Examples of debt created as result of fraud investigations
The following examples are situations when Income Related Rent debt may be created as the result of fraud investigations.
Example 1 - Undeclared income from subletting property
A client travelled overseas for 6 months (from 1 April 2022 to 1 October 2022) but did not notify their housing provider of their absence from the property and unlawfully sublet the property to a friend for the 6-month period.
During a routine visit to the property, a tenancy manager becomes aware of the subletting arrangement and advises MSD.
An investigation by the Client Service Integrity establishes the client received additional income from the subletting arrangement.
The client's rate of Income Related Rent is recalculated for the period from 1 April 2022 to 1 October 2022.
A debt is established for this period based on the additional assessable income the client got from the subletting arrangement.
Example 2 - Misleading MSD
On 1 January 2022, a client tells MSD her partner has moved in with her but fails to declare her partner is working and did not give information about his income.
As the client must advise within 14 days of any change in circumstances that might increase their rate of Income Related Rent, this will be treated as deliberate omission of information for the purposes of misleading MSD.
On 9 October 2022, an allegation is received about the client's partner's employment situation.
On 14 December 2022, as the result of an investigation, the Client Service Integrity has information previously not available to MSD.
An Income Related Rent is recalculated for the client and their social housing provider is notified. A debt is established from 1 January 2022 until the client starts paying rent at the correct rate of Income Related Rent.
