I have a client who is facing eviction because she has 3 months rent arrears. She was a lone parent getting IS, partner moved in in October, he works 16 hours, Tax Credits applied for and paid for one week then letter arrived saying she had been overpaid because she had no qualifying children - she has a 3 year old and a 15 year old she gets CB for - phoned 'helpline' dozens of times was told they couldn't amend claim over phone so wrote a letter in November. Still no response from Tax Credits to date. I attended CPAG training last year and was told that arrears of Tax Credits couldn't be treated as income but should be treated as capital. Could someone confirm this for me and tell me where i could find this so i can photocopy it for local authority who are not paying out HB based on Tax Credits pending. If possible could someone tell me what best practice is when it comes to treating hardship payments of Tax Credits as income. Any further suggestions will be very welcome. Thanks.

try section(s) 300 to 309 on this:

www.dwp.gov.uk/housingbenefit/new-tax-credits/ntc-aug2003/01-aguide-%20to-the-ntcs-sections1-5.pdf

which is the DWP guide to TC's and HB/CTB on their site.

I don't see the difference between the express removal of the use of Notional Tax Credit amounts and an authority's refusal to process a claim (save that the later might be more punitive). I think you are lucky that a decision was made by IR and then changed as the LA must action those changes as notified. I think you should appeal and take all the way to TAS.

Thanks a lot Julian. The HB/tax Credits document was excellent. gave me just the ammunition i needed for Local Authority. Thanks again.

Reg 40(9) of the HB Regs now reads:

" Any arrears of working tax credit or child tax credit shall be treated as capital."

7.4.03.]

Not sure about the situation in Scottish law (assume it's similar to E & W), but it's not appropriate for a landlord of a secure tenant to obtain posession in a case like this where the rent arrears clearly appear to lie in a breakdown of the Tax Credit & HB system system. English & Welsh legislation requires a reasonableness test to be satisfied in addition to specific grounds before a posession order is granted. At the very least one should be able to get an adjournment of any possession hearing to resolve the problems.

I've heard that in some cases Courts have asked managers of benefits services to appear as witnesses in order to explain what's gone wrong.

Another tactic worth persuing is to join the Council as a party to the hearing with a view to having court costs paid by the Council.

My employer secured over £1100 by this method

Thanks everybody for your advice. With all your help I think the client's home will be secure. Local MP got involved on Friday and client got 2 cheques from IR yesterday, paid some rent and HA have agreed to postpone any further action until HB have sorted out her claim. Thanks again.