Social Welfare Law: Dispelling Common Myths

Presented by Niki Durosaro, Solicitor from Release Drugs Charity

Session Outline

Debt: Debt Collectors vs. Bailiffs Debt Enforcement & ‘Blacklisting’

Housing: Under 35’s & Housing Benefit Non-dependent deductions Homelessness

Criminal: Bail Conditions, Search Warrants & Raids

Debt Collectors vs. Bailiffs

Debt Collectors

• Many lenders use debt collection companies to collect debts on their behalf because it works out cheaper for them. This is a normal part of the recovery process and you shouldn't worry if you are contacted by a debt collector for money you owe.

• Debt collectors don't have any extra powers but you may find that they're more persistent.

• Don't let debt collectors pressure you into making arrangements you can't keep up. Treat debt collectors in the same way as you would any other creditor.

Debt Collectors continued…• Some debt collectors may pretend to have more legal powers than they

really have. For example, they may say that they can take your goods away, when in fact only a bailiff can do this and they need to get a court order first.

• If a debt collector does this you should complain to them or to the creditor whose debt they are collecting. If you are still not satisfied or the complaint is not sorted out you can complain to the Office of Fair Trading.

• There are other guidelines that debt collectors have to follow. For example, a debt collector must be very careful when dealing with someone who has a physical or mental illness. A debt collector should not continue with a home visit if it is obvious that someone is suffering from a mental illness.

Bailiffs• If you owe money, your creditor has various options to try and get

their money back. For example, they could apply to the court for an order to take money out of your wages to pay back your debt.

• Instructing the bailiffs to take your things away is another option. The goods are usually sold at auction. The money raised goes towards the bailiffs’ fees and charges and what is left over goes to your creditor.

• There usually has to be a court order before bailiffs can come to

take your things away. Even when the bailiffs have got authorisation to act, it may be possible to negotiate with the creditor to call the bailiffs off.

Bailiffs can be used to make you pay the following debts:

•council tax arrears

•business rates arrears

•county court orders (CCJs)

•High Court orders (judgments)

•child support arrears

•parking/road traffic penalties

•fines in a criminal case

•income tax arrears

•VAT debts

•rent arrears.

Bailiff advice• If the bailiffs haven’t got into your home before, the basic

rule is that they can’t come in unless you or another adult lets them in. You can choose not to let them in.

• However the bailiffs can get in without your permission if they can do so without using force. For example, if they can get in through an unlocked door or open window. This is called peaceful entry (or sometimes peaceable entry).

• Once they have gained peaceful entry through an outer entrance, they can break open the doors of other rooms or locked cupboards.

Bailiff advice continued….• Sometimes, bailiffs are allowed to break in to your home, even if

you don’t give them permission. This is the case where:

• the bailiffs are collecting unpaid fines. They can force their way into your property whether or not they've been in to seize goods [link] before. However they must only do so if this would be reasonable. In practice, they only break in as a last resort

• the bailiffs have already gained peaceful entry before. They can force their way back into your home to take away goods that they've already seized if your trying to stop them from entering

Bailiff advice continued….

• the bailiffs are collecting income tax or VAT and they have permission from the court. This may be allowed if they have previously failed to gain peaceable entry.

• Debts are personal (exceptions: partnerships, joint accounts etc). Addresses cannot be ‘blacklisted’!

• Please seek legal advice immediately if you have any debt problems, it is best to be pro-active and try to negotiate a repayment plan in the first instance.

Housing Benefit & Homelessness

Under 35’s & Housing Benefit/ Local Housing Allowance

From 1 January 2012, if you're single, under 35, and have no dependent children, your housing benefit is based on the rent for a single room with shared facilities.

However, some people are exempt from this, for example, care leavers under 22, some disabled people and people aged 25 to 34 who have been living in a homeless hostel.** Previously this only applied to under 25’s

Non-dependent Deductions

• Non-dependants are people like grown-up sons or daughters and elderly relatives. If you have non-dependants living with you, your HB and CTB may be affected.

• Any non-dependants who normally share your accommodation could affect the amount of HB and CTB you get whether or not you are also getting Income Support, income-based JSA or Pension Credit.

• No non-dependent deduction in certain circumstances

• Currently if your non-dependent is in receipt of Income Support, income related ESA or income based JSA, the weekly deduction is £11.45 for Housing Benefit purposes.

Homelessness

Local Authority Homeless ApplicationsIn assessing whether or not they have a duty to accommodate you the council will look at the following factors:

• Are you eligible? This relates to your immigration status in the United Kingdom.• Are you homeless or threatened with homelessness?• Are you in priority need? This relates to whether you have children, a disability or vulnerable for some reason e.g. drug dependency.• Do you have a local connection? This means do you have a connection with the borough whose council you are applying to for assistance with housing.• Are You Intentionally Homeless? You will be found to be intentionally homeless if you choose to leave your home when you could have remained there or if you deliberately or knowingly did something or failed to do something that caused you to become homeless. If you are being evicted do not leave before you have been served with eviction notice.

Permanent Council or Housing Association Accommodation

Local authorities are required by law to have an allocations policy and scheme governing the allocation of social housing.

If you wish to secure permanent council or housing association accommodation you must join your local authority’s housing register scheme.

Housing register schemes often consists of individuals being placed in a band or awarded a certain number of points based of their level of need. They are then required to bid regularly for housing.

Individuals are not automatically given permanent housing if they present as homeless to the council.

Private Sector RentingThere are advantages:-• Choose where you live• You can still bid on housing register for permanent social housing

whilst living in privately rented property.• New laws mean that now likely to be offered social housing with a

fixed term tenancy

and disadvantages: - • Housing Benefit Cap • Finding a landlord willing to accept tenant in receipt of benefits• Raising deposit – Discretionary Housing Payment schemes, local

authority bonds, rent deposit schemes• Your landlord can serve you notice to quit after fixed term ends –

minimum 6 months Assured Shorthold Tenancy.

BAIL CONDITIONS

BAIL CONDITIONSMain bail conditions that could affect you as a family member:-

Bail Act 1976• Residence (with/without electronic tagging); tagging requires an

active phone line and curfew may apply.

• Surety – promise to pay an agreed sum if the defendant fails to attend Court; need to prove source of money (eg. Can’t be paid into account day before!); duty on the person to ensure defendant attends Court

• Security – payment into Court account of an agreed sum, to be returned at outcome of case regardless of outcome; relinquished if defendant fails to attend; duty on person to ensure defendant attends Court

SEARCH WARRANTS/RAIDSPolice and Criminal Evidence Act 1984• Search with warrant; for specific items; within 1 month of date on

warrant; only authorises entry on 1 occasion

• Entry without warrant; many reasons, including to:– arrest someone– execute a warrant of arrest– recapture a person who has escaped from lawful custody– arrest a child/young person who has been remanded/committed to

local authority accommodation– to save life or limb or prevent serious damage to property

• Police should leave a copy of the warrant and a list of the items seized.

• If Police enter lawfully then it is very difficult to get repairs paid for by the police or housing association. Police only have to ensure that property is secure.

MISUSE OF DRUGS ACT 1971 (s.8)

• Criminal offence for occupiers/managers of premises knowingly to ‘permit or suffer’ those premises to be used for the following activities:

- Production or attempted production of any controlled drug, or- Supply or attempted supply of any controlled drug, or- Preparing opium for smoking, or- Smoking cannabis or prepared opium.

• Penalties available for Section 8 offences

• Maximum sentence of 14 years’ imprisonment or a fine or both

Please feel free to contact Release’s team of drugs experts, legal advisors and policy staff at any time.

Release

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EC1V 2NJ

Helpline 0845 4500 215, ask@release.org.uk(open 11am-1pm and 2pm-4pm, Monday-Friday)

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