Allerdale
Borough Council
Housing Benefit Administration
Local Housing Allowance
Safeguard Policy
Introduction
From 7 April 2008 tenants of Private Sector landlords will have their benefit
claims calculated under the new Local Housing Allowance scheme. Under
the new scheme claimants no longer have the legal right to request that
payments of benefit be made to a third party.
It is accepted, however, that some claimants may have difficulty budgeting
and may fall into rent arrears putting their tenancy at risk. To minimise the
risk the new regulations provide local authorities with a discretionary power to
make payments to landlords where it is clear that the tenant is vulnerable and
their tenancy needs to be safeguarded.
DWP guidance divides claimants with difficulties into three groups:
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claimants who have difficulty budgeting
claimants who are unlikely to pay their rent
claimants who are eight or more weeks in arrears.
It is essential that decisions relating to direct payments of benefit to landlords
are decided equitably and with sensitivity. Guidance from the Department for
Work and Pensions does not provide specific criteria but does emphasise that
the claimant’s best interest must always be the main consideration. The
following guidance is intended to assist with the decision making process.
Allerdale Policy
The primary concern of this Safeguard Policy is to minimise the risk of tenants
falling into arrears and losing their tenancy. The policy will:
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provide reassurance to vulnerable tenants that their benefit and rent
will be paid
prevent the risk of eviction
reassure landlords that rent will be paid where tenants are deemed
vulnerable
direct tenants to organisations who can provide support with financial
management
promote a process that is widely understood.
The policy does not:
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supersede support already being provided to tenants
allow landlords to circumvent the aims of the LHA scheme
provide a blanket policy for agencies providing support to private
tenants.
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Tenants who are unlikely to make payments of rent or are 8
weeks in arrears
It is likely that, in these situations, the landlord will contact the benefit section
directly. However third parties, individuals or organisations may also make
representations to the local authority.
A benefit officer should request, from the landlord, written evidence that the
rent is unpaid or proof that, in the past, the tenant has consistently failed to
pay rent without good reason. Interviewing the claimant to discuss a more
general approach to their financial circumstances may provide a more
complete picture as to their vulnerability.
All available evidence, whether held by the council or obtained from third
parties, should be evaluated. When considering evidence from landlords the
obvious conflict of interest should not be overlooked. Officers must also
consider whether the landlord is a ‘fit and proper’ person to receive payments.
Where the benefit officer is satisfied that the tenant is:
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8 weeks in arrears or
having deductions made from their Income Support or Jobseekers
Allowance to pay off rent arrears
payment should be made to the landlord.
Where otherwise the evidence leads the officer to conclude that not paying
the landlord would risk safeguarding the claimant’s tenancy, payment should
be made to the landlord. When making payment directly to a landlord the
payment should be limited to the amount due in rent.
Where the claimant is entitled to an excess LHA this amount can also be paid
to the landlord to reduce rent arrears. The payments should last only for as
long as it takes to clear the arrears.
After three months the decision to make direct payments should be reviewed.
It is not expected that once a decision is made that it should continue without
further intervention. With help from an advice centre, specialising in
budgeting, the claimant may well be in a position to take over the
management of their own affairs.
Where an officer is satisfied that there is a continued risk to the tenancy,
direct payments should continue and the situation be reviewed again in six
months.
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Claimants who have difficulty budgeting
Representations and evidence concerning direct payments may be received
from the claimant, his/her family or friends, landlords, professionals e.g. GPs,
welfare organisations. The person making the representations may use the
pro-forma or a letter is acceptable. Wherever possible the evidence
supporting the representations must be in writing. All supplied evidence and
evidence already held should be considered when making a decision.
Where there is insufficient evidence the officer should seek further evidence
or arrange to meet with the claimant or representative to gain a more
complete evaluation of the situation. If there is no response the case should
be considered on its own merits.
Some characteristics that may indicate that a claimant may have difficulty
paying their rent are:
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learning disabilities
medical conditions
illiteracy, uses English as a second language
addiction to drugs or alcohol
fleeing domestic violence, leaving prison
A claimant’s inability to manage their own affairs may be demonstrated by:
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severe debt problems/county court judgements
undischarged bankruptcy order
an inability to obtain a bank account
deductions from DWP benefits
claimant is supported by Supported People scheme
claimant is receiving help from homeless charity.
An inability to provide supporting evidence will need careful evaluation. This
may in itself prove the claimant’s inability to manage their own affairs.
Where a decision is made to pay the landlord direct it may still be prudent to
refer the claimant to an advice centre. A review should be conducted in six
months.
Direct payments to landlords should not be made where:
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a person has been appointed to act on behalf of the claimant
a claimant who has an appointee
the claimant is receiving support to help with budgeting
the landlord is having difficulty managing his own affairs
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Making a Decision
When the officer has gathered sufficient information and evidence, a decision
on whether the claimant is an unlikely payer and whether direct payments are
appropriate must be made. Payments must not be delayed during the
decision making process.
Making payments to the claimant during the decision making process may
assist with the evaluation of their ability to manage their affairs. If making
interim payment to landlord, pending a decision set a deadline for concluding
enquiries.
The decision should be recorded on the claimant case records on the EDRMS
system. The record should include the salient facts and the conclusion
reached.
The officer will make one of the following decisions and write to affected
parties using standard letters:
The tenant is vulnerable and payments will be made to the landlord
The officer must consider whether the tenant has a short term situation and
can overcome any problems. If so, set an appropriate date to review the
decision. In some cases tenants will have long term situations in which case
payments to the landlord will be ongoing.
The tenant is not vulnerable and payment of LHA will be made to the
tenant
If the tenant has issues that the officer does not feel are serious enough to
warrant ‘vulnerable status’ there may be support that they can get and help
should be given to the claimant to identify these agencies.
Notifying the Decision
Where the tenant is vulnerable and payment will be made to the landlord
The officer should write to the tenant and/or their representative advising them
of:
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the decision
reasons for the decision
a date on which the this decision will be reviewed, if appropriate
appeal rights
details of any advice agencies, voluntary or statutory organisations that
may help them
details of the CAB money advice service if they don’t have a bank
account and will be receiving excess LHA
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The officer should write to the landlord to:
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advise them that LHA up to the contractual rent will be paid directly to
them on behalf of the tenant
request bank details if not already known
state the minimum length of time that this arrangement will stand if the
decision is to be reviewed.
Where the tenant is not vulnerable and payment will be made to the
tenant
The officer should write to the tenant and/or representative advising them of:
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the decision
reasons for the decision
appeal rights
details of any advice agencies, voluntary or statutory organisations
that may help them
details of the CAB Money Advice Service if they don’t have a bank
account
The officer should write to the landlord advising them:
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of their appeal rights
The officer should refer their decision to a supervisor for authorisation.
Reviewing a Decision
Where direct payments have been made but the decision has been reviewed,
the officer should contact the claimant or their representative.
Tenants are not expected to complete the standard form again or make
further written representations, it is sufficient to write to them or speak to
them, or their representative, over the telephone. However the form may be
useful to assist with a review.
If no response is received then payment should continue to the landlord.
After carrying out a review, the officer may decide that it is appropriate to
make direct payments indefinitely or that a further temporary period of direct
payments should be set and reviewed.
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