Court battle over bedroom tax and benefits

A disabled couple in the borough are challenging laws which take disability benefits into account when councils decide if they are eligible benefits to cover housing.

They have won the right to a judicial review over the Government policy implemented by Sandwell Council to take place on October 31.

The policy on discretionary housing payments (DHP) is being challenged in a judicial review at the Administrative Court in Birmingham.

The payments can be awarded to people in receipt of housing benefit who are struggling to pay rent.

Legal experts have called into question the policy to take disability living allowance (DLA) into account when deciding if someone is eligible for discretionary housing payments (DHP).

DHP has been used by some tenants to help them cover rent if their housing benefit is cut because they have spare rooms, a policy dubbed the bedroom tax by critics.

But Sandwell Council today said it was forced to abide by the rules following government guidance.

DLA is made of two parts. One part is given to help with care needs like help at home or cooking meals.

The second is given to help people with certain mobility problems.

Sandwell Council's deputy chief executive John Garrett said it could be a 'test case' for the Government policy on housing support including the wider applications of spare room subsidy, also known as bedroom tax.

"We are following government guidance that states that the mobility component of DLA along with some other income should be disregarded when awarding DHP," Mr Garrett said.

"However, this does not apply to the care component of DLA.

"Therefore, this is a test case of the Government's removal of the spare room subsidy and their guidance for determining applications for Discretionary Housing Payments.

"The couple who are subject of this Judicial Review have been affected by the Government's changes to Housing Benefit."

He added: "The judge stated when he allowed the Judicial Review that it had little chance of being successful."

Legal firm Irwin Mitchell are acting on behalf of the couple, who have not been named, and say they have been affected by the change in policy.

Spokeswoman Fiona McGhie said: "Our clients have lived in their current property for nearly 20 years but, like many other families, they have seen their housing benefit reduced due to having a spare bedroom – an issue referred to widely as the bedroom tax.

"While they would be happy to move to a small property in order to offset this, the lack of such suitable accommodation means they are unable to and therefore need to apply for a DHP to be able to afford to live in their home."

She added: "We are now hard at work preparing for the hearing in October and are determined to ensure the voices of our clients, and others affected by this issue in other areas, are heard on this vital issue."