Section 2: Benefit costs
Published 15 February 2019
© Crown copyright 2019
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/housing-benefit-subsidy-guidance-manual-2018-to-2019/section-2-benefit-costs
Benefit costs
200. The benefit subsidy arrangements set out in this guidance manual apply to all Housing Benefit (HB) lawfully paid in the relevant year. They also apply to all overpayments identified in that period.
201. Local Authorities (LAs) receive, for the greater part of the qualifying benefit expenditure they incur, a direct subsidy of 100%. However, in areas of expenditure wherein LAs have most scope to monitor and control costs, lower rates apply.
202. The areas of benefit spending which attract a lower rate of subsidy are:
- certain types of overpaid benefit and duplicate payments see Section 4: Overpayments, Overpaid benefit later in this manual
- disproportionate increases in rents rebated through HB, see Section 5: Disproportionate rent increase rule later in this manual
- rent rebate payments above a specified level in respect of homeless people in board and lodging, licensed and short-term accommodation, see Section 6: Temporary accommodation later in this manual
- rent allowance paid above or without the required rent officer determination see Section 7: Rent Allowances later in this manual
- rent allowance payments above a specified level in respect of temporary or short-term accommodation where a Registered Housing Association is the landlord, see Section 6: Temporary accommodation later in this manual
203-209.
Qualifying expenditure
210. ‘Qualifying expenditure’ is the total of HB paid by an LA during the relevant financial year, subject to certain deductions. The deductions are:
- modular improvement schemes (rent rebate only), unless the authority qualifies for exemption
- rent free weeks and credits
- awards to tenants
- prior year overpayments – including recovered Departmental error overpayment
- uncashed instruments of payment
- recovered payments on account which occurred in a previous year, and expenditure on modified schemes
211. The term ‘paid’ should be taken to mean benefit lawfully awarded and paid or credited in relation to the relevant year even though physical payments of benefit made to claimants, by rent allowance or as a rebate, may not reflect actual benefit paid because of deductions from ongoing entitlement to recover overpayments.
Queries
212. If you have any queries concerning the content of this section, contact:
Housing Delivery Division
Email: hbsubsidy.queries@dwp.gsi.gov.uk
213-299.