Housing and council tax benefit - information for landlords
Housing Benefit
Housing Benefit is a national welfare benefit which your
tenant(s) may be entitled to to provide assistance with the payment
of rent.
Housing Benefit cannot be claimed by the landlord and is claimed by
the tenant, however, with the agreement of the applicant, payment
of Housing Benefit can be made to the landlord.
Local Housing Allowance
From April 2008, a new Housing Benefit scheme is to be
introduced known as Local Housing Allowance. Personal
responsibility and financial inclusion are two key aims of Local
Housing Allowance. In the vast majority of cases, benefit
will be paid to the tenant who will be responsible for making their
own payments of rent to their landlord. In certain
circumstances, benefit can be paid directly to the landlord.
Changes to Legislation - April 2011
From 01 April 2011, as part of the Government's Welfare Reform,
there are to be some changes to legislation which directly affect
the maximum levels which tenants could potentially receive in
Housing Benefit.
These changes mean that the level of Housing Benefit currently
being paid to a tenant may reduce in the future.
Further information on
Local Housing Allowance and the changes from April 2011.
How Much Rent is Eligible for Housing Benefit?
The amount of Housing Benefit payable may in some cases be lower
that the rent which you are charging your tenant.
Some charges which are included in a tenant's rent may not be
eligible for Housing Benefit. This is another reason why the
full rent charge may not be covered by Housing Benefit.
For private tenants who have received Housing Benefit
continuously since prior to 07 April 2008, the maximum amount of
Housing Benefit payable is determined by the Rent Registration
Service.
For any new private tenants who have applied for Housing Benefit
after 07 April 2008, the maximum level of Housing Benefit payable
is determined under Local Housing Allowance.
Find out how
Local Housing Allowance will effect eligible rent.
Claiming Housing Benefit
As previously mentioned, it is the responsibility of the
tenant(s) to apply for Housing Benefit - entitlement to Housing
Benefit is granted to the tenant. Find out
how to claim Housing Benefit.
Proof of Rent
Should an application for Housing Benefit be submitted by your
tenant, he or she will be required to provide proof of
rent:
1. The original lease (not a photocopy) which has been
signed by both the tenant and landlord, or
2. If you do not have a lease, you can obtain a 'Rent
Details Form' from the downloads section of this page.
Payment of Housing Benefit
Under the regulations for Local Housing Allowance, payments are
usually issued to the tenant directly. However there are some
circumstances when payment can be issued to a landlord or their
agent.
An authority must pay Housing Benefit to a landlord or agent
when (The Mandatory Rules):
- when the tenant has rent arrears of 8 weeks or more (and the
authority has received sufficient evidence of this);
- when the tenant is having deductions from a state benefit being
paid directly to the landlord or agent for rent arrears;
- when the tenant has died and it is the decision of the
authority to pay the landlord or agent;
An authority has discretion to pay Housing Benefit to a
landlord or agent when (The Discretionary Rules):
- when the authority previously issued payment to the landlord
for that tenant under the mandatory rules;
- when it is the view of the authority that the tenant is likely
to have difficulty paying rent or managing their affairs;
- when it is the view of the authority that it is improbable that
the tenant will make payment to the landlord or agent.
- when the tenant has left the property leaving leaving behind
rent arrears (providing that there is a payment of Housing Benefit
due and only for any period of any such entitlement).
Whilst the authority is in the process of making a decision, the
authority can consider issuing a payment to the landlord or agent
for up to 8 weeks.
Further Discretion - April 2011
From 01 April
2011, the discretion for authorities to pay landlords directly are
being widened so that authorities can make payment to the landlord
where they consider that it will assist the customer in
securing or retaining a
tenancy.
The policy intention
Taking into consideration the other changes to LHA from
April 2011, the new provisions mean that if a tenant can
successfully renegotiate contractual rent to eradicate any
shortfall in HB which the tenant suffers as a result of the other
legislative changes affecting Local Housing Allowance, authorities
can allow for payment to go directly to the landlord. It is the
policy intention for this act as as an incentive for landlords
to reduce the rent to accommodate a more affordable rent for
the tenant.
Prevention of Overpayments of Housing Benefit
In order to prevent overpayments of Housing Benefit, we ask our
tenants to report all changes in household circumstances as failure
to do so may result in an overpayment. We also ask that as a
landlord, if you are aware of any changes in your tenant's
household circumstances, which you think may alter the amount of
Housing Benefit they are receiving, you notify us of these
changes. The most common changes in circumstances that the
landlord will be aware of are as follows:
- When your tenant leaves the property;
- Changes to the level of rent being charged (increase or
decrease);
- Changes to the household composition (household members leaving
or joining);
- And many more.
It is important that if you are aware of any changes in your
tenant's circumstances which may effect his or her entitlement to
Housing Benefit, you notify us of these as soon as possible.
Should an overpayment occur as a consequence of any delay, in some
circumstances this overpayment can be recovered from the
landlord.
Landlord Appeal Rights
Although a landlord has no right of appeal against the amount of
Housing Benefit a tenant is awarded, an appeal can be made against
any overpayment that we say we intend to recover from a
landlord. Appeals must be made in writing and within one
month of the notification date. Find out more about
Appeals and what to do if you think our decision is
wrong.
Reporting Benefit Fraud
Benefit Fraud is a crime. If you suspect that benefit
fraud is being committed by your tenant or anyone else, please
report this to us. Find out more information on
Benefit Fraud and how to report this anonymously.
Data Protection
Under Data Protection Laws, we cannot discuss matters regarding a
tenant's Housing Benefit with the landlord without the
written permission of the tenant.
There are exceptions made when, for instance, we take action to
recover an overpayment and in such cases a landlord is entitled to
know about the cause of the overpayment. General advice on
Housing Benefit and procedures followed by Perth and Kinross
Council can be discussed without permission from the tenant.
If your tenant gives us written permission, this will allow us to
discuss certain matters regarding the tenant's Housing Benefit
entitlement. This permission is given by the tenant on his or
her application form and so any information which we give to the
landlord is strictly restricted to that particular
application.
Landlord Forum
Perth and Kinross Council has introduced a forum for private
landlords. It is designed to promote joint working and to
improve communication on any new legislation or any matter of
concern, including Housing Benefit.
Private landlords who would like to be on the mailing
list for the Forum are asked to contact 01738 476170 during
weekday working hours.
Private Landlord Registration
From 30th April 2006, all Private Landlords letting properties
in Scotland must apply for entry in the Register of
Landlords. Information is available at www.betterrentingscotland.com
or from Legal Division, Perth and Kinross Council, 2 High
Street, Perth, PH1 5PH. You can also call us on 01738
475241.
Contact Us
If you have any concerns or want to know any further information
on any areas of Housing Benefit, please do not hesitate
to contact us on 01738 476049 or by email HBenquiries@pkc.gov.uk
