Credit Unions and Housing Benefit

Good Morning All

Hoping someone can shine some light on this one. Have been contacted by a client who advises that Falkirk Council are not happy to pay housing benefit into a credit union account and have advised the client they have a blanket policy of not accepting CU accounts for the payment of HB.

I just wanted to check if anyone else has encountered this and if this is within the competence of the LA.

Thanks

Rob

I never came across this when i worked as an adviser in that area.  Not to say it doesn’t exist just that i didn’t come across it.

I would suggest having a word with the councils welfare rights team to see if they are aware of this or can offer any assistance.

Sounds strange. Most of the Revs & Bens Managers (and services) I deal with are very pro-credit union. In some cases a Credit Union account is the only real option open to the claimant.

I don’t see that a blanket policy not to pay a credit union would fit with Reg 91(1)(b)
“the reasonable needs and convenience to the person entitled thereto”

Falkirk Council’s website has a news item from January announcing a grant to the local Credit Union for equipment to allow online banking.  The quoted Council spokesperson refers to a credit union account being a good way to manage bills including rent.  So you would think they wouldn’t have any objection to HB payments going to those accounts.

Maybe the Council are saying it isn’t technically feasible to pay HB into a CU account until the enhancements paid for by the grant are in place?