An introduction to Council Tax Benefit and Housing Benefit

Basic Rules

Housing Benefit: “ A person is entitled to Housing Benefit if he is liable to make payments in respect of a dwelling in Great Britain which he occupies as his home”

Social Security Contributions and Benefits Act 1992, 130, (1) (a)

Council Tax Benefit: “ A person is entitled to Council Tax Benefit in respect of a particular day….for the day (they are) liable to pay Council Tax in respect of a dwelling of which he is a resident”

Social Security Contributions and Benefits Act 1992, CBA, 131

Consolidation of Council Tax Benefit / Housing Benefit regulations

With effect from Monday 6 March 2006, the consolidated regulations apply:

The Housing Benefit Regulations 2006 (SI 2006/213)

The Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 (SI 2006/214)

The Council Tax Benefit Regulations 2006 (SI 2006/215)

The Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006 (SI 2006/216)

The Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006 (SI 2006/217)

May 2010 1

Council Tax Benefit/Housing Benefit claim

Claims must be in writing (that includes on-line claims) although some Local Authorities may accept telephone claims. We will also require proof of the following:

identity and National Insurance number

income

capital

applicable amount

non dependants

eligible Council Tax and eligible rent

Identity and National Insurance

Claimants and their partner must confirm their identity and state and confirm their National Insurance Number (NINo).

This applies to new claims. But once the claimant/partner has done it once they do not have to repeat it, as identity and National Insurance Number do not change.

Section 19 of the Social Security Administration (Fraud) Act 1997.

For people getting: Pension Credit Income Support Job Seekers Allowance (income based or contributory) Incapacity Benefit Employment Support Allowance

we can accept that they and their partner have satisfied the requirements so long as we have something on file. In most cases this will be notification from External Standard Enquiry Facility or a Department for Work and Pensions printed notification (an award letter or a benefit book). In Job Seekers Allowance (contribution based) or Incapacity Benefit cases, if no amount is claimed for the partner, we must confirm the partner’s identity and National Insurance Number ourselves.

A4/2009 - from 06/04/09, if the partner does not have leave to enter or remain in the UK, the partner does not need to have a National Insurance Number and Council Tax Benefit/Housing Benefit can be awarded.

How can identity and National Insurance Number be confirmed?

May 20102

The claim form asks claimants / partners to submit 2 documents per person for identity and 1 document each for National Insurance Number.

These documents must be originals (not photocopies). If we are not satisfied with proof of identity, or no proof is submitted, we should not award Council Tax Benefit/Housing Benefit.

If they cannot submit proof of their National Insurance Number, or they do not know it, but they have provided their name and date of birth you could check External Standard Enquiry Facility or contact Department for Work and Pensions to search for / allocate National Insurance Number. In this scenario you should award benefit pending a reply from the Department for Work and Pensions.

If we have information on file / computer that can be used to confirm identity / National Insurance Number we should use it.

If they state that they will not apply for National Insurance Number, we should refuse Council Tax Benefit/Housing Benefit.

We can accept documents other than the following but these are what Department for Work and Pensions recommend:

Identity bank statements wage slips from current employer birth certificate driving licence utility bill marriage certificate, divorce/annulment papers passport, Home Office Standard Acknowledgement letter (SAL 1 or 2) Identity card issued by EC/EEA member state, UK Residence Permit benefit award letter from Job Centre Plus, benefit payment book Child Tax/Working Tax Credit award letter

National Insurance Number P45, P60, wage slips tax letter, letter from Department for Works and Pensions, Pension

Service/Job Centre RD3 National Insurance Number card bank statement of a self-employed person paying class 2 contributions

by direct debit benefit payment books

May 2010 3

Income

Disregarded Income

Disregarded income is not taken into account when calculating Housing Benefit/Council Tax Benefit claims, however, we still require proof that these incomes are in payment to the claimant.

Income Support, Job Seekers Allowance (Income Based), Employment and Support Allowance (Income Related), Pension Credit: Guarantee Credit or the income of anyone on Income Support / Job Seekers Allowance (Income Based) / Employment Support Allowance (Income Related) / Pension Credit: Guarantee Credit

Disability Living Allowance, Attendance Allowance

War Widow’s Pension / War Disablement Pension / Guaranteed Income Payments from the Armed Forces or Reserve Forces Compensation Scheme

From 27/10/08 maintenance for children is fully disregarded. Prior to this £15 was if the family premium was in payment.

£10 of a student loan. If claimant/partner is of state pension credit age, do not include.

£15 of Widowed Parent’s Allowance/Widowed Mother’s Allowance

Lone Parent Work Search Premium, Lone Parent In Work Credit, Return to Work Credit

Charitable or voluntary payments

The income of a child/ dependant young person

From 2 November 2009 Child Benefit will be fully disregarded.

May 20104

Weekly Earned Income Disregards (Wages)

single person: £5

couple: £10 (per claim whether or not one or both are working)

carer: £20 (if someone gets Carer’s Allowance and works)

disabled:£20 (if someone gets disability premium and works)

single parent: £25

The highest of the above disregards is applied plus a further disregard of £16.85 if:

Working Tax Credit includes the 30 hour plus element

the claimant or partner is 25 or older and that person works 30 hours or more per week

the claimant is a member of a couple who have at least one dependant child/young person and at least one of the couple works 16 hours or more per week

the claimant is a single parent working 16 hours or more per week

the claimant gets the disability premium because of their disability and the claimant works 16 hours or more per week

the claimant gets the disability premium because of their partner’s disability and the partner works 16 hours or more per week

the claimant or any partner gets the 50 plus element of Working Tax Credit

the claimant or any partner would qualify for the 50 plus element of Working Tax Credit if they applied for it

the claimant is of state pension credit age, meets the conditions for the £20 disregard (disabled/long term sick) and works 16 hours or more per week

the claimant or partner is of state pension credit age, one of them works 16 hours or more per week and that person’s circumstances entitle them to the £20 disregard (disabled/long term sick).

NB: The number of hours worked is an average.

May 2010 5

When calculating a claim we use the claimant and partner’s net income.

Net income = gross income less tax less National Insurance less half of superannuation / pension.

Exceptions to this are:

if a benefit is reduced due to the recovery of an overpayment or the repayment of a Social Fund loan, use the gross amount before the deduction.

If a Child or Working Tax Credit is reduced, due to the recovery of an overpayment, use the net amount after the deduction.

NB: For Child and Working Tax Credit, use the instalment amounts as the amount of income to be used in Council Tax Benefit/Housing Benefit, not the annual award.

Permitted work

Claimants and partners on ESA ( C ), IB, SDA or NI credits for incapacity can do permitted work. If so, a specific higher or lower earned income disregard applies- note 2010/27.

May 20106

Childcare cost offset

We can offset the weekly cost of childcare against earned income.

This offset can be up to:

£175 if one child qualifies or

£300 if more than one child qualifies

NB: These amounts are per claim.

The conditions are:

applicable to child(ren) until the first Monday in September after child’s 15th birthday. (16th birthday if child gets Disability Living Allowance or is registered blind)

applicable to full time work, that is the work must be for 16 hours or more per week.

In the case of a couple, both must work 16 hours or more, or one must work 16 hours or more and the other must be incapable of work, in hospital or prison.

A person can get the childcare cost offset if they move from work to Statutory Sick Pay, Short term Incapacity Benefit, or Income Support. They can offset the child care costs against these benefits, for up to 28 weeks.

If they move from work to Statutory Maternity / Paternity / Adoption Pay, Maternity Allowance they can also offset the childcare costs but there is no 28 week limit.

the childcare provider must be one of the following:

registered with the Scottish Commission for the Regulation of Care.

an out of school hours scheme provided by a school on school premises, or by a Local Authority. The child must be aged 8 or over.

May 2010 7

a childcare scheme on Crown property where registration is not required

a childcare scheme in schools or establishments which are exempt from registration

a child care provider approved by an organisation accredited by the Secretary of State under the scheme established by the Tax Credit (New Category of Child Care Provider) Regulations 1999 (C).

You cannot offset childcare costs if the childcare is provided in the child’s home by the child’s relative.

Low wages

If the wage, after other earned income disregards, is less than the child care cost, any remaining childcare cost can be offset against Child Tax Credit or Working Tax Credit, up to maximum offset of £175/300.

Proof

2 monthly wage slips / 5 weekly wage slips / 3 fortnightly wage slips

evidence of earnings

benefit award letter

tax credit award letter

benefit book

award notification

Average

If a wage (or any income) is different from week to week, use an average over the previous 2 months/5 weeks/3 fortnightly.

Earned income

Overtime, bonuses, tips and commission are included in Council Tax Benefit/Housing Benefit. Capital

May 20108

Capital is the market value of an asset when a claim is made. i.e: what would the claimant / partner get if they sold / cashed in their assets?

If there is a charge to cash in the asset, for example, when selling stocks and shares, 10% is taken off the market value and the remainder is what is used in Council Tax Benefit/Housing Benefit.

Capital: property (other than the home you live in), savings, premium bonds, national savings certificates, stocks and shares and so on.

Deprivation of capital: if we think someone has deprived themselves of capital to get (or to get more) Council Tax Benefit/Housing Benefit, we treat them as still having that capital. Such capital is called notional capital.

Proof: bank books, premium bonds, bank statements, national savings certificates. We do not need to see proof if capital is £6000 or less for working age people or £10000 for state pension credit age people.

Tariff income:

Capital of £6000 or less is ignored.

Capital of more than £16000 means no (main) Council Tax Benefit or Housing Benefit, unless on Income Support / Job Seekers Allowance (Income Based), Employment Support Allowance (Income Related) or Pension Credit: Guarantee Credit.

Between these amounts we assume £1 per week tariff income for every £250 or part of £250 if the claimant and the partner are aged under state pension credit age.

If the claimant or partner are of state pension credit age, £1 per every £500, or part of £500.

From 02 November 2009, the lower limit for people of state pension credit age was increased from £6000 to £10000.

For example: If someone aged 50 had capital of £6501 this would result in £3 per week tariff income.

However, if the person was of state pension credit age the tariff income would be Nil

The lower limit is £10000 for people in: Local Authority Part IV accommodation where meals are not provided, unregistered Abbeyfield

May 2010 9

Homes, accommodation with meals and personal care under an Act of Parliament or Royal Charter.

The capital limits are the same for a couple as for a single person.

Disregarded Capital

Capital is disregarded in the following circumstances:

the capital of anyone on Income Support/ Job Seekers Allowance (income based) / Pension Credit: Guarantee Credit / Employment and Support Allowance (income related)

arrears of Disability Living Allowance, Attendance Allowance are treated as capital and disregarded for 52 weeks (or longer if >5,000)

arrears of Child Tax/ Working Tax Credit are treated as capital and disregarded for 52 weeks.

a self employed claimant’s business assets

certain compensation payments

a life insurance policy not cashed in

for people of state pension credit age, the value of a funeral plan contract

arrears of Pension Credit are treated as capital and disregarded for 52 weeks if Council Tax Benefit/Housing Benefit have already been paid for the same period.

If Council Tax Benefit/Housing Benefit not paid, arrears are treated as income.

The capital of a child / dependant young person

An amount equal to the gross amount of a lump sum paid because the claimant / partner deferred receipt of their State Retirement Pension.

There are other disregarded types of capital.

May 201010

Applicable Amount

The “Applicable Amount” is the government’s view of how much you need to live on each week. The higher your income, and capital, compared to your applicable amount, the less Council Tax Benefit/Housing Benefit you get.

The Applicable Amount is made up of:

a personal allowance, based on your age and whether you are single, or have a partner, and

premium(s), if you qualify for them. Premiums are given to people to meet special needs.

If the claimant / partner gets Income Support or Job Seekers Allowance (Income Based), Employment and Support Allowance (Income Related) or Pension Credit: Guarantee Credit, we do not work out their applicable amount as they will get full Council Tax Benefit/Housing Benefit.

Personal Allowances

single: aged under 25, aged 25 or over

single parent: aged under 18 (Housing Benefit only), aged 18 or over

couple: both aged under 18 (Housing Benefit only), at least 1 aged 18 or over

children: aged 0 to 20th birthday

Premiums

family premium

disabled child premium

severe disability premium

carer premium

enhanced disability premium

disability premium

(bereavement premium)

These are explained in more detail overleaf.

May 2010 11

Family Premium

at least 1 child/young person 2 rates of FP: couple rate for couples and unprotected single parents

and a higher rate for protected single parents. Unprotected single parents get the same rate as a couple where they come off Income Support / Job Seekers Allowance (Income Based) after 06 April 1998, or where they make a new Council Tax Benefit/Housing Benefit claim after 06 April 1998, or their Council Tax Benefit/Housing Benefit claim has a gap after any previous claim after 06 April 1998.

Increased by £10.50 if there is at least 1 child aged under 1 year old

Disabled Child Premium

child is registered blind or child gets Disability Living Allowance

Severe Disability Premium (SDP)

There are 3 conditions to this premium:

person must get Attendance Allowance (AA) or Disability Living Allowance (DLA) Care Component (middle or higher rate) and

no non dependants (except for non dependants on AA or DLA Care (middle/higher), or non dependants who are registered blind) and

no-one gets Carer’s Allowance (CA) for the person.

A single person who meets all 3 conditions gets SDP single rate.

A couple where both meet all 3 conditions get SDP double rate.

A couple, where both meet the first 2 conditions but someone gets CA for one of them, get SDP single rate.

A couple where claimant meets all 3 conditions and the partner is registered blind, get SDP single rate.

Carer Premium

claimant/partner gets Carer’s Allowance (CA) or claimant/partner would get CA but cannot because they get another

benefit

In the case of a couple, if both qualify, they both get the carer premium

If CA stops, the carer premium continues to be awarded for 8 weeks after the date CA stopped.

May 201012

Enhanced Disability Premium

claimant, partner or child gets Disability Living Allowance: Care Component: Higher Rate, and that person is aged under state pension credit age.

Disability Premium

must be aged under state pension credit age. claimant/partner is registered blind or claimant/partner gets

o Attendance Allowance oro Disability Living Allowance oro Working Tax Credit: disability or severe disability element oro Severe Disablement Allowance oro Incapacity Benefit at the long term rate oro Incapacity Benefit at the short term higher rate and is terminally

ill or claimant has been sending sick lines to Job Centre Plus for more than

52 weeks.

Bereavement Premium

claimant is aged at least 55 and under 60 and they are no longer entitled to Bereavement Allowance for a deceased

partner but had been getting BA within the last 8 weeks and they are claiming Council Tax Benefit/Housing Benefit as a single

person. Ceases to exist on 10/04/06, by which time all recipients will have

reached the age of 60

People of state pension credit age

There are separate applicable amounts for people of state pension credit age.

Employment and Support Allowance

Receipt of Employment and Support Allowance (ESA) affects the applicable amount- see separate Employment and Support Allowance course.

May 2010 13

Non dependants

The eligible Council Tax / rent is reduced by a non dependant deduction because we assume that the non dependant(s) contribute(s) to the Council Tax / rent / household costs.

The deductions are set by government and apply regardless of what the non dependant actually contributes, if anything.

Non dependants are people who do not pay rent in their own right, and stay in the property on a non commercial basis. For example: grown up sons and daughters, friends, other relatives.

There is no non dependant deduction if the non dependant is

Aged under 18

a carer provided by a charity/voluntary organisation for whom the claimant or partner is charged

in prison

in hospital for more than 52 weeks

a full time student.

a Youth Trainee or getting a Work Based Training Allowance

a person disregarded for Council Tax purposes. This applies only to Council Tax Benefit. There may be a deduction in Housing Benefit. Such people are: education leavers under 20, students, foreign language assistants, student nurses, apprentices, Severely Mentally Impaired people, carers, members of religious communities, diplomats, members of international bodies or visiting forces.

aged under 25 and getting Income Support or Job Seekers Allowance (Income Based) but in Housing Benefit when they turn 25, a deduction is applied.

Getting a Pension Credit

Council Tax Benefit - getting Employment and Support Allowance (Income Related)

Housing Benefit - aged 18 to 24 and getting Employment and Support Allowance (Income Related) assessment phase. When the non dep moves to ESA (IR) main phase, there is a deduction (because they get the same rate of ESA as a 25 year old).

May 201014

There is no non dependant deduction if the claimant/partner is

registered blind or

gets Attendance Allowance or Disability Living Allowance Care Component

Points to note:

the deduction is based on gross income

DLA and AA are ignored

if a non dependant has savings, use actual interest not tariff income

if the non dependants are a couple, apply the highest deduction that would apply, not 2 single deductions

Eligible Council Tax and eligible rent

May 2010 15

Eligible means the amount of Council Tax and rent used to work out Council Tax Benefit/Housing Benefit.

It may not be the rent that someone has to pay. We may use a lower amount of rent, or in private Housing Benefit: Local Housing Allowance claims, a higher amount.

Eligible Council Tax (main Council Tax Benefit)

the amount after any discount or disabled person’s reduction

the amount after water and sewerage charges. (Water and sewerage charges are ineligible for Council Tax Benefit. This means that you cannot get Council Tax Benefit on these charges. Water and Sewerage charges reduction scheme for people on Council Tax Benefit- see note 2006/14).

Apportionment of Council Tax

Divide the total eligible amount by the number of liable people. For example, 3 flat mates are jointly and severally liable. If 1 claims Council Tax Benefit, Council Tax Benefit is based on a third of the eligible Council Tax. In the case of a couple and a third person all being liable, if the couple claim Council Tax Benefit, their Council Tax Benefit is based on two thirds of the eligible Council Tax.

Eligible Rent

Public sector (council houses): in most cases, the full rent is the eligible amount. A few cases have ineligible services.

Private sector: the rent may contain ineligible services. Some rents are referred to the Rent Officer (who works independently of Local Authorities) who decides if the rent is reasonable or not. From 09/02/04 for most rents that fall within the Rent Officer scheme, we use a Local Housing Allowance set by the Rent Officer as the eligible rent.

Calculation

May 201016

Is the claimant / partner on Income Support / Job Seekers Allowance (Income Based) / Pension Credit: Guarantee Credit?

If yes:

Council Tax Benefit = eligible Council Tax less non dependant deductions.

Housing Benefit = eligible rent less non dependant deductions.

Mrs A gets Income Support. Her eligible Council Tax is £10 per week. She has no non-dependants. Her Council Tax Benefit is £10 per week.

Mr B gets income based Job Seekers Allowance. His eligible rent is £70 per week. He has a non dependant, the deduction for whom is £7.40. His Housing Benefit is £62.60

If no:

Does the claimant / partner have capital of more than £16000?

o If yes, no main Council Tax Benefit and no Housing Benefit.

Is the reckonable income (income including tariff income less disregards) the same as or less than applicable amount?

o Council Tax Benefit = eligible Council Tax less non dependant deductions.

o Housing Benefit = eligible rent less non dependant deductions.

May 2010 17

Is the reckonable income greater than the applicable amount?

o Council Tax Benefit = eligible Council Tax less non dependant deductions less 20% of (reckonable income less applicable amount)

o Housing Benefit=eligible rent less non dependant deduction less 65% of (reckonable income less applicable amount)

In Housing Benefit, in any calculation, if Housing Benefit is less than £0.50 per week, no Housing Benefit is paid.

Example:

Mrs C’s eligible Council Tax is £10 per week. She has no non dependants. Her reckonable income is £70 per week. Her applicable amount is £64.30.

Therefore:

eligible CTax £10.00 less non dependant deductions £ 0.00less (£70.00 less £64.30 x 20%) £ 1.14

Council Tax Benefit entitlement = £ 8.86

Example:

Mr D’s eligible Rent is £50 per week. He has no non dependants. His reckonable income is £100 per week. His applicable amount is £91.80.

Therefore:

eligible Rent £50.00 less non dependant deductions £ 0.00less (£100.00 less £91.80 x 65%) £ 5.33

Housing Benefit entitlement = £44.67

May 201018

Effective Dates

What date do you start Council Tax Benefit/Housing Benefit from?

What date do you change Council Tax Benefit/Housing Benefit from?

What date do you cancel Council Tax Benefit/Housing Benefit from?

Start date

Normally, the Monday following the date the Local Authority gets the claim.

Example:

Miss E posts claim on Thursday 8 October 2009. We get it on Monday 12 October 2009.

Council Tax Benefit/Housing Benefit is awarded from Monday 19 October 2009

The date on which a Council Tax Benefit/Housing Benefit claim is made is the date on which the claimant first notifies us (or Department for Work and Pensions for a claim linked to Income Support / Job Seekers Allowance, Pension Credit or Incapacity Benefit), of their intention to claim, provided the actual claim form is received within 1 month (or longer if reasonable) of the form being issued. A phone call determines the date of claim.

Example:

The claimant phones on 11 November 2009 to ask for a claim form. We issue it on 12 November 2009. They return it on 25 November 2009.

Council Tax Benefit/Housing Benefit are awarded from Monday 16 November 2009.

May 2010 19

If claimant / partner is on Income Support / Job Seekers Allowance (Income Based) / Employment and Support Allowance (Income Related) / Pension Credit: Guarantee Credit

If they claim Council Tax Benefit/Housing Benefit from the Local Authority, Pension Service or Job Centre Plus, within 1 month of claiming IS / JSA(IB) / ESA(IR) / PCGC, then Council Tax Benefit/Housing Benefit are awarded from Monday after start of IS / JSA(IB) / ESA(IR) / PCGC entitlement.

Example:

Mrs G claims IS on Tuesday 06 October 2009. She is awarded it from Tuesday 06 October 2009. She claims Council Tax Benefit/Housing Benefit on Monday 12 October 2009.

We award Council Tax Benefit/Housing Benefit from Monday 12 October 2009, the Monday after the start of Income Support entitlement.

If claimant/partner is on Income Support / Job Seekers Allowance (Income Based) / Employment and Support Allowance (Income Related) / Pension Credit:Guarantee Credit

If they claim Council Tax Benefit/Housing Benefit within 1 month of the start date of their Council Tax liability or rent liability, then Council Tax Benefit/Housing Benefit are awarded from the start of their liability, so long as they are resident from the start of liability.

Example:

Dr H gets JSA(IB). His weekly rent liability started Monday 2 February 2009. He claims Housing Benefit on Monday 16 February 2009.

Housing Benefit is awarded from Monday 2 February 2009.

May 201020

Liability start

If Council Tax Benefit/Housing Benefit are claimed within the same benefit week (Monday to Sunday) as Council Tax / Rent starting, then regardless of whether the claimant / partner are on Income Support / Job Seekers Allowance (Income Based) / Employment and Support Allowance (Income Related) / Pension Credit: Guarantee Credit, Council Tax Benefit/Housing Benefit are awarded from the liability start date, so long as they are resident from the start of liability.

Example:

Ms I’s Council Tax liability begins Tuesday 06 October 2009. She gets Incapacity Benefit. She claims Council Tax Benefit on Wednesday 07 October 2009.

Council Tax Benefit is awarded from Tuesday 06 October 2009.

Hostels

Where the rent charge is daily, so long as the person is resident, Housing Benefit is treated as being claimed from the start of liability, regardless of when the claim is made, even if it is more than 52 weeks / 6 months after the start of liability.

Example:

Claimant moves in to the hostel on Tuesday 14 April 2009. The rent is charged daily. The claimant makes a claim for Housing Benefit on Monday 6 July 2009, requesting Housing Benefit back to Tuesday 14 April 2009.

Housing Benefit is granted from 14 April 2009.

This rule applies to accommodation provided by Local Authorities under their statutory duties to the homeless and under the short term leased scheme, where rent is charged daily (User note 2007/11)

May 2010 21

Claimants/partners of state pension credit age

Any claim for Council Tax Benefit/Housing Benefit is to be treated as made 3 months before it is actually made so long as the claimant or partner were of state pension credit age or over at the start of the 3 month period and they meet the conditions for Council Tax Benefit/Housing Benefit. It is not backdating.

Example:

Granny is 80. She claims Council Tax Benefit on 06 October 2008. We treat her claim as being received on Monday 07 July 2008.

Award Council Tax Benefit from Monday 14 July 2008.

Prior to 06 October 2008, the rules were such that the 3 month period was a 12 month period.

Example:

Granny is 80. She claimed Council Tax Benefit on Tuesday 16 September 2008. We treated her claim as being received on Monday 17 September 2007.

Award Council Tax Benefit from Monday 24 September 2007.

May 201022

Backdating

If the claimant can give a good reason (good cause) for not claiming Council Tax Benefit/Housing Benefit earlier then we will backdate it to the date they would have claimed it. We cannot backdate beyond 6 months prior to the date of request.

Example:

The working age customer makes a claim for Council Tax Benefit/Housing Benefit on 04 August 2008. They submit a request for backdating on 08 October 2008. The maximum period we can go back, assuming they have good cause and meet the conditions, is 6 months. We treat the claim as having been made 09 April 2008 (6 months prior to the date of the request for backdating).

We award Council Tax Benefit/Housing Benefit from Monday 14 April 2008.

Prior to 06 October 2008, the rules changed such that the 6 months period was a 52 week period for working age claimants.

Example:

Customer is awarded Council Tax Benefit/Housing Benefit from Monday 11 August 2008. On Tuesday 26 August 2008 they submitted a letter asking for Council Tax Benefit/Housing Benefit to be backdated for as far back as possible as they were ill for 2 years. Illness is good cause for not claiming earlier.

Council Tax Benefit/Housing Benefit are backdated for the period Monday 03 September 2007 until Sunday 10 August 2008.

May 2010 23

Changes in circumstances

Normally, changes in circumstances affect Council Tax Benefit/Housing Benefit from the Monday after the date of the change.

Example:

Mrs K has a wage increase on Monday 05 October 2009.

This means that her Council Tax Benefit/Housing Benefit are reduced from Monday 12 October 2009.

There are exceptions:

Changes that lead to more CTB/HB (e.g a decrease in income or capital, or the birth of a child).

In such cases, the claimant must notify us of the change within one month of it happening. If they do, we apply the change from (Monday following) date of change. If they take longer than one month, we apply the change from (Monday following) date of them notifying us. If they have a good reason for telling us late, and they tell us within 13 months of the date of change, we should apply change from (Monday following) date of change.

Example:

Claimant’s capital goes down Monday 6 July 2009. They do not tell us until Tuesday 18 August 2009.

We increase their Housing Benefit from Monday 24 August 2009.

If the change is receipt of a social security benefit which leads to more CTB/HB, the effective date to increase CTB/HB is the (Monday after) date of entitlement to the social security benefit - even if the claimant takes longer than one month to tell us.

May 201024

Example:

Claimant gets CTB. On Monday 5 October 2009 they are awarded Disability Living Allowance (Mobility Component) back to Monday 24 August 2009. They notify us on Tuesday 24 November 2009.

We increase their CTB by awarding the disability premium from Monday 31 August 2009.

Changes in rent

A change in rent (regardless of frequency) of an existing dwelling is effective in Housing Benefit from the date of change, so long as we are notified within 1 month.

Changes in Council Tax

Apply change from date of change in Council Tax.

Cancellations

Generally speaking, changes that result in a cancellation of Council Tax Benefit/Housing Benefit are applied from the Sunday after the date of change.

Example:

Mr M’s Income Support ends on Wednesday 07 October 2009. We cancel his CTB/HB from Sunday 11 October 2009.

This means we pay him up to and including Sunday 11 October 2009.

In Council Tax, if the cancellation is due to liability ending, for example, the claimant moves, or dies, Council Tax Benefit is cancelled from the day before the change.

Example:

Miss N moves on Tuesday 06 October 2009. We cancel her CTB from Monday 05 October 2009

May 2010 25

In Housing Benefit, if the claimant dies, Housing Benefit is cancelled from the Sunday after the date of death – if the date of death is a Sunday, Housing Benefit is cancelled from the date of death. But see daily hostels below.

May 201026

In Housing Benefit, if the claimant moves and they get Housing Benefit at the new address, Housing Benefit is cancelled at the old address on the day before they move.

Example:

Dr O moves on Friday 04 September 2009. He gets HB at both old and new address. HB is cancelled at the old address on Thursday 3 September and started at his new address on Friday 04 September, using the appropriate eligible rents for the respective addresses.

In Housing Benefit, if the claimant moves and they do not have a rent liability, or are not entitled to Housing Benefit at the new address, Housing Benefit is cancelled from the Sunday after liability ends (or that Sunday if liability ends on a Sunday).

Example:

Professor P moves out on Friday 4 September 2009. She is not claiming HB at her new address. Her HB is cancelled from Sunday 6 September 2009.

If the change is the end of entitlement to a social security benefit, the date of change is defined as the day after the last date of entitlement. Therefore, if the social security benefit ends on a Sunday then we take it as ending on the Monday (day after). HB/CTB should therefore be cancelled from the following Sunday.

Example:

The claimant’s Income Support entitlement ends on Sunday 8 February 2009. They have won £10 million on the lottery. CTB/HB are cancelled from Sunday 15 February 2009.

May 2010 27

Hostel claims, where the rent is paid daily: any change that brings entitlement to an end is effective in Housing Benefit from that day not the Sunday after.

Example:

Miss Q lives in a hostel and pays rent daily. Her Income Support ends on Wednesday 6 May 2009. She does not want to re-claim HB.

Her HB ends on Wednesday 6 May 2009.

NB: This rule applies to accommodation provided by Local Authorities under their statutory duties to the homeless and under the short term leased scheme, where the rent is charged daily (User note 2007/11).

Abolition of benefit periods / suspension of Council Tax Benefit / Housing Benefit (CTB/HB)

CTB and/or HB are awarded indefinitely, with no end date. You can input an end date if you know entitlement will end, or has ended, for example, Council Tax / rent liability ends, or they have died. However, most claims are awarded indefinitely.

Claimants must still report changes in circumstances to us, in writing. Their claim will be reviewed from time to time.

When a claimant reports a change, if they are still entitled to CTB/HB, but we do not have all the information or all the proof (for example, they have moved from Income Support to work but have not submitted wage slips and proof of any other income/capital), do not cancel CTB/HB, suspend them and ask for the missing information or issue a new claim form. Under the rules a new claim form is not needed, but it is quite often the easiest way to get all the necessary information.

Moving from Income Support/Job Seekers Allowance (Income Based) to work: suspend Council Tax Benefit/Housing Benefit and issue a new claim form (unless you have all the information/proof, including a written declaration that their wage is their only income and they have no capital, if appropriate)

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Changing address: unless you know they will not have CTAX / rent liability at their new address (in which case cancel Council Tax Benefit/Housing Benefit):

If they just get CTB (for example, owner occupiers), cancel it and award it at the new address, assuming income, capital and household composition have not changed.

If they get CTB/HB or just HB, if they have moved to a Housing Association / Co-operative address, so long as you have proof of rent liability at the new address, cancel CTB/HB and award them at the new address

If they get CTB/HB or just HB and the new tenancy is a regulated tenancy / Rent Officer claim / Local Housing Allowance claim, suspend and issue a new claim form.

Claimants have 1 month to submit the necessary information. If they do not reply, de-suspend CTB/HB and cancel them from the appropriate date, either the Sunday after the date of change or in line with Cancellations above.

Local Authority Input Document (LAID)

For new and repeat applications of Job Seekers Allowance, Income Support and Incapacity Benefit, we will be sent a LAID which details the relevant information taken from the claimant.

This is an application for Council Tax Benefit/Housing Benefit therefore we should not send out our claim form. The effective date of the claim is the date of first contact providing the claimant statement is received by the appropriate Department for Work and Pensions / Local Authority office within 1 month of first contact.

Details recorded on the LAID meet verification criteria and we should not seek further proof. We will still need to get proof of rent and non dependants’ income / capital.

There is no claimant signature on the LAID - we do not need it in such cases.

In and Out of Work Process

Job Seekers Allowance customers or lone parents on Income Support moving into work or moving from work to JSA/IS will come under the “In and Out of Work Process”, whereby the JobCentre Plus will be the contact point to accept claims for Council Tax Benefit/Housing Benefit and to accept proof. They will forward the claim (LAID) with necessary proof to us.

If they move into work, they will send us an IWK4 form, which gives us details of the employment. They will ask the customer to send us the necessary proof (Wage slips etc). See Department for Work and Pensions circular A26/2008 for full details.

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Second Adult Rebate (Alternative Maximum Council Tax Benefit)

A type of Council Tax Benefit

2AR is based on the income of second adults.

The income and capital of the claimant is ignored.

Better buy = we should award whichever gives the claimant most money, either main Council Tax Benefit or 2AR.

There must be a second adult. A second adult is a non dependant or a carer who is not a non dep: a carer who lives with the claimant is not a non dep if they look after the claimant or partner and they are engaged by a charitable or voluntary organisation which charges the claimant or partner. Many carers are disregarded so they cannot be second adults. The second adult must not be a disregarded person.

You cannot award 2AR to a claimant who gets rent from someone in the same house where that rent payer is aged 18 or over.

If the claimant has a partner you cannot award 2AR unless one or both of the couple is/are disregarded.

If the claimant is jointly liable for Council Tax (other than jointly liable with a partner), all the liable people must be disregarded, or all but one must be disregarded.

How much 2AR? (April 2009 rates- see current rates in quick benefit guide)

2nd adult (s) on IS / JSA(IB), PC and living with a full 100% of CTaxtime student householder not eligible for main CTB

2nd adult (s) on IS / JSA(IB),/ ESA(IR) / PC 25%

gross income of 2AR less than £175 15%

gross income of 2AR £175 - £227.99 7.5%

gross income of 2AR £228 and above zero

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Eligible Council Tax

Amount after any disability reduction but before any discount. (Water and sewerage charges are ineligible).

Example:

Mr Jones is a millionaire and he is the liable person. He lives with his 20 year old son who gets Job Seekers Allowance (Income Based). He does not get Single Person Discount because of his son.

2AR is only slightly less than SPD. It is less because SPD applies to water and sewerage charges but 2AR does not.

2AR makes up for the loss of the discount caused by the presence of the second adult. The second adult finds it difficult to contribute to Council Tax because of their low income. The second adult can’t get Council Tax Benefit or Housing Benefit.

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Private Sector Housing Benefit

Landlords

Who are landlords?

individuals (Mr Jones)

companies/letting agencies (Littlejohns)

institutions (Church of Scotland)

Local Authorities (The City of Edinburgh Council)

Housing Associations/Co-operatives (Edinvar HA)

There is no definition of landlord in Housing Benefit rules.

Confidentiality - What can we tell landlords?

Housing Benefit rules state that where we pay Housing Benefit to the landlord we must tell them

the amount of Housing Benefit and

the date we will pay from.

Otherwise we use our judgement, bearing in mind Data Protection.

Appeal/dispute rights - What can landlords appeal about or dispute?

A landlord may be an affected person and as such have the right to appeal or dispute about

matters to do with payment direct to the landlord

recovery of an overpayment from the landlord.

Landlords cannot appeal about/dispute the rent used, income, amount of Housing Benefit, start date.

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No Housing Benefit (HB) payable

if it is a contrived tenancy (where Local Authority thinks rent liability created to abuse HB)

if the claimant lives in same property as landlord and landlord is a close relative (close relative = parent, step parent, parent in law, brother, sister, son, son in law, daughter, daughter in law, step son, step daughter, or partner of any of these)

if the tenancy agreement is not on a commercial basis. (There is no definition of commercial in the HB rules).

o A low rent does not necessarily mean that the agreement is not commercial.

o Renting from a friend or a relative does not necessarily mean that the agreement is not commercial.

An agreement is probably not commercial if the landlord would take no action if the tenant broke any parts of the agreement, for example, if they got into rent arrears.

if the landlord is a former partner of the claimant / partner and the claimant / partner live in same property they lived in with former partner who is now their landlord

if the claimant or their partner is responsible for a child (someone aged under 16) of the landlord

if the landlord is a company of which the claimant / partner are an employee or director. (If the agreement has not been set up to abuse HB then it can be paid)

if the landlord is a trust of which claimant / partner is a trustee / beneficiary. (If the agreement has not been set up to abuse HB then it can be paid)

if the landlord is a trust of which claimant / partner’s children are beneficiaries

if the claimant / partner used to own the property they now rent. (If transfer of ownership was the only way to stay there, then HB can be paid. Also, if they relinquished ownership more than 5 years prior to claiming HB then it can be paid)

if it is a condition of the claimant / partner’s job to live there.

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Payment of Housing Benefit

How do we pay?

by crossed cheque or by BACS (direct to bank account)

If we pay to the landlord they get an aggregate payment and a schedule.

Who do we pay - non Local Housing Allowance cases?

We pay the claimant unless we have a reason, from the Housing Benefit rules, to pay the landlord. We pay the landlord if:

the claimant requests us to do so or

it is in the claimant’s interest - this could be claimants who cannot manage their own affairs. Also, take into account if there are rent arrears prior to claiming HB. or

there are rent arrears of 8 or more weeks, except where it would not be in the claimant’s interest to do so. We may pay to the landlord if there are 4 weeks rent arrears or

the claimant has left and there are rent arrears or

there are rent arrears and it would be in the interest of the efficient administration of HB. Send first payment only to claimant but in the name of the landlord. If the first payment is for more than 4 weeks, pay it to the landlord.

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Who do we pay - Local Housing Allowance (LHA) cases?

We pay the claimant unless we have a reason, from the HB: LHA rules to pay the landlord. We cannot pay the landlord simply because the claimant requests us to do so. We will in most cases pay the claimant.

We can pay the landlord if:

we consider the claimant is likely to have difficulty in managing their affairs. The claimant can submit proof from an independent source that they are unable to manage their affairs (e.g social worker, doctor) or if the claimant gives a reason for being vulnerable we can accept this. (Such claimants used to be called “vulnerable” in Department for Work and Pensions guidance. Now, under the national scheme, the term “safeguard” is used - “pay the landlord on safeguard grounds”).

If the claimant or landlord state vulnerability but do not give a reason we should issue the standard form for vulnerability. If this is not returned within 14 days, assume vulnerability and pay to the landlord.

Suspend HB pending any investigation into vulnerability or

we consider that it is improbable that the claimant will pay their rent. In this context, we have agreed that where a claimant has missed 1 month’s rent and the landlord notifies us of this, in writing, we should carry out the following:

Note:o if a landlord contacts us before the 17th of the month, advise

them to contact us on or after the 17th as this will allow time for the cheque to clear and the claimant to pay the landlord.

o If after the 17th the landlord advises us the claimant has still not paid the previous month’s rent, a verbal statement from the landlord is acceptable to initiate the following. The landlord should follow it up in writing.

This must be done as a priority to avoid a further cheque being issued to the claimant and further rent arrears building up.

o immediately suspend HB so that no further payments are made

o write to the claimant to advise them of the alleged arrears o the claimant has 14 days to respond

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o if the claimant does not respond in 14 days, or they do respond and confirm they have spent the money on something other than the rent

o desuspend HB and pay to the landlord.

This is to stop abuse of the LHA scheme and to stop it being brought in to disrepute.

If the Housing Benefit is greater than the rent, we can pay all, or part, of the extra amount above the rent to the landlord to clear the arrears, but only with the agreement of the claimant.

If there is doubt concerning rent arrears (the landlord says there are rent arrears and the claimant denies this) and there is no proof readily available, HB should continue to be paid to the claimant in line with the aims of the LHA scheme.

Also, take into account rent arrears prior to claiming HB or

o the claimant has rent arrears of 8 or more weeks. We may pay to the landlord if there are 4 weeks rent arrears or

o deductions are being made from Income Support or Job Seekers Allowance to pay rent arrears, direct to the landlord

we feel it is appropriate to pay the first cheque to the landlord, for example, the cheque may be for a large amount. In monthly / 4 weekly claims, pay the first payment in the name of the landlord but to the claimant’s address. If the claimant has paid the rent they can get back to us with proof and we will cancel and replace the payment in their name. If they have not paid the rent they should pass the cheque to the landlord. If the first payment is for more than 4 weeks, pay it to the landlord.

If a customer has always had HB paid to the landlord, then they ask for HB to be paid to them as they are moving, refuse the request as HB is not to be used to cover a deposit- deposits are a separate issue between the tenant and the landlord.

If the Housing Benefit amount is greater than the rent (LHA is greater than the rent) and we are paying the landlord, we cannot pay the landlord an amount that is greater than the rent and any rent arrears. In that case we would pay the landlord up to the rent and (with the claimant’s consent) rent arrears, and pay the claimant the balance.

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Example:

We are paying HB to the landlord because we reckon the claimant cannot manage their own affairs. They are on Income Support. Rent is £70 per week. HB = LHA of £80. We pay the landlord £70 and claimant £10.

When do we pay Housing Benefit?

Housing Benefit is paid at the end of the period it relates to, for example, every month at the end of that month. This is called payment in arrears. It is to avoid overpayments.

Payment frequencies

We should pay Housing Benefit in the same frequency as the rent is paid, as far as possible.

How quickly should we process a claim?

We should process a claim within 14 days of a complete claim being made.

If a claim is incomplete and the missing information is not the claimant’s fault, or it is but they have a good reason, we should make a temporary payment. This is called a payment on account (or interim).

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What is rent?

Rent in its ordinary sense

Violent profits (where the legal right to stay has ended but the person continues there and pays rent)

Houseboat mooring charges, berthing fees, caravan site charges

Crofts and croft land

Eligible services

Note: Housing Benefit cannot pay for deposits

Contractual rent and eligible rent

The contractual rent (the full rent) may not be the eligible rent (the rent used in Housing Benefit). The eligible rent may be less than the contractual rent because:

the contractual rent includes ineligible services

the contractual rent is greater than a Rent Officer decision

the contractual rent is greater than the Local Housing Allowance. In LHA claims the eligible rent may be greater than the contractual rent.

The eligible rent

There are 3 mechanisms to decide the eligible rent, depending on the type of tenancy:

Local Authority decides that, in almost all cases, the rent is reasonable, though there may be ineligible services:

council tenancies,

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regulated tenancies (tenancy starts before 02/01/89),

Housing Association/Housing Co-operative tenancies (so long as they are registered with The Scottish Housing Regulator) and the rent is less than or equal to the appropriate Local Housing Allowance (LHA) / they are not overaccommodated- note 2010/32.

In these cases listed above, the Rent Officer has no involvement

Rent Officer (RO) - the rent is referred to the Rent Officer:

if RO decides the rent is too high, he/she will set a lower rent, which will be the eligible rent for Housing Benefit.

Registered Housing Associations/Co-ops where the rent is greater than the appropriate Local Housing Allowance or they are overaccommodated- see note 2010/32.

The landlord is a registered charity or a non profit making voluntary organisation and they (or someone on their behalf) provides care, support or supervision to the claimant. In such cases refer to RO but do not use Local Reference Rent, Single Room Rent)

Where rent includes meals. Refer to the RO. If the RO decides that meals form a substantial part of the rent, RO will advise Local Authority of eligible rent. We use this figure less standard deduction for meals, unless it is a Single Room Rent, in which case no meals deduction is made. If RO decides that meals do not form a substantial part of the rent, RO will advise us and we will use appropriate LHA.

Hostels

Houseboats, caravans or mobile homes

Local Housing Allowances (LHAs) - The Rent Officer decides the eligible rent but not by individual referrals but by deciding the LHAs. The eligible rent for the claim is the appropriate LHA. Claims that fall under LHA scheme are all claims except those listed above.

May 2010 39

Services

Services are amounts included in the rent to cover things that are not the actual accommodation.

Defined as “services performed or facilities… provided for, or rights made available to, the occupier.”

How do services affect the amount of Housing Benefit (HB)?

If the service is eligible (that is, HB can pay for it), then the service is treated as part of the eligible rent.

If the service is ineligible (that is, HB cannot pay for it), then the eligible rent is reduced by an appropriate amount, except for LHA cases, where services are not relevant.

How do you identify that the rent includes services?

Check the claim form and the lease / tenancy agreement.

How do you decide if a service is eligible or not?

A service is eligible if it:

has to be paid as a condition of living there and

is not listed in the rules as being ineligible and

is not being charged at an excessive price in relation to the service provided.

In all cases we decide if the service is eligible or not.

In RO cases, we decide if the service is eligible or not, but the RO decides how much to deduct for ineligible services.

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In LHA cases, no amount is included or deducted for services as they are not relevant.

The Rent Officer (RO)

is employed by the Scottish Executive, not by Local Authority

makes a number of assessments of the rent

Rent Officer: Individual referrals: pre 09 February 2004 (non LHAs)

Which rents do you refer to the Rent Officer?

Do not refer

council house rents

regulated tenancies (that is, where the tenancy began before 02 January 1989)

Housing Association/Co-operative rents, where the HA/Co-op is registered with The Scottish Housing Regulator and the rent including services (except for services under Supporting People arrangements: general counselling and support, alarms, cleaning of own room or window cleaning) is less than or equal to the appropriate LHA/they are not overaccommodated- note 2010/32.

Claims that fall under the LHA scheme

All other rents must be referred to the Rent Officer.

Timescales

We should refer the rent to RO within 3 working days. The RO should reply within 5 working days, or 25 working days, if they intend to visit property.

When do you refer a rent?

Broadly speaking, when a claim at that address is made, and once a year after that, you should refer a rent even if the contractual rent does not change.

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RO decisions last for 52 weeks. If we already have a RO decision for that property and the decision is less than 52 weeks old and the conditions of let and the family circumstances are the same as the existing referral, we should not refer any new rent, we should use the existing referral. This is because the RO assesses rents and properties, not people, and their assessment is valid for 52 weeks.

In practice, this means:

New claims

refer rent to RO unless existing appropriate referral held.

After that

Refer the rent (even if it has not changed) every 52 weeks.

Change in circumstance

If any of the following changes in circumstances occur, you should re-refer the rent whether or not the existing referral is more than 52 weeks old:

a change in the number of occupants aged 16 or over, where a notional/size related rent was set

a child of the same or opposite sex turns 10 or 16, where a notional/size related rent was set

a change in the condition of the accommodation

a substantial change in the terms of let

RO decision needed that was not needed before

cyclical rent increase

error made in original referral

Over accommodated

If the claimant and their family live in property that is too big for their needs then the eligible rent is reduced to the rent for appropriately sized accommodation.

May 201042

The Rent Officer advises us that the Claim Related Rent is based on a size related rent.

The RO bases his assessment on who we note on the RO referral. Include claimant, partner, children, non dependants, sub tenants. Do not include foster children or children who are only resident now and then as part of a custody arrangement.

1 room is allowed as a bedroom for each of the following:

couple

single person aged 16 or over

2 children of the same sex aged under 16

2 children (of the same or opposite sex ) aged under 10

a child aged under 16

Significantly High Rent

This RO decision relates to the specific property (whereas the local reference rent does not). The RO decides whether or not the rent is reasonable for that property.

Local Reference Rent (LRR)

The RO advises us if the Claim Related Rent is based on a Local Reference Rent (LRR).

LRR = the average rent for properties of the same size in the area.

Because it is an average the LRR does not relate to the quality of the property.

Single Room Rent (SRR)

We must ask RO for SRR if appropriate. RO uses following criteria:

tenant has exclusive use of one bedroom tenant does not have use of any other bedroom tenant has shared use of a room suitable for living in tenant has shared use of bathroom/toilet tenant has shared use of a kitchen

SRR applies to single person aged under 25 and they have no non dependants and

May 2010 43

they have no children and they do not get severe disability premium in Housing Benefit, Income

Support, Job Seekers Allowance (Income Based) and they are not a care leaver aged under 22.

No amounts for ineligible services are taken off SRR.

SRR does not apply to registered HA/Co-ops.Claim Related Rent (CRR)

The RO advises of the Claim Related Rent and tells us if it is based on a significantly high rent or size related determination. RO advises us of CRR and LRR and SRR (if appropriate).

CRR and LRR are net of ineligible services so no deduction is made for ineligible services off CRR/LRR. But if RO advises us that meals are included we reduce CRR/LRR by the standard amount for meals.

The eligible rent is the lowest of the RO decisions.

Rent Officer Schemes

There are currently 4 different RO schemes. The reason is that each time the government have introduced a new scheme to reduce eligible rents, they have protected existing claimants.

02 January 1989Old RO scheme: significantly high rent/size related rent determination.

If the claim was made between 02 January 1989 and 01 January 1996, and there is no break in claim, except for a break of 4 weeks or less, and claimant has not moved.

Regardless of when a claim is made or a tenancy starts (so long as it is deregulated), where the landlord is a registered charity or non profit making organisation providing care, support or supervision, then claim falls under this RO scheme.

02 January 1996If a claim is made between 02 January 1996 and 05 October 1997, eligible rent is LRR plus 50% of difference between LRR and significantly high/size related determination.

New claims, or people who move, or have any break in their claim after 05 October 1997 have their Housing Benefit based on LRR.

07 October 1996SRR applies to claims made on or after this date.

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06 October 199750% top up abolished. Claims based on LRR only.

Local Housing Allowances (LHAs)

The City of Edinburgh Council agreed to be one of several Local Authorities to try out changes to private sector Housing Benefit for Department for Work and Pensions (A Pathfinder Authority). The pilot scheme was from 09 February 2004 to 06 April 2008. The National scheme took effect from 07 April 2008.

If the claim falls under LHA scheme the 2 key changes are:

Do not refer the rent to RO - use LHA

In most cases, pay Housing Benefit to the claimant not the landlord

LHA rates

Will be set by RO every month

Will be published by the Local Authority so people can make choices as to accommodation

Will be the median rent, excluding exceptionally high and low rents

Will be based on areas called Broad Rental Market Areas (BRMAs) - 1 area in Edinburgh called Lothian (4 areas during the pilot)

Will be based on the number of bedrooms appropriate to the claimant’s household. (During the pilot, bedrooms and living rooms were included).

There are LHA rates for: Shared accommodation, 1 room, 2 room, 3 room, 4 room, 5 room.

Size criteria based on the number of occupiers:

1 bedroom for

every adult couple

any other adult aged 16 or over

any two children regardless of sex aged under 10

any two children of the same sex

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any other child

During the pilot, LHA included the living room(s)

Livingrooms

o 1-3 occupiers – 1 living room

o 4-6 occupiers - 2 living rooms

o 7 or more occupiers – 3 living rooms

Ignore the number of kitchens and bathrooms.

Do not include children who come to stay regularly as part of a custody arrangement. Do not include foster children.

Include people who go into hospital

Include non dependants, sub tenants and boarders

Examples:

A couple and their 14 year old child are entitled to 2 room LHA

A single parent, with a boy and a girl aged 7 and 8, would be entitled to a 2 room LHA.

A couple, boy aged 7, girl aged 9 and boy aged 12 would be entitled to a 3 room LHA.

Joint tenants

Joint tenants’ LHA is based on their family’s room needs, including their non deps, sub tenants and boarders

May 201046

Example:

Alice and her brother Adam are joint tenants. James, Adam’s non dep, also lives there. Adam claims Housing Benefit and he is entitled to a 2 room LHA

Single claimants aged under 25

Single claimants, aged under 25, will get the shared accommodation Local Housing Allowance. If they are entitled to the Severe Disability Premium, they get the 1 room rate.

Care leavers aged under 22

They will get the 1 room rate.

Single claimants, aged 25 years and over, and couples with no children

They are entitled to the 1 room LHA so long as they rent a dwelling where the tenant (and partner if he has one) either

has the exclusive use of at least 2 rooms that are either a bedroom or a living room or

exclusive use of 1 room ( bedroom or living room) and exclusive use of a bathroom/toilet and a kitchen/cooking facilities

Examples:

Anna is single, aged 30. She lives alone in a flat with 1 bedroom and 1 living room. She will get 1 room LHA

Amy is single, aged 30. She lives with a flatmate. Both have their own bedroom. Amy will get shared accommodation LHA.

Alex is single, aged 30. He has his own bedroom and his own living room, and shares the rest of the flat with 2 others. He will get 1 room LHA.

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From Monday 6 April 2009, claims have been restricted to a 5 bedroom LHA. Existing claims with 6 or more bedroom LHA will get transitional protection.

Eligible rent

LHA is the eligible rent.

It is subject to non dep deductions

It is subject to the means test (income compared to applicable amount)

No ineligible services are taken off LHA

If LHA is greater than the contractual rent, LHA (subject to non dep deduction and means test) is paid.

In the national scheme, the LHA is restricted to £15.00 per week above the rent. Rent = rent including services (eligible and ineligible), as long as they have to be paid as a condition of occupancy.

In the pilot scheme there was no restriction on the LHA.

Examples:

Annie gets Job Seekers Allowance (Income Based). Her rent is £60 per week. Her LHA is £70. We pay her Housing Benefit of £70. She can do what she wants with the extra £10.

The rent is £70 per week. LHA is £100. Eligible rent for Housing Benefit is £85. In the pilot scheme, eligible rent would be £100.

If LHA is greater then the rent and we pay to the landlord, we only pay up to the rent (any any rent arrears) to the landlord. The excess is paid to the claimant. Get the claimant’s written consent to use excess to pay off rent arrears to the landlord.

May 201048

Examples:

In Annie’s example, we could pay her landlord £60, and pay Annie £10. If she had rent arrears of £30 we could pay her landlord £70 for 3 weeks.

Date of LHA

Use the appropriate LHA when the claim was made, not when you process the claim.

Examples:

Andrew claims Housing Benefit in April 2004. Local Authority processes claim in May, back to April, using the April LHA

Abraham claims HB in October 2004. It is awarded using October LHA. He requests HB to be backdated to April 2004. Local Authority backdates it and uses April LHA, replacing October LHA. Any under/overpayment as a result of any change in LHA should be paid/recovered.

Length of LHA

They last for 1 year from the date of claim, normally.

Example:

David claims Housing Benefit on Monday 16 February 2004 and it is awarded from Monday 23 February 2004. The Anniversary falls on 16 February 2005.

From Monday 21 February 2005, Housing Benefit is based on February 2005 LHA.

Certain changes in circumstances

If there is a certain change in circumstance, the LHA for the month in which the change happens should be used, even if the current LHA is less than 1 year old:

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A change of address

If a change occurs which might entitle the claimant to a different category of LHA (e.g a change in the number of occupiers)

If someone in the household dies, but this does not trigger a change in the number of rooms needed (e.g the death of a partner but see below: Protection)

(In the pilot scheme, a change in rent that was allowed for in the original rent agreement triggers a new LHA)Anniversary date

If there is a change in circumstance as listed above, the new anniversary date for the LHA is a year from the date of the change in circumstance

Transitional Protection

A) People on Housing Benefit on 08 February 2004 whose claim falls under the LHA scheme will be converted to the appropriate LHA.

However, if their LHA is less than their eligible rent at that point, they will be protected until their LHA catches up with their eligible rent at the point of transfer.

Once the LHA catches up or exceeds the eligible rent, the LHA will be applied at the next annual review of the LHA, or earlier if there is a change which means we have to apply a new LHA - see above Certain Changes in Circumstances.

Example:

Joseph is getting Housing Benefit on 08 February 2004 based on a Rent Officer decision of £80.00 per week. His claim falls under the new LHA scheme. The LHA would be £75.00. His claim becomes an LHA one but the eligible rent stays at £80.00 per week.

The LHA increases to £81 in October 2004 but Joseph does not get a new LHA until Monday 09 February 2005. At that point Joseph will get the LHA that applies in February 2005.

B) All claims effective on Sunday 06 April 2008 (the end of the pilot scheme) were reassessed from Monday 07 April 2008. If they were worse off, they get

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transitional protection: the eligible rent will be the amount that applied on 06 April 2008.

Be careful if you are dealing with a claim effective prior to 07 April 2008 (the pilot scheme), the rules were different.

The information below applies to Housing Benefit claims regardless of which eligible rent scheme they fall under

Discretionary Housing Payments (DHPs)

Local Authorities have a discretionary fund called Discretionary Housing Payments which are partly funded by the Department for Work and Pensions. This can be used to help the claimant, in addition to their Housing Benefit, if we feel the claimant requires further financial help to pay their rent.

Even if the claimant knew before they claim that their rent would be restricted, they can still ask for DHP.

Claimant’s options

If a claimant is unhappy with the eligible rent, they can:

look for cheaper accommodation and check out the LHA

try to negotiate a lower rent with their landlord

seek advice from an advice agency: for example, Shelter, CAB.

Request DHP

Appeals against the eligible rent

Claimants cannot dispute / appeal the LHA They can dispute the RO decision, within 1 month, if the claim does not

fall under the LHA scheme (but it cannot go to the Tribunals Service)

Protection

There are 2 situations where, no matter how high the rent, and no matter what the RO decision / LHA is, we cannot restrict the rent:

May 2010 51

death - if someone in the household has died , we cannot restrict the rent until 12 months after the date of death, so long as the claimant stays at the same address.

no Housing Benefit at the start of tenancy - if the claimant could

afford to pay the rent at the start of the tenancy without Housing Benefit, and they, (and their partner), have not had Housing Benefit for any period in the last 52 weeks (at any address), we cannot restrict the rent for the first 13 weeks of the claim. If the partner has had Housing Benefit in the last 52 weeks, then the protection does not apply.

Proof of Rent

Proof of Rent can be a lease, tenancy agreement, or letter from landlord.

The proof should contain:

tenant’s name

claim address

landlord’s name and address

start date of tenancy

amount of rent

rent frequency

date rent is due

details of any services.

The lease / tenancy agreement should be signed by tenant and landlord.

In LHA claims we will use the appropriate LHA, therefore the actual rent level may be irrelevant to the Housing Benefit claim, but we still need to see proof of rent to establish that there is a genuine rent liability.

May 201052

Pension Credits and Council Tax Benefit / Housing Benefit (CTB/HB)

Objectives of Pension Credit

To combat poverty amongst pensioners by means of the Guarantee Credit

To reward people who have made modest provision for their retirement by means of the Savings Credit

To ensure people claim Pension Credit

To modernise the delivery of pensions, removing the stigma and complexities of income related benefits and making receipt more acceptable

They are administered by the Department for Work and Pensions’, The Pension Service (PS).

Pension Credit can be made up of 2 things, Guarantee Credit and Savings Credit, and you can get both or just one of them. They are paid in addition to the state retirement pension.

May 2010 53

Guarantee Credit (GC)

To guarantee a minimum level of income for people of state pension credit age and above.

Extra amounts may be added for people who have

Allowable housing costs (for example, mortgage interests)

Severe disability

Caring responsibilities

Ongoing transitional protection from previous Income Support / Job Seekers Allowance(Income Based)

The standard amount and any extra amount is called the appropriate amount

No amounts for children - they should claim Child Tax Credit

Guarantee Credit (with or without Savings Credit) will give entitlement to full Council Tax Benefit/Housing Benefit (less non dependant deductions), even if the person has capital over £16,000. Just like Income Support (apart from the capital cut off).

The Pension Service will advise of Guarantee Credit details through ESEF (or clerically), just like Income Support.

If a claimant or partner gets Guarantee Credit, all the claimant’s and partner’s income and capital is disregarded.

If Guarantee Credit is less than 10p per week and it cannot be combined with another benefit, it will not be paid but full Council Tax Benefit/Housing Benefit will still be paid.

May 201054

Savings Credit (SC)

This will provide an additional income to people aged 65 and above as a reward for making some provision for their retirement by having for example, a small private pension and/or savings.

In the case of a couple, only one needs to be aged 65+. This is a reward / incentive for people who have made some provision for their retirement in addition to the state retirement pension. For example, by having savings and / or private / works pensions.

Savings Credit is taken into account in full in Council Tax Benefit/Housing Benefit but the personal allowance is increased by the amount of the maximum Savings Credit for everyone aged 65+ even if they do not get it.

No notional Savings Credit.

The Pension Service will advise the Local Authority of the details of Savings Credit.

If the claimant gets Savings Credit and no Guarantee Credit, and the capital exceeds £16,000, there will be no entitlement to main CTB/HB.

If Savings Credit is less than 10p per week and it cannot be paid with another benefit, Pension Service will advise the Local Authority of this and Savings Credit will not be included in Council Tax Benefit/Housing Benefit. The Local Authority must still use Assessed Income Figure supplied by Pension Service.

May 2010 55

Assessed Income Period (AIP)

The idea behind the AIP is to minimise intrusion into people’s private affairs. Therefore, where the claimant or partner is aged 65 or over, and neither are under state pension credit age the claimant’s retirement income (private/works pension, annuities, capital), for the purposes of Pension Credits, will normally be fixed for 5 years (apart from uprating).

This is called the Assessed Income Period and during this period claimants will not have to report changes in such income/capital. At the end of the AIP the Pension Service (PS) will do a review of the Pension Credits, and the details will almost certainly change. The PS will advise the Local Authority of the revised figures and Council Tax Benefit/Housing Benefit will need to be updated.

However, changes to other incomes, such as wages, will affect Pension Credit entitlement and must be reported to the Pension Service.

Claimants must also report certain life events to the Pension Service:

The claimant gets a partner

The claimant ceases to be a member of a couple

The partner becomes 65

The claimant no longer satisfies a condition of entitlement to Pension Credit

An element of retirement income is reduced or stops on a temporary basis

A single pensioner enters a care home other than on a temporary basis

The claimant becomes 65, their partner already being over 65

The Pension Service will estimate increases in works/private pensions. However, if the works pension, savings and so on go down, customers should advise Pension Service and their Pension Credit may go up.

The Assessed Income Period relates to Pension Credits not Council Tax Benefit/Housing Benefit.

See 2008/39 - Pension Service may set a new AIP after 5 years, based on existing information, without a full review. For customers aged 80 and older, Pension Service may set an indefinite AIP.

May 201056

Miscellaneous points

Incomes not defined in the Pension Credit regulations will be ignored in calculating Pension Credits, such as

Payments from family and friends

Cash in lieu of concessionary coal

Charitable payments

Student/educational loans and grants

Children’s income and payments for children, such as maintenance and increases for children paid with certain benefits

No remunerative work rule in Pension Credits. You can work as many hours as you want, unlike Income Support, but the wage is taken into account.

Pension Credit claim dates

Guarantee Credit (or Guarantee Credit with Savings Credit) – the date of CTB/HB claim will be the date of entitlement for Pension Credit providing the CTB/HB claim is made within 1 month of Pension Credit claim.

Savings Credit (no Guarantee Credit) - or no entitlement to Pension Credit - the date of CTB/HB claim will be the date of receipt of the CTB/HB claim at the Local Authority or the Pension Service, whichever is earlier.

Claims should be treated as being made 3 months from the actual date of claim, even if they are not getting Pension Credit, so long as the conditions for Council Tax Benefit/Housing Benefit are met and the claimant or partner was of state pension credit age or older 3 months prior to the actual claim. It is not backdating.

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Any claims for Pension Credit made, will be awarded from 3 months prior to the actual date of claim (if all qualifying criteria are met). Prior to 06 October 2008 the period of award was 1 year before the date of claim.

Example

Granny, aged 80, has been paying Council Tax for years. She claims Council Tax Benefit on Monday 20 October 2008. We treat her as having claimed on Monday 21 July 2008 and award Council Tax Benefit from Monday 28 July 2008.

Pension Credits and Council Tax Benefit/Housing Benefit

Council Tax Benefit and Housing Benefit rules have been changed because of Pension Credits. Even if the person is not entitled to a Pension Credit, or has not claimed, their Council Tax Benefit/Housing Benefit will be assessed under the new rules.

The new rules apply to people of state pension credit age and over. This will include couples when the claimant

And partner are both of state pension credit age or over

Is of state pension credit age and the partner is under state pension credit age

Is under state pension credit age and the partner is of state pension credit age or over

If the claimant, or partner, get Income Support, Job Seekers Allowance (Income Based) or Employment and Support Allowance (Income Related), even if they are of state pension credit age or older, the working age regulations apply to them.

May 201058

Applicable Amounts

There are no pensioner premiums but the personal allowance is increased by the amount of the pensioner premium. However they can get allowances as detailed below (amounts are detailed on the quick guide)

Single aged under 65

Single aged 65+

Couple both under 65

Couple (one or both 65+)

Child/young person

Family premium

Baby addition (under1)

Severe disability premium

Enhanced disability (child)

Disabled child premium

Carer Premium

When the claimant/partner turns 65 the personal allowance increases by the amount of the maximum Savings Credit (even if they do not get it). This is to ensure that Savings Credit, which is fully reckonable in CTB/HB, is not clawed back by a reduction in Council Tax Benefit/Housing Benefit.

Even if the customer does not get Pension Credit the new applicable amounts will apply to their Council Tax Benefit/Housing Benefit.

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Capital

Cut off point of £16,000 still applies to main Council Tax Benefit/Housing Benefit, except if entitlement to Guarantee Credit exists, in which case all capital is disregarded. (No upper limit for capital for Pension Credits)

Capital at or below £10,000 (£6,000 prior to 02/11/09) is ignored (£10,000 for people permanently in care homes / Abbeyfield Society homes)

Tariff income is £1 per week for every £500 (previously £250) or part £500. (For under state pension credit age it remains at £250)

2 new capital disregards:

An amount equivalent to any lump sum payment made to the claimant/partner in respect of a personal injury

The capital value of funeral plan contracts

Where Savings Credit is in payment (people aged 65+), Local Authority must use the Pension Service’s assessment of capital.

If someone is on Savings Credit only (no Guarantee Credit) and their capital subsequently exceeds £16,000 they must advise Local Authority and Council Tax Benefit/Housing Benefit would be stopped.

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Income

Income to be taken into account in Council Tax Benefit/Housing Benefit is specified in the regulations. Income not specified will be ignored.

For example, use:

Retirement Pension, Incapacity Benefit, Severe Disablement Allowance

Earnings, including statutory sick/maternity/paternity/adoption pay

Working Tax Credit

Works and private pensions

Assumed income from capital (tariff income)

Most social security benefits

Annuities

War widows and war disablement pensions (but fully disregarded under our local scheme)

Maintenance (but not maintenance for children)

Payments from boarders

Do not use:

Voluntary / charitable payments

Student income

Certain social security benefits, like Attendance Allowance and Disability Living Allowance (you will need to input AA and DLA on the computer to ensure the correct amount of CTB/HB)

Children’s income or payments made in respect of children such as maintenance or increases for children in Retirement Pension, Incapacity Benefit, Severe Disablement Allowance, Maternity Allowance, Carer’s Allowance, Industrial Injuries Benefit, Child Benefit, Child Tax Credit (CB and CTC disregarded from 04/04/05)

Apart from AA and DLA, remove other incomes from the claim. Such claims should be very rare

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Earned Income Disregards

Lone Parent £25

Special jobs (for example, part time fire fighters) £25

Carers £20

Disabled £20

Couple £10

Single £ 5

Other income disregards

War widow and war disablement pensions full

Maintenance and family premium in payment full

Widowed Mother / Parent’s Allowance £15

Income from subtenants £20

May 201062

Assessed Income Figure (AIF)

The Assessed Income Figure is the Pension Service’s assessment of the pensioner’s income and capital. The term “Assessed Income Figure” is not used in the regulations.

Where the claimant, or partner, is 65+, and they are entitled to only Savings Credit but not Guarantee Credit, the Pension Service will provide the Local Authority with an Assessed Income Figure. The Local Authority must use this figure as the income / capital for Council Tax Benefit/Housing Benefit. The idea is to minimise the effort involved for the customer. The Local Authority can use its own assessment if there is a delay in getting the Assessed Income Figure but the Pension Service should provide Local Authority with the Assessed Income Figure within 2 days of calculating it.

In a small number of cases the Local Authority must modify the Assessed Income Figure.

Local Authority must modify the Assessed Income Figure:

To take into account the Savings Credit

To apply Council Tax Benefit/Housing Benefit disregard if it is more generous than the Pension Credit disregards:

- £25 lone parent earned income disregard (£20 in Pension Credit)

- full maintenance (family premium) (£0.00 in Pension Credit)

- childcare charges (£0.00 in Pension Credit)

- 16/30 hour element in Working Tax Credit (£0.00 in Pension Credit)

- full disregard of War Widow / Disablement Pensions (£10.00 in Pension Credit)

To use a non dependant’s income where we treat the non dependant as the claimant

To include the income of a partner who is not included in the Pension Service calculation, e.g. due to the absence of the partner abroad when Pension Credit rules remove the partner earlier than CTB/HB

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In Council Tax Benefit/Housing Benefit claims where an Assessed Income Figure is used, the Local Authority will not need to see proof of income or capital that is included in the AIF. However, we will still need to see proof of all income / capital in non AIF Council Tax Benefit/Housing Benefit claims:

Aged state pension credit age to 64 , not getting Guarantee Credit

Aged 65+, not getting Guarantee Credit, not getting Savings Credit, either they have not claimed or they fail to qualify.

Even if the Local Authority has an Assessed Income Figure, the customer must still report to the LA if their capital goes above £16,000. If they are not on Guarantee Credit, main Council Tax Benefit/Housing Benefit would be withdrawn.

The Pension Service assessment of income / capital is just as detailed as the Local Authority’s.

If the claimant claims Savings Credit but fails to qualify and the Pension Service sends us an Assessed Income Figure, we do not need to use it. We need to see proof of the claimant’s income/capital. Do not input the Assessed Income Figure on I world.

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Claimants not entitled to Pension Credit

If a pensioner claims Pension Credit but is not entitled to it, the Pension Service will pass details of income and capital (Assessed Income Figure) to the Local Authority. However, the Pension Service may not confirm the details. The Local Authority may use the details but they will be accountable for any overpayments that occur due to any errors in such information. In such cases we should apply the same standards of evidence that apply to all claims, whether the customer is a pensioner or not.

In cases where there is no entitlement to Guarantee Credit or Savings Credit, the Local Authority must make its own decision on income and capital, both in terms of proof and calculation.

Proof of identity and National Insurance Number

Claimants getting Pension Credit are exempt from having to prove their identity / National Insurance Number, if we have a Pension Credit notification on file. They have already done it for the Pension Service so there is no need for them to do it for us.

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Changes of circumstances

When the claimant gets both Pension Credit and Council Tax Benefit/Housing Benefit, they will be required to report most changes to the Pension Service, not the Local Authority. The Pension Service will advise the Local Authority if relevant.

Any change reported to the Local Authority which is not Council Tax Benefit / Housing Benefit specific should be referred to the Pension Service using NHB7.

CTB/HB specific would be a rent increase

CTB/HB non specific would be an increase in works pension

The Local Authority should not amend Savings Credit or an Assessed Income Figure until the Pension Service has advised the Local Authority of change to these figures. However, the Local Authority should amend any income not included in the Assessed Income Figure.

If the Local Authority has information that might affect Savings Credit or the Assessed Income Figure, they should pass it to Pension Service.

Any change in Pension Credit/Assessed Income Figure (except for changes caused by late notification by the claimant to Pension Service) that causes a reduction in Council Tax Benefit/Housing Benefit, will take effect from the Monday following the day Pension Service advise Local Authority of change.

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Council Tax Benefit / Housing Benefit specific changes

The claimant must report such changes directly to Local Authority:

Guarantee Credit or Guarantee Credit with Savings Credit changes to the tenancy , including changes in rent (not council house

rents)

changes to non deps

absence from home that is likely to be more than 13 weeks

Savings Credit only cases changes to the tenancy, including changes in rent (not council house

rents)

absence from home that is likely to be more than 13 weeks

changes to household composition and non deps

changes to Child Tax Credit

changes to Child Benefit

capital exceeding £16,000

changes to the income and capital of partners not included in the

Pension Credit claim

May 2010 67

Effective date for changes of circumstances in Pension Credit/Assessed Income Figure to be applied to Council Tax Benefit/Housing Benefit

Increase in PC/AIF

leads to increase in CTB/HB

Monday of week in which Pension Credit/Assessed Income Figure is increased - the date of change used by Pension Service to amend Pension Credit/Assessed Income Figure. Go back to effective date of increase in Pension Credit/Assessed Income Figure.

leads to decrease in CTB/HB

Monday after the date Pension Service notifies Local Authority.

Decrease in PC/AIF leads to decrease in CTB/HB

If claimant failed to tell Pension Service on time of a change, Monday of week PC/AIF reduced. Go back to effective date of reduction in Pension Credit/Assessed Income Figure.

In any other case, Monday after the date Pension Service notifies Local Authority

leads to increase in CTB/HB

Monday of week PC/AIF reduced. Go back to effective date of decrease in Pension Credit/Assessed Income Figure.

PC/AIF awarded leads to decrease in CTB/HB

Monday after date Pension Service notifies Local Authority

Guarantee Credit awarded leads to increase in CTB/HB

Monday after date Guarantee Credit is awarded from. Go back to start date of Guarantee Credit.

The current rules apply for people on Pension Credit who have a change relating to Council Tax Benefit/Housing Benefit alone, and to people of state pension credit age not getting Pension Credit.

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Changes of circumstances relating to non deps

This special rule applies only where the claimant or partner is 65+ and only applies where it is a change of circumstance. A new claim with a non dep there already would have a non dep deduction applied immediately.

Where a non dep moves in or has an increase / change in income such that the non dep deduction increases. The effective date to reduce Council Tax Benefit/Housing Benefit is 26 weeks after the day the non dep moves in / has an increase/change in their income.

If the change is a Monday, reassess Council Tax Benefit/Housing Benefit from a Monday, 26 weeks later. If not a Monday, reassess from the Monday following, 26 weeks later.

If the arrival of a non dep means the severe disability premium has to be removed, it should be removed immediately. There will be no non dep deduction because the claimant gets Attendance Allowance / Disability Living Allowance. If the claimant or partner stops getting AA / DLA, a deduction should be applied immediately.

If the non dep moves out before the 26th week, then no deduction is applied.

If the non dep has an increase in their wage / income during the 26 week period, the deduction to be applied is the one based on their income in week 27.

Increases in existing non dep deductions as a result of April uprating are applied from the April date.

A non dep aged 17 (no deduction) who turns 18: the deduction is applied immediately.

Changes to non deps should be reported to Local Authority. To Pension Service if housing costs (for example, mortgage interest repayments) in their Pension Credit assessment.

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Local Authority Claim Information w.e.f. 03 November 2008

When they claim their Pension Credit by telephone, customers can also claim Council Tax Benefit / Housing Benefit.

The Pension Service will send us Local Authority Claim Information (LACI) (the details needed for Council Tax Benefit/Housing Benefit). The ETD document advising us of the details of the Pension Credit claim / Assessed Income Figure will be sent to us separately.

The Pension Service will issue private tenants a separate form for the rent details.

Non dependant deductionsIf a non dependant gets Pension Credits there is no non dependant deduction (even if they are working).

Arrears of Pension Credit Arrears of Pension Credit are treated as capital and disregarded for 52 weeks from the date of receipt. However, if Council Tax Benefit/Housing Benefit have not yet been paid for the period of the arrears, the Pension Credits should be taken into account as income.

May 201070

Claimants moving from Income Support/Job Seekers Allowance (Income Based) because they, or their partner, have claimed Pension Credit

Pension Service will advise Local Authority that IS/JSA(IB) has ended.

The termination notice will state either that IS/JSA(IB) has ended because the claimant has turned state pension credit age/65 and needs to apply for Pension Credit or that a partner of state pension credit age has claimed Pension Credit

We will pay a further 4 weeks of maximum Council Tax Benefit/Housing Benefit, ignoring any income or capital like an extended payment.

The reason for this is to allow time for the Pension Service to calculate Pension Credit entitlement. Even if the Local Authority receives details of Pension Credit before the 4 weeks are ended, the claimant still gets 4 weeks of maximum Council Tax Benefit/Housing Benefit.

Any rent increase or Council Tax increase during the 4 week period will result in increased Council Tax Benefit/Housing Benefit. Likewise any change to a non dep should be actioned, subject to the 26 week delay rule.

Second Adult Rebate

If the second adult gets a Pension Credit , 25% of the eligible Council Tax is met by 2AR

When a dwelling is occupied by a student or students and one or more

people on Pension Credit, 100% is met by 2AR

April uprating

In Savings Credit cases, the Pension Service will advise the Local Authority of revised details, by an individual notice as each Pension Credit case is uprated. The Pension Service will do this each year from December to March.

Appeals

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No Pension Credit in payment - Local Authority processes appeal

Guarantee Credit in payment - Local Authority processes appeal

Savings Credit only in payment – appeal about unmodified Assessed Income Figure - the claimant should be advised to lodge an appeal with the Pension Service. Local Authority should process the appeal to the Appeals Service but it will be treated as out of jurisdiction

Savings Credit only in payment – appeal about a modification to the Assessed Income Figure - Local Authority processes the appeal

Exchange of information between Local Authority and Pension Service

If there is a discrepancy between information held by the Local Authority and the Pension Service, we should contact Pension Service and suspend Council Tax Benefit/Housing Benefit.

If the customer reports Council Tax Benefit/Housing Benefit specific things to Pension Service (for example, changes in rent), Pension Service will pass this to Local Authority

Pension Service will advise Local Authority if Pension Credit ends. Local Authority would reassess Council Tax Benefit/Housing Benefit if they have new information, or suspend it and invite a fresh claim if they do not have new information.

Local Authorities should award payment on account if they are waiting for Pension Service information

May 201072

Recovery of overpaid Housing Benefit and excess Council Tax Benefit

Overpayments of Housing Benefit/Council Tax Benefit can be recovered from Pension Credit (both Guarantee Credit and Savings Credit)

Decision notices Amongst other things, the decision notice, if Savings Credit but no Guarantee Credit, must include:

The applicable amount and how it is made up

The amount of Savings Credit and any Child Tax Credit, Child Benefit or child special allowance

The amount of the Assessed Income Figure

Any modification made by the Local Authority

The amount of the capital if the capital goes above £16,000 during AIP

Students of state pension credit age and over

Any student income (for example, grants, bursaries, student loans (only certain students aged 50+ can get a student loan)) is ignored.

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Pension Credits: key points

Pension Credits started Monday 06 October 2003

They are administered by the Pension Service

A Guarantee Credit and a Savings Credit- you can get both or just one

Guarantee Credit: for people aged state pension credit age and older. To ensure people have a minimum level of income. Replaces Income Support (MIG)

Savings Credit: for people aged 65+. To reward people for making provision for retirement, in terms of having a private/works pension, and/or savings

No capital cut off in Pension Credits

Guarantee Credit gives you full Council Tax Benefit/Housing Benefit

Savings Credit (with no Guarantee Credit) is taken into account in full in Council Tax Benefit/Housing Benefit but the applicable amount is increased by the maximum amount of Savings Credit

In Savings Credit (no Guarantee Credit) cases, the Pension Service will provide us with an Assessed Income Figure which we must use, though we may have to modify it.

Capital cut off of £16,000 in main Council Tax Benefit/Housing Benefit if the customer does not get Guarantee Credit. Assumed income from capital is £1 for every £500 above £6,000 (£10,000 from 02/11/09)

If the claimant or partner are aged 65+, and a non dep moves in or their income increases, the non dep deduction is not applied/increased for 26 weeks

4 week continuing payment of Council Tax Benefit/Housing Benefit when they move from Income Support/Job Seekers Allowance (Inccome Based) to Pension Credit

Customers should report most changes to the Pension Service, not to us

For people of state pension credit age and over, claims to be treated as having been made 12 months prior to actual date of claim- not backdating. From 06 October 2008 12 months reduced to 3 months.

May 201074

For further information:

Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006, SI 2006 No.216

Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006, SI 2006 No.214

The State Pension Credit Act 2002

Statutory Instrument 2003, No.325, Social Security, The Housing Benefit and Council Tax Benefit (State Pension Credit) Regulations 2003

Department for Work and Pensions Housing Benefit and Council Tax Benefit:Pension Credit Handbook (available on Department for Work and Pensions website with other information: www.dwp.gov.uk/housingbenefit )

Department for Work and Pensions circulars A34/2002 (impact on I.T. systems) and A20/2003 (SLocal Authority with the Pension Service)

Department for Work and Pensions circular A16/2008 and SI 2008 No. 2424 for reduction from 12 months to 3 months in respect of the date of claim

www.pensions.gov.uk/pensioncredit

Department for Work and Pensions circular A17/2009 for the change in the lower capital limit from £6000 to £10000 from 02/11/09

Department for Work and Pensions circular A16/2009 for the state pension credit age

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May 201076

Modified cases

In a small number of cases, we must modify the Assessed Income Figure (PCMAIF):

To apply Council Tax Benefit/Housing Benefit disregard if it is more generous than the Pension Service disregard:

£25 lone parent earned income disregard (£20 in PC)

full maintenance (family premium) (£0.00 in PC)

16/30 hour element in Working Tax Credit (£0.00 in PC)

full disregard of War Widow(er)/War Disablement Pension (£10.00 in

PC)

The most common reason for modifying the Assessed Income Figure will be War Pensions.

Non dependants

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As a concession to pensioners

If the claimant or partner is aged 65 or over, even if they do not get a Pension Credit

And a change in circumstance happens which is: a non dependant moves in or has an increase in their income such that the non dependant deduction increases

The non dependant deduction, or the increase in the deduction, is delayed for 26 weeks

Benefits Online

May 201078

Benefits Online is an interactive online Housing and Council Tax Benefit application form that enables users to:

start a new claim

report a change of circumstances

submit and track claims electronically

get a quick estimate of how much benefit they may be entitled to using the online calculator.

It can be used to make a claim directly and claimant’s personal details will be held securely. This is because each application is given a unique PIN number that must be used in conjunction with the person’s surname.

It can also be used by authenticated third parties such as Registered Social Landlords (RSLs) or CAB to submit a claim on behalf of a claimant. Benefits Online can be accessed directly via the Benefits Online website (https://benefitsonline.edinburgh.gov.uk). It can also be accessed by going to the main City of Edinburgh website (www.edinburgh.gov.uk) and selecting the link to Benefits Online.

Online application forms will be deleted from the Benefits Online system after 32 days.

Please note that the status of a claim form submitted in paper format cannot be checked via this service.

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Once you have accessed the Benefits Online website the welcome page shown below will be displayed.

From here you can use the online calculator, start a new claim, report a change of circumstances, submit and track a claim.

May 201080

Am I entitled to Housing Benefit and / or Council Tax Benefit?

To use the online calculator, the customer selects the above option and will be taken to the eligibility questions. By answering the questions presented they will be advised whether or not either of the benefits may be claimed.

On completion of some eligibility questions the option is given to use the calculator or to start a new claim.

The calculator should take 5 to 10 minutes to complete at the end of which an estimate of the amount of benefit that may be awarded is given. However, it should be noted that the calculator is only a guide based on the information provided. The calculator takes into account most, but not all premiums that a customer may be entitled to. It does not take account of all disregards e.g. Child Maintenance.

Customers should always be encouraged to make an application. If the customer proceeds from the calculator straight to making a new claim, some of the details entered in the calculator will be brought forward into the claim application form.

Start, continue or check the status of a claim for Housing Benefit and/or Council Tax Benefit

This option allows the customer to start a new claim, continue with a claim or to check the status of a new online claim form that has been submitted.

If the customer wishes to continue with, or check the status of, a new online claim they must enter the claimant’s surname or family name and that claim form’s unique PIN number.

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Start, continue or check the status of a change of circumstances

This option allows the user to report, or continue reporting, a change of circumstance or to check the status of a submitted change of circumstance form.

If you wish to continue with, or check the status of, a change of circumstance online claim form you will require the surname or family name of the claimant and that claim form’s unique PIN number.

Having chosen the required link the user will be presented with a series of questions. The customer must answer questions as directed. The customer then gets an opportunity to

check what they have input

read & acknowledge a Declaration,

submit the form electronically

print out a summary of the form to be (physically) signed and sent to the

Council.

FEATURES OF BENEFITS ON-LINE

This next section describes some key features of the on-line application.

Mandatory Questions

Questions with an asterisk next to them are mandatory. If information is not supplied an error message is displayed.

May 201082

If the error message is ignored, the application will force the customer to complete the fields later on. (See Section “Error Overview”)

Help Text

On-line help is available throughout the application form. By clicking on an underlined and highlighted word, or phrase, a new window is opened providing help text. There is also a “Help” option at the top of each screen that will provide the user with contact details for the Revenues and Benefits Division.

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Guiding Questions

The first few screens of the calculator and the new claim have Guiding Questions. The answers to these questions enable the “intelligent” application form to guide the customer through those sections of the application form that are relevant to them.

For example, if the question “Do you want to claim Second Adult Rebate?” is answered “Yes”, the customer will not be asked to provide details of his/her income.

The screen below gives an example of Guiding Questions in the calculator section.

Left Hand Navigation (LHN)

An alternative way to move through the application is by using the Left Hand Navigation. The screen shots overleaf show the Left Hand Navigation (LHN) for Claim and Change of Circumstances respectively. LHN appears after Guiding Questions (where applicable) have been answered.

Clicking on a particular LHN section will take the customer straight to the relevant section.

Claim LHN

Change of Circumstance LHN

A brief overview of Claim and Change of Circumstances will follow.NEW CLAIM

The on-line form closely mirrors the layout of the paper form except that the Guiding Questions mean that irrelevant sections are skipped: e.g. if the

May 201084

customer has no capital or savings then they do not need to complete that section.

All customers are taken through the “Benefits and pensions” section as a requirement for the Verification Framework (VF). There are 4 Benefits and pensions screens and the customer must answer Yes / No to each benefit / pension type question.

After completing the main sections in Claim, the customer is lead through 6 key stages described below.

Checklist

The customer is presented with a Checklist which tells the customer what information they need to submit e.g. proof of National Insurance Number and identity, proof of capital etc.

It is based on the answers they have provided in the application form, therefore, the customer will only be asked to provide the information that the Revenues and Benefits Division require to process their application. For example, if the customer has not declared earnings, then the checklist will not request payslips.

The Checklist is repeated at the end which should prompt customers to remember to send in the required information.

Summary

A brief summary of all the information input by the customer is displayed. The customer can amend any of the information provided by selecting “Change Details” underneath the relevant section. This will lead the customer back through the relevant part of the application form. If they have missed out anything they can use Left Hand Navigation to go to any section of the application. If the Summary is correct, the customer should press Next

May 2010 85

Error Overview

This section will only be displayed if the customer has omitted to answer a mandatory question. It lists all the questions that have not been answered. When the customer selects “Fix Error” they are led to the relevant screen to input the missing answer.

This ensures that only fully completed application forms are submitted.

Declaration

The Declaration section is in two parts.

Part One

A question is asked as to whether the person completing the form is the claimant or not. If it is not, then they have to declare who they are.

The customer is also asked if they can print or not. This is important, since a summary their claim needs to be physically signed by them. If they cannot print it will be printed off in the office and sent to them (see p66)

Part Two

The customer is asked to read the Declaration, which mirrors the Declaration on the traditional paper form. They are asked to “sign” the form electronically and confirm that they have understood the Declaration. Unfortunately, this electronic signature is not admissible by the Department for Work and Pensions. W.e.f 19/10/09 we no longer require the customer’s physical signature.

Submission

The customer clicks on the “Submit” button and that sends the form electronically to the City of Edinburgh Council. Submission should take no longer than 30 seconds. A message will appear on screen telling the customer that their application has been received by the Revenues and Benefits Division. See Screen print overleaf.

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This confirmation message means that the form has been captured in the Comino system as a “BOL Benefits Application” or a “BOL Change of Circumstance” process, as appropriate.

Print, Sign and Send

This screen should be printed out by the customer.

However, if the customer indicated in their Declaration that they could not print, then they will not see this screen. Instead, a report will be sent electronically to the Operations Team. The Operations Team will print out and post this section to the customer for signature.

The “Print, Sign and Send” screen contains:

the Checklist (again)

the Summary (again)

boxes which have to be physically signed by the customer.

The customer is asked to sign and send the document along with the proof required. Wef 19/10/09 there is no requirement for a physical signature however requested evidence will still be required.

CHANGE OF CIRCUMSTANCES

The customer will first be presented with a screen which should be completed with their personal details.

The main screen in the Change of Circumstances form is “Change Type”. It presents a “pick list” of a number of types of changes that the customer may want to declare.

If a customer cannot find a change type that matches his / her circumstances, they can select this option at the bottom of the list.

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The customer may report as many changes as they want on the same form but they may only pick one change at a time. See screen shots.

.

After each change has been entered, the customer is presented with an “Overview” screen which gives a summary of any changes entered. As with the main application, details may be amended or removed. The screen print below shows that this customer has entered one change – that someone has moved into the property.

The customer may then either select “Add another change” to return to the “Change Type” screen or “Continue” to complete the form.

There are 4 Key stages at the end of the Change of Circumstances form. The key stages are listed below. They are almost the same as for Claim but there is no separate Checklist screen. The Checklist only appears once in the “Print, sign and send” section. See below.

Overview

Error Overview (only shown if mandatory questions not completed)

Declaration

May 201088

Submission

Print, sign and send

For details on each section, refer to New Claim Section as described in relation to the end of the Claim form.

Wef 19/10/09 there is no requirement for a physical signature however requested evidence will still be required.

COMINO

Application forms are sent to Comino within seconds of being submitted on-line.

The application forms enter Comino as either a:

BOL Benefits application or a

BOL Change of Circumstance document

These documents start processes of the same name.

On entry into Comino, the documents are indexed AUTOMATICALLY to temporary claim and property references.

The Scan Team will pick up the processes and re-index the application forms to existing claims and property references where applicable. When re-indexed they will be allocated automatically to the relevant team’s Group Tray appearing in the Group Tray with a blue Work-tray Comment. See below:

However, please note:

BOL Applications should not be processed on iWorld until the evidence is received.

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The Layout in Comino

The Comino form has been designed to make processing claims as easy as possible. Information from Benefits Online has been grouped into sections that closely mirror the order that information is input into iWorld. It consists of one long page. To view a particular section, use the Scroll Bar on the right-hand side of the page.

Note that the document section shows that the person who created the document was “Internet User”.

Example of “BOL Benefits Application” layout

Most benefits and pensions are displayed in a table, though some benefits, such as Bereavement Allowance and Carer’s Allowance, are not as we require more information about these benefit types. IWorld Codes have been given in some cases. These should be used as a GUIDE only.

Services are also displayed in a table. To save space, ONLY those services that have been answered YES on-line will be displayed.

Example of “BOL Change of Circumstance” layout

Each change is clearly labelled e.g. “Change in Employment: Job started”, or “Change in Employment: Job Stopped”.

Again, as with the main application:-

May 201090

However, please note:

BOL Applications should not be processed on iWorld until the evidence is received.

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VERIFICATION

Guidance is produced by the Department for Work and Pensions (DWP) to provide Local Authorities (LAs) with standards for

The collection of evidence and

Ongoing checks

In Council Tax Benefit (CTB) and Housing Benefit (HB).

The intention is that when Local Authorites adhere to the standards, the amount of fraud and error entering the system will be reduced, and any that does enter will be detected more readily.

It is important that the administration of CTB/HB is secure and fair, and that it provides help where it is needed and that it is vigilant in tackling fraud and error, to ensure value for taxpayers’ money.

The standards

set out the information / evidence that must be collected and verified before CTB/HB are paid and

specify standards of evidence and checks that must be made during the life of a claim.

The emphasis is on finding fraud and error by the use of

data matching and

risk analysis.

This replaces the previous requirement on Local Authorites to review all CTB/HB claims every 60 weeks, with more effectively targeted interventions.

May 201092

New Claims

We must

Collect all information and evidence for a new claim to the standards

Verify all new claims to the standards.

Subsequent changes in circumstances to such claims must be verified to the standards.

Definition of a new claim

A new claim means any Council Tax Benefit/Housing Benefit claim

When there is no current award of CTB/HB. So a claim where the claimant has never claimed before is a new claim. Or a claim where there is a gap after a previous claim. A backdated claim added to link to an existing claim would not count as a new claim.

Made following a change of address to a different Local Authority.

From 06 October 2008, following an extended payment an in work claim is not a new claim, it is a change in circumstances. If someone moves from Income Support/Job Seekers Allowance (Income Based) to a standard claim (no break), the standard claim does not count as a new claim.

.

Reviews

We will

Carry out a number of interventions. Interventions are data matches and risk based reviews

Resolve issues raised by all the data matches or a start a fraud investigation. Within 2 months of receipt

Carry out risk based reviews on live claims which are particularly at risk from fraud or error. The review can be done by any method (for example, phone, office interview) but we will issue a review form.

From 01 April 2008 (see note 2008/10 for full details), we must identify changes in Council Tax Benefit/Housing Benefit for a Performance Indicator called the Right Benefit Indicator.

Changes can be identified from any source (for example: claimant, landlord, review form, DWP). The DWP have not set a target for the number of changes. The idea is to make Local Authorites proactive in monitoring their caseload.

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Changes notified on review

If the change is one that will give more Council Tax Benefit/Housing Benefit then apply it from date of notification to Local Authority – unless you have proof the claimant notified us within 1 month of the date of change, in which case apply it from the date of change.

If the change is one that will give less CTB/HB apply it from the date of change. You may have to contact the claimant to determine the date of change.

If the change is receipt of another benefit that will result in more CTB/HB (for example, Disability Living Allowance), go back to the date the benefit entitlement starts.

Any subsequent changes to such claims must be verified to the standards.

Interventions (Reviews and data matches)

Interventions means

Resolving data matches and

Doing risk based reviews

We get this information from lists of claims provided by Department for Work and Pensions.

Resolution of a data match

The resolution of a data match could be as little as correcting a data entry (for example: a spelling error in a name, a NI number incorrectly input) or doing a full review, including a fraud investigation. A data match is completed when

Any incorrectness that is uncovered is rectified or

A fraud investigation has started or

The reason for the apparent discrepancy has been identified and you have established that the amount in payment is correct.

May 201094

Risk based reviewsHousing Benefit Matching Service (HBMS) run data they get from each Local Authority against a risk scoring methodology developed to identify and prioritise Council Tax Benefit/Housing Benefit claims that produce a high risk rating.

Each month HBMS pass a list of claims to each Local Authority for the Local Authority to review those claims. The methodology calculates an estimated probability of the chances of the claimant having a change in circumstance that reduces benefit entitlement.

A claim on any monthly list does not mean that there has been an undeclared change - and therefore the possibility of an overpayment, or an underpayment. The longer a claim goes without being reviewed, the higher the risk of an undeclared change becomes and the claim rises on the list, increasing the chance of it being selected by Department for Work and Pensions for review.

The purpose of the review is to make sure the claimant gets the correct amount of Council Tax Benefit/Housing Benefit.

Definition of a review

Standard claims – including people of state pension credit age not getting Pension Credit - a check, including confirmation, of the main elements (that is: income, capital, household, eligible amount).

Non standard claims – Income Support, Job Seekers Allowance (Income Based) and Pension Credit (whether Guarantee Credit or Savings Credit, just one of them or both). Do not review the income and capital, but verify they are still on IS / JSA(IB) or Pension Credit, by checking External Standard Enquiry Facility. In the case of Pension Credit: Savings Credit only ensure the Savings Credit and Assessed Income Figure are as they are held on I world. Review the other details: household, eligible amount.

The review is by means of our shorter claim form sent to the claimant.

Verify to the standards all the relevant details (income, capital, eligible amount, household composition and so on) even if they have not changed since the last claim. Do not verify identity and National Insurance Number on review.

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On completion of the review enter the Outcome Date in Interventions Management on I world (see below). This ensures that the claim does not come up on a risk based list until at least

6 months have elapsed for working age claimants (people under state pension credit age)

3 years for pensioners

However a Local Authority can review a claim more often for whatever Local Authority decides is an exceptional circumstance.

Action on reported changes in circumstances, predictive changes, hot line fraud referral, resolving National Fraud Initiative (NFI) matches can count towards meeting our reviews target if a full review is undertaken.

Claimants still have a legal responsibility to report changes in writing.

If a claimant who has recently been reviewed appears on a data match, that data match must be checked as it is a positive indication of potential incorrectness.

Completion of review

The review is complete when

you have established

- that the customer is entitled to their current rate of Council Tax Benefit/Housing Benefit or

- that there has been a change in circumstance and you have actioned it or

Council Tax Benefit/Housing Benefit has been cancelled or

A fraud investigation has commenced.

May 201096

Suspension of Council Tax Benefit/Housing Benefit

Do not suspend CTB/HB just because a claim has come up on the risk based review list provided by HBMS. Appearing on the risk based review list is based on statistical analysis of how the chance of overpayment tends to vary according to a claimant’s characteristics. It does not indicate any reason to suspect that a particular individual is being dishonest.

Further information

When the claimant returns the review claim form, if you require further information or evidence:

Decide if the case needs to be suspended.

Request it, giving them 1 month (this period can be extended if the claimant needs longer and it would be reasonable to extend it).

If they have not replied within 1 month (or longer if appropriate), suspend CTB/HB and write to them to ask for the information/evidence within 1 month (or longer if reasonable).

If they have not replied within 1 month (or longer if appropriate), cancel CTB/HB from the paid to point (Council Tax Benefit only - the next Sunday), or earlier if you decide that entitlement stopped earlier.

The claim form

Claimants in homeless accommodation must submit the full claim form. Claimants in hostels may use the current shortened form, but they must submit the full claim form if they are still in the same hostel from week 14 onwards.

Department for Work and Pensions CTB/HB claim forms are acceptable.

Who can accept documents?

Local Authority staff: this means Revenues and Benefits staff and Services for Communities (Housing) staff

Contractor staff if Local Authority has contracted out CTB/HB

Third parties: this means Housing Associations / Co-operatives

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But the Local Authority remains accountable for the standard of verification carried out by other people.

All documents must be originals, not photocopies.

If you photocopy an original document, ensure that the copy you make is clear and legible. Also ensure that you have clearly indicated on the photocopies that you have seen and returned the original documents.

In the case of passports and identity cards, the face of the person should be visible

For documents posted to us, the Scan team will verify that they are originals, as they do just now. The Reception staff will do this for documents handed in at reception. Likewise, Services for Communities (Housing) staff and Housing Association staff on the fast tracking scheme.

If there is no indication that the original was seen, you must request the original.

R and B officers must request original documents if only copies have been submitted.

The evidence collected and checks made must be clearly and accurately recorded.

Local Authority must record:

Documents are original

The identity of the person who accepted them

The date the document was accepted

The relevant details in the document

It is not enough to record that, for example, an original bank statement was seen. We must record the current balance and any regular deposits or withdrawals. In fact, best of all, we should copy/scan the original document.

May 201098

Exceptions

There may be individual cases where full compliance with the standards is not possible. In such cases, Local Authority must

Be able to demonstrate it has made all reasonable efforts to establish that the facts are more likely than not to be as stated by the claimant

Record its reasons for accepting the lower standard of evidence

Consider each case on an individual basis and not apply blanket exemptions from the standards

Department for Work and Pensions advise that application of the standards should not be used to penalise claimants who do not have certain pieces of evidence.

Home Visits

Taking copies of documents is preferable but that may not always be possible. Visiting officers in the claimant’s house should record

That they have seen the original

Type of document (for example, wage slip)

Name of person it is in respect of

Type of income, capital or whatever

Value and frequency, including “to date” values (for example on wage slips)

Any reference number(s) on it

Date of document

Period/dates it refers to (for example, if it is a wage)

The details noted must meet the standards. For example, do not just note the balance on a bank account, you must also note the transactions in the last 2 months.

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Recording the details of the documents

We must record details of the documents, as explained below: where these details are captured because the original document has been scanned onto Comino, there is no need to record them separately.

If no document has been scanned onto Comino (for example, because it was seen by a Visiting Officer in a claimant’s house) then the details of the document must be recorded.

We should, however, continue our practice of linking the landlord to the property on I world (in Housing Benefit claims) and recording the employment details on I world (in Council Tax Benefit/Housing Benefit claims).

May 2010100

Crosschecking

Crosschecking may identify inconsistencies in the information given by the claimant. It is important to crosscheck a number of areas within the claim.

Crosschecking should be done on new claims, reviews and changes in circumstances.

Recording crosschecks

The Benefits Application process on Comino has been changed to make reference to the crosschecks. You are required to complete this to confirm that you have checked the claim in accordance with the standards, including the crosschecks.

If crosschecking identifies a discrepancy you must record this and the action taken to resolve that discrepancy, as a case report.

Any discrepancy in crosschecking must be recorded and followed up / resolved.

Known future changes

You should record known or expected future changes and review them at that time.

Things like

Annual wage increase

Self employed people every quarter for the first year, then every year

Incapacity Benefit cases for the first year of Incapacity Benefit: weeks 1 to 28 (short term lower Incapacity Benefit), then weeks 29 to 52 (short term higher Incapacity Benefit)

Annual superannuation increases, if not on Pension Credit

Do not mark for future review

Annual increases in state benefits, as we pick them up on mass recalc

Incomes (like works pensions) included in Pension Credit, as by law we cannot amend these figures until advised of a new figure by the Pension Service

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When the time comes for the known change you should issue a review form. This can count as a manual intervention as part of out total interventions target.

In order to bring the case back to your attention to review it, once you have completed the process, move it to the “Future Changes” tray in Comino by creating a future change case report. Note 2006/46 has full details.

May 2010102

Failure to meet the standards

We must ensure that the standards are met before we process the Council Tax Benefit/Housing Benefit claim.

Do not award Council Tax Benefit/Housing Benefit as an interim pending full information / proof to the standards.

For example:

if a claimant submits photocopies of their wage slips, request originals before you process Council Tax Benefit/Housing Benefit.

if the rent evidence is not to the standards (see below), request proof to the standards before you process Council Tax Benefit/Housing Benefit.

Exceptions are:

the first 13 weeks of a hostel claim do not need to be verified to the full standards (see below).

If a claimant does not have 2 months of bank statements and it will cost them to get them, accept proof of the balance and process Council Tax Benefit/Housing Benefit, but make sure you get 2 months of bank statements later on.

Evidence and information from Department of Works and Pensions

We must accept evidence and information from the Department for Work and Pensions. See note 2007/41.

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EVIDENCE OF RESIDENCE AND RENT

Check the claim form to make sure the claimant has moved in. If they have not yet moved in, Council Tax Benefit/Housing Benefit should not be awarded until they have advised they have moved in.

Public sector Housing Benefit

Local Authority should be able to establish all necessary proof of tenancy, rent and residency from its own records.

Private sector Housing Benefit

Evidence of liability to pay rent can be provided in a number of ways:

Lease or tenancy agreement Letter from the landlord or landlord’s agent Rent book

The evidence must provide:

Full name and business address of the landlord or agent Date the agreement started Amount of rent Frequency (weekly, fortnightly, 4 weekly, monthly or whatever) What is included in the rent: fuel, water, meals, other support services,

in particular personal care, general counselling, support, cleaning of rooms and windows, emergency alarms

It is unlikely that a rent book will have all the required information as detailed above.

Record the landlord’s full name- it should be on the lease and it is asked for on the claim form. By full name we mean “John Smith”, not “John” or “Mr Smith”.

May 2010104

If an agent manages the property the claimant may not know the landlord’s address. In that case it is enough to record the landlord’s name and the agent’s name and address.

If a claimant cannot submit an acceptable form of proof of rent, there is a pro forma tenancy agreement that can be given to them, available on Comino.

Leases / Tenancy Agreements from Housing Association / Co-operative tenants must include the details stated above, but we do not need to see the pages that are of no relevance to us, for example details like restrictions on having pets, playing loud music and so on.

Hostels/Homeless (Temporary Accommodation)

We will continue to accept the current proof of rent/residency.

Council Tax Benefit

Confirm liability by reference to the Council Tax records.

Crosschecking residency and rent

Crosscheck rent and residency details against existing benefit records. Check I world to ensure that there is not a live claim for someone else at that address. It may of course be valid to have more than 1 claim at an address, especially in the private sector.

Council Tax records

Check Council Tax Benefit/Housing Benefit against Council Tax records (I world and Comino). The claimant may have submitted other information that confirms or conflicts with their CTB/HB claim. Checks may reveal inconsistencies that need to be followed up.

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EVIDENCE OF HOUSEHOLD COMPOSITION

Identity and National Insurance Number (NINo) Only the claimant and partner require to declare and confirm their NINo, and to confirm their identity. Once the claimant / partner have satisfied us as to identity on their first claim, they do not need to submit further identity/NINo documents for subsequent claims. This does not apply to people on Income Support, Job Seekers Allowance (either contributory or income based), Pension Credit or Incapacity Benefit.

Identity

2 original documents for the claimant and 2 for the partner:

Recent bank statement Wage slips from current employer Birth certificate Driving licence Utility bill Marriage/divorce/annulment papers Passport Home Office letters UK residence permit Benefit award/ tax credit award letter Benefit book

National Insurance number

1 original document for the claimant and 1 for the partner

P45, P60 Wage slip Benefit award / tax credit award letter RD3 National Insurance number card Bank statement of a self employed person paying class 2 NI

contributions by direct debit Benefit book

From 6 April 2009 (A4/2009), if the partner does not have leave to enter or remain in the UK, the partner does not need to have a National Insurance Number, and Council Tax Benefit/Housing Benefit can be awarded. Section leader should send form DCI 1 to Jobcentre Plus to get confirmation of this. Use OO123456A.

May 2010106

Dependants

Documentary evidence to confirm household composition is limited. In most cases the main source of information about dependants will be other social security benefits. The amount of Child Benefit (CB) in payment will be an indication of the number of children.

April 2009 ratesOldest (or only child) £20.00 per week Other children £13.20

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Second Adult Rebate The second adult does not need to verify their National Insurance Number or identity. But the claimant will have to submit proof of the second adult’s income / capital. It may not meet the full standards.

May 2010108

EVIDENCE OF EARNINGS- EMPLOYED EARNERS

We need to see

The last 5 weekly payslips for weekly paid employees

The last 2 monthly payslips for monthly paid employees

The last 3 fortnightly payslips for fortnightly paid employees

If the claimant (or partner) has recently started work and does not yet have the necessary number of payslips, you can award an interim payment on what you have got and either

Ask for a letter from the employer confirming expected earnings or

Ask for the contract to use the annual salary.

Make sure you get the required number of payslips to finalise the claim

Original wage slips are the best form of evidence but we can also accept:

Certificate of earnings A letter from the employer which must give the same details as the

certificate of earnings. The letter must contain the employer’s name and address.

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We must record:

The employer’s name and address (record this on I world as now)

The number of hours worked (mandatory on I world) and the period

Gross income for the year to date

Gross income for the period covered

Income tax for the year to date

Income tax for the period covered

NI deductions for the year to date

NI deductions for the period covered

Occupational pension / personal pension deductions made by the employee

Method of payment (for example, by cash, by cheque, direct to a bank account)

As we will have the claim form and wage slips (or whatever proof is accepted) on Comino, that can be treated as recording the information.

Handwritten or brown envelope payslips are not acceptable. Ask for alternative proof: for example the certificate of earnings or a letter from the employer.

Childcare costs

May 2010110

If a claimant has requested that childminding costs be offset against wages, you must check that the childminder is registered. You can do this on the Scottish Commission for the Regulation of Care’s website

www.carecommission.com

go to Care Services

then Care Services list

Click on Type of Service

The childminder’s name and registration number is asked for on the claim form. Even if the childcare element is stated in the Tax Credit letter, you should still check to see that the childminder is registered.

Severance pay or redundancy

When a claimant has recently left employment, obtain evidence of any redundancy or severance pay.

EVIDENCE OF EARNINGS - THE SELF EMPLOYED

Verifying income from self employed earnings can present a number of problems.

This makes it difficult to specify standards of evidence that can be applied universally to all self employed claimants.

Each claim will need to be treated on its own merits, the aim being to achieve a satisfactory level of confidence in the information being provided. The onus lies with the claimant to demonstrate their earnings from their business.

If they are getting Income Support, Job Seekers Allowance (Income Based), or Pension Credit: Guarantee Credit then you would not need to see proof of their self employed earnings. These cases will be very rare.

If they are getting Pension Credit: Savings Credit you will use the income provided to us by the Pension Service - the Assessed Income Figure - very rare.

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For all other self employed people, ask them to provide some form of accounts.

For those who have been trading more than a year, it is reasonable to assume they will have accounts drawn up for tax purposes.

For others, use other evidence: their own records, no matter how brief these may be. In such cases, the claimant/ partner must complete a self employed pro forma. The information on the pro forma must be substantiated by proof which can come from a variety of sources

- bank or building society statements, both business and personal

- cheque books

- latest income tax assessment

- invoices and receipts

- any other appropriate record

A combination of items, rather than one piece of evidence, is likely to be needed to provide enough detail to establish the level of earnings.

Check the details to make sure the income declared is consistent with the type of work being done, the number of hours declared and local rates for the job.

Recording the evidence

Make sure the following details are recorded

details of the evidence seen and confirmation the documents were original

gross receipts for the period

expenses for the period

full details of the calculation of net income

May 2010112

EVIDENCE OF BENEFITS

Income Support and Job Seekers Allowance (Income Based)

Whilst the onus lies with the claimant to confirm this, you can use External Standard Enquiry Facility. Do not seek proof of other income or capital if the claimant or partner are getting IS or JSA(IB) as their income and capital are disregarded.

However, you will need to confirm AA or DLA: Care if there is a non dep as receipt of these benefits by the claimant/ partner means no non dep deduction is applied.

Other benefits

These can be confirmed in a number of ways:

External Standard Enquiry Facility

Award letter

Current bank or building society statement showing payments of benefit paid by Direct Payment

Benefit payment order book, which must be current and contain uncashed orders (Never ask claimants to post these as they can be delayed or go missing)

Telephone, fax, electronic or written confirmation from Department for Work and Pensions. Written or faxed evidence must be on official stationery and contain the office address and the identity and the contact details of the officer completing it. Record evidence taken by telephone including the identity and contact details of the Department for Work and Pensions member of staff.

Certificate of benefits.

External Standard Enquiry Facility and award letters are the best forms of proof.

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Pension Credit: Savings Credit (PC:SC)

The Pension Service (PS) will provide us with the amount of Savings Credit and the Assessed Income Figure (AIF). We should not seek proof of the claimant’s or partner’s income / capital in such cases as by law we must use the details provided by PS.

If there is a discrepancy between the information we hold and that supplied by the PS, to avoid an overpayment, we should notify them, suspend Council Tax Benefit/Housing Benefit and await a further decision from them. We should, of course, notify the claimant of the suspension and the reason for it.

Post Office card account

The Post Office card account is a simple, interest paying account operated by the Post Office and designed for receiving

Most benefits (but not Council Tax Benefit/Housing Benefit)

State pensions

War pensions

Tax Credits

Wages cannot be paid into this account.

Almost anyone can open such an account.

Customers get a quarterly statement, showing credits and debits and the current balance.

Recording the evidence and checks

We must record

The type of evidence provided, the date it was seen, the fact it is original, who saw it

The type of benefit

Gross amount and how often it is paid

Who the benefit is payable for

May 2010114

Example:

DWP award letter, original seen and returned 15/04/05, by John Steed

Disability Living Allowance: Care Component: Highest: £242.40 per 4 weeks

For Tara King.

In most cases this information will be held by Comino.

May 2010 115

EVIDENCE OF OTHER INCOME

You must verify all income. If the claimant advises that the income is subject to a regular increase you should take a note of this and mark the claim to contact the claimant at that time.

The following are acceptable as evidence of income. Remember: we must see original documents:

Recent payment slips

Award notification (for example benefit award letter, HM Revenue and Customs (previously known as Inland Revenue) Tax Credit award letter, court order notice, Child Support Agency notification.)

Recent full bank statement that shows the amount being paid and its source.

Telephone confirmation from the source of the income (for example, a former employer paying an occupational pension). Record the type of income, amount, frequency, the contact name, their position, their phone number, the name of the organisation.

Fax confirmation from the source of the income. Details recorded as telephone confirmation.

External Standard Enquiry Facility enquiry

Benefit order book. Remember- do not ask claimants to send these in.

There could be other sources of proof.

In all cases you must be satisfied the evidence provided is sufficiently robust to verify the declared income. If it is not, or any doubt arises, seek further evidence and / or make further enquiries.

May 2010116

Disregarded Income

Even if an income is fully disregarded (for example, Disability Living Allowance) we still need to see proof. You should apply the same standards of evidence as you would apply to any non disregarded income.

The only exception to this is that you should not ask to see proof or ask for information relating to payments made under

The MacFarlane Trust

The MacFarlane (Special Payments) Trust

The MacFarlane (Special Payments) (No 2) Trust

The Eileen Trust

The Independent Living Funds

The Skipton Fund

These payments are fully disregarded.

Income from relatives or friends

Sometimes claimants will state they have no income. You must query this with them: ask them how they meet day to day living expenses: the most basic one being food.

If they say that relatives or friends give them money, you must ask them to get a written statement from the relative or friend giving the details: amount, frequency, dates, the name and address of the payer, the name of the claimant.

Treat such payments as voluntary payments - they are fully disregarded.

May 2010 117

Recording the evidence

Record

The type of income being paid (wage, Child Tax Credit and so on)

The type of evidence provided ( payment slip, award notice and so on)

Appropriate reference or account numbers

The amount and frequency of payments

Any foreseeable changes to the amount or frequency of payment

The date of the notification / proof

The effective date of the details

May 2010118

EVIDENCE OF CAPITAL

Capital can be in a variety of forms, for example:

Bank accounts Building society accounts Deposit accounts with other financial organisations Cash National Savings Certificates The Post Office Card Account Premium Bonds Shares Unit Trusts PEP (Personal Equity Plan) ISA (Individual Savings Account) Land, buildings

Note

Only capital that is available to the claimant and partner (even if they would suffer a loss of capital in realising the asset) is taken into account.

You must verify all the capital declared by the claimant, partner and non dependant.

Children’s capital is disregarded so do not seek proof of it.

The actual income from a non dependant’s capital is taken into account as part of the non dependant’s income. The tariff income rules do not apply to non dependant’s capital.

Most non dependants and children do not declare capital.

We do not need to see proof of capital, at or below £6,000/£10,000, or bank statements.

Do not verify the capital of people on Income Support, Job Seekers Allowance (Income Based), Pension Credit: Guarantee Credit as such capital is disregarded.

Do not verify the capital of people on Pension Credit: Savings Credit as we must use the figure provided by the Pension Service. Tariff income is included in the Assessed Income Figure (AIF) provided by the Pension Service.

Main types of evidence for capital

May 2010 119

Current bank or building society statements

Screen prints for internet banking

A letter from the financial organisation detailing

- the type of account- the balance outstanding - any transactions in the last 2 months- the account number

In all the above 3 types of evidence you must see transactions for the last 2 months.

Original documents showing proof of ownership, for example share certificates, Premium Bonds, statements showing dividends, building society passbooks.

Evidence not available

If the claimant does not have a current statement and they have to pay to get one, confirmation of the balance is acceptable. Ask the claimant to forward their next statement. Make sure you get it .If that is all you are waiting for, process Council Tax Benefit/Housing Benefit.

Premium Bonds

If the claimant has a large number of Premium Bonds, you do not need to copy or record all the individual details. It is acceptable to record the total value of the bonds together with the number and denomination of the certificates.

Land and buildings

The property occupied by the claimant does not count as capital. Obtain details of all other property, land owned by the claimant/partner, whether in UK or abroad. Request details and proof of its value and current status, for example is it let out, occupied by relatives, subject to repossession and so on.

If you are not satisfied by the valuation evidence provided by the claimant, you may ask Department for Work and Pensions to do a valuation: See DWP Guidance Manual, Part C, Annex D and E.

Pensioners’ capital

May 2010120

If the claimant or partner is of state pension credit age, then, even if the person with the capital is aged under state pension credit age, we can accept the customer’s word if the capital is cash (money in the house - not in a bank account), premium bonds, or capital bonds.

Recording the evidence

Make sure the following details are recorded:

The type of evidence provided and when the documents were seen

Confirmation that originals were seen

The type of capital held, for example, savings account, current account, shares and so on.

Individual account references and certificate numbers

The value of each type of capital. If we have calculated the value, we must show the calculation.

The total value of all capital held.

HOSTELS

Claimants in hostels are exempt from the requirement to confirm their National Insurance Number, but they should still confirm their identity.

We do not need to apply the full standards to them for the first 13 weeks of their claim. If they move to another hostel the 13 week period starts again.

Initially the claimant can submit the shortened 1 page claim form along with the current standards of evidence.

When creating Housing Benefit on I world, input an end date of the Sunday of the 13th week.

The hostel staff have been advised that, in week 8/9, they must get the full Housing Benefit claim form completed, and provide evidence to full standards. If they do not, Housing Benefit will not be restarted. However, we will continue to accept the current rent proof, even after 13 weeks.

“Hostel” means

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a building -

(a) in which there is provided for persons generally or for a class of persons, domestic accommodation, otherwise than in separate and self-contained premises, and either board or facilities for the preparation of food…,or both and-

(b) which is (i) managed or owned by a registered housing association, or(ii) operated other than on a commercial basis and in respect of

which funds are provided wholly or in part by a Government Department or agency or an Local Authority, or

(iii) managed by a voluntary organisation or charity and provides care, support or supervision with a view to assisting those persons to be rehabilitated or resettled within the community

other than a residential care home, a nursing home or residential accommodation within the meaning of regulation 21(3) of the Income Support (General) Regulations 1987.

HOMELESS / TEMPORARY ACCOMMODATION

The 13 week exemption from the full standards applies only to hostels.

Claimants housed through the Homeless Section, in either Council homeless accommodation or B and Bs, must complete the full CTB/HB claim form (currently they complete a 1 page form) and submit evidence to the full standards.

However, if a claimant cannot submit evidence to the full standards for good reasons (maybe they have had to leave their previous home in a hurry) we can accept evidence that does not meet the full standards. We will accept the current rent proof.

THE LAW

May 2010122

Evidence

The standards of evidence are a set of guidance provided by Department for Work and Pensions. They are not a piece of legislation but they are based on the Council Tax Benefit/Housing Benefit legislation.

All parts of VF dealing with evidence are based on

The Housing Benefit Regulations 2006, regulation 86

The Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006, regulation 67

The Council Tax Benefit Regulations 2006, regulation 72

The Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006, 57

The regulations do not specify the types of documents that are acceptable as proof.

SUSPENDING CTB/HB

Suspension of Council Tax Benefit / Housing Benefit may be an appropriate course of action. The relevant legislation is in

The Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001.

Regulation 11 allows us to suspend where an issue has arisen in connection with the conditions of entitlement or whether a decision should be revised or superseded

Regulation 13 allows us to suspend where there is a failure to furnish information

Regulation 14 provides for termination where there is a failure to comply with regulation 13.

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VERIFICATION - CORRECT OR INCORRECT?

May 2010124

Department for Work and Pensions stats require us to count the number of New claims where verification has identified incorrect information.

We need to count a claim as incorrect “only if benefit would have been put into payment incorrectly”.

This includes claims when verification identified incorrect information even if the claim form is properly completed and either

The claimant failed to declare on the claim form any information which should have been included and which would have an effect on benefit entitlement and the claim could have been determined in the absence of this information.

Any information that would have an effect on a claimant’s entitlement is recorded incorrectly on the claim form, except when this information was correctly recorded on the documentary evidence supplied with the claim form.

Do not include as being incorrect:

Incomplete forms, for example where a Yes/No question has not been answered

Properly completed forms containing errors / omissions that would not affect benefit, for example misspelt employer’s name or postcode.

In a combined claim you need to record Housing Benefit and Council Tax Benefit separately.

May 2010 125

JOBCENTRE PLUS / PENSION SERVICE

Customers can claim Council Tax Benefit/Housing Benefit via The JobCentre Plus when they claim Income Support, Job Seekers Allowance, Incapacity Benefit. In these cases we will get a “Local Authority input document” with details of the claimant’s income, capital and so on. We may need to get proof of rent separately.

Job Seekers Allowance customers or lone parents on Income Support moving into work or moving from work to Job Seekers Allowance/Income Support will come under the “In and Out of Work Process”, whereby the JobCentre Plus will be the contact point to accept claims for Council Tax Benefit/Housing Benefit and to accept proof .

They will forward the claim (Local Authority Input Document) with necessary proof to us. If they move into work, they will send us an IWK4 form, which gives us details of the employment. They will ask the customer to send us the necessary proof (wage slips etc). See DWP circular for full details- A26/2008.

Pensioners can claim Pension Credit by telephone and Council Tax Benefit/Housing Benefit over the phone via the Pension Service. The Pension Service will send us a “Local Authority Claim Information” (the details needed for Council Tax Benefit/Housing Benefit).

PROJECT OFFICER INVOLVEMENT

Project Officers should check, as part of their random sample of cases, that the evidence supplied meets our requirements.

The crosschecks will be recorded as a Set Check on Comino as part of the process. Project Officers, as part of their sample of cases, should check that the crosschecks have been done, and that any discrepancies were noted and followed up and resolved.

COMINO

Benefit Application process amended to make reference to original documents, and crosschecks.

New document type and process: Benefit Interventions Application (Lilac). This process will send the application form to the Scan Team for them to log the returned review form on I world. Then it is sent to the Interventions Team. Part of the process is a Set Check: “record outcome on I world”- in the Interventions Tab.

May 2010126

Statement of Reasons / Recording Decisions

Background

The Council is required to issue, on request, a statement of reasons of a decision which is an explanation of how the decision was reached. This must be done within 14 days of receipt or as soon as reasonably practicable thereafter. The regulations governing this are detailed below:-

The Housing Benefit Regulations 2006 S.I. 213 Regulation 90(4)

The Council Tax Benefit Regulations 2006. S.I. 215 Regulation 76(3)

The Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006. S.I. 214. Regulation 71(4).

The Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006. S.I. 216. Regulation 61(3).

The Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001 S.I. 2001 No 1002. Regulation 10(2) – applies to revisions and supersessions.

If the Council fails to issue a statement of reasons, provide sufficient reasons or is unable to show that it has made every effort to comply with the time scale it may be subjected to penalties. Possible penalties are a finding of maladministration and a compensation payment to the applicant determined by the Ombudsman and payable by the Council.

Unfortunately the above regulations do not define what is to be included in a statement of reasons, only that the objective of the statement is to enable the person, to whom it is sent, to understand the decision we have made.

Ideally we should be able to deal with a Statement of Reasons (SOR) request by sending out the record of our decision. However, decisions are not being properly recorded on Comino at the moment.

There is no right of appeal in relation to statement of reasons because a statement is not a decision. However, they can still appeal a decision in the normal way.

An example of what information is required is detailed overleaf. This decision has been taken from an actual case that has been subject to appeal.

May 2010 127

Example of a Statement of Reasons

May 2010128

Statement of reasons for the decision of 02/04/08

Claimant Example 1No 1 Claim StreetEdinburghEH 3

The request for a statement of reasons was received on 14/05/08.

The decision of 02/04/08 was a supersession of the decision of 06/09/07.

Evidence used to make the decision Date Received

Benefits On-Line from received reporting a change of circumstances – claimant started work 01/03/08

03/03/08

Claimant invited to provide proof of earnings 06/03/08Response received but evidence not provided. Claimant refers to invoices for training shifts.

17/03/08

Letter out requesting evidence as requested in previous letter 18/03/08Pay slips dated 14/03/08 and 21/03/08 received. 28/03/08Enquiry to Department for Work and Pensions – shows that Job Seekers Allowance entitlement ended 06/12/07

31/03/08

Phone call with claimant confirms that Job Seekers Allowance entitlement ended 06/12/07

31/03/08

Findings of fact made on the evidenceThe claimant ceased to be entitled to Job Seekers Allowance from 06/12/07Their entitlement to Job Seekers Allowance ceased because they had started work.

The effect of the findings of fact on benefit entitlementEntitlement to Benefit ended under Housing BenefitR 77 because the claimant started work.Benefit was paid on the basis of a claim for Job Seekers Allowance from 10/12/07 to 31/03/08. The claimant received benefit at a higher level than they were entitled to and therefore there has been an overpayment of benefit.The overpayment of Housing Benefit is £739.74The overpayment of Council Tax Benefit is £120.29The claimant has provided evidence of their pay for the period 14/03/08 to 21/03/08. On the basis of these pay slips they fail to qualify for Housing Benefit or Council Tax Benefit.The overpayment cannot be reduced by underlying entitlement because

This statement of reasons has been prepared by;

Abbreviations that may be usedCouncil Tax BenefitR: The Council Tax Benefit Regulations 2006. S.I. 215Council Tax BenefitP: The Council Tax Benefit (Persons who have attained the qualifying age for state

pension credit) Regulations 2006. S.I. 216D&A: The Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001 S.I. 2001 No

1002Housing BenefitR: The Housing Benefit Regulations 2006 S.I. 213Housing BenefitP: The Housing Benefit (Persons who have attained the qualifying age for state pension credit)

Regulations 2006. S.I. 214

May 2010 129

Claimant Example 1 Date: 20/07/08No 1 Claim StreetEdinburghEH3

Dear Claimant Example 1<Addressee>

Statement of ReasonsProperty address: No1 Claim Street, EdinburghBenefit reference number: 12345678

You made an application on 14/05/08 for a statement of reasons for the Councils decision of 02/04/08.

The statement of reasons is enclosed. If you disagree with the decision detailed on the statement you can ask the Council to revise the decision or you can appeal against it.

If you ask for a revision we will look at the decision again and advise you of our decision. It is recommended to use this option if you think that there is an error in the evidence the Council has used to make its decision.

If you make an appeal the Council will look again at the decision and if we cannot change it in your favour the appeal will be passed to the Tribunals Service to arrange for an independent tribunal. The Tribunal will decide how the law should be applied. The Council recommends that you use this option where you disagree with the way the Council has applied the law.

The date for making an application for a revision or an appeal has passed. You can make an application for the Council to extend the time for making an appeal. We can extend the time up to an absolute maximum of 13 months after the date of the decision. The Council can only do this where you are able to show that you had special circumstances that prevented you from disputing the Council’s decision within the one month allowed.

Last date for making an application for the extension of time is 03/05/09.

If you have any questions about the statement please call me on during the office hours shown on the enclosed 'How to contact us' page.

Yours sincerely

May 2010130

Recording of Decisions

Responsibility for dealing with a statement of reasons was allocated to the assessment teams in 2007. To make the Statements of Reasons and Appeals easier to deal with Officers should be recording the decisions they have made when they process a benefit case.

It has therefore been decided that when processing a benefit we must record our decision and the evidence for it on a case report. This includes details of making a “payment on account”.

The case report should also include whether it was an award, a revision, a termination or a supersession.

Example

You receive a new benefit application from Mr Smith 01/10/08. You write for further information i.e. his income, his wife’s income and lease on 04/10/08. He returns confirmation of his income (5 payslips) on 10/10/08 but not his wife’s or the lease. You send a reminder on 18/10/08 and he returns his wife’s 5 payslips on 23/10/08. You phone him on 25/10/08 to remind him about the lease which he returns on 30/10/08. You processed the claim on 02/11/08.

This would be recorded on the case report as follows:

CASE REPORT

The decision of 02/11/08 was an award of benefit on the claim made on 01/10/08.

Evidence used to make the decision Date ReceivedNew Claim received 01/10/08Proof of claimant’s income received 10/10/08Proof of wife’s income received 23/10/08Lease received 30/10/08

NB. As previously stated a decision for a revision, a termination or a supersession would be recorded in the same way.

It is important to note that as a Revenues and Benefits Officer, you are not simply processing cases. You are constantly making decisions which impact on both the claimant and the Authority. It is essential that the decisions you make are correct and can be justified on appeal.

May 2010 131

Type of decisionMost decisions will be either an award or a supersession.

Award

This is where there is no entitlement in the week before the award of benefit is considered. What we would normally call a new claim. An award can be nil in which case there is no benefit award when entitlement is zero

Examples of this are:-

Fail to qualify, no liability to pay rent or contrived tenancy etc.

Defective Claims are also nil awards and these should be recorded on a decision case report. However it is not enough to say something is missing or the customer did not reply to a request for information. You must record your reasons for making the claim defective.

Example

Mr Jones did not provide proof of income therefore their entitlement could not be determined.

Revision

This is where we have gone back to a previous decision and changed it. We can revise a decision where

A person affected has made an application for a revision within 1 month or such extended time as may be allowed if they make a successful application for an extension of time.

At any time if we find that we have been paying too much benefit or the decision contains an official error.

Example

Customer confirms his income as £1000 pcm however we input it as £1000 pw. When the customer contacts us we must revise our original decision as this was an official error.

May 2010132

Supersession

Essentially this is a change of circumstances. We use it where we find that an award is to be changed because there has been a change since the original decision was made. Remember that we may be limited in the date we can apply a beneficial change from if it is reported more than one month after the date of change.

Example

Mr Smith makes a claim for CTB/HB when he starts to receive Incapacity Benefit and we award CTB/HB correctly on this information. However 6 months later he makes a successful claim for DLA (Care) High rate and the Department for Work and Pensions backdate this to the start date of his Incapacity Benefit. He advises us of this change therefore we must supercede our original decision to incorporate DLA from the CTB/HB start date.

Termination

We may only terminate a claim where;

we have requested additional information, and Benefits payments have been suspended, and The requested information has not been provided, and The claim has been suspended for at least one month, and We are unable to determine the correct amount of benefit entitlement.

(see effective dates training)

If there is an overpayment we will have to show that the claimant was not entitled to the amount of benefit that they received for the period of the overpayment.

This means that we must have evidence that the claimant was not entitled, or that we are unable to determine entitlement from the first date of the overpayment period. We must also determine whether there is any underlying entitlement due to offset the overpayment. Therefore we must send one request to the customer inviting them to apply for underlying entitlement.

NB: If in any case an overpayment is created then an overpayment case report should be created in the normal way, in addition to the above decision case reports.

May 2010 133

Outline Procedure

1. Check that the request is signed by the claimant and that the decision can be identified. If the request is not properly made we must send a standard letter (not duly made) to say so.

2. If the request is properly made ensure that it is indexed to the SOR process on Comino. This will load an SOR pro-forma which will be printed and sent to the claimant. It contains the following sections.

The evidence – a note of the documents or evidence on which the decision was made

The Findings – a statement as to what the evidence means, e.g. End of Income Support because claimant started work means that we must end the benefit claim.

The law – can be a statement of the regulations applied but should, at least, say whether we awarded, revised, superseded or terminated the claim and why.

3. The pro-forma should be sent with a standard covering letter to the claimant and a Housing Benefit6 “How to appeal” leaflet.

SOR Process flow chart

May 2010134

The SOR Application

May 2010 135

To be accepted the application must be;

in writing, and

signed by the claimant, a person affected or a person authorised to act for either of them, and

identify the decision in question or give sufficient information for the decision to be identified, and

does not refer to a decision where we have already given a SOR unless it is apparent that the original SOR did not meet the standards set out in this procedure.

Persons affected

The claimant is always a person affected.

The landlord is only a person affected for decisions on whether benefit is to be paid to them and decisions to recover an overpayment from them as landlord.

Exceptionally, a third party can be a person affected. This applies where the Council has decided to recover an overpayment from a person, who is not the claimant or the claimant’s landlord, because they have misrepresented a material fact and that misrepresentation has led to an overpayment being made. These can apply even where payment of benefit was not made to the person we are recovering the overpayment from.

Authorised to Act

An application for a SOR must be made by the person affected or someone who is authorised to act for them.

A mandate, signed by the claimant, agreeing to the Council sharing information with e.g a Housing Association is not sufficient to require the Council to produce a SOR under the regulatory timescales. However current office procedure states we will still produce a statement.

The Statement of Reason should be issued within 14 days of receipt of the request.

What to do if we cannot accept the application for a SOR

Where an application cannot be accepted we should issue a standard letter to the applicant based on the options below;

May 2010136

The applicant is not a person affected - Advise them of the fact and that we cannot give them an SOR. They should contact the claimant / landlord as appropriate.

The application is not signed

We are unable to identify the decision – The applicant should be advised that we are unable to identify the decision and indicate the information that we would need to identify the decision. e.g 3 decisions of benefit award were made for 2007/08 we must ask the applicant which decision he wishes the SOR for.

The SOR Decision

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A decision is one of the following;

An award of benefit – only applies to new claims.

A revision of a decision – we have decided that a decision we have made must be changed and have made a new decision.

A supersession of an award – there has been a change in a claimant’s circumstances that affects the amount of benefit they are entitled to. This includes a decision that entitlement ends provided the conditions in the regulations has been met.

A termination – we have requested information in relation to an existing award and;

o the claimant has been advised of the information that they must provide, and

o that information has not been provided in the time allowed by the Council, and

o we can show that the information is required to allow entitlement to be determined or checked and,

o payment of benefit has been suspended for at least one month.

We can only issue an SOR on a decision. We are under no obligation to give an SOR where, for example, a person is asking about their Council Tax Benefit for 2007/08 as this is not a decision.

There is no time limit for requesting a SOR.

If the decision in question is more than 13 months ago or we no longer have sufficient information to produce the statement, as detailed below, the applicant must be told that we cannot produce the information as we no longer hold it.

If you find the decision is wrong.

A decision record is required in every case. If there is no case report or the report does not properly detail the decision then the decision is defective and the correct course of action is to revise it.

Therefore, when you are looking at the case, if you find that there is no decision recorded or the decision you have been asked to look at is wrong, then you should revise the decision and issue a new decision notice. You will also need to advise all the persons affected that the decision they asked about has been revised.

The Statement of Reasons

The statement will be completed using a standard form (See Appendix 2). This statement will then be printed and sent to the persons affected. The statement

May 2010138

is divided into three sections:- 1 The Evidence, 2 The Findings of Fact and 3 The Law. This should make it easier to complete and easier for the applicant to understand.

Date of application

This is the date that the application for an SOR was received. You will need this to work out the appeal rights at the end of the form.

Date of the decision

This is the date of the decision we are giving a statement for. It is essential that you are clear about the decision you are producing a statement for. If you cannot identify the decision the applicant is asking about look at notices that have been issued. This can be manual letters or system notifications. Please note that some benefit awards can change because there has been an update to Council Tax discounts / exemptions / liabilities. If you cannot see any change on the benefits side of iWorld / Comino check CTAX.

1. The Evidence

The purpose of this section is to show what evidence we have based the decision on. It is a list of the essential documents on which the decision was made.

Example

Evidence used to make the decision Date Received

Notice was received from the DWP stating that entitlement to JSA ceased with effect from Saturday 31/03/08. The notice did not explain why the entitlement had ended

03/04/08

Payments of benefit were suspended and a letter was issued asking for current income details

17/04/08

Reminder notice issued for information requested 17/04/08

01/05/08

No reply was received at the end of the 1 month period, 18/05/08.DWP Benefits system checked for benefits in payment. No benefits found

18/05/08

2. The Findings of Fact

In this section you record what the evidence means. It should record the dates where relevant.

May 2010 139

Example (Continuing the example above)

Findings of fact made on the evidenceEntitlement to JSA Ended on 31/03/08 and therefore there was a change of circumstances that took effect from Monday 01/04/08.Income details were requested but not provided.The household income from 01/04/08 is not known.

3. The Law

This is a statement of what the law says we have to do with the facts. It is not necessary to cite the regulations / law that have been applied but it can be helpful to do so if you can. Examples of both ways of recording the decision are given below.

Example (Continuing the example above)

The effect of the findings of fact on benefit entitlement - There was a change of circumstance from 01/04/08

The claim is terminated because the Council is unable to determine the amount of entitlement and the claimant has failed to provide evidence of income needed to allow an assessment to be made.

Example (The regulation version) (Continuing the example above)

The effect on your entitlement of the findings of fact- There was a change of circumstances from 01/04/08.

The claim was suspended under D&A 11 pending the provision of evidence to allow the changed benefit award to be calculated and the claimant was notified of the evidence they were to provide.No response was received in the 1 month allowed. The Council was unable to determine the amount of benefit entitlement and so the claim was terminated from 01/04/08 under D&A 14.

Covering letter and Appeal Rights

Once you have produced the SOR we need to issue it to the person/s affected and their representative if they have one. This letter must make it clear to the applicant what appeal rights they have against the decision. The standard letter

May 2010140

is given in Appendix 3 and you should also send the HB6 “How to Appeal” leaflet.

In working out the time available to make an appeal we start to count from the day following the day on which the notification of the decision was sent. If notification is sent from Comino it will be the date of the document. The date notifications are issued through iWorld / Northgate is available from the ‘Correspondence Dataview’.

Example — Less than one month has passed. Date of decision is 01/04/07. Application for a SOR received on 16/04/07. SOR issued 16/05/07. There are 15 days to the date of application. The claimant therefore has another 16 days to appeal so the appeal must be made by 02/06/07. Always work on a 31 day month. Not strictly correct but it saves confusion.

Example — More than one month and less than 13 months has passed. Date of decision 05/02/08. Application 16/04/08. SOR issued 16/05/08. The last possible date the person affected can make an application for the appeal to be accepted late is 06/03/09 plus 31 days (The time between 16/04/08 and 16/05/08) which is 06/04/09.

Example — More than 13 months have passed. Date of the decision 08/03/07. Application for a SOR received on 15/05/08. The last possible date for an appeal was 09/04/08.

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Appendix 1- Letter where SOR application is not duly made

Dear

Statement of ReasonsProperty addressBenefit reference number:

Thank you for your letter of <date of application> asking for a statement of reasons for a decision made by the Council.

Option 1:

I regret that I am unable to provide you with a statement of reasons because you are not a person affected by the decision. If you wish to pursue this matter further you should contact the person you are asking about directly.

Option 2:I regret that I am unable to provide you with a statement of reasons because the application of <date of application> has not been signed. If you still wish to make an application you should sign and return the enclosed copy of your application.

Option 3:A statement of reasons can only be given about a decision the Council has made on your claim for Housing Benefit and / or Council Tax Benefit. I regret that I am unable to give you a statement of reasons for a decision because I cannot identify the decision you are asking about.

If you still wish to make an application please provide the date of the decision you wish to ask about, which will be on the top of your notification.

If you have any questions about the statement please call me on <Tel> during the office hours shown on the enclosed 'How to contact us' page.

Yours sincerely

May 2010142

Appendix 2 - Statement of reasons for the decision of <decision date>

The request for a statement of reasons was received on <date>

<Option 1: The decision was an award of benefit on the claim made on <Date> >.<Option 2: The decision was a revision of the decision of <date> >.<Option 3: The decision was a supersession of the decision of <date>.<Option 4: The decision was that the award of benefit was terminated because the Council needed additional information to decide on the correct benefit entitlement. The information was requested but not provided.>

Enc Evidence used to make the decision Date Received

FindFindings of fact made on the evidence

The The effect of the findings of fact on benefit entitlement

This statement of reasons has been prepared by;<User name field><User title field>

Abbreviations that may be usedCouncil Tax BenefitR: The Council Tax Benefit Regulations 2006. S.I. 215

Council Tax BenefitP: The Council Tax Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006. S.I. 216

D&A: The Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001 S.I. 2001 No 1002

HBR: The Housing Benefit Regulations 2006 S.I. 213

HBP: The Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006. S.I. 214

May 2010 143

Appendix 3 — The SOR Letter

Dear

Statement of ReasonsProperty address: Benefit reference number:

You made an application on <date of application> for a statement of reasons for the Councils decision of <date>.

The statement of reasons is enclosed.

If you disagree with the decision detailed on the statement you can ask the Council to revise the decision or you can appeal against it.

If you ask for a revision we will look at the decision again and advise you of our decision. It is recommended to use this option if you think that there is an error in the evidence the Council has used to make its decision.

If you make an appeal the Council will look again at the decision and if we cannot change it in your favour the appeal will be passed to the Tribunals Service to arrange for an independent tribunal. The Tribunal will decide how the law should be applied. The Council recommends that you use this option where you disagree with the way the Council has applied the law.

Option 1:

An application for a revision or an appeal must be made within one month of the date of the decision. The last date for making an application for a revision or making an appeal is dd/MMM/yyyy.

Option 2:

The date for making an application for a revision or an appeal has passed. You can make an application for the Council to extend the time for making an appeal. We can extend the time up to an absolute maximum of 13 months after the date of the decision. The Council can only do this where you are able to show that you had special circumstances that prevented you from disputing the Council’s decision within the one month allowed.

Last date for making an application for the extension of time is dd/MMM/yyyy

May 2010144

Option 3:

The last date for making an application for an extension of time passed on dd/MMM/yyyy. As the maximum time of 13 months from the date of the decision has passed the Council cannot revise the decision and the Tribunals Service will not be able to consider an appeal. You may still make an application but it is unlikely that it will be possible to change the decision.

If you have any questions about the statement please call me on <Tel> during the office hours shown on the enclosed 'How to contact us' page.

Yours sincerely

May 2010 145

What to do if you disagree with the Council Tax Benefit or

Housing Benefit decision

HB6 – How to appeal

May 2010146

What should I do if I do not agree with the Council Tax Benefit or Housing Benefit decision?

Council Tax Benefit is a benefit to help people on a low income to pay their Council Tax. Housing Benefit is a benefit to help people on a low income to pay their rent. We, the City of Edinburgh Council, are responsible for delivering the Council Tax and Housing Benefit service locally, and run the scheme in line with government regulations.

This leaflet explains what you can do if you disagree with the Council Tax or Housing Benefit decision.

By ‘you’, we mean the person claiming, or someone acting on your behalf. In certain cases, this could be the landlord.

When you have received the decision about Council Tax or Housing Benefit, you can:

ask us to send you a written statement of our reasons for the decision;

ask us to look at our decision again (you must do this, in writing, within one month of the date of the decision, but only if you have special reasons for being late); or

ask for an independent appeals tribunal to look at the decision. You must ask for this, in writing, within one month of the date of the decision. Ask for our form ‘Request for a benefits appeal tribunal’. The appeals tribunal can accept late appeals, up to 13 months from the date of the decision, but only in special circumstances.

If you are not happy about a decision, we want to make sure that there is no misunderstanding of the details of the claim. Also, we want to make sure you fully understand the reasons for our decision, and the first two options above give us the opportunity to discuss the case before passing it to the tribunals service.

Please make it clear which option or options you want to take.

What should I do if I want more information about the decision?

Just contact us and ask. If you want a written explanation, we will send you one. You should contact us straightaway.

May 2010 147

What should I do if I want you to look at the decision again?

You must ask for this in writing. You should say what you think is wrong and why you think it is wrong. You must do this within one month of the date of the decision.

What will you do?

We will look at the decision again. We will let you know if we have changed the decision or left it as it is. If you still disagree with the new decision, or the fact that we have not changed the original decision, you can challenge that in the same way as you can challenge the original decision.

What if I am late in asking you to look at the decision again?

You should ask us, in writing, to look at the decision again, within one month of the date of the decision. We may accept a late request up to 13 months from the date of the decision. You must make the late request in writing. You must say what you disagree with and why. You must say why you are late.

What should I do if I want the decision to be looked at by an independent appeals tribunal?

You must ask for this, in writing, within one month of the date of the decision letter. You should write to us and ask for our form ‘Request for a benefits appeal tribunal’. We will still look at the decision again. If we can change it in your favour, we will do this and let you know. Your appeal will then stop. You can appeal against the new decision. If we cannot change the decision in your favour, we will send you the ‘Request for a benefits appeal tribunal’ which you should fill in and return to us. We will then pass your appeal to the tribunals service.

What is the Tribunals Service?

The Tribunals Service is independent of us. It is made up of an executive agency of the Department for Constitutional Affairs and of independent appeals tribunals. We will invite you to put your case to the appeals tribunal. We will give the appeals tribunal our reasons for the decision.

You can find out more about the Tribunals Service on their website at www.appeals-service.gov.uk.

May 2010148

What if I am late in appealing?

You should appeal, in writing, within one month of the date of the decision. We can accept late appeals up to 13 months after the date of the decision in special circumstances. The appeals tribunal will decide if a late application can be accepted.

Can I appeal against all Council Tax and Housing Benefit decisions?

No. We can look at all decisions again but the Tribunals Service cannot look at every decision. The Tribunals Service cannot look at:

rent restrictions based on the rent officer’s decision;

any decision about the amount of a state benefit where the amount is set by law;

a decision about recovering an overpayment; and

any matter to do with a discretionary housing payment.

What happens when the decision is passed to the Tribunals Service?

We will send you the Tribunals Service information about the decision, our reasons for the decision and a copy of any relevant documents, including your appeal. We will send you a copy of this and a copy to anyone who is representing you. We will also send you a form, TAS 1, which you must fill in and return to the appeals service within 14 days.

You can ask for your appeal to be decided on the basis of the evidence you provide. Or, you can ask for a hearing at which you or your representative (or both) put your case forward and we put our case forward.

May 2010 149

Where do tribunals take place?

Tribunals are held in a number of places. We will send you a list when we send the papers for the appeal. Usually, our appeals are at Riverside House, 502 Gorgie Road, Edinburgh, EH11 3AF.

What if I disagree with the appeals tribunal’s decision?

You can ask for the case to be looked at by the Social Security Commissioners, on a point of law. You cannot appeal to them about questions of facts or about the tribunal’s decision. After that, the next stage would be the court of session.

Other organisations that can help you

Advice centres, like the citizens advice bureau, can help you. They may go with you to the appeals tribunal. You can find their details in the phone book.

May 2010150

Where to go for help and advice

Our staff at the office listed can give you help and information about your benefit claim and the benefits scheme in general.

Phone

You can contact us by phoning the direct line quoted on the documents you received from the Revenues and Benefits Division, or by phoning 0131 469 5000.

E-mail

xxxxxxxxxxxxxxxx@xxxxxxxxx.xxx.xx

May 2010 151

Benefit fraud is a crime against all of us.

Help us stop the benefit cheats.

If you want to report a possible abuse of the system, please phone 0131 469 5000.

We will treat your call in confidence.

May 2010152

Housing Benefit/Council Tax Benefit Subsidy

The Department for Work and Pensions (DWP) is responsible for paying all subsidy in respect of:

rent rebate rent allowance Council Tax Benefit (CTB)

Subsidy payments form a significant proportion of most authorities’ total income and are a vital factor in determining the quality, effectiveness and style of Housing and Council Tax Benefit administration.

With the exception of certain areas of benefit spending where authorities have the most scope to monitor and control costs, subsidy is paid at the rate of 100%. The benefit subsidy arrangements require authorities to keep accurate records of benefit spending falling into the different categories required for subsidy purposes.

Authorities need to maintain systems and records in such a way that the individual cases, which make up the benefit subsidy totals in each category, can be identified for verification of accounts and claims for internal audit and auditor certification purposes.

The areas of benefit spending which attract a lower rate of subsidy are:

identified overpayments,

disproportionately high increases in rents for Local Authority tenants,

rent allowance claims subject to rent officer referral that have not been referred in the appropriate year;

rent allowance claims subject to rent officer referral that are exempt from a maximum rent calculation but where the rent used in the calculation of Housing Benefit is above the claim related rent,

rent rebate payments above a specified level in respect of homeless people in board and lodging, licensed and short-term accommodation,

May 2010 153

Identified overpayments

An initiative was introduced from April 2004 to allow Local Authorities (LAs) to receive subsidy according to the level of their Local Authority error / Administrative Delay overpayments when compared to the total amount of correct benefit payments they make.

The level of subsidy that Local Authorities may claim for LA error / Administrative Delay overpayments in 2008/09 is determined by thresholds, expressed as a percentage of total correct payments. The thresholds are:

Lower threshold 0.48%

Upper threshold 0.54%

Classification Subsidy

LA error / Administrative Delay - if amount equal to or less than 0.48% of correct payments, 100%

- if amount above 0.48% but equal to or less than 0.54% of correct payments, 40%

- if amount above 0.54% of correct payments, nil

Rent rebate/CTB in advance Nil

DWP / HMRC error 100% (if recovered, nil)

Claimant / fraud / error 40%

Disproportionately high increases in rents for Local Authority tenants

This rule is intended to discourage authorities from loading rent increases onto council tenants to unfairly generate increased subsidy income.

May 2010154

Rent allowance claims subject to rent officer referral that have not been referred in the appropriate year

Rent officer arrangements apply to Housing Benefit awarded in respect of de-regulated tenancies where Housing Benefit entitlement has not been decided under the Local Housing Allowance rules.

If an authority fails to make an application for a Rent Officer determination in respect of a case that falls within the scope of the arrangements

within the relevant year, or before the due date for the submission of the subsidy claim for the

relevant year

any HB awarded will not qualify for subsidy.

Rent allowance claims subject to rent officer referral that are exempt from a maximum rent calculation but where the rent used in the calculation of Housing Benefit is above the claim related rent

In some cases falling under the pre-January 1996 rules, no subsidy is payable on any rent allowance equal to or less than the amount by which the eligible rent exceeds the rent officer’s significantly high rent figure or exceptionally high rent determination.

Rent rebate payments above a specified level in respect of homeless people in board and lodging, licensed and short-term accommodation

Homelessness legislation places a duty upon authorities to provide suitable permanent accommodation to certain categories of household. In many instances the authority must make available temporary accommodation until the applicant can be found a permanent home.

Reduced subsidy applies to rent rebates paid to people in:

Board and lodging (including B & B) accommodation where the liability arises under section 206(2)(b) of the Housing Act 1996 or section 35(2)(b) of the Housing (Scotland) Act 1987;

Accommodation held by the authority on licence (e.g. hotel annexes) where the liability arises under the relevant homeless persons’ legislation;

Accommodation held by the authority on a lease not exceeding 10 years, i.e. short term leased accommodation.

May 2010 155

The subsidy each authority receives is based on its cap and threshold* which are notified by DWP.

*threshold only applicable to board and lodging accommodation

Benefit attributable to that part of the eligible rent that exceeds the authority’s cap attracts nil subsidy.

In licensed and short-term leased accommodation, the remainder attracts 100% subsidy.

In board and lodging accommodation, benefit attributable to that part of the rent between the threshold and the cap attracts only 10% subsidy with the aim of making use of this type of accommodation by authorities less attractive.

Subsidy in Local Housing Allowance cases

Subsidy may be claimed at 100% for correctly paid benefit in cases that are subject to the Local Housing Allowance rules.

Further Information

You can access further information about subsidy via:

DWP website: http://www.dwp.gov.uk/local-authority-staff/housing-benefit/performance-and-good-practice/subsidy-guidance-manuals/

DWP circulars: http://www.dwp.gov.uk/local-authority-staff/housing-benefit/user-communications/hbctb-circulars/subsidy-circulars-2009/

Chapter 23 - Zebedee, Ward & Lister

Regulations

The regulations governing the subsidy arrangements are:

The Social Security Administration Act 1992 (sections 140A-140G) – these regulations give an outline of the legal framework relating to payment of subsidies to authorities.

The Income-related Benefits (Subsidy to Authorities) Order 1998 (SI 1998 No 562) – these regulations set out detailed legal rules and are amended each year.

May 2010156

Part 2

May 2010 157

May 2010158

Backdating

Backdating means awarding CTB/HB from a date earlier than the claimant initially claimed.

Claimants must request backdating in writing.

They must say why they did not claim at the time they want CTB/HB backdated to.

They must have continuous good cause. That is, they must have a good reason and the good reason must apply for all of the period during which they did not claim, but the reason can change during the period.

If appropriate, they should submit proof of the reason, for example, a letter from a doctor.

Good cause is not defined in the CTB/HB rules, but the DWP Guidance Manual :-

http://www.dwp.gov.uk/local-authority-staff/housing-benefit/claims-processing/claims-guidance/backdating/

suggests things like: the claimant’s age, health, knowledge of benefits, claimants from abroad, difficulty with language, postal delays, misleading official information, imprisonment.

From 06 October 2008, for working age claims, we can consider backdating for a period up to six months prior to the date of the request.

Example

Mr Orange, aged 50, claims CTB/HB on 4 August 2008. He submits a request for backdating on 8 October 2008. We treat the claim as being made on 9 April 2008 (6 months prior to 8 October 2008). CTB/HB awarded from Monday 14 April 2008.

May 2010 159

For claims where the claimant or partner is of state pension credit age or older, we must consider awarding CTB/HB for a period of three months prior to the date of claim, so long as they meet the conditions and are of state pension credit age or older for the period. This is not backdating.

If backdating is granted you must have proof of income, capital, rent and so on for the period in question.

You should make the decision and record it on Comino.

Promote backdating- it is mentioned on our claim form

.

May 2010160

Temporary absence

Normally you have to be resident to get CTB/HB. But if a person is temporarily absent then we can award CTB/HB.

The claimant must intend to return to the property.

The accommodation they rent is not let or sub let to someone else

They can get up to 13 or 52 weeks CTB/HB. Whether they get 13 or 52 weeks depends on their reason for being absent. The reasons for 52 weeks are listed in the rules. If the reason is not listed then the claimant can only get 13 weeks of CTB/HB.

13 weeks

They can get up to 13 weeks CTB/HB if:-

The period of absence is unlikely to last more than 13 weeks.

13 weeks worth of CTB/HB can be given in the following cases:

o tried, convicted and sentenced prisoners (untried prisoners can get 52 weeks)

o claimants absent from home, in UK or abroad, for holidays, domestic or religious reasons

o claimants working away from home, in UK or abroad

o voluntary workers in UK or abroad

Example

Mr Brown has been sentenced to 6 weeks in prison. He has gone straight from home to Saughton Prison. We will continue to pay CTB/HB for the 6 weeks.

May 2010 161

For prisoners, take the expected date of release into account. Most prisoners serve only half their sentence. Use that date as the date to decide if they will be out before 13 weeks.

Example

Mrs Green has been sentenced to 20 weeks. Assume that she will get out after 10 weeks. We should award 10 weeks CTB /HB.

NB. Absence under the 13-week rule could be for other reasons.

If the period of absence is known at the outset to be more than 13 weeks, do not award CTB/HB, whether they are a sentenced prisoner or not.

Example

Miss Gray has been sentenced to 2 years. Even if she behaves and is released after 1 year, this is longer than 13 weeks, so no CTB / HB is awarded at all, not even for the first 13 weeks.

May 2010162

52 weeks

The situations in which you can award 52 weeks of CTB/HB are listed in the rules. They are

remand prisoners

hospital in patients

people getting medical treatment or medically approved convalescence for themselves, their partner or a dependant child in UK or abroad, but not in residential accommodation

people undertaking approved training courses in UK or abroad

people providing medically approved care in UK or abroad

people providing care for a child whose parent or guardian is getting medical treatment or medically approved care

people getting medically approved care in UK or abroad, but not in residential accommodation

students eligible for CTB/HB

people in fear of violence

people getting care in residential accommodation, except for those there on a trial basis (for whom, see below)

The period of absence is unlikely to last longer than 52 weeks, or in exceptional circumstances, unlikely substantially to last longer than 52 weeks.

Example

Mr Blue is going into hospital for 54 weeks. We can give him CTB/HB for 52 weeks.

May 2010 163

Prisoners: from remand to sentenced

If a prison sentence immediately follows a period on remand, consider the total absence from home against the 13-week rule.

Example

Mr Orange is remanded in custody (52-week rule). 3 weeks later he is sentenced to 18 weeks (13 week rule). As he will probably only serve 9 weeks, 3 plus 9 = 12, which is less than 13 weeks, so we can award CTB/HB for a further 9 weeks, and 1 more week if necessary.

If it became known that Mr Orange was due to serve longer than 10 weeks, withdraw CTB/HB from the Sunday after the date you knew.

Linking periods

There are no linking periods between periods of temporary absence. If a claimant returns home, even for 1 night, then is temporarily absent again, the 13/52 period starts again from scratch.

Trial periods in residential accommodation

A trial period is when someone goes into residential accommodation temporarily to see if it will suit him or her as a permanent home. They do this with the intention of returning home if it does not.

In such cases, you can award them up to 13 weeks CTB/HB.

May 2010164

Prisoners on temporary release (home leave)

Such prisoners are counted as still being in prison.

Home Detention Curfew (Electronic tagging)

Such prisoners are not treated as prisoners for CTB/HB. They are not treated as being absent or in prison.

Proof

A written declaration from the claimant comprising

Why they will be temporarily absent

Date of becoming temporarily absent

Expected date of return

Forwarding address

and, if appropriate, confirmation, for example from a social worker or prison social worker.

May 2010 165

HB Prior to Moving In

Normally you can only get HB from when you occupy a dwelling. However, so long as the claimant does move in later, there are circumstances when we can award HB for a period before the person has moved in.

This rule only applies to HB. For Council Tax, an exemption or a discount may be appropriate.

HB can be awarded for up to 4 weeks before they move in.

The conditions are:

the claimant has now moved in

they were liable to pay rent before moving in

they claim HB before moving in

the delay was reasonable

the delay in moving was necessary to adapt the dwelling to the disablement needs of the claimant or someone in their household or

the move was delayed pending the outcome of an application for a (DWP) social fund payment to meet a need related to moving (for example, to meet the cost of removal, or to buy a new item of furniture), and

a member of the claimant’s family is aged less than 6, or the claimant satisfies the conditions for one of the disability related premiums or a work related activity component or a support component or is of state pension credit age or over or

the claimant became liable to pay rent whilst a hospital in patient or in residential accommodation.

Example

Mr Green’s rent liability starts Monday 2 February 2004. He is staying at his mother’s and cannot move in until he hears from the Social Fund about his application for a loan to get a cooker. He has a 2 year old son.

His application is successful and he moves in on Friday 20 February 2004. He claimed HB on Monday 2 February 2004. Under this rule HB is awarded from Monday 2 February 2004 until Sunday 22 February 2004.

HB for 2 Homes

May 2010166

Normally, HB can only be paid on 1 home at any 1 time.

There are a number of exceptions where we can pay HB on 2 homes (but not more than 2) if certain conditions are met. There is no such rule in CTB, as maybe an exemption or a discount is appropriate for the unoccupied home.

Dual Rental Liability

The conditions for HB on 2 homes because of a dual rental liability that could not reasonably have been avoided are:

The claimant has moved to their new home

They are liable to pay rent on both homes

The dual liability could not reasonably have been avoided.

What does the last condition mean?

It means that the claimant must have given his old landlord notice to terminate the tenancy as soon as he could. You will have to establish the date he was offered a new tenancy, and the date he advised his old landlord that he was terminating the tenancy.

This rule is designed to cover the period of notice (4 weeks) that a landlord is entitled to receive.

You can only pay HB on 2 homes for up to 4 weeks, even if the period of notice is longer than 4 weeks.

Example

Mrs White gets HB at address A. She has decided to move to address B, where she will also get HB. She gives her landlord notice that she wants to terminate the tenancy as soon as she accepts the new tenancy. She moves in to address B as soon as the tenancy starts. Her old landlord expects 4 weeks rent once she has given notice. We can pay this in HB as Mrs White has moved, and her dual liability could not reasonably have been avoided.

The claimant does not need to be entitled to HB on both homes but they must have to pay rent liability on both homes to get HB on the home they have left.

May 2010 167

For example, if the claimant has moved into a care home, where the rent liability is ineligible for HB, they can still get HB for the address they have left.

Fear of violence

If a claimant has left their home because of fear of violence, then HB can be paid on 2 homes for up to 52 weeks where

The claimant intends to return to their normal home

The fear is caused in the home by another person, for example a former partner, non-dependant, neighbour or outside the home by a former member of the claimant’s family.

Violence does not physically need to have occurred: fear of violence is the criteria.

Example

Mrs Black is afraid to return to her normal home because of her husband. She is staying in a Women’s Aid Hostel, where she gets HB. She intends to return to her home soon. We should award HB on both addresses for up to 52 weeks.

Large families

Where the Local Authority, Housing Department, has placed a family in 2 homes, because the family is too large to live in 1 home, both homes must be provided by the Housing Department. They do not necessarily need to own both properties but the HB on 2 homes under this rule is indefinite.

May 2010168

1 of a couple is a student or a trainee

Couples who live in separate accommodation when 1 of them is a student or a trainee can get HB on 2 homes where

Separate accommodation is unavoidable and

It is reasonable to pay HB on both homes

Example

Mrs Brown is a student in London. Mr Brown is living in the normal home looking after the children, in Edinburgh. We can pay HB on the Edinburgh address and the London Authority can pay it on the London address.

If Mrs Brown had been studying in Glasgow you would need to consider whether or not it would be reasonable to pay HB on 2 homes. Could she commute to Glasgow?

HB on 2 homes under this rule is indefinite.

Delay moving in due to disability related adaptations

A claimant who cannot move into a new address because they are waiting for adaptation(s) to be made to their new address to meet a disablement need (for example, rails fitted beside steps and stairs), can have HB on both homes for up to 4 weeks.

Example

Mr Blue cannot move in to his new house until 2 weeks after the rent liability started as he was waiting for adaptations to be made to steps and stairs. HB can be awarded on both homes for the 2 weeks.

May 2010 169

HB: rented to non rented accommodation

From 4 October 2004 HB is payable for up to 4 weeks if the liability on the former home could not reasonably have been avoided, and they do not have a liability on their new accommodation.

This rule could, for example, apply to people in hospital, who initially expected to return home within 52 weeks, but their condition deteriorates and they have to stay in hospital longer, or permanently, or they move to a care home.

Or to prisoners sentenced to a prison term of more than 13 weeks. For example, a customer is sentenced to 10 months in prison. He goes straight from home to prison. Prior to this rule, you would end HB from when he leaves his house. Now you can award HB for the first 4 weeks of his prison term.

If a person dies you cannot award HB under this rule, or any rule.

May 2010170

CTB and HB Rapid Reclaim

Rapid Reclaim is a work incentive measure to encourage claimants to try short term work and not be put off by the normal process of re claiming CTB/HB if the job ends.

It is not a change in CTB/HB rules. It is a streamlined process for claimants who re claim IS/JSA/ (from March 2007) IB/ESA and CTB/HB within 26 weeks of their previous IS/JSA/IB/ESA and CTB/HB ending. (Prior to 15/12/08, it was 12 weeks - for ESA it is still 12 weeks).

There is a specific single page, 2 sided claim form, HBRR1, to make a CTB/HB Rapid Reclaim.

HBRR1 is a declaration that the claimant’s circumstances have not changed since their last IS/JSA/IB/ESA and CTB/HB claim.

When we get HBRR1 and proof of IS/JSA/IB/ESA is held, we should be able to process CTB/HB without needing to ask for further information.

Process Rapid Reclaim if:

The claimant is reclaiming IS/JSA/IB/ESA at the same time as they reclaim CTB/HB (see question on HBRR1) and

They are reclaiming CTB/HB within 26 weeks of their previous CTB/HB ending (12 weeks for ESA) and

They are entitled to IS/JSA/IB/ESA (check ESEF if in doubt) and

There have been no changes in circumstances since their previous CTB/HB, other than a change related to the change that took them off CTB/HB, for example started work then stopped work.

Do not process Rapid Reclaim if:

The claimant is claiming CTB/HB for the first time or

They are reclaiming CTB/HB more than 26 weeks after their previous CTB/HB ended (more than 12 weeks for ESA) or

They are not getting IS/JSA/IB/ESA or

There has been a change in circumstance since their previous CTB/HB, other than a change related to the change that took them off CTB/HB, for example started work then stopped work.

May 2010 171

Rapid Reclaim works like this:

Claimant reclaims IS/JSA/IB/ESA

JobCentre Plus identify if they are eligible for IS/JSA/IB/ESA Rapid Reclaim

JobCentre Plus issue them with IS/JSA/IB/ESA Rapid Reclaim pack which includes HBRR1

Claimant sends HBRR1 to us

JobCentre Plus sends us proof of IS/JSA(IB)or we establish entitlement to IS/JSA/IB/ESA, through an ESEF enquiry

We check HBRR1 is completed

We check details on HBRR1 match what’s on I world / Comino

We check the claimant has declared on HBRR1 that they have had no changes in circumstances

We check they are reclaiming CTB/HB within 26 weeks (26 weeks or less) since the last entitlement of CTB/HB (12 weeks for ESA)

We restart CTB/HB paying the same amount as when they were last on IS/JSA/IB/ESA (Subject to any change in LHA/RO decision).

Note:

If the HBRR1 is not completed, or the details do not match with what we hold, or they declare a change, or they are not back on IS/JSA/IB/ESA, or more than 26 weeks have passed since their last CTB/HB ended, you should not process HBRR1, you should issue our full CTB/HB claim form.

Rapid Reclaim applies to both JSA(IB) and JSA(contributory) . JobCentre Plus will not automatically notify us of JSA(C) or IB entitlement so you will need to check that through ESEF.

Rapid Reclaim should not be processed where the claimant has had CTB/HB since their IS/JSA/IB/ESA ending. In that case, if they move from work to IS/JSA/IB/ESA, no new claim form is needed-process the change as a change in circumstance.

There is no special coding for I world for Rapid Reclaims. They are NEW claims. As a new claim you should create LHA assessment to call in the LHA in force at the time of the Rapid Reclaim.

From March 2007 people on IB can claim via the Rapid Reclaim process.

Child Tax Credit and Working Tax Credit

May 2010172

There are 2 incomes available from HM Revenue and Customs (previously known as Inland Revenue).

Child Tax Credit

Paid in respect of dependent children up to, but not including, the age of 20

For people in work and out of work Paid in addition to Child Benefit Is disregarded if the claimant or partner is of state pension age or over.

Working Tax Credit

Paid to people working, with or without children

Proof

We need to see the original notification from HM Revenue and Customs - all pages of it.

Arrears

CTC and WTC are normally treated as income but arrears are treated as capital and disregarded for 52 weeks.

May 2010 173

Overpayments

If the actual payment is less than the entitlement because an overpayment of Tax Credit is being recovered, we use the net amount, after recovery of the overpayment.

Calculation of weekly income

Use the instalment figure stated on the award letter as the amount to use as income in CTB/HB. If the instalment amount changes, you need to change the amount in CTB/HB.

Tax Credits are paid in arrears, except for fortnightly ones, which are paid midway.

4 weekly instalment of £250 paid on Tuesday 26 April 2005. Use £250 per 4 weeks from Wednesday 30 March 2005 (4 weeks prior to the actual pay date). CTB/HB revised from Monday 4 April 2005.

Weekly instalment of £75 paid on Tuesday 26 April 2005. Use £75 per week from Wednesday 20 April 2005. CTB/HB revised from Monday 25 April 2005.

2 weekly instalment of £120 paid on Tuesday 26 April 2005. Use £120 per fortnight from Wednesday 20 April 2005. CTB/HB revised from Monday 25 April 2005.

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Extended Payments

Extended Payments (EPs) are 4 weeks of CTB/HB which are paid when the customer comes off certain benefits (see list below). They are paid because the customer has started work, their wage increases or their hours of work increase.

For ease of understanding, I will refer to starting work and I mean by this any of those 3 work related changes.

During the 4 weeks, their wage is ignored and they get the same amount of CTB/HB as they got during the last week of the benefit that has ended. The idea behind EPs is to encourage people to take up employment and to tide them over till their first wage.

There are a few changes of medium importance in the EP rules from 06 October 2008.

The benefits that allow an EP to be paid, when that benefit stops, are:

Income Support (IS)

Job Seekers Allowance (income based) (JSA(IB))

Employment and Support Allowance (income related) (ESA(IR)) – a new benefit that started 27 October 2008, which will replace Incapacity Benefit for new customers.

Incapacity Benefit (IB)

Severe Disablement Allowance (SDA)

Employment and Support Allowance (contributory) (ESA(C)).

Changes from 06 October 2008

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There will be no need for the customer to claim or ask for an EP. We must consider whether they are entitled to an EP when they come off the above benefits and start work. We must also consider whether they are entitled to in work CTB/HB. (In work CTB/HB means their “normal“ CTB/HB, based on their wages and other details, that follows their EP). Prior to the above date customers had to advise us they had started work within 28 days of starting work.

The Jobcentre Plus will no longer confirm to us that the customer has met certain of the EP conditions. We must do that.

The in work CTB/HB claim will not be classified as a new claim. It is a change in circumstance and on I world the claim type is Continue. As it is a change in circumstances, technically we do not need a new claim form from the customer, but in reality to gather all the relevant information concerning income and capital it is safer to ask the customer to complete a claim form.

Prior to the above date when a customer moved to a new Local Authority during the EP period, the new LA had to pay the balance of the EP (except where the move is from private to private).

From the above date in all cases, it will be the responsibility of the original LA to pay all of the EP even if the customer moves to a new LA during the EP.

In reality we should cancel CTB/HB when the customer moves and await further contact from them (or the new LA) to decide if we should pay the EP after they have moved.

To get a full 4 weeks of EP the customer has to be liable for Council Tax and rent for the full 4 weeks. If they move outwith Edinburgh, we may not know if they are liable at their new address.

Moving during the EP period is rare: if you get such a case where the customer contacts you about the balance of EP, please contact us in development - probably a manual adjustment will be required.

The following information has not changed. It applies before and after 06 October 2008.

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To be eligible for an EP the customer or partner must

1 have stopped getting one of the above benefits because they have started work and

2 have started work which is expected to last at least 5 weeks (if the customer has not stated this, you will have to ask them to state it, either in writing or verbally ( if verbally, record it on a case report.) They do not have to confirm it in any other way and

3 have been continuously getting one of the above benefits for a period of at least 26 weeks immediately before the benefit stopped. Check ESEF to confirm this and

4 in the case of people coming off IB,SDA or ESA(C), not be entitled to and not be in receipt of IS,JSA(IB) or ESA(IR) in the last benefit week in which they were entitled to IB, SDA or ESA(C).

Periods of JSA (contributory) can count towards the 26 weeks but the customer or partner must have come off IS, JSA(IB) or ESA(IR) because they have started work. A person ceasing to get JSA(C) cannot get an EP unless they were getting IS, JSA(IB) or ESA (IR) immediately before starting work.

Any periods the partner has spent on IS/JSA/ESA(IR) or IB/SDA/ESA(C) count towards the 26 weeks only if that partner was the partner for all of the 26 weeks and they are still the partner.

If CTax or rent liability stops during the EP period, the EP only covers the period that there was a liability.

Apart from one very rare exception there are no linking rules for the 26 week period. Any break in the benefit would stop an EP being awarded. The exception is for people who are participating in an Employment Zone, which is a Jobcentre Plus scheme for people in certain parts of the country. As Edinburgh is not one of the zones, it is unlikely this will apply to us.

The 26 week condition

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If a customer gets IS and IB (or SDA), then moves to only IB (or SDA), they can get an EP, if they have been on IB (or SDA) for 26 weeks continuously.

If a customer gets IB (or SDA) only, then moves onto IB (or SDA) plus IS, they can get an EP if they are on IB (or SDA) for 26 weeks or IS (with or without IB/SDA) for 26 weeks.

You cannot add together IS and IB/SDA periods.

Example

The customer is on IS (no IB) for 10 weeks. He moves on to IB (no IS) for 20 weeks then he starts work.

As you cannot add IB and IS together he cannot get an EP.

The same will apply to ESA contributory and ESA income related. You cannot add together ESA(C) and ESA(IR) periods.

Duration of EP

The EP begins on the first day of the benefit week (that is, the Monday) following the week when the main benefit stops.

Example

IS is paid up to and including Wednesday 22 October 2008. Normal CTB/HB stops on Sunday 26 October 2008. EP runs from Monday 27 October 2008 to Sunday 23 November 2008.

Example

IS is paid up to and including Sunday 19 October 2008. Normal CTB/HB stops on Sunday 26 October 2008. EP runs from Monday 27 October 2008 to Sunday 23 November 2008.

Rent free weeks

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EPs are not payable for rent free weeks. EPs should not be paid beyond the 4 week period to compensate for rent free weeks. For example, if weeks 2 and 3 of an EP period are rent free, the EP should be paid only for weeks 1 and 4.

Amount

The amount of the EP is normally the amount of CTB/HB that applied in the last week when they were still on the main benefit.

If the last week of HB when they were on their main benefit was a rent free week, the EP would be the amount of the HB in the week before the rent free week (or the amount of in work HB if that was higher).

Changes in circumstances during the EP period

Changes do not normally affect the rate of EP. However, if a change meant that the in work CTB/HB was more than the EP, the EP should be paid at the higher in work rate (from (the Monday following) the date of change).

HB on 2 homes

EP can be paid on 2 homes at the same time.

Partners

If a customer’s partner claims CTB/HB in the same LA while an EP is in payment to the customer , no CTB/HB can be paid to the partner whilst the EP is in payment. This is to prevent duplication of provision.

Change of address within the same LA

If a customer moves during the EP period, they get a full 4 weeks of EP provided they have a CTAX/ rent liability at the new address for the remainder of the EP period.

We use the amount of CTAX/ rent that applied in the old address claim.

Change of address to another LA

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If the customer moves to another LA during the EP period, they still get a full 4 weeks of EP provided they have a CTAX/rent liability at the new address for the remainder of the EP period. The original LA pays the EP. The amount is the amount based on the eligible CTAX/rent at the old address.

Exchange of information between the old and new LAs

Paragraphs 52, 53,117 and 118 of circular A12/2008 detail what information should be exchanged between LAs.

Disputes and appeals

If the customer disagrees with any matter concerning an EP they can dispute/ appeal the matter.

Mortgage Interest Run On (MIRO)

MIRO gives customers, who have mortgage interest payments and help for other housing costs (such as ground rent and service charges) included in their IS/JSA(IB)/ESA(IR), and who return to work, an additional 4 weeks of IS.

This means they automatically get an additional 4 weeks of maximum CTB (and possibly HB if they pay part mortgage - part rent on their property). Therefore there is no entitlement to EP.

Pension Credits

When a customer, or their partner, is getting Pension Credit and IB, SDA or ESA(C), an EP cannot be made. This is because there is no limit on the number of hours you can work and still get PC, unlike in IS, JSA(IB) or ESA(IR) where you can only work a set number of hours.

When to award an EP

There is no reason to delay awarding an EP to see if they are entitled to in work CTB/HB when the EP ends. When the customer’s main benefit stops we should award EP if we have all the information. We will have to ask them if the job is expected to last at least 5 weeks. We should ask the customer for details of their new circumstances if they want in work CTB/HB, probably by asking them to complete a claim form.

Northgate

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No change to the way we process prior to 06 October 2008. To award an EP on Northgate you have to

end the relevant income ( IS, JSA,IB,SDA or ESA)

cancel the claim

create an EPP (Extended Payment Period).

The Receipt Date will still be mandatory, but as EPs are now not new claims but changes in circumstances, a receipt date is not really relevant. I suggest you input the date IS (or the appropriate benefit) ends. Make sure that the start and end dates of the EP are correct.

To award in work CTB/HB you have to

re-open the claim (claim type Continue (was New prior to 06 October 2008)).

Continuing Payments

Continuing Payments are where the claimant or partner has moved from IS/JSA(IB) to a Pension Credit.

The PS will advise us that IS/JSA(IB) has ended either because the claimant has become of state pension age or 65 and needs to apply for PC, or that a partner of state pension credit age has claimed PC.

We will ignore their income and capital and award them 4 weeks of CTB/HB at the same amount as if they were still on IS/JSA(IB).

The reason is to allow time for the PS to calculate PC entitlement. Even if they do this before 4 weeks, the claimant still gets 4 weeks of maximum CTB/HB.

Boarders

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"Boarders" are people whose rent includes money for meals.

You will identify this by the claim form (or in the lease).

If the rent includes meals we must reduce the rent by an appropriate amount as the claimant must pay for meals from their own money (wages, benefit). Meals are ineligible. If the rent had not included meals, it would have been less anyway.

It does not matter what the meals cost, we reduce the rent by amounts set by the DWP.

In a private sector claim, that may come under the Local Housing Allowance (LHA) scheme, if the rent includes meals, refer the rent to the Rent Officer (RO). If the RO decides meals form a substantial part of the rent (the cost of meals is over 20% of the rent), the RO will give us a “claim-related” rent. Take the standard meals deductions off this to work out the eligible rent.

If the RO decides meals do not form a substantial part of the rent, they will advise us and we will use the LHA but no amount is taken off for meals.

Example

Mrs Indigo rents from a registered Housing Association. They provide full board (3 or more meals per day). The rent is £120 per week, including full board, which HA values at £45 per week.

Rent £120.00Less full board of £ 22.95 (set DWP amount, April 2008 rate)Eligible rent £ 97.05

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Local Housing Allowance (LHA)

In an LHA claim, if we are paying HB to the landlord, and the HB is greater than the rent, we pay up to the rent to the landlord and the balance to the claimant.

Example

Mrs Violet’s HB is £100. Her rent is £90. We are paying HB to her landlord because we are satisfied she is unable to manage her own affairs. We pay her landlord £90 and the claimant £10.

If the claimant consents, we can pay above the rent to her landlord, but only to pay for rent arrears.

You must get the claimant’s written consent and the amount of the rent arrears.

Example

In the above example, Mrs Violet gives her written consent to pay off her rent arrears of £60 through HB.

For 6 weeks we pay her landlord £100 HB per week.

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Discretionary Housing Payments (DHPs)

DHPs can be awarded at the discretion of the Local Authority and can be made for any reason (for example, the LHA is less than the rent, non-dependant deductions), except for ineligible service charges.

The claimant must claim DHP and to get it for Council Tax, the claimant must qualify for main CTB (not 2AR). To get DHP for help with rent, they must qualify for HB.

They must appear to the Local Authority to “require some further financial assistance (in addition to CTB/HB) to meet housing costs”.

The DHP plus CTB/HB must not be more than the weekly eligible Council Tax or weekly eligible rent (Eligible rent =contractual rent less ineligible services).

Claimants can ask us to reconsider a decision concerning DHP, but they cannot ask for the Tribunals Service to look at the decision.

The DHP rules do not say when DHP entitlement should start. We can award it from a date earlier than the claim is made - it is not backdating.

Staff should promote DHP as long as there are funds available.

Example

Miss Red’s rent is £70 per week. As she is aged 18 she gets the shared accommodation rate LHA of £60. She is on income based JSA. She requests DHP to meet the shortfall of £10, arguing that she cannot pay it from her JSA(IB) as she already has a Social Fund loan to pay back. Her landlord will take steps to evict her if she gets into rent arrears.

You decide to award her £10 per week DHP.

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Rent Officer Referrals

The purpose of this note is to explain which rents get referred to the Rent Officer (RO).

The purpose of referring the rent is to stop landlords taking advantage of HB by charging excessive rents. The RO will advise if the rent is OK. If it’s not OK, the RO will advise us what a reasonable / average rent would be. If we do not refer the rent and we pay HB, then the auditor may qualify our claim for subsidy and the DWP may refuse to pay us any subsidy where the rent has not been referred.

Most of our private sector claims do not get referred to the RO because the landlord is a registered social landlord (RSL) (registered housing association or registered housing co-operative) or because the claim falls under the Local Housing Allowance scheme. However, there are a small number of claims where we still need to refer the rent to the RO.

Refer (the following are exempt from LHA)

Hostel rents (for example, Women’s Aid, The Salvation Army). Only 1 referral need be made for each hostel, assuming the rents are the same and the accommodation is the same for each person.

Rents where the landlord is a RSL (This means the landlord is a housing association/co-operative registered with The Scottish Housing Regulator (or the English equivalent, The Housing Corporation)) and the rent is above the appropriate LHA or they are overaccommodated- note 2010/32.

Houseboats, caravans, mobile homes

Rents where the landlord is a registered charity or a non profit making voluntary organisation and the landlord (or someone acting on their behalf) provides care, support or supervision to the claimant (for example, Barnardo’s, The Thistle Foundation)

Rents which would fall under LHA and the rent includes a charge for meals. In these cases, refer the rent, with details of the meals. The RO will decide if the claim falls under LHA or if it falls under the RO scheme.

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Do not refer

Council house rents

Rents where the landlord is The City of Edinburgh Council (for example, a Council hostel or where the landlord is The Department of Health and Social Care)

Regulated tenancies - this means tenancies which started before 02 January 1989 - regardless of when the claim is made. If someone changes address (after 01 January 1989) from a regulated tenancy but still has the same landlord, the tenancy at the new address is regulated.

Rents where the landlord is a RSL and the rent is equal to or less than the appropriate LHA/ they are not overaccommodated-note 2010/32.

Rents where the claim falls under LHA.

How do we refer rents to the Rent Officer?

By completing the Rent Officer Referral form on Comino:

Benefits>Outgoing>Rent Officer Correspondence>Rent Officer Referral (B).

And posting it to the RO..

May 2010186

For 52 weeks. Use the Future Tray on Comino to mark the claim for 46 weeks after the date of the first claim, so that we have the RO decision back to implement in time.

The effective date of change in HB:

If it means less HB is payable (because the RO gives a lower decision), the Monday following the date we get the decision, if it is received after 52 weeks. If received before 52 weeks, the Monday of week 53.

If it means more HB (because the RO gives a higher decision), the Monday of week 53

Can we refer the rent part way during the 52 weeks?

Yes, but only if there is a relevant change of circumstances:

There has been a change in the number of occupiers (but not in the case of a hostel)

A child has turned 10 or 16, where at the last referral the RO set a size-related rent (that is, RO said they were living in accommodation that is too large for their needs)

There has been a change in the composition of the household, where at the last referral the RO set a size related rent

There has been a substantial change or improvement in the condition of the dwelling- regardless of any change in the rent. For example, central heating has been installed.

There has been a substantial change in the terms of the letting agreement- regardless of any change in rent. For example, the landlord has taken over responsibility for internal decoration.

There has been a rent increase and

o the rent increase was made under the term of the letting agreement and that term is the same (or substantially the same) as at the previous referral to the RO and

o at the previous referral, the RO did not make any of the following determinations: a significantly high rent determination, a size related determination or an exceptionally high rent determination.

The effective date of change in HB is the effective date of the change of circumstance (that is, normally the Monday after the actual date of change)

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assuming, in the case of an increase in HB, the customer has notified us within 1 month of the date of change).

If the change is a change in rent, the effective date in HB is the actual date of change, assuming that in the case of a rent increase, the customer has notified us within 1 month of the date of change.

Some points to note:

RO decision

RO can make a number of decisions:

o Significantly high rento Size related rent o Exceptionally high rento Claim related rento Local reference rento Single room rent

Significantly high rent

If the RO thinks the rent is significantly higher than what the landlord might reasonably expect, RO will set a reasonable rent.

Size related rent

If the RO thinks the claimant is living in accommodation that is too large for their needs, then the RO will set a rent that is appropriate for the right size of property.

Exceptionally high rent

RO will advise if the rent is exceptionally high. Very rare.

Claim related rent

The lowest of the referred rent, the significantly high rent, the size related rent or the exceptionally high rent.

Take off meals but not services.

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Local reference rent

The average rent for properties of a similar size in the area.

Take off meals but not services.

It does not apply to PTEN DRT claims.

Single room rent

RO will give this if we ask for it.

It applies to single claimants (not couples) who

o Are aged under 25 and

o Have no children, sub tenants/boarders, non deps and

o Who do not get the severe disability premium and

o Who are not a care leaver aged under 22.

It is the average rent for a single room.

It does not apply to RSL claims that get referred to the RO.

Do not take any services or meals off the Single room rent.

It does not apply to PTEN DRT claims.

Use the lowest appropriate figure supplied.

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Examples

Referred Rent £650 per month.

RO advises:

Not significantly above a market rent £650 (that is, the accommodation is worth £650.

Local Reference Rent £566 (average rent in that area is £566).

Claim Related Rent £650 (CRR is the lowest of the referred rent, the (not) significantly above a market rent, the size-related rent - valuation if the claimant is over accommodated), the exceptionally high rent).

We use £566 in HB (this may need apportioned).

However, if the landlord is a registered charity or non profit making voluntary organisation and the landlord (or someone on their behalf) provides care, support or supervision, then the Single Room Rent and Local Reference Rent do not apply. In the above example, we would use the lower of “Claim Related Rent/Not significantly above a market rent figure”, that is £650.

Services

Include details of services in the referral to the RO. We decide if a service is eligible, but the RO decides the value of an ineligible service.

The only thing to be deducted from the RO decision is the standard rate for meals.

Example

PTEN ODRT. Rent is £100 per week including ineligible heating of £9 per week. RO returns a claim related rent of £88, advising us he has deducted £9 for ineligible heating.

HB is based on £88 per week (RO valued rent at £97 less heating of £9).

Do not take anything off (including meals) if you are using a Single Room Rent.

Single People aged under 25

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We must ask for this: when the claimant is single, aged under 25, with no children or non dependants, and they do not get the severe disability premium, and they are not a care leaver aged under 22. The RO will give the Single Room Rent.

No amounts are deducted from the Single Room Rent. Does not apply to RSLs, or where the landlord is a registered charity or non profit making voluntary organisation and the landlord (or someone on their behalf) provides care, support or supervision.

Example

Claimant is single, aged 20. Rent is £80 per week, including full board.

It would be a LHA claim, but as it includes meals, we must refer to RO and ask for a Single Room Rent.

RO advises Single Room Rent of £70.

We do not deduct the standard meals deduction of £22.95.

HB is based on £70.

Joint tenants

Refer the rent for the whole property and apportion the RO reply, but do not apportion the Single Room Rent.

Example

3 flatmates have a joint lease. The full rent is £750 per month. 1 of them claims HB. Her rent is £250 per month. RO advises a Claim Related Rent of £720. The HB for the 1 claimant is based on £240 per month (one third of RO decision - but the RO decision can be apportioned in whatever way is appropriate.

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Vulnerable People

In the case of PTEN DRT claims, if the claimant, or someone in their household is

Of state pension credit age or over or

Responsible for a child or young person in the household or

Incapable of work

Then we cannot restrict the rent to the RO figure unless

There is suitable alternative accommodation and

It is reasonable to expect the claimant to move.

To achieve this on I world, when creating the Rent, tick the box Pre-1996 protection and I world will use the contractual rent, not the RO decision.

Further information

May 2010192

DWP Guidance Manual DWP circular A27/2008, for benefit rates and so on.

The regulations

(A)The Housing Benefit Regulations 2006, SI 2006 No.213 (B)The Housing Benefit (Persons who have attained the qualifying age for state

pension credit) Regulations 2006, SI 2006, No.214 (C)The Council Tax Benefit Regulations 2006, SI 2006 No.215 (D)The Council Tax Benefit (Persons who have attained the qualifying age for

state pension credit) Regulations 2006, SI 2006 No.216

The letters A to D are my references:

Backdating- A 83(12), B 64(13), C 69(14), D 53(13)

Temporary absence- A 7, B 7, C 8, D 8

HB prior to moving in- A 7(8), B 7(8)

HB on 2 homes- A 7(6), B 7(6)

HB for periods of notice- A 7(7), B 7 (7)

Rapid Reclaim- DWP circular A23/2002- when RR was introduced, no changes were made to the rules. RR,as such, is not found in the rules. A25/2008.

Extended Payments- A 72,73,Schedules 7 and 8, B 53,Schedule 7, C 60,61,Schedules 6 and 7, D 44, Schedule 5.

SI 2008 No 959: The HB and CTB(Extended Payments) Regulations 2008 ( DWP circular A12/2008)

Amended with effect from 06 October 2008: 2008/38: SI 2008 No.959.

Continuing Payments (Pension Credits)- B 54, D 45

Boarders: A 12(3), Schedule 1, B 12(3),Schedule 1

Paying HB to the landlord :LHA claims- A Schedule 10,Part 2,13 (1), B Schedule 9, Part 2,13 (1)

Discretionary Housing Payments- Statutory Instrument 2001, No 1167,Social Security, The Discretionary Financial Assistance Regulations 2001

The Rent Officer- A 13 to 18, 114, Schedule 2, B 13 to 18, 114, Schedule 2

State pension age- DWP circular A16/2009.

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