Landlord information

handbook Services, information and advice from Lewisham Council

introduction 2 What is housing benefit? 3 Who can apply for housing benefit? 3 What about council tax benefit? 3 How to claim housing benefit? 3 What information is needed to complete the claim? 4 When is benefit paid? 4 What responsibilities does the landlord have? 5 What information are landlords entitled to? 5 What housing benefit doesn’t cover 5 Paying Housing benefit to the landlord 6 local housing allowance (LHA) 7 do it online for landlords 10 recovery of overpayments 11 changes in circumstances 12 how is benefit worked out? 13 Applicable amount (AA) 13 Personal allowances 13 Dependants’ allowances 13 Premiums 14 Non-dependants deductions 15 Backdated awards of benefit 16 Discretionary Housing Payment (DHP) 16 Earnings disregards 17 Case studies 18 Disputing decisions 19 the Fraud Act (1997) 20 contrived tenancies 22 extended payments 23 benefit on two homes 24 failure to disclose information 24 brochures and forms 25 enquiries 25 contacts 26

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Introduction

This publication has been produced to provide answers to the questions that landlords and

letting agents often ask , as well as providing useful information about housing benefit.

However if you need more information, please email the housing benefit section at

housing.benefit@lewisham.gov.uk

Use our Do It Online website to access your payment details, landlord notifications,

payment schedules and to report a change in your tenant’s circumstances. To

register go to, https://myaccount.lewisham.gov.uk. Find out more about this under

the Do It Online section of this hand book.

Lewisham’s benefit section is committed to improving its services. In the past seven years it

has achieved a top rating of 4, meaning that auditors rated the service as excellent. This

performance is primarily judged in terms of turnaround times for processing housing benefit

claims, but there are also a range of service standards that the department tries to fulfil,

including:

• processing all new benefit claims within 10 working days of receiving all necessary

information

• advising claimants of any other benefits they may be entitled to, including income support

and tax credits

• processing all cancellations and changes in circumstances within five days of receipt

• responding to all correspondence within 10 working days of receipt

• processing 100% of new benefit claims accurately

• ensuring decisions about backdated requests and discretionary payments are made and

correctly recorded within 10 working days of the receipt of all necessary information.

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What is housing benefit?

Housing benefit is a Government scheme to help people on low incomes to pay their rent.

The scheme itself is means tested, i.e. the levels of award are based on the income of the

applicant and their ability to pay. The amount payable varies. The way the benefits are

calculated also varies according to the household make-up (i.e. who lives with the applicant)

and the amount of rent that is charged.

Who can apply for housing benefit?

Anyone who is liable to pay rent can apply for benefit. However, there are certain groups of

people who are not eligible, namely immediate relatives who share the accommodation with

their landlord (grown-up sons and daughters), some single full-time students and people with

capital or savings in excess of £16,000 (unless in receipt of Guarantee Credit). Some capital

is disregarded. The amount disregarded depends on the age of the claimant or partner,

Working age claimants first £6000 is disregarded

Pension age claimants first £10,000 is disregarded

What about council tax benefit?

Council tax benefit is administered in the same way as housing benefit, the only difference

being that the award is based on the council tax liability.

How to claim housing benefit

Claiming housing benefit or reporting a tenant’s change in circumstances couldn’t be easier.

New Claim – call 0208690 8444 to make an appointment for your tenant to see one of our trained staff. Their entitlement will be worked out straight away and they will leave with their entitlement letter.

Appointments are available at,

Catford AccessPoint Laurence House, Catford, SE6 4RU

Downham AccessPoint 7-9 Moorside Road Downham BR1 5EP

If your tenant is housebound, we can arrange a home visit. Email the request to housing.benefit@lewisham.gov.uk, giving the tenants full name, address, post code and a contact telephone number. Please identify your email with Home Visit in the subject field.

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What information is needed to complete the claim?

There are three essential requirements needed before an assessment can

be made.

1. Proof of identity (two items) and National Insurance numbers for

claimant and partner:

Proof could be a passport, driving licence, benefit books, birth certificate,

bank statement etc. If you are in receipt of benefits we will need to see

your award letter, or other official notification, showing name, address,

date and the amount of the award.

2. Proof of rent being either:

a) tenancy agreement

b) rent licence

c) current rent book with accompanying letter from the landlord

3. Proof of income being either:

a) five consecutive weeks/two consecutive months of payslips

b) proof of benefit received, normally the benefit award letter

c) proof of all savings (bank statement, account passbook) and investments, including

details of any stocks and shares etc (certificates).

In addition, we will require proof of income for any other members of the household, e.g.

non-dependants. All evidence must be original documents. We can no longer accept

photocopies.

When is benefit paid?

Benefit is normally paid from the Monday following receipt of the claim. However if the claim

is received in the week during which the tenancy started, the claim will be taken from the

start of the tenancy. If the applicant is in receipt of income support, or job-seekers allowance

income based, the claim will be made from the income support start as long as the claim is

received within one month of that date. It is therefore important not only that the claimant

applies as soon as possible, but that where there is a change of address they notify the

Department for Work and Pensions (DWP) immediately.

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What responsibilities does the landlord have?

Landlords who receive housing benefit payments from Lewisham Housing Benefits have

certain responsibilities in assisting us to administer the awards, as this will help to ensure

that the awards are correct and that no benefit is paid incorrectly. Landlords must inform

Lewisham Council’s Housing Benefit Office of:

• changes to the amount of rent charged

• changes in services included within the rent

• changes in the number of people living in the property including both moves in and out of

the property

• changes in circumstance or income of people living at the property

• if the tenant is eight or more weeks in arrears with their rent

• any circumstance resulting in rent payments being withheld.

What information are landlords entitled to?

When someone applies for benefit, the Data Protection Act restricts the information we can

give you without the written instruction from the claimant. If however, we do have written

instruction from the claimant, we can inform you of:

• the tenants for which benefit payments relate

• the periods for which payments relate

• the weekly amount of benefit awarded

• payments that have stopped and the reasons why

• a tenant who requests future payments to be made to them

• a deduction made for a previous overpayment.

What housing benefit doesn’t cover

A tenant’s rent sometimes includes elements relating to services provided which are not

covered by housing benefit, such as water rates, gas, electricity, heating, lighting or meals.

Standard deductions will be made for these from the claimant’s benefit, which could be

higher than the amount they actually pay.

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Housing benefit does not cover services such as personal laundry and cleaning, however

the following services will be covered if they are included within the rent:

• communal laundry facilities

• furniture and household equipment

• cleaning of communal areas

• services connected with provision of adequate accommodation such as general

management costs, lifts, gardens and rubbish removal

Paying Housing Benefit Directly To The Landlord

We can pay direct to the landlord as long as the claimant gives us written permission to do

so. Payments are made by BACS and we require the landlords back account details.

• Name and address of the bank

• Bank account number

• Bank sort code

• Payee name

If you wish the housing benefit to be paid directly to you,

New claims - , you should obtain this written permission at the point you sign up the

tenancy. The claimant should bring this document with them to their appointment.

Existing Claims – you should ask your tenant to give us written authority to change the

payee details to the landlord.

Please note the claimant can change their mind at anytime and ask for the payments to be

made to them. Where we receive a request for payments to revert back to the claimant, we

will write to the landlord first to advise them of the request.

There are circumstances when we must pay the housing benefit directly to the landlord.

• rent arrears - There are rent arrears equal to 8 weeks rent or more. It is the

landlord’s responsibility to tell us about this.

• the Department of Work and Pensions are already paying part of the claimant’s

income support to the landlord due to rent arrears

• the claimant is more than eight weeks in arrears with their rent

• it is in the tenant’s interest for payments to be made directly to their

landlord, e.g. when there is evidence of a mental illness

• the claimant has left the accommodation for which they are claiming

benefit and there is outstanding benefit due.

We can also make the first payment directly to a landlord (or third party)

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where, in our opinion:

• the claimant has not paid their rent in full for the period covered by

the payment

• the arrangement is in the publics best interest, for example, where we consider it is to

protect the public purse by minimising potential fraud

• there is reason to think the claimant may default with the first payment

• there are rent arrears and it is not appropriate for longer-term direct payments.

Housing benefit payments are always made 4 weekly in arrears

Rent Incentive Scheme

Where you have signed up a tenant via Lewisham’s Rent Incentive Scheme, there can be a

delay of up to 12 weeks before housing benefit payments commence. This is because

Lewisham Council will have already paid the first 8 weeks to the landlord and housing

benefit is paid 4 weekly in arrears.

All housing benefit payments are made by BACS. In addition to being a safer method of

payment, it ensures payments are received on time. It also help to reduce fraud and

increase the security of the payments.

Local Housing Allowance (LHA)

Housing benefit awards for tenants of private sector landlords are based on LHA, which is

calculated using the area where you live, number of occupiers in the property and household

size.

The Government has changed the way Housing Benefit is calculated for private sector

tenants from 1 April 2011.

Who will the changes affect?

The changes will only affect people who have their Housing Benefit paid under the Local

Housing Allowance rules, or are going to make a new claim for private sector

accommodation under the Local Housing Allowance rules (LHA).

What are the changes?

Under the new rules:

• The £15 excess paid to tenants who have a rent lower than the LHA is removed.

• The way LHA is calculated will change, so that the LHA amounts will be lower than

the pre April 2011 levels.

• New maximum figures for LHA that the council cannot exceed.

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• People who need an extra room to accommodate a carer who normally lives

elsewhere, but stays overnight to provide care, may be able to have an extra room

included in their Local Housing Allowance.

• Maximum number of bedrooms for LHA reduced from five to four bedrooms

• Anyone making a new claim on or after 1 April 2011 will not be able to have their

Housing Benefit paid above the LHA four bedroom rate.

Landlords who are already receiving payments for tenants who have an existing claim

(where the claim was made before 1 April 2011) will not be affected straight away.

If your tenant has been receiving LHA continuously at the same address since before April

2008 …

They may receive the same award until they have a change in their circumstances, this

means their rate will not go down from April but it will go down to the new rate immediately if

one of the following happens;

• They move home or change address;

• Their circumstances change and their claim ends;

• Someone joins or leaves their household and a different LHA rate applies.

If your tenant started receiving LHA after April 2008 ….

They will be affected and the amount they receive will go down. Although the changes are

being introduced from April 2011, their award will go down later as their claim will only be

determined on the reduced rate 9 months after their annual review (anniversary) date.

When is their anniversary date?

Their anniversary date is the date they first claimed LHA, for example, if they first claimed on

5th September 2008, their anniversary date would be 5th September. In this example, the

changes would affect them from 5 September 2011 but they would be protected from a

reduction in their LHA for a further 9 months and the reduction would only be made from

June 2012 i.e. 9 months after the Anniversary date of 5th September 2011.

You can check the current LHA rates on the Lewisham’s housing benefit web pages. Click

on Local Housing Allowance to open the LHA pages

How is the LHA calculated?

The LHA will be the maximum figure eligible for an award based on:

• the area lived in

• the number of bedrooms a claimant and their family needs

• income and savings

Under LHA, residents living in a property are entitled to one bedroom for:

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• every adult couple

• any other adult aged 16 or over

• any two children under 10

• any two children of the same sex aged 10 to 15

• any other child.

LHA figures will be sent to us on a monthly basis by the Valuation Office Agency and this

information will be made readily available.

The figures can be found at our AccessPoints, libraries, the CAB, Job Centre Plus offices

and on Lewisham’s web site.

However, joint tenancies and tenants with no non-dependants, sub tenants or boarders will

have their eligible rent based on that of a single person living in shared accommodation.

From April 2011, the maximum LHA rate payable for new claims is for the four bedroom rate.

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Do It Online For landlords

Lewisham no longer issues landlord housing benefit notification letters by post. You must

register for Lewisham’s Do It Online service in order to receive and view your notification

letters and payment schedules.

The ‘Do It Online’ website allows you to:

• check housing benefit payments made to you in respect of your tenants

• view the payment history and find out when the next payment is due

• download and print your notification letters and schedules

• tell the housing benefit section about any changes in your tenants circumstances.

Once you are registered, you will receive an email alert every time there is

a new document for you to view.

To register, just go to https://myaccount.lewisham.gov.uk and follow the on screen

instructions. Save this website address to your favourites.

Once registered you will receive an authentication email to confirm your

email address. When you receive the email:

• Log on to the landlord site.

• Enter the code on the email.

• In three or four days you will receive an unlock letter through the post to

enable you to activate your account. The letter will be posted to the address we hold for you

or your organisation on our system and will have the first five characters of your email

address in the name field.

• On receipt of your unlock letter, log into the site and enter your unlock code when

prompted.

• Click ‘add account’ and enter your creditor reference (this is shown on your notification

letters and schedules and is usually a 4, 5 or 6 digit number).

Your staff can register themselves online to have multiple access.

Rent Incentive Scheme

Landlords who have signed up a tenant via Lewisham’s Rent Incentive Scheme for the first

time, will not be able to register for Do It Online until the first housing benefit payment is

issued. It can be up to 12 weeks from the date of tenancy until housing benefit payments

commence. This is because Lewisham Council will have already paid the first 8 weeks to

the landlord and housing benefit is paid 4 weekly in arrears.

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Recovery of Overpayments

All claimants are notified of their responsibility to advise certain changes in circumstance.

However, it is equally important for landlords who receive housing benefit on behalf of their tenant to notify us of the changes.

These are namely where:

• the amount of rent being charged has changed

• tenants move out

• friends / relatives of tenants move in or out

• the tenant sub-lets or takes in a boarder

• the tenant falls into arrears in excess of eight weeks

• the tenant starts or ceases to receive income support

• a dispute arises between the tenant and the landlord that involves rent being

withheld.

Complete the online change of circumstances form on Lewisham’s Do It Online website.

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Changes in circumstances

When changes occur to a claimant’s circumstances, it can result in a revision to the amount

of benefit being awarded. In some instances this will increase the award, and the failure of

the tenant or landlord to notify us may cause unnecessary financial hardship. Alternatively,

this may result in an overpayment of benefit being made, which we will actively seek to

recover from whoever received the benefit.

Overpayments can arise if the claimant:

• stops claiming income support

• starts working

• moves out

• has a change in their household (e.g. someone moves in or out).

You must tell us straight away about changes in your tenant’s circumstances so we can

amend the benefit award and reduce any overpayments. This will minimise financial

hardship when we ask the recipient to pay back the overpaid benefit.

Overpayments

Overpayments can be recovered in a number of ways:

• from the tenant from future benefit payments

• from the tenant or the landlord by issue of an invoice

• from the landlord from ongoing benefit for other tenants.

Councils are able to recover overpayments from a landlord (or letting agent) for a tenant (or

ex-tenant) by taking it from another tenant’s ongoing benefit. Where overpayments are

recovered this way, the tenant from whose benefit the overpayment has been recovered

will not be liable for rent arrears.

For example: Mr Adams is the tenant of Mr Brown. Mr Adams moves out and Mr Brown

receives benefit of £200 which he is not entitled to. This becomes an overpayment. Mr

Castle is another tenant of Mr Brown and receives housing benefit. The council can decide

to recover Mr Adams’ overpayment from Mr Castle’s ongoing benefit. This would not

cause Mr Castle to build up rent arrears.

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How is benefit worked out?

Housing benefit calculations are based on three main elements, namely eligible rent,

household make-up and income, which are applied against an ‘applicable amount’. Let’s

look at each in more detail.

Applicable amount (AA)

This is the minimum amount that the Government has decided covers the ‘needs’ of the

claimant. It varies depending on the claimant’s situation. The AA is made up from a

combination of:

• personal allowances

• dependants’ allowances

• premiums.

Personal allowances

There is a table of allowances based on the claimant’s age and marital status. The actual

amounts are shown below:

Claimant type Age band Personal allowance

Single person Under 25 £53.45

25 and over £67.50

Lone-parent Under 18 £53.45

18 and over £67.50

Couple Both under 18 £80.75

One or both over 18 £105.95

Any Age –entitled to main

Phase ESA £105.95

Dependants’ allowances

These are in addition to personal allowances and are awarded for each dependant child in

the claimant’s household. They are paid at a rate of £62.33 per child.

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Premiums

These are in addition to the personal allowance.

Premium Criteria Amount

Family premium Dependant child in household £ 17.40

Lone parent premium For certain single parents

solely responsible for a

a dependant child £ 22.20

Personal allowances for people over 60_______________________________

Single claimant Aged 60-64 £137.35

Aged 65 or over £157.90

Couple Both members aged 60-64 £209.70

One member or both members

aged over 65 £236.80

Premiums (over 60 only)______________________________________________

Severe disability premium

Single £ 55.30

Couple - one qualifies £ 55.30

Couple - both qualify £110.60

Under 60__________________________________________________________

Disability premium single* criteria below £ 28.85

couple* criteria below £ 41.40

Disabled child premium Child is blind or receives DLA £ 53.62

* The criteria for qualifying for a disability premium is:

a. Receipt of disability living allowance, disability working allowance, attendance allowance,

mobility allowance, mobility supplement, invalidity pension or severe disability allowance.

b. Receipt of payment through the invalid vehicle scheme or war pensioner’s vehicle

scheme, receipt of a vehicle via the Motability Scheme or provided with a vehicle by the

NHS.

c. If registered blind.

d. If incapable of work and has been continuously incapable for 28 weeks.

A couple will receive the couple’s rate if either of them satisfies a, b, or c above, or the

claimant (not the partner) satisfies above.

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Non-dependant deductions

These are deductions made from a claimant’s rent if they have any grown-up children or

lodgers etc, living with them. This is to reflect cases where it is reasonable to expect a

contribution to the rent to be made to the claimant. The deductions are based on the status

and income of the non-dependant and are taken whether or not the anticipated

contribution is made. These deductions are as follows:

Non-dependant in work Weekly deduction

with (gross) income of: (£)

Below £122 £ 9.40

Between £122and £179.99 £21.55

Between £180 and £233.99 £29.60

Between £234 and £309.99 £48.45

Between £310 and £381.99 £55.20

Income in excess of £386.99 £60.60

Others - aged 25 or over and on income support

or JSA or 18 or over and not in remunerative work £ 9.40

There are also occasions where there is no deduction for a non-dependant.

These fall into two groups.

There are no deductions if the non-dependant is:

• under 18 years of age

• a boarder or a sub-tenant

• a carer for whom the claimant pays a charge

• under 25 and receiving income support or job-seekers allowance income based

• a full-time student

• in prison or otherwise detained

• receiving youth training allowance

• their main home is elsewhere.

There are no deductions if the claimant or partner is:

• registered blind

• in receipt of the care component of disability living allowance

• in receipt of attendance allowance

For people over 65 who make their first claim or have a non-dependant

move in, the deduction is delayed for 26 weeks.

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Backdated awards of benefit

Housing benefit is normally paid from the Monday following receipt of an application.

However, there are certain cases when benefit can be backdated. Such awards can only be

considered for a maximum of six months if the claimant is of working age or three months if

the claimant is of pensioner age prior to the date the request is received.

On receipt of the request the council will consider whether or not there was ‘good cause’ for

the claimant not having applied at the correct time. The final decision, as to whether or not

the request is granted, is based on this. Before making its decision, the authority may decide

that additional information must be provided to substantiate the request.

‘Good cause’ includes whether the claimant has:

• been incapacitated and was unable to claim earlier

• recently left hospital

• been unable to manage their own affairs

• been given the wrong advice by a council officer and advised against claiming

• been unaware of availability of benefits because of age, language difficulties, reading

difficulties or other reasons making it difficult to claim

• any other good reason for not claiming earlier.

Discretionary Housing Payments (DHP)

Discretionary Housing Payments (DHP) are not an award of housing or council tax benefit.

They are stand-alone top ups made at the discretion of the council in cases where it is

considered that extra help is needed to meet housing costs.

DHP funding is provided by central government, but it is strictly limited. The amount of

money given to Lewisham for the financial year 2011/12 is £253,914.

To ensure that the scheme is administered fairly each application is considered on its merits.

Your circumstances do not have to be exceptional, but you do have to demonstrate good

reason(s) for requesting additional support.

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Eligibility

The following conditions must be met in order for a DHP to be considered:

• you must be in receipt of housing benefit and/or council tax benefit

• you must not already be in receipt of 100% of your eligible HB and/or CTB.

Criteria

The Department for Work and Pension’s guidance for councils regarding the administration

of DHP is very limited. It is therefore left to each council to set its own criterion for

determining claims. As a general rule applicants are asked to note that for a number of

reasons Lewisham considers DHP awards to be a means of helping people get over short

term difficulties.

Decisions

We will send you a decision notice within 10 working days of the date that we receive your

application – this letter will explain the reason(s) for our decision.

Disputes

There is no right of appeal associated with DHP decisions, but you can ask us to look at your

situation again if you disagree. However, if the original decision is upheld there are no further

review options.

Changes in circumstances

If you are granted a DHP you must tell us immediately about any changes in your

circumstances. If you do not tell us in a timely manner you may be overpaid and if this

happens you will have to pay the money back.

Earnings disregards

For people in employment, an amount of their pay is disregarded when calculating benefit.

These are:

Group Weekly disregard

Lone parents £25

Claimant receiving disability or carer’s premium, or is

part-time fire-fighter or member of the Territorial Army. £20

Claimant is one of a couple £10

Single claimant £ 5

The disregards are taken from the net weekly earnings figure. Only one of these disregards

can be made even if the claimant (and partner) falls into one or more of these categories.

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Case studies

Example one

Mrs Khan, aged 65, lives alone in a one-bedroom flat with a weekly rental

of £92. Her income is a state pension of £165.40.

Therefore:________________________________________________________

Applicable amount (AA) £157.90

Total weekly income £165.40

Income exceeds AA (£165.40 – £157.90) £ 7.50

65% of the ‘excess’ (£7.50 x 65%) £ 4.88

Total rent £ 92.00

Less 65% excess (£7.50x65%) £ 4.88

Weekly housing benefit £ 87.12

Example two

Mr Smith is a lone parent, aged 35 with two dependant children aged 7

and 9. He lives with his children in a three-bedroom house with a weekly

rent charge of £214. He works for 15 hours a week with a weekly net

wage of £180. He also receives child benefit of £33.20 and child tax

credit of £45. This is the first time he has claimed housing benefit.

Therefore:

Applicable amount (AA) £ 67.50

Family premium (inc. lone parent premium) £ 17.40

Dependant allowances £124.66

Total £209.56

Total weekly income (£258.20 less £25) £233.20

Income exceeds AA (£233.20 - £209.56) £ 23.64

65% of the ‘excess’ (£35.21 x 65%) £ 15.37

Total rent £214.00

Less 65% excess £ 15.37

Weekly housing benefit £198.63

Example three

Mrs Stavros lives with her two adult sons, Carlos and Guiseppe. She is in receipt of income

support and therefore is entitled to a 100% award of her eligible rent of £198 per week.

However, Carlos is 25 and working full time (gross income £121 per week), while Guiseppe

is 32 and receiving income support as well. Non-dependant deductions need to be made

from Mrs Stavros’ eligible rent.

Therefore:

Non-dependent deductions

Carlos, gross income £121.00, deduction £ 21.55 per week

Guiseppe, income support, deduction £ 9.40 per week

Total deductions £ 30.95 per week

Eligible rent £198.00

Non-dependent deductions £ 30.95

Weekly housing benefit £167.05

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Disputing decisions - how to challenge or dispute a decision

Anyone who is a ‘person affected’ has the right of appeal if they disagree with a decision or

does not understand how or why we have made a decision. Generally this will be the

claimant.

Landlords have the right to appeal against the following decisions only,

• not to pay the landlord direct

• to recover an overpayment from the landlord

If you disagree with our decision, you can:

• request a statement of reasons

• request a revision

• make an appeal

You can ask for a statement of reasons if you want us to provide more detail about how we

calculate your entitlement.

You can ask for a revision if you believe that we have made a mistake, or if you think that

we have not considered all of the information you have given us.

You can appeal if you believe that our decision is wrong, or if you think that we have applied

the regulations governing the Housing and Council Tax Benefit Scheme incorrectly. We will

always look at your claim again, and if we do not change our decision we will refer the matter to an independent tribunal.

Should you wish to exercise your right to any of the above, you must write to us within one

calendar month of the decision you are querying. The letter must be signed by you, even if

someone acts on your behalf. If you decide to appeal, you must set out clearly your

reason(s) and grounds for disputing our decision. Please include any supporting

documentation. We cannot accept appeals or requests for revisions and statements of

reasons by email.

Claimants have the right to appeal or request a revision or statement of reasons for any

decision made about their claim. The process is the same as above. Should a claimant

wish to exercise their right to any of the above, they must contact us in writing within one

calendar month.

If they decide to appeal, their letter must set out clearly their reason(s) and grounds for

disputing our decision – they should also include any other written information.

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The fraud act

The introduction of the Fraud Act (1997) gives councils more power to recover housing

benefit overpayments and penalise landlords for failing to disclose information that result

in higher amounts of benefit being paid.

From 6 September 1999 entitlement to housing benefit and council tax benefit has been

conditional on Section 19 of the Social Security Administration (Fraud) Act 1997 being

satisfied. Section 19 requires claimants to provide a National Insurance number (NINO) as a

qualifying condition of benefit.

To qualify for housing benefit/council tax benefit an individual is required to provide

confirmation of a NINO for themselves and their partner and evidence or information to

corroborate their identity as the owners of those NINOs.

Where an individual is not able to provide confirmation of their NINO, or does not have one,

the council should complete form DCI1 and send it to the local Benefits Agency (BA) district.

They will then undertake a search of the Departmental Central Index for the appropriate

NINO and, if none exists for that individual, they will arrange an interview with them to

allocate one.

Frequently asked questions and answers

Whom does Section 19 apply to? Does it cover dependent children

staying on at school and non-dependants living in the household?

No. Only the claimant and their partner will have to satisfy Section 19.

For example, in Second Adult Rebate cases the claimant will have to

satisfy Section 19, but the second adult will not.

Will Section 19 apply to claims where the benefit is paid directly to a

landlord or to claims from council tenants where no payment is

actually made?

Yes. Anyone who claims housing or council tax benefit will have to satisfy

Section 19. Landlords as well as claimants can commit fraud and it is a

drain on the public purse irrespective of whether the claimant benefits

financially or in kind.

Where a claimant does not know their NINO, or does not have one,

will they have to wait until one is traced or issued before they can be

awarded housing or council tax benefit?

No, housing or council tax benefit can be paid pending, provision of

information or evidence that enables the NINO to be ascertained.

the Fraud Act (1997)

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What will happen if the Benefits Agency (BA) refuses to allocate a

NINO to a particular claimant?

This will only happen if serious doubts arise at their interview about the legitimacy of the

claim. If a NINO is refused the BA will give the reason when they complete and return a DCI

1 form. As the housing/council tax benefit would have been paid pending the information,

this would have to be cancelled and the overpayment would have to be repaid. NB:

individuals whose travel documents are marked ‘no recourse to public funds’ are

automatically excluded from most benefits. It is possible that the BA may refuse a NINO for

such claimants in the mistaken belief that there is no entitlement to housing or council tax

benefit.

The wording of Section 19 implies that the claimant will have to provide proof of the

actual allocation of their NINO. Is this the case?

No. Any genuine document which shows the claimant’s NINO (such as a

benefit book, wage slip, tax document, etc.) will be sufficient proof that

the number was allocated to them.

Some claimants from vulnerable groups stay in a hostel for only a

few days. How should such claims be treated?

It is not intended that either Section 19 or the Verification Framework should disadvantage

members of vulnerable groups (victims of domestic violence, asylum-seekers, etc.) or the

hostels who provide accommodation for them. Many members of vulnerable groups have

little or no documentation to prove who they are. However, in most cases it will be possible

to establish their identity using the Verification Framework instructions as these concentrate

on the whole picture that the individual presents. If the claimant stays for only a few days

and benefit is to be paid to them they are likely to pursue their claim personally. However, if

HB is to be paid directly to the hostel the claimant may already have left by the time the

claim is examined. It may therefore be difficult to establish whether Section 19 is satisfied in

these cases.

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Contrived tenancies

Many benefit cases have been either disallowed or disputed because there are

doubts about the validity of the claim. New rules have now been introduced that

make it far clearer what claims will no longer be allowed, because they either have been

created (or the rent liability increased) to take advantage of the housing benefit

scheme or the claimant could have been accommodated without a liability.

Sometimes tenancies are created (or the rent liability increased) to take advantage of the

housing benefit scheme; sometimes the claimant could be accommodated without a liability.

Housing benefit legislation is clear on what types of claims are disallowed:

• Non-commercial tenancies – i.e. where part of the tenancy agreement includes items such

as domestic chores being done for the landlord in return for rental payments

• A person who rents a former joint home from their ex-partner, where the claimant is the ex-

partner of the landlord, whether the “ex” means married or unmarried

• A person who is responsible for a child of their landlord

• Where the landlord is the parent of a child who the claimant is responsible for

• A person who rents their accommodation from a company of which they are a director or

an employee. This also applies where the claimant’s partner, ex-partner or partner’s ex-

partner are a director or

• an employee of the landlord. However, the rules allow exemption where there is evidence

that the tenancy was NOT created to take advantage of the housing benefit scheme

• A person who rents their accommodation from a trust of which they (or their child) are a

trustee or beneficiary. Where the claimant, a partner or close relative is a trustee the

claimant will not be eligible for housing benefit. There is an exemption where there is

evidence that such an arrangement was NOT made to take advantage of the

housing benefit scheme.

• A person who previously owned the property that they now rent relates

to either the claimant or their (ex) partner

• A person who occupies a property as a condition of their employment, i.e. tied cottages.

Where the claimant occupies a property as a condition of their employment there will be no

HB eligibility.

There is no suggestion at this stage that landlords are entering into contrived arrangements

but it is something they will need to be aware of when they let properties. In addition,

claimants will now be asked to provide both details of the landlord/agent, and, where the

property is managed on behalf of an owner, their name and address.

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Extended payments

This is a scheme that allows people starting work who have been receiving housing

benefit, to have their award extended for a further four weeks once they start work.

In order to qualify, the claimant must fulfil certain criteria:

• they have been continuously in receipt of income support /job seekers allowance(IS/JSA)

for at least the past 26 weeks

• they are starting work and expect to be employed for five weeks or more

• they are still liable for rent and/or council tax.

The scheme has recently been extended to those that have been receiving incapacity

benefit and severe disablement allowance.

Payment will be made for the four weeks immediately after they have stopped claiming

IS/JSA. The new award will be calculated on their income prior to starting work, i.e. where

they have been receiving full benefit prior to starting work they will also continue to do so

afterwards as well.

Anybody wishing to claim extended payments must contact the Council, the Job Centre or

the Benefits Agency within four weeks of starting work and their benefit ending.

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Benefit on two homes

Many enquiries are received from housing associations and landlords about payment of

benefit on two homes. Most of the enquiries relate to a period after a tenant has moved out,

and where they had moved into a new property without letting their old landlord know of

the move.

There are limited circumstances when payment can be made on two homes at the same

time. These are:

• where the claimant has been forced to move and remain away from their home through

fear of violence (either domestic, racial harassment or otherwise). In these cases the benefit

can be paid for a maximum of 52 weeks, however the claimant must be intending to return to

occupy their former home.

• where, with a couple, one of them is a student and lives elsewhere to attend a training

course and their occupying two different homes is unavoidable.

• where the claimant’s family is of such a size that they need two separate dwellings.

• where the claimant has moved into a new home and there is an unavoidable liability on

both homes.(NB common examples include cases where a claimant changes address and

their new liability overlaps with that at their old address. The dual liability is not considered

unavoidable as the claimant could have been expected to inform the previous landlord of

their intention to move and there will be no recourse to benefit being paid on both the

homes.)

• where a change of address is pending but cannot be completed until adaptations (e.g. for a

physical disability) have been made.

Failure to disclose information

This relates to cases where benefit is being paid and a landlord or letting agent has withheld

information that would have affected the award of benefit, e.g. that the claimant moved out. If

the council decide that the landlord knew about the change in circumstance but failed to

disclose it, there would be grounds for prosecution. However, the council would have the

option to fine the landlord instead. The levels of the fine are 30% of the total amount of

benefit overpaid as a result of failing to disclose the information and is recoverable in the

same way as benefit overpayments.

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Brochures and forms

Lewisham produces documentation that provides advice on benefits. This documentation is

readily available on request, free of charge, to all landlords and can be received by writing to

the benefit section.

Enquiries

Do It Online For Landlords

If you need help regarding the Do It Online Service, email hbquality@lewisham.gov.uk

For other enquires, contact the benefit section on 020 8690 8444, or you can e-mail

housingbenefit@lewisham.gov.uk . Alternatively you may contact one of the senior officers

in the benefit section. They are shown overleaf with details of their responsibility along with

their respective telephone numbers.

Lewisham produces documentation that provides advice on benefits. This documentation is

readily available on request, free of charge, to all landlords and can be received by writing to

the benefit section.

If you have difficulty understanding this document in English please call the number below.

020 7253 7700 Also call this number for other formats, including Braille, large print,

audio tape, BSL or computer disc.

Email: lewisham@pearllinguistics.com Typetalk: 18001 020 7253 7700

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Contacts

Head of Public Services

Ralph Wilkinson

020 8314 6040

The Benefits Manager

Mick Lear

020 8314 6034

Assessment Manager

Betty Hyman

020 8314 9565

Assessment Manager

Eileen Bailey

020 8314 8122

Team Leaders

Housing Benefit Processing Managers

Leigh Cheevers

020 8314 6032

Sandra Moore

020 8314 6033

Louise Prenton

020 8314 6278

Yvonne Smith

020 8314 8204

Appeals and enquiries

Gary Thorpe

020 8314 3695

Quality & Control

David Murray

020 8314 6919

Concessionary awards team

Claire Pierpoint

020 8314 6229

Write to the benefits section at

PO Box 58996

London

SE6 9JD

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Visit www.lewisham.gov.uk for all the latest news and information about your Council’s

services and job opportunities

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