S1/2025: Rent Rebate Subsidy Limitation information for the financial year ending March 2026 (Wales only)
Updated 24 April 2025
Applies to England, Scotland and Wales
© Crown copyright 2025
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Who should read
All Housing Benefit colleagues and wider if appropriate (Wales only)
Action
For information
Subject
Rent Rebate Subsidy Limitation information for the financial year ending March 2026 (Wales only)
Guidance Manual
The information in this circular does not affect the content of the Housing Benefit Guidance Manual.
Queries
Extra copies of this circular and copies of previous circulars are available.
For queries about technical content of this circular, contact: lafunding.enquiries@dwp.gov.uk
If you need to ask about the distribution of this circular, contact: lawelfare.correspondence@dwp.gov.uk
Crown Copyright 2025
Recipients may freely reproduce this circular.
Introduction
1. This circular contains details of the Rent Rebate Subsidy Limitation (RRSL) arrangements. Provisions for the financial year ending (FYE) March 2026 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 England and Scotland.
RRSL scheme final Limit Rents calculation
3. The Welsh Government wrote to Welsh LAs on 4 February 2025 to consult on the calculation of draft Limit Rents for the FYE March 2026. 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 2026 RRSL calculation, the rebate proportion is 0.369.
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.
Specified amounts and guideline rent increases for the FYE March 2026 – Wales
| LA | Specified amount ‘O’ | Guideline rent increase ‘P’ |
|---|---|---|
| Caerphilly | 121.35 | 3.58 |
| Cardiff | 136.94 | 3.78 |
| Carmarthenshire | 120.50 | 3.41 |
| Denbighshire | 121.63 | 3.18 |
| Flintshire | 127.12 | 5.04 |
| Isle of Anglesey | 122.29 | 4.96 |
| Pembrokeshire | 123.35 | 4.51 |
| Powys | 124.51 | 3.83 |
| Swansea | 122.24 | 3.01 |
| Vale of Glamorgan | 135.42 | 5.18 |
| Wrexham | 125.17 | 3.64 |