Is it fraud if(disagreement with friend)

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After living in your house for some time, your landlord reduces your rent due to issues in the house. However you're claiming HB and you do not declare it to them, instead allowing them to continue paying the amount they were paying you despite your rent now being lower?

I think it is. Friend thinks it isn't (it isn't me doing this by the way)!

Of course it’s fraud.

Does the benefit pay all. Or part of the rent

Of course it is fraud.
Making a false declaration to a public body about financial circumstances.
People have been imprisoned for such criminal behaviour.

Presumably you have to prove what rent is being paid in order to get HB? And the rules probably state you need to notify any changes? In which case yes, it's fraud to accept more HB than you're entitled to.

I think it's also shit of the landlord to reduce the rent if there are maintenance and repair issues they're not dealing with and they've reduced the rent instead. Or is the friend supposed to use the difference between rent and HB to do the repairs themselves?

It's definitely fraud, and the person will be caught out eventually.

HB checks with the landlord periodically.

Yep it's fraud. When she's found out she'll be prosecuted.

It is fraud and it is really not worth it. Better for the landlord to sort out whatever is causing the reduced rent, and pay the original rate.

Obviously, yes

Yes, and UC/HB may well find out. They do check randomly, and will want to see current tenancy agreement and bank statements. How long have they been doing this for? They need to get on top of this before it catches up with them, they will have to pay it back

Does the rate they pay impact the amount of benefits they receive? I.e. there is a cap I think and most houses seem to be over the cap. If so I don't think it matters?

It is fraud and housing benefit do prosecute. My sister ended up with a tag, a criminal record and a hefty bill to repay because she was prosecuted, her partner increased his hours and she didn’t declare his new pay as they were really struggling. It was her claim so she was the one with the criminal record.

That was my thinking. If rent is £1200 and max HB is £800 they are going to still get that, it's based on the size of property not the price of the rent.

If the reduction in rent is meant to represent the fact the tenant is expected to pay for repairs and maintenance the landlord is unwilling to undertake, then I'm not surprised if they want to keep the HB the same. Presumably their home is of lower quality and still needs the stuff that was originally requested. The landlord may be breaking the law by letting out the flat at any price in it's current state. So maybe that's why they won't grass to the council.
Basically they're both in the wrong.

Morally the reduction in rent is to put up with the issues or organise their own repair so i think benefit should be the same. However if the benefit is only for rent then i expect it must be fraud.

I have no idea how it works though, may be benefit is a standard rate and person keeps/pays difference.

Fraud. Plain and simple.

Does the money go directly to the tenant or the landlord?

Sounds like a recipe for trouble if you/your friend are skimming the extra money from the top. It will end up needing to be repaid.

Of course it matters, they would still pay up to the cap,but the correct circumstances need to be declared or it's a false declaration.

Simply put, she would report if her rent went up, so she should report if it is reduced.

Source: I work in benefit fraud.

Pretty much everyone is moving over to UC by April so it will catch up with them sooner rather than later. Housing Benefits are ending and it will be paid through UC who do check tenancy agreements etx.

Yes it is clearly fraud and anyone who thinks otherwise is being very disingenious.

Well, your friend is wrong!

Ofcourse it is! If found out she will be in debt.

My knee jerk reaction is that it is fraud.

However, it sounds very short term - more of a compensation for the tenant living in poor standards temporarily. I can see an argument that the person having to live with noise/without hot water should get that sort of compensation. It's only a rent reduction because the person causing the problem is also the landlord, so it can be done like that.

A large building near me was recently developed and local residents compensated. The money to fix the destruction of gardens etc was managed by landlords, but compensation for disruption and noise was for the tenants.

Btw, I still think it's fraud but I can see the other side.

Fraud.

No, possibly not, it very much depends what has been agreed. We don't have enough detail.

I think not quite all, but most, just a few £ difference.