Guidance

LA Welfare Direct Bulletin 7/2019

Updated 4 March 2024

Contact

If you have queries about the:

• technical content of this bulletin then contact details are given at the end of each article
• general content and distribution of this bulletin, contact [email protected]

Who should read

All Housing Benefit staff.

Action

For information.

Editorial

A lot of our work at the moment is building up to the next Spending Review (SR). It hasn’t been launched yet but we know it has to be soon as we are nearly at the end of the SR15 period and don’t have budgets set after March 2020. On the local government and housing strand, we are looking across our policies and operations to assess future demand, assess the impact of current policy and to consider options; particularly to tackle affordability.

For the last few years, we have worked closely with a number of local authorities to make sure we understand Housing Benefit (HB), Discretionary Housing Payment and Local Council Tax Reduction delivery costs. The information we have gathered from this work has been critical in funding decisions over the last couple of years and will be pivotal in the proposals we will be making to HM Treasury for future funding. I am really grateful to all the authorities who have continued to support this work.

We are under no illusion that the SR will be challenging. The Department for Work and Pensions (DWP) is not a protected department and so our efficiency challenge tends to be higher than for some other departments. Our strategy remains to do all we can to mitigate the impact of reduced budgets. We do this by supporting debt recovery, automating processes, improving the end to end customer journey (interface with DWP), improving data shares and through individual and group support on performance.

You will see that a fair chunk of this month’s bulletin is devoted to data sharing, with a particular focus on finding and correcting fraud and error. While capacity to do more is often limited, it is really important that we focus our endeavours on those actions which are going to make the biggest difference. So we are working to extend and improve our Housing Benefit Matching Service rules and assessing where some of the review work could potentially be done within DWP operations.

We are getting really encouraging results from the exercise we ran last year to review self-employed claims which we will be feeding into the spending review. We have also been working with a number of local authorities (LAs) to test out our new Caseload Management Indicator data to see if we can identify those cases most likely to have fraud and error. It is early days, but the indications are that the approach is working to find high value cases. The evidence on Verify Pensions and Earnings is also encouraging. All this helps us build a picture of the benefits we can derive from further investment in the HB service.

None of this would be possible without the excellent partnerships we have with the local government sector and how we work together to test and learn. We know we have challenges ahead but, working together, we will continue to ensure vulnerable people and those on low incomes keep a roof over their heads and that the right people get the right benefit at the right time.

Clare Elliott , Head of Housing Delivery Division

New Housing Benefit Matching Service rules

Housing Benefit/Universal Credit Housing Costs rule (UCHB007)

1. The Department for Work and Pensions’ (DWPs) Housing Delivery Division (HDD) has been working to develop a new rule that will match cases where HB and Universal Credit (UC) Housing costs are both in payment at the same time.

2. We are still developing the rule following a test phase that took place in February 2019 with a number of LAs.

3. The test was successful given the fact that all LAs received referrals that identified an incorrect duplication of payment.

4. However, further analysis of the test results did identify two issues. Firstly, a high volume of the referrals showed the claimant was in specified/temporary accommodation and HB was being correctly paid. These matches will be removed from the rule and will be referred to UC for action.

5. We are aware that in some exceptional cases that the claimant could be in receipt of HB and UC housing costs and these will continue to remain in payment.

6. The second issue identified was a low volume of cases where LAs were not receiving their HB Stop Notifications to cease payments of HB.

7. Further investigation of this issue identified that the Customer Information System (CIS) HB interest indicators were not being updated correctly at all times by some LAs. This incorrect action has resulted in HB Stop Notifications being sent to the wrong LAs and HB payments not being stopped.

8. A recent exercise to refresh all the CIS HB interest indicators that took place in April 2019 will have corrected all the current records. It is expected that following full rollout of the CIS automation project the issue should be rectified on an on-going basis.

9. It is anticipated that the new Housing Benefit Matching Service (HBMS) rule should be ready for release to LAs by early August 2019. We will write to notify you of the go-live date once we have clearer timescales.

10. If you have any queries regarding the content of this article you can contact Karen Macaulay by phone on either 01253 689427 or 07785716585. Or you can email [email protected].

Undeclared self-assessed earnings rule HBSA002

11. HB is the largest area of loss in any of the continuously measured benefits. The single largest area of loss is earnings and employment with an estimated £584 million (44%) of HB total loss in overpayments.

12. Recent SHBE (Single Housing Benefit Extract) data, has shown that around 18% of the earnings reported are self-employed earnings.

13. In 2018, HDD funded LAs to check referrals where no changes to self-declared self-employment earnings had been notified to the LA in the last 12 months or more.

14. This exercise proved very successful and helped to provide the evidence required for the development and implementation of self-assessment rules.

15. At this moment in time, there is nothing in place within the suite of HBMS rules to support LAs in identifying both:

• undeclared self-employed earnings
• under or over-declared self-employed earnings

16. Recent testing has been conducted with a number of LAs to support the closing of this gap.

17. As a result, a new HBMS rule (HBSA002) in support of undeclared self-employed earnings was released on 3 July 2019.

18. The rule will identify HB claimants and/or partners who have not declared self-employed earnings to the LA, but HM Revenue and Customs records show details of self-employed earnings of between £1,000 and £10,000 notified via self-assessment. Note: a rule identifying HB claimants with self-employed earnings in excess of £10,000 is currently sent direct to DWP Fraud Investigations.

19. Testing has shown that a high proportion of these cases result in changes or termination to the HB award.

20. We will write out again to provide further update on our plans to introduce another new rule to support under/over-declared self-employed earnings, once further testing is complete.

Further guidance

21. DWP has incorporated the new rule into the existing HBMS Rules Guide which can be found on Glasscubes.

22. If you need further support or have any queries regarding the content of this article you can contact by phone 0207 245 3888 or email [email protected].

Removal and improvement of 6 HBMS rules

23. Following consultation with DWP Counter Fraud and Compliance Directorate (CFCD) colleagues we have identified two rules (see table below) HBRP004 and HBRP107 that are deemed appropriate for removal from HBMS and referred directly to CFCD for a full fraud investigation.

24. The remaining 4 rules HBJS105, HBJS212, HBES105 and HBPC105 (see table) will be redeveloped to improve the quality of the referrals.

25. These 4 rules will have all cases, where it is identified that there is a false declaration for a HB claim, removed and these will be referred directly to CFCD for a full fraud investigation.

26. The remainder of the referrals within the 4 rules will be subject to further enhancements to ensure that they accurately pick up cases where the entitlement to benefits have ceased and HB should be stopped.

Table of Housing Benefit Matching Service rules

HBMS rule	Description
HBJS105	Identifies claims to HB made on the basis JSA income-based (IB) is in payment but no current entitlement to the benefit exists.
HBJS212	Identifies claims to HB made on the basis that JSA Contribution (C) is in payment but no current entitlement to the benefit exists.
HBES105	Identifies customer and partners on HB claim who have stated they are in receipt of Employment and Support Allowance (ESA) but there is no match on the ESA system.
HBPC105	Identifies customer and partners on HB claim who have stated they are in receipt of Pension Credit but there is no match on the PC system.
HBRP004	Identifies a foreign address recorded on State Pension but not on HB.
HBRP107	Failure to declare Occupational Pension (using Retirement Pension data).

27. Using HBMS management information, which is based on the monthly return from LAs, it showed that these referrals are a low priority for LAs with only an average of 24% of the rules being actioned each month.

28. Out of the 24% many of the cases are already being referred to CFCD for fraud investigation.

29. The rules have been analysed by CFCD investigators during December 2018 and January 2019 and results revealed that the referrals were of a quality that were likely to warrant a fraud investigation.

30. The findings supported a projected rise in the ‘hit rates’ to 42% and an increase in identified overpayments from £5 million to £35 million (if calculated on an annual basis).

31. The new rules are being built within CFCD and we expect the changes to take place around August 2019. We will write to confirm the dates once we have clearer timescales from CFCD colleagues.

32. If you have any queries regarding the content of this article you can contact Karen Macaulay by phone on either 01253 689427 or 07785716585. Or you can email [email protected].

Refresh of rule HBPD001 (prisoners in England and Wales)

33. HBMS currently runs a rule HBPD001 which matches against prisoner data for England and Wales and highlights instances of incorrectly paid HB.

34. The rule identifies cases, where DWP have not been informed of a custodial sentence being imposed to an existing HB claimant or their partner, therefore prompting the LA to make any necessary adjustments to the HB award.

35. HDD has sought to improve the quality of referrals provided within this rule as out-of-date information, previously used within the matching process, having now been removed.

36. The rule stayed ‘live’ in delivery whilst the changes were being developed and the improved referral data came into effect on 10 June 2019.

37. If you have any queries regarding the content of this article, contact Mark Browne on 0207 245 3888 or email [email protected].

Clarification of HBMS results method

38. HDDs Performance Development Team’s consultants and Performance Relationship managers recently carried out a HBMS fact finding exercise where they engaged with 57 LAs in order to gain an understanding of their latest HBMS position.

39. This involved asking LAs 20 questions regarding their HBMS referrals. Their responses will be used to support a series of HBMS improvements over the coming months.

40. One of the questions asked was ‘What method do you use to send your HBMS results back to DWP?’. The responses were mixed and demonstrated a lack of understanding by some LAs on the correct method to follow to notify DWP on referral action taken. Out of the 57 LAs who were asked the question:

• 23 did not answer or were not aware of the method they used
• 8 LAs complete the SHBE fields that only part relate to HBMS
• 21 LAs complete the clerical results spreadsheet document that is contained within the HBMS referrals file sent to the LA each month
• 5 LAs provide a duplicate response by completing the SHBE fields and the clerical results spreadsheet.

41. There needs to be a consistent approach as to how LAs notify DWP. As the clerical results spreadsheet has been the prescribed method since 2005, DWP only use the statistics contained within this return to report on the efficiency of the HBMS rules. Following the prescribed method ensures that DWP reporting is accurate.

42. Some LAs have advised that despite completing their HBMS referrals they refrain from completing the clerical results spreadsheet. This may be due to the fact that completing a clerical return is too resource intensive. With this in mind, the data matching team are working with SHBE colleagues to look at the feasibility of ingesting the clerical results spreadsheet into the SHBE results.

43. In the meantime, HDD would be grateful if you could complete your clerical results spreadsheet each month and email to [email protected]. There is currently no requirement to complete SHBE fields to provide a return for HBMS.

44. We will write to you again in the near future with updates.

45. If you have any queries regarding the content of this article you can contact Karen Macaulay by phone on either 01253 689427 or 07785716585 or email [email protected].

Reminder: Maintenance of the DWP and LA Tool

46. As advised in HB G9/2016, DWP introduced a more structured approach for how they engage with LA HB teams in order to secure up-to-date customer information. This new approach, primarily used by Retirement Services (Pension) staff, centres around cases where there is a need to confirm or secure an up-to-date address for one of our customers, whose post has been returned marked ’addressee gone away’. This sharing of specified personal information is permitted under the Social Security Administration Act 1992 (sections 127, Paragraph 2 refers – previously sections 122C & 122D).

47. In line with this, DWP developed and deployed an LA Tool to all authorities to support this approach. This Tool has been regularly maintained to ensure that the correct and secure LA contact e-mail address is held in order to ask for this up-to-date customer information.

48. DWP often becomes aware that a change to the LA contact has occurred when the e-mail to the LA contact is returned undelivered. This then requires seeking the correct contact address which, invariably, takes time and delays the conclusion of the customer address enquiry. Therefore, as a reminder, we are asking for your on-going support in maintaining the LA Tool by advising DWP of any contact change (including central inbox addresses) via either your local DWP liaison contact or emailing [email protected].

49. If you have any queries regarding this article you can email [email protected].

Update on Transfer Your File

50. Transfer Your File (TYF), which is the replacement for the Data Hub, was tested with 4 pilot LAs (Bolton, East Riding, Leeds and South Ribble). This test proved invaluable in helping us identify and fix issues before we commenced national rollout. We’d like to take this opportunity to thank the above LAs for their help and support in this period.

51. The roll out of TYF commenced Tuesday 18 June 2019. Rollout to all LAs is taking place over a 4-week period with the rollout to the last tranche of LAs happening on the week commencing 8 July 2019.

52. All files that LAs currently receive via the Data Hub will be available on TYF at go live except for the UC files which will be made available after the last tranche of LAs have gone live. We will confirm the exact date shortly.

53. The latest frequently asked questions and the TYF user guide are available on Glasscubes.

54. Once an LA is live on TYF then any issues/incidents should be raised via the LA Security and Support Team as per the current process.

55. For any other queries regarding TYF please contact [email protected].

Benefit Cap in UC

Dual cases

56. Paragraphs 49 and 50 of circular HB A10/2016 explains what happens where claimants have dual HB awards (the cap is applied pro-rata across the two awards).

57. The Discretionary Housing Payments (DHP) guidance manual highlights that DHPs may be directed towards these cases and those individuals or families fleeing domestic violence.

UC and the benefit cap

58. On 7 November 2016 lowered and tiered cap levels were introduced as follows:

• National: £20,000 per year for couples and lone parents and £13,400 per year for single people
• Greater London: £23,000 per year for couples and lone parents and £15,410 per year for single people

59. Households are capped by DWP through their UC award and this applies to the whole award not just the housing costs element. This applies to claimants at the point they move across to UC. Claimants can still apply for additional support through the DHP scheme.

60. There are exemptions for vulnerable groups, for example, Personal Independent Payment and ESA Support Group and new exemptions from November 2016 for Carer’s Allowance (and the equivalent UC carer’s element and Guardian’s Allowance).

61. In addition, claimants receiving Working Tax Credits and UC households earning at least the earnings threshold (currently £569 per month), are exempt.

62. We expect the number of capped households under UC to increase as more households make a new claim to UC, which will reduce the HB caseload.

Data sharing and Support for UC capped customers

63. LAs will continue to receive UC claimant information through the current data sharing processes where there is a Local Council Tax Reduction (LCTR) interest set for the claimant in the Customer Information System (CIS).

64. The LA receives claim and payment data at the start of the UC claim and whenever there is a relevant change in the claimant’s circumstances or the UC claim is terminated. This information contains detail relating to when the benefit cap has been applied to the claimant and the amount that has been deducted from the UC payment. This UC information received in respect of LCTR can be used to support capped claimants; giving the LA the information that they need in order to support the claimant in the same way as an HB claimant and to support any claims for a DHP.

Specified or temporary accommodation

65. Claimants who are in receipt of UC but are living in specified or temporary accommodation and receiving HB for support with housing costs, are exempt from the application of the benefit cap in HB whilst UC remains in payment. If the UC claim is ‘nilled’ due to earnings or no longer in payment the HB claim will revert back to a standard claim. The benefit cap could be applied to the HB claim for those in temporary accommodation.

66. Where a claimant is also in receipt of LCTR, the LA will receive a data share from UC when the UC claim is terminated. If they are not in receipt of LCTR then it is the claimant’s responsibility to notify the LA of any changes in their circumstances. The information will be available by CIS to confirm the UC claim has ended but there will not be an ATLAS notification.

Use of DHPs

67. Help and support is available through DHP scheme for vulnerable claimants capped in HB if their UC claim closes.

68. DHPs can be paid to those in receipt of HB or UC who are in need of further financial assistance with their housing costs. In most cases, the person who applies for a DHP will be the HB or UC claimant. However, an application can be accepted from someone acting on behalf of the HB or UC claimant, in other words, an appointee or advocate, if the person is vulnerable and requires support; or the claimant may request that someone acts on their behalf.

69. Payment is entirely at the discretion of the LA, who will decide what should be paid in any particular case and the duration of the award.

Grace period

70. In addition, to support those who find themselves without work, a grace period can also be considered whereby the benefit cap will not apply for 9 months for UC recipients and 39 weeks in HB, where the claimant or their partner has been in work for 12 consecutive months previously. This gives claimants time to find a new job before the cap is applied or to budget if they have not found work.

Workshops to improve the current HB guidance for supported accommodation

71. In August 2018 the government announced that supported housing will continue to be funded through HB. Alongside this announcement was the commitment to introduce an oversight regime that will ensure value for money and quality across the supported housing sector.

72. As part of the oversight work to improve the HB guidance for supported accommodation, DWP Housing Policy Division will be holding a number of LA workshops throughout July 2019 to gather feedback and explore any issues with the current HB supported housing guidance and regulations. The findings from these workshops will be used to improve the current guidance.

73. Details about the workshop and how to apply for a place was issued to all LA Revenues and Benefits managers on Friday 28 June 2019. Please note, spaces at these events are limited. We would really appreciate your participation and support with these workshops in order to improve the current guidance for supported accommodation.

Shared services teleconference events

74. HDD is launching 3 national teleconference events for LAs operating in or considering shared services. The aim is to bring LAs together to discuss issues impacting the administration of HB, identify solutions and share good practice.

75. These events will focus on topics raised by participating LAs and will seek to find solutions from other LAs’ experiences. Each event will last 90 minutes and will be held once a month from September to November 2019. LAs are encouraged to influence the agenda for each one by raising the topics/issues they think are most relevant to be discussed prior to attending.

76. Participating LAs can dial-in to all 3 events if they so wish. If you would like to attend these events you should email [email protected] by Friday 12 July 2019,to confirm which month you would like to attend and your list of chosen topics and issues. You can also contact Marco Almeida on 0782576 2654, if you would like to discuss these events further.

Revisions to HB Adjudication and Subsidy circulars: Reminder

77. HDD endeavour to communicate with LAs effectively and efficiently at all times. We are mindful of getting the balance between ensuring you get messages to you when you need them at the same time as keeping the communications traffic to you at a minimum, where possible.

78.In line with this, we always aim to get the correct messages to you the first time. However, inevitably, there are circumstances when we need to revise or provide further clarification to some of the original messaging to you.

79. We appreciate that this can lead to increased communications and apologise if this leads to any inconvenience but is necessary to ensure accuracy and transparency in what we are communicating to you and, in turn, give you confidence in what you are reading.

80. This is to remind you that when we make any significant revisions to the content of a circular we replace the version on our HB pages on GOV.UK and advise you this had happened; along with a link to the circular in question. Revised circulars are always clearly marked as such and include a revisions paragraph to bring to your attention the changes within the content.

81. If you have any questions or feedback regarding the content of this article you can email [email protected].

HDD communications now sent to a single LA in-box address only: Reminder

82. We wrote to Revenues and Benefits managers on 2 May 2019 requesting routinely accessed single in-box details to send all our communications as from 1 July 2019.

83. If we have not received a single in-box address, we are sending our communications to the Revenues and Benefits manager’s email address that we hold.

84. Should you have any queries or you still wish to provide a single in-box address you can email [email protected].

LA subsidy workshops in 2020

85. During 2018 to 2019, HDD delivered a number of HB subsidy workshops. LA feedback from the workshops was extremely positive and as a result HDD is proposing to hold a further series of subsidy workshops scheduled for January to February 2020. Subject to expressions of interest, HDD plans to hold these workshops in geographically convenient locations for attendees.

86. As in 2018 to 2019, the HDD intends to hold separate workshops for LA staff both new to subsidy and for those more experienced in subsidy.

Workshops for LA staff new to subsidy

87. These workshops will provide an introduction to subsidy, focusing on the arrangements for claiming and payment of subsidy:

• applicable deadlines
• the mechanics of the final subsidy claim form
• the responsibilities of local authorities (including the completion and oversight of subsidy forms), the department and auditors
• and an overview of assurance arrangements

88. Anyone wishing to attend one of these workshops should email an expression of interest to [email protected] and confirm that interest is being expressed in the workshop for LA staff new to subsidy. Additionally, it would be helpful if interested attendees include any subsidy issues or areas of learning that they would like to discuss in the workshops.

Workshops for LA staff more experienced in subsidy

89. It is intended that these workshops will focus primarily on assurance issues including a performance review of the new HP Assurance Process. Pre submitted topics and subsidy issues will be built into the workshop presentation and discussed in an open forum session.

90. Anyone wishing to attend one of these workshops should email an expression of interest to [email protected] and confirm that interest is being expressed in the workshop for LA staff more experienced in subsidy. Additionally, it would be helpful if interested attendees could include any subsidy issues or areas of learning that they would like to discuss in the workshops.

91. We would be would be grateful if expressions of interest are emailed by the 30 August 2019, with the subject header ‘HB Subsidy workshops 2020’.

Revised HB circular A5/2019

92. In response to receiving a number of LA queries regarding circular A5/2019 (Sheltered and extra care supported accommodation – New LA IT functionality requirement) since it was issued on 29 March 2019, we have made a number of revisions to the wording to provide further clarity.

93. Read the revised circular A5/2019.

Cases with the Upper Tribunal

HB decisions by the Upper Tribunal

94. Decision Making and Appeals (DMA) Leeds is not aware of any HB cases that have been decided by the Upper Tribunal (UT) since the last entry in June’s LA Welfare Direct.

95. Decisions of the UT are published on GOV.UK.

96. If you have any queries about cases before the UT Judges or courts, please contact us by email at [email protected], or fax on 0113 232 4841.

HB cases awaiting decision by the Upper Tribunal

97. DMA Leeds have been made aware of the following HB cases that are awaiting decision by the Upper Tribunal, since our previous LA Welfare Direct bulletin in February 2019:

• CH/34/19, CH/36/18, CH/36/19 and CH/31/19: These are linked cases – the application of paragraph 1(f) of Schedule 1 to the eligibility of an enhanced housing management charge
• CH/561/19: Notional income – failure to access student loan on the grounds of religious beliefs.

New Legislation

98. The following Statutory Instruments (SIs) have been laid:

• 2019 No. 982 The Occupational Pension Schemes (Investment and Disclosure) (Amendment) Regulations 2019, made on 3 June 2019
• 2019 No. 1011 The Personal Independence Payment (Transitional Provisions) (Amendment) Regulations 2019, coming into force on 4 July 2019

99. The following Statutory Rule of Northern Ireland has been laid:

• 2019 No.118 The Personal Independence Payment (Transitional Provisions) (Amendment) Regulations (Northern Ireland) 2019, coming into operation on 04 July 2019.

100. Copies of SIs can now be downloaded from legislation.gov.uk.

What’s new on our HB pages on GOV.UK

101. The following items can be found on the website link shown:

Document type	Subject
LAWD6/2019	Editorial Update: Eligible Service Charge New LA IT functionality requirement Correction to email address in circular HB A9/2019 Reminder: UC Third Party Deductions change and improvements rolled out HB Decisions with the Upper Tribunal New Legislation What’s new on our HB pages on GOV.UK