Bedroom Tax Loophole Claim in Progress

cattermole

They can't use DHP already paid as future rent either.

What they can do however is once
the DWP close the loophole (if the tax isn't scrapped by then!) not pay DHP for future rent shortfalls on the group they know have been overpaid.

It's all such a mess and so many loopholes in the legislation put in place by this government, this is what happens when legislation is not written properly and is rushed through.

Previously there was never really a need to recover DHP because it was only used for short term emergencies/shortfalls, which is what it was intended for in the first place.

Morglin

pmlindyloo wrote: »

I find the question about DHP rather interesting.

Adviceguide say this:

Did you get a Discretionary Housing Payment?

If your council paid you any Discretionary Housing Payments to help with a Housing Benefit shortfall during the period when your benefit was wrongly reduced, they may require you to pay this back. However, they are not allowed to take it off your Housing Benefit entitlement.

Have also read up that there do seem to be no regs to allow this to happen.

Also have seen it said that the DHPs will be used as future rent.

I do not think that there are that many cases where this applies so I suspect that the amount of money involved to go to court to defend any challenges will not make it worth their trying to get it back or use it for future rent.

The last I read was that DHP would/could not be recovered as it was some sort of error in law, that caused the problem.

I also read that this repayment would be paid into the bank account of tenants, and not put into the rent account.

However, as the loophole MAY be closed in March, (some legal challenges, I believe), and bedroom tax reapplied in April, it probably would make sense for tenants to use it to shore up the shortfall for future rent due.

However, the criteria for DHP will remain the same, and it may be that the claimant can continue to get that, but it is 'discretionary'.

Lin

cattermole

With DHP they can also say there isn't enough money to pay it, if the pot is empty regardless of assessments. As part of an assessment any available capital could be considered.

Yes they will refund the benefit into a bank account or should do!

fluffymovie

Just to weigh in here, there are occassions when we can recover DHP in some instances so it's not accurate to say there is no legislation which permit this - Reg 8 (2) of the Discretionary Financial Assistance Regs

This says
8.



—(1) A relevant authority may review any decision it has made with respect to

the making, cancellation or recovery of discretionary housing payments in such

circumstances as it thinks fit.

(2) Without prejudice to the generality of paragraph (1) above, a relevant authority

may, on any such review, cancel the making of further such payments and recover a

payment already made where that authority has determined that–

(a) whether fraudulently or otherwise, any person has misrepresented, or failed

to disclose, a material fact and, as a consequence of that misrepresentation or

failure to disclose, a payment has been made; or

(b) an error has been made when determining the application for a payment, and

as a consequence of that error, a payment had been made which would not

have been made but for that error.

Some councils are taking the view that there was an error and therefore DHP's can be recovered. My council is not taking that view.

Have to say that personally, if my LA had spent all it's DHP this time, and paying people twice for the same period meant I couldn't help another customer in need, this wouldn't sit well but that's my personal opinion.

Morglin

The local councils chair was on TV last week, and stated that, in these particular circumstances, councils had been advised (legally) that to recover the DHP would result in losing any court action.

Although it hasn't been tested, I assume that is why most, if not all, councils are not even going to try recovery.

Lin

cattermole

Thanks Fluffy very interesting. So in other circumstances they can recover it.

yankee77

Hi

Just an update on my claiming my Bedroom Tax Money back. I got the details from DWP with proof of my Benefit from 1996 to 2004 and I also sent in my Tenancy Agreement with my address on from 1994, though have lived here since 1981.

I got a letter back saying thank you for the proof I have sent in, that was a week on Friday gone. So it is now just a case of waiting for the reply; I also put my bank details on the letter I sent.

And I also contacted a Counsellor via email, that replied same day saying he has his officers working on the case now. A lady replied back by email saying the time limit was an estimate only and is set by the councils, but can be adjusted if I was late in getting proof back to them - I was not as I have had proof back to them two weeks before the time limit.

I was also told that the DHP does not have to be paid back. I am still paying my rent as I have to until it is all sorted.

Can anyone tell me, are they closing the Bedroom Tax loophole with this Official Error? It is just that I have read conflicting answers with this some say yes, and others have said it is not that easy for them to do so.

Thanks

pmlindyloo

Seems that the loophole has been closed from the 3 March 2014.

http://disabilityrightsuk.org/news/2014/february/bedroom-tax-loophole-closed

Morglin

The loophole has been closed, but that doesn't affect anyone owed money because of this error.

Tenants affected are still entitled to a refund, and councils have been told they cannot recover it from any DHP amounts paid.

Anyone having problems should contact their MP or councillors.

Lin

yankee77

Hi Morglin

I will hopefully get what I have paid this last year back soon. I had a letter yesterday about how much my new rent has now gone up to, mind you this was full rent, and it has yet to be figured out how much Bedroom Tax I will have to start paying again.

In the letter it has stated rent has gone up, so I can only assume that once my benefits have been taken into consideration then the Bedroom Tax each week for the year to come will be higher than last year.

People are struggling as it is with the last year's bedroom tax let alone it going higher this year.

Does anyone know if Support Group ESA is going up, or the Low Rate Mobility for this year ahead?