For non-"fraud" cases, the MAXIMUM ongoing deduction is set by HBR 102(2)(b). It "works" like this:
5% of the single person's personal allowance (25+): £3.215 (5% of £64.30)
rounded up to the next 5p: £3.25.
multiply by 3: £9.75
Interestingly, I can see nothing in HBR 81 (rent free weeks) that authorises an apportioning adjustment for deductions under HBR 102. BUT, the wording in HBR 102(2)(b) is quite ambiguous. It starts of by referring to "...deductions...from housing benefit it <i.e. the LA> is paying to a claimant...". Obviously, in rent-free weeks, no HB is being paid. But, the next part makes reference to "...the deduction in respect of a benefit week...".
I think it is difficult to argue that rent free weeks are not benefit weeks. If that is correct, the crux is whether HBR 80 has the effect of making HB payable for the rent free weeks. My view is that it doesn't have that effect. The point of HBR 80 is not to make HB payable for the rent free weeks, but to "compensate" in the rent chargeable weeks. But, there may well be room for argument.
As an aside, does the wording of HBR 102(2) mean ongoing deductions can only be made under this provision where payment is physically being made to the clmt? I can't immediately see any reference to "landlord", nor any "deeming" provision. I can't see that this is addressed in the CPAG; anyone got any thoughts on this? The only possible override I can see is the opening in para (1): "Without prejudice to any other method of recovery....".
Unusually, I'm not going to join in the chorus of "ignore circulars" (as I have freely done in one or two other recent threads). In fairness, A27 was the uprating circular and these are normally distinguishable from the growing number of "we think / ignore the law" variety. So, true it isn't law, but the uprating circular is NORMALLY more reliable than most as it tends to deal with stark figures and facts without straying into interpretation.
For examples of circulars that are of the worst kind, see A19/2009 and A20/2009 (referred to yesterday - 23/11). Awful.
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