Getting help towards rent - Key differences between Housing Benefit and Universal Credit

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1 Getting help towards rent - Key differences between Housing Benefit and Universal Credit Who can get help HB UC Single claimants age HB paid if entitled. For those claiming under the Full /Digital service the default is no Housing Costs Element however plenty of exceptions (see website for more details). Payments HB UC Tenant wants housing costs to be sent direct to the landlord Where help with rent being paid to landlord - Payment frequency Social Housing claimants can choose to have HB paid direct to the landlord, they don t need to be in arrears. Private rented claimants must be 8 weeks or more in arrears and landlord requests it or in best interests of claimant as unlikely to pay rent. If paid to landlord, paid every 4 weeks on bulk schedule of payments. If paid to claimant, generally paid every two weeks via BACs. Rent HB UC Tenant no longer living in property or has died. Claimant lives in property but is not / not yet tenant. Tenant used to own the property they are now renting If the landlord confirms the occupier is liable for mesne profits or has use and occupation or permission to occupy charges for the property, HB can pay. If the mortgage rescue was in the last 5 years, tenant needs to show they had no option but to sell the property in order to be eligible for HB. 1 General rule = UC paid to tenant and is up to tenant to pay the landlord. Alternative Payment Arrangements can be made for managed payment to landlord in exceptional circumstances ie due to level of arrears / vulnerability. Gateway areas APA managed payment paid calendar monthly to landlord at same time as claimant receives their payment. (Even if tenant has twice monthly payments as an Alternative Payment Arrangement, an amount up to the Housing Cost Element is still paid to landlord monthly). Digital areas APA managed payment - although a monthly figure - being paid to landlord on a 4 weekly bulk schedule in line with Third Party Deduction schedule. If the landlord confirms the occupier is liable for mesne profits, UC guidance indicates this is excluded, so claimant unlikely to get HCE. Use and occupation is not mentioned, but Regulations allow payments for a licence or other permission to occupy the accommodation is so permission to occupy should be allowed. No such restrictions under UC rules.

2 Temporary accommodation Exempt from the Bedroom Tax. If not classed as specified accommodation the UC Housing Cost Element will be limited to the appropriate Local Housing Allowance rate. The shortfall may be covered via a Discretionary Housing Payment. Rent-free weeks No entitlement to HB during rent-free weeks; HB paid throughout the year but adjusted to take account of the rent-free weeks: weekly applicable amount, income and non-dependant deductions all multiplied by 52 or 53 (ie. number of Mondays in the year) and divided by number of weeks for which rent is payable. Service charges HB UC Tenant lives in ground floor flat with service charge for external window cleaning Tenant has a service charge for intensive housing management for the support they receive from the landlord A service charge relates to a cost which should be included in the rent charge. Eg. the portion of a service charge for a scheme warden relating to housing management duties or landlord s buildings insurance costs. Eligible if the tenant not able to clean them or communal. Local authority may agree to pay HB for this charge. HB can pay for this even if shown as a service charge. Non-dependant deductions HB UC General Various rates of deductions ranging from 0 to 95.45pw depending on circumstances. A 53 week year is not recognised. The rent-free weeks are accounted for as follows: The weekly rent is multiplied by number of weeks for which rent is payable during the year, then divided by 12 to give a monthly rent figure. Eligible if communal otherwise ineligible. Only cleaning of personal windows above ground floor allowed. Specifically excluded in the guidance ie UC will not cover this charge. (Although claimant may be living in specified accommodation so get help with their rent via HB even though on UC.) Ineligible because only service charges which fall under one of the four categories are eligible: payments to maintain the general standard of the accommodation, payments for the general upkeep of areas of communal use, payments in respect of basic communal services or accommodation-specific charges Called Housing Cost Contributions. Either 0 or per month, depending on circumstances. 2

3 Non-dep under 21 May be a non-dep deduction depends on circs. No HCC regardless of non-dep s circumstances Non-dep working If non-dep age 18+ and working 16+ hours amount of deduction depends on level of wages. Non-dependant deductions cont Non-dep age and on: IB-JSA or UC with no earned income or Income Support or IR-ESA with no component Non-dep is full-time student Non-dep getting: daily living component of PIP or mid or high rate care component of DLA or Armed Forces Independence Payment or Attendance Allowance Non-dep getting Carer s Allowance HB No deduction No deduction (unless working 16+ hours pw during summer holidays) There may be a deduction (eg. if non-dep in main phase for ESA pw or if non-dep working deduction depends on amount nondep earning). There may be a deduction depends on No HCC circumstances. Non-dep responsible for child under 5 There may be a deduction depends on circs. No HCC If non-dep under 21 no HCC no matter how much they earn! If non-dep age per month no matter how much they earn! (unless nil for other reason). UC If non-dep under 21 no HCC. If non-dep age 21+ HCC is per month (unless nil for other reason). If non-dep under 21 no HCC. If non-dep age HCC is per month (unless nil for other reason). No HCC Tenant / partner getting low rate care component of DLA Tenant / partner getting middle / high rate care component of DLA or daily living component of PIP No deduction No deduction HCC per month (unless nil for other reason). No HCC 3

4 Non-dependant couple living with tenant eg son and his partner. Non-couple joint tenants have a nondependant living with them and the non-dependant is part of both (or all) of the joint tenants households. One deduction for the couple if working is based on their joint gross wages. The non-dependant deduction will be split between the joint tenants. Eg 2 brothers are joint tenants; their nephew is their non-dependant; 50% of the appropriate non-dependant deduction applied to each of the brother s HB awards. Bedroom Tax / Size Criteria HB UC Joint tenants (non-couple eg. brother & sister, 2 friends) have a spare bedroom Subject to Bedroom Tax. 2 HCCs one for each non-dep (one or both may be or 0 depending on circs). The HCC cannot be apportioned. The full HCC will be applied to whichever joint tenant claims UC first. Non-couple joint tenants are specifically excluded no deduction for spare room. Mixed age couple (one over and one under Pension Credit Age) Not affected by Bedroom Tax. Bedroom Tax applies. Tenant has a lodger Tenant has a non-dependant couple living with them Lodger is allocated a bedroom. Payments from lodger > 20 pw may affect tenant s benefits. Non-dependant couple allocated one bedroom. Lodger not allocated a bedroom ie it is counted as a spare room (but any payments the lodger makes to the tenant are ignored for tenant s UC). Allocated 2 bedrooms one per non-dep! Extra bedroom for non-household carer Member of household dies meaning spare bedroom Tenant/partner/child/non-dep/other householder do not need to be on a qualifying disability benefit, just need to provide evidence they need overnight care. Bedroom Tax not applied for this spare room for 52 weeks. 4 Tenant/partner/child/non-dep/foster child must be getting middle/high rate care component of DLA, daily living component of PIP, constant AA, or AA. UC continues to allocate a bedroom for the person who has died for Monthly Assessment Period (MAP) in which died plus following two MAPs.

5 Not claimed benefit in the last year, but had to make new benefit claim due to change of circumstances (eg. lost job, separated from partner) and has spare bedroom. Protection for those who could afford rent when took tenancy & not claimed HB in last 52 weeks 13 weeks. No equivalent under UC rules Bedroom Tax applies immediately. Temporarily away from home HB UC Temporarily absent abroad (outside GB) Similar rules for HB & UC HB can continue for up to 4 weeks (or up to 8 or 26 weeks in certain situations) Similar rules for HB & UC HCE can continue for up to one month (or up to 2 or 6 months in certain situations). Staying with friend / relative in GB In hospital in GB Fleeing violence Can be away from home for any reason and continue to get HB for up to 13 weeks must be intending to return home within 13 weeks and not sub-let property. HB can be paid for 52 weeks if tenant in hospital receiving medically approved care, as long as expecting to return home within 52 weeks and not sub-letting the property. HB can be paid for 52 weeks if tenant fleeing violence, as long as intending to return home. Housing Cost Element can continue for up to 6 months as long as intends to return home. HCE ceases as soon as the claimant is aware that their absence is likely to exceed 6 months, or, if the claimant is intending to return throughout the 6 months absence, HCE ends when the absence reaches 6 months. If UC claimant has a claimant commitment will need to make sure they can comply with this while away. Housing Cost Element can continue for up to 6 months as long as intends to return home. If the absence exceeds 6 months, or the claimant knows they will not be returning within 6 months, HCE ceases. Similar to HB - HCE can continue for up to 12 months as long as claimant intends to return home. Son / daughter / other nondependant is student living away from home in GB during term-time If returns (and intends to return) within 52 weeks the student counts as being in the household and is allocated a bedroom as long as student not claiming HB/HCE with UC. If returns (and intends to return) within 6 months the student counts as being in the household and is allocated a bedroom as long as student not getting a HCE in any UC award/ claiming HB. When the student reaches age 21, a housing cost contribution (see above) will apply. 5

6 On remand / in prison in GB Temporarily absent abroad (outside GB) If a claimant appears in court for sentencing ie not previously on remand and their sentence means they are likely to be in prison for more than 13 weeks, HB entitlement ends. (Note that someone else living in household may be able to claim HB). If a claimant has been remanded in custody until their trial, their HB can be paid for up to 52 weeks while the claimant is on remand. But as soon as sentenced, the 13-week temporary absence rule applies. Similar rules for HB & UC HB can continue for up to 4 weeks (or up to 8 or 26 weeks in certain situations) Single UC claimant if already entitled to UC other elements stop from the beginning of the monthly assessment period during which the claimant went into custody, but Housing Cost Element can continue for up to 6 months if expected to return within 6 months. Once the absence exceeds 6 months, or if the claimant is sentenced which means the total absence will be more than 6 months, HCE (ie UC entitlement) ceases at that point. Single UC claimant was not claiming UC immediately before being remanded in custody cannot make a claim to UC. Similar rules for HB & UC HCE can continue for up to one month (or up to 2 or 6 months in certain situations). Moving home HB UC Moving from one tenancy to another liable for rent on both tenancies during notice period As long as moved to new property can get HB on both properties for up to 4 weeks, if unavoidably liable for both. Housing Cost Element relates to the rent for the tenancy in which the claimant is living at the end of their UC Monthly Assessment Period. No provision to cover both rents at the same time. Moving from rented to non-rented accommodation (eg care home, to live with family, fleeing violence and not intending to return home) Moving into new tenancy from nonrented accommodation HB can continue to the Sunday after the move or for up to 4 weeks notice period if the move was sudden and liability unavoidable If tenant makes their claim for HB and moves in within the first week of the tenancy, (and then provides all necessary evidence within the required timescales), they can get HB from the day they move in. Otherwise, they can get HB from the Monday following their date of claim / date moved in whichever is the later. 6 HCE ends from the beginning of the Monthly Assessment Period during which the claimant moves out. HCE included from the beginning of the Monthly Assessment Period during which the claimant moves in as long as claimant notifies UC in time.

7 Move into new tenancy delayed due to delay in discharge from hospital or care home Move into new tenancy delayed due to awaiting disabled adaptations for claimant or member of their family Move in delayed due to waiting for a Social Fund or Local Welfare Assistance Scheme decision Large family occupying 2 homes Similar rules to UC. Claimant moved into tenancy, liability for rent began while in hospital / care home and the delay is reasonable (ie. out of the claimant s control) HB can be paid for up to 4 weeks. Must not be getting HB elsewhere. Can get HB for up to 4 weeks prior to moving in if the delay is reasonable. Can get HB on two properties. Can get HB for up to 4 weeks prior to moving in if claimant / partner has child under 6, qualifies for disability premium or disabled child premium, work-related activity component or support component or is PC age. Must not be getting HB elsewhere. HB can cover the rent on both properties if the family were rehoused (or nominated) by the local authority. Similar rules to HB. If claimant moved into tenancy and liability for rent began while in hospital / care home they can be treated as occupying the property for up to one month before moving in and therefore receive a Housing Cost Element in any UC award for this period. Will only pay a HCE on one property. Can be treated as occupying the property for up to one month before moving in and therefore receive a Housing Cost Element in any UC award for this period the person who needs the adaptations is getting daily living component of PIP / middle or high rate care component of DLA / Attendance Allowance / Constant AA and the delay is reasonable. No provision for help with rent prior to moving in if move delayed for this reason. UC can cover the rent on both properties if the family were rehoused (or nominated) by the local authority or a social housing provider. Backdating HB UC Claimant has requested a backdate Working age claimants can get a backdate of up to one month if can show good reason for late claim. Up to one month backdate may be allowed if could not reasonably have claimed earlier and claimant: was not notified JSA/ESA ended, or has a disability, or has medical evidence to prove was unwell, or online claim not possible because system was down and claimed as soon as system working or reclaimed after separating from partner. 7

8 Starting work HB UC Tenant comes off IB-JSA, IR-ESA, IS, or CB-JSA/CB-ESA after 26 weeks due to starting work/increasing hours, which is expected to last at least 5 weeks HB should continue at the same rate for 4 weeks ie HB run-on / Extended Payment. Self-employed HB UC Income from self-employment Estimate likely average weekly net profit from an appropriate assessment period (no longer than 12 months). Income disregards HB UC Claimant in receipt of Widowed Parent s Allowance 15 per week disregarded No disregard UC is assessed on last day of Monthly Assessment Period (MAP), based on circumstances at that point and total earned income received during that MAP Report income and expenses every month UC reassessed on a monthly basis. If been trading 12 months or more minimum income floor. Claimant in receipt of War Pension Claimant pays registered childcare provider Claimant unfit for work but doing permitted work At least 10pw disregarded, LA can disregard more or all of it. Earnings disregard of 100% of the childcare costs up to limit of 175pw for 1 child / 300 for 2 or more children. To qualify must be working at least 16 hours; if couple both must be working 16 hours unless one in main phase for ESA, getting PIP/DLA, in hospital or in prison. Earnings from permitted work are ignored. Full disregard Childcare cost element added into the maximum UC amount 85% of the costs paid, up to limit of pmth 1 child / for 2 or more children. Childcare must be connected with claimant working but claimant does not have to be working a minimum number of hours. Normal work allowance applies no special rules. Income from lodgers Any amount above 20 a week taken as income Totally disregarded. Earnings taper 65p in every pound of earnings above earnings 63p in every pound of earnings above work allowance disregard 8

9 Earnings disregard 25, 20, 10 or 5 a week depending on circumstances plus hours disregard (plus child care disregard see above) Overpayments HB UC Overpayment caused by official error and tenant / landlord could not reasonably have realised Overpayment due to abandonment of property by tenant; recovery of overpayment sought from landlord HB overpayment non-recoverable. If landlord received HB and was not aware of abandonment, HB may agree to pursue the tenant for recovery instead. For many no earnings are disregarded for some renters it s 192 a month and for some non-renters it s 397 a month. All UC overpayments are recoverable no matter what the cause. If housing costs were paid to landlord by APA, landlord has no choice but to repay. DHPs HB UC Who can qualify To qualify, there must be a shortfall ie HB must not be enough to cover all the eligible rent. PIP / DLA claimant/partner HB UC Tenant / partner getting any component / rate of Personal Independence Payment or DLA. Exempt from the Benefit Cap. If not on a passport benefit and claimant not on C-ESA, HB increases as disability premium included. No non-dependant deduction To qualify, must be entitled to any amount of UC and be liable to pay rent. Exempt from the Benefit Cap. No extra element added to Maximum UC in respect of disabled person. Tenant / partner getting standard rate daily living component of PIP or middle rate care component of DLA. Tenant / partner getting enhanced daily living component of PIP or high rate care comp of DLA As above + If not on a passport benefit, HB may increase as severe disability premium may be included and/or carer may qualify for carer premium (complicated rules). No non-dependant deduction. As above + If not on a passport benefit HB increases as enhanced disability premium may be included As above + Carer may qualify for a carer element. No Housing Cost Contribution. As above 9

10 PIP / DLA dependent child HB UC Dependent child/young person awarded mobility comp of PIP or DLA or low rate care comp of DLA Dependent child / young person of claimant awarded standard rate daily living component PIP or middle rate care component of DLA Dependent child / young person of claimant awarded enhanced rate daily living comp of PIP or high rate care component of DLA If not on a passport benefit HB increases to include disabled child premium. As above + If not on a passport benefit HB may increase if parent is carer entitled to the carer premium. If child cannot reasonably share a bedroom due to health condition, extra room allowed. As above + If not on a passport benefit HB may increase to include child enhanced disability premium. Lower disabled child element added into Maximum UC. As above Carer may qualify for a carer element. If child cannot reasonably share a bedroom due to health condition, extra room allowed under size criteria. As above Except - Higher disabled child element added into Maximum UC. More information regarding any of the above is available on the website: 10