Client last year refused mortgage costs and told had to wait 39 weeks. This despite carers allowance in pay and dla for child and carers premium in pay so should have beeen 26 week rule. In letter for revision I asked for any arrears to be paid directly to client as there had had to make their own arrangements to meet mortgage costs during the 39 weeks with what money they had.

Mortgage section have now responded saying arrears due but going to pay these direct to mortgage lender and client will have to claw back from the lender any extra over and above what they were down to pay.

I've had a case similar to this in the last threee months where the request for arrears to be paid to client was agreed and she received a big fat giro. I assumed this was allowed under Reg 20 C&P Regs.

Having to wait 39 weeks for any help was bad enough for my client using Disability benefits and Income Support to meet mortgage costs and having to kowtow and jump throw hoops for the lender. I'm b****y incensed that any element of choice has been taken away from my client in this and that the arrears are going straight to the lender.

Any advice would be very appreciated.

I'm not sure what reg' authorises the flexibility to pay direct to the claimant in the case you mention but reg'34A of the C&P regs makes it clear that the mortgage interest must be paid direct to the lender.

I understand the policy intention behind that but it seems a bit harsh on claimants in your client's circumstances and surely flexibility is called for.

Regards
Paul

Reg 34A C&P Regs reads as follows:

"34A.—(1)
In relation to cases to which section 51A(1) or, subject to paragraph (1A), sectiion 15A(1A) of the Social Security Administration Act 1992(a) (payment out of benefit of sums in respect of mortgage interest etc.) applies and in the circumstances specified in Schedule 9A, such part of any relevant benefits to which a relevant beneficiary is entitled as may be specified in that Schedule shall be paid by the Secretary of State directly to the qualifying lender and shall be applied by that lender towards the discharge of the liability in respect of that mortgage interest"

I dont see how S34A can be applied in a situation where the liability has already been discharged, The general provision of S20 should apply and the monies paid to the claimant.

Thanks Stainsby and Nevip. The couple had met all of the mortgage payments out of their benefit over those 39 weeks(DLA, ICA and IS) and lived on beans. That was really hard going for them with a severe disabled child. I argued with the mortgage section on Friday and it turns out they were ready to pay but their quality control put the mockers on it saying arrears had to be paid to lender.

They agreed to hold off payment to the lender and put my argument to the qual. cont. that arrears paid to client. I got the distinct impression she didn't agree with their people either.

Will post up result.

Just an update on the case for the above. Clt in the end decided not to challenge decision to pay direct to lender after Building Society said they would pass on the arrears. However, DWP mortgage supervisor got back to me to say she put my argument to DWP legal dept arrears should go to clt and they,ve reiterated that in future any arrears on a case like this will be paid straight to lender.