Admin Court to hear key case on housing benefit assessment

A local authority is facing a judicial review challenge over its decision to take Disability Living Allowance into account when assessing whether people should also receive Discretionary Housing Payments.

The hearing over Sandwell Council’s policy will be heard at the Administrative Court in Birmingham.

Irwin Mitchell, the law firm advising the claimants (a disabled couple), said they would argue that the local authority’s policy amounted to:

  • disability discrimination; and
  • a breach of British human rights law.

The law firm said the case was thought to affect hundreds of disabled people across the country.

Irwin Mitchell lawyer Fiona McGhie said changes to the housing benefit scheme in 2013 – with the introduction of the under-occupancy charge or ‘bedroom tax’ – meant her clients faced a shortfall between their benefits and outgoings. As a result they had to apply for a DHP.

But, she said, “the key problem is that Sandwell, like many other councils, is now taking into account DLA when decided on the amount of DHP they are eligible to receive – a decision we believe is unreasonable and not theirs to make. The effect of the decision is to drive disabled people into poverty.”

McGhie said her clients had been prepared to move to a smaller property but there was a lack of suitable accommodation at the present time. She said this meant they had “little choice” but to continue to use their DLA to meet the shortfall caused by receiving a lower amount of DHP.

The Irwin Mitchell lawyer added: “This is a lose-lose situation for our clients – not only do they receive a smaller amount of DHP due to getting DLA, but as a result they then have to use part of their DLA to meet housing costs which we believe should be covered in their entirety by DHP. The lack of availability of alternative accommodation also means they are locked into this scenario…..

“This policy essentially means councils are determining or passing judgment on what disabled people should be using their DLA for without clear legal authority to do this. DLA is paid to meet disability related costs – not housing costs.”

A Sandwell Council spokesperson said: "We are giving this matter active consideration but we believe that we have interpreted the Government's legislation correctly."