Appendix 3
S.I. 2013/266: memorandum from the Department
for Work and Pensions
Income-related Benefits (Subsidy to Authorities)
Amendment Order 2013 (S.I. 2013/266)
1. In its letter to the Department of 6th
March 2013, the Committee requested a memorandum on the following
point:
"Explain whether the amendment
made by article 3 is intended to have any effect on any claim
made under article 4(2)(c) of S.I 1998/562 in May 2012, and -
(a) if so, identify the authority
for making provision having that effect, or
(b) if not, explain how the intention
is achieved."
2. The Department's response to the Committee's
point is outlined below.
3. The amendment is intended to change the date
by which a claim made under article 4(2)(c) of the Income-related
Benefits (Subsidy to Authorities) Order 1998 S.I. 1998/562 had
to be submitted to the Department so that it was 30th April 2012
rather than 31st May 2012 (and 30th April in subsequent years).
This was in response to a change Her Majesty's Treasury made to
the date on which Departmental final accounts needed to be closed.
This meant bringing forward the date by which subsidy claims needed
to be returned.
4. The Income-related Benefits (Subsidy to Authorities)
Order 1998 makes provision for the payment of subsidy from the
Secretary of State to local authorities in respect of housing
benefit and council tax benefit. Some of the amendments in S.I.
2013/266 cannot be made before the end of the relevant financial
year as they relate to amounts of subsidy that are subject to
final agreement at the end of that year. The Department usually
makes amendments to the subsidy requirements in one annual amending
order as this assists local authorities.
5. The Department is required to consult local
authorities on any changes to the calculation of subsidy or requirements
relating to claims for subsidy in a particular year. It is the
Department's established practice to consult in advance of the
date the changes take effect as well as consulting on the draft
legislation before it is made. Amendments can be made after the
relevant year using the powers conferred by section 140C(4) and
more generally by section 140F of the Social Security Administration
Act 1992, which allows the Secretary of State to make an order
after the year to which it relates.
6. In keeping with this practice, all local authorities
were informed by email of the proposed change of date for the
submission of the claim for subsidy in August 2011 and a reminder
was included in the March 2012 edition of HB Direct (which contains
information for local authorities and is published on the Department's
website). The change had been previously discussed at the July
2011 Steering Group meeting, which takes place between the Department
and Local Authority Associations and considers all subsidy-related
matters. As a result, local authorities knew about the change
in the date for submitting their 2011/12 claim to 30th April over
8 months in advance. No local authority should therefore have
made a claim in May 2012 unaware that the deadline was going to
be 30th April 2012.
7. Sixteen local authorities did miss the 30th
April 2012 deadline. Where this happened 5% of the monthly payment
of subsidy was withheld in May, rising to 10% in June and an additional
5% each month until the claim was received. All withheld subsidy
was paid in full when the claim was received.
Department for Work and Pensions
12 March 2013
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