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

Many landlords take a deposit from tenants to hold for the duration of the tenancy. When the tenant moves out, this is returned to the tenant less any deductions permitted: typically for damage (above fair wear and tear), additional cleaning, and cover any outstanding rent. Note: deposits can only be withheld if stipulated what the deposit is being held against in the contract.