Section 1: Introduction
Published 21 April 2021
© Crown copyright 2021
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-2020-to-2021/section-1-introduction
100. The Department for Work and Pensions (DWP) is responsible for paying all subsidy in respect of rent rebate and rent allowance.
101. With the exception of certain areas of housing benefit (HB) spending wherein Local Authorities (LAs) have the most scope to monitor and control costs, subsidy is paid at the rate of 100%. The benefit subsidy arrangements require LAs to keep accurate records of benefit spending falling into the different categories required for subsidy purposes. LAs need to maintain systems and records in such a way that the individual cases, which make up the benefit subsidy totals in each category, can be identified for verification of accounts and claims for internal audit and auditor certification purposes.
Subsidy legislation
102. Until 1996 to 1997, the Housing Benefit/Council Tax Benefit (CTB) subsidy arrangements for each financial year were provided for in the annual HB and CTB (Subsidy) Order, which was made towards the end of the relevant financial year.
103. However, from 1997 to 1998, the legislative vehicle for the subsidy arrangements is the Income-related Benefits (Subsidy to Authorities) Order 1998 SI 1998/562, which is amended as required to take account of any changes to the subsidy arrangements.
104. Separate detailed guidance is issued about the arrangements for claiming payments on account of subsidy and for making final subsidy claims. A brief summary is given in Section 11: In-year instalments of subsidy and payments of subsidy.
105. LAs should note that amounts should be rounded to the nearest pound when claiming subsidy. Amounts of 50 pence or less should be rounded down; amounts over 50 pence should be rounded up.
106. This guidance should be read in conjunction with the ‘Notes for guidance on completion’ accompanying final subsidy claim forms (MPF720A, B, or C, as appropriate).
107-199