Local Housing Allowance safeguarding policy

Introduction

Local Housing Allowance is normally paid to the customer. In recognition of the risk that some tenants may struggle with the responsibility of budgeting for, and paying, their rent, safeguards have been put in place. Chorley Council will have the discretion to make payment to the landlord if it considers:

• that the tenant is likely to have difficulty managing their own affairs i.e. they are considered to be 'vulnerable'
• that it is improbable that the claimant will pay their rent.  For example, if it is aware that the tenant has consistently failed to pay the rent on past occasions without good reason.

This policy sets out the guidelines that will be used by Chorley Council to make a decision on whether or not a tenant is 'vulnerable'.

Aims and objectives

• to provide a safeguard for the most vulnerable tenants and reassure them that their Housing Benefit will still be paid direct to their landlord
• to help prevent rent arrears and tenants being put at risk of eviction
• to help sustain tenancies for vulnerable tenants
• to reassure landlords that vulnerable tenants will be able to pay their rent
• to help put tenants get in touch with other agencies to give them the opportunity and support so that they can manage their own affairs
• to ensure the council officers make reasonable, fair and consistent decisions
• to promote a transparent and simple process that is widely understood
• to treat each case individually and avoid making assumptions about people's situations.

The policy is not designed to :

• replace support that is already in place for tenants to help them to be responsible for their own income and expenditure.

Making the decision

When we have gathered enough information and evidence we will make a decision and issue a letter to the customer, landlord (if applicable) or any relevant person explaining our decision and rights of appeal.

Reviewing a decision

We may review our decision:

• on appeal from a relevant person
• if there is a relevant change in circumstances or if requested to do so by the customer.

Referrals to advice services

If a customer is considered unlikely to pay their rent they will be encouraged to seek money advice. In many cases, effective advice on handling money and everyday expenses may remove or reduce the need for direct payments to be made.

If a customer has difficulty in managing their financial affairs we may refer them to an advice agency to receive practical advice and support.

Advice agencies also have a role to play in helping and referring claimants to the authority who may have difficulty in paying their rent and may help the customer to prepare the relevant information and documentation in support of an application for direct payment.

Rent arrears

Non-discretionary Decisions

Payment must be made direct to landlord if a tenant

• has built up eight weeks or more of rent arrears
• is having deductions from their IS/JSA to pay off rent arrears.

In these instances we will have discretion to continue paying direct to landlord when the level of arrears drops to below 8 weeks.

If the tenant is in arrears and their benefit entitlement is higher than the rent we may decide to pay any excess Housing Benefit (the amount of the award over the contractual rent) to the landlord towards the arrears.

Discretionary decisions

If a tenant is failing to make rent payments to their landlord, resulting in arrears amounting to less than 8 weeks, we may make payments to the landlord.

Where there is evidence that the customer is not, or has not, been paying their rent we may make payments direct to the landlord unless it is in the overriding interests of the customer or his family not to do so, for example where the tenant is in dispute with the landlord over repairs.

If the tenant is in arrears and their benefit entitlement is higher than the rent we may decide to pay any excess Housing Benefit (the amount of the award over the contractual rent) to the landlord towards the arrears.
 

Unlikely to pay rent/risk of non-payment decisions

We may make payments to the landlord where we consider that the customer is unlikely to pay their rent and it is in their interest to do so.

In all cases we require proof of the arrears in the form of a rent book or rent account showing the date the last payment was made and the amount of arrears.

The customer or persons acting on their behalf may make representations to the authority that they are unlikely to pay their rent. We may also take into account information that is already held on our records without the need for a formal representation.

We will seek and evaluate evidence about the customer's circumstances to make an informed decision taking into account the following factors:

• whether the customer is unlikely to pay their rent
• whether it is in the interests of the customer to make direct payments
• whether the customer is likely to pay their rent themselves if they had appropriate help and support.

We will not consider appointees who are already acting on behalf of the customer as unlikely payers nor customers who have an appointee acting on their behalf until such time as they cease to have an appointee acting for them.

Difficulty managing financial affairs (for example 'vulnerability')

We will use data that we hold and we will also engage the support and cooperation of external welfare and support groups by asking those groups to inform us of people who may require direct payments to landlords.

We will accept requests for direct payment to landlord from:

• the claimant
• the claimant's family and/or friends
• the landlord
• General Practitioner (GP)
• Probation Officer
• agencies supporting the claimant (with the claimant's consent)

Requests must be in writing and need to be supported with written evidence.

People who do not meet the safeguard criteria

• appointees who are already acting on behalf of the customer
• customers who have an appointee acting on their behalf, until such time as they cease to have an appointee acting for them
• customers who receive support to help them take responsibility in managing their own affairs
• landlords if they are the person who is likely to have difficulty managing their affairs rather than the claimant.

Please note that any landlord who is deemed not to be fit and proper to accept direct Housing Benefit payments will not be paid directly even if the claimant satisfies the conditions in the safeguard policy. In that case, the authority would seek some other satisfactory arrangement, for example look at whether someone else could assist the customer to manage their financial affairs, or whether someone else could be made an appointee to act for the claimant in Housing Benefit matters.

If a customer satisfies the safeguard policy criteria but the landlord refuses to accept direct payments, we will award benefit to the claimant and the landlord will need to make arrangements to collect the rent payments directly from the tenant.

We will not pay direct to landlord without his/her completion of a HB19 to confirm that they accept their duties and responsibilities relating to direct Housing Benefit payments.

Factors affecting ability to manage financial affairs and acceptable evidence

A wide range of factors can affect a person's ability to manage their affairs, some of these are described below with examples of acceptable evidence.

The above list is not exhaustive.

Each case will be examined on its own merits having given consideration to the facts in the case.

Support for vulnerable groups

We will accept referrals from support and advice organisations to make it easier to identify vulnerable tenants. If an organisation is already providing ongoing support to an individual, they may write a referral on their behalf, if they consider that the person would benefit from direct to landlord payments. The following are some examples of the types of local organisations who will be invited to take part in the referral scheme:

• Citizens Advice
• Housing Advice Services
• Connexions
• Local RSL's
• Teenage Pregnancy Unit
• Age Concern
• Community Drug Team
• Drug Action Team
• Places for People Homes
• The Pension Service
• Alcohol and Drug Services
• Community Mental Health Team
• Shelter
• Stonham Housing Association
• Welfare Rights