Managing Housing Benefit Claims in Supported Housing | Part D: Process and Practice
In brief
- A supported housing claim has a lifecycle: the scheme is assessed, tenants claim, payment is made, rents change, questions arise, and eventually tenants move on or the scheme changes or closes. Each stage has its own rules and its own risks.
- New schemes should be assessed once, at scheme level, using the scheme evidence pack, so that individual claims can then be decided quickly (Chapter 13).
- Claims must be made promptly. For working age claimants, backdating is limited to one month and needs continuous good cause (Housing Benefit Regulations 2006, regulation 83(12) and (12A)). A claim made within one month of moving in can usually be treated as made on the day the tenant became liable.
- Where a council cannot decide a rent allowance claim within 14 days, for reasons that are not the claimant’s fault, it must make a payment on account (regulation 93).
- Direct payment to the landlord is the norm in supported housing. It must be made where there are eight weeks or more of arrears, and may be made where the tenant consents or it is in their interest (regulations 95 and 96).
- Rent increases take effect from the day they occur if notified within one month. Late notice can cost the tenant and provider the increase for the period before notification (regulation 79(2); Decisions and Appeals Regulations 2001, regulation 8(3)).
- Suspension is a power, not a duty. It should be limited to the issue, to the claims affected and to the shortest time needed. Payment must be restored within 14 days once the issue is resolved (Decisions and Appeals Regulations 2001, regulations 11 and 12).
- Scheme closures, transfers and changes of provider need planning with the council, so that tenants are not left without a home or with an overpayment.
- SHP’s position: most delay and cost in the lifecycle can be avoided by doing scheme-level work once, telling each other about changes early, and using the tools the regulations already provide, such as payments on account and partial suspension.
The law
| Stage | Main rule | Reference |
|---|---|---|
| Date of claim | Depends on the circumstances; usually the date of first notification of an intention to claim, if the claim is completed within one month | Regulation 83(5) |
| Backdating (working age) | Up to one month, with continuous good cause | Regulation 83(12) and (12A) |
| Backdating (pension age) | Up to three months, without good cause | Housing Benefit (State Pension Credit) Regulations 2006, regulation 64(1) |
| Start of entitlement | The benefit week after the date of claim; or the benefit week of the claim where the claimant first becomes liable in that week | Regulation 76 |
| Decision | Within 14 days of the claim and information being complete, or as soon as reasonably practicable | Regulation 89(2) |
| Payment on account | Required where a rent allowance claim cannot be decided within 14 days, unless the delay is the claimant’s fault | Regulation 93 |
| Payment to landlord | Mandatory at eight weeks’ arrears; discretionary with consent or in the claimant’s interest | Regulations 95 and 96 |
| Change in rent | Takes effect from the day it occurs | Regulation 79(2) |
| Late notification | An advantageous change notified more than one month late takes effect from the date of notification, unless time is extended | D&A Regulations, regulations 8(3) and 9 |
| Suspension | Where an issue arises about entitlement, or an appeal is pending in specified cases | D&A Regulations, regulation 11 |
| Restoring payment | Within 14 days of deciding to restore, so far as practicable | D&A Regulations, regulation 12(2) |
“D&A Regulations” means the Housing Benefit and Council Tax Benefit (Decisions and Appeals) Regulations 2001.
18.1 New scheme assessment
Assess the scheme, then the claims. The questions that decide most claims in a new scheme are the same for every tenant: whether the landlord qualifies, whether it provides the accommodation and the care, support or supervision, and how the rent is built up (Chapters 5 to 10). They should be settled once, using the scheme evidence pack (Chapter 13; Appendix 4), ideally before the scheme opens (Chapter 17, 17.1).
A scheme assessment is not a decision. The law decides entitlement claim by claim (DWP guidance, para 210). But a council that has reviewed the scheme evidence and recorded its findings on the scheme file can decide each claim much faster, by applying those findings to the tenant’s own circumstances (Chapter 14).
A practical sequence.
- The provider submits the scheme evidence pack, with the rent and service charge build-up (Appendix 8).
- The council reviews it, raises any questions in a single request, and agrees a date for the answers (Chapter 12).
- The council records its findings on the scheme file: landlord status, provision of care, support or supervision, eligible service charges and rent.
- The first claims are decided on that basis, with the claimant-level evidence for each tenant.
- Any points of disagreement are narrowed through dialogue (Chapter 16, 16.3) and, if they remain, decided with reasons so that they can be reviewed or appealed.
Timescales. The council must decide each claim within 14 days of the claim and the information being complete, or as soon as reasonably practicable after that (regulation 89(2)). A scheme review that takes months, while tenants wait, does not meet that standard. Where the scheme review is taking time, the council should consider a payment on account (18.2).
18.2 New claims and backdating
Who claims. The tenant is the claimant, even where the provider helps with the claim or receives payment (Chapter 12). The tenant, or someone acting for them, must make the claim.
Universal Credit claimants. Housing costs in exempt accommodation are met by Housing Benefit, not by the housing element of Universal Credit. A tenant on Universal Credit must therefore claim Housing Benefit from the council for their rent.
The date of claim matters. Under regulation 83(5) (legislation.gov.uk):
- where the tenant is on Universal Credit, income support, income-based jobseeker’s allowance or income-related employment and support allowance and becomes liable for rent for the first time, a claim received within one month of becoming liable is treated as made on the date the liability began (regulation 83(5)(b))
- in other cases, where the tenant notifies an intention to claim and the completed claim follows within one month, or a longer reasonable period, the claim is made on the date of first notification (regulation 83(5)(d))
Entitlement then starts from the benefit week after the date of claim or, where the tenant first became liable in the week of the claim, from that week (regulation 76(1) and (2)). For hostels, where rent falls due daily, entitlement can start from the first day of liability (regulation 76(3) and (4)).
Practical point for providers. Help each new tenant to notify the intention to claim, or make the claim, on the day they move in. That protects the tenant from a gap in entitlement that backdating may not cover.
Backdating. For working age claimants, a claim for a past period can be backdated only where the claimant had continuous good cause for not claiming earlier, and then by no more than one month (regulation 83(12) and (12A)). The one-month limit has applied since 1 April 2016. For claimants over state pension credit age, a claim can cover up to three months before it is made, without any need to show good cause (HB (SPC) Regulations, regulation 64).
Good cause. Good cause means “some fact which, having regard to all the circumstances (including the claimant’s state of health and the information which he had received and that which he might have obtained) would probably have caused a reasonable person of his age and experience to act (or fail to act) as the claimant did” (R(S) 2/63, as applied in Housing Benefit cases such as CH/996/2004). In supported housing, mental ill health, learning disability, addiction, crisis and the circumstances of a move from homelessness or custody are often directly relevant, and councils should take them into account.
Payments on account. Where it is impracticable to decide a rent allowance claim within 14 days, and that is not because the claimant has failed without good cause to provide information requested, the council must make a payment on account of a reasonable amount (regulation 93). This applies to new claims in supported housing as much as any other.
- For councils: a payment on account is a duty, not a favour. Where the scheme review is taking time, a payment on account of at least the amount the council is confident of, such as a general needs level of rent, protects the tenant while the rest is decided.
- For providers: a payment on account is recoverable if the final award is lower, from the person to whom it was paid (regulation 93(2)). Treat it as provisional until the decision is made.
18.3 Payments direct to landlord
The rules. A rent allowance must be paid to the landlord where the tenant is eight weeks or more in arrears, unless it is in the tenant’s overriding interest not to (regulation 95(1)(b)). It may be paid to the landlord where the tenant has requested or consented to it, where it is in the interest of the tenant and their family, or, after the tenant has left, for rent still outstanding (regulation 96(1)) (regulation 95; regulation 96). The special rules for direct payment in Local Housing Allowance cases (regulation 96(3A)) do not apply, because exempt accommodation is outside Local Housing Allowance.
Why direct payment is the norm. Most supported housing tenants have support needs that make managing a large monthly rent payment difficult, and the rent is often far higher than they could pay themselves. Direct payment protects the tenancy and is usually in the tenant’s interest. SHP’s position is that councils should normally agree to direct payment in supported housing where the tenant consents, and providers should obtain and keep a record of that consent at sign-up.
Fit and proper person. No mandatory direct payment can be made to a landlord the council is not satisfied is a fit and proper person to receive it (regulation 95(3)). For discretionary payments, the council may still pay where it is satisfied that is in the tenant’s best interests (regulation 96(3)). The test is about the landlord’s fitness to receive the tenant’s benefit, for example evidence of fraud or of not passing benefit to the rent account. It is not a sanction for a disagreement about exempt status or rent levels, which should be decided on their own terms.
Payment intervals. Payments to a landlord are made four weekly in arrears, or monthly where the rent is monthly (regulation 92(3) and (4)). The first payment for a new tenant may be made at a shorter interval where that helps efficient administration (regulation 92(4)(b)).
Schedules and remittances. Providers with many tenants need payment schedules that identify each tenant, the period and the amount. Councils should provide them in a usable electronic form. Providers should reconcile each payment promptly and tell the council about anything that does not match.
Overpayments. Direct payment carries the risk that an overpayment is recovered from the landlord (regulations 100 and 101; Chapter 21). Prompt notice of changes, particularly when a tenant leaves, is the best protection (regulation 88(1); Chapter 14, 14.7).
18.4 Annual reviews and rent increases
Two kinds of review. The scheme review checks that the scheme still operates as described on the scheme file (Chapter 13). A rent increase is a change of circumstances on each tenant’s claim. Combining the two, once a year, saves time on both sides.
When a rent change takes effect. A change in the rent takes effect from the day it actually occurs (regulation 79(2)), but only if it is notified in time. Where an advantageous change is notified more than one month after it occurs, the date of notification is treated as the date of the change (D&A Regulations, regulation 8(3)) (legislation.gov.uk). Time can be extended for special circumstances on an application made within 13 months, but not for ignorance of the rules (regulation 9) (legislation.gov.uk).
What this means in practice. Providers should notify each rent increase, for every tenant, before it takes effect or within one month at the latest, with the updated rent and service charge build-up. A late notice can mean the tenant loses Housing Benefit on the increase for the period before notification, and the provider loses the rent.
What the council can do with an increase. The council can restrict an increase that is unreasonably high compared with increases for suitable alternative accommodation, or that follows the previous increase within 12 months and is unreasonable for that reason (alternative regulation 13ZA; Chapter 10, 10.8). Where it restricts, it must consider whether a lesser increase is reasonable (BM v Cheshire West and Chester Council [2009] UKUT 162 (AAC), paras 57 and 58).
Keep paying while the increase is considered. Where the council needs more information about an increase, the existing award continues at the current rent. The council should not suspend the whole award while it considers the increase. The supersession for the increase can be made once the information is in (D&A Regulations, regulation 7(5)).
A good annual cycle.
| When | Provider | Council |
|---|---|---|
| Two to three months before the increase | Shares the draft rent build-up and reasons for the increase | Raises any questions early |
| At least one month before | Gives tenants notice of the increase under the tenancy, and notifies the council for each tenant | Logs the notification |
| Effective date | Applies the new rent | Applies the increase, or decides on any restriction with reasons |
| Annual scheme review | Updates the scheme evidence pack | Updates the scheme file |
18.5 Suspension: when it is justified and how to keep it short
When the power arises. The council may suspend payment “in whole or in part” where it appears that an issue arises about whether the conditions of entitlement are or were met, or whether a decision should be revised or superseded. It may also suspend where an appeal is pending against a decision of the First-tier Tribunal, the Upper Tribunal or a court in the case itself, or against a decision of the Upper Tribunal or a court in a different case that would raise an issue about the award (D&A Regulations, regulation 11(1) and (2)) (legislation.gov.uk).
An appeal elsewhere. The “different case” ground applies only where the pending appeal is against a decision of the Upper Tribunal or a court (regulation 11(2)(b)(ii)). A First-tier Tribunal decision in another case does not bind anyone (Chapter 4) and is not, on its own, a ground for suspending other awards under that provision.
Suspension for information. Where suspension is linked to a request for information, the strict process in regulations 13 and 14 applies: a notice under regulation 13(3), one month to respond, restoration within 14 days of compliance, and termination only after the time has run (Chapter 12, 12.5; CH/1764/2008).
When suspension is justified. Suspension is justified where there is a real doubt about entitlement that the council is actively resolving, and where continuing to pay risks a significant overpayment. It is not justified as a way of putting pressure on a provider, as a default response to a new scheme, or where the council could decide the point on the evidence it already holds.
How to keep it short and fair.
- Limit it to the issue. Suspension can be partial. Where the question is about part of the rent, such as a service charge or the exempt element, consider paying the undisputed part (Chapter 12, 12.5).
- Limit it to the claims affected. Where the issue concerns one tenant’s need or support, suspend that claim, not the whole scheme.
- Say why and what is needed. Tell the claimant and the provider what the issue is, what evidence would resolve it, and by when.
- Decide promptly. Suspension is not a decision. The council should decide the issue as soon as it has the evidence, so that rights of review and appeal can be exercised.
- Restore promptly. Once the council is satisfied that benefit is properly payable and no issues remain, or an appeal is no longer pending and benefit remains payable, it must, so far as practicable, restore payment within 14 days (regulation 12) (legislation.gov.uk).
For providers. Respond fully and quickly, ask for more time early if needed, and tell tenants what is happening. A suspension does not end the tenant’s liability for rent, and a provider should think carefully before taking possession action against a tenant whose benefit is suspended for reasons outside the tenant’s control.
18.6 Scheme closure, transfers and changes of provider
Changes that affect every claim. When a scheme closes, transfers to another landlord, or changes its support provider, the scheme-level facts on which every claim was decided change. Each is a change of circumstances that must be notified (regulation 88(1)).
Change of landlord. Where another landlord takes over the scheme, whether by transfer of the lease, a new management arrangement or a merger, the council needs to know whether the new landlord is a qualifying body, whether it provides the accommodation and the care, support or supervision, and whether the rent and service charges change (Chapters 5 and 13). The new landlord should provide its own scheme evidence pack before the transfer, so that claims continue without a gap. Whether tenancies transfer automatically depends on the legal arrangements, and providers should take advice.
Change of support provider. Where care, support or supervision is provided by a third party on the landlord’s behalf, a change of support provider needs a new agreement showing that the new provider acts on the landlord’s behalf (R(H) 2/07; Chapter 5). The council should be told before the change.
Changes of lease or lessor. A change in lease terms, a rent review under the lease or a change of lessor can be relevant to reasonableness and to contrivance (Chapters 10 and 11). Providers should tell the council and update the scheme evidence pack.
Scheme closure. A closure needs a plan agreed with the council, commissioners and housing options, covering:
- notice to tenants under their tenancies or licences
- move-on and rehousing for each tenant, with referrals to housing options where needed
- Housing Benefit for two homes during a move, where the rules allow it (regulation 7(6); Chapter 14, 14.5)
- payment of any outstanding rent after a tenant leaves (regulation 96(1)(c))
- prompt notice to the council of each leaving date, to avoid overpayments
- secure transfer or retention of tenants’ records
For councils. Treat a closure or transfer as a joint task with the provider, commissioning and housing options. Where a closure follows a decision that the scheme is not exempt, or a concern about the landlord, the council should still plan with the provider for tenants’ rehousing. Tenants should not bear the cost of a dispute between the council and the landlord.
The guidance
| Para | What the guidance says | SHP’s view |
|---|---|---|
| 168 | Ask for a rent breakdown on a new claim or rent increase | Agreed for new schemes and increases (18.1, 18.4) |
| 196, 238 | Compare rent increases with the previous year | Agreed, as part of the annual cycle (18.4) |
| 209 | Collaboration with commissioning and housing options is essential | Agreed, particularly on closures and transfers (18.6) |
| 210 | Each case must be considered individually | Agreed. A scheme review supports claim decisions, it does not replace them (18.1) |
Good practice
For councils:
- Assess new schemes once, record the findings on the scheme file, and decide claims within 14 days of having what is needed.
- Make payments on account where a claim cannot be decided within 14 days for reasons that are not the claimant’s fault.
- Agree direct payment in supported housing where the tenant consents, and use the fit and proper person test only for its purpose.
- Keep paying the current rent while a rent increase is considered.
- Suspend only where justified, only the part and the claims affected, and for the shortest time. Restore payment within 14 days.
- Plan closures and transfers with the provider, commissioning and housing options.
For providers:
- Submit the scheme evidence pack before the first claims.
- Help each tenant notify the intention to claim, or claim, on the day they move in.
- Obtain and record tenants’ consent to direct payment at sign-up.
- Notify tenants of rent increases before they take effect, with the updated build-up.
- Report leavers and other changes promptly, to avoid overpayments.
- Give the council early notice of any change of landlord, support provider or lease, and of any planned closure.
Evidence
| Stage | Evidence | Who provides |
|---|---|---|
| New scheme | Scheme evidence pack; rent build-up (Appendices 4 and 8) | Provider |
| New claim | Claim; tenancy or licence; referral and needs assessment; support plan (Chapter 14) | Tenant, with the provider |
| Backdating | Reasons for the delay, with supporting evidence such as a support worker’s or GP’s letter | Tenant, with the provider |
| Direct payment | Tenant’s consent | Provider |
| Rent increase | Notice for each tenant; updated build-up | Provider |
| Change of landlord or support provider | New scheme evidence pack; new support agreement | Provider |
| Closure | Closure plan; leaving dates | Provider, with the council |
Finding common ground
Use the tools the regulations provide. Payments on account, partial suspension and the 14-day restoration rule exist to protect tenants while questions are resolved. Using them is not a concession by either side.
Agree a calendar. An annual calendar for rent increases and scheme reviews, agreed in the local protocol (Chapter 17, 17.2), avoids a flood of late notifications in April.
Talk before suspending. A short conversation before a suspension often resolves the issue, or narrows it to a part of the rent or a few claims.
Key cases and cross-references
| Case or provision | Point | Chapter |
|---|---|---|
| R(S) 2/63; CH/996/2004 | Meaning of good cause for backdating | 18 |
| BM v Cheshire West and Chester Council [2009] UKUT 162 (AAC) | Rent increases; lesser increase | 10, 18 |
| CH/1764/2008 [2008] UKUT 13 (AAC) | Suspension and termination for information | 12, 16, 18 |
| R(H) 2/07 | Third-party support on the landlord’s behalf | 5, 18 |
| HB Regulations 2006, regs 76, 83, 89, 92, 93, 95 and 96 | Claims, decisions and payment | 2, 18 |
| D&A Regulations 2001, regs 8, 9, 11 and 12 | Effective dates, late notification, suspension and restoration | 12, 18 |
- Related chapters: Chapter 2 (2.8, payment to landlords); Chapter 10 (10.8, rent increases); Chapter 12 (12.5, suspension for information); Chapter 13 (scheme evidence); Chapter 14 (claimant evidence and moving in); Chapter 17 (partnership); Chapter 21 (overpayments)
- Appendices: Appendix 4 (scheme checklist); Appendix 8 (rent build-up); Appendix 9 (regulation 86 letter)
Sources
- Housing Benefit Regulations 2006, regulation 76: https://www.legislation.gov.uk/uksi/2006/213/regulation/76
- Housing Benefit Regulations 2006, regulation 79: https://www.legislation.gov.uk/uksi/2006/213/regulation/79
- Housing Benefit Regulations 2006, regulation 83: https://www.legislation.gov.uk/uksi/2006/213/regulation/83
- Housing Benefit Regulations 2006, regulation 89: https://www.legislation.gov.uk/uksi/2006/213/regulation/89
- Housing Benefit Regulations 2006, regulation 92: https://www.legislation.gov.uk/uksi/2006/213/regulation/92
- Housing Benefit Regulations 2006, regulation 93: https://www.legislation.gov.uk/uksi/2006/213/regulation/93
- Housing Benefit Regulations 2006, regulation 95: https://www.legislation.gov.uk/uksi/2006/213/regulation/95
- Housing Benefit Regulations 2006, regulation 96: https://www.legislation.gov.uk/uksi/2006/213/regulation/96
- Housing Benefit (State Pension Credit) Regulations 2006, regulation 64: https://www.legislation.gov.uk/uksi/2006/214/regulation/64
- Decisions and Appeals Regulations 2001, regulation 8: https://www.legislation.gov.uk/uksi/2001/1002/regulation/8
- Decisions and Appeals Regulations 2001, regulation 9: https://www.legislation.gov.uk/uksi/2001/1002/regulation/9
- Decisions and Appeals Regulations 2001, regulation 11: https://www.legislation.gov.uk/uksi/2001/1002/regulation/11
- Decisions and Appeals Regulations 2001, regulation 12: https://www.legislation.gov.uk/uksi/2001/1002/regulation/12
- CH/996/2004 (good cause, applying R(S) 2/63): https://administrativeappeals.decisions.tribunals.gov.uk/judgmentfiles/j1466/CH%200996%202004-00.doc
- R(S) 2/63: https://www.rightsnet.org.uk/pdfs/rs/2_63tb.pdf
- CH/1764/2008 [2008] UKUT 13 (AAC): https://administrativeappeals.decisions.tribunals.gov.uk/judgmentfiles/j2563/CH%201764%202008-00.doc
- DWP guidance for supported housing claims: https://www.gov.uk/government/publications/housing-benefit-guidance-for-supported-housing-claims/housing-benefit-guidance-for-supported-housing-claims
- DWP Housing Benefit subsidy guidance manual 2025 to 2026 (backdating, paras 300 and 331): https://www.gov.uk/government/publications/housing-benefit-subsidy-guidance-manual-2025-to-2026/housing-benefit-subsidy-guidance-manual-2025-to-2026
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This manual is licensed under CC BY-ND 4.0: you can share it freely, with credit to SHP, without changes. See Rights and licence. Supported Housing People Ltd, Version 1.0, October 2026.