Help with Housing Benefit Calculation

[Acydman]

My mother in law has lived in the same house on her own for 9 years. She has claimed Housing Benefit all this time as she's now 69 and Pension Credit.

 

She lives alone as a private tenant in a 3 bed semi and has lived there for over 40 years (previous her mother was the tenant and she was the carer).

 

The landlord is extremely reasonable only increasing rent every 5 years. The Local Authority has always paid all of her rent, which was previously £85 per week. THe landlord now wants £100 per week, so shes contacts the benefits office and they have said £85 is the limit.

 

I have been on their own website and looked at their own benefits calculator and found under the LHA rules she is actually entitled to £103.85 per week.

 

I am going to ring the Council tomorrow but I am wanted to see if anyone out there had any advice and if I am barking up the right tree!

 

The LA is Trafford Council and her property falls under Central Greater Manchester.

 

Thanks in advance for any advice or help.

[ErikaPNP]

You are correct. She is entitled to the one bedroom rate of £103.85 per week; she is also entitled to keep the difference of £3.85. This, however is the rate up until yesterday 31/10/09. The rate may stay the same or go up, it is very unlikely to decrease.

 

Where on earth they have come up with the figure of £85.00, I don't know. I can only guess that (if the rate has gone up) they are basing it on the shared rate which they should not be doing if she lives in a self contained property. The shared rate for that area is currently £65.00 and I sincerley doubt it would increase by £20.00, so I think they have crossed their wires somewhere.

 

Was she a joint tenant with her mum before she died, or was her mum the sole tenant? If she was a joint tenant and the tenancy agreement has only been affected in the manner that mum was removed, then LHA would not affect her and it is HB that should be applied.

 

The only other reason this could be affected would be due to income or savings, but as she is in reciept of Pension Credit, I would doubt this would be the case.

 

She would obviously need to provide verification from the Landlord of the rent increase but other than that I can't see an issue. I think someone has the wrong end of the stick, and it's not you.

[Acydman]

Hi thanks for the reply!

 

She is the sole tenant and her mum was the sole tenant previously, the landlord allowed her to stay in the house due to the length of time they have lived there etc.

 

I understand the LHA has been in force sind April 2008 and if it was greater than her rent which was £85 per month she should have been entitled to the first £15?

 

If this is the case then should it not be backdated as its their error?

[ErikaPNP]

Yes, she would have been entitled to £100.00 per week in total, if that same rate of £103.85 has applied throughout. She should write a letter to the manager of the benefit section, requesting back dating of the £15.00 per week since she has had her claim, citing maladministration.

[Acydman]

I have just checked with her as I understand LHA is paid to the tenant and Housing Benefit is paid to the landlord. The council pays the rent directly does this not affect things?

[Acydman]

Sorry the council pays directly to the landlord.

[ErikaPNP]

It is unusual for housing benefit or local housing allowance to be paid to the Landlord these days, they only usually do it in one of the below circumstances:

 

 

• If the tenant is in a vulnerable category such as: Learning difficulties/medical conditions/illiteracy/drug/alcohol/gambling dependencies/people leaving prison/care leavers/fleeing domestic violence
  
• If the tenant is unlikely to pay their rent
  
• If the tenant is in arrears by 8 weeks or more
  
• If the tenant is having deductions made from Income Support or Jobseeker's Allowance to pay off rent arrears
  
• If we need to issue a large one off payment on a new claim
  

Yes, being paid directly to the landlord could affect this, as he is not the entitled person; your mother is. Though I cannot see any reason why she could not be paid the difference, as she is still the claimant. I'm not fully au fait yet with LHA, there may be something within the regs which prevents excess payments if it is paid directly to the landlord, but I don't know.

[Acydman]

my main concern is hes put the rent up to £100 per week from 1st December and they wont pay more than £85 leaving her to find £15 a week from somewhere and she cant!

 

I agree it sounds like maladministration and i think for the principle we'll go for back dated underpayments to be made to her but I think she's more worried obviously about where she is going to find £15 per week extra at 69!

[ErikaPNP]

She should not have to find it, the rates are clear, and unless she has savings or income which would affect it, she should receive the entitled rate. If she does not, appeal it.

[soleman]

Hi if your mother in law has been claiming for the last 9 years, without a break in the claim since April 08 when LHA was introduced then its unlikely that her claim is being paid under LHA. in which case she's being paid under the 'old' rules. This would explain why the local authority cannot consider the rent increase. Under the old rules rents are referred to the valuation office (they determine iif the rents are reasonable) once a year and cannot be referred again (for rent increases only) until the anniversary date. When this occurs the LA will refer the new rent, unfortunately this does mean there will be a shortfall until then. There are 2 options if HB is being paid under the old scheme. 1) She can apply for a Discretionary Housing Payment from her LA, with this fund they MAY top up the difference until the anniversary date comes round - but it is is discretionary and there are no guarantees it'll be awarded. She should speak to the LA for further details. 2) she can request her claim be cancelled for one week, then reapply. The new claim will be considered under LHA, then she'll qualify for the LHA rate for one bed rate and any top up if applicable. She will however lose one weeks HB.

 

I hope this helps, but its best to speak with the LA and query which scheme she is being paid under.

[ErikaPNP]

Very well explained, Soleman.

[Zamzara]

2) she can request her claim be cancelled for one week, then reapply. The new claim will be considered under LHA, then she'll qualify for the LHA rate for one bed rate and any top up if applicable. She will however lose one weeks HB.

 

Agreed, this is definitely worthwhile. As she is over 60 (therefore entitled to backdating for any reason), do you know if she could request backdating for a week as well and still move onto LHA, or would it then be continuously under the old rules?

[soleman]

A backdate would not be allowed as there has to be a break in the claim in order to be considered under LHA and the minimum is a week. However, if her rent is £100pw and the LHA is £103.85,she'll get £103.85 so eventually she'll get her lost week back.