Guidance

S7/2021: Housing Benefit administration subsidy arrangements for English, Scottish and Welsh local authorities 2021 to 2022

Updated 17 June 2022

Who should read

All Housing Benefit (HB) managers and staff in England, Scotland and Wales. Officers preparing subsidy claims and estimates.

Action

For information

Subject

Housing Benefit administration subsidy arrangements for English, Scottish and Welsh local authorities 2021 to 2022.

Guidance Manual

The information in this circular does not affect the content of the HB Guidance Manual.

Queries

If you:

Introduction

1. This circular contains final details of the distribution of the 2021-22 Housing Benefit administration subsidy (HBAS).

2. Provision for the 2021 to 2022 HBAS arrangements will be made by an Amendment Order to the Income-related Benefits (Subsidy to Authorities) Order 1998, which will be subject to consultation with the Local Authority Associations (LAAs) prior to being laid in Parliament.

3. LAAs and local authority (LA) representatives have been consulted regarding the distribution methodology.

Background

4. Following the abolition of Council Tax Benefit (CTB) and the introduction of Local Council Tax Support (LCTS) in April 2013, the funding baseline for HB and CTB has remained disaggregated. The Department for Work and Pensions (DWP) is responsible for allocating the HB element to LAs and the Ministry of Housing, Communities and Local Government and the Devolved Administrations are responsible for distributing the LCTS element to their respective LAs.

5. The 2021 to 2022 HBAS allocation by country is:

  • English LAs - £164.142 million
  • Scottish LAs - £ 18.389 million
  • Welsh LAs - £ 9.770 million

6. This funding is calculated by deducting the Universal Credit (UC) reduction to the 2021 to 2022 HBAS, which is consistent with DWP’s baseline funding.

7. For 2021 to 2022 no departmental efficiency reduction has been applied.

UC rollout

8. The 2021 to 2022 HBAS funding takes into account the estimated volume of HB claimants moving to UC. UC reductions of £3.084 million have been applied to the total amount of the 2021 to 2022 HBAS for Great Britain. This is in addition to the £27.703 million deducted from the baseline in 2020 to 2021 which was a cumulative UC reduction value up to, and including, 2020 to 2021.

9. UC reductions are profiled across a number of financial years. The 2021 to 2022 UC reductions continue to reflect current policies.

Distribution methodology

10. This funding is a contribution to the cost of administering HB. DWP, in consultation with the LA Funding Group (which consists of LA Chief Finance Officers and LAAs representatives), decided to change the methodology for allocating HBAS from 2019 to 2020.

11. The 3-year methodology, which commenced in 2019 to 2020, uses HB caseload data and UC housing element caseload volumes. This combined total is used to determine the proportion of core HBAS allocated to each LA. 2021to 2022, uses up to May 2020 HB caseload data.

12. The UC reductions have been calculated based on the amount of HB Working Age caseload moving to UC. Single Housing Benefit Extract (SHBE) data and UC data have been used to determine the expected change in workloads due to UC in 2021 to 2022.

13. For both 2019 to 2020 and 2020 to 2021, transitional arrangements were applied to prevent LAs experiencing a large change in their allocation relative to the previous 2018 to 2019 methodology. 2021 to 2022 is the third year and fully allocates funding to LAs without any transitional protection.

14. Allocations are rounded to the nearest pound.

2021 to 2022 national funding

15. The table below details the total national funding level available for 2021 to 2022 compared to 2020 to 2021.

HB administration subsidy 2020 to 2021 (£ million, rounded) 2021 to 2022 (£ million, rounded)
HBAS allocation (previous year) 196.109 195.385
Less adjustment for UC -0.724 -3.084
Less departmental efficiency reduction 0 0
HBAS funding level 195.385 192.301

Payment of HBAS

16. Payments of HBAS will be made in 12 monthly instalments beginning in April 2021. The overall subsidy available to support HB administration costs is cash-limited and so there is no provision for any adjustments to be made to individual LA allocations.

Annex A: 2021 to 2022 LA allocations – England

LA Final 2021 to 2022 DWP HB administration subsidy allocation (£)
Adur 143,098
Allerdale 266,840
Amber Valley 292,763
Arun 371,166
Ashfield 348,282
Ashford 306,333
Babergh 168,737
Barking and Dagenham 875,281
Barnet 1,357,429
Barnsley 805,110
Barrow-in-Furness 191,856
Basildon 538,874
Basingstoke and Deane 355,823
Bassetlaw 288,892
Bath and North East Somerset 390,988
Bedford 438,152
Bexley 610,109
Birmingham 4,801,257
Blaby 138,721
Blackburn with Darwen 486,293
Blackpool 736,159
Bolsover 219,979
Bolton 975,097
Boston 189,758
Bournemouth, Christchurch and Poole 1,095,779
Bracknell Forest 239,270
Bradford 1,593,296
Braintree 332,907
Breckland 297,045
Brent 1,585,314
Brentwood 119,871
Brighton and Hove 974,950
Bristol 1,471,878
Broadland 193,435
Bromley 767,724
Bromsgrove 149,996
Broxbourne 251,187
Broxtowe 221,844
Buckinghamshire 935,132
Burnley 343,035
Bury 512,020
Calderdale 637,530
Cambridge 295,542
Camden 1,264,016
Cannock Chase 244,215
Canterbury 367,838
Carlisle 278,986
Castle Point 161,472
Central Bedfordshire 502,103
Charnwood 305,767
Chelmsford 336,541
Cheltenham 255,242
Cherwell 291,406
Cheshire East 729,938
Cheshire West and Chester 841,567
Chesterfield 354,180
Chichester 257,176
Chorley 240,984
City of London 44,137
Colchester 433,484
Copeland 201,233
Cornwall 1,571,380
Cotswold 159,372
Coventry 1,031,877
Craven 91,825
Crawley 359,382
Croydon 1,476,522
Dacorum 383,243
Darlington 360,851
Dartford 234,781
Derby 773,771
Derbyshire Dales 121,860
Doncaster 976,577
Dorset 830,043
Dover 338,621
Dudley 900,423
Durham 1,898,629
Ealing 1,438,277
East Cambridgeshire 158,181
East Devon 279,885
East Hampshire 176,517
East Hertfordshire 262,528
East Lindsey 439,009
East Riding of Yorkshire 652,425
East Staffordshire 241,976
East Suffolk 620,637
Eastbourne 366,988
Eastleigh 235,910
Eden 85,356
Elmbridge 246,872
Enfield 1,600,955
Epping Forest 266,421
Epsom and Ewell 132,486
Erewash 284,640
Exeter 324,432
Fareham 155,112
Fenland 261,272
Folkestone and Hythe 330,370
Forest of Dean 190,628
Fylde 180,615
Gateshead 803,832
Gedling 236,749
Gloucester 354,397
Gosport 230,694
Gravesham 269,997
Great Yarmouth 386,309
Greenwich 1,340,173
Guildford 234,303
Hackney 1,996,556
Halton 494,612
Hambleton 167,912
Hammersmith and Fulham 953,313
Harborough 114,557
Haringey 1,406,837
Harlow 317,954
Harrogate 267,673
Harrow 728,522
Hart 109,043
Hartlepool 452,228
Hastings 411,383
Havant 249,108
Havering 620,094
Herefordshire 409,464
Hertsmere 262,457
High Peak 202,293
Hillingdon 863,868
Hinckley and Bosworth 184,763
Horsham 227,699
Hounslow 957,979
Huntingdonshire 303,926
Hyndburn 277,697
Ipswich 451,451
Isle of Wight 424,939
Isles of Scilly 1,687
Islington 1,433,119
Kensington and Chelsea 854,117
Kings Lynn and West Norfolk 351,041
Kingston upon Hull 1,230,958
Kingston upon Thames 407,104
Kirklees 1,196,356
Knowsley 684,643
Lambeth 1,760,014
Lancaster 377,197
Leeds 2,440,073
Leicester 1,151,580
Lewes 247,957
Lewisham 1,601,985
Lichfield 177,261
Lincoln 334,268
Liverpool 2,364,620
Luton 649,459
Maidstone 356,427
Maldon 113,897
Malvern Hills 157,474
Manchester 2,443,386
Mansfield 337,479
Medway 739,275
Melton 89,768
Mendip 255,561
Merton 547,485
Mid Devon 166,256
Mid Suffolk 157,323
Mid Sussex 224,130
Middlesbrough 671,105
Milton Keynes 782,924
Mole Valley 155,406
New Forest 331,744
Newark and Sherwood 266,390
Newcastle-under-Lyme 297,119
Newcastle upon Tyne 1,198,924
Newham 1,543,820
North Devon 238,542
North East Derbyshire 248,007
North East Lincolnshire 538,698
North Hertfordshire 273,907
North Kesteven 192,094
North Lincolnshire 437,082
North Norfolk 240,342
North Northamptonshire 795,357
North Somerset 512,590
North Tyneside 691,911
North Warwickshire 135,708
North West Leicestershire 184,150
Northumberland 901,835
Norwich 574,455
Nottingham 1,307,648
Nuneaton and Bedworth 352,980
Oadby and Wigston 85,603
Oldham 818,091
Oxford 397,420
Pendle 247,219
Peterborough 625,911
Plymouth 914,121
Portsmouth 831,664
Preston 445,539
Reading 511,327
Redbridge 834,904
Redcar and Cleveland 529,099
Redditch 228,457
Reigate and Banstead 272,079
Ribble Valley 71,321
Richmondshire 84,271
Richmond upon Thames 413,177
Rochdale 821,457
Rochford 131,027
Rossendale 183,971
Rother 219,883
Rotherham 856,636
Rugby 215,312
Runnymede 166,463
Rushcliffe 154,826
Rushmoor 264,573
Rutland 53,529
Ryedale 110,216
Salford 1,069,537
Sandwell 1,195,414
Scarborough 353,823
Sedgemoor 300,174
Sefton 916,423
Selby 151,468
Sevenoaks 223,824
Sheffield 1,858,571
Shropshire 639,812
Slough 473,580
Solihull 489,540
Somerset West and Taunton 397,524
South Cambridgeshire 228,256
South Derbyshire 170,419
South Gloucestershire 475,936
South Hams 181,892
South Holland 180,596
South Kesteven 290,760
South Lakeland 156,960
South Norfolk 237,831
South Oxfordshire 221,005
South Ribble 196,071
South Somerset 382,817
South Staffordshire 199,988
South Tyneside 719,399
Southampton 884,382
Southend on Sea 604,886
Southwark 1,661,404
Spelthorne 211,588
St Albans 247,461
St Helens 622,033
Stafford 238,594
Staffordshire Moorlands 143,940
Stevenage 267,872
Stockport 692,169
Stockton on Tees 633,612
Stoke on Trent 904,433
Stratford-on-Avon 236,334
Stroud 221,130
Sunderland 1,200,583
Surrey Heath 124,608
Sutton 555,026
Swale 408,996
Swindon 535,086
Tameside 822,753
Tamworth 194,659
Tandridge 160,788
Teignbridge 297,029
Telford and Wrekin 582,229
Tendring 475,018
Test Valley 226,718
Tewkesbury 169,290
Thanet 538,109
Three Rivers 179,355
Thurrock 452,100
Tonbridge and Malling 260,578
Torbay 500,984
Torridge 158,332
Tower Hamlets 1,807,051
Trafford 538,192
Tunbridge Wells 236,423
Uttlesford 127,974
Vale of White Horse 224,512
Wakefield 1,096,832
Walsall 997,558
Waltham Forest 999,820
Wandsworth 1,231,037
Warrington 493,478
Warwick 257,994
Watford 265,830
Waverley 211,582
Wealden 245,479
Welwyn Hatfield 318,009
West Berkshire 299,445
West Devon 111,166
West Lancashire 267,516
West Lindsey 228,302
West Northamptonshire 841,985
West Oxfordshire 184,987
West Suffolk 369,803
Westminster 1,239,900
Wigan 949,622
Wiltshire 971,743
Winchester 219,465
Windsor and Maidenhead 257,154
Wirral 1,156,232
Woking 194,453
Wokingham 183,972
Wolverhampton 1,000,497
Worcester 256,625
Worthing 270,306
Wychavon 252,767
Wyre 279,499
Wyre Forest 274,727
York 364,973
Total 164,141,807

Annex B: 2021 to 2022 LA allocations – Scotland

LA Final 2021 to 2022 DWP HB administration subsidy allocation (£)
Aberdeen 625,477
Aberdeenshire 445,161
Angus 338,885
Argyll and Bute 245,316
Clackmannanshire 206,188
Comhairle nan Eilean Siar 53,864
Dumfries and Galloway 493,007
Dundee 716,812
East Ayrshire 486,739
East Dunbartonshire 184,061
East Lothian 292,942
East Renfrewshire 153,415
Edinburgh 1,420,648
Falkirk 510,779
Fife 1,236,550
Glasgow 3,449,849
Highland 605,821
Inverclyde 360,125
Midlothian 266,258
Moray 222,743
North Ayrshire 622,030
North Lanarkshire 1,302,525
Orkney 42,656
Perth and Kinross 338,004
Renfrewshire 659,273
Scottish Borders 328,342
Shetland 40,987
South Ayrshire 395,188
South Lanarkshire 1,044,306
Stirling 223,070
West Dunbartonshire 467,631
West Lothian 610,360
Total 18,389,015

Annex C: 2021 to 22 LA allocations – Wales

LA Final 2021 to 2022 DWP HB administration subsidy allocation (£)
Blaenau Gwent 293,463
Bridgend 450,723
Caerphilly 605,746
Cardiff 1,205,672
Carmarthenshire 518,694
Ceredigion 176,301
Conwy 352,174
Denbighshire 325,675
Flintshire 383,512
Gwynedd 312,199
Isle of Anglesey 196,598
Merthyr Tydfil 218,585
Monmouthshire 197,735
Neath Port Talbot 552,181
Newport 546,561
Pembrokeshire 363,741
Powys 303,778
Rhondda Cynon Taff 775,996
Swansea 853,134
Torfaen 357,394
Vale of Glamorgan 346,731
Wrexham 433,693
Total 9,770,290