Guidance

LA Welfare Direct 4/2022

Updated 12 December 2022

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

This is usually a very busy time of year for local authorities (LAs) and this year is no exception as recent government announcements to ‘support vulnerable households with rising energy costs’ have placed extra pressures on LAs.

We have launched the Housing Benefit Award Accuracy Initiative for the financial year ending March 2023 and I’m pleased to see that very few LAs have asked to opt out due to exceptional circumstances. This is a huge achievement given the pressures LAs are under, particularly with the energy rebate being delivered through Council Tax and the tail-end of the Test and Trace Support Payment scheme.

The government also announced an extension to the Household Support Fund in the Spring Budget on 23 March 2022, which provides an additional £421 million for County Council and Unitary Authorities to support vulnerable families for the period 1 April to 30 September 2022. The Barnett formula applies in the usual way to the additional £421 million funding in England. So, the devolved administrations will receive up to £79 million of the £500 million (£41 million for the Scottish Government, £25 million for the Welsh Government and £14 million for the Northern Ireland Executive). We have been working with HM Treasury and other government departments to finalise the guidance which was issued to LAs on Friday 1 April 2022, together with other supporting information including the grant agreement, management information templates and planning questionnaire.

At least one third of the total funding must be spent on families with children and at least one third must be spent on pensioners. In terms of type of support, the expectation is that the Household Support Fund extension should be used in a similar way as the original scheme, with a greater emphasis on supporting households with energy bills. Food and water bills also remain priorities. It can also be used to support households with essential costs related to those items and with wider essential costs. In exceptional cases of genuine emergency, it can additionally be used to support housing costs where existing housing support schemes do not meet this exceptional need.

Hopefully. as COVID-19 restrictions continue to be lifted and the effect of the pandemic on people’s health is reducing due to the vaccination rollout, the new financial year will return to some form of normality. After two years of avoiding the virus I had a positive lateral flow and PCR test on 28 and 29 March respectively. Hopefully I’m over the worst of my flu type systems and the infection will also help to increase my resistance to the virus.

After 40 years of service I’m due to retire in June this year, so this will be my last editorial. I spent 18 years working in Revenue and Benefits with four LAs before joining the Department for Work and Pensions in March 2000. I joined the LA Partnership, Engagement and Delivery (LA-PED) division in June 2014 and managed to reconnect with many old LA colleagues at IRRV and other LA events. I really enjoyed my early career working in LAs. It certainly gave me a “can do” attitude that has served me well throughout the years. I wish everyone the very best and, you never know, we may bump into each other at a future LA event. I’d like to thank everyone I’ve worked with and known over the years for a long and enjoyable career. Thank you.

Adrian Shooter
Head of LA-PED LA/Valuation Office Agency Funding and Management Team

Urgent reminder: Notification of procurement of audit firm for the financial year ending March 2023 Housing Benefit Assurance Process (England only)

1. As advised in LAWD12/2021, as part of the standard engagement terms, each local authority (LA) was required to provide DWP with notification confirming the procurement of a reporting accountant to carry out Housing Benefit Assurance Process (HBAP) testing in relation to financial year ending (FYE) March 2023 by no later than 1 March 2022.

2. Unfortunately, a number of LAs did not meet the standard deadline or contact the Department for Work and Pensions (DWP) to request and agree an extension.

3. Therefore, we ask that LAs who have not yet forwarded the required notification to DWP to do so immediately by email to [email protected] or contact us at the same email address to formally request an extension to the deadline. Any such request should include the current status of the procurement and detailed reasons for the delay.

4. The notification confirming the audit firm procurement should include the:

• name of the audit firm
• length of the contract
• lead audit contact name
• audit office location

5. Do note, if an LA secured a multi-year engagement with a reporting accountant that covers HBAP in respect of the FYE March 2022 and FYE March 2023 and previously notified DWP of that engagement, then further notification is not required.

Urgent reminder: Completion of Baseline Personal Security Standards checks

6. This is a reminder that Local authorities (LAs) must complete the Baseline Personal Security Standards (BPSS) checks and enter the appropriate dates onto Employee Authentication Service – Replacement (EAS-R) by 20 April 2022.

7. DWP will begin to remove access for those EAS-R users that do not have their BPSS dates recorded by this deadline. This will prevent these users from accessing DWP data and systems.

8. Note: Tell Us Once users have until 12 April 2022 to record these dates onto EAS-R.

9. If you have any questions on this article, contact the LA-PED Security Team at [email protected]

Reminder: Discretionary Housing Payments end of year final claim form for FYE March 2022 (England and Wales only) due by 30 April 2022

10. The Discretionary Housing Payments (DHP) end of year (EOY) final claim form was issued to local authorities (LAs) in England and Wales on 10 March 2022. It included updated completion guidance on the information being requested and the return email address.

11. The final claim form for FYE March 2022 combines the previous two forms for mandatory and voluntary information.

12. The form asks for:

• the actual DHP expenditure paid by your LA between 1 April 2021 and 31 March 2022
• additional management information (MI) to help inform future funding.

13. The MI monitoring return information continues to improve the department’s understanding of how DHPs are being used to support claimants. Additionally, these returns will help us better understand the ongoing impacts of the COVID-19 pandemic on LAs.

14. The DHP Payments (grants) Order 2001 has been amended to legislate the provision of the above information and the date by which LAs must provide the information.

15. LAs must return the completed DHP EOY claim form to [email protected] by no later than 30 April 2022.

16. Any questions can also be issued to the email provided above.

Reminder: Changes to the Test and Trace Support Payment scheme and LA access to data

17. As advised in March’s LAWD3/2022 lite bulletin, the Test and Trace Support Payment scheme ended in England on 24 February 2022.

18. LAs in England can continue to access Searchlight until 29 April 2022, after which permission to use the service for the scheme will be revoked.

19. Therefore, on the evening of 29 April 2022, the Searchlight user role ‘SG_Get_Income_Information_Addon’ will be automatically removed from users and the data will no longer be available.

20. If you have any questions contact [email protected]

Update: Use of HM Revenue & Customs’ real time earnings and non-state pension information

21. In LAWD12/2020, DWP informed LAs that Verify Earnings and Pensions (VEP) could be used for Local Council Tax Reduction purposes and detailed how this was possible.

22. However, DWP has been contacted by several LAs requesting further use of the HM Revenue & Customs’ (HMRC) real time earnings and non-state pensions information received from VEP for additional HB related purposes.

23. Therefore, DWP has sought further legal clarification in collaboration with HMRC and this article aims to provide comprehensive clarity on the legality of using VEP for additional purposes.

Discretionary Housing Payments, Disabled Facilities Grant and Disability Adaptation Grant

24. The Welfare Reform Act 2012 and the Social Security (Information sharing in relation to Welfare Services) Regulations 2012 allow:

• HMRC to share earnings/non-state pension data with DWP
• DWP to share with LAs the HMRC earnings/non-state pension data received for the purposes of DHP (England, Scotland and Wales), Disabled Facilities Grant (DFG) (England and Wales) and Disability Adaptation Grant (DAG) (Scotland).
• LAs to hold HMRC earnings/non-state pension data they receive.

Specific further caveats in relation to the legality

25. However, to be clear, HMRC are not allowing any additional data to be shared as the law does not allow this. For example, LAs should not submit non-HB National Insurance numbers in their monthly HB Debt Service submission as this would result in additional data being shared.

26. When accessing information via the VEP portal, LAs will need to set the interest to view the VEP information for non-HB claims. In doing so it should be remembered that the interest will be automatically unset on the 27th of the month for cases that are not claiming HB. This prevents unnecessary data sharing and ensures LAs keep within existing legislation.

27. We have updated the Memorandum of Understanding between DWP and LAs to take into account the contents of this article, which will be shared shortly with all LAs.

28. However, if you have any questions email [email protected]

Change of tax year for HB Matching Service self-assessment

29. At present, HB Matching Service (HBMS) self-assessment referrals are matched against the tax year 2019 to 2020.

30. From week commencing 11 April 2022, HBMS referrals will be matched against the tax year 2020 to 2021.

31. This means all local authorities will receive higher volumes of referrals and (possible) duplications within the first month of this change. However, volumes will start to decrease by month two of implementation.

32. Note: As stated last year in LAWD8/2021 changes to the tax year for HBMS will now be implemented in April of each year in line with HM Revenue and Customs procedures.

33. The following rules, which are detailed in the HBMS rule guide on Glasscubes, will be impacted:

• HBSA002
• HBSA003
• HBSA004

34. If you have any questions, you can contact [email protected]

Changes to supported housing and temporary accommodation Single Housing Benefit Extract management information

35. In LAWD12/2021, we provided LAs with an update on changes being brought in as part of LA IT system releases between April 2022 and June 2022. This was to support the improved recording of management information for supported housing and temporary accommodation cases.

36. Circular HB S3/2022 was issued to LAs detailing New Burdens funding to support activity connected with this change. In addition, an A circular is planned to be issued in April 2022, providing further information on the change and key activities required of LAs to support implementation. The circular should be read in conjunction with LA IT supplier release notes. Note: Civica LAs will not have access to IT release notes until their planned system upgrades in June 2022.

All LA call

37. To further support LAs with the implementation of the change, the DWP is holding an ‘all LA Call’ on 28 April 2022 from 10am to 11.15am, during which we will provide an overview of the change requirements and activities.

38. The event is primarily aimed at providing an opportunity for LAs to ask any questions and raise any specific issues requiring clarification. We strongly encourage LAs to join the call.

39. The joining instructions are:

the MS Teams link to this conference has been shared in the version of the LAWD4/2022 that was were sent directly to each LAs single inbox.

• note: It is more difficult to ask questions via dial in, so if you anticipate having questions, using the link is recommended.

• speakers will be muted by default but instructions will be given during the event if you want to ask a question.

40. We look forward to your participation on the call. However, if you have any

questions in the meantime contact [email protected]

Sharing of DWP IT system screenshots to claimants via LA digital portals

41. It has been brought to our attention that LAs could be inadvertently sharing DWP system screenshots that have been saved to LA digital portals. Potentially your LA digital portal may have settings activated that would allow a claimant to view documents on their digital portal account, including screenshots from DWP systems (such as, Searchlight/Transfer Your File).

42. Screenshots contain data that DWP has shared with your LA for specific reasons. The terms of the DWP/LA Memorandum of Understanding (MOU) apply to data sharing irrespective of the format it is in. This is regardless of whether the data has been captured through a DWP IT system screenshot, manually typed into an LA’s IT system or viewed on a screen by a member of LA staff. LAs must store data securely in accordance with the security requirements of the MOU.

43. If LAs want to use data for another purpose than set out in the MOU, they must request permission from LA-PED by emailing [email protected] LAs must store data securely in accordance with the security requirements of the MOU.

44. LAs should not disclose any DWP system screenshots to claimants through their LA digital portals. All claimants requesting such information are required to complete a Right of Access Request.

45. LAs need to review their digital portal settings and take action if any DWP system screenshots are being shared with claimants that should not be.

46. We ask that this information is brought to the attention of all appropriate staff within each LA.

47. If you have any questions regarding the content of this article you can email the address given above.

Sharing of DWP IT system screenshots with auditors

48. It has been brought to our attention that auditors have been asking LAs to provide screenshots of DWP IT systems, for example Searchlight, when auditing claims. In the first instance, the existing process of ‘over the shoulder’ viewing by auditors should remain the common practice when audits are taking place.

49. Screenshots must only be shared with auditors in exceptional circumstances provided they are shared securely and only include the data the auditor has requested and has a business need to see.

50. All audit firms that are eligible to complete this work must provide assurance to the LA that employees conducting the audit are either Baseline Personal Security Standards (BPSS) checked or meet the requirements of BPSS standards

Transformation of Single HB Extract returns to DWP

51. As detailed in LAWD12/2021 LAs currently share their HB administration data with the DWP on a four 4-week rolling cycle. LAs manually extract details of their entire HB case load, save and send it to DWP using the Single HB Extract (SHBE) process.

52. Often LAs’ extractions dates are up to a week before the data is scheduled for delivery, perhaps because extraction takes some time and LAs need to check data formats before it is sent on to DWP. Additionally, if data fails to load to DWP LAs are asked to check and re-submit their data. This process will further impact the age of the data.

53. This can result in a time lag of up to three months for the resulting ‘All LA’ SHBE HB dataset, used for national statistics and policy analysis. It also means that DWP often uses data that is between one to six weeks old for fraud and error purposes, which increases the impact of inaccurate data matching if further changes have occurred since the date the data was extracted.

54. DWP has been working closely with our digital group and LA IT software suppliers on a project to identify ways for LAs to send their SHBE data via a ‘real time’ Application Programming Interface (API). Using this approach also fits with DWPs’ strategic view for data sharing. This would mean uploading changes as they occur on a daily basis.

Project update

55. DWP is working with LAs and their IT suppliers to test the proof of concept for the project and it is estimated that this will be completed by June 2022.

56. Following successful completion of the proof of concept, DWP will work with LA IT Suppliers to design, build and test the new SHBE API solution. DWP will then work with a number of early adopter LAs from each LA IT Suppliers to test and implement the final solution in 2022.

57. DWP will then work with all LAs to migrate to the automated solution based on their capability and level of readiness. The intention is that all LAs will download and install the new software within a month of it being available to each LA from their software supplier releases. A period of dual running will be required, but the aim is to keep this as short a period as possible.

58. Further information regarding progress of the SHBE API solution will be communicated to LAs as the project progresses to allow LAs to plan ahead.

59. If you need any further information contact: [email protected]

Guidance on generating a monthly list of HBMS referrals

60. Following the launch of the HB Award Accuracy Initiative (HBAA) and the subsequent decommission of the HBMS clerical spreadsheet, a number of local authorities (LAs) contacted the Local Authority, Partner Engagement and Delivery (LA-PED) division requesting a process that will continue to provide LAs with a full list of HBMS referrals each month.

61. Therefore, LA-PED provided a blank macro-enabled spreadsheet with supporting guidance to LAs through Glasscubes only.

62. Note: The use of the spreadsheet is unsupported by LA-PED and LAs are responsible for maintaining their own versions.

63. LAs should not use this spreadsheet to return any HBMS results to DWP.

64. If you have any questions on this article contact [email protected]

Planned Housing Benefit Cost Refresh exercise for FYE March 2023

65. In previous years, the DWP carried out HB Cost Refresh exercises to help accurately calculate the costs of delivering HB and understand the levels of funding provided through HB Administration Subsidy (HBAS) and other new burdens.

66. Due to the COVID-19 pandemic, we made the decision not to run HB cost refresh exercises for FYE March 2020, 2021 and 2022. So, it is even more important that we update our data for FYE March 2023.

67. We are reliant on local authorities’ (LA) contributions in making the exercise a success. We recognise that LA resources are now stretched more so than ever and, therefore, we are committed to making the process as simple as possible.

68. We do appreciate this is an additional ask of LAs. Therefore, we are not planning to launch this exercise until late May/early June 2022, at which time we will fully support all LAs who take part.

69. If you think your LA may be in a position to participate and you would like more information, please contact us at [email protected]

HB Award Accuracy process guidance

70. The latest HB Award Accuracy (HBAA) process guidance is now available on the separate IT software supplier forums within Glasscubes. All LAs should now be using HBAA guidance Version 3 (V.3).

71. Feedback or comments on the guidance can be sent to [email protected]

Publication of refreshed HB Assurance Process modules for FYE March 2022

72. DWP has recently refreshed and published the following HB Assurance Process (HBAP) modules for FYE March 2022:

• Module 1 - DWP reporting framework instruction (in England), the Standard Engagement Terms for HBAP, including standard checks on the subsidy claim form and links to other modules
• Module 2 - DWP benefit uprating checklist
• Module 6 - Approach and testing strategy (in England), the detailed testing requirements which provide Reporting Accountants and LAs with instructions required by DWP to complete HBAP.

73. If you have any questions contact [email protected]

Council Tax debt data-sharing pilot

74. In 2019, through the Digital Economy Act’s Debt Powers, a Council Tax debt data-sharing pilot between HMRC and 29 local authorities (LAs) across England and Wales was successfully completed.

75. The pilot saw a debt recovery rate of 20% (£5 million) against an estimated baseline of 3% recovery for such debt.

76. A key success metric of this first pilot was that previously unresponsive debtors began to engage with their LA after receiving notification of the data held and subsequently entered into payment plans or, in some cases, cleared their debt immediately.

77. Following the success of the original pilot, the Fraud and Debt Digital Economy Act Team in Cabinet Office facilitated a new iteration in 2021. This ongoing second pilot includes DWP’s income-based benefits data (the frequency and amount of benefits received, but not the benefit type) being provided alongside HMRC PAYE and Self Assessment data to LAs.

78. This second pilot aims to strengthen the vulnerability identification of Council Tax debtors by identifying if attachment-of-benefit orders are appropriate for some debtors and strengthening the application of attachment-of-earning orders. It is anticipated that greater recovery rates than in the first pilot will be achieved.

79. The Cabinet Office is currently reaching out to LAs who would like to be a part of the business as usual provision which we hope to progress in the second half of 2022. If you would like to be included or want to know more, contact [email protected] to be added to our mailing list. LAs can currently be based in England, Wales or Scotland and do not need to have been involved in a Digital Economy Act data share before.

Next steps

80. Upon the completion of the second pilot, the intention is for this data-sharing to become business as usual; allowing LAs to regularly access DWP and HMRC data for those with Council Tax debt liability orders. Discussions are continuing as to how best this ongoing data-share could manifest, with an Application Programming Interface (API) provision being the most likely solution at present. Importantly, LAs are leading this discussion and are outlining how such data-sharing can meet their needs.

Practitioners’ Operational Group and LA Welfare Steering Group

81. The last LA Welfare Steering Group (LAWSG) meeting took place on 17 March 2022. Agenda items included Discretionary Housing Payments, Move to UC (voluntary), Move to UC (mandatory), Penalty Reform and Ukraine refugees.

82. Both groups’ meeting are held bi-monthly (and alternately) so the next meeting of the Practitioners’ Operational Group (POG) is scheduled to take place on 21 April 2022.

83. If you have any questions regarding topics raised at these consultation groups, you can email [email protected]

HB decisions by the Upper Tribunal

84. Decision Making and Appeals (DMA) Leeds is aware of the following HB cases that have been decided by the Upper Tribunal (UT):

• CH/1388/20: First-tier Tribunal (FtT) decision set aside on grounds of natural justice – no details of the decision under appeal.

• CH/2263/19: a claim to UC brings to an end entitlement to HB – UCTP Reg 8. SK V HMRC and SSWP [2022] UKUT 10 (AAC) applicable.

• CH/2826/19: FtT decision set aside and re-listed – no details of decision under appeal.

• CH/685/21: concerns whether the claimant’s occupation was on a commercial basis – decision set aside and remitted.

• CH/1184/20: attribution of income and rent free weeks – appeal dismissed.

• CH/4419/1: Removal of Spare Room Subsidy – tribunal decision confirmed. R (MA and others) V Secretary of State for Work and Pensions followed.

• CH/186/21: Remitted - FtT decision set aside - Applicant not properly notified of its appeal rights following a HB Overpayment decision.

85. A selection of decisions of the UT are published on their website. Do be aware that there is an undefined time lapse between decisions being issued and their appearance on the website.

86. If you have any queries about cases before the UT Judges or courts, please contact us by email at [email protected]

New Legislation

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

• Occupational Pension Schemes (Schemes that were Contracted-out) (No. 2) (Amendment) Regulations 2022, SI 2022/158, laid on 21 February 2022
• Jobseeker’s Allowance (Schemes for Assisting Persons to Obtain Employment) (Amendment) Regulations 2022, SI 2022/154, laid on 21 February 2022
• Social Security (Disability Assistance for Working Age People) (Consequential Amendments) Order 2022, SI 2022/177, laid on 25 February 2022
• Social Security (Industrial Injuries) (Prescribed Diseases) Amendment Regulations 2022, SI 2022/214, laid on 7 March 2022
• Occupational Pension Schemes (Fraud Compensation Levy) (Amendment) Regulations 2022, SI 2022/259, laid on 10 March 2022
• Universal Credit and Employment and Support Allowance (Terminal Illness) (Amendment) Regulations 2022, SI 2022/260, laid on 10 March 2022
• Universal Credit (Energy Rebate Scheme Disregard) Regulations 2022, SI 2022/257, laid on 10 March 2022
• Occupational Pension Schemes (Master Trusts) (Amendment) Regulations 2022, SI 2022/277, laid on 14 March 2022

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

What’s new on our HB pages on GOV.UK

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

Document Type	Subject	Link
LAWD3/2022 (Revised)	Editorial Launch of the Housing Benefit Award Accuracy Initiative for financial year ending March 2023 (year three) and the next all LA conference call on 10 March 2022 Employment Support Allowance/Incapacity Benefit Reassessment corrective exercise Changes to the European Union Settlement Scheme ‘share code’ process Update: ‘Help to Claim’ Universal Credit support POG and LA Welfare Steering Group Secondment opportunities in LA-PED division Employment opportunity in DWP Digital HB cases awaiting decision by the Upper Tribunal New Legislation What’s new on our HB pages on GOV.UK Review Officer (Housing Benefit) Annex A	LAWD3/2022 (Revised)
LAWDLite3/2022	Council Tax rebate schemes Changes to the Test and Trace Support Payment Scheme	LAWDLite3/2022
S2/2022	Rent Rebate Subsidy Limitation information for financial year ending March 2023	S2/2022
S3/2022	Additional New Burdens funding to meet the costs of implementing the Improvements to supported accommodation and temporary accommodation Single Housing Benefit Extract management information	S3/2022
S4/2022	Additional New Burdens funding to meet the costs of delivering Welfare Reform changes in the financial year ending March 2023	S4/2022
S5/2022	Additional New Burdens funding to meet the costs of implementing changes following the Incapacity Benefit Reassessment LEAP exercise	S5/2022
S6/2022	Housing Benefit administration subsidy arrangements for English, Scottish and Welsh local authorities for the financial year ending March 2023	S6/2022
A4/2022	The Social Security (Habitual Residence) (Amendment) Regulations 2022 and the Homes for Ukraine Scheme	A4/2022