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Top Housing Benefit & Council Tax Benefit topic #7599

Subject: " claimant rents other property to son" First topic | Last topic
jeannetteg
                              

Money Advisor, Dales Housing Derbyshire
Member since
07th Feb 2007

claimant rents other property to son
Tue 13-Jan-09 09:50 AM

Hi,
One of our tenant's has just had HB stopped due to PC being cancelled.
Before claiming PC ,the tenant claimed HB & declared at start of claim that her son, aged under 60, occupies her former home and pays rent. HB disregarded rent income & capital value of home & awarded HB. PC have investigated and decided that she is not entitled due to having other property but have not told L.A whether it is due to capital value or rental income. Any ideas?
Thanks,
Jeannette

  

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Replies to this topic
RE: claimant rents other property to son, stainsby, 13th Jan 2009, #1
RE: claimant rents other property to son, stainsby, 13th Jan 2009, #2
RE: claimant rents other property to son, jeannetteg, 13th Jan 2009, #3
      RE: claimant rents other property to son, nevip, 13th Jan 2009, #4

stainsby
                              

Welfare Benefits Officer, Gallions Housing Association, Thamesmead SE London
Member since
22nd Jan 2004

RE: claimant rents other property to son
Tue 13-Jan-09 12:27 PM


The capital value of the house is is disregarded only if her son is "incapacitated" given that he is under 60 (Sch 6 para 4 HB Regs). This applies equally to PC (Sch V para 4 PC Regs)

S15 of the State Pension Credit Act prescribes income that is to be taken into account for SPC. Income from capital is prescribed, but Reg 15(6) of the SPC Regs reads:

(6) For the purposes of section 15(2), a claimant’s capital, other than capital disregarded under Schedule V, shall be deemed to yield a weekly income–
(a) in the case of a claimant residing permanently in accommodation to which paragraph (7) applies, of £1 for each £500 in excess of £10,000 and £1 for any excess which is not a complete £500;
(b) in any other case, of £1 for each £500 in excess of £6,000 and £1 for any excess which is not a complete £500.

Payments of rent as such is not prescribed in S15, but Sch 5 para 17 of the HB Regs refers to "income derived from capital disregarded under para...4 of Sch 6", so I would say that the rent in this case is clearly income derived from capital, and so for both HB and PC, the actual income is taken into account.

  

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stainsby
                              

Welfare Benefits Officer, Gallions Housing Association, Thamesmead SE London
Member since
22nd Jan 2004

RE: claimant rents other property to son
Tue 13-Jan-09 12:32 PM

I would appeal both the PC and HB decisions.

Not sure about the chances of success with PC on the information available, but you may have a good chance with HB, because (assuming the capital value of the house was correctly disregaded) any mortgage payments can be offset against the rent received.

The Council should re-assess the HB award based on your clients curretn circumstances, because of itself the termination of a passporting benefit is not suffieient to end the HB/CTB award (see CH/3736/2006)

  

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jeannetteg
                              

Money Advisor, Dales Housing Derbyshire
Member since
07th Feb 2007

RE: claimant rents other property to son
Tue 13-Jan-09 01:04 PM


Thank you.That's helped clarify the matter for me.
Jeannette

  

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nevip
                              

welfare rights adviser, sefton metropolitan borough council, liverpool.
Member since
22nd Jan 2004

RE: claimant rents other property to son
Tue 13-Jan-09 04:38 PM

Under what kind of tenancy does the son pay rent?

  

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Top Housing Benefit & Council Tax Benefit topic #7599First topic | Last topic