UC, temporary accomodation, lost tax credits, lobster pot

Can anyone help me?

Client is 26, has a 6 year old daughter, works full time, wages consistent, was living with her mother getting CTC, made homeless, gets a hostel as temporary accommodation under Part 7 of Housing Act 1996 run by the council; it isn’t self contained, she receives no care, support or supervision; she moves and claims Housing Benefit and Universal Credit, being a fairly capable woman but not understanding what she should claim; she lives in a digital full service area; Housing Benefit fairly quickly refuses the claim and tells her to claim UC in writing, UC takes two and a half months to decide she cannot get help with Housing Element because she is in a hostel, the decision/journal update was added 6 days ago and she has £0.00 UC entitlement.

I think she can get HB and the LA has made an error but cannot get CTC because she is now in the lobster pot.

I have been running the numbers through QBC and it just looks unfair:

Her income when living with her mother and not liable for any rent:

CTC: £50.83
CB: £20.70
Net work earned income: £318.20

Her UC if HE was eligible or she wasn’t in a hostel but had the same rent:

UC: £60.77
CB: £20.70
Net work earned income: £318.20

Her UC when no HE applicable:

UC: £0.00
CB: £20.70
Net work earned income: £318.20

Her income with just HB:

HB: 13.05
CB: £20.70
Net work earned income: £318.20

She has lost £37.78 per week in the benefit system for being homeless and now has £101.51 per week rent to pay :(

We will assist her to challenge the HB decision not to award and help her to claim DHP.

Are there any loopholes or any I have missed?

Are UC correct to refuse housing costs, as it isn’t a bail or probation hostel and it doesn’t meet the definition of ‘specified accommodation’? I can’t see they are right to refuse at all if care/support/supervision was not provided.

http://www.legislation.gov.uk/uksi/2013/376/schedule/1/made

You have identified the key issue: care/support/supervision (c/s/s).  In a full service area, temp acc per se does not prevent UC from being claimed (no gateway) but if c/s/s is provided in such a way as to make the hostel “specified accommodation” as defined in HB Reg 75H (which is imported into the UC Regs), UC are correct to refuse a housing element and HB should be payable.  If there is no c/s/s, a UC housing element should be payable.  There still does not seem to be any clear procedure for these cases.  Logically, as the definition sits in the HB Regs, it ought to be HB who make the decision and UC ought to follow the Council’s lead but this does seem to be one of the problem areas. 

PS just read a bit more closely and I see that it is a Council-run hostel which means the accommodation occupied by the claimant must not be in “separate self contained premises” if it is to continue attracting HB.  If the accommodation is self-contained it’s not a hostel and therefore not specified acc.

It seems more likely to me that the Council is correct about this and it is the UC decision that should be revised.

In summary:
- temp acc is a red herring
- specified acc would attract HB and no UC housing element, but the absence of c/s/s means the fourth limb of the definition of specified accommodation is not satisfied:

This paragraph applies to accommodation–
(a) which would be a hostel within the meaning of regulation 2(1) (interpretation) but for it being owned or managed by a relevant authority; and
(b) where the claimant receives care, support or supervision.

HB Anorak - 31 October 2016 06:29 PM

  Logically, as the definition sits in the HB Regs, it ought to be HB who make the decision and UC ought to follow the Council’s lead but this does seem to be one of the problem areas. 

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we have been told by DWP Housing Policy that the final decision on whether it is specified accommodation rests with the LA. Can you get your claimant to upload the hb decision letter to their journal? in our authority we seem to have got on top of this issue by regularly sending the DWP our list of specified accommodation and the local partnership manager at the jobcentre is proactive in asking us about specific cases. Mind you, we had to get our Divisional Director to raise it at a high level with DWP before they agreed that we could have the final say. Does the hostel sometimes provide CSS and sometimes not? that might be something which would confuse UC.