Welfare Reform Under Occupation
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- Milo McDonald
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1 Welfare Reform Under Occupation Frequently Asked Questions Welfare Reform Under Occupation FAQs Page 1
2 Under occupation frequently asked questions 1. What does under occupation mean? If someone is assessed as having more bedrooms in their accommodation than is necessary according to the new rules (see information below), they will be considered to be under occupying that property 2. When will the change come into force? The regulations are due to come into effect from April Who is affected? The bedroom size criteria will affect anyone who is of working age (below 61 ½) and is receiving Housing Benefit or they have made a claim for Housing benefit 4. How many rooms am I allowed? The new rules will restrict the size of accommodation you can receive Housing Benefit for, based on the make up of your household The new rules allow one bedroom for: Every adult couple (married or unmarried) Any other adult aged 16 or over Any two children of the same sex aged under 16 Any two children aged under 10 Any other child (other than a foster child or child whose main home is elsewhere) A carer (or team of carers) who do not live with you but provide you or your partner with overnight care 5. I need an extra room because... I have a carer who stays with me overnight Where you have a regular overnight carer you will not be affected by the housing benefit reduction. You will need to contact Trafford Benefit Service who will be able to confirm whether this is applicable in your circumstances. Welfare Reform Under Occupation FAQs Page 2
3 I have access to my son/daughter I need space for medical equipment I m pregnant and need a room for my baby There is no exception for these circumstances, and you will see a reduction in your housing benefit I live in an adapted property which has a spare room There is no exception for these circumstances, and you will see a reduction in your housing benefit. However, in exceptional circumstances you may be able to apply for discretionary housing payment to make up the difference. You will need to contact Trafford Benefit Service on Tel: who will be able to confirm if you qualify. I am a foster carer Following an announcement by Iain Duncan Smith on 12 March 2013, foster carers are exempt from the under-occupation charge as from 01 April This is applicable whether or not they have a foster child residing with them. 6. What will happen if I am under occupying? If you are assessed as under occupying your accommodation a percentage reduction will be made to your eligible rent and any eligible service charges(eligible rent / services charges refers to the amount used to assess your entitlement to Housing Benefits). This percentage will depend on how many rooms you are under occupying by: 14% if someone is considered to have one extra room 25% if someone has two or more extra bedrooms Here are some examples of the amounts that would need to be paid by you; Rent Charged To be paid by tenant (14%) Rent Charged To be paid by tenant (25%) Welfare Reform Under Occupation FAQs Page 3
4 Please note that if a tenant is receiving partial housing benefit they may loose their entitlement all together. If weekly rent is 100, then housing benefit would be reduced by 14% ( 14), but if the tenant only received 10 partial housing benefit then they would receive no benefit at all. 7. What does working age mean? Anyone under state pension credit age which will be 61 ½ years old in March 2013, rising to 62 in March At the end of this FAQ there is a birthday chart, which you can use to check if a tenant is below or above the cut off. 8. I ll be eligible for Pension Credit next year? You will be affected by the reduction in housing benefit until the date that your circumstances change. 9. My children will need a room of their own next year? You will be affected by the reduction in housing benefit until the date that your circumstances change. 10. I m in a 2 bedroomed property but the second room is a box room, does it count as a bedroom? Yes every room that can be used as a bedroom is included. 11. Will the shared accommodation rate apply? There is no shared accommodation rate in the social rented sector. A person living on their own will require one bedroom, whether the property is self contained or not regardless of their age. 12. Are you allowed a room for a foster child? Following an announcement by Iain Duncan Smith on 12 March 2013, foster carers are exempt from the under-occupation charges. This is applicable whether or not they have a foster child residing with them. 13. I share care of my children with my ex partner, are we both entitled to a room for them? Where parents who don t live together have shared care of their children, the children will be treated as living with the parent who is treated as responsible for them and provides their main home. If there is a question as to whom they normally live with, they will be treated as living with the person who is receiving Child Benefit for them. The parent who is not considered to provide their main home will not be entitled to receive Housing benefit for an extra room for their child/children. Welfare Reform Under Occupation FAQs Page 4
5 14. My house has been adapted to cater for my disability, am I included in the bedroom size criteria? This is not an exception and housing benefit will be reduced, although you may be able to claim discretionary housing benefit. 15. I receive Disability Living Allowance (DLA) will I still be affected? If you are under-occupying your property then you will see a reduction in your housing benefit from 01 April 2013 regardless of the benefits that you receive. 16. My child has a disability and is not able to share a room: will I be allowed an extra room for them? Following an announcement on 12 March 2013 by Iain Duncan Smith children whose disability prevents them from sharing a bedroom will be able to have a room of their own. Therefore they will be exempt from the under-occupancy rules. 17. My child is away at university, can I keep their room for when they are home in the holidays? The new size limit rules do not allow for this, unless the absence is temporary (between 13 and 52 weeks for a student) and the young person concerned intends to return home. 18. I have had a death in the household and will now be classed as under occupying. Will my Housing Benefit entitlement be cut straight away? There may be circumstances where someone in receipt of Housing Benefit would be considered to be under occupying because of a death in their household. In these circumstances they would be protected and the size limit rules would not be applied until after 12 months, or they moved home, or there was another change of circumstances (whichever came first). 19. I could afford my rent but lost my job and need to cover all my rent because I have an extra room. Does this mean I won t get benefit to cover all my rent because I have an extra room? If you could previously afford to pay your rent and find yourself in a situation where you now cannot, for example because of a loss of job, provided you have not claimed Housing Benefit in the last 52 weeks, the size limit rules will not be applied for the first 13 weeks. They will be applied earlier than 13 weeks if you move home or have another change of circumstances. Welfare Reform Under Occupation FAQs Page 5
6 20. How will my rent be paid? If you are assessed as under-occupying your accommodation, your reduced Housing Benefit will be paid as it has been previously and the remainder of the rent will need to be paid by you to the landlord. 21. Will I have to move? No, you will not necessarily have to move. You have a number of options to help you stay in your home or move to a smaller property. We will be contacting you to discuss your options in more detail Options You could cover the shortfall from other personal income, or by making savings on your household expenditure You could try to find work or increase your hours You could take in a lodger or another family member You could apply for discretionary housing payments Assistance with a move to a smaller property Mutual exchange apply through Homeswapper which is an on-line national database that allows tenants swap their homes with other tenants. Both tenants do not need to be tenants of the Trust. Transfer to another smaller Trafford Housing Trust property Apply to a private landlord for accommodation 22. How can the Trust help? We can offer/ refer you for budgeting and debt advice We can offer advice about opening a bank account We can offer/ refer you to employment support You could ask our permission for a lodger We can refer you to Help with Rent (an organisation set up by the local authorities of Greater Manchester who can visit tenants and give full benefits advice) to discuss if you are eligible for discretionary housing payments The Trust can also help you to apply for discretionary housing payments We will give priority to current tenants who wish to move to a smaller property, but we do not have enough properties to help everyone immediately You can register on Homeswapper which is a mutual exchange programme Welfare Reform Under Occupation FAQs Page 6
7 You can register with HOST (this is the organisation that administers Trafford councils waiting list), which will give you access to other properties in the area, but these may be with another landlord You could consider a move to a private rented property 23. Will the Trust help me with expenses to move? The Trust will not be able to fund your move from one property to another and is currently investigating whether to offer an incentive for tenants to move to a smaller property, but this would be a minimal amount. 24. Will I be able to move if I have arrears? The Trust will review cases where tenants are in arrears and wish to move to another property, however it is unlikely that the Trust will allow tenants with Court Orders for rent arrears to move, unless the arrears are paid in full. 25. Will I get a higher priority if I want to move to a smaller property? The Trust is working with HOST the organisation who administers the waiting list on behalf of Trafford Council to ensure that tenants are given a higher priority if they wish to move to a smaller property. 26. Discretionary Housing Payments Discretionary Housing Payments are made by Trafford Council and will cover the shortfall that the under-occupancy has on the amount of housing benefit that you receive. You can apply if you currently: Get Housing Benefit Get Council Tax Benefit Trafford Council will look at things like: Your total income Whether you have any savings Whether anyone else in the house is able to help you financially Whether you have any loans or debts still to pay Whether you could rearrange your finances to ease the situation Whether you or your family have any special circumstances We might also ask you to call in to see us if we need to discuss your claim in more detail Trafford Council must be satisfied that you are having difficulties with your finances and need more help with your housing costs. You can apply online at Trafford council s website: By telephone the Benefit Changes Hotline on Welfare Reform Under Occupation FAQs Page 7
8 27. Can anyone help me apply? There are a number of options available: The Trust can help you complete the application form Telephone: and ask for Money Support Team Help with Rent can help you complete the application form Telephone: or visit their website (a referral form is attached to this FAQ list) Trafford Council Benefits Service can help you to complete the application form Telephone: or visit their website for more details A discretionary housing payment application form is attached to these FAQ s This is the approach to Welfare Reform that the Board have agreed to : Tenants remain responsible for paying their rent on time and to secure the income, benefits or make the lifestyle changes necessary to do this. The Trust recognises the impact of the Welfare Reform changes on its tenants and the Trust as a whole. The Trust will advise and support people who want to move home. The Trust will identify a network of partners who can help tenants with these changes. Welfare Reform Under Occupation FAQs Page 8
9 Trafford Housing Trust s Welfare Reform Team Welfare Reform Project Officers Jenny Hodge Tel: Mobile: Alice Garside Tel: Mobile: Jame McClurg Tel: Mobile: Welfare Reform Project Administrator Ewa Grzegorska Tel: Mobile: Project Manager Lauretta Rothery Tel : Mobile: Welfare Reform Under Occupation FAQs Page 9
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