§ Sir Sydney ChapmanTo ask the Secretary of State for Social Security what plans he has to allow local authorities to contract out housing benefit and council tax benefit. [18484]
§ Mr. Roger EvansI announced on 12 November 1996,Official Report, column 196, my intention to open consultation with the local authority associations on a proposal to bring forward an order under the Deregulation and Contracting Out Act 1994 which would allow contractors to carry out housing and council tax benefit determinations. Existing legislation prevents contractors from making benefit determinations and reduces the efficiency of contracts which local authorities are able to negotiate. Following consultation with the local authority associations, I am laying before Parliament today the Contracting Out (Functions of Local Authorities in relation to Income-related Benefits) Order 1997. The order will allow contractors to carry out the bulk of housing and council tax benefits administration, including benefit determinations. However, some functions relating to claims for central Government subsidy, overpayments, prosecutions, discretionary payments and appeals will be reserved for local authorities.