Perth and Kinross Landlords Forum

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Perth and Kinross Landlords Forum

• Monday 10th September 2007

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LOCAL HOUSING ALLOWANCE Presentation to
Landlords Forum 10th September 2007
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INTRODUCTION

• LHA will be rolled out nationally from 7th April
  2008
• Claimants will receive an Allowance based on the
  area in which they live and the number of
  occupiers in the property
• Entitlement to LHA will be subject to a
  means-test and proof of a valid tenancy
• Payment of LHA will normally be to the tenant
  not the landlord

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THE SIZE CRITERIA

• This determines the appropriate number of rooms
  that the occupiers qualify for
• ONE BEDROOM FOR
• Every adult couple
• Any other adult aged 16 or over
• Any two children of the same sex
• Any two children regardless of sex under age 10
• Any other child
• The number of living rooms, kitchens and
  bathrooms is ignored

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YOUNG INDIVIDUALS

• Single claimants under 25 years will be entitled
  to the standard rate for a room in shared
  accommodation.
• This shared rate will be based on properties
  where the tenant has the exclusive use of only
  one bedroom
• And where the tenancy provides for the sharing of
  one or more of the following kitchen, bathroom
  toilet, living-room

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BROAD RENTAL MARKET AREAS

• Rent Officers will define the BRMAs that a Local
  Authority will cover
• Initial indications are that there will be one
  BRMA in Perth and Kinross. It will be called
  PK1.
• BRMAs will be published by Local Authorities
• BRMAs, once defined, will apply to all properties
  falling within that area.

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SETTING THE LHA

• Rent Officers will be responsible for setting
  LHAs for different sizes of properties in the
  area
• Between 8-10 working days before the end off each
  month the rent officer will send each LA a list
  of LHAs for the following month. These figures
  must then be published, and all claims made
  within a month would be based on these same
  figures.

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PAYING LOCAL HOUSING ALLOWANCE

• Payment will normally be paid to the claimant
  rather than the landlord
• But, LAs will have the discretion to make
  payments to the landlord if they consider
• A) That the tenant is likely to have difficulty
  managing their own affairs
• B) It is improbable that the claimant will pay
  their rent

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TENANTS LIKELY TO HAVE DIFFICULTY MANAGING THEIR
AFFAIRS

• PKC will assume that all claimants are capable of
  managing their own financial affairs and paying
  their rent unless there is evidence to the
  contrary.
• Characteristics that may indicate that a claimant
  is likely to have difficulty managing their
  affairs can include learning disabilities, mental
  health problems, illiteracy or inability to speak
  English or addiction to drugs, alcohol or
  gambling.
• An inability to manage financial affairs can be
  demonstrated by severe debt problems, an
  inability to obtain a bank account or the DWP is
  making deductions from benefit in respect of
  housing costs
• These lists are not exhaustive

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PEOPLE WHO ARE UNLIKELY TO PAY THEIR RENT

• Past behaviour must be examined
• Has the landlord shown that he has tried to
  recover missing rent payments?
• The landlord does not need to wait eight weeks
  before contacting us, we can interview the tenant
  and make direct payments immediately if
  applicable or make a referral to CAB/Welfare
  Rights

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Our Safeguard Policy

• A Safeguard Policy together with Procedures will
  be put in place which will allow payments direct
  to the landlord to ensure that rent is paid on
  time and the claimant and family can continue to
  keep their tenancy
• PKC will seek and evaluate evidence about the
  claimants circumstances to allow us to make an
  informed decision on whether or not safeguards
  should be applied.
• Evidence can be from the claimant, family and
  friends, Social Services, GPs, DWP, Banks and
  Building Societies, Welfare Rights, CAB, the
  landlord etc
• The landlord must be a fit and proper person to
  be the recipient of LHA.

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PAYING LOCAL HOUSING ALLOWANCE

• LAs will also have the discretion to make the
  first payment to the landlord by cheque sent to
  the claimant but payable to the landlord
• This may be necessary in cases where a large
  amount of benefit is to be paid because the claim
  has been backdated, or because of a delay in
  processing the claim

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PAYMENT DIRECT TO THE LANDLORD

• Payment to the landlord will normally be approved
  if a tenant has
• Met the Safeguard Criteria
• Rent arrears of eight weeks or more, or
• Is having deductions from their Income Support or
  Job Seekers Allowance to pay off rent arrears

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PAYMENT DIRECT TO THE LANDLORD

• In cases when payment is made direct to the
  landlord and
• There are rent arrears any excess LHA can be
  paid to the landlord until the arrears are
  cleared
• There are no rent arrears the amount payable to
  the landlord will be limited to the amount due in
  rent and any excess will be paid to the tenant

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APPEALS

• As is currently the case, any person affected by
  a decision relating to the direct payment of LHA
  may appeal against that decision. Persons
  affected may include the claimant or the landlord
• There is no right to appeal in relation BRMAs and
  levels of Local Housing Allowance set by the Rent
  Officer

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QUESTIONS AND ANSWERS

• Any Questions?
• You can also e-mail questions to me at
• AngelaMcCallum_at_pkc.gov.uk

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HOUSING BENEFIT OVERPAYMENTS Local Housing
Allowance Clare Brandon, Principal Officer
Benefits E-mail CBrandon_at_pkc.gov.uk
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Definition of a Housing Benefit Overpayment
This is any amount of housing benefit or
council tax benefit which has been paid and to
which there is no entitlement under the
regulations. HB Reg 1998 / CTB Reg 1983
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Calculation of an overpayment

• Housing Benefit-
• Overpayments should be calculated in full weeks,
  not part weeks (except in rent allowance cases
  where HB is paid non-weekly).
• Council Tax Benefit-
• Overpayments are calculated daily. Any change in
  circumstances must be taken to the following
  Monday (as in HB), but it is important to change
  such things as liability from the actual day the
  change occurs.

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Establishing the cause of an overpayment /
classification of the overpayment.

• Classification of an overpayment is vital as it
  will affect the
• amount of subsidy Perth Kinross Council can
  claim from the
• Department for Work Pensions. It also
  determines the
• recoverability, if PKC claim the wrong amount of
  subsidy, the
• DWP are able to impose a penalty.
• Claimant error where the claimant fails or
  delays notifying PKC of a change in
  circumstances.
• LA error where PKC makes a mistake, omits or
  fails to act on information provided within the
  prescribed time scales.
• Departmental Error is where the DWP, Pension
  Service or HMRC makes an incorrect determination
  on which we base benefit entitlement.
• Fraud cases investigated by a designated fraud
  officer, and defined as fraudulent.
• Other error any other overpayment that is not
  included in the above categories, caused by say
  death or delayed receipt of an income e.g.
  private pension.

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Is the overpayment recoverable?

• The general rule is that all overpayments are
  recoverable,
• except those caused wholly by official error. If
  the
• overpayment was caused by departmental error, and
  the
• mistake was not caused or contributed to by the
  claimant
• or landlord, and they could not have been
  reasonably have
• been expected to know either at the time of the
  notification
• or payment of the overpayment, there is no
  discretion and
• PKC has no right of recovery. Therefore,
  emphasis is on
• the consideration of reasonably have been
  expected to
• know.

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Rates of Recovery

• A maximum of amount 9.00 may be deducted from on
  going benefit entitlement each week for the
  majority of cases.
• This is increased to 12.00 for fraudulent cases.
  (admission of guilt or found guilty in court of
  law).

• 50 of certain disregarded income may be used to
  increase the rate of the ongoing deduction.
  (Disregarded earned income, war pensions etc).
• The claimant can chose to increase the payments
  and similarly we should consider lowering
  deductions in cases where the claimant would
  suffer undue hardship.

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From whom will recovery be sought?

• Recovery may be sought from the following-
• The claimant.
• The person to whom benefit was paid, landlord /
  agent / appointee.
• The person who failed to disclose or
  misrepresented a material fact.
• A partner of the claimant provided they are both
  members of the same household at the time the
  overpayment occurred and at the time the
  overpayment is recovered. (ongoing deductions ).

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Notification of the Overpayment

• The calculation and recovery of an overpayment is
  open to
• an Appeals Procedure. Within one month of the
  decision
• notice you can-
• ask us to reconsider our decision.
• Review our decision after we receive a written
  appeal. If we cannot change the decision in your
  favour we will pass the case directly for
  consideration to the Independent Appeals Service.
  

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Methods of recovery

• Deductions from on going entitlement to housing
  benefit.
• Deductions from housing benefit arrears. (same
  period as op period).
• Placing the debt in a sundry debtors account and
  invoicing for the overpayment. To be paid in 14
  days or by payment in instalments by agreed
  arrangement only.
• From housing benefit of tenants unrelated to the
  overpayment known as blameless tenant recovery
  this is where the overpayment is recovered from
  another tenant of the same landlord to whom the
  overpayment does not relate.
• Deduction from a prescribed benefit. (excludes
  tax credits and child benefit).
• Arrangements with another Local Authority.

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DEFAULT ACTIONS

• Authority Social Security Administration (Fraud)
  Act 1997
• This procedure sets out the process and gives
  details of the collection and
• enforcement provisions introduced by Section 16
  of the Social Security
• Administration (Fraud) Act 1997. The new
  legislation provides that
• housing benefit overpayments, which is not
  recoverable by direct
• deductions, may be recovered in Scotland as if it
  were an extract
• registered decree arbitral.
• The provision in Section 75 (7) of the Social
  Security Administration Scotland Act
• 1992 allows housing benefit to be immediately
  enforceable as if it were an extract
• decree arbitral, by the usual methods of
  diligence as follows
• Attachment auction
• Arrestment of earnings
• Arrestment of moveable property in the hands of a
  third party (bank, building society account etc.)
• Inhibition of heritable property
• FOR INFORMATION ONLY Any formal appeals being
  made by the debtor must be

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Questions Answers

• E-mail CBrandon_at_pkc.gov.uk

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Housing (Scotland) Act 2006 The Repairing Standard
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INTRODUCTION

• Repairing obligations previously covered by
  Schedule 10 of the Housing (Scotland) Act 1987
• New Repairing Standard contained in Chapter 4
  (Sections 12-29) of the Housing (Scotland) Act
  2006
• Effective from Monday 03rd September 2007
• Applies to almost all private sector tenancies

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Elements of the Repairing Standard

• Accommodation must be wind and water tight and
  reasonably fit for human habitation
• Structure and exterior must be in a reasonable
  state of repair and in proper working order
• Installations for the supply of water, gas and
  electricity must be in a reasonable state of
  repair and in proper working order
• Fixtures and Fittings and any appliances provided
  by the landlord must be in a reasonable state of
  repair and in proper working order
• Any furnishings provided by the landlord must be
  able to be used safely and for the purpose they
  are intended for
• There must be satisfactory means of detecting and
  warning about fire (such as smoke alarms)

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Private Landlords Duties

• It is the responsibility of the landlord to
  ensure that the Standard is met
• Applies at the start of the tenancy and at all
  times during the tenancy
• Before a tenancy starts, a landlord must notify
  tenant of any works required to meet the Standard
• Before or at the start of the tenancy, the
  landlord must give the tenant written information
  about the Standard, its enforcement and the
  landlords obligations

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Exceptions to the Duty

• Work for which the landlord is not responsible
• Work that is legitimately the tenants
  responsibility either because the tenancy
  agreement stipulates it as such or because it
  results from the tenants actions
• A stipulation of the tenants responsibility can
  only be included if the tenancy is for more than
  3 years
• A landlord cannot use the tenancy agreement to
  limit their duty to meet the Standard
• A landlord cannot contract responsibility to the
  tenant
• A landlord cannot require a tenant to carry out
  or contribute to the cost of work

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Enforcing the Repairing Standard

• Private Rented Housing Panel
• New Panel and Committee formed from existing Rent
  Assessment framework
• Private tenants can apply to the Panel for a
  determination if they feel their landlord has
  failed to comply with the Standard
• Tenant must have exhausted the landlords repairs
  process before applying to the Panel
• Landlords cannot end tenancy or impose a penalty
  as a result of a tenant taking action to enforce
  the landlords obligations

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Enforcing the Repairing Standard

• Private Rented Housing Committee
• The Panel can reject an application or refer it
  to the Committee
• An application can only be rejected under the
  following circumstances
• The application is considered vexatious or
  frivolous
• The tenant has previously made a similar
  application that relates to the same property
• The dispute to which the application related has
  already been resolved
• The decision to refer or reject the application
  must be made within 14 days of receipt (unless
  further information is required or the Panel
  believes the dispute can be resolved without
  further action)

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Enforcing the Repairing Standard

• Determination by the Committee
• Upon receipt of the application, the Committee
  must determine whether the landlord has complied
  with their duty
• If the Committee decides the landlord has failed
  to comply, it must issue the landlord with a
  Repairing Standard Enforcement Order
• The Order requires the landlord to carry out work
  and details the work that is required and the
  timescales in which it must be completed

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Enforcing the Repairing Standard

• Failure to Comply Failure Notice
• If the Committee decides that the landlord has
  failed to comply with the Enforcement Order, it
  will serve a Failure Notice
• A copy of the Failure Notice is served on the
  local authority and this gives the local
  authority the power to carry out any work that is
  required
• The local authority must give the landlord and
  tenant at least 21 days notice before undertaking
  the work unless it is deemed to be urgent
• The local authority will initiate measures to
  recover all costs from the landlord

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Enforcing the Repairing Standard

• Failure to Comply Rent Relief Order
• If the Committee determines that the landlord has
  failed to comply with the Standard, it may make a
  Rent Relief Order
• The Order has the effect of reducing the rent
  payable by up to 90 (until the landlord complies
  with the Order)
• A Rent Relief Order can be revoked by the
  Committee at any time but must be revoked if
• The Repairing Standard Enforcement Order itself
  is revoked
• The landlord has applied for and received a
  Certificate of Completion

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Enforcing the Repairing Standard

• Compliance with a Repairing Standard Enforcement
  Order
• On completion of the specified works, a landlord
  must apply to the Committee for a Completion
  Certificate
• If the Committee is satisfied that the landlord
  has complied with the Order, it will issue a
  Completion Certificate in terms of Section 60 of
  the Housing (Scotland) Act 2006
• If the local authority carried out the works, a
  Completion Certificate cannot be issued until the
  landlord has paid any costs demanded by the local
  authority for carrying out the work

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Enforcing the Repairing Standard

• Registering with the Land Register
• There is a duty on the Committee to register the
  following in the land register
• Each Repairing Standard Order issued
• Notices of any decision to vary or revoke an
  Order
• Any Completion Certificate granted