Housing Benefit in TA when receiving UC

Can someone please point me to the legislation that would cover this scenario:

Claimant A receives UC and Housing Benefit for her Temporary Accommodation.  Working partner moves in.  His income for the month reduces their UC entitlement to around £100 for that assessment period.  THEN recovery of the UC advance and ‘other deductions’ entitle her to a nil payment. 

HB has been found ineligible as ‘not in receipt of UC’.  Whilst she has a 0.00 payment, she actually had an entitlement to around £100 in UC but this has gone to pay debts and fines. 

Would it not be the case that HB should pay as she was eligible for UC?  It wasn’t reduced due to excess income. 

The reply from HB to an appeal is that when your UC award is nil they base it on your partner’s income (which would be fine on other months when his pay is actually enough to wipe out the whole UC entitlement but in this case it didn’t!)

Thanks

See HB Regs 2006, Schedule 4 Para 12.

“On Universal Credit” is defined in Reg 2(3B) which states that a person is treated as on UC even if it is not in payment.

would reg 40 cover it?
HB should use max UC figure less income tapers/deductions and use that figure to calculate.

5) Where the payment of any benefit under the benefit Acts is subject to any deduction by way of recovery the amount to be taken into account under paragraph (1) shall be the gross amount payable.

Charles got in before am and his makes much more sense!

Thanks both - i’m going back in for another shot!
M