Guidance

LA Welfare Direct 9/2025

Updated 10 September 2025

LAWD9/2025 4 September 2025

Contact

If you have queries about the: 

• technical content of this bulletin then contact details are given at the end of each article 

• general content and distribution of this bulletin, contact lawelfare.correspondence@dwp.gov.uk

Who should read

All Housing Benefit colleagues, County Councils and wider if appropriate.

County Councils: Please note the articles at paragraphs 24 to 28 are for your attention.

Crown Copyright 2025.

Recipients may freely reproduce this bulletin.

Action

For information.

Editorial

As the school holidays come to an end, let’s hope the warm and sunny weather holds out until at least the end of September. Though I’m sure, like mine, your garden could do with a little less sun and drop or two of rain! 

In this edition we cover many things data sharing related. If you are as old as me, or should I say experienced, you may recall the days before the Automated Transfer to Local Authority Systems; probably the most comprehensive step in us sharing data. Working collaboratively, central and local government have come a long way since then. Neither do we stand still as you will see from the articles in this edition. We continue to look to share more data, especially with local government. This can only be a good thing for customers and to drive efficiencies in both central and local government. 

On a different note, just a reminder that my team stands ready to support any local authority improve its Housing Benefit service. Please contact us at lawelfarepdt@dwp.gov.uk if you want an initial discussion on how we might be able to support you. 

Enjoy the remainder of the summer!  

Jonathan Bottomer – Lead for the Performance Development Team

Update: Decommissioning the Universal Credit (UC) Local Council Tax Reduction data feed V1 files

1. In July 2025, the Local Government Data Sharing Transformation team issued a questionnaire for all local authorities (LAs) to enable the Department for Work and Pensions (DWP) to gain feedback on the usefulness of Local Council Tax Reduction (LCTR) Version 2 (V2) files and identify any blockers to adoption of the V2 files prior to switching off access to Version 1 (V1) files at the end of September 2025. 

2. The questionnaire submission date for all LAs to respond was 11 August 2025 and the results were overwhelmingly positive. The majority of LAs have adopted the V2 files (as made available to all LAs by March 2025) and the vast majority of those LAs have provided highly positive feedback. 

3. The team is following up directly with those LAs that have indicated they will struggle to meet the V1 switch off date and the small minority of LAs who have still not submitted a response to the questionnaire. 

4. The team is very grateful to those who have completed the questionnaire and will continue to work with all LAs to ensure LCTR files are issued in line with individual LA’s circumstances. 

5. Any LA with continuing concerns should urgently email the team at lawelfare.datasharingtransformation@dwp.gov.uk.

Universal Credit Searchlight enhancements update: Phase 1 and Phase 2 implemented

6. We advised in LAWD6/2025 that we would implement Phase 1 UC enhancements to Searchlight on 4 June 2025 with: 

• the amount the benefit cap reduces the UC award by, if it has been applied   

• details, at an aggregated level, about deductions that are made from the UC award    

• details, at a household level, about any Limited Capability for Work (LCW), including if it has no monetary value or LCW and Work-Related Activity

7. Phase 1 was successfully implemented on 4 June 2025, as planned. 

8. Phase 2 was also successfully implemented on 31 July 2025 and additional enhancements for Searchlight users include: 

• the type of Transitional protection 

• children on the claim including details of any that are excluded from the two-child limit and the education status of those aged 16 and over 

• the full range of deductions (deductions are specific and no longer grouped) 

• details of any alternative payment arrangements and advance payments

9. The team received excellent feedback from our working group of LAs regarding Phase 1 and 2 enhancements, including from those who depend on the LCTR file for benefits processing. 

10. Future enhancements will focus on UC costs and income calculated at a household level, including details about rent and self-employed income. This adds complexity because Searchlight is based on individuals rather than households.  

11. We are working with delivery partners in DWP Digital to finalise the size and shape of Phase 3 (and whether a final Phase 4 will be required) but in the meantime, the Searchlight team is aiming to release Phase 3 in October 2025.  

12. We will continue to update on progress through the LAWD. In the meantime, the Local Government Data Sharing Transformation team would welcome feedback on the usefulness of the UC enhancements to Searchlight so far and can be contacted by writing to lawelfare.datasharingtransformation@dwp.gov.uk.

Update: Identifying Local Vulnerability

13. As advised in LAWD6/2025, we held a meeting in early June 2025 with LA working group members to share our findings from our discovery work and outline our plans for the Alpha phase. A further meeting was held in June 2025 to receive LA working group member reflections and feedback from the first meeting, and to set out our approach to identify, then analyse UC data item requirements.

14. We would like to take this opportunity to thank all LA working group members for attending and delivering valuable feedback at these informative meetings.

15. We are in the process of finalising a requirements document to send to DWP Digital team whilst, at the same time, speaking with them on the design of the solution. We remain committed to delivering a test of a Minimum Viable Product to a small number of LAs in the first half of 2026, subject to final approval of the design.

16. If you have any queries, contact lawelfare.datasharingtransformation@dwp.gov.uk.

Automated Transfer to Local Authority Systems Schema update to correct the Carer Support Payment award shown

17. We wrote to Scottish LAs in April 2025 regarding the Carer Support Payment Automated Transfer to Local Authority Systems (ATLAS) notifications not showing the customer’s correct award amount. At that time, we advised LAs that the earliest we could implement a fix was September 2025.

18. To address this, the ATLAS Schema has been updated to include a new field called ‘Total Entitlement’ that will show the actual amount of Carer Support Payment the customer is receiving. Do note, the new field applies to Carer Support Payment awards only.

19. Where the amount in the Total Entitlement field is less than the award amount because of an overlapping benefit, this will also be flagged in the Award Component field.

Implementation of the update

20. As DWP issues a single ATLAS Schema across Great Britain, all LA Housing Benefit (HB) software systems must be able to accept and process the new Schema.

21. So, DWP has commissioned LA IT software suppliers to update all LA system’s software to accommodate the changes. The update has been included in the latest software releases and the updated ATLAS Schema containing the new field will be implemented on Monday 22 September 2025.

22. In the meantime, accurate Carer Support Payment award details remain available through both Searchlight Beta and the Scottish Government Portal.

23. If you have any questions, contact lawelfare.ladsdeliveryteam@dwp.gov.uk.

Care Home Information Service: National rollout introductory workshops for LAs that use SystemC software

24. DWP, in collaboration with Adult Social Care (ASC) IT software suppliers, continue to progress the national rollout of the Care Homes Information Service (CHIS).

SystemC LA CHIS introductory workshops

25. To introduce the CHIS solution to SystemC LAs, we have scheduled Microsoft Teams workshops on the following dates:

• Wednesday 17 September 2025 at 10am
• Thursday 25 September 2025 at 11am

26. These sessions will include:

• a presentation by the LA Data Sharing Team, outlining the background for CHIS, anticipated benefits and current rollout status
• a planned visual demonstration on CHIS functionality within your LA ASC system
• a step by step walkthrough of the CHIS Application Programming Interface onboarding process for LAs
• an open question and answer session to address any queries/feedback

27. Invitations to the LA introductory workshops have been issued directly to LA ASC managers and other contacts previously notified to us. We strongly encourage all invited SystemC ASC LAs to attend and engage in these sessions. If you have not received the invitation and wish to be included in one of these sessions, please contact the email address given below.

28. If you have further questions, please contact LA Data Sharing Team at lawelfare.ladsdeliveryteam@dwp.gov.uk.

HB Debt Recovery statistics for April 2024 to March 2025

29. The HB Debt Recovery statistics were published on 3 September 2025.

30. The statistics show that for the financial year ending (FYE) March 2025:

• LAs identified a total of £429 million overpaid HB – £16 million less than the total amount identified in the FYE March 2024

• LAs recovered a total of £436 million overpaid HB – £3 million less than the total amount recovered in the FYE March 2024

• LAs wrote off a total of £82 million overpaid HB – £14 million more than the total amount written off in the FYE 2024

• at the start of Quarter 4 (January to March) of the FYE 2025, there was an outstanding total of £1.5 billion overpaid HB – £102 million less than the outstanding total at the start of Quarter 4 of FYE 2024

Practitioners’ Operational Group and Local Authority Welfare Steering Group   

31. The last Practitioners’ Operational Group meeting took place on 21 August 2025. Agenda items included the Crisis and Resilience Fund, supported housing, LA funding, bringing the administration together for HB and Pension Credit, Move to UC, HB fraud investigations and joint working, Prior-Year Overpayment Subsidy Regulation changes and Cost of Living.

32. Both groups’ meetings are held bi-monthly (and alternately), so the next Local Authority Welfare Steering Group meeting is scheduled to take place on 18 September 2025.

33. If you have any questions regarding topics raised at these consultation groups, email lawelfare.correspondence@dwp.gov.uk.

HB Decisions by the Upper Tribunal

34. Decision Making and Appeals (DMA) Leeds is not aware of any cases that have been decided by the Upper Tribunal (UT).

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

36. If you have any queries about cases before the UT Judges or courts, please contact us by email at quarryhouse.dmaleedscustomersupportservices@dwp.gov.uk.

HB cases awaiting decision by the UT

37. DMA Leeds have not been made aware of any HB case that is awaiting decision by the Upper Tribunal.

New Legislation

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

• 2025 No. 904 – The Data (Use and Access) Act 2025 (Commencement No. 1) Regulations 2025, made on 21 July 2025

• 2025 No. 950 – The Health and Social Care Information Standards (Procedure) Regulations 2025, made on 9 July 2025

• 2025 No. 969 – The Social Fund Winter Fuel Payment Regulations 2025, made on 22 August 2025

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

What’s new on our HB pages on www.gov.uk

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

LA Welfare Direct 8/2025

Content type: bulletin

Link: LAWD8/2025

Contents

Editorial

Reminder: Local authorities acting as Corporate Appointees can now access Searchlight for claimant information

Care Home Information Service: National rollout plans

Invitation to the next Data Sharing and IT consultation and engagement forum

Housing Benefit subsidy guidance manual for the financial year ending March 2025

Practitioners’ Operational Group and LA Welfare Steering Group

HB Decisions by the Upper Tribunal

New Legislation

What’s new on our HB pages on www.gov.uk

LA Welfare Direct 8/2025 lite

Content type: bulletin

Link: LAWD8/2025 lite

Contents

Supporting claimants who are homeless or have no fixed abode to move to Universal Credit

Publication of Housing benefit speed of processing statistics for January 2025 to March 2025

Secondment opportunities in the Local Authority Partnership, Engagement and Delivery division’s Performance Development Team