In October 2000 a man and his wife claimed housing benefit from Scarborough council. Their claim form indicated they were on income support and that the landlord was their daughter. The claim was paid.

In October 2001 the council "cancelled" the claim, believing it to be fraudulent. It said this was because the tenancy was contrived and was not a proper commercial arrangement. The couple appealed unsuccessfully to the local tribunal. They appealed again to the social security commissioner who allowed their appeal.

He decided that the HB regulations only allowed the original decision to be revised if it had been made as a result of ignorance or mistake about facts or by official error. It seemed that all the relevant facts had been disclosed on the original claim form. The rules did not permit "cancelling" of benefit awards. A decision could only be revised or superseded in accordance with the rules. The case would have to be reheard to see if the council could bring itself within the rules.