LA Welfare Direct 6/2026

Q: 贰诲颈迟辞谤颈补濒听听

As this June edition听of the听 LA 听Welfare Direct bulletin lands with you, I hope you鈥檝e managed to听enjoy some听of the听recent听good weather听but I鈥橽u003cabbr title="millions">m sure for some, like me, you鈥檙e听actually听not too sorry to see things cool down a bit!听 As usual, this edition听contains听a range of important updates,听including enhancements to the听 SHBE (Single Housing Benefit Extract)听data sharing solution听and the onboarding plan for a new internet-based听solution for access to Searchlight.听For the latter, please do look out for the form that is to be issued shortly as听it鈥檚听important that this information is returned to ensure a smooth听rollout. I also wanted to highlight the听published statistics on fraud and error in the benefits system听and the fall in the Housing Benefit overpayment rate听in听the听financial year ending听( FYE )听March听2026 from听the听 FYE 听March听2025.听It鈥檚听good to see this moving in the right direction听and thank you for the important part you have played in this. I hope you find this edition helpful and please do send on any feedback,听which is always听welcomed, to听 lawelfare.correspondance@dwp.gov.uk 听听 Donna Thompson听 Head of Local Authority Grants

Q: Change of tax year for听HB听Matching Service听self-assessment rules

26. At present, the HB 听Matching Service ( HBMS ) self-assessment referrals are matched against the tax year 2023 to 2024.听听 27. From May听2026, HBMS referrals听are听matched against the tax year 2024 to 2025.听听鈥齖u003c/p> 28. This means all听 LAs 听will听be听receiving听higher volumes of referrals and听possible duplications听within the first couple of months of this change听(May and June 2026). However, volumes will start to decrease by month three of implementation. 29. LAs will be aware that changes to the tax year for HBMS are implemented in May of each year in line with HM Revenue and Customs procedures.鈥€齖u003c/p> 30. The following rules, which are detailed in the HMBS rule guide held on听Glasscubes听will be听impacted:鈥€齖u003c/p> HBSA002鈥€齖u003c/li> HBSA003鈥齖u003c/li> HBSA004鈥齖u003c/li> HBHB405鈥齖u003c/li> 31. If you have any questions, you can contact听 lawelfare.datamatching@dwp.gov.uk

Q: Updated Service Level Agreement:听HB听recovered by听DWPs鈥� Debt Management

32. The Service Level Agreement for the听 FYE 听March 2025 and March 2026, between DWPs鈥櫶鼶ebt Management and听 LAs 听has been updated for the FYE March 2027 and 2028.听 33. This recent update was agreed by your Practitioners鈥� Operational Group ( POG ) representatives in May 2026.听 34. It has been placed on听Glasscubes听and Debt Management will continue to review it every two years.听听 35. If you have any questions about the content of this article, contact caxtonhouse.lapedpdpsupport@dwp.gov.uk

Q: Reminder:听HB听appeals to the First-tier听Social Security and Child Support听Tribunal

36. LAs 听are reminded that where an听 HB 听appeal to the First-tier Social Security and Child Support Tribunal has another party听(such as both the tenant and the landlord) and they have redacted any personal information听(such as the National Insurance number) they must notify the Tribunal of any redactions at the time of submitting the response. 37. Any questions听regarding听this article should be sent to听 sscsa-consumer-services@Justice.gov.uk

Q: Decision of the Upper Tribunal: Contrived tenancies in supported accommodation

38. On 20 April 2026, the Upper Tribunal ( UT ) considered two cases, F.Y.E v Middlesbrough City Council and G.P.Z v Sunderland City Council.听听 39. The First-tier Tribunal ( FtT ) had found in each case that the claimant鈥檚 liability had been created to take advantage of the听 HB 听scheme, as outlined in Regulation 9(1)(l) of the Housing Benefit Regulations 2006.听 40. The funding model used in these cases is common and can be a legitimate one. A company听acquired听a property and adapted it to be suitable for providing supported accommodation. The company let the premises, in this case to a charity. The charity provides accommodation and support for HB claimants. 41. The听 FtT 听did not suggest that all supported housing funding structures of this type are inherently unlawful. However, the properties were bought by one company and immediately听sold to another at a huge profit. They were then let to a听charity听and the same individual was involved in each of the companies and the charity, as well as having a role in a company that provided financial support for the charity.听 42. The UT upheld the original听 FtT 听decision of contrivance. See the full听 UT decision 听鈥齖u003c/p> 43. This decision does not change the law but is useful for听 LAs 听to be aware of when examining similar funding arrangements.

Question 1

Contact

Accepted Answer

If you have queries about the:

technical content of this bulletin then contact details are given at the end of each article
general content and distribution of this bulletin, contact lawelfare.correspondence@dwp.gov.uk

Question 2

Who should read

Accepted Answer

All Housing Benefit colleagues, County Councils and wider if appropriate

County Councils: Please note the articles at paragraphs 18 to 25, and 26 to 31 are for your attention.

Question 3

Action

Accepted Answer

For information.

Recipients may freely reproduce this bulletin.

Question 4

贰诲颈迟辞谤颈补濒听听

Accepted Answer

As this June edition听of the听LA听Welfare Direct bulletin lands with you, I hope you鈥檝e managed to听enjoy some听of the听recent听good weather听but I鈥橽u003cabbr title="millions">m sure for some, like me, you鈥檙e听actually听not too sorry to see things cool down a bit!听

As usual, this edition听contains听a range of important updates,听including enhancements to the听SHBE (Single Housing Benefit Extract)听data sharing solution听and the onboarding plan for a new internet-based听solution for access to Searchlight.听For the latter, please do look out for the form that is to be issued shortly as听it鈥檚听important that this information is returned to ensure a smooth听rollout.

I also wanted to highlight the听published statistics on fraud and error in the benefits system听and the fall in the Housing Benefit overpayment rate听in听the听financial year ending听(FYE)听March听2026 from听the听FYE听March听2025.听It鈥檚听good to see this moving in the right direction听and thank you for the important part you have played in this.

I hope you find this edition helpful and please do send on any feedback,听which is always听welcomed, to听lawelfare.correspondance@dwp.gov.uk听听

Donna Thompson听

Head of Local Authority Grants

Question 5

鲍辫诲补迟别:听SHBE听Application Programming Interface data sharing solution enhancement and听monitoring of submissions

Accepted Answer

1. The Department for Work and Pensions (DWP) has enhanced the Single Housing Benefit Extract (SHBE) Application Programming Interface (API) data sharing solution. Previously, Housing Benefit (HB) claimant details were matched to Searchlight using a strict criterion, which resulted in a high number of matching failures that local authorities (LAs) had to investigate.听

2. To address this,听DWP has introduced new matching rules. Records will match where any three of the following details align:

first name听
last name听
date of birth听
辫辞蝉迟肠辞诲别听
National Insurance number听

3. This improvement should significantly reduce matching errors and manual follow鈥憉p activity for LAs.

Monitoring SHBE听API submissions

4. DWP has听identified听periods where the SHBE API data has not been received from some LAs. When those LAs were contacted,听it appears the most common causes听were:

API certificates not renewed before expiry听
changes to LA IP addresses not notified to DWP within the听six鈥憌eek听service level agreement

5. As DWP teams rely more on SHBE API data instead of the monthly clerical report, it is essential that the flow of the SHBE API data is continuous. Therefore, LAs are asked to work closely with their IT departments to ensure that the SHBE API connectivity is听maintained听and treated as a priority.听

6. If LAs have any queries听regarding听the SHBE API, contact lawelfare.ladsdeliveryteam@dwp.gov.uk

Question 6

Same day access to Real Time Information data within Verify Earnings and Pensions

Accepted Answer

7. The introduction of听same听day听access to Real Time Information data听within Verify Earnings and Pensions (VEP)听will remove the current 24-hour delay when setting an听interest for听HB, Local Council Tax听Reduction听and other enquiries. The VEP team is听currently planning delivery with implementation expected听by听end of June 2026.

Next steps

8. Further details, including the confirmed implementation date and updated VEP guidance will be published on听Glasscubes.听All staff should continue to follow existing VEP guidance until the updated version is issued.听

9. Any queries should be sent to lawelfare.datamatching@dwp.gov.uk

Question 7

Clarification on the听HB听Award Accuracy Initiative Year 7 end-of year arrangements

Accepted Answer

10. Performance Relationship Managers have received听a number of听queries from LAs seeking clarification on the end-of-year arrangements for听the听HB听Award Accuracy (HBAA) Initiative Year 7 for the听financial year听ending (FYE) March 2027, specifically in relation to the:听

duration of reviews听and reporting period听
end of year performance activity and the run-on period听
final cut-off dates

Duration of reviews and reporting period

11. The formal reporting period for HBAA Year 7 covers the whole of the听FYE听March 2027. LAs should continue to progress reviews throughout this period in line with initiative guidance.

End of year performance activity and run-on period

12. To maximise the capture of HBAA Initiative outcomes and support return on investment within the reporting year,听data will continue to be captured and refreshed for up to three months after the end of the听financial year.听

13. This means activity can continue to be reflected in performance returns up to and including the FYE March 2027 SHBE submissions, with updates continuing through the听subsequent听three month period.

14. This approach ensures that outcomes from late-stage reviews and interventions are appropriately recorded and counted within the Year 7 reporting period.

Final听cut-off听dates

15. LAs will be notified no later than January 2027 of the final cut-off dates and any associated requirements for capturing outcomes for HBAA Year 7.听

16. LAs should continue to prioritise review activity throughout the year and into the run-on period to ensure maximum capture of Initiative outcomes.听

17. If you have any queries, please contact lawelfare.pdt@dwp.gov.uk

Question 8

鲍辫诲补迟别:听DWP听Public Services听Network removal and replacement with an听internet based听solution

Accepted Answer

18. LAs, other government departments听and IT software suppliers currently access Searchlight through the Public Services Network (PSN).听

19. The DWP听PSN is scheduled for decommissioning in early 2027. As a result, all users must migrate to a new internet-based solution to ensure continued access to Searchlight services. This transition will follow a phased onboarding plan.听

20. The onboarding process has been tested with a small group of LAs over recent months and we would like to take this opportunity to thank those LAs who have supported this testing phase and provided valuable feedback.听

21. As testing nears completion, we are now ready to begin the national rollout of the internet-based solution. The rollout will be delivered in tranches听and听DWP will contact each LA when their听allocated听rollout tranche is due to begin.

LA听certificates听and IP addresses

22. To mitigate the risk of the removal of the PSN, DWP is proposing:

Certification management changes: DWP will only issue certificates to LAs, not their Contracted Service Providers (CSPs). LAs must manage sharing certificates with them to ensure clear data sharing agreements are in place.
IP听safelisting听changes: DWP will only safelist IP addresses for LAs, not their CSPs. LAs must work with them to manage access听to ensure听trusted environments have clear data sharing agreements.

Next听steps

23. We will shortly issue a form to all LAs using their single inbox. This will capture the information DWP听requires听prior to the LA go-live, including:听

the LA鈥檚 internet-facing IP address听
extra terms and conditions relating to internet and device security听听
updated contact details for the听appropriate LA听representatives

24. Once this information has been received, DWP will complete the necessary internal steps and contact you again when your听allocated听rollout tranche is听initiated. This will involve further technical activity where your IT department will need to provide support to ensure your continued access to Searchlight.听听

25. If you have any questions, please contact lawelfare.ladsdeliveryteam@dwp.gov.uk

Question 9

Change of tax year for听HB听Matching Service听self-assessment rules

Accepted Answer

26. At present, the HB听Matching Service (HBMS) self-assessment referrals are matched against the tax year 2023 to 2024.听听

27. From May听2026, HBMS referrals听are听matched against the tax year 2024 to 2025.听听鈥齖u003c/p>

28. This means all听LAs听will听be听receiving听higher volumes of referrals and听possible duplications听within the first couple of months of this change听(May and June 2026). However, volumes will start to decrease by month three of implementation.

29. LAs will be aware that changes to the tax year for HBMS are implemented in May of each year in line with HM Revenue and Customs procedures.鈥€齖u003c/p>

30. The following rules, which are detailed in the HMBS rule guide held on听Glasscubes听will be听impacted:鈥€齖u003c/p>

HBSA002鈥€齖u003c/li>
HBSA003鈥齖u003c/li>
HBSA004鈥齖u003c/li>
HBHB405鈥齖u003c/li>

31. If you have any questions, you can contact听lawelfare.datamatching@dwp.gov.uk

Question 10

Updated Service Level Agreement:听HB听recovered by听DWPs鈥� Debt Management

Accepted Answer

32. The Service Level Agreement for the听FYE听March 2025 and March 2026, between DWPs鈥櫶鼶ebt Management and听LAs听has been updated for the FYE March 2027 and 2028.听

33. This recent update was agreed by your Practitioners鈥� Operational Group (POG) representatives in May 2026.听

34. It has been placed on听Glasscubes听and Debt Management will continue to review it every two years.听听

35. If you have any questions about the content of this article, contact caxtonhouse.lapedpdpsupport@dwp.gov.uk

Question 11

Reminder:听HB听appeals to the First-tier听Social Security and Child Support听Tribunal

Accepted Answer

36. LAs听are reminded that where an听HB听appeal to the First-tier Social Security and Child Support Tribunal has another party听(such as both the tenant and the landlord) and they have redacted any personal information听(such as the National Insurance number) they must notify the Tribunal of any redactions at the time of submitting the response.

37. Any questions听regarding听this article should be sent to听sscsa-consumer-services@Justice.gov.uk

Question 12

Decision of the Upper Tribunal: Contrived tenancies in supported accommodation

Accepted Answer

38. On 20 April 2026, the Upper Tribunal (UT) considered two cases, F.Y.E v Middlesbrough City Council and G.P.Z v Sunderland City Council.听听

39. The First-tier Tribunal (FtT) had found in each case that the claimant鈥檚 liability had been created to take advantage of the听HB听scheme, as outlined in Regulation 9(1)(l) of the Housing Benefit Regulations 2006.听

40. The funding model used in these cases is common and can be a legitimate one. A company听acquired听a property and adapted it to be suitable for providing supported accommodation. The company let the premises, in this case to a charity. The charity provides accommodation and support for HB claimants.

41. The听FtT听did not suggest that all supported housing funding structures of this type are inherently unlawful. However, the properties were bought by one company and immediately听sold to another at a huge profit. They were then let to a听charity听and the same individual was involved in each of the companies and the charity, as well as having a role in a company that provided financial support for the charity.听

42. The UT upheld the original听FtT听decision of contrivance. See the full听UT decision听鈥齖u003c/p>

43. This decision does not change the law but is useful for听LAs听to be aware of when examining similar funding arrangements.

Question 13

Fraud and error in the benefit system听national statistics

Accepted Answer

44. The monetary value of fraud and error national statistics for鈥痶he鈥痋u003cabbr title="financial year听ending">FYE March 2026鈥痺ere published on 14鈥疢ay 2026:鈥齖u003c/p>

45. Do note:听All monetary values to follow are expressed in billions (bn) and millions (m).

Summary for all听DWP鈥痓别苍别蹿颈迟蝉

46. The following鈥痶able shows the comparison to鈥痶he FYE March 2025 for all DWP benefits.鈥疍o note, for鈥痋u003cabbr title="Housing Benefit">HB鈥痶he client group reviewed in鈥痶he鈥痋u003cabbr title="financial year听ending">FYE鈥疢arch 2025 was Working Age,听whereas听the client group reviewed in the FYE March 2026 was Pension age:

Benefit type	Percentage of total (2026)	Total spend (2026)	Percentage of total (2025)	Total spend (2025)
Estimate of the total rate of overpayments	3.2%	拢9.9产苍	3.3%	拢9.5产苍
Rate of听Fraud overpayments	2.2%	拢6.8产苍	2.2%	拢6.5产苍
Rate of Claimant听Error overpayments	0.6%	拢1.85产苍	0.7%	拢1.9产苍
Rate of Official Error overpayments	0.4%	拢1.2产苍	0.4%	拢1.0产苍
Estimate of the total rate of underpayments	0.4%	拢1.2产苍	0.4%	拢1.2产苍
Total unfulfilled eligibility rate	1.2%	拢3.7产苍	1.3%	拢3.7产苍

47. The鈥痋u003cabbr title="Housing Benefit">HB鈥痮verpayment rate was鈥�7.2%鈥�(拢1,100m)鈥痜or鈥痶he鈥痋u003cabbr title="financial year听ending">FYE March 2025,听which has reduced to 6.2% (拢800m)鈥痜or鈥痶he鈥痋u003cabbr title="financial year听ending">FYE March 2026听and听breaks down as follows:

Overpayments type	Overpayment rate (2026)	Overpayment spend (2026)	Overpayment rate (2025)	Overpayment spend (2025)
Overpayments due to Fraud	3.6%	拢460尘	4.1%	拢630尘
Overpayments due to Claimant Error	2.1%	拢270尘	2.5%	拢390尘
Overpayments due to Official Error	0.5%	拢60尘	0.6%	拢90尘

48. Do note鈥痵ome key points:

Although there were no statistically significant changes in overpayments due to Capital at the total鈥痋u003cabbr title="Housing Benefit">HB鈥痩evel, Capital overpayments for Pension age claims (both non-passported and passported groups combined) saw a statistically significant fall to 3.3% in鈥痶he FYE鈥疢arch 2026 from 4.5% in鈥痶he FYE鈥疢arch 2025.听
The HB underpayment rate was 0.3% (拢40m) in the FYE March 2026, compared with 0.4% (拢60尘) in the FYE March 2025.听
The total HB unfulfilled eligibility rate fell to 1.0% (拢130 million) in the FYE March 2026, dropping from 1.2% in the FYE March 2025.

Question 14

Update: Move to Universal Credit

Accepted Answer

49. Following a听statement made to the House of Commons on 20 April 2026, the Minister for Social Security and Disability, Sir Stephen Timms,听wrote听to听LA听Chief Executive Officers and key stakeholders. In his letter, he highlighted the importance of collaboration听with them, other voluntary organisations and the disability sector, He also thanked them for their crucial role in supporting claimants throughout the transition process.听

50. Universal Credit (UC) now supports over 8.4 million people, with more than 1.9 million successfully moved from legacy benefits through the 鈥楳ove to UC鈥� campaign. Significant milestones include the closure of tax credits in April 2025, which saw over 1 million claimants transferred,听and the closure of Income Support and income-related Jobseeker鈥檚 Allowance in April 2026, affecting 135,000 customers. These steps have simplified the welfare system while ensuring claimants received听appropriate support.

51. Progress has also been made with income-related Employment and Support Allowance (ESA(IR)), with 879,000 households issued migration notices by December 2025, most of whom have already claimed听UC.

52. The final stage of the transition focuses on the remaining ESA(IR) and Working Age听HB听claimants. These benefits (apart from HB for those in temporary accommodation and supported accommodation) will close on 30 June 2026.

53. Around 500 claimants have been听identified听who need听additional听help managing their claims through a Personal or Corporate Acting Body. These individuals are temporarily exempt from the June 2026 closure deadline to ensure they are not disadvantaged while proper arrangements are made. However, this exemption is not indefinite and a final closure date for these cases will be confirmed later.听

54. It is important that ongoing collaboration with stakeholders continues to support the remaining claimants听to move听to UC.

Question 15

POG听and Local Authority Welfare Steering Group

Accepted Answer

55. The last Local Authority Welfare Steering Group鈥痬eeting took place on 21 May 2026. Agenda items included听LA听funding, bringing the administration together for HB听and Pension Credit, Legacy HB Discovery,听Move听to听UC, supported housing and the Crisis and Resilience Fund.听

56. Both groups鈥� meetings are held bi-monthly on alternate听months听so the next meeting is听POG, scheduled to take place on鈥�18 June 2026.听

57. If you have any questions鈥痳egarding鈥痶opics raised at these consultation groups, email鈥痋u003ca href="mailto:lawelfare.correspondence@dwp.gov.uk">lawelfare.correspondence@dwp.gov.uk

Question 16

HB Decisions by the听UT

Accepted Answer

58. Decision Making and Appeals (DMA) Leeds is not aware of any cases that have been decided by the听UT.听

59. You can read听all听Decisions of the UT听on听their website. Do be aware that there is an undefined time lapse between decisions being issued and their appearance on the website.

Question 17

HB cases awaiting decision by the UT

Accepted Answer

60. DMA听Leeds听has听not听been made aware of听any听case that听is听awaiting decision by the UT听since our听previous听LAWD听entry in听May 2026.听

61. If you have any queries about cases before the UT Judges or courts, please contact us by email at听quarryhouse.dmaleedscustomersupportservices@dwp.gov.uk

Question 18

New听Legislation

Accepted Answer

62. The听following听Statutory Instruments (SIs)听have听been laid:

2026听No.听488听鈥撎齌he Warm Home Discount (Scotland) Regulations 2026,听came听into force on 1 May 2026听
2026 No. 499 鈥� The Immigration and Asylum (Provision of听Accommodation to Failed Asylum-Seekers (Amendment) Regulations 2026,听coming into force on 2 June 2026听
2026听No. 519 鈥� The English Devolution and Community Empowerment Act 2026 (Consequential Amendments and Revocations) (England) Regulations 2026,听coming into force on 4 June 2026听
2026 No.听523 鈥� The Armed Forces Pension (Amendment) Regulations 2026,听coming into force on 11 June 2026
2026 No.听535 鈥� The Health Protection (Notification) (Amendment) Regulations 2026,听came听into force on 18 May 2026听
2026 No.听538 鈥� The Income Tax (Exemption of Kinship Allowance Payments in Kinship Zones)听Order 2026, coming into force on 9 June 2026听
2026 No. 544 鈥� The Local Government Pension Scheme (Pooling, Management and Investment of Funds) Regulations 2026,听coming into force on 30 June 2026听
2026 No. 545 鈥� The Local Government Pension Scheme (Amendment) (Governance)听Regulations 2026, coming into force on 30 June 2026
2026 No. 559 鈥� The Employment Rights Act 2025 (Commencement No. 4 and Transitional and Savings听Provisions) Regulations 2026, made on 26 May 2026

63. Copies of SIs can now be downloaded from听legislation.gov.uk

Question 19

What鈥檚 new on our HB pages on 扒哥吃瓜

Accepted Answer

64. The following items can be found on the website link shown:

Document Type	Subject	Link
LAWD bulletin	Editorial听 Local authority funding for Department for Work and Pensions commissioned听work delivered by IT software suppliers听 Changes to HB Matching Service Rule HBUC105听 HB subsidy guidance manual for the听financial year听ending March 2026听鲍辫诲补迟别:听Identifying听Local Vulnerability and progress towards a Minimum Viable Product Update: CHIS national rollout progress听 Insight and good practice in the administration of HB for those in temporary accommodation听 Publication of HB speed of processing statistics for October 2025 to December 2025听 Practitioners鈥� Operational Group and LA Welfare Steering Group听 HB Decisions by the Upper Tribunal听 New Legislation听 What鈥檚听new on our HB pages on www.gov.uk	LAWD5/2026

扒哥吃瓜