Tony,
Correct - payment(s) on account only applies to rent allowances and has done ever since April 1988 (when the guts of the current scheme took effect).
However, based on my (albeit relatively limited) experience of LA possession/ benefit cases, possession is only normally granted where the clmt has contributed to delays, or failed to provide info, or is shown to have used benefit claims/appeals as a delaying tactic.
If the LA is pursuing the hearing in the knowledge of an outstanding benefit claim, I'd be very surprised if there is not more to the case than has been stated.
Regards
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