I agree with Andy and it might also be worth having a look at reg 93 HB regs. If the LA thinks it is 'impractical' to decide the HB entitlement they can make a payment on account (interim payment).
Despite the often over-zealous way that LA's enforce claimants' duties, I've yet to come across a LA that complies with their own statutory duty ("the authority SHALL make a payment...") to make a payment on account where one is appropriate.
A refusal to make a payment on account, so long as the other conditions of the reg are met, would be unlawful and a complaint with a threat of JR - especially of the claimant's home is at risk - should resolve the problem if the LA choose not to acknowledge or comply with thier duty.
You should note however that payments on account only apply to rent 'allownace' and not rent 'rebate', which means the reg doesn't apply to council tenants.
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