DHP AND RENT FREE WEEKS

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  • #19538
    Anonymous
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    I am interested in how other authorities deal with DHP awards in cases where there are also a rent free weeks.

    My example is rent payable over 50 weeks = £59.64 pw
    Thus eligible rent over 52 weeks = £57.35
    HB award calculates at £35.36 paid for 50 weeks

    Our software will only allow us to award a weekly DHP of £21.99 for each of the 50 weeks being the difference between the 52week eligible rent and the actual HB award (which is only paid for 50 of the 52 weeks).

    I make out the customer is losing out by £114.50 in a year – can anyone clarify if they have come accross this issue and how they dealt with it? ❓

    #63500
    Anonymous
    Guest

    Forgive me if I have misunderstood what you have written, but are you adjusting the rent figure when calculating entitlement for a claimant with rent-free weeks? If so, I think this is wrong, only income, applicable amount and non-dep deductions should be adjusted.

    #63501
    Anonymous
    Guest

    Andy,

    Our software (Academy) converts a 50 week rent payable figure of £59.64 to a 52 week amount to calculate the eligible rent of £57.35, it then deducts the 65% taper (zero in this case), and then ND deductions (£23.35 in this case) to arrive at a 52 week entitlement of £34.00, which is then converted back to a 50 week payable award of £35.36.

    Our problem appears to be that our DHP facility is comparing the 52 week eligible rent of £57.35 and the 50 week payable HB of £35.36 and will only allow a DHP award of £21.99 for the 50 weeks, whereas I believe a DHP award should be allowable of £23.35 for the 50 weeks we pay.

    Look forward to your feedback! 🙄

    #63502
    Anonymous
    Guest

    I think Academy’s software is wrong, in that case. (So is our system here, but don’t tell anybody.) Unless I am completely, utterly mistaken, no adjustment is made to the rent figure in the calculation for a claimant with rent free weeks.

    Calculation of weekly amounts – HBGR, Reg 62(2)(a) –

    The weekly amount of a claimant’s eligible rent shall be…, where rent is payable at intervals of one week or a multiple thereof, the amount of eligible rent payable weekly or, where it is payable at intervals of a multiple of a week, the amount determined by dividing the amount of eligible rent payable by the number equal to the number of weeks [i:01b164694e]in respect of which it is payable[/i:01b164694e];

    (My italics, obviously)

    Rent free periods – HBGR, Reg 70(3)(a) –

    For the purposes of determining the weekly [i:01b164694e]applicable amount [/i:01b164694e]and [i:01b164694e]income[/i:01b164694e] of a claimant to whom this regulation applies, the weekly amount of any [i:01b164694e]nondependant deductions [/i:01b164694e]and the minimum amount payable in his case…in a case to which regulation 69(2)(a) applies, the amounts determined in his case in accordance with Parts V to VIII (applicable amounts, income and capital, students and amounts of benefit) shall be multiplied by 52 or 53, whichever is appropriate, and divided by the number equal to the number of weeks in that 52 or 53 week period in respect of which he is liable to pay rent

    (Again, my italics)

    The calculation is slightly different where the rent is payable on a calendar monthly basis (but I suspect the vast majority of people with rent-free weeks have weekly rents), but again there is no adjustment to the rent figure.

    So, for your DHP claimant, you should be calculating HB on the full weekly rent of £59.64, but with adjusted income/app amount/non-dep deductions, and pay this over the 50 weeks. Then you can pay the “true” DHP to top up to full rent. No DHP is payable during the rent-free weeks, of course, because there is no entitlement during those weeks.

    #63503
    Anonymous
    Guest

    Thanks Andy – I agree entirely and have now spoken with our software supplier and the matter has been resolved – we can award the correct amount without a problem. There was just a little technical hitch on a particular claim.

    😳

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