S3/2020: Rent Rebate Subsidy Limitation information 2020-21
Updated 26 November 2020
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This publication is available at https://www.gov.uk/government/publications/housing-benefit-subsidy-circulars-2020/s32020-rent-rebate-subsidy-limitation-information-2020-21
Who should read
All Housing Benefit staff and Officers preparing subsidy claims and estimates
Action
For information.
Guidance manual
The information in this circular does not affect the content of the HB Guidance Manual.
Queries
For queries about the technical content of this circular, contact:
hbsubsidy.queries@dwp.gov.uk
For querieds about distribution of this circular, contact:
housing.correspondenceandpqs@dwp.gov.uk
Introduction
1. This circular contains details of the Rent Rebate Subsidy Limitation (RRSL) arrangements. Provisions for the 2020-21 arrangements are being made by an Amendment Order to the Income-related Benefits (Subsidy to Authorities) Order 1998. This Order is subject to consultation with the Local Authority Associations before being laid before Parliament.
RRSL scheme in England
2. From 1 April 2020, the RRSL scheme in HB subsidy will no longer apply in England, as notified in circular HB S11/2019 revised
3. The RRSL scheme will continue in Wales. It does not cover Scotland.
RRSL scheme in Wales
4. The Welsh Government wrote to Welsh local authorities (LAs) in January 2020 to consult on the calculation of draft Limit Rents for 2020-21. LAs were notified of the final Limit Rents in February 2020. The specific amounts (‘O’) and guideline weekly rent increases (‘P’) for determining RRSL are set out in Annex A.
5. For the 2020-21 RRSL calculation the rebate proportion is 0.574.
Amendment to the Subsidy Order
6. The Secretary of State for the Department for Work and Pensions will make an amending Subsidy Order, following a statutory consultation period, publishing the specified amounts and guideline rent increases for Welsh LAs, to be used in Wales to determine the subsidy limitation deduction.
Specified amounts and guideline rent increases 2020-21 – Wales
| LA | Specified amount ‘O’ | Guideline rent increase ‘P’ |
|---|---|---|
| Caerphilly | 95.77 | 4.38 |
| Cardiff | 107.42 | 4.82 |
| Carmarthenshire | 95.29 | 4.36 |
| Denbighshire | 93.07 | 4.42 |
| Flintshire | 96.54 | 4.53 |
| Isle of Anglesey | 92.20 | 4.48 |
| Pembrokeshire | 96.09 | 4.23 |
| Powys | 97.15 | 4.42 |
| Swansea | 94.25 | 4.48 |
| Vale of Glamorgan | 103.94 | 4.63 |
| Wrexham | 95.45 | 4.46 |