Housing benefit and fuel costs

Housing benefit and fuel costs

• How fuel charges are calculated
• Flat-rate deductions from housing benefit

Housing benefit (HB) is a means-tested benefit intended to help low-income households with rent payments. You can claim HB whether you are in work or out of work.

HB does not assist with most fuel costs that you pay with your rent. You are expected to find the money for these charges from any other income you may have, such as benefits or earnings. However, the following charges may be met by HB.

•Service charges for communal areas, as long as they are separately identified from any other charge for fuel used within your accommodation.1Sch 1 paras 5 and 6(1)(b) HB Regs; Sch 1 paras 5 and 6(1)(b) HB(SPC) Regs Communal areas include access areas – eg, halls, stairways and passageways.2Sch 1 para 8 HB Regs; Sch 1 para 8 HB(SPC) Regs In sheltered accommodation only, rooms in common use (eg, a TV room or dining room) can also be included.3Sch 1 para 8 HB Regs; Sch 1 para 8 HB(SPC) Regs
•Charges for the provision of a heating system (eg, for boiler maintenance), if they are separately identified from any other fuel charge.4Sch 1 para 8 HB Regs; Sch 1 para 8 HB(SPC) Regs

 

1     Sch 1 paras 5 and 6(1)(b) HB Regs; Sch 1 paras 5 and 6(1)(b) HB(SPC) Regs »

2     Sch 1 para 8 HB Regs; Sch 1 para 8 HB(SPC) Regs »

3     Sch 1 para 8 HB Regs; Sch 1 para 8 HB(SPC) Regs »

4     Sch 1 para 8 HB Regs; Sch 1 para 8 HB(SPC) Regs »

How fuel charges are calculated

With the exception of those charges listed above, HB does not cover fuel charges which are included in your rent – eg, heating, hot water, lighting and cooking. If you have this kind of fuel charge included in your rent and the amount of your fuel charge can be identified (eg, in your rent agreement, rent book or letter from your landlord), the amount specified is deducted from the total amount of your rent before your HB is calculated.1Sch 1 para 6(1) HB Regs; Sch 1 para 6(1) HB(SPC) Regs As a result, HB may not cover the full accommodation charges that you are contractually expected to meet. For example, if your rent is £70 a week and your rent agreement states that this includes £15 for heating, £55 would be counted as rent in assessing your entitlement to HB.

If the local authority considers that the amount you pay for fuel is unrealistically low compared with the cost of the fuel provided, or if this charge contains an unknown amount for communal areas, it may instead apply a flat-rate deduction (see below). This does not apply if you are a council tenant as the regulations assume that your fuel charges are as specified in your tenancy agreement.2Sch 1 para 6(1)(a) HB Regs; Sch 1 para 6(1)(a) HB(SPC) Regs

A flat-rate deduction is also made if the amount of fuel charges is not specifically identified as part of your rent.3Sch 1 para 6(2) HB Regs; Sch 1 para 6(2) HB(SPC) Regs

 

1     Sch 1 para 6(1) HB Regs; Sch 1 para 6(1) HB(SPC) Regs »

2     Sch 1 para 6(1)(a) HB Regs; Sch 1 para 6(1)(a) HB(SPC) Regs »

3     Sch 1 para 6(2) HB Regs; Sch 1 para 6(2) HB(SPC) Regs »

Flat-rate deductions from housing benefit

Fuel deductions – weekly deductions for ineligible fuel charges

If you and your family occupy more than one room:

	2023/24
Heating	£35.25
Hot water	£4.10
Lighting	£2.85
Cooking	£4.10
Total	£46.30

If you and your family occupy one room only:

Heating alone, or heating with either hot water or lighting or both	£21.10
Cooking	£4.10

If fuel is supplied for more than one purpose, the appropriate charges are added together. If you are a joint tenant, the deductions are shared between you, usually according to your share of the rent.1Reg 12B(4) HB Regs; reg 12B(4) HB(SPC) Regs

The local authority must notify you if it has used flat-rate deductions in calculating your entitlement to benefit. It must also explain that these can be varied if you can produce evidence of the actual or approximate fuel charge.2Sch 1 para 6(4) HB Regs; Sch 1 para 6(4) HB(SPC) Regs The flat-rate deductions can be varied accordingly. The Housing Benefit Guidance Manual used by local authorities says that the lower rate applies if you occupy one room, even if you share a kitchen or bathroom.3para A4 4.912-4HBGM Argue for the lower rate deduction if you are forced to occupy one room due to disrepair, damp or mould growth in your home.

 

1     Reg 12B(4) HB Regs; reg 12B(4) HB(SPC) Regs »

2     Sch 1 para 6(4) HB Regs; Sch 1 para 6(4) HB(SPC) Regs »

3     para A4 4.912-4HBGM »