• Peterborough Homes
• Peterborough Estate Agents

1.1   LHA is a major change to the Housing Benefits regulations and forms part of the Government's HB Reform Programme

 

1.2   LHA is a flat rate allowance based on the size of the household and the area in which the claimant / tenant lives. This means that households of a similar composition in the same area will have their HB based on the same rental level. There are no changes to the HB entitlement rules, the scheme will continue to be a means tested benefit once a liability to pay rent has been established.

 

1.3   The Country has been split into a number of Broad Rental Market Areas (BRMA's) by the Rent Officer Service (ROS) based on five key factors relating to where a person would reasonably be expected to access health, education, recreation, personal banking and shopping facilities. Peterborough City Council (PCC) has one single BRMA.

 

1.4   LHA applies only to the Private Rented Sector and will apply to all new claims received on or after 07.04.08 and to any existing claimants that move on or after that date and also continue to claim HB.

 

1.5   PCC has a total caseload of 15,900 (as at 31.01.08), with xxx claims in the private rented sector.

2.1   One of the main principles of the new legislation is that tenants should be encouraged to be responsible for their own financial affairs, including the payment of their rent. Therefore the circumstances in which the local authority can make payments of HB direct to the landlord have been restricted.

2.2   Essentially, payment to the landlord is restricted to those cases where the tenant is 8 or more weeks in arrears, (as per the existing legislation) and those cases where the customer is considered to be in need of safeguard action.

2.3   There's no definition of who might require safeguard action within the legislation, instead it is left to each local authority to make their own judgements on which cases fall into this category. The overriding principle is that each case MUST be considered on its own merits.

2.4   The 'Safeguarding Policy' details the type of cases that could be considered and the evidence that is needed to substantiate payments being made to a landlord.

3.1   There are no financial implications in this report as the policy does not influence the amount of HB paid, only the recipient of the payments of HB.

3.2   The adoption of a 'Safeguarding Policy' makes it easier for the local authority to deal with appeals that may be received against their decision (made under Regulation 96).

3.3   The local authority has received a total of £xxx,xxx from the Department for Work and Pensions (DWP) to offset costs associated with the introduction of the new scheme, e.g. software development, advertising.

4.1   The local authority has considered all equality and diversity issues to ensure that no-one is treated adversely

 

4.2   The 'Safeguarding policy' has been subject to an impact assessment

5.1   The Housing Benefit (Local Housing Allowance and Information Sharing) Amendment Regulations 2007

5.2   Rent Officer (Housing Benefit Functions) Amendment Order 2007

 

5.3   Housing Benefit (Local Housing Allowance, Miscellaneous and Consequential) Amendment Regulations 2007

5.4   Housing Benefit (State Pension Credit) (Local Housing Allowance and Information Sharing) Amendment Regulations 2007

5.5   Welfare Reform Act 2007 (Commencement no 4 and Savings and Transitional Provisions) Order 2007

6.1 PETERBOROUGHCITY COUNCIL'S SAFEGUARDING POLICY

1.1 Local Housing Allowance (LHA) will come into effect on 7th April 2008. It is the cornerstone of the Government's Housing Benefit reform programme, which aims to simplify Housing Benefit and ensure that it supports the wider objectives for welfare reform.

The six fundamental aims of the Local Housing Allowance Scheme are to promote the following:

1.1.1 Fairness - LHA bases the maximum amount paid to tenants on the size, composition and location of the household. Therefore, two households in similar circumstances in the same area will be entitled to similar amounts of benefits.

1.1.2 Choice - tenants are able to take on greater responsibility and choose how to spend their income in a similar way to tenants who are not in receipt of benefits. Like other tenants they are able to choose whether to rent a larger property, or spend less on housing and increase their available income.

1.1.3 Transparency - The current link between Housing Benefit and individual rents is complex and does not set out clearly what level of state support is available for people on low incomes. A clear and transparent set of allowance rates helps tenants (and landlords) know how much financial help is available from the state. Tenants are able to compare how much support is available towards their housing costs in different areas and for different property sizes.

1.1.4 Personal responsibility - Empowering tenants to budget for and pay their rent themselves, rather than having it paid for them, helps develop the skills unemployed tenants will need as they move back into work. Currently around 40% of Housing Benefit payments in the private rented sector are made to tenants, with the remainder paid straight to landlords. The Government believes that, where possible, LHA should be paid to tenants, as are most other benefits and tax credits.

1.1.5 Increased work incentives - For working age tenants, LHA provides a simpler system and also helps speed up administration of housing payments, giving tenants more confidence when starting a job that any in-work benefit will be paid quickly. A more transparent system may also improve the ability of individuals to move between areas and to take advantage of employment opportunities.

1.1.6 Simplicity - Ideally, the Government wants tenants to have their housing payments paid into a bank account and to set up a standing order to pay the rent to their landlord. This has the advantage of being a safe and secure method of payment and provides certainty for landlords that rent will be paid.

2.1   Prospective tenants will be able to shop around with their allowance. If they find a property they like with a rent that exceeds their LHA, they will need to make up the difference themselves, as they do now. But if they find somewhere with a rent below their allowance, they will be able to keep the difference up to a maximum of £15.00 per week.

2.2   LHA will be used to work out HB for all new claims received on or after 07.04.08, except for the cases in the list of those who will not be affected by LHA below. LHA will also apply to claimants already on HB if they move after 07.04.08 and claim HB at the new address.

2.3   The new rules will NOT apply to the following:

3.1    Provide a safeguard to support tenants who cannot cope with the responsibility of paying their rent

 

3.2    Help to sustain tenancies by preventing rent arrears accruing

 

3.3   Help tenants to take responsibility for receiving direct payments of LHA

 

3.4   Reassure landlords that their rent will be paid direct when it is appropriate to do so

 

3.5    Provide our staff with a framework for making reasonable, fair and consistent decisions

 

3.5    Promote a transparent and simple process that is understood widely.

4.1   Local Housing Allowance is payable to the claimant unless they can be considered under the Safeguarding Policy by the local authority, in which case a landlord or third party may be paid.

 

4.2   Claimants will no longer have the choice of direct payments to their landlord, and will need to make arrangements to receive their benefit and to then make payments to their landlord.

 

4.3   People who have been appointed to act on behalf of a claimant who is 'unable for the time being to act for themselves' and the claimants they act for, until such time as they cease to have an appointee acting for them cannot be considered under the Safeguard Policy.

 

4.4   We may receive requests for consideration from the claimant, landlord or a third party such as the DWP, Social Services, GP, friend or family member. The request should be made in writing via the 'Safeguarding Application Form', from the Council's offices or website. If it comes from anyone other than the claimant we may need to contact the claimant either by phone, or preferably by conducting an interview, to find out what their issues are. We will check whether a third party agreement is held.  We may already be aware of a claimant's situation from previous contact with the Council. In these circumstances a statement can be made by the officer to support a request from the claimant. We will only respond to the landlord or third party if there is written consent from the claimant to do so. If no consent is given then the other person should be told that we will investigate the matter.

 

4.5    It should be noted that at no time will a blanket policy be applied to any customer or section of customers, all representations made will be decided individually and on their merits.  The details listed below are to be used as guidance when making a decision and are only some examples of factors to be considered. In no way does this document constitute a comprehensive guide to decision making or an exhaustive list of circumstances that may be considered.  One of the key aims of the reform of Housing Benefit is to promote Personal Responsibility, because of this aim it is important we ensure only customers who may have genuine difficulties have their Housing Benefit payments paid direct to the landlord.

 

5.1  Each case must be considered on its own merits when making a decision under the Safeguarding Policy, taking into account any supporting evidence. Many circumstances may affect a person's ability to manage their financial affairs, the following should be considered;

 

5.1.1  Learning Disabilities - These can range from mild to severe. In more severe cases, the claimant is likely to have an appointee to act on their behalf, in which case a decision under the Safeguarding Policy cannot be made.

 

5.1.2 Medical Conditions - Those which seriously impair someone from managing their affairs on a day-to-day basis, eg mental illness (schizophrenia, Alzheimer's, senile dementia). However, again, there may be an appointee acting on a claimant's behalf in most of these situations.

 

5.1.3  Difficulty with reading or writing or where English is not the first language.

 

5.1.4  Addition to drugs, alcohol or gambling.

 

5.1.5  Fleeing domestic violence; single homeless (care leavers); people leaving prison

 

5.1.6  Severe debt problems/recent County Court Judgements or substantial overdrafts from where onward payment of benefit would be prohibited.

 

5.1.7  Inability to obtain a bank account, although in practice everyone should be able to obtain a basic bank account at one of the high street banks or building societies.

 

5.1.8  DWP making deductions from IS/JSA to pay utility companies directly to clear outstanding arrears (should only be considered if part of the debt is still outstanding)

 

5.1.9  Receiving help from Supporting People

 

5.1.10 Receiving help from a homeless charity

 

5.1.11If the claimant fails to provide the information/evidence required, this may in itself demonstrate vulnerability, especially when coupled with another factor. 

7.1    It is important to note that just because a claimant falls into one or more of the above categories, this does not necessarily mean they will be considered under the Safeguarding Policy. Each case MUST be treated on its own merit, based on the information and evidence collected. In some circumstances it may be appropriate to conduct an interview with the claimant, or at the very least a telephone call could be used in addition to paper evidence prior to making a final decision.

 

7.2    Information received from a non-independent source, such as landlord, friend or family member, does not carry as much weight as that received from an independent source, and should therefore be viewed in support of other evidence.

7.3    To ensure consistency with the decision-making, information and evidence should always be obtained, and the judgement on whether to treat a claimant as vulnerable and to therefore make payment directly to the landlord will be the responsibility of a Team Leader.

7.4    A template will be completed for all decisions stating what information/evidence was taken into account and why it resulted in direct payment being granted or refused. This will assist with reviews of the decision and potential appeals.

 

8.1    The decision to treat a claimant as 'vulnerable' will be reviewed after an appropriate period of time as decided by the officer making the original decision. The review period will be confirmed by their Team Leader at the point of agreeing the decision.

 

There are 3 forms of review that can take place:

 

8.1.1 A review by the LA of the claimant's circumstances, to establish whether the vulnerable decision is still appropriate

 

8.1.2 A request from the claimant for payments to be made to them instead

 

8.1.3 An appeal from a relevant person (the rules for appealing are the same as the rules for HB

9.1   Any decision made to pay or not to pay the landlord directly carries a right of appeal under The

Housing and Council Tax Benefit (Decisions and Appeals) Regulations 2001. Both the

landlord and claimant have the right to request a review of the decision or appeal directly

against the decision of the Local Authority. Any dispute of the decision will go through the Local Authority's reconsideration process before being treated as an appeal.