One of the aims of the Government in introducing Local Housing Allowance for private tenants claiming housing benefit, is to encourage tenants to take responsibility for their rent payments. However, it is accepted that, in some circumstances, housing benefit can be paid direct to a landlord.
Regulations provide for direct payments in the following circumstances:
‘Is likely’ means that there must be a degree of certainty that the tenant will be unable to manage their affairs. It is not sufficient to conclude that there is a possibility that the tenant may have difficulty managing his affairs or that, because tenants in certain circumstances carry a risk that they may be unable to manage their affairs, we should pay direct. Each case is considered on its merits.
It will be necessary to distinguish between tenants who do not manage their affairs well and those who have a genuine difficulty.
Those with a genuine difficulty are deemed ‘vulnerable’. There is no provision for tenants to request direct payments. Some tenants may wish to be classed as vulnerable because they would prefer to have payments sent direct to their landlord. Evidence of vulnerability will be required.
The following indicators, singly or conjoined, may demonstrate that a tenant is vulnerable:
This provision protects tenants, who are likely to act irresponsibly, from falling into rent arrears. This outcome will be likely rather that possible. It is important to distinguish between tenants who are genuinely at risk of not using housing benefit awards to pay rent and those who may make that claim because they prefer not to take the responsibility.
Assume that tenants will pay their rent unless there is evidence to the contrary.
The following indicators, singly or conjoined, may demonstrate that housing benefit will not be used to pay rent:
| Priority | Non-priority |
|---|---|
| Rent | Loans |
| Mortgage | Store cards |
| Council Tax | Catalogues |
| Water rates | Club memberships |
| Gas | Internet provider |
| Electric | Mobile phone network |
Appointees will not be treated as vulnerable, or unlikely to pay. The tenant they act for is not vulnerable, or unlikely to pay, because they have someone acting for them.
In the circumstances identified above, a genuine claimant is unlikely to request direct payments.
Consideration of a claimant’s ability to handle his/her own affairs and the likelihood of the claimant paying his/her rent will form part of the private tenant claims assessment process.
However, representations may be received from the following:
Written representations will be required, along with evidence. The evidence may be pre-existing, but the older it is, the less relevant or reliable it may be. Evidence from the claimant, family and friends is valid, but some claimants may do everything possible to secure direct payments and thus avoid the responsibility that the reforms promote. Landlord statements must be verified.
If there is insufficient evidence to support housing benefit payments direct to a landlord, pay the tenant. Do not delay payment unreasonably. Where facts cannot be established because the claimant has failed to co-operate, consider if this failure demonstrates vulnerability.
Any decision may be reviewed should further evidence arise.
Notify all affected persons in writing, giving reasons, where applicable. Ensure appeal rights are clearly stated.
This facility allows for the first payment of housing benefit to be sent to the claimant but in the name of the landlord and may be invoked where there is insufficient evidence for direct payments to the landlord. Subsequent payments will go to the tenant.
The provision can only be used where:
First payment in the name of a landlord will:
Circumstance when first payment shall not go in the name of the landlord:
Circumstance when first payment shall go in the name of the landlord
Decisions about who to pay will be documented with justifications. If we have considered paying the first payment in the name of landlord, but have decided to pay the tenant, both the landlord and the tenant will be informed. The landlord can appeal this decision, so it may be appropriate to delay payment.
Where the first payment represents over eight weeks' worth of rent, check the rent arrears position, as it may be appropriate to pay the landlord under the eight weeks arrears provision.
This is a mandatory provision. If the landlord proves rent arrears of 8 weeks or more, payments will be direct to him, unless it is in the overriding interests of the tenant not to.
Payments will revert to the tenant as soon as practicable, unless direct payments should continue because the tenant is considered vulnerable or unlikely to pay rent.
