Guidance

S2/2022: Rent Rebate Subsidy Limitation information for financial year ending March 2023

Updated 18 November 2022

Who should read

All Housing Benefit (HB) staff and Officers preparing subsidy claims and estimates.

Action

For information

Subject

Rent Rebate Subsidy Limitation information for financial year ending March 2023.

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 details of the Rent Rebate Subsidy Limitation (RRSL) arrangements. Provisions for the financial year ending (FYE) March 2023 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 in England

2. Since 1 April 2020, the RRSL scheme in HB Subsidy no longer applies in England, as notified in circular HB S11/2019 revised.

3. The RRSL scheme continues in Wales. It does not cover Scotland.

RRSL scheme in Wales

4. The Welsh Government wrote to Welsh LAs in January 2022 to consult on the calculation of draft Limit Rents for FYE March 2023. LAs were notified of the final Limit Rents in February 2022. The specific amounts (‘O’) and guideline weekly rent increases (‘P’) for determining RRSL are set out in Annex A.

5. For the FYE March 2023 RRSL calculation, the rebate proportion is 0.528.

Amendment to the Subsidy Order

6. 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.

7. If you have any questions contact hb.nonsubsidy@dwp.gov.uk

Annex A

Specified amounts and guideline rent increases for FYE March 2023 – Wales

LA Specified amount ‘O’ Guideline rent increase ‘P’
Caerphilly 101.42 3.14
Cardiff 114.24 3.54
Carmarthenshire 100.60 3.12
Denbighshire 100.88 3.59
Flintshire 104.52 5.04
Isle of Anglesey 100.10 4.99
Pembrokeshire 103.60 3.42
Powys 104.19 3.23
Swansea 101.62 3.15
Vale of Glamorgan 112.09 5.15
Wrexham 103.33 4.49