Good Morning, hope someone can assist.

My Client wants to know if housing costs for mortgage have to be paid direct to the lender or if the Job Centre Plus could use their discretion to pay claimant instead. Have looked in CPAG but cant find anything to suggest they can use discretion in this matter.

Sarah

I have it in my mind that they can pay arrears direct to claimant but not ongoing payments. Don't know what I'm basing that on, mind...

Regulation 34A Claims and Payments Regulations says:

'34A.–(1) <2In relation to cases to which section 15A(1) [3or, subject to paragraph (1A), section 15A(1A)> of the Social Security Administration Act 1992] (payment out of benefit of sums in respect of mortgage interest etc.) applies and in the circumstances specified in Schedule 9A, such part of any relevant benefits to which a relevant beneficiary is entitled as may be specified in that Schedule SHALL be paid by the Secretary of State directly to the qualifying lender and shall be applied by that lender towards the discharge of the liability in respect of that mortgage interest.'

So, there's no discrtion, the only exception is if the lender does not qualify or has opted not to be treated as as qualifying lender.

I think that 1964 is right because amongst other things Schedule 9A says:

6. Payments to qualifying lenders under regulation 34A <20or 34B> and this Schedule shall be made in arrears at intervals of 4 weeks.

Which I read there's no power (or duty) to make these payments further back than the last 4 weeks.

Indeed when the system came in at first it was called "mortgage interest direct". I don't think there can be be many non-qualifying lenders out there.