Local authority questions and answers
Operating Local Housing Allowance - rent arrears
55. Should the payment be changed so that the landlord receives it direct once the tenant is over 8 weeks in arrears?
If rent arrears are owed, the local authority will arrange to make payments direct to the landlord unless it is not in the customer’s overriding interests to do so. However, landlords are encouraged not to wait for the 8-week period to be reached before contacting the local authority.
56. What action should be taken where a landlord is in pursuit of long term, pre-LHA rent arrears?
In this instance you would be expected to contact the landlord and investigate further. For example: how long have the arrears been outstanding and has the landlord been pursuing them? If arrears have been accruing for a number of years and landlord has taken no action it would be entirely reasonable for you to query why he has suddenly decided to take action.
Local authorities will have discretion to make decisions on direct payments based on the evidence provided.
However, you should be trying to prevent cases arising where a customer is clearly not using their benefit money to cover their housing costs and you should be encouraging landlords to report any missing payments at the earliest possible opportunity rather than resorting to the 8 weeks provisions. In most cases you would be looking at earlier evidence where it appears that the customer is unlikely to pay their rent.
57. If landlords demand 8 weeks rent in advance, is the customer ‘in arrears’ after one day of the tenancy so that the local authority is obliged to pay the landlord directly?
We have discussed this issue with national landlords groups and have explained that we will amend the regulations if necessary to prevent widescale use of this as a method to obtain direct payments to the landlord. Local landlord liaison will be the responsibility of each local authority.
58. In cases where the customer is withholding rent due to a dispute, should we suspend payment?
No. Prior to the implementation of the Decision and Appeals regulations 2001 HB Regulations provided for Local Authorities to suspend benefit where there was a tenant/landlord dispute. This was repealed in 2001 and the local authority can now only suspend where there is doubt over entitlement.
We have decided that 8 weeks is an appropriate amount of time to investigate the suspended vulnerability of a customer, and have therefore put the facility into the regulations for LA’s to pay the landlord for up to 8 weeks when investigating if customer is vulnerable. This can be found in Regulation 96 3B.
Local authorities will have to make a decision based on the evidence they have received who is best placed to receive LHA payment.