I was speaking with a certain brother who sublets 2 rooms in a housing association house as a form of income.
He and his mother are on Housing Benefit and Income Support and they do not declare this income to DWP (otherwise it would affect their benefit) nor do they declare it to the Housing Association that owns the house (which the contract requires them to do).
This brother is a student of knowledge, he is young and his father has passed away, I asked him to go and find out if what he was doing was Halal as it seems very dodgy to me.
He said he asked someone (he won't tell me who) but he insists its someone with knowledge (who lives in a council house himself), and that person said that there was nothing wrong with this from a Shariah point of view, I am pretty sure it is a Deobandi scholar he has asked.
He insists that he fully explained the situation.
Here are the issues I have a problem with
1) When you claim income support you have to declare all your incomings - in this case they are lying - as far as I know this is Haram.
2) They are not sticking to the terms of the contract, as far as I know a Muslim has to abide by any contract he makes.
Does anyone have any experience with a similar situation - he said that he knows it is illegal and that he will be in trouble if he gets caught but he insists what they are doing is Halal.