Local Housing Allowance:

Vulnerability Policy (reviewed 31 March 2011)

Under Local Housing Allowance (LHA) a tenant cannot simply request that payment is made to their landlord. In general, direct payments will only be made to landlords for vulnerable tenants. This policy sets out the guidelines by which officers will make decisions on vulnerability and has been developed in consultation with stakeholders.

Aims and Objectives

•	to provide a safeguard for the most vulnerable tenants and reassure them that 	their benefit will be paid direct to their landlord
•	to consider payment of Local Housing allowance directly to the landlord where this will assist the tenant in securing or retaining a tenancy at an affordable rent 
•	to help prevent rent arrears and tenants being put at risk of eviction
•	to help sustain tenancies for vulnerable tenants
•	to reassure landlords that their rent will be paid if they have vulnerable tenants or 	are approached by vulnerable tenants
•		to ensure Council officers make reasonable, fair and consistent decisions
•		to promote a transparent and simple process that is widely understood
•		to treat each case individually and to avoid making assumptions about people's 	situations

The policy is not designed to:

•	     supersede support that is being received by tenants to help them be responsible  
for their own income and expenditure
•		be a blanket policy for agencies providing support to private tenants
•		be used by landlords to circumvent the aims of LHA

Procedure

1.	Alerting the Council of potential vulnerability

The tenant or their representative makes the Council aware that they would prefer their LHA to be paid to the landlord.  The request needs to be supported with written evidence from a third party, but initially can be by:-

•	a letter/e-mail
•	a phone call
•	the application form

2.	Gathering information and evidence

Officers will consider the information that has been received and whether there is enough evidence to make an appropriate decision.  Evidence can be from:

•	Social Workers, Probation Officers, Support Workers, Housing & Family Support Services 
•	GP/Hospital
•	support or advisory services like the Citizens Advice Bureau and Shelter
•	a tenant's family or friends
•	letter from a bank confirming that you are unable to open a bank account
•	copy of a Court Order or County Court Judgement
•	rent records and letters proving attempts to collect monies or evidence from a previous landlord
•	Housing & Family Support services or a landlord provides evidence that making payments directly to the landlord will assist the customer in securing or retaining the tenancy at an affordable rent

Please note that information from a landlord cannot be accepted without supporting evidence

3.	Making a decision

One of the following decisions will be recommended and approved by a manager:

1.	the tenant is vulnerable and payment of LHA will be made to the landlord
2.	the tenant is not vulnerable and payment of LHA will be made to the tenant
3.	local authority considers there is sufficient evidence that direct payment will 
     assist the customer in retaining or securing their tenancy at an affordable rent  

4.	Notifying affected parties

The tenant and/or their representative will be written to and advised of the following:

•	the decision and reasons for it
•	if and when the decision will be reviewed
•	appeal rights
•	contact details for advice if they don't have a bank account and will be receiving excess LHA themselves

The landlord will also be written to and advised:

•	if their tenant has been found vulnerable that the Council will pay them LHA up to the contractual rent
•	if and when the decision will be reviewed
•	request bank details if not previously received
•	if their tenant has been found not to be vulnerable, the landlords appeal rights against this decision
•	if the safeguard is applied in respect of securing or retaining the tenancy the decision may be reviewed if the level of LHA reduces due to a change in household, the rent increases or becomes unaffordable

Examples of Vulnerability

1.	Long Term

•	tenant has a learning disability that prevents them from managing their financial affairs on a daily basis
•	tenant suffers from a medical condition that makes it hard for them to cope with routine tasks eg schizophrenia; dementia; terminal illness
•	tenant has a physical disability that means that they are often housebound making it difficult for them to manage their affairs

2.	Short Term

•	tenant has experienced recent changes that has meant that they need additional support in managing their affairs eg bereavement; (violent) relationship breakdown; a period in hospital; leaving prison
•	tenant speaks English only as a second language presenting obstacles to them in opening and running bank accounts or reading and dealing with invoices and bills.
•	tenant is dealing with (or has a history of) addiction to drugs, alcohol, gambling and a substantial monetary payment to them would present a risk of relapsing
•	tenant has a history of homelessness and/or rough sleeping and is receiving help to sustain a tenancy in the private sector

	There will be a need to regularly review tenants' circumstances where they 	may appear to be vulnerable for a limited period of time.

3.	Financial

•	tenant has severe debt problems eg County Court Judgements, bankruptcy, bad credit rating preventing them from opening a bank account

4.	Securing or retaining the tenancy 

•	there is evidence the landlord has offered the tenancy at a lower rent, that is considered affordable in return for direct payment of benefit 
•	a reduction in the rent on an existing tenancy has been negotiated with the landlord at a level that is considered affordable in exchange for direct payment. This reduction will need to have been confirmed in writing between the tenant and the landlord and evidence provided to the Local Authority by either the landlord or Housing & Family Support Services if they assisted in negotiating the reduction.
•	where homelessness has been relieved or prevented by securing a tenancy with the assistance of the Council’s Housing and Family Support Service.  

Direct payment under securing or retaining the tenancy will continue whilst the rent is considered to remain affordable 
		
For further information and application form please contact:-
Revenue Services
Isle of Wight Council Offices
Broadway
Sandown
Isle of Wight
PO36 9EA
Tel No:  01983 823950