Guidance

LA Welfare Direct lite 6/2020

Updated 11 December 2020

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1. Further guidance: Judgement RR –v– The Secretary of State for Work and Pensions

1. In U1/2020, the Department for Work and Pensions committed to providing further guidance on the interaction with Discretionary Housing Payments (DHPs) and the above judgement.

2. The judgement relates to the arrears payment of Housing Benefit (HB) following changes to the Removal of the Spare Room Subsidy (RSRS) regulations to allow an extra bedroom when either a disabled child or disabled non-dependant adult reasonably requires overnight care from a non-resident carer, and to allow disabled adult couples an extra bedroom if their local authority (LA) determines that they cannot reasonably share as a result of a member of the couple’s disability.

Effect of the judgment

3. We expect the tribunals have started to contact LAs regarding stayed cases that have now been decided in line with this judgement.

4. LAs should process the arrears through normal processes; the backdated HB payment cannot be off-set against any DHPs that may have been paid.

5. Annex A provides some questions and answers to help LAs respond to any queries they might receive. However, if you have any questions regarding the content of this article you can email housing.benefitenquiries@dwp.gov.uk.

Reminder: Data Sharing and IT issues consultation and engagement forum

6. As advised in LAWD5/2020, the next forum will be held on Wednesday 24 June from 11am to 12 noon.

7. The agenda will be identical to the first forum meeting. It will begin with updates on recent or soon to be delivered projects and LA questions about these updates. We will then canvass for issues/problems that LAs are currently experiencing. Finally, if there is time, we will seek LA ideas on future data sharing or automation projects we might consider.

8. We ask that those dialling in to:

  • seek input and feedback from as many of their colleagues as possible prior to dialling in, for example, questions they might want answering

  • have knowledge, at least at a high level, about data sharing, data matching and current IT topic areas

  • feedback to their colleagues about how the conference call went, including the answers to the questions we asked

9. The dial-in instructions are as follows:

  • Dial 020 3481 3254

  • Enter the participant code 6278652#

10. All LAs are encouraged to ensure that at least one staff member dials in. If you have any questions ahead of the call, you can contact the LA Data Sharing Delivery team using the email lawelfare.ladsdeliveryteam@dwp.gov.uk.

11. We have been contacted by a number of LAs to let us know that the link in the LA Support Pack to the National Benefit Fraud Hotline information to report benefit fraud to DWP is no longer working.

12. We are currently updating the LA Support Pack and will include the new link. In the meantime, LAs can link to the Hotline information here if they need to make a fraud referral by phone or online.

3. Annex A

Questions and answers: Judgement RR –v– The Secretary of State for Work and Pensions

Q1. If we pay backdated HB but the claimant was in receipt of a DHP award doesn’t this mean they will be double funded?

A1. If the claimant was in receipt of a DHP award for all or part of the period then the re-calculation of HB, without the RSRS deduction means the claimant will be, in effect, paid twice. However, this is in line with the existing benefit rules and is necessary to comply with the court ruling.

Q2. In what circumstances can a DHP award be recovered?

A2. It is for the LA, who paid the DHP, to determine whether a DHP is recoverable and, if so, whether they wish to do so. An LA has a discretion to review and recover DHPs if they decide that payment has been made as a result of either an error when deciding the application for payment or because of misrepresentation or the failure to disclose a material fact, whether fraudulently or otherwise - Regulation 8 of The Discretionary Financial Assistance Regulations 2001.

Q3. Is it reasonable to reduce/remove a current DHP to effectively recover any ‘overpaid’ DHP?

A3. LAs should continue to apply existing DHP guidance and policies when considering DHP applications. We expect that will include an assessment of an applicant’s full financial situation which could include taking account of lump sum payments of backdated HB.

Q4. What is the recovery process for DHPs?

A4. There is no provision for overpaid DHPs to be recovered from other benefits. Therefore, the only method of recovery if a DHP is recoverable is to request repayment of the debt from the claimant. This may be in the form of an invoice or however the LA chooses to do so.

Q5. Can a DHP only be recovered in the year that it was made?

A5. If an LA consider that a DHP is recoverable (in the circumstances set out in the legislation) then the LA can seek recovery regardless of the year in which it was paid.

Q6. What happens to any DHP funds recovered?

A6. Any funds recovered in the year the award was made could be retained by the LA for use within the same financial year. In line with HM Treasury guidance, LAs are not able to carry over any recovered funds. Where a DHP from a previous financial year is recovered, the LA’s allocation of DHP funding for the current year is reduced by the value of any amount recovered.

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