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Case Summary

1. This Upper Tribunal (Administrative Appeals Chamber) case, JB v Oxford City Council and Secretary of State for Work and Pensions, ¹JB v Oxford City Council and SSWP [2011] UKUT 136 (AAC)addressed the interpretation of “sheltered accommodation” within the context of Housing Benefit Regulations 2006.

2. The core issue was whether a claimant with severe learning disabilities, residing in shared accommodation with support staff, was entitled to have the costs of fuel and cleaning for communal areas included in his eligible rent for housing benefit purposes. The Upper Tribunal ultimately ruled in favour of the claimant, overturning the decision of the First-tier Tribunal.

Key Facts

3. Claimant’s Situation: The claimant, born in 1949, had severe learning disabilities and resided in a housing association property shared with three other tenants who have similar difficulties. 24-hour care, support, and supervision were provided by staff.

4. Disputed Costs: The local authority denied housing benefit for the portion of the rent allocated to fuel and cleaning of communal rooms, arguing that the accommodation was not “sheltered accommodation.” The weekly charges for communal rooms amounted to £19.50.

5. Previous Decisions: The local authority’s decision was initially upheld by the First-tier Tribunal before being overturned by the Upper Tribunal.

6. Subsequent Decision: Oxford City Council v B (HB) 

Key Themes & Ideas

7. Definition of “Sheltered Accommodation”: The case revolved around the lack of a statutory definition for “sheltered accommodation” in the Housing Benefit Regulations 2006 or related materials. This ambiguity led to differing interpretations by the local authority, the Secretary of State, and the First-tier Tribunal, versus the claimant.

8. The regulations state that housing benefit includes the costs of cleaning and fuel for communal areas other than rooms in all accommodation, but also includes the costs of cleaning and fuel for rooms in common use in sheltered accommodation.

9. The local authority and Secretary of State argued that “sheltered accommodation” typically involved self-contained properties designed for older or vulnerable individuals, with a resident warden and emergency call system, requiring some level of independent living.

10. The Upper Tribunal rejected this narrow interpretation, finding that the emphasis on self-contained accommodation and the presence of a warden/manager/alarm system was misplaced.

Statutory Interpretation and Purpose of Housing Benefit

11. The Upper Tribunal emphasised that the term “sheltered accommodation” should be interpreted in a way that aligned with the purpose of the housing benefit scheme: to assist individuals who might otherwise be unable to afford housing due to their vulnerability or specific needs, including disabilities that may lead to greater housing costs.

12. The Judge stated, “The meaning of the term ‘sheltered accommodation’ in the Housing Benefit Regulations 2006 must be understood in the context of the housing benefit scheme and cannot be governed by policy or guidance or distinctions used for what the Circular referred to above called ‘general counselling and support'”.

13. He further stated: “In this context I agree with Mr Kolinsky’s general argument, and I also agree with him that the fact that the term ‘sheltered accommodation’ is left undefined means that it is not to be given a narrow or technical meaning”.

Rejection of Overly Restrictive Interpretations

14. The Tribunal strongly criticised the argument that the more help a person needed, the less financial assistance they would receive in terms of housing benefit covering communal area costs.

15. The Tribunal stated that the respondents’ argument would mean “that the more help a person needed, in the sense of being less able to live completely independently, the less financial help they would get in terms of whether housing benefit could also cover the fuel and heating costs of the common rooms.”

16. Judge Levenson found this logic to be flawed and would “require very clear statutory language indeed to persuade me that that was either the policy or the meaning of the housing benefit scheme.”

Broad Interpretation Favoured

17. The Upper Tribunal concluded that “sheltered accommodation” should be broadly understood to include accommodation provided for individuals who are more vulnerable than most, irrespective of a strict definition of “warden” or the presence of an alarm system. The crucial factor was that the accommodation addressed the specific vulnerabilities of the residents.

18. The Judge wrote, “‘Sheltered accommodation’ clearly means something more than ordinary accommodation or shelter, otherwise the distinction would not be made in paragraph 8 of Schedule 1 to the regulations. This can only really mean that it is accommodation provided for people who are in some way (and probably for some defined reason) more vulnerable than most people are, or are vulnerable in a particular kind of way”.

Impact & Implications

19. Sets a Precedent: This case served as a lead case, establishing a precedent for how “sheltered accommodation” should be interpreted in similar cases involving individuals with vulnerabilities residing in supported living arrangements. It was expected to impact numerous other claimants, both within and outside the respondent local authority’s area.

20. Challenges Narrow Interpretations: The decision challenged overly restrictive interpretations of “sheltered accommodation” that prioritised physical characteristics (self-contained units, wardens, alarm systems) over the underlying purpose of the housing benefit scheme, which is to support vulnerable individuals’ housing needs.

21. Emphasis on Vulnerability: The ruling emphasised the significance of considering the claimant’s vulnerability and specific needs when determining eligibility for housing benefit related to communal area costs.

Case Summary

1. This is a UK Court of Appeal (Civil Division) case concerning the interpretation of “sheltered accommodation” within the context of Housing Benefit Regulations 2006.

2. Oxford City Council appealed a decision that B a resident with severe learning disabilities, resided in sheltered accommodation. The crucial point was whether Mr. B was therefore entitled to have his share of the costs of fuel and cleaning of common areas included in his eligible rent calculation for housing benefit. The Court of Appeal ultimately dismissed the appeal, affirming that the accommodation qualified as sheltered accommodation.

Key Themes & Ideas

3. Definition of “Sheltered Accommodation”: The central issue is the meaning of “sheltered accommodation” as the term is not defined within the Housing Benefit Regulations or any other statutory material.

4. The Court grapples with the lack of a statutory definition and rejects a rigid, prescriptive interpretation. Lord Justice Sullivan states:

“Parliament did not choose to define sheltered accommodation and the Court should not impose a prescriptive definition upon an inherently flexible concept which can take many different forms, and which now includes very sheltered or extra care sheltered accommodation.”

5. The council argued for a definition based on “essential common features” including self-contained accommodation, a warden, and an emergency alarm system (originally three features, later expanded to six), but the Court rejected this, noting that Parliament had deliberately chosen not to define it so rigidly.

6. The Court references previous observations by Judge Mesher, which suggested characteristics but not prescriptive requirements. “It is certainly not the case that accommodation is only sheltered accommodation if all or even a majority of those characteristics are present. However, characteristics of that kind should be looked at in determining whether accommodation is sheltered accommodation.”

Flexibility and Evolution of the Concept

7. The Court acknowledges that “sheltered accommodation” is a flexible and evolving concept, particularly with the increasing emphasis on care in the community.

8. The judgment references various external sources (Shelter, Elderly Accommodation Counsel, Help the Aged, Directgov) to illustrate the range of housing options falling under the umbrella of “sheltered accommodation,” including “extra care” or “very sheltered” housing.

9. The council initially attempted to distinguish these forms based on self-containment and warden services, but the court recognized the artificiality of these distinctions, particularly as applied to individuals with significant care needs.

Distinction from “Supported Accommodation” and “Care Homes”

10. The Council argued that Mr. B’s accommodation was “supported accommodation” rather than “sheltered accommodation” due to his level of dependence. The court rejected this distinction as the regulations do not refer to or make this distinction.

11. The appellant considered the respondent’s accommodation to be “one rung below care homes.”

12. The court acknowledges the existence of a spectrum of accommodation types between a care home and standard housing. But also makes it clear that this does not necessarily disqualify accommodation as sheltered.

13. A key differentiator between sheltered accommodation and a care home, according to the Court, is the nature of occupancy: “Typically the occupiers will occupy their rooms under licence… those having exclusive possession of their own living space within that sheltered accommodation will be in occupation, and will be liable to pay the rent and service charges which are eligible for housing benefit, pursuant to a tenancy.” This highlights the tenancy agreement and the responsibility for rent and service charges as a factor differentiating sheltered accommodation from care homes.

Purpose of the Regulations and “Anomalies”

14. The Court addresses the potential “anomaly” of residents in accommodations like Mr. B’s being eligible for housing benefit for communal areas when residents in self-contained sheltered accommodation would not receive the same benefit for equivalent spaces within their own units.

15. The court recognises that “Some ‘anomalies’ are inherent in a statutory scheme” and ultimately concludes that even if an anomaly exists, it is not significant enough to warrant departing from a reasonable interpretation of “sheltered accommodation.”

16. The court accepts the argument that the regulations aim to ensure adequate accommodation for vulnerable individuals, and communal rooms in sheltered accommodation often play a crucial role in providing that adequate accommodation.

Key Facts Regarding the Respondent’s Accommodation

17. Mr. B was born in 1949 and has severe learning disabilities.

18. He is a tenant of a housing association property.

19. The property houses four tenants, all with similar disabilities.

20. Each tenant has their own bedroom, and they share common areas (kitchen, bathroom, sitting rooms, toilets).

21. Care, support, and supervision are provided 24 hours a day by staff.

22. There is a room reserved for staff use.

Impact of the Decision

23. This decision clarified the definition of “sheltered accommodation” for the purpose of Housing Benefit Regulations.

24. It confirmed that a flexible and non-prescriptive approach should be adopted, taking into account the evolving nature of care provision.

25. It upheld the eligibility of individuals with significant care needs residing in accommodations like Mr. B’s to receive housing benefit for the costs of fuel and cleaning of communal areas.

26. The judge noted that the decision will impact “very many other claimants in the area of the Respondent (now the Appellant) local authority, and other local authorities.”

Case Overview

1. This Upper Tribunal (Administrative Appeals Chamber) case, Liverpool City Council v (1) NM, (2) WD (HB), addresses the eligibility of “communal water charges” for Housing Benefit (HB) in sheltered or supported housing.

2. Liverpool City Council (the Appellant) had disallowed the Housing Benefit claims of two residents (NM and WD) in relation to these charges. The First-tier Tribunal allowed the residents’ appeals, but the Council appealed to the Upper Tribunal. The Upper Tribunal Judge Knowles QC found errors of law in the First-tier Tribunal decisions and remitted both cases for rehearing.

Key Themes and Important Ideas/Facts

Issue

3. The core issue is whether service charges related to the supply of water in communal areas of sheltered or supported housing (“communal water charges”) are eligible for Housing Benefit.

“The issue in these two appeals is whether service charges relating to the supply of water in the communal areas of either sheltered or supported housing [‘communal water charges’] are eligible for housing benefit [‘HB’].”

Context: The M and D Cases

4. M Case: M was a licensee in a supported housing scheme (“P”) for 16-25 year olds. His licence agreement included separate charges for water rates, with a portion listed as “eligible for Housing Benefit” (communal water charges) and another portion listed as “not eligible for Housing Benefit” (M’s personal use of water).

5. “P” included communal areas such as corridors, a laundry, communal kitchen, a lounge, IT suite, meeting rooms, offices, disabled communal toilet, and a garden.

“It includes a schedule of service charges at M79 which lists (a) ‘water rates’ of £2.24 a week as being ‘eligible for Housing Benefit’ and (b) ‘water rates’ of £4.06 a week as being ‘not eligible for Housing Benefit’. The sum of £2.24 relates to communal water charges and the sum of £4.06 relates to M’s personal use of water in room 11A.”

6. D Case: D was an assured tenant in a sheltered housing scheme (“ASC”) for those over 55 and for younger persons with disabilities. His tenancy agreement similarly separated water charges into eligible (communal) and ineligible (personal) categories.

7. ASC included communal areas including corridors, a laundry, communal kitchen, three lounges, disabled communal bathroom, and garden.

“It includes a schedule of service charges at D72 which lists (a) ‘water rates’ of £5.95 a week as being ‘eligible for Housing Benefit’ and (b) ‘water rates’ of £3.20 a week as being ‘not eligible for Housing Benefit’. The sum of £5.95 relates to communal water charges in ASC and the sum of £3.20 relates to D’s personal use of water in his flat.”

Appellant’s Argument

8. The local authority argued that all water charges, including communal water charges, were ineligible for Housing Benefit, based on their interpretation of Regulation 12B(5) of the Housing Benefit Regulations 2006. They contrasted this with fuel charges, where a specific exemption exists for communal areas. They initially argued M’s accommodation was more akin to “ordinary” accommodation.

“The Appellant’s case before both the tribunals was founded on its belief that all water charges, including communal water charges, were ineligible for Housing Benefit regardless of whether the property was self-contained… and there is no similar provision for water charges which are therefore ineligible.”

Preliminary Issue: Sheltered vs. Supported Accommodation

9. The Appellant tried to distinguish between D (sheltered accommodation) and M (supported housing). They argued M’s licence agreement, instead of a tenancy, made it akin to ordinary accommodation. The Judge rejected this distinction, finding both M and D resided in “sheltered accommodation” according to the regulations, therefore water use in halls, passageways, and rooms of common use should be considered.

“Thus I reject the Appellants’ argument on this preliminary issue. I accept the Respondent’s submission that the accommodation occupied by both D and M fell within the term ‘sheltered accommodation’ as found in the Regulations and specifically in sub-paragraph 8 of Schedule 1.”

Regulation 12B(5) and Personal Water Use

10. The Upper Tribunal Judge determined that Regulation 12B(5) concerns the apportionment of water charges for personal use, not communal water charges, when the claimant isn’t separately billed. This regulation was misapplied by the First-tier Tribunal. The judge found it doubtful that either P or RGL had correctly calculated M and D’s charges for personal water use and remitted this for rehearing.

“I have decided in accordance with the Respondents’ submission that Regulation 12B(5) concerns the apportionment of water charges for personal use when the claimant is not separately billed. This regulation has no application to communal water charges.”

Schedule 1 and Ineligible Service Charges

11. The Judge determined that communal water charges are not “day to day living expenses” under Schedule 1. Additionally, they are connected to the provision of adequate accommodation, as water is essential for cleaning, hygiene, and maintenance of communal areas.

“In my judgment, communal water charges are not ‘day to day living expenses’ within the meaning of sub-paragraph 1(a) of Schedule 1… Applying that authority, I find that communal water charges are charges related to the provision of adequate accommodation.”

Laundry Exception

12. The Tribunal erred by not determining the proportion of communal water charges attributable to laundry use, which is ineligible for HB (except for cleaning the laundry area and equipment).

“Second, as the Respondents conceded, the tribunal did not determine the proportion of the communal water charges attributable to laundry use which were ineligible for HB.”

Outcome

13. The Upper Tribunal allowed the appeal to a limited extent, setting aside the First-tier Tribunal decisions and remitting both cases for re-determination. The new tribunal must determine (a) how the charges for personal water use were calculated and (b) the proportion of communal water charges attributable to laundry use.

“I have found in favour of the Appellant to the limited extent identified in this appeal and allow the appeal in both cases. I remit both cases for re-determination by a differently constituted tribunal in accordance with the principles set out in this decision.”

Implications

14. This case clarifies the interpretation of the Housing Benefit Regulations regarding communal water charges in sheltered and supported housing. It confirms that communal water charges are generally eligible for Housing Benefit, but it also highlights the importance of correctly calculating personal water use charges and excluding laundry-related water charges.

15. The case also confirms the term “sheltered accommodation” to also include “supported accommodation” which may offer licences instead of tenancies.