Claimant with a Sub-tenant

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  • #34578
    rds01
    Participant

    Scenario: We have a claimant on JSA C renting a 2 bedroom house at 650pm. She has a sub-tenant. The LHA rate for a 2 bedroom prop is 650pcm. As she has a sub-tenant he is included in her LHA rate so she gets 650pm. Now the sub-tenant has lost his job and gets JSA IB, paying £70pw. Therefore the claimant gets the full rent each week plus £70pw. Overall, we are paying much more in HB than the actual rent, is this right?

    #97229
    andyrichards
    Participant

    So are you not taking the sub-tenant’s rent into account as income then?

    #51310
    Anonymous
    Guest

    Well, the £70 per week counts as income (subject to disregards) so your main tenant would not get full HB, but due to those disregards and the 65% taper you would potentially be paying more than £650 per month for the property if the sub-tenant claimed as well.

    #97230
    Anonymous
    Guest

    But this could always happen when a clt on benefit is subletting – it’s not peculiar to LHA. If they own the house and have a subtenant they are getting benefit (between the 2 of them) when there is no rental liability at all. You have to look at the £70 as the clt’s income and not rent on the property, otherwise you would quickly come to the conclusion that the entire HB scheme is seriously flawed!

    #97231
    Andy Thurman
    Keymaster

    It may not be £70 per week that counts as the claimant’s income – if any of this is the £15 excess, this ‘bonus’ amount would be for the sub-tenant to keep i.e. the £70 is the amount the sub-tenant receives in HB rather than the amount paid to their landlord.

    The sub-tenant income to be used would be the actual amount paid (less, of course, the disregarded £20pw).

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