Discretionary payments
to landlords under the LHA
Some rules won't change
As now, we will have to pay a landlord where:
- the DWP is paying part of the tenant's Income Support,
Jobseekers Allowance or Guarantee Credit to the landlord for rent
arrears
- it has been shown to us that the tenant is in 8 or more weeks'
rent arrears, unless it's in their overriding interests not to pay
the landlord
Making the first payment to the landlord
Also unchanged is the rule allowing us to send the first payment to
a tenant in the form of a cheque payable to their landlord. We will
normally do this if a delay awarding Housing Benefit means the
first payment will be for a large amount.
The new discretionary 'safeguard' rules
The new discretionary rules are meant to safeguard tenants who
will have trouble paying the rent themselves. But the rules aren't
specific. Councils have to judge for themselves whether they might
apply. Decisions will differ, depending on the facts in individual
cases. Below are the kinds of things we'll consider when deciding
whom to pay.
The following paragraphs are meant to indicate, in general
terms, the things Newham will take into account when deciding whom
to pay.
Have we previously paid the landlord?
We might use our discretion to pay a landlord if we previously
paid them because there were 8 or more weeks' arrears and the level
of arrears is such that the 8-week rule might soon apply again.
We would probably not continue paying the landlord under
this rule if the arrears had been caused by Housing Benefit
delays.
Is it improbable the tenant will pay their rent?
In deciding whether it is improbable the tenant will pay their
rent we will normally look at the way they've paid their rent in
the past. We might decide to pay the landlord if:
- there's been a recent and persistent failure to pay the
rent
- rent payments are becoming less frequent
- the causes for a past period of non-payment are likely to
recur.
We are unlikely to pay the landlord:
- on the basis of occasional missed payments
- if the tenant simply says they won't pay the rent.
Will the tenant have difficulty with the management of their
finances?
People may be likely to have difficulty budgeting if:
- their income is too low to meet their financial commitments;
or
- they are unable to manage their affairs due to illness, a
crisis or inexperience.
If we decide to pay the landlord for any of these reasons, we
will set a date at which to review our decision. If the conditions
for paying the landlord no longer apply, we'll pay the tenant
instead.
Telling us about problems with the rent
We will not consider paying Housing Benefit to a landlord rather
than the tenant unless we receive information prompting us to do
so.
Anyone can approach us to pay the landlord. This would include
the tenant, a family-member or friend on the tenant's behalf, a
professional representative like a welfare adviser, or a
landlord.
Friends or family are likely to approach us about the tenant
having difficulty managing their finances. Landlords will normally
approach us about rent arrears. We wouldn't normally discuss issues
other than rent arrears with landlords unless we had the tenant's
explicit consent to do so. We will always discuss any issues with
the tenant before deciding whether or not to pay the landlord.
We will need evidence to confirm the information we are given.
Depending on the circumstances, we will need to see things like
rent books, solicitors' letters, bank statements, evidence of
expenditure, letters from financial organisations, letters from
medical or social work professionals, court documents.
Notifying our decision and appealing against it
If we receive a formal request to pay the landlord we will
notify our decision to both the tenant and the landlord. The tenant
and the landlord will have the right to appeal the decision or ask
us to reconsider it.
Temporary payments to landlords
If it looks like there will be a delay in deciding whom to pay, we
have discretion to pay landlords temporarily for up to 8 weeks
while we make a decision.