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Disregard of capital - separation of couples
Hi - looking for some urgent advice
Our HA has just signed up a lady, age 64 for a tenancy at one of our sheltered schemes. She has left the marital home permanently fleeing domestic abuse. Her partner, age 65 is still resident at her former home, which is not up for sale. They are regarded as a separated couple with no legal proceedings undertaken as yet (early days!). They owned their own home outright (value £50-£55k).She is a non-income support case and has made a claim for hb and would qualify based on income alone. However, she has been advised that there are no regs that apply which allow them to disregard the capital value of her former home and as such she does not qualify for hb (capital exceeds). I have argued the case initially with a HB Officer but his interpretation of the regs is unchanged. Without stating my take on this can anyone let me know their views and consideration re. hb eligiblity in this
As your client is over the age for pension credit (PC), you need to ,look at p.387 of the Welfare Benefits and Tax Credits Handbook 2015/16 which details when the value of a home can be disregarded for capital purposes for housing benefit claims for people over PC age.
The first bullet describes how if you have left your former home following a marriage or relationship breakdown, the value of the property is ignored for 26 weeks from the date you left. There are then various other disregards which are mainly based on disposing of the property. There are also further pro visions about ignoring a former home on p.388 but I don’t think these would apply in respect of your client because of the separation.
Sorry, meant to give you legal reference which is para.6 of schedule 6 of HB (Persons who have attained the qualifying age for state pension credit) Regs 2006, for the initial 26-week disregard.
Cant she claim PC in her own right?
Theres a chance that even tariff income reduction may still leave GPC in payment, thus passporting her to a full HB claim?
If property worth 60K and she gets half then it will lead to notional reduction of £40 a week from GPC once disregard finished??
It’s unlikely that a realistic valuation of her share would be half of the vacant value. There’s also the 10% deduction for selling costs.
and that’s always assuming that the home is in fact jointly owned - it may not be, it may be in husband’s own name and she may have no equity in it at all - unlikely but possible
I assume you have referred her for family/financial advice on this point?
apart from that, what value? she can’t force a sale, the property has no market value at this point in time….
and that’s always assuming that the home is in fact jointly owned - it may not be, it may be in husband’s own name and she may have no equity in it at all - unlikely but possible
I assume you have referred her for family/financial advice on this point?
apart from that, what value? she can’t force a sale, the property has no market value at this point in time….
...And if client has been referred for family/financial advice, she should be regarded as taking reasonable steps to dispose of her share of it- which is another route to her share being disregarded for at least up to 26 weeks.
So in summary, I think they’re wrong….
Thank you all for very swift responses. I was only made aware of this case yesterday so I will explore all avenues as suggested. Great to collect ammunition in event of a reconsideration or ultimately an appeal, this early. Will provide feedback.