Guidance

LA Welfare Direct Bulletin 2/2019

Updated 4 March 2024

Contact

If you have queries about the:

• technical content of this bulletin then contact details are given at the end of each article
• general content and distribution of this bulletin, contact
  

housing.correspondenceandpqs@dwp.gsi.gov.uk

Who should read

All Housing Benefit staff

Action

For information

Editorial

You are probably working through your budgets for 2019-20. In the Department for Work and Pensions (DWP), it is no different as we finalise our Winter Planning process so we can make firm allocations of budgets across our business, including the funding we provide to partners and contractors. Overlaid on this, we are also starting to gear up for an anticipated Spending Review knowing that something has to happen soon to set our funding envelope from 2020 onwards.

While there is some relaxation on spending, DWP is not a protected department. We are working on the assumption of continued efficiency challenges. My role is to minimise the impact of change and funding pressures on the delivery of Housing Benefit (HB) while it remains a crucial source of support for millions of families.

Despite all the pressures you face, you are continuing to deliver HB timeously. The right time statistics for quarter two show processing times for new claims holding steady while there has been a small reduction for changes of circumstance, which form a growing proportion of your work load. We are not complacent about this and continue to seek ways to support delivery.

Over the last year or so, we have endeavoured to better understand your delivery costs and to ensure allocations of funding match demand. We have assessed and reviewed New Burdens to ensure we are complying with the New Burdens doctrine. We continue to look for ways to improve the data we share with you and streamline the processes by which we do this. We are working to support debt recoveries through the HB debt service and our team of highly-rated performance consultants are ready to support individual authorities with their challenges.

I am particularly proud that my team is leading the way with colleagues across DWP to transform the Blue Badge service to improve customer service and reduce costs. It is early days but the potential for the technology we are developing is huge.

One of our Permanent Secretary’s leadership priorities is to encourage further partnerships with other parts of government and stakeholders. To do this we need to listen to our partners which is why the Insight survey is so valuable to us. Thank you to everyone who provided a (record) response to the latest one. We also rely heavily on your help when we change or develop new services, for example on the replacement for the Data Hub. Our LA secondees provide an invaluable source of expertise to help us get things right. For me, working in partnership is not optional, it is absolutely critical as we continue to provide a vital service to our customers.

Thank you, as always, for all you do.

Clare Elliott
Head of Housing Delivery Division

National Fraud Initiative 2018-19

1. The National Fraud Initiative (NFI) 2018-19 matches are being released to local authorities (LAs) and the Department for Work and Pensions (DWP) from 31 January 2019. These matches are delivered every two years (except for those between Housing Benefit (HB) and student loans which are released annually).

2. The matches aim to identify fraud and error in HB and related DWP benefits using a range of data sources and, as in previous years, NFI matches relating to DWP administered benefits (passported benefits) are released directly to DWP.

Review of matches

3. Individual claimants appearing in NFI matches have for the first time been allocated a risk score, which supersedes the previous ‘recommended filter’ criteria. Individuals are clearly categorised as High, Medium, or Low risk and LAs should use the category and specific risk score (range between 0-100%) to prioritise their reviews, specifically:

• LA staff should review, but not focus exclusively on, individuals with the highest risk score. The expertise and local knowledge of staff plus effective use of the NFI filtering tool can also be used to identify matches with a higher probability that they indicate fraud or error
• NFI HB matches that require fraud investigation should be referred to DWP on the referral template which is embedded in the NFI Tool. Users should complete the form within the NFI web application and submit it. From there it will be directed to the relevant DWP email inbox. A copy of the form entries will be retained within the web application. Only matches that indicate fraud should be referred to DWP
• Cabinet Office encourages all LAs to document their approach to each NFI report using the ‘Report Comment’ facility within the NFI web application. Matches between HB and the following should be prioritised for review:

­ - Student Loans data
­ - Taxi Licence data
­ - Market Trader Licence data

4. HM Revenue & Customs’ (HMRC) Real Time Information (RTI) is now used widely across DWP and LAs, so NFI payroll and Pensions data may duplicate this source. DWP and NFI are collaborating to further analyse and clarify any overlap. It is recommended that LAs review these NFI payroll and Pensions data cases at the initial sift stage and ensure they check to see if a referral has already been identified by RTI. Where there is an existing RTI referral then this should be progressed rather than the NFI referral.

5. There is no need to make referrals for Home Office to immigration data as DWP has a direct feed. The remaining match types should be considered and any likely to indicate fraud should be referred to DWP.

6. If you have and questions regarding the content of this article you should email
marie.cave@dwp.gsi.gov.uk

Reminder: Procurement of reporting accountants for the 2019-20 HB Assurance Process

7. As part of the new Housing Benefit Assurance Process (HBAP) DWP has published a number of instructional and guidance Modules. Module 1 (which included the standard engagement terms for the HPAP) was issued in March 2018 supported by further guidance in circular HB S7/2018

8. This is a reminder, that as part of the standard engagement terms each LA is required to provide DWP with a letter of notification confirming the procurement of a reporting accountant by no later than 1 March 2019 prior to the commencement of this financial year for which this procedure will apply.

9. Included below is the relevant extract from Module 1 of the HBAP guidance.

Role of the LA

­Module 1 which supports the HBAP contains a specimen notification letter

Module 1 includes the relevant responsibilities and timings pertinent to the receipt of the Reporting Accountant notification as follows:

• The LA is required to appoint a reporting accountant, by the 1 March prior to the commencement of the financial year for which this procedure will apply, to perform the specific test requirements set out in the DWP’s HBAP modules in force for that year
• If the LA fails to appoint a reporting accountant by the deadline of 1 March, the Secretary of State may withhold part or all of subsequent payments of subsidy. The amount and scale of withholdings will be the decision of the Secretary of State. When the LA confirms the appointment of a reporting accountant the subsidy withheld can be released
• It is for the LA to appoint a reporting accountant to undertake this work and notify the DWP of the successful appointment. A standard letter of notification for the LA use is set out in Module 1(Appendix 1). This letter of notification must be issued to the DWP by the LA no later than the 1 of March prior to the commencement of the financial year for which this procedure will apply

Multiple year arrangements covering the 2017-18 reporting period and future years

• If an LA secured a multi-year engagement with a reporting accountant that covers HBAP in respect of the 2019-20 subsidy year and previously notified the DWP of that engagement, then a further notification is not required

10. If you have and questions regarding the content of this article you should email
hb.assurancequeries@dwp.gsi.gov.uk

Local Housing Allowance rates: Targeted Affordability Funding 2019-20

11. Following the Autumn Budget 2017 announcement you will be aware that further Targeted Affordability Funding (TAF) based on 50 percent of the savings from the Local Housing Allowance (LHA) freeze will be available in 2019-20.

12. As previously, the funding will be used to increase those LHA rates that have diverged the most from local rent levels. For 2019-20, 361 LHA rates will be increased by 3 per cent across Great Britain. The LHA national caps have also been increased by 3 per cent which now means any rates that qualify for the TAF in 2019-20 and are capped at national levels will receive a 3 per cent increase.

13. All other rates not targeted for this increase will either remain at the April 2015 level in line with the LHA freeze policy, or will be set at the 30th percentile of local rents if this is lower.

14. The new LHA rates will apply from 1 April 2019 and rent officers have now published those rates together with the 30th percentiles of local rents.

15. If you have any queries, please contact housing.benefitenquiries@dwp.gsi.gov.uk

Blue Badge Digital Transformation project

A Digital Blue Badge service

16. The Local Government Data Sharing Transformation (LG DST) Team are working on a project to create an online service whereby a citizen can assert their level of entitlement to Personal Independence Payment (PIP) (8 points or more on the ’Moving around’ score) validated in real time.

17. This ‘real time’ check will not only help speed up and simplify the process of applying for and receiving a Blue Badge for citizens, but will create huge savings in time, effort and money for LAs who administer this service for millions of people around the UK as the need to deal with paper copies of letters of entitlement (the evidence required to prove automatic Blue Badge eligibility) would be removed.

18. In addition, the digital architecture being created for Blue Badge is being designed in such a way to potentially support future LA service implementations requiring a DWP award ‘check’.

Bringing the team together

19. Since the summer, several important steps have been taken towards making ideas become reality. The LG DST team and DWP’s Identity and Trust programme, have put together a specific Blue Badge Digital Transformation project team, based in Sheffield. Together, we bring both the business expertise (understanding and conveying the needs of citizens and LAs) and the digital and technical knowledge required to build the service.

20. Working according to Government Digital Standards, we spent the time leading up to Christmas 2018 fully getting to grips with the business case for the project. This required breaking down all the needs of a citizen applying for a Blue Badge to identify the key points in the current system where improvements could be made, as well as working out any gaps in the team’s knowledge which demanded further research or thought.

Working with the Department for Transport

21. Having completed the initial phase of the project (known as Discovery), we have now moved into the ‘Alpha’ phase. During this period, we have started to build an initial piece of digital architecture which can prove the project’s initial concept in that a citizen can receive an immediate answer online, in real time, as to whether they are in receipt of the relevant level of PIP (including the PIP award end date) to assist with their application for a Blue Badge. The administering LA, upon receipt of the Blue Badge application, will also be able to confirm, in real time, PIP eligibility.

22. We’re continuing to work closely with both the Department for Transport, who manage the current digital Blue Badge service and their digital suppliers. As the project moves through towards the next phase, (namely Private Beta), we will be working with selected LAs to test, get feedback and hone the service.

23. If your authority wants to get involved or you want more information, just write to
bluebadgedigitaltransformation@dwp.gsi.gov.uk

Changes to the Data Hub in 2019

24. There are a number of changes happening in the Data Hub space in the first half of 2019, which will impact on LAs.

Data Hub re-platforming

25. As part of their on-going service level improvements, ATOS are planning to move their current services to a new hardware platform. This will improve service performance and provide a more stable environment resulting in a reduction in downtime of the Data Hub. LAs will need to access the Data Hub via a new URL.

Replacement of the Data Hub

26. DWP are currently developing an in-house replacement for the Data Hub. This will enable DWP to have more control over the solution, enable future changes to be made more quickly and bring significant savings to the department. The DWP solution will be called ‘Transfer Your Files’.

27. Housing Delivery Division (HDD) are working with our digital colleagues to ensure the impact on LAs will be minimal. There will, however, be changes that LAs will have to make; for example, there will be a new URL which LAs will have to arrange access to.

28. We have just carried out some early testing of the Transfer Your Files solution, assisted by a couple of LAs who have previously been involved in the Data Hub testing, and aim to have the solution in place before the end of May 2019.

Next steps

29. The two URLs mentioned above will be shared with all LAs as soon as they are available.

30. We will continue to provide regular updates on the progress of all the changes via the usual channels. In the meantime, if you have any questions please contact
lads.deliveryteam@dwp.gsi.gov.uk

Help to Claim service

31. The government announced on 1 October 2018 that DWP will fund Citizens Advice and Citizens Advice Scotland to provide a new Help to Claim service from 1 April 2019. We are creating a brand new partnership between DWP and Citizens Advice and Citizens Advice Scotland to deliver Help to Claim, providing the best possible support for the most vulnerable claimants in making a claim to Universal Credit (UC) and up to their first full UC payment.

32. The Help to Claim service will be available in England, Scotland and Wales and will be delivered by Citizens Advice and Citizens Advice Scotland with continued close partnerships with LAs and other local delivery providers to ensure the highest level of local service delivery.

33. If your LA has any questions or issues about the Help to Claim service, they should firstly raise these with the local Citizens Advice Chief Officer. If you think that issues are unresolved or that the service will not meet your local needs you can escalate by emailing feedback@citizensadvice.org.uk for England and Wales and <info@cas.org.uk for Scotland>.

UC Local Authority Support Pack

34. The responsibility for the maintenance of the UC Local Authority Support Pack has recently moved to HDD. HDD are intending to use this opportunity to carry out a full review of the content and design of the pack to ensure it continues to meet user’s needs. We will update you on progress shortly.

Payment Deduction Programme

35. The contact details shown in circular HB A6/2016 have now been updated and LAs should only use these details for escalation of issues as noted below:

Debt Management

36. Debt Management will deal with issues regarding recoveries, payments, balances, etc. in accordance with the Service Level Agreement. Queries can be raised by phone on:

• 0800 916 0647

37. You should refer to the Service Level Agreement between DWP Debt Management and LAs for more information.

38. Changes to banking details or local office codes must be notified as soon as possible to ensure the accuracy of payment schedules. LAs should notify any changes by email to
debt.accountingandfinance@dwp.gsi.gov.uk

39. We would like to remind Capita and Civica LAs that revisions will continue to be treated as non-genuine revisions. Details of any revisions which LAs wish to be treated as genuine should now be emailed
debtmanagement.businessreleaseteam@dwp.gsi.gov.uk

Local Authority Security Support Team

40. The Local Authority Security Support Team (LA-SST) team will follow existing Incident Management Processes to deal with technical or Data Hub connectivity issues, non-receipt of files or problems with uploading or downloading files to and from the Data Hub.

• You can contact the LA-SST team by:
  email LA-SST.HDD@dwp.gsi.gov.uk
  phone on 01253 689422.

Form LA17

41. LAs are required to use form LA17 to tell DWP about a change of circumstance or discrepancies in a HB or Council Tax Reduction claim. It has come to our attention that some LAs may be experiencing difficulty in identifying the correct email address for the relevant Service Centre. The correct email addresses are:

• Jobseeker’s Allowance - sunderlandbdc.jsainternalclaimsmaintenance@dwp.gsi.gov.uk
• Income Support - watfordbdc.ischanges@dwp.gsi.gov.uk
• Employment and Support Allowance - belfastbdc.esa@dwp.gsi.gov.uk
• Pension Credit - newcastle.pensioncentre@dwp.gsi.gov.uk

Update: LA Insight surveys

42. The LA The survey fieldwork for the Insight Survey Wave 36 on Discretionary Housing Payments was completed in December 2018.

43. We had the highest response rate to an Insight survey in over a decade. This high level of LA engagement means the findings are more reliable for generalisability and will have more significant weight in future policy development. The DWP hugely appreciates and thanks you for your robust input to this research and ongoing cooperation on all research efforts.

44. In-depth follow-up interviews with a smaller number of LAs were conducted over December and January 2019. Again, the engagement from LA staff has been commended by the researchers.

45. The findings from the survey and in-depth interviews will inform the 2019 Spending Review and the future of DHPs more broadly.

Publication of Waves 34 and 35 report findings

46. Finally, thank you again to everyone who took part in Waves 34 and 35 of the LA Insight Survey, of which the report findings were published in December 2018.

47. Your input to these surveys is invaluable to us and previous recent impacts include influencing the ongoing supported housing policy and delivery discussions, improving DWP led LA workshops, and feedback gathered on operational issues and challenges within specific policies such as HB backdating.

Windrush compensation scheme

48. The Home Office (HO) expect to launch the compensation scheme during February 2019 with applications made direct to the HO.

49. DWP is working closely with both the HO and The Treasury, to finalise DWP/LAs input to the claim process and agree how compensation payments are to be treated for benefit administration purposes. Once agreed, handling will be communicated to all LA’s through an HB Adjudication circular; expected to be issued during February/March 2019.

50. At this stage estimated impacts are low, albeit those LAs with highest geographic populations of Commonwealth nationals are likely to see more cases, compared to those with lower populations.

51. Further support or advice is available through the Home Office Partnership team (who have made contact with those LAs with the highest Commonwealth national populations) or via email to
hdd.strategyteam@dwp.gsi.gov.uk

Publication of HB Speed of Processing statistics

52. We published HB Speed of Processing (SoP) statistics and associated data for the quarter 2 (Q2) period June to September 2018 on Wednesday 30 January 2019. Here are some key points:

New claims

• The average time taken to process new HB claims in Q2 of 2018-19 was 22 calendar days, this is the same as it was in Q2 of 2017-18
• In Q2 there were 190 thousand new HB claims. This represents a decrease of 26 thousand (12%) since the last quarter and a decrease of 67 thousand (26%) since Q2 of 2017-18

Changes of circumstances

• The average time taken to process changes of circumstances to HB claims for Q2 of 2018-19 was 8 calendar days, this is one day lower than in Q2 of 2017-18
• For Q2 there were 2.3 million changes of circumstances to HB claims. This is a decrease of 901 thousand (28%) since last quarter and a decrease of 495 thousand (18%) cases since Q2 of 2017-18

To note:

• In Q2 of the financial year 2018-19, 92% of HB claims processed were change of circumstances on existing claims and the remaining 8% were new HB claims
• The roll out of UC Full Service means that new HB claims are no longer accepted in some UC areas. This may have an impact on the SoP figures at LA level; namely that the number of new claims will fall in these areas and the processing days for new claims may change. We are monitoring the impact of this.

53. See full details on Housing Benefit: statistics on speed of processing 2017 to 2018

Secondment opportunities in HDD

54. The department is currently undertaking a huge programme of Welfare Reform. Working with LAs, who are one of our major stakeholders, continues to feature heavily and for this reason we value the expertise and knowledge that LA HB experts can bring to the team. These secondment opportunities provide an opportunity to gain an insight and experience of policy development and workings of central government.

55. HDD has had a programme of bringing HB experts from LAs in to work alongside Data Sharing, Subsidy, Change and Performance teams on secondment. We are now looking to register your interest for further secondment opportunities over the coming months.

56. HDD comprises of approximately 100 staff. The division is responsible for overseeing the performance of LAs in their delivery of HB (circa £21 billion), allocating HB administration subsidy (circa £215 million) and DHPs (circa £150 million). HDD monitor a range of performance data including how quickly and accurately HB is paid and the prevention and detection of fraud and error. HDD offer support and challenge to those LAs not meeting performance expectations.

57. It also supports a large program of data sharing activity that is paramount in helping LAs pay the correct amount of HB and is heavily involved in managing change activity supporting the welfare reform agenda.

58. This is an exciting opportunity to play a leading role in maintaining and improving stakeholder relationships between DWP and LAs and in designing innovative opportunities for closer working during this busy and complex period of welfare reform.

Personal requirements

59. Candidates should possess the following:

• good understanding of HB procedures and regulations
• good drafting and communication skills
• ability to build and maintain effective working relationships with LAs and other stakeholders
• ability to work with people at different levels in the organisation and to work as part of a team to achieve results
• ability to deliver work at pace and with successful, quantifiable outcomes

Further Information

60. Secondment posts would be offered for 12 months initially but this would be reviewed at the end of the period and could be extended for up to a maximum of two years. The posts would be full time and based across the country, although no moves at public expense would be considered. These opportunities will be determined by business need so your CV will be kept on file and you will be contacted once a suitable opportunity arises.

61. If you are keen to register your interest and are at S01/S02/SO3 and Pay Band level 4 or equivalent, (roughly equates to civil service HEO/SEO/G7 grades) please:

• check with your LA that you could be released; and then
• send your CV by email to Philip.j.sharples@dwp.gsi.gov.uk

HB Cases with the Upper Tribunal

HB decisions by the Upper Tribunal

62. Decision Making and Appeals (DMA) Leeds is aware of the following HB cases that have been decided by the Upper Tribunal (UT):

• CSH/268/17: “Looked after” children treated as not members of claimant’s household.
• CH/97/18: The use of a bedroom as a home office could generate an allowable business expense.
• CH/5499/14: Removal of Spare Room Subsidy (RSRS). Overnight carer so claimant eligible for two bedrooms.
• CSH/89/18: Regulation 9(1)(d) – landlord father of claimant’s child - can include one of joint landlords.
• CH/462/17, CH 463/17, CH/3082/16 and CH/3083/16 are connected cases with this heading: Regulation 13D (2)(b). Married pair living separately in same rented house could create exclusive use of rooms within the house.
• CH/1011/15: RSRS. LA decision restored. Carmichael and Nelson followed.
• CH/2325/17: First-tier Tribunal erred in law by not considering if the claimant had a right to reside as a family member and remitted the case for an oral hearing for further fact finding.
• CH/1987/2017: Dismissed - tribunal’s findings not perverse – no evidence to find claimant was unfairly treated at the hearing.
• CSH/239/18: LA appeal allowed – UT remade decision - not an overpayment caused by official error, accordingly Regulation 100(2) of the HB Regulations 2006 does not relieve the claimant of the obligation to repay the overpayment.
• CH/177/17: RSRS. LA decision restored. Nelson followed.
• CH/3592/17: Appeal dismissed – overpayment is recoverable - claimant was a person subject to immigration control - no official error found.
• CH/2176/17: Claimant treated as possessing capital from reasonable point after probate granted.
• CH/3815/16 and CH/3816/16 are linked cases as follows: Terms of tenancy continued despite transfer of property from ex-husband to children.
• CH/1085/18: Remit – Overpayment recovery attempted under Reg 100, however, overpayment found not to be recoverable due to inadequate findings.

63. See decisions of the UT on the Courts and Tribunals Judiciary website.

64. If you have any queries about cases before the UT Judges or courts, please contact us by email at fldmdma.customersupportservices@dwp.gsi.gov.uk or fax on 0113 232 4841.

HB cases awaiting decision by the UT

65. Decision Making and Appeals (DMA) Leeds have been made aware of the following HB cases that are awaiting decision by the UT

• CSH/438/18: Appeal by the claimant against the decision of the Council’s assessment of his earnings and subsequent decision that he has been overpaid HB.
• CSH/89/18: South Lanarkshire Council – claimant renting property from his ex-wife and her new husband. HB Regulation 9 (1)(d).

New Legislation

66. The following Statutory Instruments (SIs) have been laid:

• 2018 No. 1261 The Child Maintenance and Other Payments Act 2008 (Commencement No.16) Order 2018, made on 28 November 2018
• 2018 No. 1279 The Child Support (Miscellaneous Amendments) Regulations 2018, made on 29 November 2018
• 2018 No. 1283 The European Network of Employment Services (EU Exit) Regulations 2018, made on 3 December 2018
• 2018 No. 1332 The Rent Officers (Housing Benefit and Universal Credit Functions) (Amendment) Order 2018, came into operation on 25 January 2019
• 2018 No. 1359 The Social Security (Reciprocal Agreement) (Isle of Man) (Amendment) Order 2018, coming into force on 6 April 2019
• 2019 No. 10 The Universal Credit (Transitional Provisions) (SDP Gateway) Amendment Regulations 2019, came into force on 16 January 2019
• 2019 No. 37 The Welfare Reform Act 2012 (Commencement No. 31 and Savings and Transitional Provisions and Commencement No. 21 and 23 and Transitional and Transitory Provisions (Amendment)) Order 2019, made on 14 January 2019

67. The following Statutory Rules (SRs) of Northern Ireland have been laid:

• 2018 No. 209 The Housing Benefit and Universal Credit Housing Costs (Executive Determinations) (Amendment) Regulations (Northern Ireland) 2018, came into operation on 25 January 2019
• 2019 No. 2 The Universal Credit (Transitional Provisions) (SDP Gateway) (Amendment) Regulations (Northern Ireland) 2019, came into force on 16 January 2019
• 2019 No.4 The Welfare Reform (Northern Ireland) Order 2015 (Commencement No. 13 and Savings and Transitional Provisions and Commencement No. 8 and Transitional and Transitory Provisions (Amendment)) Order 2019, made on 14 January 2019

68. Copies of SI/SRs can now be downloaded from legislation.gov.uk

What’s new on our HB pages on www.gov.uk

69. The following items can be found on the website link shown:

Document type	Subject	Link
LAWD12/2018	Editorial	LAWD12/2018
	Universal Credit data sharing issues
	UC rollout
	Update: National Fraud Initiative
	Pension Credit Computer System uprating
	LA Insight Survey Wave 36 deadline for completion
	Best Start Grant
	New HB resilience guidance for LAs
	Amendments to UC regulations
	Help to Save
	HB decisions by the Upper Tribunal
	New Legislation
	What’s new on our HB pages on www.gov.uk
HB A8/2018	Housing Benefit: Uprating 2019-20	HB A8/2018
HB A1/2018 (revised	HB gateway: Severe Disability Premium and claimants with 3 or more children	[HB A1/2019]