Section: Housing Benefit & Council Tax

Wrong to Recover Council Tax Arrears

Northampton Borough Council wrongly took repossession action through the courts and instructed bailiffs to collect Council Tax arrears from a woman while her Benefits entitlement was unresolved.

In his report, Local Government Ombudsman Jerry White upholds the woman's complaints, saying they highlighted "serious failings in the Council's administration of Housing and Council Tax Benefit and in the recovery of rent and Council Tax arrears."

Ms A complained about the Council's handling of her Housing and Council Tax Benefit claims between November 2004 and March 2006. She said the Council:

delayed excessively in processing benefit claims and appeals; and
pursued recovery of rent and Council Tax arrears while Benefit claims and appeals were outstanding - in particular, taking repossession action through the County Court, and instructing bailiffs to collect Council Tax arrears while Benefit entitlement was unresolved.

The Ombudsman upheld these complaints, and the Council has agreed to:

apologise to Ms A;
write-off a Housing Benefit overpayment of £79.46;
write-off an outstanding balance on Ms A's Council Tax account of £187.39;
make a payment of one week's Housing and Council Tax Benefit for the week commencing 7 December 2005, or else pay financial compensation to the equivalent value; and
pay additional compensation of £1,865 to Ms A.

The Ombudsman also welcomes commitments given by the Council to improve its procedures so as to avoid a repeat of the failings highlighted during this investigation.

Local Government Ombudsman Report 05/B/1677399

HB Sanctions for ASB will Deter Landlords

The Welfare Reform Bill received royal assent, opening the way for a two-year pilot of the controversial docking of Housing Benefit for antisocial and uncooperative tenants. The pilot will involve eight local authorities and start in November 2007.

Lee Dribben, Chair of the Residential Landlords' Association, attacked the plans as unworkable and liable to discourage landlords from accepting Housing Benefit claimants. Mr Dribben, who is a landlord in Blackpool - one of the pilot areas - argued that the plans would provide some private landlords with another reason for avoiding Housing Benefit tenants.

The Residential Landlords' Association has already warned its members to turn away recipients of the new local housing allowance, which will be rolled out nationally next year. Housing Benefit claimants represent between 20% and 25% of all private sector tenants. Both the National Housing Federation and the Chartered Institute of Housing have criticised the proposed sanctions.

Case Law Update

Following their divorce, Mr and Mrs Graves lived apart and the children lived with their mother.

Mr Graves owned a property and agreed to rent it to his ex-wife to provide a home for her and the children. He took a substantial deposit and the letting was on an assured shorthold tenancy.

As neither Mr or Mrs Graves had a substantial income, the premise for the tenancy was that the ex-wife would claim and be paid Housing Benefit with which to pay the rent. However, Housing Benefit was not payable because the landlord was the children's father.

A Judge held that the tenancy was void for mistake, or had been frustrated by the non-payment of benefit.

The Court of Appeal decided that the tenancy had terminated when the Housing Benefit claim was refused, as it was an implied term that the tenancy would continue only if Housing Benefit was paid. Therefore, there was no need to consider mistake or frustration.

Graves v Graves [2007] EWCA Civ 660, 3 July 2007
The claimants were EU nationals who were not economically active but were lawfully present and habitually resident in the UK in exercise of their EU Treaty rights. They were refused benefits, including Housing Benefit, on the grounds that they had no "right to reside".

The claimants appealed to the Court of Appeal against the decisions of the Social Security Commissioners. The Court dismissed their appeals and declined to refer any questions to the EU Court of Justice. There had been no breach of any EU Treaty nor EU Directive and no discrimination in the refusal of their claims.

Abdirahman and others v Secretary of State [2007] EWCA Civ 657, 5 July 2007

New Regulations

Source: Office of Public Sector Information

The Social Security, Housing Benefit and Council Tax Benefit (Miscellaneous Amendments) Regulations 2007 SI 1331

These Regulations amend the Social Security (Claims and Payments) Regulations 1987, the Council Tax Benefit Regulations 2006, the Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006, the Housing Benefit Regulations 2006 and the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006.

Note: Regulations 3, 4, 5 and 6 make amendments to exclude persons from abroad from making advance claims for Housing Benefit and Council Tax Benefit.
The Housing Benefit (Amendment) Regulations 2007 S! 1356

These Regulations amend the Housing Benefit Regulations 2006 (S.I. 2006/213) and the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 (S.I. 2006/214).

Regulations 2(3) and 3(3) provide that a person will be treated as not liable to make payments in respect of a dwelling and so will not be entitled to Housing Benefit if he or his partner ceased to be a tenant under a long tenancy of the dwelling within the previous 5 years. This does not apply if the claimant satisfies the Housing Benefit authority that he or his partner would not have been able to continue to occupy the property if they had not relinquished the long tenancy.

Regulations 2(4)(a) and 3(4)(a) provide that payments under any shared ownership lease are payments in respect of which Housing Benefit can be paid. Regulations 2(7) and 3(7) provide that shared ownership leases are to be "excluded tenancies" and therefore a claim for Housing Benefit in respect of a shared ownership lease cannot be referred to the Rent Officer.

Regulations 2(4)(b) and 3(4)(b) provides that where the claimant's partner is the owner of a dwelling then payments by a claimant in respect of that dwelling are not eligible for Housing Benefit.

Regulations 2(5) and 3(5) provide that the amount of Housing Benefit payable to a claimant in respect of a dwelling will be subject to the maximum rent provisions from the beginning of his claim if his partner has claimed Housing Benefit in respect of that dwelling in the previous 52 weeks.

Regulations 2(6) and 3(6) provides that the period for making representations following a decision by a relevant authority relating to a Rent Officer's determination or re-determination is one month from the day on which the person affected by the decision was notified of that decision.
The Housing Benefit and Council Tax Benefit (War Pension Disregards) Regulations 2007 SI 1619

Regulation 2 and Part 1 of the Schedule prescribe the war disablement pensions for the purpose of section 134(8)(a) and section 139(6)(a) of the Social Security Administration Act 1992 (c.5). Those sections give local authorities a power to modify the Housing Benefit and Council Tax Benefit schemes to disregard some or all of any prescribed war disablement pension or war widow's pension. Regulation 3 and Part 2 of the Schedule prescribes the war widow's pensions for the purpose of section 134(8)(a) or section 139(6)(a).

Regulations 5 to 7 make consequential amendments to the Housing Benefit Regulations 2006, the Council Tax Benefit Regulations 2006, the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 and the Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006.
The Social Security (Students and Income-related Benefits) Amendment Regulations 2007 SI 1632

These Regulations further amend the Income Support (General) Regulations 1987 (S.I. 1987/1967), the Jobseeker's Allowance Regulations 1996 (S.I. 1996/207), the Housing Benefit Regulations 2006 (S.I. 2006/213) and the Council Tax Benefit Regulations 2006 (S.I. 2006/215) in so far as they relate to students and sums to be disregarded in the calculation of their entitlement to benefit.

The amendments increase the amounts of grant and loan income to be disregarded in respect of travel costs and the costs of books and equipment. They also clarify that the disregards apply only once in every academic year.
The Welfare Reform Act 2007 Commencement (No. 1) Order 2007 SI 1721 (C. 67)

This Order brings into force section 31 of the Welfare Reform Act 2007, which relates to loss of Housing Benefit following eviction for anti-social behaviour, etc.

Section 31 inserts new sections into the Social Security Contributions and Benefits Act 1992 (c.4).
The Social Security (Miscellaneous Amendments) (No. 3) Regulations 2007 SI 1749

These Regulations amend the following in consequence of changes to the tax system in relation to pensions schemes made by Part 4 of the Finance Act 2004:
- Income Support (General) Regulations 1987 (S.I. 1987/1967)
- Jobseeker's Allowance Regulations 1996 (S.I. 1996/207)
- Housing Benefit Regulations 2006 (S.I. 2006/213)
- Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 (S.I. 2006/214)
- Council Tax Benefit Regulations 2006 (S.I. 2006/215)
- Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 (S.I. 2006/216)
The Housing Benefit (Loss of Benefit) (Pilot Scheme) Regulations 2007 SI 2202

These Regulations prescribe the rate by which Housing Benefit is to be reduced during the restriction period referred to in section 130B(1) of the Social Security Contributions and Benefits Act 1992. Section 130B was inserted by the Welfare Reform Act 2007.

It provides that Housing Benefit is to be reduced if a former occupier is evicted from his home on grounds of antisocial behaviour under a relevant possession order (as defined in section 130C of the 1992 Act) and other conditions are satisfied, including the failure without good cause to comply with a warning notice requiring the former occupier to take specified action. Housing Benefit will be reduced for the restriction period, which can last up to 5 years.

The Regulations apply only in the pilot scheme areas listed in the Schedule.
The Housing Benefit (Miscellaneous Amendments) Regulations (Northern Ireland) 2007 SR 266

These Regulations amend various Regulations relating to Housing Benefit in Northern Ireland.
The Social Security (Students and Income-related Benefits) (Amendment) Regulations (Northern Ireland) 2007 SR 298

These Regulations amend the Income Support (General) Regulations (Northern Ireland) 1987, the Jobseeker's Allowance Regulations (Northern Ireland) 1996 and the Housing Benefit Regulations (Northern Ireland) 2006 in so far as they relate to students and sums to be disregarded in the calculation of their entitlement to benefit.
The Social Security (Miscellaneous Amendments No. 2) Regulations (Northern Ireland) 2007 SR 306

These Regulations amend the following in consequence of changes to the tax system in relation to pensions schemes made by the Finance Act 2004:
- Income Support (General) Regulations (Northern Ireland) 1987
- Jobseeker's Allowance Regulations (Northern Ireland) 1996
- Housing Benefit Regulations (Northern Ireland) 2006
- Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations (Northern Ireland) 2006
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Section: Housing Benefit & Council Tax

Wrong to Recover Council Tax Arrears

HB Sanctions for ASB will Deter Landlords

Case Law Update

New Regulations

Legal Update

Reporting on May-July 2007

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