7. Other benefits and tax credits

• The benefit cap
• Passported benefits

Child tax credit (CTC) counts in full as income when housing benefit (HB) is worked out. It is the actual amount you are paid that counts. If your CTC award is reduced because an overpayment of tax credit is being recovered, it is the reduced amount that counts for HB. If you are underpaid CTC and get a lump-sum repayment, this is treated as capital for HB, so it only affects your HB if it takes your savings above the capital limit. The rules are the same for working tax credit (WTC).

Child benefit is disregarded as income for HB.

Bear in mind that you should tell the local authority about any changes in income when they occur, including benefit and tax credit changes. Do not assume that the DWP, HMRC or Social Security Scotland passes on the information for you.

The benefit cap

Your HB is reduced if your total income from benefits is over the maximum amount that you or your partner can receive. The amount is £423.46 a week if you are a lone parent or member of a couple, and £283.71 if you are a single person.

Most benefits count towards the cap, including income support, jobseeker’s allowance, employment and support allowance (ESA), child benefit, CTC and HB. The cap also applies to universal credit (see here).

You are exempt from the cap if you or your partner are working, or if you are disabled, a carer or a war widow(er). To count as working, you must get WTC. You are exempt from the cap because of disability if you or your partner get certain disability benefits, including disability living allowance (DLA), personal independence payment (PIP)/adult disability payment (ADP) and ESA with a support component. You are also exempt if a child or young person for whom you are responsible gets DLA/child disability payment or PIP/ADP. You are exempt if you or your partner get carer’s allowance or carer support payment.

There is protection for nine months before the cap applies if you are no longer working but were working at least 16 hours a week for the last year.

If you are affected by the cap, you should apply for a discretionary housing payment (DHP) from your local authority. The Scottish government has agreed to always make up HB reductions due to the benefit cap by way of a DHP.

Passported benefits

Provided you meet any other conditions, getting HB entitles you to:

•a Best Start grant;
•Best Start foods;
•funeral support payments.