This response assumes there has been no overpayment.
There is nothing in the regs, and there is no Commissioner decision that allows HB to be paid other than by way of the regulations – there are no exceptions to this (er, excluding a very recent case which was, in the opinion of most people, clearly wrongly decided).
The only option is for the LA to consider paying an ex-gratia payment to compensate for any loss suffered by the tenant – such payments are completely separate from the HB scheme.
However, there may be a solution if a bit more info can be provided:
a) is there overlapping liability (i.e. 2-homes)? If so, when did the liability end on the “old” home?
b) is the rent higher at the new address?
c) did the clmt move directly from the “old” home to the new home, or did he live at a third property in between the “old” and new home?
Regards