Deposit Bond and Compliance with 5-Week Deposit Cap

Could you clarify if the deposit bond a council provides for tenants on benefits has to comply with the deposit cap of 5 weeks legally, or can it be higher?

I would argue not because no funds are handed over at the start of a tenancy, so there is no deposit. The tenancy agreement also mentions no deposit, and no deposit must be protected. The bond is also just a promise of payment if there are dilapidations.

I would like to know what the legal position is, please.

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Deposits and Tenancy Deposit Schemes

Understanding the deposit protection requirements can be challenging. Our comprehensive guide simplifies the process and helps you comply with the law.