Claimant duty to report change of circumstances

The claimant has a duty to notify the local authority's 'designated office' in writing (or, in some areas, by telephone or online) of any 'relevant' changes in circumstance – i.e. a change in circumstance that they might reasonably be expected to know could affect their housing benefit. This could include changes in income or savings or increases in the rent for private and housing association tenants. If housing benefit is paid direct to the claimant's landlord or appointee, the landlord/appointee is under the same duty.[1]

Designated office

The postal address of the 'designated office' must be included on every housing and council tax benefit claim forms. Claim forms and decision letters where the 'designated office' is not identified in a sufficiently precise manner could result in an overpayment not being recoverable.

A housing department which did not pass on information about a claimant's change of circumstances to the council tax and benefits service made an official error and the resulting overpayment could not be recovered.[2]

The following specific changes in circumstance must be reported:[3]

Working age claimants

• when entitlement to income support, income-based jobseeker's allowance (JSA) or income-related employment support allowance (ESA) ends (in some circumstances this can be reported to the DWP) - also see 'sanctions' below

• a child or young person leaves home or their child benefit stops

Pension age claimants

• changes in rent (except for local authority tenants)

• changes affecting the residence or income of any non-dependant

• temporary absences that are likely to exceed:

• 13 weeks, or

• (with effect from 21 December 2017) four weeks if outside Great Britain[4]

There are additional changes that must be reported if the claimant is in receipt of savings credit of pension credit including:

• if their capital rises to above £16,000

• changes affecting a child that could affect entitlement (but no requirement to report age changes)

A change in status such as separation or cohabitation is also a change of circumstances potentially affecting a claimant's housing benefit.

Only one member of a couple who live together can be the claimant.

If the person who is the claimant permanently leaves the home their entitlement to housing benefit ends. The remaining person, where they are liable to pay the rent (or is treated as such), must make a fresh claim.[5] The temporary absence (even if it is for longer than the period allowed) of the claimant when the other partner remains in the home does not end the claimant's entitlement to housing benefit.

Where a person claiming housing benefit (the 'new claimant partner') moves in with a universal credit claimant as their partner, the housing benefit claimant's local authority will close down their housing benefit claim from the Sunday after the change of circumstance (ie moving out), and not from the day they move in with the universal credit claimant and becomes entitled to universal credit as part of a joint claim.[6] This avoids an overpayment where there there is a genuine rental liability that continues after the new claimant partner has moved out. Housing costs on the shared accommodation will be met by universal credit, which is paid monthly in arrears.

Where a universal credit claimant moves in with a person claiming housing benefit, the housing benefit award will terminate on the day before universal credit entitlement begins – as universal credit is paid monthly in arrears, the rental liability for the entire month will be covered by universal credit and there will no housing benefit overpayment.

The following changes of circumstances do not have to be notified:[7]

• age of the claimant, partner, children or non-dependants

• rent changes for local authority tenants

• changes affecting entitlement to income support, income-based JSA or income-related ESA (unless the claimant’s entitlement is ending)

A local authority should not suspend or terminate a claim for housing benefit when a claimant is subject to sanctions imposed by the Department for Work and Pensions (DWP).

A claimant is considered to be in receipt of income-based JSA if payment of that benefit is suspended due to sanctions imposed by the DWP.[8] A claimant of income-related ESA or income support who is subject to sanctions cannot have that benefit reduced to below 10 pence per week. This allows the claimant to retain their entitlement to housing benefit.[9]

Notification of a change in circumstances that involves a birth or a death can be made through personal attendance at a local authority office. Where the change is a death, notification may alternatively be given by telephone in some areas.[10] This system is known as 'Tell Us Once'.

More information on areas covered is available from Gov.uk: What to do after someone dies.

If a claimant knowingly fails to inform the local authority of a change of circumstances which has affected their entitlement to benefits, they will be guilty of a criminal offence under section 112 of the Social Security Administration Act 1992, which can lead to a fine or imprisonment. If there is also an element of dishonesty in failing to notify then a more severe offence, punishable by fine or up to seven years imprisonment, will have been committed under section 111A of the Act.

An offence will only have been committed if the change of circumstances would have affected entitlement to benefits, not merely if it may be something which a benefits officer might have taken into consideration when calculating entitlement.[11] If a claimant is in any doubt as to the effect of any change, they should report the change in circumstances.

Where the claimant's negligence in relation to reporting a change of circumstances results in an overpayment of benefit, but where the behaviour does not reach the threshold at which a criminal prosecution may be made, the authority may impose a fixed civil penalty.

Alternative to prosecution

For 'low level' benefit fraud the imposition of an administrative penalty can be used as an alternative to criminal prosecution.[12] An administrative penalty can be issued by a local authority or the DWP.

A change in circumstances will be considered effective from the Monday after the week in which the change actually occurred.[13] There is an exception for claims relating to a tenancy with a daily rent liability (eg hostel accommodation) in which case the change is effective on the day it occurs.[14]

If claimants take more than one month to notify the local authority of something that means they qualify for more housing benefit, and have no special circumstances for this delay, then they not get the increase in their housing benefit until they notifies the authority of the change.[15]

The sharing of certain information between local authorities, their housing and benefit departments, the DWP and certain other 'qualifying persons',[16] such as private registered providers of social housing (PRPSHs) and service providers, is permitted (but not required).[17] The categories of welfare services and the purposes for which claimant information can be shared under the powers above include:[18]

• Blue Badge scheme

• Disabled Facilities Grant

• discretionary housing payments

• non residential care

• residential care

• Supporting People scheme

• homelessness functions

• support for troubled families, and

• support for people affected by new benefit rules (in particular the benefit cap and social sector size criteria), and who may as a result need some help or support

The Department for Work & Pensions has announced temporary arrangements aimed at supporting benefit claimants impacted by coronavirus.

Debt charity Step Change has published guidance on debt and coronavirus that outlines what assistance may be available for people unable to meet their financial obligations, including paying their rent or mortgage, because of the coronavirus.