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HB Entitlement limited by subsidy?
Afternoon All,
Tenant living in temporary accommodation in a different borough to the placing borough and has a rental liability of £365.75 per week.
Housing Benefit has capped her entitlement at £306 per week. HB has explained that they are only able to pay £306 per week as this is the maximum subsidy they can receive from Central Government based on private rented LHA rates set in 2011.
LHA rates are not applicable here as we are a Housing Association and it is temporary accommodation. As far as I know, tenant is still owed a duty from the placing borough and they haven’t discharged their housing duty.
They also won’t pay DHP to top up the shortfall as they’ve basically said it’s not their problem.
Is what housing benefit doing correct? I have never come across a case where subsidy affects a claimants HB entitlement and the maximum they can claim towards their housing costs?
Tenant is not benefit capped and has substantial rent arrears because of this ‘subsidy entitlement’ which goes back to 2020.
Any advice would be greatly appreciated. My first thought would be appeal the decision due to official error, as it’s seems an incorrect decision, and not one based in law?
Many Thanks
Zeyneb