Section: Housing Benefits

New Regulations

The Housing Benefit (General) (Amendment) Regulations 2005 SI 1719

These Regulations further amend the Housing Benefit (General) Regulations 1987.

Regulation 70(1) (rent free periods) and Regulation 6(2) (which covers where a person is to be treated as liable to pay rent) of the 1987 Regulations are amended to preserve the policy that Housing Benefit, for tenancies with rent free periods, assists only with the full rent in the weeks in which rent is actually due.

The Social Security Commissioner, prior to the amendments, found that the HB regulations failed to apply to tenancies with rent free periods where a claimant is not required to pay rent, but, technically, is liable for the payment of rent.

The HB regulations are intended to ensure benefit is not paid for rent free periods. The amending regulations aim to close the loophole that allows this policy aim to be circumvented.

Claimant In and Out of Hospital

Local Government Ombudsman Tony Redmond issued a report on his investigation of a complaint, about Housing Benefit, against Southend-on-Sea Borough Council.

Mr P has a history of mental illness, which has resulted in lengthy periods as an in-patient in hospital psychiatric units. He held a Southend-on-Sea Borough Council tenancy, and then, briefly, a private tenancy. Ms F, who is Mr P's partner, complained on his behalf about the Council's handling of his claims for Housing Benefit and the lack of liaison between the Council's Housing and Borough Treasurer's departments.

The Ombudsman upheld the complaints. Whilst accepting the difficulties faced when dealing with a benefit claimant who is in and out of hospital on a regular basis, the Ombudsman found that:

The Council failed to administer Mr P's claims properly, and this was compounded by the lack of liaison between departments.
This caused Mr P injustice, in that he was caused anxiety by mounting arrears, was served a Notice of Seeking Possession and evicted from his council flat, and was threatened with eviction from his private flat.

The Ombudsman's report finds maladministration causing injustice and recommends that the Council should pay Mr P £1,000 to compensate him for the distress and anxiety caused by the Council's actions.

Report No. 03/A/14278

HB in Brief

Housing Benefit Minister James Plaskitt promised that the Government would look at possible amendments to the Housing Benefit Scheme, following the publication of a new research report, which considers young people's access to and ability to afford accommodation in the private rented sector while receiving Housing Benefit.

The research examined the impact of the 'single room rent restriction' (SRR). Since its introduction, in 1996, the SRR has limited many young claimants' Housing Benefit entitlement, to the average cost of a one-room accommodation with shared facilities in a claimant's area - the 'single room rent.' This is the point of reference notwithstanding the lack of availability of this type of accommodation in some areas. Claimants who are subject to the SRR, but live in other types of accommodation, e.g. in a self-contained flat, must usually make up the shortfall themselves.

The introduction of the 'single room rent' aimed to increase the amount of Housing Benefit young low-income earners could claim to rent a room in a shared house, but research since its introduction has been largely critical of the restriction. The new research uncovered the widely held view that the SRR is responsible for an increased sense of uncertainty among young low-income earners, and is a factor in the resort to the homelessness route, as the only way into accommodation, and so should be abolished.
A former Housing Benefit assessor with Camden Council was found guilty of fraud over a 10-year period, and jailed for six years. He had set up his accomplice as a bogus landlord of up to fifteen invented dwellings, and paid Housing Benefit to tenants that did not exist. His partner in crime received a four-year jail sentence.
The Department for Work & Pensions (DWP) consulted local authorities on whether they wanted greater power to take action against those suspected of fraudulently claiming benefit (other than Housing Benefit and Council Tax Benefit), which currently have to be referred for the DWP to investigate. Subject to consultation responses, changes may be introduced as part of legislation to reform Housing Benefit due to go to Parliament towards the end of 2005.
The British Property Federation, CAB, Shelter, and the Joseph Rowntree Foundation agreed to work together to table amendments to the forthcoming Housing Benefit Bill. The four organisations have many common interests, including the time taken to process Housing Benefit claims and concerns over the effects of the flat-rate local housing allowance system proposed for the social housing sector.

Section: Housing Benefits

New Regulations

Claimant In and Out of Hospital

HB in Brief

Housing Monthly Diary

Issue: September 2005 Reporting on May-August 2005

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