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Employment and support allowance

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I have two tenants in receipt of housing benefit; I am paid directly by the local authority. Housing benefit has been suspended since the tenants are required to move onto employment and support allowance (E&SA), and need to be assessed. They have both been on some sort of disability benefit. The assessment phase for E&SA is apparently 13 weeks.

Question: is it likely that the HB will remain suspended for the full 13 weeks?

If it is decided the tenants are capable of work, they are apparently placed in the 'work related activity group' from week 14 to week 52. After week 52, my understanding is that if they have no work, they get no benefit?

Question: during weeks 14 to 52, will the tenants get housing benefit?

The business model that I have run for many years across my portfolio has been housing benefit, mostly with direct payments. With the Welfare Reform Act 2012, E&SA, pending Universal Benefit with no possibility of direct payment, this model now seems fundamentally flawed. Moving to professional employed people would seem to be a very expensive route - evicting existing tenants over circa 13 weeks with no rent, updating and re-decorating houses, voids in doing so.

Question: are there any other lanlords who have moved out of HB sector recently because of the above.

05/08/2012 00:00

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