SOCIAL SECURITY Citation, commencement and interpretation 1 1 This Order may be cited as the Income-related Benefits (Subsidy to Authorities) Amendment Order 2000 and shall come into force on 10th May 2000. 2 Article 6 of this Order shall take effect in respect of the year commencing on 1st April 1998 and any relevant year thereafter. 3 Articles 2, 3, 4, 7, 8, 10, 11, 12, 13 and 14 of this Order shall take effect in respect of the year commencing on 1st April 1999 and any relevant year thereafter. 4 In this Order, “the principal Order ” means the Income-related Benefits (Subsidy to Authorities) Order 1998 . Definition of “fraud prosecution points” 2 Article 2 of the principal Order shall be amended by adding after the definition of “claim form” the following definition— “fraud prosecution points” means those points described in accordance with paragraph 2(2) of Schedule 5 to this Order; . Reference to fraud prosecution points 3 In paragraph (4) of article 4 of the principal Order for the words “ and benefit-related savings” as they appear in each of sub-paragraphs (a) and (b) there shall be substituted the words “, benefit-related savings and fraud prosecution points”. New percentage for council tax benefit 4 1 In paragraph (1) of article 11 of the principal Order there shall be substituted by the words “Contributions and Benefits Act 1992,” as they appear in the definition of “scheme”, the following words— Contributions and Benefits Act 1992; “X per cent.” means, in relation to a local authority, the percentage specified in column (7) of Schedule 1 that applies to that authority, . 2 For paragraph (1) of article 13 of the principal Order there shall be substituted the following paragraph— 1 Subject to any adjustment in accordance with paragraph (3), for the purposes of section 140A of the Act, the subsidy to be paid to an authority shall, subject in the case of Scottish Homes to paragraph (2), be— a in the case of any authority to which none of articles 14, 16 and 17 applies, an amount equal to the aggregate of— i 95 per cent. of its qualifying expenditure attributable to expenditure in respect of housing benefit; and ii X per cent. of its qualifying expenditure attributable to expenditure in respect of council tax benefit; b in the case of any authority to which at least one of those articles applies an amount equal to the aggregate of— i 95 per cent. of so much of its qualifying expenditure attributable to expenditure in respect of housing benefit as remains after deducting from that expenditure the amount of expenditure attributable to housing benefit to which each of those articles which is relevant applies; ii X per cent. of so much of its qualifying expenditure attributable to expenditure in respect of council tax benefit as remains after deducting from that expenditure the amount of expenditure attributable to council tax benefit to which article 14 applies; and iii the appropriate amount calculated in respect of the relevant benefit under each such article, plus, in each case, the additions, where applicable, under articles 18 and 21(2), but subject, in each case, to the deductions, where applicable, under articles 20 and 21(3). . 3 For sub-paragraph (b) of paragraph (1) of article 18 of the principal Order there shall be substituted the following paragraph— b subject to paragraphs (2) and (3), where, during the relevant year, it is discovered that an overpayment of community charge benefit or relevant benefit has been made and an amount is to be deducted under article 19 in relation to that overpayment, an amount equal to— i in the case of a departmental error overpayment where the overpayment is overpayment of housing benefit, 95 per cent. of so much of the overpayment as has not been recovered by the authority; ii in the case of a departmental error overpayment where the overpayment is overpayment of community charge benefit or council tax benefit, X per cent. of so much of the overpayment as has not been recovered by the authority; iii in the case of a fraudulent overpayment, 80 per cent. of the overpayment; iv except where any of heads (i) to (iii) above apply, 25 per cent. of the overpayment. . 4 Paragraph (4) of article 18 of the principal Order shall be amended by substituting for the words “paragraphs (1)(b)(i) and (3)” the words “ paragraphs (1)(b)(i), (ii) and (3)”. 5 Paragraph (5) of article 18 of the principal Order shall be amended by substituting for the words “paragraph (1)(b)(ii) and (c)” the words “ paragraphs (1)(b)(iii) and (c)”. 6 Paragraph (8) of article 18 of the principal Order shall be amended by substituting for the words “paragraphs (1)(b)(ii)” the words “paragraphs (1)(b)(iii)”. Scottish Homes 5 For the year commencing on 1st April 1999, for the sum of “£1,278,000” specified as the maximum payable to Scottish Homes in sub-paragraph (a) of paragraph (2) of article 13 of the principal Order , there shall be substituted the sum of “£1,010,190”. Fraud overpayments in previous years 6 Sub-paragraph (c) of paragraph (1) of article 18 of the principal Order shall be amended by substituting for the words “95 per cent.” the words “ 80 per cent.”. Departmental error overpayment 7 Sub-paragraph (a) of paragraph (4) of article 18 of the principal Order shall be amended by adding after the words “as such” the words “, or a person providing services to either Department”. Additions to and deductions from subsidy in respect of benefit savings 8 For sub-paragraphs (2) and (3) of article 21 of the principal Order there shall be substituted the following sub–paragraphs— 2 This article applies in the case of an authority to which paragraph 3 or 4 of Schedule 5 applies and in such a case the additions shall be calculated in accordance with those paragraphs. 3 This article also applies in the case of an authority to which paragraph 5 of Schdule 5 applies and in such a case the deduction shall be calcualted in accordance with that paragraph. . Sums to be used in the calculation of subsidy 9 For the year commencing on 1st April 1999, for Schedule 1 to the principal Order there shall be substituted the Schedule set out in Schedule 1 to this Order. Definition of “last day” 10 For sub-paragraph (2) of paragraph 1 of Schedule 2 to the principal Order there shall be substituted the following paragraph— 2 In this Schedule, “last day” means— a in the case of a person to whom regulation 6(2) of the Income Support (General) Regulations 1987 (persons not treated as engaged in remunerative work) applies, the date on which he was first engaged in remunerative work referred to in sub-paragraph (a) of regulation 6(2) of those Regulations; and b in any other case, the last day of the relevant benefit period as “ relevant benefit period” is defined in paragraph 12 of Schedule 5A to the Housing Benefit Regulations or, for the purposes of council tax benefit, paragraph 8 of Schedule 5A to the Council Tax Benefit Regulations (extended payments). . Definition of “ineligible amounts” 11 The definition of “ineligible amounts” in paragraph 17 of Part IV of Schedule 4 to the principal Order shall be amended by adding the following sub-paragraph— d any amount determined in accordance with regulation 10(6) of the Housing Benefit Regulations and deducted under regulation 10(3) of those Regulations. . Amended thresholds for subsidy on rent allowances 12 Part V of Schedule 4 to the principal Order shall be amended as follows— a for the references in column (1) to, and amounts stated in column (2) in respect of, Cumbria, Leicestershire, Midlands (West), Northamptonshire, Staffordshire and Warwickshire there shall be substituted, in the appropriate places within the Part, the following references and amounts– Cumbria 60.82 Leicestershire 64.92 Midlands (West) 83.89 Northamptonshire 68.46 Staffordshire 86.59 Warwickshire 83.51 ; b for the references in column (1) to, and amounts stated in column (2) in respect of, rent registration areas in Scotland, there shall be substituted the following references and amounts– Aberdeen 116.83 Aberdeenshire 116.83 Angus 116.83 Argyll and Bute 103.93 Clackmannanshire 150.40 Comhairle Nan Eilean Sair 146.28 Dumfries and Galloway 103.93 Dundee 116.83 East Ayrshire 103.93 East Dunbartonshire 112.91 East Lothian 132.78 East Renfrewshire 137.58 Edinburgh, City of 132.78 Falkirk 103.93 Fife 116.83 Glasgow 103.93 Highland 100.28 Inverclyde 103.93 Midlothian 132.78 Moray 116.83 North Ayrshire 103.93 North Lanarkshire 103.93 Orkney 116.83 Perth and Kinross 124.08 Scottish Borders 132.78 Shetland 116.83 Stirling 103.93 West Dunbartonshire 103.93 West Lothian 132.78 . Benefit savings 13 For Schedule 5 to the principal Order there shall be substituted the Schedule set out in Schedule 2 to this Order. Modification of Schedule 5 14 In the definition of “benefit savings” and “benefit-related savings” in paragraph 1 of Schedule 5 to the principal Order references to a decision of the Secretary of State shall be read as if they were references to a determination of an adjudication officer– a in respect of the period beginning on 1st April 1999 and ending on 6th September 1999, in relation to decisions relating to retirement pension, incapacity benefit, severe disablement allowance or widow’s pension; b in respect of the period beginning on 1st April 1999 and ending on 18th October 1999, in relation to decisions relating to jobseeker’s allowance; and c in respect of the period beginning on 1st April 1999 and ending on 29th November 1999, in relation to decisions relating to income support. Signed by authority of the Secretary of State for Social Security. Angela Eagle Parliamentary Under-Secretary of State, Department of Social Security 17th April 2000 We consent, Bob Ainsworth Clive J. C. Betts Two of the Lords Commissioners of Her Majesty’s Treasury 17th April 2000