In April 2013 the government started to roll out changes to the welfare benefits system. With millions of people of working age being affected, many have seen a drop in their benefits and the money they have to live on. The changes are continuing to be rolled out and we want to ensure that you are prepared and get the help you need if you have been, or will be, affected in the future. What are the changes? There are many changes, but 4 affect housing benefit directly:
The Bedroom Tax – introduced in April 2013 Benefit cap – introduced in April 2013 Universal credit – rolling out from 2013 – 2019 Local Housing Allowance Caps – coming into effect from 1st April 2018
What is the ‘Bedroom Tax'? If you have one ‘spare’ bedroom and you claim housing benefit, it will be reduced by 14% of the rent and any eligible service charges. If you have two or more spare bedrooms, you will lose 25%. According to the criteria, you will be allocated one bedroom for:
Each adult couple Any other person aged 16 or over Two children of the same sex under the age of 16 Two children under the age of 10 regardless of their sex Any other child A carer (who does not normally live with you) if you or your partner need overnight care
It does not matter how the ‘spare’ bedroom is used, or how large it is, the new rules will apply even if:
You and your partner need to sleep apart because of a medical condition. The main residence of your children is another address but you have a spare room for when they stay with you.
What is the Benefit Cap? If you’re out of work, the overall amount of benefit you can receive will be capped. The overall amount of benefit you can receive (including housing) is capped at £500 per week for single parents and couples with or without children. For single people without children the cap is £350 per week, but there are some exceptions. Please contact our Income Team for more information on 01372 379555.
Changes to the welfare benefits system – are you affected?