S1/2020: 2020-21 Housing Benefit administration subsidy arrangements for English, Scottish and Welsh local authorities
Updated 26 November 2020
© Crown copyright 2020
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This publication is available at https://www.gov.uk/government/publications/housing-benefit-subsidy-circulars-2020/s12020-2020-21-housing-benefit-administration-subsidy-arrangements-for-english-scottish-and-welsh-local-authorities
Who should read
All Housing Benefit managers and staff in England, Scotland and Wales. Officers preparing subsidy claims and estimates.
Action
For information.
Guidance manual
The information in this circular does not affect the content of the HB Guidance Manual.
Queries
For queries about the technical content of this circular, contact [email protected]
For queries about the 2020-21 HB administration subsidy payment arrangements, contact [email protected] or telephone Martin Spencer on 01253 331671
For queries about the distribution of this circular, contact [email protected]
Introduction
1. This circular contains final details of the distribution of the 2020-21 Housing Benefit (HB) administration subsidy.
2. Provision for the 2020-21 HB administration subsidy arrangements will be made by an Amendment Order to the Income-related Benefits (Subsidy to Authorities) Order 1998, which will be subject to consultation with the Local Authority Associations (LAAs) prior to being laid in Parliament.
3. LAAs and local authority (LA) representatives have been consulted regarding the distribution methodology.
Background
4. Following the abolition of Council Tax Benefit (CTB) and the introduction of Local Council Tax Support (LCTS) in April 2013, the funding baseline for HB/CTB has remained disaggregated. The Department for Work and Pensions (DWP) is responsible for allocating the HB element to LAs and the Ministry of Housing, Communities and Local Government and the Devolved Administrations are responsible for distributing the LCTS element to their respective LAs.
5. The 2020-21 HB administration subsidy allocation by country is:
-
English LAs – £166.956 million
-
Scottish LAs – £18.854 million
-
Welsh LAs – £9.576 million
6. This funding is calculated by deducting the Universal Credit (UC) reduction to the 2020-21 HB administration subsidy, which is consistent with DWP’s baseline funding.
7. For 2020-21 no departmental efficiency reduction has been applied.
UC rollout
8. The 2020-21 HB administration subsidy funding takes into account the estimated volume of HB claimants moving to UC. UC reductions of £0.724 million have been applied to the total amount of the 2020-21 HB administration subsidy for Great Britain. This is in addition to the £26.979 million deducted from the baseline in 2019-20 which was a cumulative UC reduction value up to, and including, 2019-20.
9. UC reductions are profiled across a number of financial years. The 2020-21 UC reductions continue to reflect current polices.
Distribution methodology
10. This funding is a contribution to the cost of administering HB. DWP, in consultation with the LA Funding Group (which consists of LA Chief Finance Officers and LAA representatives), decided to change the methodology for allocating HB administration subsidy from 2019-20.
11. The 3-year methodology, which commenced in 2019-20, uses HB caseload data as at May 2019 and UC housing element caseload volumes. This combined total is used to determine the proportion of core HB administration subsidy allocated to each LA, irrespective of where the LA was on the UC rollout schedule.
12. The UC reductions have been calculated based on the amount of HB Working Age caseload moving to UC. SHBE (Single Housing Benefit Extract) data and UC data have been used to determine the expected change in workloads due to UC in 2020-21.
13. The second year of the three-year allocation methodology is being applied to distribute the 2020-21 HB administration subsidy to LAs. Furthermore, the transitional arrangements for 2020-21 will be the second and final year these are applied. This is to prevent LAs experiencing a large change in their allocation relative to the previous 2018-19 methodology.
14. Allocations are rounded to the nearest pound.
2020-21 national funding
15. The table below details the total national funding level available for 2020-21 compared to 2019-20.
| HB administration subsidy | 2019-20 (£million, rounded) | 2020-21 (£million, rounded) |
|---|---|---|
| HB administration subsidy allocation (previous year) | 216.807 | 196.109 |
| Less adjustment for UC | -9.785 | -0.724 |
| Less departmental efficiency reduction | -10.913 | -0.000 |
| HB administration subsidy funding level | 196.109 | 195.385 |
Payment of administration subsidy
16. Payments of HB administration subsidy will be made in 12 monthly instalments beginning in April 2020. The overall subsidy available to support HB administration costs is cash-limited and so there is no provision for any adjustments to be made to individual LA allocations.
2020-21 LA allocations – England
| LA | Final 2020-21 DWP HB administration subsidy allocation (£) |
|---|---|
| Adur | 148,409 |
| Allerdale | 253,280 |
| Amber Valley | 290,137 |
| Arun | 384,486 |
| Ashfield | 361,850 |
| Ashford | 303,808 |
| Babergh | 168,979 |
| Barking and Dagenham | 912,060 |
| Barnet | 1,396,513 |
| Barnsley | 777,813 |
| Barrow-in-Furness | 195,922 |
| Basildon | 539,715 |
| Basingstoke and Deane | 359,303 |
| Bassetlaw | 284,746 |
| Bath and North East Somerset | 383,101 |
| Bedford | 424,394 |
| Bexley | 631,550 |
| Birmingham | 4,685,200 |
| Blaby | 142,376 |
| Blackburn with Darwen | 462,970 |
| Blackpool | 746,494 |
| Bolsover | 220,290 |
| Bolton | 978,807 |
| Boston | 193,143 |
| Bournemouth, Christchurch and Poole | 1,095,312 |
| Bracknell Forest | 249,088 |
| Bradford | 1,612,423 |
| Braintree | 333,569 |
| Breckland | 307,208 |
| Brent | 1,694,435 |
| Brentwood | 121,757 |
| Brighton and Hove | 1,012,440 |
| Bristol | 1,565,728 |
| Broadland | 200,242 |
| Bromley | 791,395 |
| Bromsgrove | 148,034 |
| Broxbourne | 259,908 |
| Broxtowe | 229,733 |
| Buckinghamshire | 978,276 |
| Burnley | 322,654 |
| Bury | 513,044 |
| Calderdale | 606,374 |
| Cambridge | 313,429 |
| Camden | 1,370,229 |
| Cannock Chase | 253,021 |
| Canterbury | 366,781 |
| Carlisle | 276,199 |
| Castle Point | 174,511 |
| Central Bedfordshire | 523,102 |
| Charnwood | 304,496 |
| Chelmsford | 347,194 |
| Cheltenham | 256,448 |
| Cherwell | 288,256 |
| Cheshire East | 720,801 |
| Cheshire West and Chester | 803,874 |
| Chesterfield | 357,205 |
| Chichester | 266,033 |
| Chorley | 233,990 |
| City of London | 50,955 |
| Colchester | 440,760 |
| Copeland | 193,379 |
| Corby | 200,007 |
| Cornwall | 1,612,414 |
| Cotswold | 160,875 |
| Coventry | 1,065,814 |
| Craven | 89,543 |
| Crawley | 379,288 |
| Croydon | 1,406,292 |
| Dacorum | 405,088 |
| Darlington | 357,967 |
| Dartford | 231,719 |
| Daventry | 133,374 |
| Derby | 782,615 |
| Derbyshire Dales | 128,063 |
| Doncaster | 951,370 |
| Dorset | 837,154 |
| Dover | 329,969 |
| Dudley | 887,256 |
| Durham | 1,862,951 |
| Ealing | 1,478,514 |
| East Cambridgeshire | 166,767 |
| East Devon | 286,037 |
| East Hampshire | 188,788 |
| East Hertfordshire | 273,031 |
| East Lindsey | 437,604 |
| East Northamptonshire | 166,475 |
| East Riding of Yorkshire | 688,895 |
| East Staffordshire | 249,666 |
| East Suffolk | 609,139 |
| Eastbourne | 365,495 |
| Eastleigh | 226,224 |
| Eden | 86,240 |
| Elmbridge | 261,270 |
| Enfield | 1,581,998 |
| Epping Forest | 281,453 |
| Epsom and Ewell | 136,972 |
| Erewash | 276,360 |
| Exeter | 339,591 |
| Fareham | 167,514 |
| Fenland | 267,711 |
| Folkestone and Hythe | 342,323 |
| Forest of Dean | 189,942 |
| Fylde | 180,614 |
| Gateshead | 795,243 |
| Gedling | 258,131 |
| Gloucester | 358,192 |
| Gosport | 247,747 |
| Gravesham | 280,331 |
| Great Yarmouth | 363,848 |
| Greenwich | 1,396,628 |
| Guildford | 259,498 |
| Hackney | 2,123,448 |
| Halton | 460,636 |
| Hambleton | 159,383 |
| Hammersmith and Fulham | 966,485 |
| Harborough | 108,121 |
| Haringey | 1,500,359 |
| Harlow | 321,693 |
| Harrogate | 259,617 |
| Harrow | 762,257 |
| Hart | 111,509 |
| Hartlepool | 421,287 |
| Hastings | 397,789 |
| Havant | 267,104 |
| Havering | 634,107 |
| Herefordshire | 425,829 |
| Hertsmere | 267,797 |
| High Peak | 210,676 |
| Hillingdon | 915,787 |
| Hinckley and Bosworth | 174,711 |
| Horsham | 226,213 |
| Hounslow | 897,473 |
| Huntingdonshire | 327,977 |
| Hyndburn | 268,884 |
| Ipswich | 458,399 |
| Isle of Wight | 441,679 |
| Isles of Scilly | 1,720 |
| Islington | 1,525,995 |
| Kensington and Chelsea | 889,741 |
| Kettering | 228,840 |
| Kings Lynn and West Norfolk | 367,310 |
| Kingston upon Hull | 1,263,075 |
| Kingston upon Thames | 418,613 |
| Kirklees | 1,183,014 |
| Knowsley | 692,660 |
| Lambeth | 1,869,769 |
| Lancaster | 346,703 |
| Leeds | 2,589,113 |
| Leicester | 1,224,567 |
| Lewes | 255,189 |
| Lewisham | 1,702,398 |
| Lichfield | 175,221 |
| Lincoln | 335,669 |
| Liverpool | 2,461,284 |
| Luton | 685,451 |
| Maidstone | 362,907 |
| Maldon | 118,024 |
| Malvern Hills | 160,884 |
| Manchester | 2,479,702 |
| Mansfield | 341,501 |
| Medway | 762,921 |
| Melton | 85,512 |
| Mendip | 246,087 |
| Merton | 555,854 |
| Mid Devon | 169,402 |
| Mid Suffolk | 155,679 |
| Mid Sussex | 224,100 |
| Middlesbrough | 693,511 |
| Milton Keynes | 818,270 |
| Mole Valley | 164,797 |
| New Forest | 340,295 |
| Newark and Sherwood | 265,777 |
| Newcastle-under-Lyme | 306,323 |
| Newcastle upon Tyne | 1,159,422 |
| Newham | 1,607,600 |
| North Devon | 245,371 |
| North East Derbyshire | 250,028 |
| North East Lincolnshire | 535,594 |
| North Hertfordshire | 297,797 |
| North Kesteven | 197,235 |
| North Lincolnshire | 428,191 |
| North Norfolk | 255,690 |
| North Somerset | 519,830 |
| North Tyneside | 696,227 |
| North Warwickshire | 136,012 |
| North West Leicestershire | 182,410 |
| Northampton | 611,098 |
| Northumberland | 927,069 |
| Norwich | 608,750 |
| Nottingham | 1,380,161 |
| Nuneaton and Bedworth | 343,626 |
| Oadby and Wigston | 87,548 |
| Oldham | 778,294 |
| Oxford | 420,278 |
| Pendle | 262,631 |
| Peterborough | 622,405 |
| Plymouth | 912,678 |
| Portsmouth | 890,698 |
| Preston | 436,644 |
| Reading | 521,479 |
| Redbridge | 849,338 |
| Redcar and Cleveland | 539,107 |
| Redditch | 224,601 |
| Reigate and Banstead | 285,760 |
| Ribble Valley | 74,082 |
| Richmondshire | 79,882 |
| Richmond upon Thames | 423,400 |
| Rochdale | 810,610 |
| Rochford | 134,754 |
| Rossendale | 184,400 |
| Rother | 214,951 |
| Rotherham | 869,467 |
| Rugby | 200,469 |
| Runnymede | 177,939 |
| Rushcliffe | 160,399 |
| Rushmoor | 277,211 |
| Rutland | 53,068 |
| Ryedale | 103,999 |
| Salford | 1,090,896 |
| Sandwell | 1,253,663 |
| Scarborough | 361,824 |
| Sedgemoor | 278,971 |
| Sefton | 895,256 |
| Selby | 148,691 |
| Sevenoaks | 234,520 |
| Sheffield | 1,960,907 |
| Shropshire | 638,582 |
| Slough | 485,973 |
| Solihull | 483,199 |
| Somerset West and Taunton | 384,134 |
| South Cambridgeshire | 232,867 |
| South Derbyshire | 171,704 |
| South Gloucestershire | 519,911 |
| South Hams | 187,943 |
| South Holland | 181,872 |
| South Kesteven | 285,814 |
| South Lakeland | 167,225 |
| South Norfolk | 243,776 |
| South Northamptonshire | 118,008 |
| South Oxfordshire | 218,090 |
| South Ribble | 197,491 |
| South Somerset | 369,947 |
| South Staffordshire | 204,500 |
| South Tyneside | 723,247 |
| Southampton | 865,653 |
| Southend on Sea | 603,172 |
| Southwark | 1,668,245 |
| Spelthorne | 220,616 |
| St Albans | 249,894 |
| St Helens | 614,417 |
| Stafford | 244,004 |
| Staffordshire Moorlands | 153,258 |
| Stevenage | 284,342 |
| Stockport | 709,741 |
| Stockton on Tees | 628,606 |
| Stoke on Trent | 923,476 |
| Stratford-on-Avon | 232,329 |
| Stroud | 220,021 |
| Sunderland | 1,205,600 |
| Surrey Heath | 134,042 |
| Sutton | 525,533 |
| Swale | 406,329 |
| Swindon | 505,307 |
| Tameside | 810,456 |
| Tamworth | 190,514 |
| Tandridge | 161,959 |
| Teignbridge | 305,412 |
| Telford and Wrekin | 603,905 |
| Tendring | 483,070 |
| Test Valley | 228,484 |
| Tewkesbury | 165,025 |
| Thanet | 534,433 |
| Three Rivers | 182,910 |
| Thurrock | 451,890 |
| Tonbridge and Malling | 270,707 |
| Torbay | 529,178 |
| Torridge | 161,047 |
| Tower Hamlets | 1,883,792 |
| Trafford | 531,485 |
| Tunbridge Wells | 250,858 |
| Uttlesford | 125,966 |
| Vale of White Horse | 216,612 |
| Wakefield | 1,152,842 |
| Walsall | 1,024,323 |
| Waltham Forest | 1,078,042 |
| Wandsworth | 1,321,593 |
| Warrington | 467,732 |
| Warwick | 264,235 |
| Watford | 269,010 |
| Waverley | 225,382 |
| Wealden | 250,687 |
| Wellingborough | 210,007 |
| Welwyn Hatfield | 321,308 |
| West Berkshire | 301,894 |
| West Devon | 120,334 |
| West Lancashire | 260,203 |
| West Lindsey | 230,305 |
| West Oxfordshire | 183,700 |
| West Suffolk | 377,452 |
| Westminster | 1,311,660 |
| Wigan | 931,103 |
| Wiltshire | 958,412 |
| Winchester | 224,966 |
| Windsor and Maidenhead | 264,606 |
| Wirral | 1,146,232 |
| Woking | 206,858 |
| Wokingham | 176,990 |
| Wolverhampton | 998,304 |
| Worcester | 269,304 |
| Worthing | 271,335 |
| Wychavon | 254,375 |
| Wyre | 290,369 |
| Wyre Forest | 285,711 |
| York | 372,320 |
| Total | 166,955,823 |
2020-21 LA allocations – Scotland
| LA | Final 2020-21 DWP HB administration subsidy allocation (£) |
|---|---|
| Aberdeen | 634,437 |
| Aberdeenshire | 485,856 |
| Angus | 331,051 |
| Argyll and Bute | 265,058 |
| Clackmannanshire | 195,759 |
| Comhairle nan Eilean Siar | 70,482 |
| Dumfries and Galloway | 511,672 |
| Dundee | 726,503 |
| East Ayrshire | 472,428 |
| East Dunbartonshire | 192,293 |
| East Lothian | 276,815 |
| East Renfrewshire | 158,524 |
| Edinburgh | 1,574,254 |
| Falkirk | 504,934 |
| Fife | 1,205,936 |
| Glasgow | 3,647,014 |
| Highland | 605,758 |
| Inverclyde | 353,348 |
| Midlothian | 259,688 |
| Moray | 225,784 |
| North Ayrshire | 612,215 |
| North Lanarkshire | 1,310,012 |
| Orkney | 47,867 |
| Perth and Kinross | 360,100 |
| Renfrewshire | 691,804 |
| Scottish Borders | 345,887 |
| Shetland | 43,139 |
| South Ayrshire | 393,230 |
| South Lanarkshire | 1,027,095 |
| Stirling | 216,739 |
| West Dunbartonshire | 501,583 |
| West Lothian | 606,369 |
| Total | 18,853,634 |
2020-21 LA allocations – Wales
| LA | Final 2020-21 DWP HB administration subsidy allocation (£) |
|---|---|
| Blaenau Gwent | 291,747 |
| Bridgend | 442,045 |
| Caerphilly | 597,598 |
| Cardiff | 1,184,170 |
| Carmarthenshire | 517,964 |
| Ceredigion | 183,347 |
| Conwy | 345,584 |
| Denbighshire | 318,096 |
| Flintshire | 359,191 |
| Gwynedd | 328,905 |
| Isle of Anglesey | 201,412 |
| Merthyr Tydfil | 215,274 |
| Monmouthshire | 197,737 |
| Neath Port Talbot | 528,813 |
| Newport | 521,287 |
| Pembrokeshire | 357,167 |
| Powys | 302,891 |
| Rhondda Cynon Taff | 779,072 |
| Swansea | 807,725 |
| Torfaen | 335,166 |
| Vale of Glamorgan | 344,039 |
| Wrexham | 416,481 |
| Total | 9,575,711 |