Guidance

Housing Benefit guidance for supported housing claims

Published 25 May 2022

Applies to England, Scotland and Wales

Glossary

Term	Description
Community benefit society	An organisation that carries out an ‘industry, business or trade’ where it is, or intended to be, conducted for the benefit of the community.
Community interest company (CIC)	A type of limited company whose purpose is primarily to provide a benefit to the community they serve.
Exempt accommodation	The first category of specified accommodation. Supported housing where the landlord is a not-for-profit organisation and provides care, support or supervision to the claimant.
Extra care accommodation	Accommodation usually for older people, like sheltered accommodation but where tenants need and receive significantly more care and support. Also known as ‘very sheltered accommodation or extra care sheltered.’
Housing association	An organisation set up to provide social housing which invests its surplus back into providing social housing.
Housing Benefit	A benefit that provides help with housing costs for individuals on low incomes.
Local authority hostels	The fourth category of specified accommodation. Hostel accommodation provided by a local authority where the tenant receives care, support or supervision.
Long-term supported housing	Accommodation for people with long-term care or support needs such as those with enduring physical or mental health condition or a learning disability or autism.
Lower-tier authorities	A type of English local authority in an area with two tiers of local government that is responsible for services like rubbish collection, Council Tax, and Housing Benefit. These could be district, borough or city councils.
Managed properties	The second category of specified accommodation. Supported housing where the landlord is a not-for-profit organisation and the claimant receives care, support or supervision, but does not meet the definition of exempt accommodation because the care, support or supervision is not provided by the landlord or on their behalf.
Refuges	The third category of specified accommodation. Refuge accommodation for people fleeing domestic abuse where the landlord is a not-for-profit organisation.
Registered charity	An organisation registered with the Charity Commission or Scottish Charity Regulator.
Sheltered accommodation	Supported housing for mainly over-55s with care and/or support needs.
Short-term supported housing	Accommodation for those in crisis, such as domestic abuse refuges and hostel accommodation. This accommodation is intended to be transitional, with residents moving onto settled accommodation within two years. and can also include services for young people transitioning out of care and people with a learning disability or mental health support need perhaps leaving a long stay institution or hospital or leaving the parental home.
Specified accommodation	A definition used in Housing benefit regulations which sets out the different types of supported housing and the criteria that must be met in order to receive support with housing costs through housing benefit. There are four categories of specified accommodation: exempt accommodation, managed properties, refuges and local authority hostels.
Supported housing	Accommodation where residents require and are provided with care, support and/or supervision to help them live as independently as possible within the community.
Unitary authorities	Single-tier local authorities which provide all the local services in their area, such as Housing Benefit, social care and housing. All authorities in Scotland and Wales are unitary authorities.
Upper-tier authorities	A type of English local authority in an area with two tiers of local government that is responsible for services like social care, transport and education across a county. These are also known as county councils.
Voluntary organisation	A not-for-profit organisation.

What is supported housing?

1. Supported housing provides a vital service for the most vulnerable people in society. Supported housing is accommodation where residents require and are provided with care, support and/or supervision to help them live as independently as possible within the community.

Who is supported housing for?

2. Supported housing houses various vulnerable groups but not limited to:

• older people with care or support needs
• people fleeing domestic abuse and their children
• people with experience of the criminal justice system (including prison leavers)
• young people with a support need (such as care leavers or young parents)
• individuals and families at risk of or who have experienced homelessness
• people recovering from drug or alcohol dependencies
• individuals with learning, developmental or physical impairments and those with a mental health condition

3. This list is not exhaustive, and individuals may have a variety of needs which necessitate their admission into supported housing.

What types of supported housing are there?

4. There are three broad types of supported housing. However, there can at times be a crossover between these various types of dwellings. For example, people with learning difficulties may require shorter term housing:

• sheltered and extra care provision, for older people who may benefit from living in purpose-designed accommodation or those with care or support needs
• short-term or transitional provision for those in crisis, for example, domestic abuse or homelessness
• long-term provision for those with long-term physical or mental health conditions

Who provides supported housing?

5. Providers of supported housing could be:

• local authorities (LAs)
• registered social landlords (RSLs)
• housing associations
• charities and other voluntary organisations
• private landlords

6. Housing providers and schemes can vary significantly in size and scale. Some organisations can cover many areas of the country, with tens of thousands of residents. Then there are smaller local providers, who may only own one property.

History of supported housing in Housing Benefit

7. Supported housing has had special rules in Housing Benefit (HB) since 1996 when the exempt accommodation definition (see paragraph 73) was introduced. The purpose of this change was to protect specialist supported housing provided by not-for-profit organisations from rent restriction under the maximum rent rules introduced from 1996. This protection ensured that, where appropriate, HB could continue to meet rent levels that exceeded a rent officer determination.

8. Between April 2000 and March 2003, the Transitional HB Scheme was introduced as part of a wider government approach to unify all funding for support services. During this time, ‘General Counselling and Support Services’ were treated as eligible service charges in HB for supported housing claims. This allowed the government to identify how much funding would be required for support services in each area. In April 2003, the Supporting People scheme was introduced which gave grant funding to LAs to commission support services. From then onwards, support services were funded outside of HB and made ineligible charges in HB.

9. In 2012, the government announced that exempt accommodation would remain outside Universal Credit (UC).

10. No further changes were made to the treatment of supported housing claims until 2014 when the ‘specified accommodation’ definition (see paragraph 71) was introduced. The existing exempt accommodation definition was included as one of four categories of specified accommodation. The purpose of this change was to protect supported housing not covered by the exempt accommodation definition which were most likely to be affected by welfare reforms and to bring these types of supported housing, including where the landlord did not provide the care, support or supervision, under one definition. No changes were made to how eligible rent was determined for exempt accommodation or the other three categories.

11. In 2018, following a consultation on a ‘flexible funding model’ for supported housing, the government announced that HB would be kept in place to fund supported housing accommodation costs. The announcement also set out that the Department for Work and Pensions (DWP) and the Ministry for Housing Communities and Local Government (now the Department for Levelling Up, Housing and Communities (DLUHC)) would work with providers, LAs, membership bodies and resident representatives to develop a robust oversight programme to improve quality and value for money across the sector.

The role of DWP and LAs

12. DWP is responsible for maintaining the policy and legislation for HB. This includes setting out the rules for specified accommodation claims and providing guidance to assist with administering HB. DWP also works with other government departments including DLUHC and devolved administrations on wider supported housing policy to achieve a joined-up approach on funding, regulation and commissioning.

13. LAs administer HB on behalf of DWP. This involves making decisions on HB claims, including whether individual claims meet the specified accommodation definition and what the eligible rent is. Beyond HB, LAs have a role in the strategic planning, commissioning and monitoring of supported housing in their area.

Housing policy in England, Scotland and Wales

14. Housing policy is a devolved matter. As a result, the Scottish and Welsh governments each have responsibility for the quality, supply and support funding of supported housing in their nation. DWP works closely with the Scottish and Welsh governments when considering changes to HB which would affect Scotland and Wales. English housing policy is set by the UK government.

England

15. DLUHC is responsible for government policy in relation to quality, supply and capital grant and revenue funding for supported housing in England. DLUHC works closely with LAs and supported housing providers to promote new supply and high standards. Supported housing services can be commissioned by individual LAs. Accommodation and services are provided by LAs, registered social landlords, charities and other voluntary bodies.

16. DLUHC is working with DWP to improve quality and value for money across the sector. DLUHC has published the National Statement of Expectations for supported housing, which sets out the government’s vision for ways of working and good practice in the sector and brings together recommended accommodation standards.

Scotland

17. Supported housing in Scotland is commissioned by individual LAs and provided by LAs, registered social landlords, private companies, voluntary organisations or health and social care partnerships. Various forms of supported accommodation exist, including sheltered housing or sheltered housing with extra care, retirement housing, supported or assisted living accommodation and temporary/emergency accommodation.

18. The Scottish Government funds LAs to provide a range of services, including supported housing, through the annual local government finance settlement. More information can be found in the Scottish Budget. Further information about some forms of supported housing can be found at Care Information Scotland.

Wales

19. The Housing Directorate of the Welsh Government is responsible for the provision and funding of supported housing and accommodation in Wales, working in partnership with LAs, RSL and Local Health Boards. Sheltered housing and extra care housing must comply with the Welsh Government’s Design Quality Requirements. Guidance on commissioning supported living accommodation, including types of settings and quality requirements, are set out in ‘Commissioning accommodation and support for a good life for people with a learning disability’.

Regulation

20. There is no single regulatory system for supported housing. Different types of organisations providing supported housing are regulated by different bodies, such as the Regulator of Social Housing for registered housing associations and the Charity Commission for charities. A number of individual registered providers also have their own charitable status.

The Regulator of Social Housing (England)

21. The role of the Regulator of Social Housing (the Regulator) is to promote a viable, efficient and well-governed social housing sector, able to deliver homes that meet a wide range of needs. The Regulator is a non-departmental public body that oversees and regulates registered providers of social housing in England.

22. Registration with the Regulator is not mandatory for providers other than LAs. However, the Regulator receives around 90 applications for registration each year.

23. Registered providers must meet regulatory standards which are classified as either economic or consumer. The economic standards do not apply to LAs.

24. The Regulator publishes regulatory judgements for all registered providers owning 1,000 or more social-rented homes. These judgements rate the provider’s compliance with the Regulator’s governance and financial viability standards on a scale of one to four. Providers graded 1 or 2 are judged as compliant whilst providers which are graded 3 or 4 are non-compliant.

25. The Regulator does not publish regulatory judgements for registered providers which own fewer than 1,000 social housing units. However, if they have evidence that such a provider is in breach of an economic standard, or they find serious detriment as a result of a breach of a consumer standard, they may issue a regulatory notice.

26. DLUHC’s rent-setting policy statement sets out the rules for how rent is calculated which are enforced by the Regulator as part of their rent standard. The two main sets of rules are ‘Social Rent’ and ‘Affordable Rent’.

27. ’Social Rent’ has a maximum (known as ‘formula rent’) based on relative property values, the national average rent, relative county earnings and accommodation size.

28. Supported housing is defined in the rent-setting policy statement as ‘low cost rental^{[footnote 1]}’ accommodation provided by a registered provider that:

• is made available only in conjunction with the supply of support
• is made available exclusively to households including a person who has been identified as needing that support, and
• falls into one or both of the following categories:
• accommodation that has been designed, structurally altered or refurbished in order to enable residents with support needs to live independently, and
• accommodation that has been designated as being available only to individuals within an identified group with specific support needs

29. Supported housing social rents can be 10% higher than the maximum but are still subject to the ‘rent caps’ which restrict how high the formula rent could be. The rent caps can be found in appendix A of DLUHC’s rent-setting policy statement

30. ‘Affordable Rent’ is where providers, under certain circumstances are permitted to charge rents inclusive of service charges up to 80% of market rents (up to 60% in London). More information on Affordable Rent can be found at Chapter 3 of DLUHC’s rent-setting policy statement.

31. If accommodation meets DLUHC’s definition of ‘specialised supported housing’, the provider can claim an exemption from the Rent Standard. Specialised supported housing is defined as ‘supported housing’:

• which is designed, structurally altered, refurbished or designated for occupation by, and made available to, residents who require specialised services or support in order to enable them to live, or to adjust to living, independently within the community
• which offers a high level of support, which approximates to the services or support which would be provided in a care home, for residents for whom the only acceptable alternative would be a care home
• which is provided by a private registered provider under an agreement or arrangement with a local authority (LA) or a health service (within the meaning of the National Health Service Act 2006
• for which the rent charged, or to be charged, complies with the agreement or arrangement mentioned in paragraph (c), and
• in respect of which at least one of the following conditions is satisfied:
• there was no, or negligible, public assistance, or
• there was public assistance by means of a loan (secured by means of a charge or a mortgage against a property)

32. Where landlords claim to be providing specialised supported housing, it is good practice for HB teams to contact their area’s commissioning function to establish whether the rent charged complies with the agreement or arrangement. It is important to check as the specialised support could have also been commissioned by the local authority or National Health Service (NHS). LAs can also search the Regulator’s website for recent judgements or regulatory notices.

Care Quality Commission (England)

33. The Care Quality Commission (CQC) regulates all Health and Social Care services in England. The CQC monitors, inspects and regulates hospitals, care homes, GP surgeries, dental practices and other care services to ensure they meet fundamental standards of quality and safety and publishes what it finds, including performance ratings, to help people choose care.

34. All providers that provide specific regulated activities are required to register with the CQC. This includes those that provide care to people in their own homes. Registration with CQC is only needed where personal care is provided in most supported living and extra care housing services. In this case, CQC will only assess the service provided to the people who do receive personal care and for specific regulated activities.

35. Providers are not required to register for CQC if they carry out the following service types, for example, supported living schemes, extra care housing (sometimes known as ‘very sheltered housing’ or ‘assisted living’), or ‘retirement homes’ and Shared Lives schemes

36. Shared Lives is accommodation that is lived in under an occupancy agreement, where the premises are owned or tenanted by another person who has been approved as a carer by a Shared Lives scheme that is registered to provide ‘Personal care’.

37. Other regulated activities may apply, depending on the service provided, including accommodation for people who require treatment for substance misuse

38. More information can be found on the CQC’s website.

The Scottish Housing Regulator

39. The Scottish Housing Regulator (SHR) is a non-ministerial department responsible for regulating social housing in Scotland. The SHR regulates housing provided by LAs and registered social landlords.

40. All landlords regulated by the SHR are listed on the public register along with all their Engagement Plans which sets out the information the SHR requires from the landlord, what it needs to do, and if applicable, how and why the SHR is engaging with the landlord, and the landlord’s annual assurance statement which sets out how they meet the Regulatory Requirements in Scotland. The SHR monitors, assesses and reports on the performance of all social landlords against the Scottish Social Housing Charter and the governance and financial well-being of registered social landlords.

41. The Housing (Scotland) Act 2001 requires all social landlords to consult tenants and take account of their views when making decisions about proposed rent increases. The Scottish Social Housing Charter approved by the Scottish Parliament sets out the standards and outcomes that all social housing landlords should be achieving, including outcomes around rent and service charges.

Care Inspectorate (Scotland)

42. The Care Inspectorate is the national regulatory body responsible for the registration, scrutiny and quality improvement of care services in Scotland, including for supported housing. LAs can use the Care Inspectorate website to search for care or support providers. There are around 14,000 care services which their inspectors also visit, each registered with the Care Inspectorate. The Care Inspectorate uses an intelligence led, risk-based approach to planning and carrying out inspections of services. Evaluation grades are given on a six-point scale across key quality indicators, from 1, which is Unsatisfactory, up to 6, which is Excellent.

Regulation of social landlords in Wales

43. In Wales, social housing is regulated directly by a team within the Welsh Government on behalf of the Welsh Ministers. A public register of registered social landlords is held on the Welsh Government website.

44. The Welsh Government also focus on governance and financial viability when regulating the operation of registered social landlords. It publishes regulatory judgements at least once a year for each registered social landlord, rating their governance and financial viability.

45. The Welsh Government has various regulatory powers to intervene if a registered social landlord is not meeting the regulatory standards.

Care Inspectorate Wales

46. Care Inspectorate Wales registers and regulates social care services in Wales, including care homes for children and adults and domiciliary support services. The inspectorate does not regulate supported housing settings but it does regulate the domiciliary support services provided to people living in supported living services. Care providers in Wales must register with Care Inspectorate Wales.

47. LAs can use the Care Inspectorate Wales website to search for registered social care service providers. Care Inspectorate Wales inspects services to check the quality of the care and that it meets legal requirements. They can use their enforcement powers to ensure providers make the necessary improvement.

Charity Commission (England and Wales)

48. The Charity Commission is a non-ministerial government department which regulates and registers charities in England and Wales. Charities in England and Wales must register with the Charity Commission if their gross annual income exceeds £5,000. Exempt charities. These charities still need to abide by charity law and in almost all cases, the Commission still acts as a regulator.

49. The Charity Commission investigates accusations of wrongdoing and has various powers in response to serious problems including appointing, suspending or removing trustees and ‘freezing’ a charity’s bank account.

Scottish Charity Regulator

50. The Scottish Charity Regulator (OSCR) is a non-ministerial office and part of the Scottish Administration, but independent of government, reporting directly to the Scottish Parliament. It registers and regulates all charities registered in Scotland, as there is no registration threshold in Scotland.

51. The OSCR has similar responsibilities to the Charity Commission and also investigates misconduct in charities. It has similar powers over trustees and can remove charities from the register if it decides that it is not a charity.

Raising concerns about a landlord or care provider

England

52. LAs should raise concerns about a registered provider of social housing landlord with the Regulator of Social Housing. This can be done directly by email at: enquiries@rsh.gov.uk

53. The Regulator investigates potential breaches of the regulatory standards. Its judgement focuses on whether there has been a systemic failure by a registered provider; the regulator does not have a role in resolving individual complaints.

54. Where the landlord is a registered charity, the LA can [lodge a complaint with the Charity Commission about a charity using an online form

55. If the LA’s concerns are about the care provider, they can raise a concern with the CQC using an online form.

Scotland

56. LAs can raise concerns about a social landlord with the Scottish Housing Regulator by email: shr@shr.gov.scot. Where serious allegations which raise concerns about failure to comply with regulatory requirements are brought to the Regulator’s attention, it will respond and engage in the most proportionate way.

57. The Scottish Housing Regulator does not have a role in dealing with individual complaints. Individual complaints about landlords should be made to the landlord using its complaints procedure. The complaint can then be raised with the Scottish Public Services Ombudsman.

58. Where a concern is regarding the care or support provided in a supported housing scheme, this should be raised with the Care Inspectorate by email to: concerns@careinspectorate.gov.scot

Wales

59. If a LA identifies an issue with a registered social landlord in Wales who provides supported housing; it can report that to the Welsh Government.

60. Where the landlord is a registered charity, the LA can lodge a complaint with the Charity Commission about a charity using an online form.

61. LAs should refer any concerns about safety or quality of the care or support provided in a Welsh supported housing scheme to Care Inspectorate Wales using the ‘Raising a concern about care services’ section of their website.

Community Interest Companies

62. Where the landlord is a community interest company and is not registered with any of the above regulators, the LA can raise a complaint with the Regulator of Community Interest Companies. Information on how to complain can be found on the Regulator’s website.

Community Benefit Societies

63. Where the landlord is a community benefit society and is not registered with any of the above regulators, the LA can raise a complaint with the Financial Conduct Authority (FCA). LAs can make a complaint about a community benefit society they believe is operating improperly by contacting: mutual.societies@fca.org.uk

UC claimants living in supported housing

64. Housing costs for claimants living in specified accommodation are not payable in UC. All claimants who live in supported housing are advised to claim HB through their LA for support with their housing costs when they make a claim for UC. When completing a UC claim, if the claimant believes they live in supported housing they should declare ‘I’m in supported or sheltered accommodation’ when asked about their housing costs.

65. It is the responsibility of the LA to determine whether the accommodation meets the specified accommodation definition and, as a result, whether their housing costs should be met through HB or UC. Until the LA makes this decision, the claimant cannot receive help with their housing costs from UC or HB. However, LAs should recommend that claimants make a UC claim to get help with their other living costs and show an intention to claim UC housing costs.

66. Where the LA decides that the accommodation is not specified accommodation, they should advise the claimant to declare a change in their circumstances on their UC account. Some suggested wording:

• “The accommodation you live in does not meet the criteria for specified accommodation, so you are not eligible to claim HB. To claim help with your housing costs, you must declare a change in circumstances on your UC account and declare either ‘I rent from a council or housing association’ or ‘I rent from a private landlord’. You must not declare ‘I’m in supported or sheltered accommodation’.”

67. LAs should provide this advice either as part of the HB decision notice, by a separate notification or through a separate conversation as appropriate with the UC claimant as part of a signposting conversation. Claimants can dispute this decision if they do not agree.

68. Once the claimant has successfully re-declared their housing costs on their UC account, their housing entitlement will be revised back to the date they originally declared they were living in the accommodation.

When UC and HB are payable

69. Where a UC claimant or a member of their household has left their home through fear of violence but intends to return, rental liability for the home that has been left and any new home can be met for up to 12 months.

70. Where their new home meets the specified accommodation definition, help with housing costs for the new home is available through HB whilst they can continue to receive help with their housing costs via UC for their previous home, subject to the time limit. This circumstance may be applicable to claimants living in refuges but could also apply to any other type of specified accommodation.

Specified accommodation

71. Specified accommodation^{[footnote 2]} is a term used to describe supported housing where help with housing costs is provided through HB. Claimants who live in specified accommodation (where eligible for help) have their HB excluded from the benefit cap calculation.

72. Specified accommodation is made up of four categories:

• Exempt accommodation
• Managed properties
• Refuges
• LA hostels

Exempt accommodation

73. Exempt accommodation is an individual dwelling which a person is liable to make payments for, that they occupy as their home and which is provided by:

• a non-metropolitan county council in England
• a housing association
• a registered charity, or
• a voluntary organisation where that body, or a person acting on its behalf also provides the claimant with care, support or supervision^{[footnote 3]}

74. The meaning of ‘care, support or supervision’ for exempt accommodation purposes is covered in the Care support or supervision section (paragraph 136), whilst definitions of each landlord type can be found at paragraph 89.

75. Exempt accommodation claims are subject to the pre-1996 rules for determining eligible rent rather than the rules which the other three categories of specified accommodation are subject to. However, some refuges may be classified as ‘Exempt Accommodation’ because of both the landlord type and the fact that care, support or supervision is provided. Please refer to the Eligible rent section (paragraph 175) for more information.

Managed properties

76. A further category in the specified accommodation definition, is referred to as ‘managed properties’ (as per circular HB A8/2014 issued to LAs). This category covers supported housing which does not meet the definition of exempt accommodation because of the complex funding arrangements involved in providing the care, support or supervision, which is not provided either by the landlord or on their behalf^{[footnote 4]}.

77. To meet the managed properties definition, a dwelling must be provided by a:

• county council in England
• housing association
• registered charity, or
• voluntary organisation^{[footnote 5]}

78. The claimant must also have been admitted to the dwelling to receive the care, support or supervision being provided which is connected to living in that home. This means that it is not floating support. There is more information on floating support in the Care, support or supervision section at paragraph 136. As with exempt accommodation, the claimant must also be in receipt of care, support or supervision.

79. Managed properties differ from exempt accommodation in that the care, support or supervision does not need to be provided by the landlord or on their behalf. This means that dwellings that have more complex care and funding structures are also protected from welfare reforms.

Example one

A claimant with severe learning difficulties lives in supported housing provided by a housing association which has been specially adapted and designed for their support needs. The landlord identified the claimant’s additional support needs whilst assessing their application for social housing and decided after a formal admission process that their supported housing would be appropriate.

Whilst the landlord provides minimal support to these tenants, the main care has been commissioned by the LA. The LA funds a separate care provider to provide daily care and support to the claimant as part of a wider agreement with the landlord to provide supported housing for this client group.

The care provider does not provide care and support on the landlord’s behalf; it provides it on the council’s behalf. This means that it cannot be taken into account as provided by the landlord when considering whether the dwelling is exempt accommodation. As the care, support or supervision provided by the landlord is not more than minimal, the dwelling cannot be exempt accommodation. However, the claimant was admitted to the dwelling to receive the (more than minimal) care and support provided and that care and support is only available whilst they live in that accommodation (not floating support). This means that the dwelling meets the managed properties definition.

Example two

A claimant living in mainstream social housing with no adaptations develops a need for care, support or supervision. The LA assesses their needs and provides daily support in their home at mealtimes as a result. If the claimant was to move home within the LA area, the LA would continue to provide the support at the new address. This is an example of floating support which means this dwelling will not meet the definition of exempt accommodation or managed properties.

Refuges

80. The refuges category^{[footnote 6]} is aimed at non-permanent accommodation provided by third and social sector landlords to people fleeing domestic abuse.

81. To meet the definition, the claimant’s dwelling must be provided by:

• any LA
• a housing association
• a registered charity, or
• a voluntary organisation

82. The landlord must provide the dwelling to the claimant because they have left their home as a result of domestic abuse. Domestic abuse means any incident (or patterns of incidents) of controlling behaviour, coercive behaviour, violence or abuse, including but not limited to:

• psychological abuse
• physical abuse
• sexual abuse
• emotional abuse
• financial abuse^{[footnote 7]}

83. The domestic abuse does not need to be perpetrated by a partner or family member. Other types of abuse that may occur in a domestic setting are also included, such as abuse by a neighbour or landlord.

84. The claimant may have been in intermediate accommodation (possibly another refuge) before their current dwelling but all that needs to be established is that they are living in a refuge because they left their home due to domestic abuse.

85. The claimant’s occupancy of the dwelling must also be temporary. The refuge category only covers non-permanent accommodation. The dwelling they are living in must also be mainly dedicated to providing non-permanent accommodation to people who have fled their homes due to domestic abuse. For example, if a LA placed a claimant fleeing domestic abuse into mainstream social housing, this could not be treated as a refuge as it is permanent and is not normally used as refuge accommodation.

86. There is no requirement that care, support or supervision is provided to claimants for the dwelling to meet the refuge definition. However, care support or supervision may be provided as part of the accommodation and, therefore, it is possible for a refuge to meet the exempt accommodation criteria.

LA hostels

87. This category covers hostels provided by LAs where care, support or supervision is also provided and relies on the definition of “hostel” within the HB Regulations 2006.^{[footnote 8]} For a dwelling to meet this definition, it must be owned or managed by a LA and:

• comprises non-self-contained accommodation, which is not a care home, and
• have either board or adequate facilities for the preparation of food, and
• the claimant receives care, support or supervision

88. Hostels provided by other not-for-profit landlords where care, support or supervision is provided, may fall into one of the first two categories of specified accommodation.

Landlord types

89. The starting point for determining whether a dwelling is specified accommodation is the landlord. The landlord has the legal relationship with the occupant through the tenancy or licence agreement who the resident or occupant is liable to pay their rent to. The landlord can own the freehold of the property or lease it from another organisation/individual.

90. The landlord cannot be a managing agent or an organisation which only provides the care, support or supervision to the claimant. Where a social landlord, such as a housing association or charity, is acting as a managing agent for a private profit-making organisation, this cannot be specified accommodation.

91. Specified accommodation landlords must be not-for-profit organisations.

LAs

92. There are three main types of LA:

• upper-tier authorities (county councils)
• lower-tier authorities (borough or district councils where a county council provides upper-tier services)
• single-tier or unitary authorities (such as metropolitan or London boroughs)

93. Exempt accommodation can only be provided by non-metropolitan county councils in England. Managed properties can only be provided by English county councils. These are upper-tier authorities in England which do not administer HB. However, refuges and LA hostels can be provided by any type of LA in Great Britain.

94. It is important that the LA establishes that the claimant is liable to pay the rent to the LA specified as their landlord. This can be done by checking the tenancy agreement or contacting the relevant LA.

Housing associations

95. A housing association is defined as a society, body of trustees or company which:

• is established for the purpose of, or amongst whose objects or powers are included those of, providing, constructing, improving or managing, or facilitating or encouraging the construction or improvement of, housing accommodation, and
• does not trade for profit or whose constitution or rules prohibit the issue of capital with interest or dividend exceeding such rate as may be prescribed by HM Treasury, whether with or without differentiation as between share and loan capital^{[footnote 9]}

96. This means that to be recognised as a housing association, the organisation must have been set up to provide social housing and must invest its surplus back into providing social housing.

97. A housing association can be registered with the Regulator of Social Housing in England, the Scottish Housing Regulator in Scotland or with the Welsh Government in Wales. Each regulator holds a public list of these organisations which LAs should check. Any housing associations registered with the Scottish Housing Regulator or Welsh Government are not-for-profit organisations. However, for-profit organisations can become RSL in England but are marked as for-profit on the Regulator’s list. For-profit landlords cannot meet this definition of a housing association, even if they are registered.

98. Housing associations can also choose not to register with the Regulator of Social Housing in England. These organisations can still meet the definition of a housing association. However, LAs should ask to see a copy of their constitution or the rules which govern their activities to confirm this. It may also be useful to establish why they are not registered and see a summary of their accounts to ensure the surplus is not being removed from the business.

Registered charities

99. LAs can check whether an organisation is a registered charity by checking the Charity Commission website in England and Wales or the Scottish Charity Regulator (OSCR) website in Scotland. You can search using either the charity’s name or their registration number which should be available on any correspondence from the landlord.

100. In England and Wales, charities must register with the Charity Commission if their gross annual income exceeds £5,000 but there are some exemptions.^{[footnote 10]} Where charities are exempt from registration, they can still be treated as a registered charity for the purpose of being a specified accommodation landlord.

101. In Scotland, all charities must register with OSCR. If an organisation is not listed in the Scottish Charity Register, it is not a charity in Scotland. There are no categories of charities exempt or excepted from registration in Scotland. Charities registered with the Charity Commission in England or Wales also must register with OSCR if they operate as a charity in Scotland. This includes providing supported housing.

102. More information about the Charity Commission and OSCR can be found in the Regulation section at paragraph 20.

Voluntary organisations

103. A voluntary organisation is a body (excluding public or LAs) whose activities are not carried out for profit. This can include organisations which are not charities or housing associations but still can be considered not-for-profit such as Community Interest Companies or Community Benefit Societies.

104. Like unregistered housing associations, LAs must establish that any voluntary organisations are not for-profit. Therefore, they should ask for a copy of their constitution or Articles of Association. If an LA wishes to obtain this information themselves, (especially Community Benefit Society’s) they should access Companies House website, and access FCA’s website, then using their mutual register, you can download further information that govern their activities and request a summary of their accounts. The way the organisation is set up should prevent any person, organisation or body from making a profit from its operations or the sale of its assets.

105. Indicators that a landlord is a not-for-profit organisation include:

• having a formal constitution
• being registered with the relevant regulator; for example, Regulator of Community Interest Companies
• not paying dividends or taking profits from its operations
• not paying dividends or make profits as a result of disposing of its assets
• not making disguised payments to directors (or anyone else) which are in fact profits or dividends
• having an asset lock which prevents assets or proceeds from being used for anything other than the reason the organisation was set up (these are fundamental features of charities and community interest companies)

106. Registration with the appropriate body does not guarantee that an organisation is not-for-profit so LAs must rigorously examine the information available about the landlord before deciding on its status.

107. A landlord can fall into more than one of these different categories. However, it is sufficient to verify that the landlord falls within one of the categories.

Community Interest Companies

108. Community Interest Companies (CICs) are a type of limited company introduced in 2005 to support social enterprises. CICs are not charities and cannot be charities. They are classified as ‘not for profit’ organisations which can provide limited dividends to their shareholders if they are limited by shares. However, the purpose of a CIC is primarily to provide a benefit to the community they serve. LAs should rigorously examine the information available about a CIC; being one does not guarantee that they will satisfy the definition of a voluntary organisation.

109. CICs are regulated by the Regulator of Community Interest Companies who work within Companies House. The Regulator decides whether an organisation can become a CIC, provides guidance and operates a “light touch” regulation of CICs. This means that the Regulator responds to complaints rather than actively regulating these companies.

110. Circumstances in which the Regulator would investigate include:

• fraud or other criminality
• serious mismanagement putting significant assets, or funds, at risk
• a pattern of conduct involving deliberately misleading or deceiving customers or creditors
• serious breach of directors’ duties to the company or its credits

111. Information on how to complain about a CIC can be found on the Regulator’s website.

112. A CIC must be a limited company. This means that LAs can search for the company’s information on the Companies House directory. Here LAs can find published information related to the company’s operation including a community interest statement setting out the purpose of the business, accounts and an annual CIC report which will often be found as an addendum to the annual accounts submitted on the template CIC34 form. This summarises what the company has done to benefit its community and what payments were made to directors and dividends. Where the report refers back to the accounts, care should be taken to ensure the accounts contain the statutorily required information.

113. A CIC can form limited by shares or limited by guarantee without share capital.

114. A company limited by shares is the most common type of ordinary company. The owners of a company limited by shares pay the cost of their share when they join the business but has no further liability beyond that. The company raises money by selling shares to potential investors. These company types can pay a portion of their profit as dividends to their shareholders. Dividends paid by CICs are subject to a dividend cap of 35% of profits.

115. A company limited by guarantee is one where its members guarantee to meet the debts of the company up to a specific limit if it fails. They have no liability beyond that limit. In practice, the guaranteed sum is usually £1. These are the most common type of CIC. As they have no shareholders, no dividends can be paid.

116. Either of these company types can make profits. Being limited by guarantee is not an automatic indicator that a company is a not-for-profit organisation.

117. Every CIC must have an asset lock. An asset lock is designed to ensure that the assets of the CIC (including any profits or surpluses) are used for the benefit of its community. CICs can only transfer assets if one of the following requirements is satisfied:

• It is made for the full market value, so the CIC retains the value of the assets transferred.
• It is made to another asset-locked body which is specified in the CIC’s Articles of Association.
• It is made to another asset-locked body with the consent of the Regulator.
• It is made for the benefit of its community

118. CICs can also set more stringent rules for their asset lock. These rules will be set out in its Articles of Association.

119. LAs should check the CIC’s constitution, accounts and Articles of Association to determine whether it meets the definition of a voluntary organisation for HB purposes.

Community benefit societies

120. A community benefit society is an organisation that carries out an ‘industry, business or trade’ where it is, or intended to be, conducted for the benefit of the community. The community could be the wider community or a more defined one.

121. This legal form was introduced in 2014 by the Co-operative and Community Benefit Societies Act 2014. Like a community interest company, being a community benefit society does not guarantee that the organisation satisfies the voluntary organisation definition; LAs should rigorously examine any available information.

122. Community benefit societies are a type of mutual society registered^{[footnote 12]} with the FCA. The FCA holds a register of all mutual societies, including those who have deregistered. They are a type of company limited by shares which means their listing will also be found at Companies House referring back to the FCA for detailed information. LAs can make a complaint to the FCA about a community benefit society they believe is operating improperly by contacting: mutual.societies@fca.org.uk

123. Community benefit societies can be wholly charitable organisations but will not be registered with the Charity Commission. Therefore, LAs need to investigate their operation to establish whether they meet the voluntary organisation definition.

124. Community benefit societies cannot distribute it’s profits to stakeholders via dividends. Instead, the surplus made must be used to benefit the community which could be by reinvestment in the business or by donation to an external organisation for the purpose of benefitting the community. However, these societies can pay interest on its shareholders’ share capital using its profits.

125. LAs should check the society’s constitution, accounts and Articles of Association to determine whether it meets the definition of a voluntary organisation for HB purposes.

Lease-based supported housing schemes

126. In recent years, there has been an increase in supported housing providers leasing accommodation from profit-making organisations. This allows rapid expansion of landlords’ portfolios but comes with several risks for tenants, LAs and landlords.

127. The leases that landlords enter into for these properties can vary depending on how many years they are for. A short-term lease could last over three to ten years. A long-term lease, depending on the legalities, could be over 21 to 99 years. This is often on full repairing and insuring terms with annual uplifts linked to the Consumer Price Index. The owner of the building will charge a lease fee to the landlord who, in turn, will include this in the rent charged to their tenants. These tenants claim for help with these costs through HB.

128. The Regulator of Social Housing in England recognises the financial burden placed on the registered providers of social housing, who enter into these lease arrangements and has published a statement regarding lease-based providers of supported housing which highlights the governance and viability risks involved in this model.

129. For HB teams, the same rules apply to these claims as any other specified accommodation claim. However, there are some additional steps some LAs have taken when assessing claims from claimants living in lease-based supported housing schemes.

130. LAs can investigate the relationship between the claimant’s landlord and the owner of the property to establish whether there is a commercial relationship or if there is a concern that the scheme may have been arranged to take advantage of the HB scheme.

131. The LA can look at information on the Companies House website to compare the directors and interests of the two organisations to help form a view as to whether the scheme may have been set up to take advantage of the HB scheme. Where the organisation operating a scheme has Persons of Significant Control listed at Companies House if those individuals have a beneficial interest in property utilised by the scheme, the LA may wish to seek assurances as to how any conflict of interest are appropriately managed.

132. LAs can also interrogate the lease conditions to establish whether the property owner exerts excessive influence on the landlord. Where the landlord does not have freedom to undertake a landlord’s usual duties, for example setting their own rents, they may be more akin to a managing agent and can be treated as such for HB purposes. Where the LA decides that the claimant’s landlord is a managing agent, the property owner should be treated as the landlord and where they are a profit-making body, the accommodation cannot be specified accommodation.

133. It is important to note that, when operated with considerations to good governance and financial viability without taking advantage of the HB scheme, these models can be a legitimate and positive method of providing supported housing.

Requirement for claimant to provide information

134. There is value in LAs requesting further evidence (if required) and the relevant information from claimants. Claimants must provide this information within one month of the request (or a longer period that the LA thinks is more reasonable).^{[footnote 13]} LAs should take into account the complexity of the information required and the capability of the claimant to provide it when considering a reasonable time limit.

135. It should be noted that all parties requesting information will need to comply with the applicable General Date Protection Regulation legislation. This applies throughout the guidance where there are references to processes which involve the transfer of personal data.

Care, support or supervision

136. The provision of care, support or supervision is a requirement to meet the definition of specified accommodation^{[footnote 14]} with the exception of the refuges category^{[footnote 15]}. However, some refuges may be classed as exempt accommodation^{[footnote 16]} because of the landlord type and the fact that care, support or supervision is provided. Care, support and supervision are not defined in the regulations so take their ordinary meanings.

137. When assessing whether care, support or supervision is provided, LAs should:

• check that the landlord, or someone on their behalf, is providing the care, support or supervision
• consider whether the claimant has a need (actual or potential) for the care, support or supervision provided
• consider whether there is sufficient care, support or supervision provided, for example, ‘more than minimal’
• determine whether the care, support or supervision provided is linked to the accommodation or whether it is ‘floating support’
• check how the care, support or supervision is being funded
• determine the value of the care, support or supervision and make an appropriate deduction from the eligible rent if appropriate

Care, support or supervision provided ‘on behalf of the landlord’

138. For exempt accommodation claims, the care, support or supervision must be provided by the landlord or someone acting on their behalf.^{[footnote 17]} The landlord could meet this condition without being the main provider of care, support or supervision to the claimant,^{[footnote 18]} but the care, support or supervision provided directly by the landlord must still be sufficient (see Deciding whether the care, support or supervision is sufficient at paragraph 150).

139. Where care, support or supervision is provided by someone other than the landlord, the landlord must have arranged for or paid them to do it for it to be considered as provided on the landlord’s behalf.^{[footnote 19]} There should be a contract between the landlord and care, support and supervision provider, which proves it is being provided on the landlord’s behalf^{[footnote 20]}.

140. Therefore, situations where the scheme has been arranged as a joint venture or where the landlord is simply a party to the care, support or supervision cannot be considered exempt accommodation.^{[footnote 21]} For example, where the care, support or supervision provider is commissioned/contracted by an external group (such as the NHS or LA), not the landlord.

141. If the LA determines that the care, support or supervision is not provided by the landlord or someone on their behalf, the dwelling is not exempt accommodation. The LA should consider whether the care, support or supervision provided is floating support (see paragraph 156) or whether the dwelling meets the managed properties category of specified accommodation instead.

Example one

A housing association provides long-term supported housing for tenants with severe mental health conditions. Intensive care and support are provided by an organisation specialising in the care of these individuals. The landlord set up this arrangement and has a direct contract with the care provider in which it pays for their services. The LA decides that the care, support or supervision is sufficient and that it is provided on the landlord’s behalf. Therefore, it meets the exempt accommodation definition.

Example two

The LA has commissioned a supported housing scheme to allow people with learning disabilities to live more independently in the community. Whilst a housing association will provide the accommodation, the LA will commission a specialist care provider to provide the care, support or supervision. The landlord was a party to the arrangement of this care, support or supervision but it was the LA who arranged it. Therefore, the care, support or supervision provided by the provider and commissioned by the LA cannot be ‘provided on the landlord’s behalf’. The care, support or supervision provided by the landlord is minimal support maintaining their tenancy agreements and benefit claims. Therefore, the LA decides that the landlord does not provide sufficient care, support or supervision for the claim to be exempt accommodation. However, the LA decides that this accommodation does meet the specified accommodation managed properties definition instead.

Determining need

142. To be ‘provided with care, support or supervision’, the claimant must have an actual or potential need for the care, support or supervision they receive.^{[footnote 22]} If the claimant does not require the care, support or supervision, it cannot be treated as provided. Whilst claimants do not have to use the support, it must be available for them if they decide it will help^{[footnote 23]}.

143. For example, an optional workshop which teaches residents budgeting skills could still be considered support but not enough on its own. However, it should also be likely that they will use the support (shown in the example) and it will benefit them with their day-to-day lives^{[footnote 24]}.

144. The needs of tenants living in supported housing will vary greatly. The care, support or supervision provided to them should be tailored to their needs. As a result, where there are multiple dwellings within the same building and same landlord, it cannot automatically be assumed that all dwellings are specified accommodation. One claimant’s accommodation might not meet the specified accommodation definition if the care, support or supervision that they need is not provided to them^{[footnote 25]}. If a claimant does not have an established need for the care, support or supervision they receive, it cannot be treated as provided. Therefore, each case must be assessed based on the claimant’s individual circumstances. LAs should not make blanket decisions based on the type of scheme rather than on individual’s needs.

145. The admission process to supported housing should include assessing the need for care, support or supervision by someone that is suitably qualified to do so. This should be a professional or expert with experience in the care or support sector such as the LA’s adult social care team. But this could also be the landlord, the support provider for a managed property, or the local district housing office if the LA is satisfied that they are suitably qualified.

146. The expectation for needs to be identified before entering supported housing is reflected in the National Statement of Expectations for supported housing. It states that providers (alongside local councils and referring bodies) should have assessed whether the claimant’s needs would be met by this accommodation before they moved in. Therefore, LAs can request a needs assessment from the landlord alongside information about what care, support or supervision is provided for each tenant.

147. Where a formal needs assessment does not yet exist, this does not mean that the claimant does not need the care, support or supervision. The LA must evidence the needs of the claimant in the way they deem appropriate. This may mean asking the landlord to complete a needs assessment or conducting their own, with the support of the relevant department in the LA or a trusted third party.

148. If the claimant is receiving public funding for the care, support or supervision, this would be another reasonable indication that there is an established need and that a public body has carried out an assessment of their needs.

149. The referral route a claimant takes into supported housing will often affect whether a needs assessment has taken place. HB teams should work with supported housing stakeholders within their LA and their county council (where applicable) to monitor how claimants are referred into supported housing and how/if their needs are assessed in each case.

Example one

A claimant is placed, by their LA, into short-term supported housing provided by a registered charity. As part of their normal claim assessment, the HB team request a needs assessment and a summary of what care, support or supervision is provided from the landlord. The landlord provides a needs assessment completed by the referring organisation (the LA) which specifies that the claimant has specific need for budgeting support, alcohol dependency support and mentoring to manage their tenancy. The landlord also provides the care/support plan for the claimant which has been drafted in response to the needs assessment and outlines how the landlord will provide the right support to meet the claimant’s needs and the funding provided by the LA to deliver this. The LA decides that sufficient care, support or supervision is provided and that there is a need for all the care, support or supervision provided. This means that the claim meets the specified accommodation definition.

Example two

After leaving prison, a claimant moves into short-term supported housing provided by a voluntary organisation. The landlord provides budgeting support, help claiming benefits and alcohol/drug dependency mentoring. The LA requests a needs assessment and information on how the claimant was referred into the accommodation. The landlord explains that there was no formal needs assessment as the claimant self-referred into the accommodation. Following further conversation, the LA discovers that the claimant’s main need was for accommodation to prevent homelessness and that they do not have any dependencies or need for budgeting support but would benefit from the help claiming and maintaining their benefits. As the budgeting support and alcohol/drug dependency mentoring are not needed by the claimant, they are discounted when the LA decides whether sufficient care, support or supervision is provided. As a result, the LA decides that the care, support or supervision (help with benefits) provided to the claimant is not more than minimal.

Deciding whether the care, support or supervision is sufficient

150. LAs must determine whether the amount of care, support or supervision provided to the claimant is sufficient. The amount provided can vary considerably between claimants, even in the same building, but it must be more than minimal. Each claim must be assessed individually as the care, support or supervision provided and their needs will vary between claimants.

151. There is no set number of hours that must be provided for the care, support or supervision to be sufficient. Instead, the activities performed in providing it must be considered (alongside the time spent) to determine whether sufficient care, support or supervision is provided. For example, helping with benefit claims and carrying out safety/security inspections is not enough on its own.^{[footnote 26]} The ongoing care, support or supervision may vary from week to week so it should be considered on an average basis.

152. Care, support or supervision should be provided on an ongoing basis and one-off support such as setting up a council tax exemption would not be enough.^{[footnote 27]} The ongoing care, support or supervision may vary week-to-week so it should be considered on an average basis. For example, if a claimant receives personal support one week and none for the next three weeks, there would not be sufficient care, support or supervision provided overall.

153. LAs should consider how the care, support or supervision is provided as well. For example, if support is provided on one-to-one basis, the time spent should be considered more substantial than a group session. Also, a service which is provided regularly and directly to a tenant (such as a weekly hour-long appointment with each tenant) should be considered more substantial than a service which is simply available to the claimant (such as a support officer being available in a communal space for three hours each week). However, as noted above, care, support or supervision only needs to be available and likely to be needed and beneficial. If there is no need for the care, support or supervision provided, LAs should discount that activity from the overall consideration.

154. The provider of the care, support or supervision could also affect how substantial the LA considers that activity to be. The LA should view an activity performed by a qualified specialist as more substantial than a member of staff who has not been trained and qualified.

155. Where the landlord performs housing management which goes beyond the normal responsibilities of a landlord (in the general needs social housing sector), this could be considered support. Carrying out repairs and maintenance would be considered ordinary housing management; however, if the claimant’s disability places ‘unusually onerous maintenance obligations’ on the landlord, that additional maintenance could amount to support.^{[footnote 28]} However, it is unlikely that this will be sufficient care, support or supervision on its own and should be considered alongside a wider suite of care, support or supervision.

Example one

A social landlord running a hostel provides every tenant with help making a claim to HB through intensive one-off support and then a weekly drop-in session with a benefit advisor to help maintain the benefit claims. The landlord also performs additional repairs due to the extra wear and tear caused by tenants. No other care, support or supervision is provided. The benefit help is also provided through a drop-in session which tenants must choose to actively engage with. The LA determines that the support provided is not more than minimal and therefore the dwelling is not specified accommodation.

Example two

A social landlord provides supported housing for tenants with severe health conditions and has arranged for a more specialised care provider to provide extensive daily care for residents on their behalf. The care helps tenants with day-to-day tasks, such as meals and hygiene, and attend multiple times each day. The landlord also provides support to tenants through their housing and benefit officers to manage their tenancy and benefit claims. Overall, the LA determines that the care, support or supervision provided by the landlord and the care provider on their behalf is more than minimal. Therefore, the dwelling is specified accommodation if the claimant needs the care, support or supervision provided.

Example three

A registered charity provides short-term supported housing for people with alcohol and drug dependencies. The charity provides a dependency support programme where tenants attend a one-to-one appointment and two group sessions every week with a personal, qualified recovery counsellor. They also provide weekly drop-in sessions with housing and benefit officers for help to manage their tenancy and benefit claims. The LA determines that the care, support or supervision provided by the landlord is more than minimal. Therefore, the dwelling is specified accommodation if the claimant needs the care, support or supervision provided.

Example four

A housing association provides sheltered housing for over-55s. The landlord provides an on-call warden and an emergency alarm system. Support is only provided by the warden in emergency situations. No other care, support or supervision is provided. The LA deems that this is not more than minimal, and the dwelling is not specified accommodation.

Example five

A housing association provides adapted sheltered housing for people mainly over-55. The landlord provides staff who give extensive support to residents including managing medical appointments, daily activities, daily visits, reporting of repairs, support with finances and benefits. The LA deems that, where claimants need the support, the dwelling could meet the specified accommodation definition.

Example six

A social landlord running a hostel provides each tenant with help making and maintaining a HB claim (and other benefits), help maintaining their tenancy, additional repairs, and overnight supervision. The help making a HB claim is through a one-off session when they first move in. The support maintaining their benefit claims and tenancy is provided through a weekly optional drop-in session with a housing officer which all residents can attend. The LA decides this support is minimal due to the lack of expertise of the staff member, the optional nature of the support and that the session is a drop-in for any resident. An overnight security officer also supervises the tenants every night from 8pm-8am to prevent property damage. Given that the supervision mainly focuses on protecting the accommodation rather than tenants, its value is diminished. Overall, the LA decides that the care, support or supervision is not more than minimal. Therefore, the dwelling is not specified accommodation.

Floating support

156. Floating support is where the care, support or supervision is not linked to the accommodation which the tenant lives in. For example, where the property is general needs housing where the care, support or supervision being provided is not connected with living in the home. An indication of floating support is if the tenant moved to a different property, their care/support package would follow them.

157. Where the care, support or supervision provided is floating support the dwelling cannot be considered as specified accommodation. This is because the same care, support or supervision could be provided in any accommodation, not just supported accommodation, and the rent would not be higher than ordinary social or third sector housing and therefore not in need of protection.

158. As a result, accommodation where the care, support or supervision provided is floating support does not meet the definition of a managed property, nor any other category of specified accommodation. Accommodation that has not been specially designed, acquired, adapted, or designated to be supported housing cannot be considered specified accommodation.

Funding of care, support or supervision and deducting care, support or supervision costs

159. Funding for care, support or supervision is available to supported housing providers through various public bodies including LAs and the NHS. However, care, support or supervision cannot be funded through HB; any charges claimants are liable to pay for care, support or supervision are not eligible.

160. LAs should identify how the care, support or supervision is funded. Landlords will be able to tell LAs what funding they use for their ineligible costs. The HB team may also be able to source this information from the commissioning team and should check this within their LA.

161. Beyond commissioning from public bodies, landlords could also fund the care, support or supervision by charging their tenants for what they receive or by raising the funding themselves through donations or cross subsidies from other activities.

162. The method of funding the care, support or supervision does not affect whether the accommodation meets the specified accommodation definition. However, if there is not a sufficient, separate funding source for the care, support or supervision, the LA will deduct an amount to cover the cost of providing it from the eligible core rent or service charges.^{[footnote 29]} The LA should also make this deduction where there is not enough evidence to prove the care, support or supervision is funded from a source outside of the rent.

163. Where the landlord charges the cost of the care, support or supervision to their resident (or there is no separate identifiable funding source), the LA should use the guidance set out in the Service charges section (see paragraph 166) to identify and deduct the ineligible charges. These charges could be included in the rent or identified separately as a service charge; if they fund any of the care, support or supervision they must be deducted from the eligible rent.

164. If the LA decides that the ineligible charges which have been deducted are less than the cost of providing the care, support or supervision, a further deduction should be made. The LA should request a rent breakdown to identify any support charges but where there are no identifiable charges (or funding source) for the care, support or supervision provided, the LA should make a deduction equivalent to the cost^{[footnote 30]}.

165. The HB team should work with trusted stakeholders, including their own, and neighbouring LAs’, commissioning teams as well as supported housing providers, to establish a reasonable cost for the care, support or supervision provided. The LA should consider the nature of the care, support or supervision and the number of people this is provided to when considering what a reasonable cost would be. This amount can be used to reduce the eligible core rent or eligible service charges as appropriate, beyond what has already been identified as ineligible charges.

Example one

A claimant is renting short-term supported housing for people with alcohol/drug dependencies from a housing association. The LA has decided that sufficient care, support or supervision is provided and that the claim meets the exempt accommodation definition. As part of their assessment of the claim, the LA requests information about how the care, support or supervision is funded. The landlord informs them that the alcohol/drug dependency support has been commissioned by the local Clinical Commissioning Group. They provide funding for each person that is referred from the NHS, as the claimant was. However, this funding only covers the alcohol/drug dependency counselling and does not extend to any of the other care, support or supervision provided by the landlord. Therefore, the LA must deduct the cost of providing these other services from the eligible rent. Reasonable costs for providing this additional care, support or supervision are worked out through comparisons with other supported housing schemes providing similar services in their area and neighbouring areas.

Example two

A claimant is renting long-term supported housing for people with severe mental health conditions from a registered charity. The LA has decided that sufficient care, support or supervision is provided and that the claim meets the exempt accommodation definition. As part of their assessment of the claim, the LA requests information about how the care, support or supervision is funded. The landlord informs them that they have no formal commissioning and funding source; instead, the charity sources tenants through various referral routes and funds the care, support or supervision through donations. The LA requests proof that the donations they receive are sufficient and for a rent breakdown to ensure care, support or supervision isn’t charged to the claimant. After considering this information, the LA decides that the donations the charity receives are not sufficient to cover the provision of the care, support or supervision. As a result, they make a large deduction from the eligible rent in line with the cost of providing similar care, support or supervision in other schemes in surrounding areas.

What are service charges?

166. Service charges are additional costs beyond a core rent charge which must be met by tenants to pay for services provided by their landlord. Service charges are usually paid to cover the maintenance of communal areas and grounds. In supported housing, service charges could also include services provided to the claimant such as care, support or supervision.

167. Some service charges are eligible for HB and can be paid as part of a claimant’s HB award if they meet the conditions. However, there is a list of ineligible service charges which cannot be paid in HB Regulations^{[footnote 31]}.

168. LAs should request a rent breakdown from the landlord which sets out all the charges included in the rent and service charges when a new claim or rent increase is submitted. The LA should then consider whether there are any charges included in the rent which should be treated as an eligible service.

Eligibility of service charges

169. Service charges are only eligible for HB purposes if:

• payment is a condition of the tenancy agreement
• the service being charged for is provided
• the function being charged for meets the HB definition of a ‘service’ (see paragraph 170)
• the service charge is connected to providing adequate accommodation (see paragraph 174)
• the service charge is not on the list of ineligible service charges in Housing Benefit regulations (see paragraph 182)

Definition of a ‘service’

170. HB regulations define services as: ‘services performed or facilities (including the use of furniture) provided for, or rights made available to, the occupier of a dwelling’^{[footnote 32]}.

171. As a result, a charge cannot be treated as a service charge under HB regulations unless it meets the definition above. Many functions often done by the landlord, such as general management tasks and building insurance, are usually included in the rent whether or not they are a service to the tenant.

Sinking funds

172. A sinking fund is money set aside to pay for future capital expenditure, debt or large repairs. The sinking fund could be set aside for any reason; they are becoming more common in new build schemes but equally can be appropriate to existing provision. Sinking funds are most common in shared ownership or leasehold arrangements where the homeowner is living in a flat. In these cases, sinking funds are charged by the freeholder to pay for large repairs such as fixing lifts. Sinking funds should be held separate from the rest of the landlord’s funds.

173. Where landlords indicate that a service charge is for their sinking fund, LAs should ask the purpose of the sinking fund to establish whether it is eligible or not and whether it is a rent or service charge.

Service charges ‘connected to providing adequate accommodation’

174. Charges for any service not connected with the provision of adequate accommodation are not eligible.^{[footnote 33]} This includes services which make it possible for the tenant to occupy the accommodation but have no impact on the condition of the accommodation. For example, support services for the claimant, including help with claiming benefits, cannot be considered as eligible.

175. Charges for installation, maintenance or repair of any special equipment or adaptations to the claimant’s accommodation to make it suitable to their particular needs are not an eligible service charge. However, ongoing maintenance of communal areas would be connected to the provision of adequate accommodation.

176. Any services provided to the claimant which are not part of ensuring the accommodation is adequate are ineligible. This includes all support services to the claimant as well as staff costs in relation to support services. These ineligible costs also include the provision of accommodation for support workers such as an office or other room that is necessary for the support, but the claimant does not occupy.

Eligible service charges

177. There is not a list of eligible service charges in regulations, only a list of ineligible costs. However, here is a list of common service charges which are usually treated as eligible:

• Concierge, caretaker or warden – only allow the proportion of the charge for the time they are providing accommodation-related services (see paragraph 180)
• Refuse removal of communal bins
• External cleaning of tenant’s windows where the tenant does not live on the ground floor
• Rental of furniture to tenants in the accommodation they occupy, only where the items being rented remain the property of the original owner
• Ongoing maintenance (including repair, cleaning and utility) of:
  • communal grounds (including basic gardening and lighting for areas of external access)
  • communal laundry facilities
  • internal communal areas
  • cleaning of windows in communal areas
  • communal lifts
  • communal telephone (excluding the cost of calls)
  • secure building access, including entry phones, key-cards and keypad door locking mechanisms

178. These are examples of eligible service charges but it is not an exhaustive list. LAs must identify all services included in the core rent to determine their eligibility. LAs may also uncover duplicated charges; in these cases, the duplicate charge must be deducted.

Communal areas

179. The term ‘communal area’ means an area (other than a room) of common access, for example, a hall passageway, kitchen or bathroom. However, in sheltered accommodation specifically, it could also be a room of common use such as a lounge^{[footnote 34]}.

Concierge, caretaker or warden

180. A service charge to cover the staff cost of a concierge, caretaker, or warden (or equivalent) would be eligible for the proportion of the time they spend providing support for eligible service charges as part (or the whole) of providing that service. However, there should not be a second separate service charge for providing that same service as this would not be reasonable. In these cases, the LA should treat that second charge as a duplicate and deduct it from the eligible rent, even if it has a different name.

Example

A caretaker is employed to carry out a range of maintenance services and the staff cost of this is £300 per week (wages and employer pension contributions etc.). The caretaker normally spends 20% of their time carrying out work directly related to an eligible service charge, for example, cleaning communal areas.

The LA works out 20% of the staff cost (£60 per week) and then divides that number by the number of tenants that the service is provided for example, 50 tenants. This means that the eligible weekly amount is £1.20 per tenant per week.

The landlord’s rent breakdown shows that a charge is also levied for maintenance services. The LA deducts the charges for services provided by the caretaker as this cost has already been taken into account.

Excessive eligible service charges

181. If the LA decides that a charge is eligible, but the amount charged is excessive compared to other comparable services in the area, the LA must determine an appropriate charge for the service. It would help the landlord if the LA provide a rationale for their decision.^{[footnote 35]} The excess between these two figures will be deducted from the eligible rent. LAs can also use this method to reduce the cost of eligible service charges which overlap or are duplicated.

List of ineligible service charges

182. Any service charges related to the following are ineligible for HB purposes:

• day-to-day living expenses^{[footnote 36]}
• charges to acquire furniture or household equipment where it will become the claimant’s property as part of an agreement with the landlord^{[footnote 37]}
• emergency alarm systems^{[footnote 38]}
• medical expenses, including counselling^{[footnote 39]}
• nursing/personal care^{[footnote 40]}
• any other support services^{[footnote 41]}
• any charges not connected to the provision of adequate accommodation^{[footnote 42]} (see paragraph 174)
• fuel, other than for communal areas^{[footnote 43]} (please see section A4.900 of the HB Guidance Manual for further details)

183. LAs must also ensure that no ineligible charges are included in the core rent. These charges must be separated out and deducted. Any duplicate charges must also be deducted.

Day-to-day living expenses

184. Any service charges which cover day-to-day living expenses are ineligible for HB purposes. These types of service charges include:

• meals, including preparation of meals or provision of unprepared food.^{[footnote 44]} For more information on charges for meals, see section A4.750 of the Housing Benefit Guidance Manual
• laundry, except for providing communal premises and equipment (washing machines/dryers) for the claimant to do their own
• leisure items including sports facilities and television rental, licence and subscription fees (but not television and radio relay charges, see section A4.760 of the Housing Benefit Guidance Manual for more information)
• cleaning services (except in communal rooms and areas)
• cleaning of windows (except where no member of the claimant’s household can do it themselves)
• transport
• heating, lighting and hot water for their accommodation
• gardening if it is not for a communal garden, but one where an individual has exclusive use

185. This list does not cover every ineligible day-to-day expense. Any charges in respect of day-to-day living expenses, whether on the list above or not, are ineligible for HB purposes.

Medical expenses, nursing and personal care, counselling, and support services

186. All charges for medical expenses, nursing and personal care, counselling or support services are not eligible for HB. This includes charges to cover the cost of staff providing these services. The care, support or counselling could be for any reason including the claimant’s physical, social and emotional capability. The care does not need to be physical, hands-on care but could also be emotional or psychiatric care, counselling, mentoring or support sessions.

187. The funding source for all care, support or supervision (see paragraph 159) should be identified in every specified accommodation case to identify whether it is charged for in service charges or the core rent. Where the landlord cannot provide sufficient evidence that the care, support or supervision is sufficiently funded through a separate funding stream (such as commissioning from a LA), the LA should assume that the cost is met through the rent charged to claimants (even if not explicitly) and make a deduction equal to the cost of this provision.^{[footnote 45]} Where care, support or supervision are charged for in the rent, these charges must be separated out and deducted (see deducting ineligible service charges at paragraph 192).

188. All charges for care, support or supervision services are ineligible. The provider of the care or support service is irrelevant; the service charge is still ineligible.

Intensive housing management

189. Intensive housing management is a term used to describe the housing management tasks that supported housing providers perform (sometimes with greater intensity) in addition to the duties of a general needs landlord. Between 2000 and 2003, some of these housing-related support costs were eligible in HB for exempt accommodation claims as part of the transitional HB scheme. When the transitional HB scheme ended in 2003 and Supporting People funding was introduced, all support costs were made ineligible again. Housing-related support falls under ‘General counselling and support services’ in the list of ineligible charges in HB regulations.^{[footnote 46]} Intensive housing management charges should be scrutinised to ensure they do not cover ineligible charges.

190. Intensive housing management (and similar terms) are now often used by landlords as an umbrella term to cover a range of charges. The LA should ask for a breakdown of these charges and then identify and deduct any ineligible or duplicate charges. Where charges relate to services which contribute to the accommodation satisfying the care, support or supervision requirement to be specified accommodation, they must be ineligible.

191. These charges could be included in the rent or separately identifiable as a service charge. There is further guidance below on what to do if a charge is not specified.

Deducting ineligible service charges

192. If the charge amount is specified, LAs should deduct the whole amount of the charge.^{[footnote 47]} However, if the LA considers the amount to be unreasonably low for the service provided, they should use their own valuation of the cost of providing the service when making the deduction.^{[footnote 48]}

193. If the charge amount is unspecified, the LA should apportion an appropriate amount from the core rent or other service charges which represents a fair amount for that service.^{[footnote 49]} The LA should consider the cost of comparable services. The LA should deduct the full cost, even where the claimant does not fully use the service. This also applies where an ineligible service is provided but included in the rent amount.^{[footnote 50]}

What is eligible rent?

194. Eligible rent is the amount of housing costs a claimant pays which may be met by HB. This includes the claimant’s rent and eligible service charges.

195. There are also additional rules which may restrict the rent further if it is unreasonably high. Depending on the type of specified accommodation and the length of time the claimant has been in receipt of HB at that address, different rules apply.

196. Before applying the relevant rent restrictions, the LA should request a rent breakdown from the landlord which sets out all the charges included in the rent and service charges. The LA should then consider using the Service charges section at paragraph 167 to determine which of the service/rent charges are eligible and ineligible for HB.

Eligible rent for managed properties, refuges and LA hostels

197. Apart from exempt accommodation, specified accommodation claims are assessed using the same eligible rent rules as regular HB claims. However, unlike regular claims, HB awards for specified accommodation claims are excluded from the benefit cap calculation.

Social rented sector

198. The Removal of the Spare Room Subsidy (RSRS) was introduced in April 2013 and applies to all working age claimants who are renting from a LA or registered social landlord.^{[footnote 51]} This means that RSRS could apply to managed properties, refuges and LA hostels which are provided by LAs or RSL if the accommodation is larger than the claimant’s needs. A RSRS toolkit for LAs is available on www.gov.uk which explains how RSRS affects claims and the exceptions to this policy.

199. If a LA decides that the rent charged is still greater than is reasonable to meet via HB, the LA should reduce the rent to a more appropriate level for that particular case.^{[footnote 52]}

Private rented sector

200. Local Housing Allowance (LHA) rates were introduced in April 2008 and apply to claimants renting from a landlord who is not a LA or registered social landlord. This means that LHA rates apply to managed properties and refuges (that do not meet the exempt accommodation criteria) provided by organisations which are not LAs or registered social landlords.^{[footnote 53]} The guidance for LAs about LHA rates, explains how LHA rates affect claims and exemptions.

201. One of the main exemptions from LHA rates is for claimants who have received HB continuously at the same address since before 7 April 2008. In these cases, managed property and refuge claims are subject to the ‘new scheme’ rules for calculating HB entitlement. These cases are referred to the Rent Officer for a determination which sets the maximum rent for that claim.^{[footnote 54]} More information on these rules can be found at A4.1330 of the Housing Benefit Guidance Manual.

202. Where a claimant has received HB continuously at the same address since before 1 January 1996, they are instead subject to the ‘old scheme’ rules. See the Eligible Rent for Exempt Accommodation section as follows for more information.

Eligible rent for exempt accommodation

203. Exempt accommodation claims are subject to the ‘old scheme’ (pre-1996) rules when it comes to calculating the eligible rent. The pre-1996 rules allow LAs to restrict the rent to the level of suitable alternative accommodation if the rent is considered to be unreasonably high or the accommodation is too large for the claimant’s needs.^{[footnote 55]}

Determining unreasonably high rents

204. LAs should develop administrative processes to identify rents which are unreasonably high.

205. An effective method of identifying high rents to scrutinise is setting a series of local rent limits to be used as a trigger for further action. These indicators of reasonable rents may need to vary according to the type of supported housing and the personal circumstances of the household.

206. These indicators could be based on:

• staff knowledge of the local and surrounding areas and its typical rent levels
• claim-related rent determinations made by rent officers in comparison to tenancies in the local area
• comparison with rents charged for similar accommodation in the local area
• comparison with the LA’s own rents for similar properties
• comparison with rents charged in neighbouring authorities for similar accommodation
• the ‘rent caps’ set out in DLUHC’s rent-setting policy statement

207. The precise administrative procedures for identifying potentially unreasonably high rents will depend on the organisation of each LA’s HB service. However, we would recommend that LAs utilise internal and external collaboration and the sharing of good practices with each other.

208. This is particularly important for specified accommodation claims as comparable accommodation may not be available within the LA area. This is also important where supported housing providers provide accommodation across LA borders as a consistent, unified approach is helpful for all stakeholders. However, it is important to be mindful of the differences in the rent levels of general needs accommodation in other LAs when making comparisons.

209. As recommended in the National Statement of Expectations for supported housing in England and tested successfully in the LA supported housing oversight pilots, collaboration with commissioning and housing options functions within your LA and/or with your corresponding county council is essential. This collaboration gives LAs greater control and understanding of their local supported housing sector and improves ways of working and consistency in decision making.

210. It is important that all evidence is collated and considered. Although many cases will have similar circumstances, each case must be considered on an individual basis.

211. LAs do not have to consider whether the landlord would be unable to provide the accommodation without setting the rent at that level. LAs simply need to consider whether the total rent charged (after the consideration of eligible service charges and deduction of ineligible charges such as support costs) is unreasonably high compared to suitable alternative accommodation elsewhere (not just higher).^{[footnote 56]} Where rents seem high, a detailed rent breakdown may be helpful in deciding whether the rent is reasonable.

Unreasonably large accommodation

212. Eligible rent restrictions can also be put in place if it is deemed that the accommodation is unreasonably large for the claimant’s needs. This should be done in line with the cost of suitable alternative accommodation as follows below.

Suitable alternative accommodation

213. If a claimant already has security of tenure, LAs should only treat alternative accommodation as a suitable comparable if it provides the same or similar security of tenure. Some types of tenancy give greater rights to the tenant and LAs must consider this when seeking suitable alternative accommodation.

214. The size, condition and facilities provided in alternative accommodation should be appropriate for the health and age of the claimant along with anyone else living in the property with them. For example, a disabled or elderly person might have special needs or require a more expensive or larger property.

215. The accommodation does not need to be provided by the same type of landlord and the level of public funding subsidising the rent levels is also irrelevant.^{[footnote 57]} Comparisons can be made between RSL and charities or community interest companies.

216. For alternative accommodation to be suitable it should be reasonable for the claimant to live there. It does not need to be equivalent to the accommodation they currently live in. The alternative accommodation could have fewer facilities as long as it is an appropriate dwelling for the claimant to live in and those missing facilities are not needed.

217. Although a claimant may be living in supported housing, LAs can use general needs accommodation as a comparison if it would be reasonable to expect the claimant to live there. However, suitable alternative accommodation for some claimants may need to be another supported housing scheme, particularly those with high care, support or supervision needs. It is important that the LA gathers sufficient information about the claimant’s accommodation needs before making comparisons.^{[footnote 58]} It is inappropriate to use alternative accommodation that is less suitable for the claimant than their current accommodation for comparisons.^{[footnote 59]}

218. LAs may compare the current accommodation with the cost of similar accommodation outside their area. This is an option when it is not possible to make valid comparisons with properties from your own area. This could be because there is not enough suitable alternative accommodation in the LA’s area to make a valid comparison. When comparing with other parts of the country, ensure general needs accommodation costs do not differ widely to local costs.

219. The LA simply must show that there is cheaper suitable alternative accommodation for the claimant; the accommodation does not need to be available for the claimant to move into.

Additional considerations for vulnerable claimants

220. Some claimants or members of their household can be classed as vulnerable. Certain additional conditions apply before the rent can be restricted where the claimant, their partner or other family member (where they live at the same address) falls into one of the following categories of vulnerable groups:^{[footnote 60]}

• reached the qualifying age for State Pension Credit
• has Limited Capability for Work
• treated as temporarily not having limited capability for work due to a temporary disqualification from Incapacity Benefit (IB) or Employment and Support Allowance (ESA)
• responsible for a child or young person who lives in the same household

221. Where claimants or members of their household are vulnerable, the rent can only be restricted if:

• suitable cheaper alternative accommodation is available, (see paragraph 227) and
• considering relevant factors, it is reasonable to expect the claimant to move from their current accommodation (see paragraph 230).

Reached the qualifying age for State Pension Credit

222. If the claimant or their family member who lives with them is aged 66 or over, you should check and verify the dates of birth of the relevant person.

Has Limited Capability for Work

223. To have Limited Capability for Work, the relevant person should be:

• in receipt of IB, ESA or national insurance credits because of their inability to work
• in receipt of UC and assessed as having Limited Capability for Work following a Work Capability Assessment
• in receipt of Severe Disablement Allowance
• entitled to Statutory Sick Pay
• pregnant within six weeks of the expected week of childbirth or had a baby within the last two weeks; or
• treated as incapable of work (as decided by the Secretary of State^{[footnote 61]} rather than a decision maker in the LA)

224. Receipt of disability benefits (such as Attendance Allowance, Industrial Injuries Disablement Benefit, Disability Living Allowance or Personal Independence Payment), registration as a blind person and the receipt of a disability premium in Income Support or Jobseeker’s Allowance, do not mean that the person is incapable of work.

Treated as temporarily not having Limited Capability for Work due to a temporary disqualification from IB or Employment and Support Allowance

225. Some claimants may not receive IB or ESA up to six weeks because they have contributed to their incapacity (such as failing to attend medical treatments). LAs should contact the claimant or DWP to establish the reason why Incapacity Benefit or Employment and Support Allowance is not being paid.

Responsible for a child or young person who lives in the same household

226. LAs should check the age of any dependants and confirm that Child Benefit is in payment to the claimant or a family member who lives in their household.

Availability of suitable alternative accommodation

227. Ordinarily, cheaper suitable alternative accommodation simply needs to exist. However, when restricting the rent of a vulnerable group, the LA should ensure that the claimant would be able to obtain the alternative accommodation, should they want to move there.

228. The LA does not need to specify a specific dwelling; it is enough to indicate a range of properties or a block of properties which are available.^{[footnote 62]}

229. Accommodation is not available if there is little or no possibility of the claimant being able to obtain it. For example, it may not be available if it could only be obtained by paying a large deposit which the claimant does not have.

Reasonable to expect claimant to move

230. When considering whether it is reasonable for the claimant to move, the LA should ensure the alternative accommodation is suitable (see Suitable Alternative Accommodation, paragraph 227).

231. The LA should also consider the effects of moving to the alternative accommodation on the:

• claimant’s prospects of holding on to their employment
• education of any child or young person living in the same household if such a move were to result in a change of school

232. If moving to the alternative accommodation would cause the claimant to lose their job, it would not be reasonable to expect them to move. Therefore, the alternative accommodation cannot be considered suitable for the claimant.

233. If the education of a child or young person living in the claimant’s household would be adversely affected by a change of school as a result of the move to alternative accommodation, the alternative accommodation cannot be considered suitable for the claimant.

Restricting the rent

234. If the LA finds cheaper suitable alternative accommodation, they may determine that it is appropriate to restrict the eligible rent. The LA can restrict the rent by any amount they deem appropriate, as long as the eligible rent does not fall below the cost of the identified suitable alternative accommodation elsewhere.^{[footnote 63]}

Unreasonable rent increases

235. Where landlords increase a claimant’s rent during a benefit award, the LA may restrict the eligible rent if this increase is unreasonable.^{[footnote 64]} For example, the rent increase might mean that other suitable alternative accommodation (even if the same size) is now cheaper than the accommodation in question.

236. Alternatively, the rent may have already been increased within the last 12 months, making another increase in rent so soon unreasonable or not within the scope of the terms of the tenancy agreement. Under these circumstances the eligible rent may be reduced by the full amount of the increase, unless it is deemed appropriate and reasonable to introduce a lower increase instead.

237. However, there may have been some improvements to the property, which the landlord may feel justifies the increase. It is for the LA to decide whether this is reasonable or not.

238. When a rent increase is submitted, the LA should request a new rent breakdown. The LA should consider the eligibility and reasonableness of the charges in line with the service charge section (see paragraph 166). The LA should also compare the new rent breakdown with the one gathered for the previous year to identify why the rent has increased and whether it is justifiable.

Protections from eligible rent restriction

239. A claimant is protected from having their eligible rent restricted if:

• A person in the claimant’s household has died in the last 12 months (where the rent restriction was not in place before their death). This protection applies for 12 months from the date of death^{[footnote 65]}
• The claimant could afford to pay the rent for the accommodation when they first agreed the tenancy and has not received HB in the 52 weeks before their current benefit award started. This protection applies for the first 13 weeks of their claim^{[footnote 66]}

Notifying the claimant

240. Where it is decided to restrict the eligible rent, LAs should notify the decision to the claimant as soon as possible, giving the reasons why benefit is being restricted. The LA should inform the claimant of their legal right to appeal and the start date when the restriction will take effect from.

241. It should be made clear to the claimant why the decision has been made to restrict their eligible rent, for example:

• the rent being deemed too high compared to suitable alternative accommodation in the same area;
• the accommodation being deemed too large for the claimant’s needs
• the rent and size of the accommodation combined

Rent Officer referrals

242. All exempt accommodation claims must be referred to the Rent Officer unless an exclusion applies.^{[footnote 67]}

243. Where the landlord is a registered housing association (registered with the Regulator of Social Housing, Welsh Government or Scottish Housing Regulator) and the LA decides the rent charged is not unreasonably high, a Rent Officer referral is not required. The LA must not take the amount of subsidy payable into consideration when considering if a rent is unreasonably high.

244. A referral to the Rent Officer must be made for subsidy purposes when the landlord is not a registered housing association, regardless of whether the size and rent charged are deemed reasonable.

245. The Rent Officer Determination (ROD) is used to determine the relevant subsidy amount for pre-1996 cases. Please see Section 7 of the Housing Benefit Subsidy Guidance Manual for more information on using RODs to calculate subsidy. RODs can also be referred to when considering an eligible rent restriction to determine a reasonable rent level (see paragraph 204).

Making Rent Officer referrals

246. When making a Rent Officer referral, the LA must include certain information:^{[footnote 68]}

• the address and the postcode of the dwelling which the claim relates to
• the date the tenancy began
• the length of the tenancy
• the total rent the claimant is required to pay (gross rent)
• whether ineligible charges for water, sewerage, meals or fuel are included
• the value of the ineligible support charges listed below^{[footnote 69]}
• the total rent after deducting the ineligible support charges (net rent)

247. The ineligible service charges which must be valued and deducted are those:

• for cleaning of rooms and windows, except for the cleaning of communal areas or window exteriors that cannot be cleaned by someone in the claimant’s household, provided the charge is not met by LA funding
• for the provision of an emergency alarm system
• in respect of medical expenses (including costs of treatment or counselling)
• for the provision of personal/nursing care
• for counselling or any other support services, regardless of who provides the service

248. Any other ineligible service charges should be identified but do not need to be valued or deducted from the gross rent before the referral is made.

249. It is essential that these charges are valued appropriately where these are included in the gross rent so that the net rent supplied to the Rent Officer is as accurate as possible.

250. If the charge is specified, LAs should deduct the whole amount of the charge unless they consider the charge to be unreasonably low for the service provided. In this case, LAs should substitute their own valuation of the cost of providing that service and deduct that amount.

251. Where the charge is not specified, the LA should apportion the charge out from the overall rent at an amount that is attributable to the provision of the service. LAs should have regard to the cost of comparable services when determining the amount to apportion.

252. LAs should refer to the Service charges section at paragraph 167 for further guidance on ineligible service charges and valuing them.

253. If the referral does not have the information required by legislation, or the Rent Officer requires clarification, they can request further information. The LA is required to then provide that information.^{[footnote 70]}

1. See Housing and Regeneration Act 2008, Section 69 ↩

2. See Housing Benefit Regulations 2006, Regulation 75H ↩

3. See Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006,Paragraph 4(10), Schedule 3 – the exempt accommodation definition also includes resettlement places for persons in receipt of a grant for these, as part of section 30 of the Jobseeker’s Act 1995. ↩

4. See Housing Benefit Regulations 2006, Regulation 75H (3) ↩

5. See Housing Benefit Regulations 2006, Regulation 75H (6) ↩

6. See Housing Benefit Regulations 2006, Regulation 75H (4) ↩

7. See Housing Benefit Regulations 2006, Regulation 75H (6) ↩

8. See Housing Benefit Regulations 2006, regulation 2(1) ↩

9. See Housing Associations Act 1985, Section 1 (1), Part 1 ↩

10. See Charities Act 2011, Schedule 3 ↩

11. Registration is distinct from any Authorisations which financial services providers may have. ↩

12. See Housing Benefit Regulations 2006, Regulation 86 (1) ↩

13. See Housing Benefit Regulations 2006, Regulation 75H ↩

14. See Housing Benefit Regulations 2006, Regulation 75H (4) ↩

15. See Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006, paragraph 4 (10), Schedule 3 ↩

16. See Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006, Paragraph 4 (10), Schedule 3 ↩

17. See [2010] AACR 2 (CH/150/2007) ↩

18. [2010] AACR 2 (CH/150/2007) ↩

19. See R(H) 2/07 or CH/423/2006 ↩

20. See [2009] EWHC 2221 (Admin) ↩

21. See [2009] UKUT 150 (AAC) ↩

22. See R(H) 4/09 and [2009] UKUT 109 (AAC) ↩

23. R(H) 4/09 ↩

24. See CH/1289/2007 ↩

25. See [2010] AACR 2 ↩

26. See R(H) 4/09 and [2010] AACR 2 ↩

27. See [2010] AACR 2 ↩

28. See Housing Benefit Regulations 2006, Paragraph 4, Part 1, Schedule 1 ↩

29. See Housing Benefit Regulations 2006, Paragraph 3, Part 1, Schedule 1 ↩

30. See Housing Benefit Regulations 2006, Paragraph 1, Part 1, Schedule 1 ↩

31. See Housing Benefit Regulations 2006, Regulation 12 (8) ↩

32. See Housing Benefit Regulations 2006, Paragraph 1 (g), Part 1, Schedule 1 ↩

33. See Housing Benefit Regulations 2006, Paragraph 8, Schedule 1 ↩

34. See Housing Benefit Regulations 2006, Paragraph 4, Part 1, Schedule 1 ↩

35. See Housing Benefit Regulations 2006, Paragraph 1 (a), Part 1, Schedule 1 ↩

36. See Housing Benefit Regulations 2006, Paragraph 1 (b), Part 1, Schedule 1 ↩

37. See Housing Benefit Regulations 2006, Paragraph 1 (c), Part 1, Schedule 1 ↩

38. See Housing Benefit Regulations 2006, Paragraph 1 (d), Part 1, Schedule 1 ↩

39. See Housing Benefit Regulations 2006, Paragraph 1 (e), Part 1, Schedule 1 ↩

40. See Housing Benefit Regulations 2006, Paragraph 1 (f), Part 1, Schedule 1 ↩

41. See Housing Benefit Regulations 2006, Paragraph 1 (g), Part 1, Schedule 1 ↩

42. See Housing Benefit Regulations 2006, Part 2, Schedule 1 ↩

43. See Housing Benefit Regulations 2006, Paragraph 2, Part 1, Schedule 1 ↩

44. See Housing Benefit Regulations 2006, Paragraph 4, Part 1, Schedule 1 ↩

45. See Housing Benefit Regulations 2006, Paragraph 1 (f), Part 1, Schedule 1 ↩

46. See Housing Benefit Regulations 2006, Paragraph 3 (4), Part 1, Schedule 1 ↩

47. See Housing Benefit Regulations 2006, Paragraph 3 (2), Part 1, Schedule 1 ↩

48. See Housing Benefit Regulations 2006, Paragraph 3 (1), Part 1, Schedule 1 ↩

49. See Housing Benefit Regulations 2006, Regulation 12 (8) ↩

50. See Housing Benefit Regulations 2006, Regulation B13 ↩

51. See Housing Benefit Regulations 2006, Regulation B13 (4) ↩

52. Housing Benefit Regulations 2006, Regulation 13C and 13D ↩

53. See Housing Benefit Regulations 2006, Regulation 13 ↩

54. See Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006, Paragraph 5, Schedule 3 ↩

55. 1994 S.L.T. 1212 ↩

56. See [2016] EWCA Civ 1211 ↩

57. 1994 S.L.T. 1212 and CH/3528-3560/2006 ↩

58. [2009] UKUT 162 (AAC) ↩

59. See Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006, Regulation 13 (4), Paragraph 5, Schedule 3 ↩

60. See R(H) 3/06 ↩

61. R v East Devon HBRB ex parte Gibson (1993) 25 HLR 387 and R(H) 2/05 ↩

62. R v Brent LBC ex parte Connery ↩

63. See Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006, Regulation 13ZA, Paragraph 5, Schedule 3 ↩

64. See Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006, Regulation 13 (5), Paragraph 5, Schedule 3 ↩

65. See Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006, Regulation 13 (7), Paragraph 5, Schedule 3 ↩

66. See Housing Benefit Regulations 2006, Schedule 2 ↩

67. Housing Benefit Regulations 2006, Regulation 114a and Schedule 1 ↩

68. See Housing Benefit Regulations 2006, Regulation 114A (3) (f) ↩

69. See Housing Benefit Regulations 2006, Regulation 114A (10) ↩