The exercise of judicial discretion in rent arrears cases - Sheffield ...

Housing benefit
Linked to these general problems which may lead to arrears, is the specific issue of housing
benefit. Over 60% of tenants of social landlords were claiming housing benefit in 2002/03
(ODPM, 2004). A number of studies have pointed to the fact that rent arrears may be
attributable to delays and problems in housing benefit administration. In particular delays in
processing (Pawson et al, 2005, Audit Commission, 2002, Raynsford Dallison, 1992), the
recovery of overpayments (following a move into work by the tenant) (Pawson et al, 2005,
Evans, 2003), the complexity of the housing benefit system (Pawson et al, 2005, Blandy et al
2002, and Ford and Seavers, 1998), and communication difficulties between the landlord
and the housing benefit department (Pawson et al, 2005, Blandy et al, 2002, and Ford and
Seavers, 1998) may all contribute to the accumulation of arrears.
The impact of housing benefit (HB) on decisions to move towards possession are clear from
Pawson et al (2005, pp. 67 - 68):
“…the vast majority of landlords responding in the postal survey (over 83 per cent of
LAs [local authorities] and 95 per cent of HAs [housing associations]) reported that
they sometimes issued NSPs where HB claims remained outstanding. Similarly, 60
per cent of LAs and 79 per cent of HAs would, in some cases, enter a case in court
even where there was an unresolved HB application.
Case study evidence shows that the commonest scenario where a Notice will be
served on a tenant awaiting settlement of a Housing Benefit claim is where it is
considered that the delay results from the tenant’s own failure to provide requested
information (e.g. identification documents required under the HB verification regime).
By and large, housing associations appeared more likely than local authorities to
issue Notices where HB claims remained outstanding for reasons other than those
described above. In at least two case study HAs there was an explicit policy of using
Notices to pressurise Housing Benefit Departments to prioritise specific cases (in
breach of Housing Corporation advice (Housing Corporation, 2004)). It was,
however, apparent that in some areas HB officers routinely advised HAs to initiate
court action to trigger ‘fast track’ processing of cases. The rent arrears procedure
manual of one case study HA explicitly advised officers to serve Notices on all
tenants whose arrears exceeded a given threshold value, making clear that such
action was to be taken irrespective of the tenant’s HB status ‘to protect the
association’s interest’. The extent to which the tenants affected were made aware
that Notices issued to influence HB casework prioritisation did not represent any
genuine intention to pursue legal action was not clear.”
The impact of housing benefit issues on the decisions of district judges is something which
we have sought to explore in this study and is considered in Chapter 7.
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