Guidance

S1/2024: Rent Rebate Subsidy Limitation information for financial year ending March 2025 (Wales only)

Updated 23 April 2024

Applies to England, Scotland and Wales

Who should read

All Housing Benefit staff and Officers preparing subsidy claims and estimates

Action

For information

Subject

Rent Rebate Subsidy Limitation information for financial year ending March 2025 (Wales only)

Guidance Manual

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

Queries

f you want extra copies of this circular/copies of previous circulars, they can be found in the Housing Benefit for local authorities: subsidy circulars collection.

If you have any queries about the:

Introduction

1. This circular contains details of the Rent Rebate Subsidy Limitation (RRSL) arrangements. Provisions for the financial year ending (FYE) March 2025 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 (LA) associations before being laid before Parliament.

RRSL scheme

2. The RRSL scheme continues in Wales. It does not cover Scotland. And since 1 April 2020, the RRSL scheme in HB Subsidy no longer applies in England, as notified in circular HB S11/2019 Revised.

RRSL scheme draft Limit Rents calculation

3. The Welsh Government wrote to Welsh LAs on 20 February 2024 to consult on the calculation of draft Limit Rents for FYE March 2025. LAs were notified of the final Limit Rents as part of this consultation. The specific amounts (‘O’) and guideline weekly rent increases (‘P’) for determining RRSL are set out in Annex A.

4. For the FYE March 2025 RRSL calculation, the rebate proportion is 0.397.

Amendment to the Subsidy Order

5. 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.

Annex 1: Specified amounts and guideline rent increases for FYE March 2025 – Wales

LA Specified amount ‘O’ Guideline rent increase ‘P’
Caerphilly 112.66 8.69
Cardiff 127.01 9.93
Carmarthenshire 111.84 8.66
Denbighshire 112.78 8.85
Flintshire 118.06 9.06
Isle of Anglesey 113.43 8.86
Pembrokeshire 114.89 8.46
Powys 115.70 8.81
Swansea 113.19 9.05
Vale of Glamorgan 126.03 9.39
Wrexham 116.23 8.94