HB/CTB A47/99. Housing Benefit and Council Tax Benefit Circular Department of Social Security The Adelphi, 1-11 John Adam Street, London WC2N 6HT

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1 Housing Benefit and Council Tax Benefit Circular Department of Social Security The Adelphi, 1-11 John Adam Street, London WC2N 6HT ADJUDICATION AND OPERATIONS CIRCULAR HB/CTB A47/99 WHO SHOULD READ SUBJECT ACTION All Housing Benefit Managers, Chief Executives, Directors of Finance, Directors of Housing Service Charges In Supported Accommodation 1. To review all claims where the rent includes support charges. 2. To ensure that Housing Benefit meets those support charges which are eligible under the new regulations from April To reassess cases, where appropriate. THE TRANSITIONAL HOUSING BENEFIT SCHEME Introduction 4. To provide a contact point for the transitional HB scheme and, where appropriate, a social services and probation services contact point. This circular gives guidance on the regulations which introduce the transitional Housing Benefit scheme (the transitional scheme) from April These regulations specify those support charges which will be eligible for Housing Benefit (HB) under the transitional scheme. Background On 10 December 1998 Alistair Darling, Secretary of State for Social Security, published a consultation paper Supporting People: A new policy and funding framework for support services. This proposed that in the long-term, central Government expenditure on support services (including HB expenditure) would be transferred into a single budget - Supporting People to be corporately administered by housing and social services, together with probation services. To aid the transfer to the single budget, a transitional HB scheme would be introduced when the present interim scheme expires. The Government announced, on 31 March 1999, its intention to proceed with the proposed 1

2 future funding arrangements from April In direct response to concerns raised in the consultation exercise, the introduction of the transitional scheme was postponed until April The interim scheme the interim regulations and the compensation scheme have therefore be extended to tie in with this. The Interim Regulations The interim regulations were due to expire on 31 October These have been extended by the amending regulations which introduce the transitional scheme and will expire on the day before the regulations which introduce the transitional scheme (the transitional regulations) take effect ie, 31 March 2000 or 2 April 2000, as appropriate (see paragraph 1 below). The Compensation Scheme 6 local authorities (LAs) are now receiving payments under the compensation scheme. This will be extended to 31 March Payments under the compensation scheme will then cease. General You should note the number of this circular (HB/CTB A47/99) against the headings to circulars HB/CTB A37/97, A58/97, A3/98, A36/98 and A57/98. Any enquiries about this circular or about the interim scheme (the interim regulations and the compensation scheme) should be made to Carol Gardner on (e mail c.gardner@ms41.dss.gov.uk). Any enquiries about the Supporting People policy and funding framework for support services should be made to Melanie Hollinshead at the Department of the Environment, Transport and the Regions on (e mail melanie_hollinshead@detr.gsi.gov.uk). DSS: October 1999 Crown copyright 1999: This circular may be freely reproduced by recipients 2

3 THE TRANSITIONAL REGULATIONS Index Paragraph INTRODUCTION...1 SUPPORTED ACCOMMODATION...6 ELIGIBLE SUPPORT CHARGES Payments which are eligible for HB...7 Charges for General Counselling and Support...11 Charges for the Cleaning of Rooms and Windows...14 Charges for Emergency Alarm Systems...15 Excessive Service Charges...17 Other Eligible Service Charges...20 Ineligible Service Charges...23 Amount of Ineligible Service Charges...26 LOCAL AUTHORITY ACTION...28 RENT OFFICER CASES Rent Officer Referrals...30 Restriction on Rent Increases...36 PRIVATE SECTOR TENANTS Community Care Assessments...39 Payment of arrears when valid cca obtained...45 ACTION NEEDED TO AVOID OVERPAYMENTS/DOUBLE COUNTING General...46 Calculation of maximum rent where the rent officer has determined a not significantly high, significantly high, exceptionally high or size-related rent...49 Charges for the cleaning of rooms and windows not eligible under the transitional scheme

4 INDICATIVE RENT LEVELS...55 CALCULATING SUBSIDY...57 INFORMATION GATHERING General...60 Information you need from the claimant...61 Information you need to give to the DSS...64 TRAINING AND PUBLICITY...67 Annexes Annex A DRAWING THE LINE BETWEEN RENT AND SUPPORT Housing management and support...1 Attributing staff costs...6 Annex B Annex C Annex D Annex E SUPPORT CHARGES ELIGIBLE UNDER THE TRANSITIONAL SCHEME -- AIDE MEMOIRE AVOIDING OVERPAYMENTS OR DOUBLE COUNTING EXAMPLES SCHEDULE OF RENT OFFICER DETERMINATIONS SUPPLEMENTARY CLAIM FORM 4

5 THE TRANSITIONAL REGULATIONS INTRODUCTION 1. The regulations to introduce the transitional HB scheme The Housing Benefit (General) Amendment (No.3) Regulations 1999 (S.I. 1999/2734) became law on 5 October They take effect from: * 3 April 2000 where rent is paid weekly or in weekly multiples; * 1 April 2000 in any other case, except for amendments to the rent officer referral procedures, which take effect from 3 April 2000 in all cases. 2. The transitional regulations will remain in force until 6 April 2003 or 31 March 2003, depending on whether rent is paid weekly or otherwise. 3. The main purposes of the transitional scheme are to maintain stability in the sector, expand coverage, and collect information to inform the long-term Supporting People funding arrangements. In particular, the scheme will identify HB expenditure on support charges in your area to ensure that this element of the Supporting People budget is adequately funded. It is therefore imperative that you correctly identify those support charges which are eligible under the transitional scheme and which may, from April 2003, transfer to the Supporting People budget. Failure to correctly identify support charges could mean inadequate funds being transferred to the Supporting People budget for your area. 4. In particular, the transitional regulations: * amend the definition of supported accommodation to bring in new and replacement provision and certain private sector provision; * introduce a new schedule Schedule 1B which specifies those support charges which will be eligible under the transitional scheme where the claimant is living in supported accommodation, ie: - charges for general counselling and support; - charges for the cleaning of rooms and windows; and - charges for an emergency alarm system; and * amend the rent officer referral arrangements. 5. Income Support, income-based Jobseekers Allowance and Child Support rely on the HB definition of service charges to decide whether those charges are eligible as a housing cost. So the changes to the treatment of support charges under the transitional scheme will affect the treatment of housing costs under these provisions, too. 5

6 SUPPORTED ACCOMMODATION 6. Accommodation is supported accommodation for the purposes of the transitional scheme - (i) where the landlord is: * assisted under section 30 of the Jobseekers Act 1995 (grants for resettlement places); or * a housing authority (including Scottish Homes), non-metropolitan county council, registered social landlord (registered housing association in Scotland), registered charity or voluntary organisation (including non-registered housing association), where that landlord (or someone acting on that landlord s behalf) also provides the claimant with care, support or supervision (1) ; or (ii) where it is occupied by a private sector tenant who holds a valid community care assessment (cca) (2). ELIGIBLE SUPPORT CHARGES Payments which are eligible for HB [Note (1) : when deciding whether care, support or supervision is provided, those words should be given their normal, everyday, meaning. Support would be provided where, for example, the landlord arranged for the cleaning of rooms and windows because the claimant was disabled, or had installed an emergency alarm system to enable a frail, elderly claimant to summon help. It would also apply whether the accommodation was one of a number of units where support was provided, including sheltered accommodation, or where floating support was provided to an individual claimant in what would otherwise be mainstream accommodation.] [Note (2) : A person who is aged 18 or over holds a valid cca where social services have confirmed that: * under the community care provisions (ie, under section 47 of the National Health Service and Community Care Act 1990 or section 12A of the Social Work (Scotland) Act 1968) the tenant has a need for any of the support services eligible under Schedule 1B (see paragraph 11 et seq below); and * the landlord (or someone acting on his behalf) is capable of providing that support to the tenant. See paragraph 39 et seq for more information.] 7. Regulation 10 of the HB regulations lists those payments which are eligible for HB. These include payments of, or by way of, service charges where payment is a condition on which the right to occupy the dwelling depends (regulation 10(1)(e)). Service charges are defined in regulation 10(7) as periodical payments for services, whether or not under the same agreement... or whether or not such a charge is... separately identified.... Services are services performed or facilities (including the use of furniture) provided for, or rights made available to, the occupier of the dwelling. 6

7 8. As explained in paragraph 24 of circular HB/CTB A37/97, the crux is whether the charge relates to the management and maintenance of the property in which case it may be eligible as rent, or whether it relates to a service to the tenant (1). (See Annex A for further guidance.) [Note: (1) You are reminded that, as with all service charges, these are only eligible for HB where they are payable periodically as a condition of occupying the dwelling.] 9. For the purposes of this circular, rent means those payments which will provisionally remain eligible for HB after April 2003, including any accommodation-related service charges but excluding any support charges, whether eligible or ineligible for HB under the transitional scheme prior to April The following support charges are eligible under the transitional scheme where the claimant is living in supported accommodation: * charges for general counselling and support (see paragraphs 11 to 13 below); * charges for the cleaning of rooms and windows (see paragraph 14 below); and * charges for an emergency alarm system (see paragraphs 15 and 16 below). Charges for General Counselling and Support (GC&S) 11. The following charges in respect of time spent in the provision of general counselling or of any other support services are eligible under paragraph 1(f) of Schedule 1 and paragraphs 2(a) to (d) of Schedule 1B to the HB regulations where these are provided to a person living in supported accommodation by, or on behalf of, their landlord: Paragraph 2(a) Charges which assist the claimant with maintaining the security of the dwelling: for example, helping ensure the security of the home (eg by reminding the claimant to lock up) or controlling access (2) ; [Note (2) : Controlling access is one of a number of concierge type services which relate to the provision of adequate accommodation. It may fall to be treated as eligible as part of the rent, depending on the circumstances of the individual case. The cost can be treated as a support charge where the service is provided to address the specific needs of a particular group of tenants (e.g. in a women s refuge).] Paragraph 2(b) Charges which assist the claimant with maintaining the safety of the dwelling (including making arrangements for the checking of the claimant s own appliances where these could pose a safety hazard): for example, arranging for builders, plumbers, electricians etc; arranging adaptations to cope with disability; arranging for the servicing of a claimant s appliances where they could pose a safety risk (3) ; ensuring that the claimant is able to use appliances (such as a cooker and iron) safely; [Note (3) : the cost of, for example, servicing/repairing the claimant s own appliances, is not eligible for 7

8 HB.] Paragraph 2(c) Charges directed at helping the claimant comply with those terms of their tenancy agreement concerned with: (i) nuisance: for example, dealing with disputes with neighbours; (ii) rental liability: for example, assistance with budgeting/debt counselling; assistance with claiming benefits; (iii) maintaining the interior of the dwelling in an appropriate condition: for example, helping with minor repairs (eg changing light bulbs, unblocking sinks etc (1) ); lifeskills training in areas such as kitchen hygiene including advice on, or supervision of, food preparation or food storage to preserve the condition of kitchen units and other appliances; [Note (1): Minor repairs may be classified, instead, as an ordinary accommodation-related service or, if not the tenant s responsibility, as part of the landlord s costs in running and maintaining the property depending on the circumstances of the individual case.] (iv) the period for which the tenancy is granted: for example, those resettlement activities necessary to enable the claimant to relinquish the tenancy and to move on to accommodation where less support is required, including time spent in contact with other individuals or professional or other bodies with an interest in the claimant s welfare: for example, social service departments, probation services or relatives. Paragraph 2(d) Charges for any other services not already specified under sub-paragraphs (a) to (c) above where: * the dwelling is one of a group of dwellings which the landlord normally lets to people in need of GC&S; and * the support is provided: - by a resident warden (2) ; or - by a non-resident warden with a system (3) for calling him; and * the warden provides those services wholly or mainly for those tenants: for example, help with shopping/errand running; chatting (ie, social chatting not connected with other services); arranging social events; and other good neighbour tasks (eg, welfare checks). [Note (2) : warden includes a scheme manager, resident manager or sheltered housing officer/manager/co-ordinator.] 8

9 [Note (3) : system includes a scheme-based alarm, a centrally-based alarm or a combination of these and could be triggered by telephone, push-button or similar device.] 12. The table at Annex B summarises those charges for GC&S which are eligible under the transitional regulations. 13. You are reminded that only charges in respect of time spent in providing general counselling or other support are eligible under the transitional regulations. This can include costs which relate solely to the provision of that support (see Annex A below). However, charges cannot include any other costs. For example, time spent in helping the claimant replace light bulbs will be eligible; the cost of the light bulbs will not. Charges for the Cleaning of Rooms and Windows 14. Where the claimant is in supported accommodation, any charges for the cleaning of the claimant s rooms and windows where neither the claimant nor any member of the household is able to clean these themselves will be eligible under the transitional scheme (paragraph 1(a)(iv)(cc) of Schedule 1 and paragraph 3 of Schedule 1B to the HB regulations). This includes the cleaning of the exterior of windows where this would otherwise be eligible under paragraph 1(a)(iv)(aa) of Schedule 1 (see paragraph 21 below.) Charges for the cleaning of rooms and windows in communal areas under paragraph 1(a)(iv)(bb) of Schedule 1 will remain eligible for HB as part of the rent in the normal way see paragraph 22 below. Charges for Emergency Alarm Systems 15. Provided the claimant is in supported accommodation, charges for an emergency alarm system (1) will also be eligible under the transitional scheme from April 2000 (paragraph 1(c) of Schedule 1 and paragraph 4 of Schedule 1B to the HB regulations). But in practice, these charges will remain eligible for HB in the same way as now (unless the claimant lives in private sector accommodation and does not hold a valid cca - see paragraph 6 above), ie: * the accommodation must be occupied by elderly, sick or disabled people and such accommodation, apart from the alarm system, is either - specifically designed or adapted for such persons; or - otherwise particularly suitable for them, having regard to its size, heating system, and other major features or facilities. 16. Paragraph A4.75 of the HB Guidance Manual advises that when considering whether accommodation is otherwise particularly suitable you should consider features such as the number of bedrooms, overall floorspace, number of heated rooms and location, including proximity to health and social services facilities and its accessibility. [Note (1) : you are reminded that charges are only payable in respect of the provision of an emergency alarm system. This would include charges in respect of the maintenance of the system itself. However, it would not cover charges incurred once the alarm was triggered and referred for further action as appropriate unless, for example, that further action was in the form of support which was itself eligible under the transitional scheme.] 9

10 Excessive Service Charges 17. Where you consider the amount of an eligible service charge to be excessive, having regard to the cost of comparable services, you should deduct the excess amount as this will be ineligible for HB in the same way as now. 18. You are reminded that the main purpose of the transitional scheme is to identify those support charges which, from April 2003, may be transferred into the Supporting People fund. Providers may therefore reasonably be expected to re-examine their costs in the light of this, and re-present the breakdown of their rents. Any judgement about the reasonableness of support charges should therefore be based on the criteria in paragraph 19 below. 19. In deciding whether a charge is excessive, you should take several factors into account: Example 1 * the needs of the tenant: the charge for the support service should be reasonable with regard to the tenant s needs. As the need for support will vary, the charge for different types of support will also vary accordingly. For example, the cost of providing support to enable long-term rough sleepers to live successfully in their accommodation may be higher than the cost of similar services for another group of homeless tenants. * high charges may not be excessive: the fact that a charge for a support service is high does not mean that it is excessive. For example, charges for support services to tenants in women s refuges, particularly in respect of maintaining the security of the dwelling, may be higher than charges for support services typically provided by a warden to elderly tenants in sheltered housing. * comparable charges: many providers are only partially dependent on charges for rent and support and may also receive funding from other statutory or charitable sources. It is therefore not sufficient to compare one charge with another; instead you should consider whether the overall cost of that service in that particular scheme is excessive when compared with the overall cost of similar services in similar schemes. You should also remember that the unit cost of providing support services may be higher in small scale schemes than in those with a large number of supported accommodation units. 2 supported accommodation providers, both voluntary organisations, both providing tenants with similar needs with the same level of GC&S at a gross weekly cost of 60. The first provider is able to meet some of this cost from alternative sources of income and so charges each tenant 15 a week towards this as part of the rent. The second provider is unable to obtain alternative funding for this particular service and therefore charges the full amount. 10

11 Example 2 As the overall cost is not excessive both charges are reasonable. 2 supported accommodation providers, both voluntary organisations, both providing tenants with similar needs with the same levels of support. The first provider provides GC&S to 100 tenants, and charges 30 per week to each tenant for the service provided. The second provider provides the same GC&S to 10 tenants, and charges 40 per week to each tenant for the service provided. Both charges are reasonable if the overall cost is not excessive and the difference in charge is attributable to the different numbers of tenants in each scheme. Other Eligible Service Charges 20. Those support charges which, from April 2000, will only be eligible for HB under the transitional scheme are covered in paragraphs 11 to 16 above. Other accommodation-related service charges will remain eligible for HB on the introduction of the transitional scheme in the same way as now (and, subject to any further changes, on the introduction of Supporting People from April 2003). You are, however, reminded that in deciding whether the service is connected with the provision of adequate accommodation, this provision is to be interpreted narrowly (see paragraph 5 of circular HB/CTB A37/97). 21. Help with the cleaning of exterior windows will remain eligible for HB as part of the rent where: * the claimant is not in supported accommodation; and * neither the claimant nor any member of the household is able to clean these themselves (see paragraph 1(a)(iv)(aa) of Schedule 1 to the HB regulations). 22. Help with the cleaning of rooms and windows in communal areas will also remain eligible for HB as an accommodation-related service charge (see paragraph 1(a)(iv)(bb) of Schedule 1 to the HB regulations). The definition of communal areas remains unchanged, ie, areas... of common access... and rooms of common use in sheltered accommodation. Ineligible Service Charges 23. Schedule 1 to the HB regulations lists those service charges which are ineligible for HB. This includes charges for personal care which are excluded under sub-paragraphs 1(d) and (e), ie: * medical expenses (including the cost of treatment or counselling relating to mental disorder, mental handicap, physical disablement or past or present alcohol or drug dependence); and * the provision of nursing care or personal care (including assistance at 11

12 mealtimes or with personal appearance or hygiene). 24. You are also reminded that only charges for general counselling and support are eligible for HB. As explained in earlier guidance, this implies that the support would vary on a day to day basis according to the claimant s needs with no particular qualification required to provide this. Any counselling, including group therapy sessions, aimed towards a specific need would be unlikely to be general. 25. Examples of those services for personal care which are ineligible for HB are given in paragraph 4 of Annex B. Amount of Ineligible Service Charges 26. The contractual rent may or may not include an element for ineligible service charges. If an ineligible service charge is included but is not separately identified, you should decide the amount of that charge, having regard to the cost of comparable services. That amount will continue to remain ineligible for HB, as will any additional charges levied to take account of outstanding arrears or other unpaid payment or charge owed by the claimant in respect of the present, or any previous, dwelling. 27. Where an ineligible service charge is separately identified but it appears that the amount may be unreasonably low having regard to the service provided, then you should seek further information on which to base your decision, in the normal way, before making a judgement. If you can justify a decision to substitute a higher amount, the substituted amount will be ineligible for HB, as now. LOCAL AUTHORITY ACTION 28. A change in the law is a change of circumstances for HB purposes (HB regulation 68(3)). You should therefore make arrangements to review claims to ensure that support charges are calculated under the transitional scheme (but see also paragraph 63 below regarding obtaining information on a scheme by scheme basis.) Any changes will take effect from 1/3 April 2000 as appropriate. Part II of Circular HB/CTB A15/99 advised you to ensure that you could identify these cases. 29. You should also ensure that you can continue to identify any cases where, from April 2000, support charges are calculated under the transitional scheme, and are reminded that you will be required to reassess claims from April 2003 to remove help with support charges on the introduction of Supporting People. RENT OFFICER CASES Rent Officer Referrals 30. Those cases which are presently exempt from the rent officer referral arrangements will remain exempt on the introduction of the transitional scheme. 31. If not exempt from rent officer referral, supported accommodation will remain exempt 12

13 from the local reference rent (LRR) arrangements introduced from 2 January 1996 (and from the single room rent (SRR) provisions introduced from 6 October 1997) where it falls within the definition of exempt accommodation (see paragraph 7 of Annex A to circular HB/CTB A3/98). These exempt old scheme cases are calculated under regulations 10 and 11 as in force on 1 January However, the definition of exempt accommodation has also been amended from 1/3 April 2000 to make clear that this, too, includes any accommodation provided by a non-metropolitan county council, housing association, registered charity or voluntary organisation where that landlord (or someone acting on that landlord s behalf) also provides the claimant with care, support or supervision (1). [Note (1) : see Note (1) in paragraph 6 above.] 32. In all cases where rent officer referral remains appropriate, from 3 April 2000 you should refer the rent net of all support charges, including any support charges eligible under the transitional scheme. Example: Weekly charge of This breaks down as: for personal care (ineligible) for GC&S (eligible) 5.00 for cleaning of room and windows (eligible) 1.60 for emergency alarm (eligible) for accommodation (eligible) Amount referred to rent officer is ( ) 33. The Rent Officers Orders will similarly be amended from 3 April Where the application for a determination is made on or after 3 April 2000, the rent officer will assume that the rent payable is the amount that would have been payable had those support services not been provided (whether those services are eligible or ineligible for HB). 34. When applying for a determination on or after 3 April 2000, you should therefore advise the rent officer of any support charges included in the rent (both eligible and ineligible charges), and the amount(s) that you have deducted from the gross rent in respect of these. 35. You should also continue to advise the rent officer of other services included in the rent, including those for the cleaning of rooms and windows in communal areas, or for the exterior of windows where the claimant is not in supported accommodation. These should continue to be broken down into those which are eligible and those which are ineligible for HB. Restriction on Rent Increases 36. Those cases which, although subject to rent officer referral, are exempt from the January 1996 changes (for whatever reason) will remain exempt under the transitional scheme. However, in these cases you have continued to have the discretion to restrict the eligible rent where this has increased during the benefit period if you consider that the increase is 13

14 unreasonably high or that it is unreasonable because this is the second increase within 12 months (see paragraph et seq of the HB Guidance Manual). You can restrict the rent by whatever amount you consider unreasonable, up to the full amount of the increase. 37. From 1/3 April 2000, as appropriate, you will be required to restrict the rent in these cases where you consider the increase is unreasonable. However, any restriction will only apply to increases in the rent net of support charges eligible under the transitional scheme. Any increases in support charges will continue to be eligible for HB to the extent that you consider the increase to be reasonable (see also paragraph 17 et seq above). This is because only reasonable service charges are eligible for HB. (Where rent is not subject to rent officer referral, you can continue to consider restricting the rent under HB regulation 10(6B) where you consider any increase to be unreasonably high (see paragraph 65 et seq of circular HB/CTB A3/98). 38. You should note that the rents of registered social landlords may change as a result of changes required to reschedule rents to incorporate sinking fund provisions. Rents may also change where landlords have re-examined their rent breakdowns as in paragraph 18 above and as a consequence have moved from a national, to a local, rent setting policy to better reflect the support charges included in the rent in the lead-up to April Whatever the reason for the rent increase, you are reminded that where the landlord is a registered social landlord (or registered housing association), these cases are exempt from rent officer referral unless you consider the rent payable for that dwelling is unreasonably high when compared with the rent payable for suitable alternative accommodation (or the accommodation is over large). PRIVATE SECTOR TENANTS Community Care Assessments 39. From 1/3 April 2000, support charges which are payable periodically as a condition of occupying the dwelling will only be eligible for HB where the tenant is living in supported accommodation. Private sector tenants will require a valid community care assessment (cca) to meet this definition - see paragraph 6 (ii) above. 40. A private sector tenant, including those in contact with probation services, will hold a valid cca where social services have carried out an assessment under the community care provisions and have confirmed: * that the claimant has a need for any of the support services eligible under Schedule 1B; and * that the landlord (or someone on his behalf) is capable of providing that support. 41. Unless exempt from the 1996 changes (for example, if continuously in receipt of HB (apart from a break of 4 weeks or less) and living in the accommodation prior to 2 January 1996), private sector tenants living in supported accommodation will remain subject to the maximum rent (including, where appropriate, the LRR or SRR). However, where there is a valid cca the maximum rent will be increased to include any reasonable support charges eligible under the transitional scheme. 14

15 42. A cca can only apply where a person is aged 18 or over. Where a person is aged under 18, help is available, instead, from children s services under the Children Act (or the Children (Scotland) Act) provisions. Where a person aged under 18 is said to be in need of support you should, where appropriate, advise them to contact social services. If they are within three months of their 18 th birthday, and payments from children s services are due to cease when they reach 18, they should be advised to contact social services to request a cca. 43. Where the rent of a private sector tenant includes support charges which could be eligible under the transitional scheme, you will need to check whether the claimant holds a valid cca. If so, the tenant will be eligible for help with support charges under the transitional scheme in the normal way. If not and the tenant is aged 18 or over, they will need to contact social services to apply for a cca. We will issue further guidance shortly about this. 44. Where a private sector tenant is aged under 18, or is aged 18 or over but does not hold a valid cca, you will need to review the case, where appropriate, from 1/3 April 2000 to remove any support charges which would otherwise only be eligible under the transitional scheme. Payment of arrears when valid cca obtained 45. Where a valid cca is made at a later date, you should consider whether arrears can be paid. Arrears are payable where the claimant has incurred a continuous liability up to the date the cca is made to meet any support charges eligible under Schedule 1B. If so (but subject to the normal rules, including the 52 week arrears restriction), payments can be made: (i) (ii) (iii) where a new claim (ie, other than a renewal claim) is made on or after 1/3 April 2000, as appropriate, and where a claim for backdating is made, from the date the claim is treated as made (ie, the earlier date that the liability commenced - unless you decide the good cause provisions for backdating are not satisfied, for example, where the claimant unreasonably contributed to any delay in making the cca); where the claimant was already on HB on 1/3 April 2000, as appropriate, back to the start of the transitional scheme or, where the liability for support charges commenced at a later date, from the date that the amount of HB payable would have increased in respect of those charges had a valid cca existed at the time the liability arose; or where, on making a claim, the claimant was not entitled to HB, but would have been if the cca had been made earlier, back to the date that they would have been entitled had the cca been made at the time the claim was made. ACTION NEEDED TO AVOID OVERPAYMENTS/DOUBLE COUNTING General 46. In addition to reviewing private sector cases, where appropriate, as in paragraph 44 above, you will also need to remove any other support charges which have been included in 15

16 the rent prior to 1/3 April 2000, to avoid double counting. 47. Where a tenant is entitled to HB before 1/3 April 2000, this may include an amount for the following support charges: (i) for an emergency alarm system (previously eligible under Schedule 1, paragraph 1(c)); (ii) (iii) (iv) (v) for the cleaning of rooms and windows where neither the claimant nor anyone in their household is able to undertake the task themselves (previously eligible under Schedule 1, paragraph 1(a)(iv)); for charges for GC&S previously eligible under Schedule 1, paragraph 1(f)(iii) (where living in existing supported accommodation eligible under the interim regulations); for accommodation-related charges for GC&S, including an accommodationrelated support services valuation provided by the rent officer where the claimant lives in existing supported accommodation (previously eligible under Schedule 1, paragraph 1(f)(i)); for personal GC&S previously eligible under Schedule 1, paragraph 1(f)(ii) (ie, where the landlord or an employee spends the majority of time in providing other, eligible, services see paragraph 24B of circular HB/CTB A37/97), or for an amount in respect of support charges included: (vi) (vii) under the 50% top-up to the LRR (where the tenant was in the accommodation prior to 6 October 1997 see paragraph 11 et seq of circular HB/CTB A3/98); or under the exceptional hardship (1) provisions (see paragraph 19 et seq of circular HB/CTB A3/98). [Note (1) : from 1/3 April 2000, support charges are only eligible under the transitional scheme. From this date, you will not be able to meet any support charges under the exceptional hardship provisions. Where the claimant is not in supported accommodation, only charges for the cleaning of rooms and windows in communal areas, and for the cleaning of the exterior of windows, (see paragraphs 21 and 22 above) will remain eligible for HB.] 48. To avoid double counting (or to remove support charges where the claimant is not living in supported accommodation ) you should, where appropriate, deduct the amount of any support charges which have been included: (i) (ii) as part of the rent officer s determination of a significantly high or sizerelated rent where the application for a determination was made before 3 April 2000; under the exceptional hardship provisions before 1/3 April 2000; or 16

17 (iii) as part of the eligible rent before 1/3 April 2000, including those charges which form part of the maximum rent where the claimant is entitled to the 50% topup to the LRR as in paragraph 47(vi) above, or where the maximum rent is based on the reckonable rent (see paragraphs 48 and 49 of circular HB/CTB A7/96), before adding on the amount of any support charges eligible under the transitional scheme. Example Private sector rent is restricted to RO s determination of a relevant rent Contractual rent = 80 Charges for personal GC&S (ineligible under 50% rule) = 11 Relevant rent used to calculate HB = 59 (including 5 eligible charges for accommodation-related GC&S, but no other service charges) Rent net of eligible support charges = 54 Rent officer s determination of LRR = 60 Maximum rent prior to 1/3 April 2000 is restricted to relevant rent (1) of 59 Eligible support charges of 16 under the transitional scheme Maximum rent (2) from 1/3 April 2000 is 70 (relevant rent of 59 less 5 support charges plus support charges of 16 eligible under the transitional scheme) [Note (1) : relevant rent is the rent officer s determination of a significantly high, exceptionally high or size-related rent, whichever is the lower, (less any ineligible service charges other than for fuel, meals or water, where appropriate).] [Note (2) : maximum rent will reduce to 54 where the claimant does not have a valid cca.] Further examples are given in Annex C. Calculation of maximum rent where the rent officer has determined a not significantly high, significantly high, exceptionally high or size-related rent 49. Where the rent officer has determined a significantly high, exceptionally high or size-related rent and, in other than an exceptionally high rent, this includes any support charges under paragraph 47(i) and (ii) or (iv) and (v) above, those support charges should be deducted. The maximum rent will be based on that rent net of any support charges (the net rent), where appropriate, or on the LRR, whichever is the lower. You should then add on any support charges under the transitional scheme. Where the claimant is entitled to the 50% topup to the LRR, the 50% should be calculated, where appropriate, on the difference between the LRR and that net rent (see Annex C, example 3). 50. Where the rent officer has not determined a significantly high, exceptionally high or size-related rent, the maximum rent will be based on either the contractual rent, less any ineligible service charges other than for fuel, meals or water or the LRR plus any support 17

18 charges eligible under the transitional scheme, whichever is the lower. Where the claimant is entitled to the 50% top-up to the LRR, that 50% will be calculated on the difference between those two amounts (see Annex C, example 4). 51. Where a rent officer has determined, and is required to notify you of, a LRR, the maximum rent cannot exceed twice the LRR. Where support charges are eligible under the transitional scheme, the maximum rent cannot exceed twice the LRR plus the amount of those eligible support charges. 52. Where support charges have been included in the rent officer s determination prior to 3 April 2000, you are reminded that rent officers will have noted the amount of the following charges in the remarks box of the determination: * from 18 August 1997, the amount of any charges for accommodation-related GC&S where the claimant lives in existing supported accommodation and you have asked for an accommodation-related support services valuation (see paragraph 17 et seq of circular HB/CTB A36/98); * from 4 January 1999, the amount of all other charges for GC&S included in the determination of a not significantly high, significantly high or sizerelated rent (see Part II of circular HB/CTB A57/98); * from 7 June 1999, the amount of any charges for the cleaning of rooms and windows (other than in communal areas) or for an emergency alarm system included in the determination of a not significantly high, significantly high or size-related rent (see Part III of circular HB/CTB A15/99). 53. Where the maximum rent is not restricted to the LRR or SRR, and it appears, from the information held, that the rent officer s determination of a significantly high or size-related rent could include an amount for eligible support charges but that amount is not shown in the remarks box of the determination, you should send a schedule to the Chief Rent Officer in Wales, the Senior Rent Officer in Scotland, and the Area Manager (formerly the Chief Rent Officer) in England, to request this information. You should also send the schedule where, although exempt from the January 1996 changes, it similarly appears that the rent officer s determination of a not significantly high, significantly high or size-related rent could include an amount for eligible support charges but that amount is not known, as you will need to deduct this amount from the rent officer s determination for subsidy purposes, again to avoid double counting (see Annex C, examples 6 and 7.) A draft schedule, which should only be amended in consultation with your local rent officer/area Manager, is attached as Annex D. Charges for the cleaning of rooms and windows not eligible under the transitional scheme 54. Where the rent includes a charge for the cleaning of rooms and windows in communal areas, or for the cleaning of the exterior of windows where the claimant is not in supported accommodation, you are reminded that these will remain eligible for HB in the normal way. You will therefore need to delete the reference to (1) or (2)* in the cleaning of rooms and windows column of the schedule at Annex D to show either: 18

19 (1) that the claimant is in supported accommodation, in which case you need to know the amount of charges for the cleaning of rooms and windows other than for the cleaning of communal areas; or (2) that the claimant is not in supported accommodation, in which case you need to know the amount of any charges for the cleaning of rooms and windows other than for the cleaning of communal areas or the exterior of windows. INDICATIVE RENT LEVELS 55. As you know, you are required to make a payment on account within 14 days of receiving all the necessary information on the claim. Where the rent officer s determination has not been received, you will need to decide the amount you should pay on account, having regard to the available information regarding the claimant s circumstances and to the indicative rent level provided by the rent officer (see paragraph 38 of circular HB/CTB A3/98). 56. From 3 April 2000, the indicative rent level will not include any support charges eligible under the transitional scheme. The payment on account could, therefore, include an amount in respect of these support charges, in addition to an amount based on the indicative rent level. CALCULATING SUBSIDY 57. The Supporting People consultation paper suggested varying the proportion of direct to indirect subsidy payable in rent allowance cases. However, for at least the first year of the transitional scheme, reasonable support charges will be eligible for maximum subsidy (1) in the normal way. The normal rules will similarly apply when calculating subsidy due on rent other than for support charges. [Note (1) : maximum subsidy will apply except where general provision is made for subsidy to be paid at a different rate, for example where the backdating or overpayment provisions apply.] Example 1 Example 2 Supported accommodation is provided by a Scottish local authority. The only service charges included in the rent are for GC&S, emergency alarms or the cleaning of rooms and windows. Contractual rent payable to the landlord is broken down as follows: Contractual rent = 90 Ineligible support charges = 10 Eligible rent used to calculate HB = 80 Eligible support charges = 20 Rent net of eligible support charges = 60 19

20 Supported accommodation is provided by a voluntary organisation. The only service charges included in the rent are for GC&S, emergency alarms or the cleaning of rooms and windows. Contractual rent payable to the landlord is broken down as follows: Contractual rent = 90 Ineligible support charges = 10 Eligible rent used to calculate HB = 80 Eligible support charges = 20 Rent net of eligible support charges = 60 Rent officer s net determination = 50 (net of all support charges and other ineligible service charges) 58. The amount of HB payable is allocated in the following order for subsidy purposes: - the amount included in the eligible rent (net of eligible support charges) which is above, where appropriate, the rent officer s net determination of a reasonable rent; - the amount included in respect of support charges under the transitional HB scheme; - the amount based on the rent officer s net determination of a reasonable rent. 59. Eligible rent (net of eligible support charges) which is above the rent officer s net determination of a reasonable rent will attract a reduced rate of subsidy (either nil or 60%, depending on whether you are able to reduce the eligible rent under old HB regulation 11(3), (3A) or (4) or regulation 12(2)). Maximum subsidy will be payable on the balance. Example 1 Example 2 If HB is 80, subsidy is 95% on 80 ( 20 support and 60 rent) If HB is 50, subsidy is 95% on 50 ( 20 support and 30 rent) If HB is 30, subsidy is 95% on 30 ( 20 support and 10 rent) If HB is 15, subsidy is 95% on 15 ( 15 support and nil rent) If HB is 80, subsidy is nil or 60% on 10, 95% on 70 ( 20 support and 50 rent up to level of RO s determination). If HB is 50, subsidy is nil or 60% on 10, 95% on 40 ( 20 support and 20 rent up to level of RO s determination). If HB is 30, subsidy is nil or 60% on 10 and 95% on 20 ( 20 support). If HB is 15, subsidy is nil or 60% on 10 and 95% on 5 ( 5 support). If HB is 10 or less, subsidy is nil or 60% on 10 (or less). INFORMATION GATHERING General 20

21 60. The need for detailed information is two-fold to ensure that support charges eligible under the transitional scheme are properly identified and to use this information to inform the long-term Supporting People funding arrangements. Information you need from the claimant 61. In obtaining information on support charges, you are reminded that confidentiality is essentially a matter for each authority; you must comply with the general law on confidentiality and with the Data Protection Act. 62. Bearing this in mind, you may need to go back to the claimant for more information about support charges where this is not already held. A supplementary claim form to obtain this extra information is attached at Annex E. 63. We understand that some LAs propose to ask providers in their area for a breakdown of support charges on a scheme by scheme basis. If this then tallies with the information given on the claim form, no further approach to the claimant would be needed. A similar approach can be taken with the provision of information regarding client group details where a common service is provided to all residents (1). In view of this, therefore, we would suggest that you include 3 specific questions on the main claim form to establish whether the rent includes any charges for general counselling and support, cleaning of rooms and windows or for an emergency alarm system and, if so, the amount for each of these, to cross-check against the information from the provider. [Note (1) : Information is needed on the main client group that the service is designed for to ensure that the different elements of support tally with the type of support being provided. So where a person is living in a homeless hostel where the same support package is provided to all residents, this will be shown as Homeless in need of support, even if some residents may have mental health problems or learning disabilities.] Information you need to give to the DSS 64. From April 2000, you will be asked to provide the following information on a quarterly basis on forms STATS 121/122 and 124: (i) (ii) on forms STATS 121/122, as appropriate, a quarterly snapshot of the number of claimants where the eligible rent includes support charges under the transitional scheme; on form STATS 124, the total amount over the quarter included in the eligible rent in respect of support charges under the transitional scheme and a separate breakdown of any amounts included for - GC&S; - cleaning of rooms and windows; and - emergency alarm systems, with information in both (i) and (ii) above further broken down in each case into claims for rent rebate or rent allowance, and whether or not the claimant is living in supported accommodation primarily intended for people aged 60 or over (see question 2(a) of Annex E). 21

22 65. From April 2001, you will also be asked to provide the following information on the under 60 client groups based on the type of support being provided (see question 2(b) of Annex E), ie: * the number of claimants in each group where the eligible rent includes support charges under the transitional scheme; and * the total amount included in the eligible rent for support charges under the transitional scheme in respect of each group. (Where the supported accommodation is primarily intended for people aged 60 or over (mainly sheltered accommodation) this information will continue to be collected as in paragraph 64 above.) 66. You will also be asked to provide details of total expenditure on support charges under the transitional scheme, for both rent rebates and rent allowances, as part of your authority s subsidy claim for 2000/2001 to 2002/2003. The subsidy claim forms from 2000/2001 will be amended accordingly. Expenditure details will be needed for HRA/non-HRA rent rebates, as appropriate. Expenditure details on rent allowances should be broken down into expenditure on new scheme cases (from January 1996) and expenditure on old scheme cases (pre-january 1996) where there is a rent officer s determination; and expenditure on those cases without a rent officer s determination (mainly housing association tenancies exempt from rent officer referral or those where a rent officer s determination has not yet in obtained). TRAINING AND PUBLICITY 67. We plan to hold a series of ½-day workshops across Great Britain, over the period from late October to the end of November. We will be inviting staff from HB sections, social services departments, probation services, Benefits Agency local offices, the Rent Service and supported accommodation providers in each LA area, to attend one of these workshops. 68. The Department of the Environment, Transport and the Regions (DETR) wrote to LA Chief Executives in England on 30 July 1999 (letter headed SUPPORTING PEOPLE CARRYING FORWARD IMPLEMENTATION WORK ) asking LAs to identify a lead official to act as a general contact point for the long-term proposals, to facilitate communication on Supporting People and to ensure that there is a focus for your own corporate policy. 69. We will also require a contact point for the transitional HB scheme. However, we require a contact point for every local authority in GB. Where possible, this should be an experienced practitioner from your HB section who can act as a focal point for communications, and take the lead in liaising both internally and externally. It may be that, if you are an English authority, your DETR nominee will be suitable for this purpose too. 70. We will also require a nominee from social services and probation services for the same purposes. We would therefore be grateful if you could liaise with your relevant social services department, and with your probation services, to establish a contact point in these services, too. In England, where your authority is not a unitary authority you should liaise with other districts to ensure that only one social services representative is nominated. You should also liaise with other authorities regarding the probation services nominee. The names 22