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Guidance

LA Welfare Direct 5/2026

Updated 14 May 2026

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 article at paragraphs 1 to 6 is for your attention.

Action

For information.

Crown Copyright 2026

Recipients may freely reproduce this bulletin.

Editorial  

As I prepare this editorial, the sun is shining and, as we enter May, we have two Bank Holiday weekends ahead and the promise of a glorious spring and summer. Let’s hope that continues. 

There are three key areas I would like to highlight in this editorial, namely Housing Benefit (HB) subsidy, temporary accommodation insight and good practice and the latest published HB speed of processing performance. 

We have provided a link to the recently published HB subsidy guidance manual for the financial year ending March 2026, which we know is a key document for local authorities (LAs) as they administer the complexities of HB. You can read the HB subsidy claims good practice guide, which is always worth revisiting.

Turning to good practice, my Performance Development Team (PDT) has recently worked collaboratively with LA practitioners to produce insight and good practice to support the administration of HB for those in temporary accommodation. I am very grateful to the LAs that contributed to this work and we are more than happy to speak with individual authorities about improving processes. Our email address is provided in paragraph 32. 

Finally, we have published the latest HB speed of processing statistics covering October 2025 to December 2025. Performance remains stable for both new claims and change of circumstances and I am very grateful to all LAs for their continued focus on delivering for claimants who rely on HB as a vital source of income. You will notice that the publication now differentiates between Working Age and Pension age performance, which my PDT is considering when discussing performance with LAs

That’s all from me for now but please do contact PDT if you need any help or support. We are here to help. 

Jonathan Bottomer   Head of the Performance Development Team, Local Authority Partnership, Engagement and Delivery division

Local authority funding for Department for Work and Pensions commissioned work delivered by IT software suppliers 

1. The Department for Work and Pensions (DWP) is working with project leads and local authority (LA) IT software suppliers to prepare funding for DWP commissioned work delivered on behalf of LAs. This includes: 

  • Housing Benefit (HB) IT software suppliers delivering DWP commissioned HB work 

  • Adult Social Care (ASC) IT software suppliers (Azeus and the Access Group) delivering DWP commissioned work on the Care Home Information Service (CHIS

2. Funding will be paid to LAs in May 2026. 

3. The Local Authority Data Sharing Team issued a letter on 27 April 2026 providing each LA with a detailed breakdown of the funding, including what the payment relates to and the specific payment date. This information was sent to each LA’s single inbox. LAs should ensure the details have been shared with their Finance Team. 

4. Once payments have been made, LA IT software suppliers will invoice the LA for the corresponding amounts. Finance Teams should ensure these invoices are paid in a timely manner. 

5. Thank you for your continued support with this work. 

6. For further information, please contact lawelfare.ladsdeliveryteam@dwp.gov.uk

Changes to HB Matching Service Rule HBUC105 

7. Following valuable feedback from several LAs, minor amendments have been made to rule HBUC105. This rule identifies HB claims where the associated Universal Credit (UC) award has become nil. 

8. The changes remove cases where the UC award is nil because of sanctions, deductions or earnings. As a reminder, LAs should ensure that the Local Council Tax Reduction (LCTR) interest remains in place whilst HB is in payment, even where there is no LCTR award. This is necessary to ensure continued receipt of UC notifications. 

9. If you have any queries, contact lawelfare.datamatching@dwp.gov.uk

HB subsidy guidance manual for the financial year ending March 2026 

10. The HB subsidy guidance manual for the financial year ending (FYE) March 2026 has been published on www.gov.uk. 

11. If you have any questions regarding the content of this guidance, email lawelfare.lapaymentsandsubsidy@dwp.gov.uk  

Update: Identifying Local Vulnerability and progress towards a Minimum Viable Product 

12. Since our last update in March’s LAWD3/2026 bulletin, we are still heavily engaged with DWP Digital teams to pass the next governance hurdle. Further meetings lie ahead to align with DWP’s governance and management framework. This will enable us to proceed along the Alpha phase towards building a Minimum Viable Product. 

13. The team continues its commitment to co-design principles; working closely and collaboratively with LAs in the Identifying Local Vulnerability (ILoV) Working Group to ensure we are delivering on LA data requirements. 

14. We will continue to provide updates as work progresses. In the meantime, if you have any queries about ILoV, please contact lawelfare.datasharingtransformation@dwp.gov.uk

Update: CHIS national rollout progress 

15. CHIS national rollout continues to progress. As advised in April’s LAWD4/2026, activities are fully underway, in collaboration with ASC IT software suppliers and LAs, to agree system release upgrades and CHIS go-live dates.  

16. To support this work, the Local Authority Partnership, Engagement and Delivery division held a workshop for ASC Directors on Monday 20 April 2026. 

17. At this workshop we outlined our expectations and explained how we will support LAs through the go-live process and the benefits of this important initiative. Thank you to all those who attended. For anyone unable to attend, a recording of the session is available in the ASC workspace on Glasscubes. 

18. If you have any questions about the workshop or require further information about CHIS, contact lawelfare.ladsdeliveryteam@dwp.gov.uk

Insight and good practice in the administration of HB for those in temporary accommodation  

19. The Performance Development Team (PDT) would like to share key insights and examples of good practice observed during a recent commission to review LA administration of HB for those in temporary accommodation. This work combined operational engagement with 16 LAs, supported by the analysis of HB new claims speed of processing temporary accommodation data for the FYE March 2025. 

20. We recognise the significant and sustained pressures faced by LAs in this area. Throughout the review, it was clear that LAs are working with commitment and professionalism to support people in temporary accommodation, often within challenging financial, housing and demand constraints. The examples that follow reflect practices that are already making a tangible difference and were shared with us in the spirit of collective learning.

Strengthening claim submission and processing 

21. LAs that invested in regular training and coaching for Housing Options staff consistently reported better quality HB application forms. Clear understanding of evidence requirements, accurate completion of forms and awareness of the downstream impact of missing information reduced avoidable delays and improved claimant outcomes. 

22. A strong shift towards digital-first claim submission was evident across most participating LAs. Digital routes reduced handling delays and loss of documentation, whilst assisted digital support ensured vulnerable residents were not excluded. Some LAs also made effective use of smart forms by tailoring questions to individual circumstances to simplify the claimant journey and improve data accuracy.

Organising work effectively 

23. Clear and consistent naming conventions for temporary accommodation cases enable teams to track, prioritise and monitor performance more effectively. This is reinforced where LAs make good use of system reporting tools to understand demand, identify pressure points and allocate resources dynamically. These approaches prove particularly valuable in preventing backlogs and managing peaks in demand.

Working in partnership 

24. Strong internal relationships between Revenues and Benefits and Housing Options teams were a defining feature of better performing authorities. Regular engagement, clear escalation routes and shared accountability have improved information flow and reduced delays caused by missing or unclear evidence. 

25. Several LAs also invest time in upskilling housing colleagues on HB rules and subsidy impacts, strengthening shared understanding and reducing avoidable errors. 

26. Externally, all LAs engage actively in forums and networks, including regional groups and multi‑agency partnerships. In some areas, these arrangements created faster referral routes and targeted support for vulnerable residents, demonstrating the value of collaboration beyond normal organisational boundaries.

Supporting claimants effectively 

27. Some authorities enhanced assurance and claimant experience by using dedicated members of staff to engage directly with residents, validate occupancy and resolve issues early. Others have developed strong referral pathways for vulnerable groups by working with charities and specialist partners to ensure tailored and timely support. 

Creativity in temporary accommodation supply 

28. The commission also highlighted innovative approaches to increasing temporary accommodation supply, including the use of non‑traditional accommodation, such as using repurposed shipping containers on land unsuitable for traditional development to respond quickly to demand whilst maintaining safety and compliance. This and other examples LAs shared reflects the adaptability of some LAs in exceptionally difficult housing markets.

Performance and accuracy 

29. Robust quality assurance arrangements, including targeted checks and enhanced oversight for new staff, help protect subsidy, reduce error and deliver more reliable outcomes for claimants. 

30. Our analysis of temporary accommodation HB new claims processing times showed that most LAs are operating within expected timeframes, including at scale. Where performance improved over time, this was typically driven by clear oversight and focused interventions. This demonstrates that improvement is achievable even in high caseload environments.

PDT reflections 

31. PDT would like to take this opportunity to thank all LAs who engaged openly with this work and shared their experiences. The insights gained reflect professionalism, care and determination to deliver a vital service for some of the most vulnerable in our communities. Whilst pressures remain significant, the evidence from this review shows that practical improvements in partnership working, system use and quality assurance can deliver timely and reliable outcomes. 

32. PDT remains committed to supporting continuous improvement. If you wish to feedback or would like further information about the content of this article, contact lawelfare.pdt@dwp.gov.uk

Publication of HB speed of processing statistics for October 2025 to December 2025  

33. The department published the HB speed of processing statistics and associated data for quarter 3 of the FYE March 2026 on Wednesday 29 April 2026. 

Some key points 

  • During the latest quarter there were 110,000 new claims processed. This comprises: 

  • 75,000 (71%) for Working Age claimants​ 

  • 31,000 (29%) for Pension age claimants​ 

  • Overall, this is a decrease of 3,700 (3%) since last quarter and an increase of 1,400 (1%) when compared to a year earlier.​ 

  • During the latest quarter there were 760,000 changes of circumstances for existing HB claims processed. This comprises:​ 

  • 440,000 (58%) for Working Age claimants​ 

  • 320,000 (42%) for Pension age claimants​ 

  • Overall, this is a decrease of 69,000 (8%) since last quarter and a decrease of 260,000 (26%) when compared to the same quarter a year earlier. 

* Do note: Volumes for Working Age and Pension age cases may not sum to the total volume for processed cases sometimes. This is caused by records that could not be matched to Searchlight to extract missing date of birth and sex of claimant records. For information on the matching process and reasons for unmatched records, see the HB speed of processing methodology note

New claims 

  • The average time taken to process an HB new claim during the latest quarter was  20 calendar days. This is three days lower than last quarter and the same as a year earlier and comprises an average time of:​ 

  • 19 days for Working Age claimants​ 

  • 23 days for Pension age claimants​ 

Change of circumstances 

  • The average number of days taken to process a change of circumstances to an existing HB claim during the latest quarter was 8 calendar days. This is one day lower than last quarter and one day lower than a year earlier and comprises an average time of:​ 

  • 8 days for Working Age claimants​ 

  • 9 days for Pension age claimants

Practitioners’ Operational Group and Local Authority Welfare Steering Group    

34. The last Practitioners’ Operational Group meeting took place on 16 April 2026. Agenda items included LA funding, bringing the administration together for HB and Pension Credit, Legacy HB Discovery, Move to UC, Fraud and Error, supported housing, the Crisis and Resilience Fund and Local Government Reorganisation. 

35. Both groups’ meetings are held bi-monthly (and alternately), so the next Local Authority Welfare Steering Group meeting is scheduled to take place on 21 May 2026. 

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

HB Decisions by the Upper Tribunal  

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

38. You can read a selection of decisions of the UT

39.  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 

40. DMA Leeds has not been made aware of any HB case that is awaiting decision by the UT

New Legislation 

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

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

What’s new on our HB pages on GOV.UK

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

Document Type Subject Link
LAWD bulletin Editorial
Reminder: Correct process for local authorities requesting Third Party Deductions from benefits
Reminder: Deadline for the submission of Housing Benefit pre-audit final claims and Discretionary Housing Payment end of year final claims 
Reminder: Statutory deadline for notifying details of a Reporting Accountant for the FYE March 2027 subsidy claim 
Update: New HB Subsidy Hub and reminder for IP address information by 8 April 2026 
Publication of refreshed HBAP modules for the FYE March 2026 
Update: Care Home Information Service and Adult Social Care Director workshop on 20 April 2026 
Update: DHPs and the Crisis and Resilience Fund Housing Payments 
Invitation to the next Data sharing and IT consultation and engagement forum 
Secondment opportunities in LA-PED division
Practitioners’ Operational Group and Local Authority Welfare Steering Group
Pension Credit applications and awards data: Updated February 2026 
HB Decisions by the Upper Tribunal
New Legislation 
What’s new on our HB pages
LAWD4/2026
Adjudication and Operations circular (A Circular) Introduction of the Border Security, Asylum and Immigration Act 2025 and the AT Court of Appeal judgement A3/2026
A circular Social Security consequential amendments (four subject areas) A4/2026
A circular Housing Benefit eligibility and the situation in the Middle East A5/2026
Subsidy (S) circular Rent Rebate Subsidy Limitation information for the financial year ending March 2027 (Wales only) S3/2026
S circular Housing Benefit Award Accuracy Initiative funding for the financial year ending March 2027 for local authorities participating     from 1 April 2026 S4/2026
Guidance Housing Benefit subsidy guidance manual 2025 to 2026 Housing Benefit subsidy guidance manual