When training we often discuss this scenario. The government has issued helpful guidance LA Welfare Direct 7/2022 to allow both sets of costs to be paid-
1. The Housing Beneft (HB) regulations relating to unavoidable overlapping of liabilities state that HB can be paid on both dwellings for a period, not exceeding four beneft weeks, from the date on which the claimant has moved, as long as they could not reasonably have avoided liability in respect of both dwellings.
2. In cases where the claimant is receiving Universal Credit (UC) and HB because they are living in temporary accommodation or supported accommodation, we understand that there is confusion around whether HB can be paid if there is unavoidable overlapping of liabilities when the claimant moves into mainstream accommodation
3. In these cases, the normal rules apply so local authorities (LAs) should consider if the claimant could have reasonably avoided the overlapping of liabilities. (For example, if the claimant could have served notice to the landlord earlier or not). This is the only consideration which needs to be made as the legislation allows the claimant to be treated as still meeting the conditions for receipt of HB for the previous address.