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And Housing Authorities (in other words Councils) tend to refer complex benefits cases to their local CAB. This is fine as long as the CAB in question still has the capacity to tackle those issues.

There is no point in the statutory sector paying for people to point its clients (or in the jargon "navigate" them) to a service which doesn't have the funding to deliver the extra work. The NHS is also guilty of this with its "care navigators". But then "navigation" sounds good and is cheaper than actually funding practical help to those in need.