keep SUMS AND PERCENTAGE TO BE USED IN THE CALCULATION OF SUBSIDY
This Order amends the Income-Related Benefits (Subsidy to Authorities) Order 1998 for the year commencing 1st April 2001, adjusting maximum subsidy amounts (to £682,145), substituting schedules with updated figures, and adding definitions for 'weekly benefit savings scheme' and 'new incentive scheme' based on DWP circulars. It also corrects an additional subsidy figure for Sefton (£134,827 instead of £132,827) with retroactive effect to April 2000.
While this regulation involves government subsidy to local authorities for income-related benefits (housing benefit and council tax benefit), deleting it would leave local authorities facing funding gaps for essential welfare payments to vulnerable low-income households. Without this subsidy mechanism, authorities in poorer areas would need to dramatically raise council tax or cut benefits, harming those the system is intended to protect. The underlying policy goal—supporting low-income households with housing costs—requires some funding mechanism, and while block grants or direct payments could theoretically be simpler alternatives, this represents a transfer mechanism rather than a regulatory burden on businesses or the economy. The administrative complexity here serves an identifiable social protection function.