Private rental paid up front by a relative

Hello
I'm not sure if this is something that the mods can answer but would appreciate any information. I've also contacted the CAB and am waiting for a call back from them as well.

My brother is currently on UC including the health element whilst he is waiting for a double hip replacement. Following our Dad's death he has to move out of Dad's house and our sister has offered to fund a private rental place for a year whilst he is sorting himself out. The money would be going straight to the landlord (or agent) and paid in a lump sum at the beginning of the tenancy so wouldn't be going into my brother's bank account at all. There will be an agreement drawn up by a solicitor to this effect with a copy being given to the landlord/agent.

We are wondering how to handle this with the DWP. We are assuming that they have to be informed via his online journal, and will be provided with a copy of the agreement if requested. Is it even acceptable to do this or do they count it as income/benefit in kind so my brother's UC would be affected/stopped? It is intended to be a gift with no expectation that it be paid back (this will be in the agreement). We are wondering though if it would be better to be called a loan instead.

Sorry for all the questions and the long post, but my brother is getting very stressed and worried that what is a very thoughtful thing to do becomes a problem with the DWP.

Many thanks and sorry for taking up your time if you can't answer the query.

Hi,
A partial update which people might find helpful if they are in a similar position. Obviously people's situations will differ so they should check things specific to them.

Still trying to speak to Citizens Advice but in the meantime have had a detailed webchat with a real person at Shelter.

Shelter say that with reference to our circumstances the DWP should be informed and a copy of the agreement provided. It should be drawn up by a solicitor (or at least a recognised authority), be on headed paper and be witnessed for both parties. It should specify that the upfront rental payment is going direct to landlord/agent, is a gift with no expectation of repayment and that any conditions should not be too harsh.

If it is specified as a loan, the DWP could decide that it can be treated as income or a benefit in kind and therefore affect benefits. Obviously the housing element of UC would not be paid, but it shouldn't affect other benefits.

Hopefully other forum members might find the information useful!

Hi David
Thanks for your reply.

It was via the live webchat on the Shelter website with a human being (so thankfully not AI) after a 2 hour wait in the queue. Unfortunately I pressed the wrong button at the end of the chat so I don't have a transcript, though I did jot down her name for my own reference as much as anything else.

Thanks for looking into this. It is very much appreciated.

Hi again David

Sorry I forgot to confirm, the lease will be in my brother's name and will be between him and the landlord.

Our sister will have no further involvement.