The recent rule change in October 2005 that all charitable payment are ignored as income for housing benefit and council tax benefit, for people under and over 60, is causing me a headache.
The old rules had some logic. To prevent “double provision” payments for basic essential like food etc so some charitable payments only had a £20 disregard . Even though it could be argued that if you only get £44.50 job seekers allowance its pretty hard to pay for all the essential items to live on. But the old rule has stayed for people on income support and job seekers.
Here is an example I have just come across where this change is being used. “Ineligible charges” for housing benefit - heating hot water, water rates are not being charged to the tenants but paid by a charity.
Is my example what the change was intended for? Are there problems using the change like this?