing benefit qualifying expenditure so attributable.

(2) This article shall not apply in a case to which article 10(1)(b)(ii) applies.

Disproportionate rent increase

6.-(1) Except in a case to which paragraph (6) or (7) applies, and for the purposes of article 4(1)(b)(ii), where the average rent increase differential, as calculated in accordance with paragraph (4), for an appropriate authority has a value greater than zero, the appropriate amount for such part of the housing benefit qualifying expenditure as is attributable to rent rebates granted during the relevant year shall be 25 per cent.of that portion of the housing benefit qualifying expenditure as is determined in accordance with paragraph (4).

(2) For the purposes of paragraphs (3) and (4)-

(a)the value of C shall be determined by dividing B by A where-

• A is the average rent charged by the authority to Category A tenants on the first relevant date, and

• B is the average rent charged by the authority to Category B tenants on the second relevant date;

(b)the value of F shall be determined by dividing E by D where-

• D is the average rent for Category B tenants on the first relevant date, and

• E is the average rent for Category B tenants on the second relevant date;

(c)the value of I shall be determined by dividing H by G where-

• G is the average rent charged by the authority in respect of Category 1 dwellings on the second relevant date, and

• H is the average rent charged by the authority in respect of Category 1 dwellings on the third relevant date; and

(d)the value of L shall be determined by dividing K by J where-

• J is the average rent charged by the authority in respect of Category 2 dwellings on the second relevant date, and

• K is the average rent charged by the authority in respect of Category 2 dwellings on the third relevant date.

(3) In this article the average rent increase differential for each appropriate authority shall be calculated by applying the formula-

(4) The portion of housing benefit qualifying expenditure attributable to rent rebates granted during the relevant year and referred to in paragraph (1), shall be determined by dividing the average rent increase differential by the product of (F x L), where F and L have the values given to them in paragraph (2) respectively.

(5) In this article-

"average" means the arithmetic mean;

"Category A tenants" means tenants of the authority, other than a specified person, who on the first and second relevant dates were in receipt of rent rebates and were resident at the same address on both dates;

"Category B tenants" means tenants of the authority, other than a specified person, who were not in receipt of rent rebates on the first and second relevant dates but were resident at the same address on both dates;

"Category 1 dwellings" means dwellings rented out by the authority on both the second and the third relevant dates in respect of which, on the third relevant date, the persons, other than a specified person, liable to pay such rent were in receipt of rent rebates;

"Category 2 dwellings" means dwellings rented out by the authority on both the second and the third relevant dates in respect of which, on the third relevant date, the persons, other than a specified person, liable to pay such rent were not in receipt of rent rebates;

"first relevant date" means a date, other than a day falling in a rent free period, determined by the authority, occurring in March 1989;

"second relevant date" means the 11th November 1991;

"third relevant date" means the date in March 1994 which corresponds to the first relevant date, but if the date in March 1994 falls in a rent free period the date in March which is closest to it and which does not fall in a rent free period;

"rent" means either--

as the authority may determine, provided that wherever the expression "rent" occurs in paragraph (2) it has the same meaning throughout in relation to that authority; and

"a specified person" means a person required to pay an amount to an authority under section 35(2)(b) of the Housing (Scotland) Act 1987(17) for accommodation which is board and lodging accommodation.

(6) This article shall not apply in a case to which article 9 applies.

(7) In England and Wales this article shall only apply to expenditure attributable to rent rebates granted by new town corporations and the Development Board for Rural Wales.

Treatment of high rents

7.-(1) Subject to paragraphs (3) and (4), where any part of the housing benefit qualifying expenditure of an authority within an area listed in column 1 of Schedule 5 is attributable to any allowance granted in respect of a person whose weekly eligible rent exceeds the threshold specified in relation to that area in column 2 of that Schedule, for the purposes of article 4(1)(b)(ii), the appropriate amount in respect of that allowance shall be calculated in accordance with paragraph (2).

(2) Where paragraph (1) applies--

(a)if the allowance granted is the same as or is less than the excess of eligible rent over the threshold, the appropriate amount shall be 25 per cent.of that part of the housing benefit qualifying expenditure attributable to such allowance;

(b)if the allowance granted is greater than the excess of the eligible rent over the threshold, the appropriate amount shall be 25 per cent.of that part of the housing benefit qualifying expenditure attributable to such allowance which is equal to the excess, and 95 per cent.of that part of the housing benefit qualifying expenditure attributable to the balance.

(3) Paragraph (1) shall not apply to an allowance payable by an authority in respect of rents which exceed the threshold-

(a)which are registered in respect of a dwelling under Part IV, V or VI of the Rent Act 1977(18) or Part V, VI or VII of the Rent (Scotland) Act 1984(19) or which have been determined by a rent assessment committee in respect of a dwelling under Part I of the Housing Act 1988(20) or Part II of the Housing (Scotland) Act 1988(21); or

(b)which have been referred to the rent officer under the Rent Act 1977 or the Rent (Scotland) Act 1984 but not registered by him because he is satisfied that the rent is at or below the fair rent level; or

(c)where a rent assessment committee has not made a rent determination because they are satisfied that the rent is at or below the fair rent level and a rent officer is not required to make a determination under paragraph 7(2) of Schedule 1 to the Rent Officers Order(22); or

(d)where the relevant tenancy is one to which, before 15th January 1989, the provisions of sections 56 to 58 of the Housing Act 1980(23) (assured tenancies) applied; or

(e)where the relevant dwelling is situated within the area of a housing action trust established under Part III of the Housing Act 1988(24) (Housing Action Trust Areas); or

(f)where the dwelling is an excluded tenancy by virtue of paragraph 3 or 10 of Schedule 1A to the Housing Benefit Regulations(25) (excluded tenancies).

(4) This article shall not apply in a case to which article 8 applies.

Rent officers' determinations

8.-(1) Where this article applies, in respect of that part of the housing benefit qualifying expenditure which is attributable to allowances granted for the period beginning on the relevant date and ending on the termination date, the appropriate amount, for the purposes of article 4(1)(b)(ii), shall be calculated in accordance with Schedule 6.

(2) This article applies where-

(a)an authority applies to a rent officer for a determination to be made under the Rent Officers Order in relation to a dwelling; and

(b)the officer makes a determination under that Order.

(3) Except in a case to which paragraph (4) applies, this article also applies where an authority is required to apply for a determination in relation to a dwelling during the relevant year under regulation 12A of the Housing Benefit Regulations(26) (requirement to refer to rent officers) which a rent officer would be required to make, but the authority fails to apply for that determination.

(4) This paragraph applies in a case where-

(a)the dwelling (A) is in a hostel; and

(b)by virtue of regulation 12A(2) of the Housing Benefit Regulations an application for a determination in respect of that dwelling (A) is not required because the dwelling is regarded as similar to another 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 article, be treated as if it were a determination in respect of dwelling (A).

(5) This article also applies where a rent officer has made a determination in respect of a tenancy of a dwelling and by virtue of paragraph 2 of Schedule 1A to the Housing Benefit Regulations(27) (excluded tenancies) a new determination is not required in respect of another tenancy of the dwelling, and in such a case the determination made shall, for the purposes of this article, be treated as if it were a determination made in respect of that tenancy.

(6) Where a determination as to the rent which a landlord might reasonably be expected to obtain in respect of a dwelling is made by a rent assessment committee following a determination made by a rent officer under paragraph 1 of Schedule 1 to the Rent Officers Order, this article shall cease to apply in so far as it relates to a determination made by a rent officer under paragraph 1 of Schedule 1 to the Rent Officers Order from the date on which the rent assessment committee's determination takes effect.

(7) Where no determination as to the rent which a landlord might reasonably be expected to obtain in respect of a dwelling is required to be made by the rent officer in accordance with article 5(2) of the Rent Officers Order(28) this article shall cease to apply in so far as it relates to a determination made by a rent officer under paragraph 1 of Schedule 1 to the Rent Officers Order from the date of the application to the rent assessment committee, or 1st April 1993, whichever is the later date.

Homeless cases

9.-(1) Where paragraph (3) applies, any part of the housing benefit qualifying expenditure of an authority within an area listed in column (1) of Schedule 7 attributable to any rebate granted in respect of a person whose weekly eligible rent exceeds the threshold specified in relation to that area in column (2) of that Schedule, then for the purposes of article 4(1)(b)(ii), the appropriate amount in respect of that rebate shall be calculated in accordance with paragraph (2).

(2) Where paragraph (1) applies-

(a)if the rebate granted is the same as or is less than the amount by which the eligible rent exceeds the threshold, the appropriate amount shall be-

(i)in the case of rebates granted in respect of rents specified in paragraph (3)(d), nil per cent.of that part of the housing benefit qualifying expenditure attributable to such rebates; and

(ii)in the case of rebates granted in respect of rents specified in paragraph (3)(a) to (c), 25 per cent. of that part of the housing benefit qualifying expenditure attributable to such rebates;

(b)if the rebate granted is greater than the amount by which the eligible rent exceeds the threshold, the appropriate amount shall be-

(i)in the case of rebates granted in respect of rents specified in paragraph (3)(d), nil per cent.of that part of the housing benefit qualifying expenditure attributable to such rebates which is equal to the excess; and

(ii)in the case of rebates granted in respect of rents specified in paragraph (3)(a) to (c), 25 per cent.of that part of the housing benefit qualifying expenditure attributable to such rebates which is equal to the excess,

and 95 per cent.of that part of the housing benefit qualifying expenditure attributable to the balance.

(3) This paragraph applies where a rebate is payable by an authority in respect of rents which exceed the threshold, which-

(a)a person is required to pay to an authority under section 69(2)(b) of the Housing Act 1985(29) or section 35(2)(b) of the Housing (Scotland) Act 1987(30), as the case may be, for board and lodging accommodation made available to that person;

(b)a person is required to pay to an authority under section 69(2)(b) of the Housing Act 1985 or section 35(2)(b) of the Housing (Scotland) Act 1987, as the case may be, for accommodation, which the authority holds on a licence agreement from a landlord, made available to that person;

(c)a person is required to pay to an authority for accommodation outside the Housing Revenue Account, which the authority holds on a lease granted for a term not exceeding 3 years, made available to that person;

(d)in the case of Scotland, a person is required to pay to an authority for accommodation within the Housing Revenue Account, which the authority holds on a lease granted for a term not exceeding 3 years, made available to that person.

Additions to housing benefit subsidy

10.-(1) Subject to paragraphs (8) and (9), the additions referred to in article 4(1) are-

(a)where following the loss, destruction or non-receipt, or alleged loss, destruction or non-receipt of original instruments of payment, 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;

(b)subject to paragraphs (2) and (3), where during the relevant year it is discovered that an overpayment of rebate or allowance has been made and an amount is to be deducted under article 11 in relation to that overpayment, an amount equal to-

(i)in the case of an overpayment caused by departmental error, 95 per cent.of so much of the overpayment as has not been recovered by the authority;

(ii)in the case of a fraudulent overpayment 95 per cent.of the overpayment; or

(iii)except where head (i) or (ii) applies, 25 per cent.of the overpayment.

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

(a)an overpayment caused by an error of the authority making the payment, or

(b)any technical overpayment.

(3) Where an overpayment is caused by departmental error, but the overpayment is recovered by the authority, no addition shall be applicable to the authority in respect of that overpayment.

(4) In paragraph (1)(b)(i), in paragraph (3), in article 11(1)(f) and in article 14(2)(a) "overpayment caused by departmental error" means an overpayment caused by a mistake made or something done or omitted to be done by an officer of the Department of Social Security or the Department of Employment, acting as such, or a decision of an adjudication officer, social security appeal tribunal or Social Security Commissioner appointed in accordance with sections 38(1), 40(1), 51(1) and 52(1) of the Act (appointment of adjudication officers, chairmen and members of social security appeal tribunals and Commissioners) 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, act or omission.

(5) In paragraph (1)(b)(ii), in article 11(1)(g) and in paragraph 4 of Schedule 1 "fraudulent overpayment" means an overpayment in respect of a period falling wholly or partly after 31st March 1993 and which-

(a)is so classified by an officer of the authority, designated for that purpose by the authority, after that date; and

(b)occurs as a result of the payment of a rebate or allowance arising in consequence of-

(i)a breach of section 112 of the Act (false representations for obtaining benefit), or

(ii)knowingly failing to report a relevant change of circumstances, contrary to the requirements of regulation 75 of the Housing Benefit Regulations(31) (duty to notify change of circumstances), with intent to obtain or retain such a rebate or allowance for himself or another.

(6) In paragraph (2)(a) and in article 13(2)(b) "overpayment caused by an error of the authority making the payment" means an overpayment caused by a mistake made or something done or omitted to be done by that 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, act or omission.

(7) In paragraph (2)(b) "technical overpayment" means that part of an overpayment which occurs as a result of a rebate being granted in advance and-

(a)a change in circumstances reduces or eliminates entitlement to that rebate; or

(b)the authority subsequently identifies a recoverable overpayment which does not arise from a change in circumstances,

but shall not include any part of that overpayment occurring before the benefit week following the week in which the change is disclosed to or identified by the authority.

(8) Except for paragraphs (1)(b)(ii) and (5), this article shall not apply to that part of any rebate or allowance in respect of a case to which paragraph (15) of regulation 72 of the Housing Benefit Regulations (time and manner in which claims are to be made) applies.

(9) Any reference in this article to an overpayment shall not include any rebate or allowances for any period overrun or other period immediately following expiry of the specified period determined under regulation 66 of the Housing Benefit Regulations(33) except for so much of any rebate or allowance to which the claimant would not have been entitled had a claim for that period been duly made and determined.

Deductions to be made in calculating housing benefit subsidy in respect of rebates or allowances

11.-(1) The deductions referred to in article 2(2)(a) are, subject to paragraph (2), to be of the following amounts where-

(a)a tenant of an authority, who is in receipt of a rent 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 and chooses or chose to be so provided; or

(ii)is during, or was at any time prior to, the relevant year able to choose either to be provided with any services or facilities or, whether or not in return for an award or grant from the authority, to provide such services or facilities 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 sub-paragraph (i) or (ii) of this paragraph if he were not or had not at that time been in receipt of a rent rebate,

the amounts attributable during the relevant year to such services, facilities or rights 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 rent 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 rent 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(32) (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 suffered by the tenant by virtue of his occupation of his home;

(d)during the relevant year the weekly amount of rebate or allowance is increased pursuant to paragraph (8) of regulation 69 of the Housing Benefit Regulations, the amount of such increase;

(e)subject to article 13, during the relevant year it is discovered that a rebate or allowance has been paid under the 1982 Act in excess of entitlement, the amount of such excess;

(f)during the relevant year an amount is recovered in relation to an overpayment of a rebate or allowance which was caused by departmental error, within the meaning of article 10(4), the amount so recovered where the overpayment had occurred and been discovered in a year earlier than the relevant year;

(g)during the relevant year a fraudulent overpayment, within the meaning of article 10(5), is identified, the amount of the overpayment;

(h)subject to sub-paragraphs (f) and (g) of paragraph 1(1), during the relevant year it is discovered that an overpayment of rebate or allowance has been made, the amount of such overpayment, but only to the extent that-

(i)the amount of overpayment or any part of it has not been deducted from qualifying expenditure under article 3 of the Housing Benefit (Subsidy) Order 1989(33) or of the Housing Benefit (Subsidy) Order 1990(34) or under article 4 of respectively the 1991 Order, the 1992 Order or the 1993 Order, 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 Housing Benefit Regulations or paragraph (7) of article 2 of the Community Charge Benefits (Transitional) Order 1989(35), or as the case may be, paragraph (18) of regulation 59 of the Housing Benefit (Community Charge Rebates) (Scotland) Regulations 1988(36) (time and manner in which claims are to be made) applied;

(i)during the relevant year any instrument of payment 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.

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

Deduction from housing benefit subsidy

12. Where during the relevant year it is found by an authority that any instrument of payment issued by it during the period of 5 years ending on 31st March 1993 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 4(1) shall be the amount of any housing benefit subsidy that has been paid to that authority in respect of any such instrument.

Modification of housing benefit subsidy on payments in excess of entitlement

13.-(1) Notwithstanding any provision made under the 1982 Act in respect of housing benefit paid in excess of entitlement under that Act, where an overpayment of such benefit to which any such provision applies made in a certificated case is discovered in the relevant year, an authority's housing benefit subsidy in respect of such a payment shall be calculated as set out in paragraph (2).

(2) The amount of that subsidy shall be-

(a)in the case of an overpayment caused by departmental error, within the meaning of article 10(4), 95 per cent.of so much of the overpayment as has not been recovered by the authority; and

(b)except in the case of an overpayment falling within head (a), other than an overpayment caused by an error of the authority making the payment, within the meaning of article 10(6), 25 per cent.of the overpayment.

(3) In paragraph (1) "certificated case" has the meaning assigned to that expression by regulation 2(1) of the Housing Benefit Regulations 1985(37) (interpretation) as previously in force.

PART III COUNCIL TAX BENEFIT SUBSIDY

Interpretation of Part III

14.-(1) In this Part of this Order, unless the context otherwise requires-

• "appropriate authority" means, in the case of an authority in England or Wales, a billing authority to which section 139(2) of the Act (arrangements for benefits) refers or, in the case of an authority in Scotland, a levying authority to which section 139(3) of the Act(38) refers;

• "council tax benefit subsidy" means subsidy under section 140(39) of the Act;

• "the Community Charge Benefits Regulations" means the Community Charge Benefits (General) Regulations 1989(40);

• "the Council Tax Benefit Regulations" means the Council Tax Benefit (General) Regulations 1992(41);

and other expressions used in this Order and in the Community Charge Benefits Regulations or the Council Tax Benefit Regulations, as the case may be, shall have the same meanings in this Order as in those Regulations.

(2) In this part of this Order-

• "council tax benefit qualifying expenditure" means the total of council tax benefit and community charge benefits granted by the appropriate authority during the relevant year, less-

  (a)

  the deductions specified in article 19; and

  (b)

  where, under subsection (6) of section 139 of the Act(42) (arrangements for council tax benefit), the appropriate authority has modified any part of the scheme administered by it, any amount by which the total of the council tax and community charge benefits which it granted under the scheme during the relevant year exceeds the total of those which it would have granted if the scheme had not been so modified.

Amount of council tax benefit subsidy

15. The amount of an appropriate authority's council tax benefit subsidy for the relevant year-

(a)for the purposes of section 140(2)(43) of the Act (subsidy in respect of council tax benefit) shall be the amount or total of the amounts calculated in accordance with article 16;

(b)for the purposes of section 140(5)(44) of the Act (subsidy in respect of the costs of administering council tax benefit) may include an additional sum in respect of the costs of administering council tax benefit calculated in accordance with Schedules 1 and 2.

Council tax benefit

16.-(1) Subject to paragraph (2), for the purposes of section 140(2) of the Act, an appropriate authority's council tax benefit subsidy for the relevant year shall be-

(a)in the case of an appropriate authority to which article 17 does not apply, 95 per cent.of its council tax benefit qualifying expenditure;

(b)in the case an appropriate authority to which that article is relevant an amount equal to the aggregate of-

(i)95 per cent.of so much of its council tax benefit qualifying expenditure as remains after deducting the amount of expenditure attributable to the council tax benefit to which that article applies; plus

(ii)the appropriate amount calculated in respect of the council tax benefit under that article,

plus, in each case, the addition, where applicable, under article 18, less in each case the deduction, where applicable, under article 20.

(2) Where, during the relevant year there has been a period overrun in respect of council tax benefit, that authority's council tax benefit subsidy for that year shall be adjusted by deducting from the subsidy otherwise due under this article an amount equal to the percentage, as calculated in accordance with paragraph 4 of Schedule 4, of the council tax benefit qualifying expenditure for that authority.

Backdated benefit

17.-(1) Subject to paragraph (2), where-

(a)during the relevant year an appropriate authority has-

(i)under paragraph (18) of regulation 60 of the Community Charge Benefits Regulations (time and manner in which claims are to be made), treated any claim for a community charge benefit as made on a day earlier than that on which it is made; or

(ii)under paragraph (16) of regulation 62 of the Council Tax Benefit Regulations (time and manner in which claims are to be made), treated any claim for council tax benefit as made on a day earlier than that on which it is made; and

(b)any part of that appropriate authority's council tax benefit qualifying expenditure is attributable to such earlier period,

for the purposes of article 17(b)(ii), the appropriate amount for the relevant year in respect of such part shall be 50 per cent.of the council tax benefit qualifying expenditure so attributable.

(2) This article shall not apply in a case to which article 18(1)(b)(ii) applies.

Additions to council tax benefit subsidy

18.-(1) Subject to paragraphs (8) and (9) the additions referred to in article 17 are-

(a)where, following the loss, destruction or non-receipt, or alleged loss, destruction or non-receipt of original instruments of payment, an appropriate 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;

(b)where it is discovered by an appropriate authority, during the relevant year, that excess benefits have been allowed and an amount is to be deducted under article 20 in relation to those excess benefits, an amount equal to-

(i)where the excess benefits are allowed in consequence of a departmental error, 95 per cent.of that part of the excess benefits which have not been recovered by the appropriate authority;

(ii)where fraudulent excess benefits are allowed 95 per cent. of the excess benefits; or

(iii)except where head (i) or (ii) applies, 25 per cent.of the excess benefit.

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

(a)any excess benefit allowed in consequence of an error of the appropriate authority making the payment,

(b)any technical excess benefit, or

(c)any excess benefit allowed and discovered in the relevant year, as a result of a reduction in the amount of council tax a person is liable to pay.

(3) Where excess benefits are allowed in consequence of departmental error, but some or all of that excess benefit is recovered by the appropriate authority, no addition shall be applicable to the authority in respect of the amount so recovered.

(4) In paragraph 2(a) "excess benefit allowed in consequence of an error of the appropriate authority making the payment" means excess benefits in consequence of a mistake made or something done or omitted to be done by the appropriate 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, act or omission.

(5) In paragraph 1(b)(ii), in paragraph (3) and in article 19(1)(b) "excess benefits allowed in consequence of departmental error" means excess benefits in consequence of a mistake made or something done or omitted to be done by an officer of the Department of Social Security or the Department of Employment acting as such, or a decision of an adjudication officer, social security appeal tribunal or Social Security Commissioner appointed in accordance with sections 38(1), 40(1), 51(1) and 52(1) of the Act (appointment of adjudication officers, chairmen and members of social security appeal tribunals and Commissioners) 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, act or omission.

(6) In paragraph 2(b) "technical excess benefit" means that part of excess benefits which occurs as a result of benefits being allowed in advance and-

(a)a change of circumstances reducing or eliminating entitlement to those benefits; or

(b)the authority subsequently identifies recoverable excess benefits which arise otherwise than from a change in circumstances,

but shall not include any part of those excess benefits occurring before the benefit week next following the week in which the change is disclosed to the appropriate authority.

(7) In paragraph 1(b)(ii), in article 19(1)(c) and in paragraph 8 of Schedule 2 "fraudulent excess benefit" means excess benefit in respect of a period falling wholly or partly after 31st March 1993 and which-

(a)is so classified by an officer of the authority, designated for that purpose by the authority, after that date; and

(b)occurs as a result of the award or continuation of benefit arising in consequence of-

(i)a breach of section 112 of the Act (false representations for obtaining benefit), or

(ii)knowingly failing to report a relevant change of circumstances, contrary to the requirements of regulation 63 of the Community Charge Benefits Regulations or, as the case may be, of regulation 65 of the Council Tax Benefit Regulations (duty to notify change of circumstances), with intent to obtain or retain such benefit.

(8) Except for paragraphs (1)(b)(ii) and (7), this article shall not apply to an award of benefit to which paragraph (18) of regulation 60 of the Community Charge Benefits Regulations or paragraph (16) of regulation 62 of the Council Tax Benefit Regulations (time and manner in which claims are to be made), as the case may be, applies.

(9) Any reference in this article to excess benefits shall not include any council tax benefit for any period overrun or any period immediately following expiry of the specified period determined under regulation 57 of the Council Tax Benefit Regulations (benefit period) except for so much of any such benefit to which the claimant would not have been entitled had a claim for that period been duly made and determined.

Deductions to be made in calculating subsidy in respect of council tax benefit

19.-(1) The deductions referred to in article 14(2) are, subject to paragraph (2), of the following amounts, namely where-

(a)an appropriate authority has by virtue of regulation 58 of the Community Charge Benefits Regulations(45) or regulation 60 of the Council Tax Benefit Regulations (increases of weekly amounts for exceptional circumstances) increased benefit in exceptional circumstances, the amount attributable to that increase;

(b)during the relevant year an amount is recovered in relation to excess community charge benefit or excess council tax benefit, as the case may be, which was allowed in consequence of departmental error, within the meaning of article 18(5), and where the excess benefit had occurred and been discovered in one or more of the years ending 31st March 1991, 31st March 1992 or 31st March 1993, as the case may be, the amount so recovered;

(c)during the relevant year fraudulent excess benefit, within the meaning of article 18(7), is identified, the amount so identified;

(d)except where paragraph (1)(c) applies, during the relevant year it is discovered by an appropriate authority that excess benefits have been allowed, the amount of the excess benefits, but only to the extent that-

(i)the amount of the excess benefits or any part of it has not been deducted from community charge benefit qualifying expenditure under article 15 of the 1991 Order or article 16 of the 1992 Order or of the 1993 Order, as the case may be; and

(ii)the amount of the excess benefits or any part of it does not include an amount payable pursuant to paragraph (18) of regulation 60 of the Community Charge Benefits Regulations (time and manner in which claims are to be made);

(e)during the relevant year any instrument of payment which was 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.

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

Deduction from council tax benefit subsidy

20. Where during the relevant year it is found by an appropriate authority that any instrument of payment issued by it during the period of 3 years ending on 31st March 1993 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 16(1) shall be the amount of any council tax benefit subsidy that has been paid to that authority in respect of any such instrument.

Articles 3 and 15

SCHEDULE 1CALCULATION OF HOUSING BENEFIT SUBSIDY IN RESPECT OF ADMINISTRATION COSTS

PART IGENERAL AND INTERPRETATION

1.-(1) The additional sum which may be paid to an authority under section 135(5) of the Act shall be the aggregate of the housing benefit amounts calculated in accordance with Part II, except that in the case of authorities in Scotland who administer only council tax benefit the housing benefit amounts shall be nil, and the housing benefit bonus amount calculated in accordance with Part III.

(2) In this Schedule, unless the context otherwise requires, "housing benefit amounts" means the aggregate of the housing benefit applicable amount and the housing benefit further amount, calculated in accordance with Part II.

PART IIAPPLICABLE AND FURTHER AMOUNTS

Housing benefit applicable amount

2. For the purposes of Part I, the housing benefit applicable amount shall be calculated by applying the following formula-

Further amount

3. For the purposes of Part I, the further amount shall be calculated by applying the following formula-

PART III HOUSING BENEFIT BONUS AMOUNT

Housing benefit bonus

4.-(1) Subject to sub-paragraphs (2) to (4) below and for the purposes of Part I, in the case of an authority where the savings which are the sum of (G + M) are greater than L, the housing benefit bonus amount for that authority shall be 10 per cent.of the sum calculated by applying the following formula-

(2) In the case of an authority where the savings which are the sum of (G + M) are greater than K, the housing benefit bonus amount for that authority shall be the sum calculated for that authority in sub-paragraph (1) above plus 10 per cent.of the sum calculated by applying the following formula-

(3) In the case of an authority where the savings which are the sum of (G + M) do not exceed L there shall not be a housing benefit bonus amount for that authority.

(4) In this paragraph-

• G is equal to (H + J) × 32;

• H is the total sum of housing benefit savings made by that authority;

• J is the total sum of related income support savings made by that authority;

• K, in the case of an authority identified in column (1) of Schedule 11, is the figure prescribed in column (2) of that Schedule for that authority;

• L is 0.75 of the value of K;

• M is the same figure as M in paragraph 8 of Schedule 2 for that authority;

• "housing benefit savings" means any amount which would have been paid by way of housing benefit to a claimant during a benefit week, but for the investigation and intervention of one or more officers of an authority who have been designated by that authority for the investigation of fraud, and which would, had that amount been paid as housing benefit, have been a fraudulent overpayment, within the meaning of article 10(5), or, in a case where only a proportion of that non-payment was due to that investigation and intervention the amount shall be that proportion; and

• "related income support savings" means-

  (i)

  where housing benefit savings under this Schedule have been established and that investigation has also led to a determination by an adjudication officer that no income support, or less income support, is payable, any amount of income support that would, but for that investigation and consequent determination, have been paid in a benefit week, within the meaning prescribed therefor in regulation 2(1) of the Income Support (General) Regulations 1987(46); and

  (ii)

  in a case where the housing benefit savings were less than the total housing benefit not paid, the related income support savings shall be an amount determined by applying to the total of income support not paid a percentage equal to the percentage which the housing benefit savings bear to the total housing benefit not paid.

Articles 3 and 15

SCHEDULE 2CALCULATION OF COUNCIL TAX BENEFIT SUBSIDY IN RESPECT OF ADMINISTRATION COSTS

PART IGENERAL AND INTERPRETATION

1.-(1) The additional sum which may be paid to an authority under section 140(5) of the Act(47) shall be the aggregate of the council tax benefit amounts calculated in accordance with Part II and the council tax benefit bonus amount calculated in accordance with Part III.

(2) In this Schedule, unless the context otherwise requires-

• "housing benefit amounts" has the same meaning as in Schedule 1; and

• "council tax benefit amounts" means the aggregate of the council tax benefit applicable amount and the council tax benefit further amount, calculated in accordance with Part II;

PART IIAPPLICABLE AND FURTHER AMOUNTS

Council tax benefit applicable amount

2. Subject to paragraphs 4 to 7 and for the purposes of Part I, the council tax benefit applicable amount shall be calculated by applying the following formula-

Further amount

3. Subject to paragraphs 4 to 7 and for the purposes of Part I, the council tax benefit further amount shall be calculated by applying the following formula-

Calculation of applicable and further amounts

4.-(1) Subject to paragraphs 5 to 7, where in the case of an appropriate authority in England or Wales-

(a)α (being the total of the housing benefit amounts as calculated under Part II of Schedule 1, and the council tax benefit amounts calculated under this Part, in respect of that appropriate authority) exceeds α (being 120 per cent.of the relevant amount), the council tax benefit additional sum for that appropriate authority for the relevant year shall be the amount as calculated under Part I less the excess; or

(b)α (being the total of the housing benefit amounts as calculated under Part II of Schedule 1 and the council tax benefit amounts calculated under this Part in respect of that appropriate authority) is less than(being 95 per cent.of the relevant amount) the council tax benefit additional sum for that appropriate authority shall be the amount as calculated under Part I plus an amount equal to the difference betweenand ~.

(2) The relevant amount for the purposes of paragraphs 4 and 6 is the aggregate of the housing benefit amounts and community charge benefit amounts payable to that appropriate authority for the financial year ending 31st March 1993 calculated in accordance with Schedules 1 and 2 to the 1993 Order (calculation of subsidy in respect of administration costs).

5. Where the total of all the housing benefit amounts calculated under Part II of Schedule 1 and the additional sums calculated under Part I and paragraph 4, less any amount paid by reason of Part III, is other than, for appropriate authorities-

(a)in England, £126,589,925;

(b)in Wales, £5,537,559,

the total of the council tax benefit amounts under this Part for an appropriate authority to which paragraph 4 does not apply shall be calculated, subject to paragraphs 6 and 7, by applying the following formula-

6. Where, in the case of an appropriate authority in England or in Wales, as the case may be

(a)Σ (being the total of the housing benefit amounts calculated under Part II of Schedule 1 and the amount calculated under paragraph 5) exceeds β (being 120 per cent.of the relevant amount), the council tax benefit amounts calculated under this Part for that appropriate authority for the relevant year shall be the amount as calculated under paragraph 5 less the excess; or

(b)Σ (being the total of the housing benefit amounts calculated under Part II of Schedule 1 and the amount calculated under paragraph 5) is less than(being 95 per cent.of the relevant amount) the council tax benefit amounts calculated under this Part for that appropriate authority shall be the amount as calculated under paragraph 5 plus an amount equal to the difference between Σ and Υ.

7. Until the council tax benefit amounts under this Part as calculated under paragraphs 4, 5 and 6 equal the amount specified in paragraphs 2 and 3 as subsidy in respect of the costs of administering council tax benefit for appropriate authorities in England or in Wales, as the case may be, the formula set out in paragraph 5 and paragraph 6 shall, subject to the modifications specified below, continue to apply to calculate the council tax benefit amounts under this Part for those appropriate authorities to whom neither paragraph 4 nor paragraph 6 has applied; and for that purpose-

(a)H shall apply as if the total of the council tax benefit amounts under this Part were the amount calculated under paragraph 5, or, if by virtue of this paragraph there has been more than one calculation, the last amount calculated under that paragraph in respect of the appropriate authority;

(b)J shall apply as if the total of the council tax benefit amounts under this Part were the total of the council tax benefit amounts calculated under paragraph 5, or, if by virtue of this paragraph there has been more than one calculation, the last amount calculated under that paragraph in respect of all appropriate authorities to which paragraph 6 did not apply in that calculation; and

(c)K shall apply as if the amount to be deducted to determine the balance of the total amount available were the housing benefit amounts as calculated under Part II of Schedule 1 and the council tax benefit amounts as calculated under this Part for appropriate authorities to whom, in the calculation under paragraphs 5 and 6, or, if there has been more than one calculation under those paragraphs, the last such calculation, paragraph 6 applied.

PART IIICOUNCIL TAX BENEFIT BONUS AMOUNT

Council tax benefit bonus

8.-(1) Subject to sub-paragraphs (2) to (4) below and for the purposes of Part I, in the case of an authority where the savings which are the sum of (G + M) are greater than Q, the council tax benefit bonus amount for that authority shall be 10 per cent.of the sum calculated by applying the following formula-

(2) In the case of an authority where the savings which are the sum of (G + M) are greater than P, the council tax benefit bonus amount for that authority shall be the sum calculated for that authority in sub-paragraph (1) above plus 10 per cent.of the sum calculated by applying the following formula-

(3) In the case of an authority where the savings which are the sum of (G + M) do not exceed Q there shall not be a council tax benefit bonus amount for that authority.

(4) In this paragraph

• G is the same figure as G in paragraph 4 of Schedule 1 for that authority;

• M is equal to (N + O) × 32;

• N is the total sum of council tax benefit savings made by that authority;

• O is the total sum of related income support savings made by that authority;

• P, in the case of an authority identified in column (1) of Schedule 11, is the figure prescribed in column (2) of that Schedule for that authority;

• Q is 0.75 of the value of P;

• "council tax benefit savings" means any amount which would have been allowed by way of council tax benefit to a claimant during a benefit week, but for the investigation and intervention of one or more officers of an authority who have been designated by that authority for the investigation of fraud, and which would, had that amount been allowed as council tax benefit, have been fraudulent excess benefit, within the meaning of article 18(7), or in a case where only a proportion of that non-allowance was due to that investigation and intervention the amount shall be that proportion; and

• "related income support savings" means-

  (i)

  where council tax benefit savings, under this Schedule, have been established and that investigation has also led to a determination by an adjudication officer that no income support, or less income support is payable, any amount of income support that would, but for that investigation and consequent determination, have been paid in a benefit week, within the meaning prescribed therefor in regulation 2(1) of the Income Support (General) Regulations 1987(48); and

  (ii)

  in a case where the council tax benefit savings were less than the total council tax benefit not allowed, the related income support savings shall be an amount determined by applying to the total of income support not paid a percentage equal to the percentage which the council tax benefit savings bear to the total council tax benefit not allowed,

except that in neither case shall it include any amount which has been included in the related income support savings for that authority under Schedule 1.

Article 4(2)

SCHEDULE 3MAXIMUM AMOUNTS OF HOUSING BENEFIT SUBSIDY PAYABLE IN RESPECT OF CERTAIN AUTHORITIES IN SCOTLAND

Articles 4(3) and 16(2)

SCHEDULE 4CALCULATION OF DEDUCTIONS FROM HOUSING BENEFIT SUBSIDY AND COUNCIL TAX BENEFIT SUBSIDY IN RESPECT OF PERIOD OVERRUNS

PART IGENERAL AND INTERPRETATION

1. In this Schedule, unless the context otherwise requires-

• "period overrun" means any period, in the relevant year -

  (i)

  which follows a benefit period in that year or the previous year; and

  (ii)

  in respect of which the authority makes a payment to a claimant after the expiration of the benefit period without making a further award under regulation 66 of the Housing Benefit Regulations(49), or regulation 57 of the Council Tax Benefit Regulations, as the case may be;

• "benefit period" has the same meaning as in regulation 66 of the Housing Benefit Regulations, regulation 57 of the Council Tax Benefit Regulations or regulation 54 of the Community Charge Benefit Regulations (1), as the case may be, save that where an appropriate authority makes an award under one of those regulations for a specified period of less than 60 benefit weeks, it means 60 benefit weeks commencing with the benefit week when that specified period began; and

• "overrun week" means any week forming part of a period overrun.

PART IIDEDUCTIONS

2. The percentage referred to in article 4(3)(a) for an authority shall be that percentage in column 2 of the Table in paragraph 5, opposite the percentage calculated for that authority in column 1 of that Table.

3. The percentage referred to in article 4(3)(b) for an authority shall be that percentage in column 2 of the Table in paragraph 5, opposite the percentage calculated for that authority in column 1 of that Table.

4. The percentage referred to in article 16(2) for an appropriate authority shall be that percentage in column 2 of the Table in paragraph 5, opposite the percentage calculated for that authority in column 1 of that Table.

PART IIICALCULATIONS AND TABLE

5.-(1) In the heading to column 1 in the Table in sub-paragraph (2) below, "total benefit weeks" means the total of all benefit weeks and overrun weeks for all claimants in the appropriate category as described in paragraph 2, 3 or 4, as the case may be, granted benefit by the authority in the relevant year.

(2) The Table referred to in this Schedule is as follow:

Article 7

SCHEDULE 5THRESHOLD ABOVE WHICH REDUCED HOUSING BENEFIT SUBSIDY IS PAYABLE ON RENT ALLOWANCES

Article 8

SCHEDULE 6RENT OFFICERS' DETERMINATIONS

Calculation of the appropriate amount

1. The appropriate amount-

(a)in a case to which paragraph (2), (4) or (5) of article 8 applies, shall be calculated in accordance with paragraph 2, 3 or 4 as appropriate;

(b)in a case to which paragraph (3) of that article applies, shall be calculated in accordance with paragraph 6.

Rent officers' reasonable market rent determination

2. Where the rent officer determines a reasonable market rent, and does not make a determination under paragraph 2 of Schedule 1 to the Rent Officers Order, and the amount of eligible rent does not exceed the reasonable market rent less ineligible amounts, the appropriate amount in respect of the period beginning with the relevant date and ending with the termination date shall be 95 per cent.of that part of the housing benefit qualifying expenditure attributable to the reasonable market rent less ineligible amounts.

3. Where the rent officer determines a reasonable market rent, and does not make a determination under paragraph 2 of Schedule 1 to the Rent Officers Order, and the amount of eligible rent exceeds the reasonable market rent less ineligible amounts, the appropriate amount in respect of the period beginning with the relevant date and ending with the termination date shall be-

(a)where the allowance granted is the same as or is less than the excess-

(i)except where paragraph 5 applies, nil per cent.of the housing benefit qualifying expenditure attributable to such allowance;

(ii)where paragraph 5 applies, 60 per cent.of the housing benefit qualifying expenditure attributable to such allowance;

(b)where the allowance granted is greater than the excess-

(i)except where paragraph 5 applies, nil per cent.of the housing benefit qualifying expenditure which is equal to the excess;

(ii)where paragraph 5 applies, 60 per cent.of the housing benefit qualifying expenditure which is equal to the excess,

and in either case 95 per cent.of the housing benefit qualifying expenditure which remains after deducting the excess.

Rent officers' reasonable market rent and size determination

4.-(1) Where the rent officer makes a determination under paragraph 2 of Schedule 1 to the Rent Officers Order that the dwelling exceeds the size criteria for its occupiers and he determines a reasonable market rent for that dwelling and a comparable rent for suitably sized accommodation, the appropriate amount in respect of the period beginning on the relevant date and ending on the termination date shall be the appropriate amounts determined in accordance with the relevant sub-paragraphs of this paragraph.

(2) For the period of 13 weeks beginning on the relevant date or, if shorter, for the period beginning on that date and ending on the termination date, if the amount of the eligible rent does not exceed the reasonable market rent less ineligible amounts, the appropriate amount shall be 95 per cent.of that part of the housing benefit qualifying expenditure attributable to the reasonable market rent less ineligible amounts.

(3) For the period of 13 weeks beginning on the relevant date or, if shorter, for the period beginning on that date and ending on the termination date, if the amount of the eligible rent exceeds the reasonable market rent less ineligible amounts the appropriate amount shall be-

(a)where the allowance granted is the same as or is less than the excess-

(i)except where paragraph 5 applies, nil per cent.of the housing benefit qualifying expenditure attributable to such allowance;

(ii)where paragraph 5 applies, 60 per cent.of the housing benefit qualifying expenditure attributable to such allowance;

(b)where the allowance granted is greater than the excess-

(i)except where paragraph 5 applies, nil per cent.of the housing benefit qualifying expenditure which is equal to the excess;

(ii)where paragraph 5 applies, 60 per cent.of the housing benefit qualifying expenditure which is equal to the excess,

and in either case 95 per cent. of the housing benefit qualifying expenditure which remains after deducting the excess.

(4) For the period after the end of that 13 week period, if the amount of the eligible rent does not exceed the comparable rent for suitably sized accommodation less ineligible amounts, the appropriate amount shall be 95 per cent.of that part of the housing benefit qualifying expenditure attributable to the comparable market rent for suitably sized accommodation less ineligible amounts.

(5) For the period after the end of that period, if the amount of the eligible rent exceeds the comparable rent for suitably sized accommodation less ineligible amounts the appropriate amount shall be-

(a)where the allowance granted is the same as or is less than the excess-

(i)except where paragraph 5 applies, nil per cent.of the housing benefit qualifying expenditure attributable to such allowance;

(ii)where paragraph 5 applies, 60 per cent.of the housing benefit qualifying expenditure attributable to such allowance;

(b)where the allowance granted is greater than the excess-

(i)except where paragraph 5 applies, nil per cent.of the housing benefit qualifying expenditure which is equal to the excess;

(ii)where paragraph 5 applies, 60 per cent.of the housing benefit qualifying expenditure which is equal to the excess,

and in either case 95 per cent.of the housing benefit qualifying expenditure which remains after deducting the excess.

No restriction on unreasonable rents or on rent increases

5. This paragraph applies where an authority has not considered it appropriate to treat a person's eligible rent as reduced under regulation 11(50) or 12(51) of the Housing Benefit Regulations (restrictions on unreasonable rents or on rent increases).

Failure to apply for a rent officer's determination

6. For any period in respect of which article 8(3) applies, the appropriate amount shall be nil per cent.of so much of the housing benefit qualifying expenditure as is attributable to any allowances granted.

Relevant date

7. For the purposes of this Schedule-

(a)in a case where a claim for rent allowance is made on or after 1st April 1993, the relevant date is the date on which entitlement to benefit commences;

(b)in a case where-

(i)on 1st April 1993 there is current on that date a claim for an allowance in relation to the dwelling; and

(ii)there is also current on that date a rent officer's determination in relation to the dwelling, the relevant date is 1st April 1993; and for the purposes of this head, a rent officer's determination includes a determination, interim determination, further determination or re-determination made under the Rent Officers Order, save that where a determination made under paragraph 2 of Schedule 1 to the Rent Officers Order had not taken effect by 31st March 1993, the relevant date will be 13 weeks after the relevant date determined under the 1993 Order(52);

(c)in a case where-

(i)during the relevant year there has been a relevant change relating to a rent allowance within the meaning of regulation 12A(8) of the Housing Benefit Regulations(53); and

(ii)by virtue of regulation 12A of the Housing Benefit Regulations (requirement to refer to rent officer) an application for a determination in respect of that dwelling is required;

the relevant date is the date on which the relevant change of circumstances takes effect for the purposes of regulation 68 of the Housing Benefit Regulations(54) (date on which change of circumstances is to take effect) or, if the relevant change of circumstances does not affect entitlement to an allowance, the Monday following the date on which the relevant change occurred;

(d)in a case where a rent officer makes both an interim determination and a further determination in accordance with paragraph 5 of Schedule 1 to the Rent Officers Order, the relevant date is-

(i)if the reasonable market rent determined under the further determination is higher than or equal to the amount determined under the interim determination, the date determined under the foregoing sub-paragraphs of this paragraph as appropriate;

(ii)if the reasonable market rent determined under the further determination is lower than the amount determined under the interim determination, the Monday following the date on which the further determination is made by the rent officer;

(e)in a case where the rent officer has made a re-determination under paragraph 1 of Schedule 3 to the Rent Officers Order, the relevant date is-

(i)if the reasonable market rent or, as the case may be, comparable rent for suitably sized accommodation determined under the re-determination is higher than or equal to the amount determined under the original determination, the date determined under the foregoing sub-paragraphs of this paragraph as appropriate;

(ii)if the reasonable market rent or, as the case may be, comparable rent for suitably sized accommodation determined under the re-determination is lower than the amount determined under the original determination, the Monday following the date on which the re-determination is made by the rent officer.

Termination date

8. For the purposes of this Schedule "termination date" means-

(a)31st March 1994; or

(b)where the rent officer's determination replaces a determination made in relation to the same dwelling, the relevant date of the new determination by the rent officer in relation to the same dwelling as defined by paragraph 7(a); or

(c)the date on which the allowance ceases to be paid in respect of the tenancy,

whichever is earlier.

Apportionment

9. For the purposes of this Schedule where more than one person is liable to make payments in respect of a dwelling the "comparable rent for suitably sized accommodation" or "reasonable market rent" shall be apportioned on the same basis as such payments are apportioned under regulation 10(5) of the Housing Benefit Regulations (rent).

Interpretation

10. In this Schedule, unless the context otherwise requires-

"comparable rent for suitably sized accommodation" means the rent determined by a rent officer under paragraph 2(2) of Schedule 1 to the Rent Officers Order;

"ineligible amounts" means-

"reasonable market rent" means the rent determined by a rent officer under paragraph 1 of Schedule 1 to the Rent Officers Order; and other expressions used in this Schedule and in the Rent Officers Order have the same meanings in this Schedule as they have in that Order.

Article 9

SCHEDULE 7AMOUNT BY REFERENCE TO WHICH APPROPRIATE MAXIMUM AMOUNT IS DETERMINED

Schedules 1 and 2

SCHEDULE 8PRESCRIBED CASELOAD AND CLAIMS FIGURES