Apologies for opening up this old thread but we don't get many of these and just wanted to see what others do. This refers to a third party who is not a landlord or agent for the landlord.
Reg 94 (3) allows this but says we "may" so it's discretionary so no formal right of appeal but must have reason to refuse. Overpayments could be recovered from third party and they would be person affected (same rules as landlord)
The case I have is where the claimant wants HB paid to daughter (who does help her deal with other things such as Council Tax etc but is not an appointee). the landlord (who is her other daughter) uses an agent to collect rent (we have established commerciality etc).
We can pay third party but bearing in mind above posts (re possible problems with overpayments and payee being close associate of the landlord) I am considering the decision carefully.
I would be interested to hear what others think and what they do to make third parties aware of duties + possible OP's etc (we would ask for written detailed request from claimant for authority and reasons and ask 3rd party to confirm acceptance of payment/duties and responsibilties).
thanks Mick