You are here: Home: Council and democracy: Benefits: Local housing allowance

Local housing allowance

Local Housing Allowance safeguards

This guidance aims to help minimise the risk of tenants falling into arrears with their rent and losing their home. It also seeks to reassure landlords that their rent will be paid.

The aim of this guidance is intended to:

• Provide a safeguard for vulnerable tenants and reassure them that their benefit will be paid appropriately
• Prevent rent arrears and tenants being put at the risk of eviction
• Help to sustain tenancies for vulnerable tenants
• Help tenants to take responsibility for receiving direct payments of Local Housing Allowance (LHA) where appropriate
• Help to put tenants in touch with other agencies where necessary
• Give people the opportunity and support to manage their own financial affairs
• Reassure landlords that their rent will be paid if they have vulnerable tenants
• Work with landlords where the tenant consistently fails to pay their rent
• To make reasonable, fair and consistent decisions
• Promote a transparent and simple process that is widely understood
• To treat each case individually and not make assumptions about peoples situations.

This guidance is not intended to:

• Replace any support that is being provided to allow individuals the opportunity to be responsible and be in control of their own finances
• Replace the services already available throughout Calderdale for tenants who require money or debt advice
• Be used by landlords to circumvent the aims of LHA set out by Government
• Be a blanket policy for agencies providing support to private tenants.

Paying LHA to landlords instead of the tenant

Some tenants may find it difficult to budget for and pay their rent.  Safeguards have been put in place to comply with the Department for Work and Pensions (DWP) guidance and regulations.  The Benefits Assessment Unit will have the discretion to make LHA payments to the landlord if they consider:

• That the tenant is likely to have difficulty managing their own affairs
  For example, if the tenant is known to have learning disabilities or a drug / alcohol problem that would mean they are likely to have difficulty handling a budget (see section 1)
• That the tenant is unlikely to pay their rent
  For example, if the Benefits Assessment Unit is aware that the tenant has consistently failed to pay the rent on past occasions without good reason (see section 2)

The Benefits Assessment Unit will also consider paying direct to the landlord where there are:

• Rent arrears and the 8 week rule can be applied
• Tenants are having deductions made from their Income Support or Jobseekers Allowance to pay off rent arrears

See Section 3 for more information.

Section 1

Identifying people who are likely to have difficulty managing their affairs

Introduction

The amended Housing Benefit regulations allow for payments of LHA to be made directly to the landlord where the Benefits Assessment Unit considers that the tenant "is likely to have difficulty managing his affairs".  The intention is to prevent tenants who are likely to experience difficulties from falling into rent arrears.

The phrase "is likely," means that there must be a degree of certainty that the tenants will be unable to manage their own affairs.  It is not sufficient to assume that there is a possibility that the tenant may have a difficulty. Each request will be thoroughly investigated.

The Benefits Assessment Unit must distinguish between tenants who choose to manage their finances in a less than organised way and those that genuinely have difficulty managing their affairs.

Tenants who are likely to have difficulty managing their affairs are deemed to be 'vulnerable'.  Some tenants may wish to be classed as vulnerable simply because they would prefer to have payments sent directly to their landlord.  The 'vulnerability' provision cannot be used to get around the fact that there is no longer provision for a tenant to request direct payment to their landlord.  In most cases there will be a need for evidence to be provided by professionals such as Doctors, Social Workers, and Probation Officers etc.

Dealing with representations

In most cases we will identify potential vulnerable cases through representation by one of the following sources:

• The tenant
• Friends and family of the tenant
• The landlord
• Welfare groups, money advisors
• Social services, GPs and probation officers
• Jobcentre Plus and the Pension Service
• Support services

A written request can be made for direct payment of LHA to the landlord by completing the attached request form (appendix A). This form must be forwarded to the Benefits Assessment Unit along with all appropriate supporting evidence. 

If evidence of vulnerability is not provided we will consider the individuals current circumstances in order to determine their vulnerability.  It may be that until our investigations are complete that the decision to pay LHA direct to the landlord is made on a provisional basis.  

Appointees

Tenants who have an appointee will not be considered as 'vulnerable' as they already have someone who has been appointed to act on their behalf.

Examples of vulnerability may include:

• Tenants with learning disabilities
• Tenant has a medical condition such as mental ill health, Alzheimer's disease or a terminal illness
• Illiteracy or inability to speak English
• A person with alcohol, substance or gambling addition
• Severe debt problems, recent County Court judgements
• A person who has recently experienced changes in their lifestyle that means they are temporarily unable to deal with their financial affairs. For example bereavement, fleeing a violent relationship, leaving prison, leaving care or homelessness

This list is not exhaustive and there may be other causes of vulnerability that prevents the tenant from receiving direct payments of LHA.

Possible sources for evidence of vulnerability

Learning disabilities:                          Letter from support provider, GP or social worker 

Medical conditions:                           Letter from GP or hospital

Illiteracy or inability to speak English: Letter from support worker

Substance, alcohol and gambling:      Letter from GP, hospital, support or care worker

Severe debt problems:                       Letter from solicitors, creditors, help groups, court order

Inability to open a bank account:        Letter from bank or money advisor

Section 2

Identifying people who are unlikely to pay their rent

Introduction

The amended Housing Benefit Regulations allow for payments of LHA to be made directly to the landlord where the Benefits Assessment Unit considers that "it is improbable that the tenant will pay his rent".  The intention is to protect tenants from falling into rent arrears.

The phrase "is improbable," means that there must be a degree of certainty that the tenant will not pay his rent.  It is not sufficient to assume that there is a possibility that the tenant may not pay his rent. Each request will be thoroughly investigated.

• The Benefits Assessment Unit will need to distinguish between tenants.
• Those who are genuinely unlikely to pay their rent and
• Those who may claim that they are not likely to pay their rent because they would prefer not to take responsibility.

Unless contrary evidence is received the Benefits Assessment Unit will assume that all tenants receiving LHA will pay their rent.  Therefore payment will be made to the tenant unless any of the other criteria for making payment to the landlord are met.

Dealing with representations

A written request can be made for direct payment of LHA to the landlord by completing the attached request form (appendix A).  This must be forwarded to the Benefits Assessment Unit along with all appropriate supporting evidence. 

Indicators that a tenant may be unlikely to pay their rent

• A past history of bad debts
• Evidence of previous rent arrears
• Failure to co-operate with an investigation may lead us to decide that they are unlikely to pay their rent
• A tenant has previously abandoned a property leaving rent arrears

Examples of evidence required

• Up to date rent book
• Rent account statement (see Appendix B for example)
• Court documents which affirm rent arrears
• Eviction notification due to rent arrears

The landlord will need to provide evidence of rent arrears.  This should confirm when payments were due, when payments were received and be signed by both the tenant and landlord.

Appointees

Tenants who have an appointee will not be considered as 'vulnerable' as they already have someone who has been appointed to act on their behalf.

Section 3

Rent arrears and the 8 week rule

Calderdale Benefits Assessment Unit is still required to make a decision and pay the landlord where the tenant:

• Has arrears of 8 weeks or more
• Is having deductions made from their Income Support or Jobseekers Allowance to pay off rent arrears

In these situations LHA will be paid to the landlord unless:

• There are any reasons under the 'Fit and Proper' regulation that indicate that the landlord should not receive direct payment
• The overriding interest of the tenant is not to make payment to the landlord. 

In these cases a review period will be set.  The review will look to see if arrears are reducing or have reduced below 8 weeks, or the deductions from Income Support or Jobseekers Allowance have ceased.

Under LHA the Benefits Assessment Unit has the discretion to make payment of any excess LHA to the landlord in order to assist in the reduction of or repayment of rent arrears.

Rent arrears

The DWP takes the view that a person cannot be in rent arrears in respect of a period that has not yet been served.  When the Benefits Assessment Unit is considering payment to the landlord they will look at any shortfall between housing benefit paid and rent charged, which has not been paid. It will also look at whether the landlord has made any attempt to collect.  It may be that the lack of action from the landlord has contributed to the arrears.  Therefore a more recent history of non-payment of rent will be considered in these circumstances.

Evidence required

• Up to date rent book
• Rent account statement (see Appendix B for example)
• Court documents which affirm rent arrears
• Eviction notification due to rent arrears

The landlord will need to provide evidence of rent arrears.  This should confirm when payments were due, when payments were received and be signed by both the tenant and landlord.

Section 4

Making a decision

When a decision has been made, affected parties will be notified in writing.

Where LHA will be paid to the Landlord

The Benefits Assessment Unit will write to the tenant and/or their representative advising them of:

• The decision
• The reasons for the decision
• When the decision will be reviewed
• Appeal rights
• Any advice agencies, voluntary or statutory organisations that offer help and support

A letter will also be sent to the landlord advising that:

• LHA up to the contractual rent will be paid directly to them on behalf of the tenant
• Bank details have not been received to make payment by BACs
• The minimum length of time that this arrangement will stand until the decision is reviewed

Where LHA will be paid to the tenant

The Benefits Assessment Unit will write to the tenant and/or their representative advising them of:

• The decision
• Reason for the decision
• Appeal rights
• Advice leaflet on basic bank accounts (if account not currently held)
• Any advice agencies, voluntary or statutory organisations that offer help and support

A letter will also be sent to the landlord advising:

• Their appeal rights if they have made a request for direct payment
• That the tenant is receiving LHA provided that permission is given by the tenant (see sharing information with your landlord on the claim form) 

Money advice

Information will be available to tenants to help them obtain and manage a basic bank account. Advice can also be offered to tenants on budgeting and prioritising financial commitments.  Where a tenant has financial or debt problems a referral to an appropriate money/debt advice agency will be offered to the tenant.

Appeal rights of persons affected by a decision of LHA

As is currently the case any person affected by a decision relating to the direct payment of LHA may appeal against that decision.  Persons affected may include the tenant or the landlord.

The affected person can ask the Benefits Assessment Unit to review any decision made regarding direct payments of LHA.

They can:

• Ask for an explanation of the decision
• Ask the Benefits Assessment Unit to reconsider the decision
• Appeal against the decision

In all cases the person affected must contact the Benefits Assessment Unit in writing within one calendar month from the date of the decision. 

back to top

Or ring our LHA Hotline on 01422 393621

Contact the Benefit Assessment Unit

In writing:       Calderdale MBC
                       Benefits Assessment Unit
                       PO Box 660
                       Halifax
                       HX1 1TZ

By telephone: 0845 245 8000
                       Lines open Monday - Thursday (8.45 - 17.30)
                       Friday (8.45 - 17.00) 

By fax:            01422 393658

By email:        lha@calderdale.gov.uk

In person at:   Calderdale Benefits Assessment Unit
                       Northgate Entrance   
                       Princess Buildings 
                       Halifax
                       HX1 1TP

                       Office open Monday - Wednesday (9.00 - 17.00)
                       Thursday (10.00 - 17.00)
                       Friday (9.00 - 16.30)