Housing benefit
Note: HB is affected by the introduction of UC (see here). HB is a means-tested benefit, claimed from and paid by local authorities to tenants to help with the cost of their rent. HB can be paid to people in and out of work.
Clients in private rented accommodation may not have their full rent covered by their HB if their rent is more than a local housing allowance for their area. This is based on the number of bedrooms a client is allowed under the rules and the local housing allowance rates set by the rent officer.
Clients in local authority or housing association accommodation may not have their full rent covered by their HB if they are living in a property that has more bedrooms than they are allowed (known as the ‘bedroom tax’).
Clients in any type of housing could find that their HB does not cover their full rent if:
•their household income from benefits is above a certain amount (known as the ‘benefit cap’); or
•their rent includes non-eligible charges, such as fuel, water or some service charges; or
•if a non-dependant (eg, a relative or friend) lives with the client.
Clients entitled to IS, income-based JSA, income-related ESA or the guarantee credit of PC are usually entitled to HB, but they must make a separate claim. Clients not on a means-tested benefit can also qualify for HB if their income is sufficiently low and they have capital below a certain amount (£16,000 for most clients). There is no capital limit for clients who get the guarantee credit of PC.
Most working-age clients can no longer start a new claim for HB. If they want to start getting help with housing costs, they must claim UC instead. However, people already getting HB can continue receiving it until they are asked to move to UC, and pensioners and people living in certain types of housing (eg, supported accommodation and some types of temporary accommodation) can still make new claims for HB.
Claims for HB can be backdated for a maximum of one month if a client can show good cause for claiming late. Clients or their partners not in receipt of IS, income-based JSA or income-related ESA who are at least pension age can get HB backdated for up to three months without needing to show a good cause.
Clients whose HB does not cover the whole amount of their rent can apply for a discretionary housing payment to help make up the shortfall (see here). Discretionary housing payments are paid from a cash-limited budget and are not guaranteed. HB and discretionary housing payments are not taxable.