Thanks Hannahbella - I'm sorry I didn't pick up on your post (email notification didn't work?!)
In the end, I called the council and although they couldn't discuss because of DP, I asked that a note be put on their file that they hadn't paid their rent and had 'done a runner'. The lady said she would and added that if we ever got ourselves into this position again (er not likely!), that after arrears of two months we should contact the council and they would pay us direct.
A week or so later, OH got a call from the Fraud department of either the council or HB to say they were investigating the tenants as, yes, they had been getting HB all along!
We will be doing all we can to help them in their investigations!
