Don't think I need any help with this, but thought it would make an interesting dicussion point... I'll post my proposed solution later.

Client gets pension credit (GC) and lives with his wife from whom he has been estranged for around 7 years. He lives in her property which is not the former matrimonial home. The arrangment has come about as he is disabled and requires care. She has time and income to be able to provide the care.

He has always paid her £100 a week, which may be considered either 'rent' or a 'non-dependant contribution'. There is no tenancy agreement.

Questions
- Are his payments 'rent'?
- Should he claim housing benefit, or should she claim second adult rebate?
- what would you advise the clients

Bear in mind the following points:
- second adult rebate cannot be awarded where the second adult pays 'rent';
- the client is not liable for council tax;
- the council tax liability is £1300 a year.

My thoughts such as they are:

There may be an argument for claiming that the £100 is rent. There doesn't need to be a written contract or tenancy agreement for one to exist.

However, it may be that not all of the rent is eligible anyway. It's stated that the estranged wife is providing care. Is part of the £100 intended to reflect the care that is being provided?

It is a murky one (for a Friday afternoon) and one that makes me hope they don't live in this area.

I'd hedge my bets and say he should claim HB first. On the assumption that the payments are accepted as rent, then he could get anything up to £100 per week (subject to deductions for care, board deductions and RO rent restrictions or LHA whicever is applicable).

Second Adult Rebate would pay a max £325 a year.

Hi Philad,

Thanks very much for your reply.

My solution is very similiar to yours. To claim HB first and argue that the 'rent' is rent for HB. If that fails, then there is a clear argument that the 'rent' is not rent and so he should then claim the SAR.

As it happens, the client has declined to make a claim - they couldn't face the hassle so will struggle on.

Thanks again,