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Rent paid in advance and entitlement to housing costs via UC
My client has found a flat to rent but, because he had a DRO last year, he does not have a good credit rating. The letting agent said he would need a guarantor, which he could not find, so it seemed he would lose the property. However, over the weekend, his current landlord, Kate, where he has been for 20 years, has offered to pay 6 months rent in advance to the new landlord on the understanding that my client will repay Kate from his UC housing costs element. Just wondering how UC would view this situation? I have advised my client to hold fire on signing any contract until we have clarified the position.
(My client has mental health problems, extreme anxiety, and realises that if the planned arrangement doesn’t work then he will inevitably struggle with the same issue with any potential new landlord. We have requested a Housing Options interview with the Council, prior to this latest development, so have that as a fall-back plan but don’t anticipate that will actually be much help in the long-run).
Thanks in advance for any guidance.
What a wonderful landlord he currently has. Your client must have a very good reason for needing to move.
My understanding is that as long as claimant has a tenancy agreement which makes them liable to pay rent they are entitled to receive the appropriate housing element in the ir UC. It makes no difference whether rent has been paid in advance (nor who has paid it). The housing element is based on the monthly liability not on the payments made.
[ Edited: 12 Aug 2020 at 06:14 pm by Ianb ]Thanks Ian. My thoughts were starting to go that way. As the housing costs money can be paid to the claimant then the DWP don’t know who the money will end up with. He should have a ‘proper’ tenancy agreement to prove his housing costs. (Unfortunately the landlady needs the property back for her elderly mother otherwise I’m sure this wouldn’t have arisen).
I am in the middle of similar. Customer has not moved yet and not claimed UC but will be homeless and parents can assist from their savings as long as they know they will get it back.
I have queried with DWP as HB regs say this -
Rent has already been paid for future period
3.160 If rent has already been paid for a future period, the claimant
• is regarded as liable to make payments for the duration of the HB claim even though
payment has already been made for some or all of the period and the liability is therefore
discharged, and
• will receive HB for the benefit weeks covered by the advance payment, even though no
actual payments are due in those weeks. An example is when a claimant pays rent monthly
in advance
BUT I cannot find similar in UC. I had a customer a year ago where this happened and UC would not pay saying he did not have a liability. I did a MR and it was not overturned, was going to appeal but sadly my customer passed away.
[ Edited: 17 Aug 2020 at 05:35 pm by Madamejones ]
I had a customer a year ago where this happened and UC would not pay saying he did not have a liability. I did a MR and it was not overturned, was going to appeal but sadly my customer passed away.
I think that’s just wrong. They had a liability. It had been discharged by paying in advance but that doesn’t mean the liability doesn’t exist.
The rules also provide for any payment which is for a period other than a month to be converted to a monthly amount to be used for determining the housing element.
[ Edited: 17 Aug 2020 at 04:43 pm by Ianb ]I had a customer a year ago where this happened and UC would not pay saying he did not have a liability. I did a MR and it was not overturned, was going to appeal but sadly my customer passed away.
I think that’s just wrong. They had a liability. It had been discharged by paying in advance but that doesn’t mean the liability doesn’t exist.
The rules also provide for any payment which is for a period other than a month to be converted to a monthly amount to be used for determining the housing element.
I agree and would have fought his case for sure.
I am waiting for someone from my local job centre to come back to me with what she can find out. Nowhere on the claim does he have to say anything about the fact the rent has been paid and at the moment they are just verifying tenancies over the phone but I am worried that when they may want to see proof of TA and deposit/RIA paid they may query it then and say he has been overpaid.
I am waiting for someone from my local job centre to come back to me with what she can find out. Nowhere on the claim does he have to say anything about the fact the rent has been paid and at the moment they are just verifying tenancies over the phone but I am worried that when they may want to see proof of TA and deposit/RIA paid they may query it then and say he has been overpaid.
The only document that should be required is the tenancy agreement.
I am waiting for someone from my local job centre to come back to me with what she can find out. Nowhere on the claim does he have to say anything about the fact the rent has been paid and at the moment they are just verifying tenancies over the phone but I am worried that when they may want to see proof of TA and deposit/RIA paid they may query it then and say he has been overpaid.
The only document that should be required is the tenancy agreement.
I agree but at the beginning of the roll out our local Job Centre were asking for proof of rent paid and if a new tenancy, the deposit and rent in advance - think they still were up until Covid.