Compensation for loss of home

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    A housing association has had to move out a number of their tenants because they are re-developing the properties. The tenants have been re-housed but have been given approx £4,000 in compensation for the loss of their home.

    Any ideas on how should this capital be treated?

    Does schedule 6 para 10 apply? Consequence of damage to, or loss of the home or any personal possession and intended for its repair or replacement.

    Many thanks

    Andy Thurman

    I don’t think this para applies becuase it isn’t intended for repair/replacement & I can’t think of any other of the disregards that would apply. Hopefully it won’t affect too many cases at all (total still less than £6/10k), fewer still where it hits £6k, and, given the nature of the payments (& relatively small amount in the context of how long it would take to spend!), I would be ‘generous’ in allowing this to be quickly ‘blown’ on ‘luxuries’ without applying notional capital!!


    Thank you for your comments.


    Google “decant policies” , there are loads out there.

    This is taken from Southampton’s.

    Housing and Council Tax Benefit Claimants:-
    As at the date of this policy, national housing benefit regulations state that home
    loss compensation is counted as capital for housing and council tax benefit

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