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In Northumberland service users of the Adult Placement Scheme are boarders because they get meals provided and paid for in the contractual rent. LHA rules therefore do not apply because a "significant portion" of the rent is for board. The "old" HB rules apply, including pre-tenancy determination, standard deductions for meals and utilities, etc.
With respect to the service users benefits (if any), for DWP means tested benefits purposes the gross rent including amounts for meals, heating, hot water, lighting, etc. will be treated as income from a boarder. The money would normally come from Housing Benefit and the service user’s own resources. The first £20 and half of the remainder will be disregarded. The rest will be taken into account as income. Payments made by the local authority or other bodies under community care arrangements are ignored provided the care being provided is on a temporary basis, otherwise they are fully regarded as income. In practice this means that an end date for the placement in the reasonable foreseeable future must be defined, or arrangements for alternative accommodation must be in hand. The requirement for periodic reviews does not make the placement temporary, neither does the use of a succession of fixed duration placements with the same carer that run consecutively. However, if the local authority is making payments in respect of a care leaver under s24 of the Children Act or in respect of a child in need under s17 of the Act, the payments do not affect means tested benefits.
HMRC have simplified arrangements for Adult Placement Scheme providers which allows fixed costs to be deducted from the APS income. In virtually all cases the taxable income will consequently be nil, and there will be no reduction in Tax Credits.
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