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Hi, I think the issue here is when did his qualifying period end? If he was already getting his full housing costs under the existing law which applied to him on 4th January 2009, then the DWP are right. It is only new claimants or people who were not already getting their full housing costs (ie getting either nil or 50%) who are entitled to the higher limit.
If he has only recently finished the qualifying period then you should be able to get the decision changed. See extract below from the explanatory memorandum to the regs (which are, by the way, SI 3195 of 2008).
I have had some issues with the reduced waiting period but none with the capital limit. Hope this helps.
'7.4 The changes introduced by this instrument will apply to the following
claimants:
• those making a claim on or after 5th January 2009 who have never claimed benefit before;
• those who make a repeat claim on or after 5th January 2009 which does not link to an earlier claim under current linking rules;
• existing claimants who are serving a waiting period on 4th January 2009, once they have been continuously entitled to benefit for at least 13 weeks; and,
• existing claimants who are receiving 50% of their eligible housing costs on 4th January 2009 under the existing rules, once they have been continuously entitled to benefit for at least 13 weeks;
• the change to the standard rate of interest will apply to all claimants who receive payments of mortgage interest or interest on other qualifying loans.'
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