Actually, there is some law to support the client's position.
Firstly, s.130(1)(c)(i) of the Social Security Contributions & Benefits Act 1992 makes it plain that HB is potentially payable to a claimant who has no income.
Secondly, what is the LA going to do for evidence? A claimant cannot prove a negative; the LA (presumably) has no evidence to contradict the clmt's stated position of having nil income. If all that is correct, any inference is going to be, er, nil income.
There are a couple of CDs in which Cmmrs have criticised LAs for drawing inappropriate adverse inferences in cases where clmts failed to provide info/evidence. CH/0048/2006 is an obvious example. In short, LAs must have regard to the evidence and info that IS available - even if incomplete.
In terms of notifying the LA of changes in circs, the clmt isn't necessarily required to inform the LA of the end, or start, of IS. HBR 88(1) only requires notification of changes which a clmt (or payee) "...might reasonably be expected to know might affect the claimant´s right to, the amount of or the receipt of housing benefit....".
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