Hello Our client split up from his partner and moved into a hotel whilst he attempted to find alternative accommodation. He signed up with a letting agency and paid his first month's rent in advance for a 6 month bedsit tenancy. He came to us for debt advice and signed the CW1 shortly after he had paid the initial rent. We don't have proof of his hotel bill but we have a copy of the letting agreement and proof of the month's rent he paid in advance. Can we count his full month's paid rent in the eligibility calculation (and disregard the hotel bill), or can we only count rent for the single week he was actually living in the bedsit which falls inside the calculation period? Thanks
Post by Patrick Torsney on Oct 14, 2011 10:44:30 GMT
Interesting. The Funding Code states (2E-017):
In calculating disposable income an allowance can be made in respect of mortgage or rent payable for the period of calculation in respect of the client’s main dwelling.
I would say that at the time the client was signed up, his main dwelling was his new rented flat/house, therefore it is the costs of this and this alone you would include in the calculation
As it is, if he is single with no dependants whose means are aggregated (and presumably no kids with him) you would have to cap the housing costs at £545 anyway