Client lives in an HMO and pays rent for her bedsit and a half share with another tenant of landlords liability toward CT for that part of the property that she lives in.

HB are not meeting this as part of her HB and of course she is not eligible for CTB as she is not liable for CT. Surely this should form part of her contractual rent.

Hello

if there is a charge within the rent for the council tax then it is eligible. The Local Authority may consider that the charge levied is unreasonable and so may want to check the council tax account to work out a more reasonable charge and use that in the calculation of HB entitlement instead.

Look at HB Regulation 10 and the accompanying general note and analysis in Findlay. It is clear that the CTAX element is eligible as it is a "payment in respect of,or in consequence of,use and occupation of the dwelling"