WHAT DOES UNDER OCCUPATION DEDUCTION MEAN TO ME?

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1 WHAT DOES UNDER OCCUPATION DEDUCTION MEAN TO ME? DEVELOPING HOMES AND CREATING OPPORTUNITIES FOR PEOPLE WITHIN WEST NORFOLK

2 Disclaimer : The information provided in this booklet is sourced from DWP regulations and maybe subject to change. Freebridge Community Housing accepts no responsibility for any loss incurred whilst using this material or information, or from any action or decision taken as a result of using any such information. The information in this booklet is for general guidance only and is correct at the time of production. YOUR QUESTIONS

3 This is a booklet about Under-Occupancy - which is also known as Social Sector Size Criteria. Over the next few pages we ll raise the questions that we get asked most about Under Occupation Deduction. Your questions are in white our answers are in purple. What does under ocupation mean? Page 04 Who will be affected? Page 05 Who won t be affected? Page 05 I am working age but my partner is of Pension Credit qualifying age. What happens? Page 07 How many bedrooms can I have? Page 07 How much housing benefit will I lose if I have a spare room? Page 09 I am working and get some housing benefit. Will the changes affect me? Page 11 How will my rent be paid? Page 13 I share the care of my children with my ex-partner, are we both entitled to a room for them? Page 13 My partner and I sleep in separate bedrooms due to a disability/medical condition/ recoving from an operation? Page 15 My child is away at university. Will I get housing benefit for their room for when they are home during the holidays? Page 15 My adult son/daughter is in the Armed Forces. Will there be a deduction when they are deployed on operations? Page 15 I am a foster carer and need my spare bedroom for my foster child? Page 17 I have a disabled child who cannot sleep in the same bedroom as their brother/sister? Page 17 My spare bedroom is very small. Will I still be affected? Page 18 I have have had a death in the household and will now be classed as under-occupying. Will my housing benefit be cut straight away? Page 18 I cannot afford to pay extra towards my rent. What can I do? Page 19 3

4 So what does under occupation mean? If someone is assessed as having more bedrooms in their home than is necessary (as defined by the criteria set by the Government) they will be considered to be under-occupying that property and from April 2013 their housing benefit will be reduced. 4

5 Who will be affected? If you are of working age and claiming housing benefit, and live in a property that is deemed to have more bedrooms than you require Working age includes people between age 18 and the qualifying age for pension credit Claimants can choose to live in a property that is deemed to have an extra bedroom; but will be subject to paying the shortfall in the housing benefit. Who won t be affected? If you or your partner are old enough to receive Pension Credit (this changes from October 2013 please see page 7) If you live in a one-bedroom flat or bedsit If you do not claim housing benefit. 5

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7 I am of working age but my partner is of Pension Credit qualifying age. What happens? Currently if either you or your partner is of Pension Credit qualifying age you will not be subject to the Under Occupation Deduction. From October 2013, when Universal Credit is introduced, both you and your partner will need to be of Pension Credit qualifying age to claim Pension Credit or you will have to claim Universal Credit and you will be subject to the Under Occupation Deduction. However, if you are already claiming Pension Credit before October 2013 as a couple then this will continue, and you will not have to pay the Under Occupation Deduction. How many bedrooms can I have? For working age claimants, one bedroom will be allowed for each adult or couple living as part of the household with the following exceptions: Two children under 16 of the same sex will be expected to share a bedroom Two children under 10 will be expected to share, regardless of their sex Disabled tenants or partners who need a non-resident overnight carer will be allowed an extra room. 7

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9 How much housing benefit will I lose if I have a spare bedroom? Deductions will be set as a percentage of the weekly rent, not of your current Housing Benefit entitlement. Deductions will initially be set at : A 14% cut for one extra bedroom A 25% cut for two or more extra bedrooms Therefore the higher the rent the higher the amount of money will be deducted from housing benefit. EXAMPLE Mr & Mrs Smith live in a two-bedroom flat costing per week in rent. They currently receive full housing benefit that covers the cost of all of their rent. The new rules mean that from April 2013, they will have one spare bedroom and therefore their housing benefit will be reduced by 14% of their rent. 14% of = Their housing benefit will be reduced to They will have to pay 9.80 per week towards their rent. 9

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11 I am working and get some housing benefit. Will the changes affect me? Yes. Deductions are calculated as a percentage of the housing benefit eligible rent not the actual amount of housing benefit received. This means that where a working claimant receives a small amount of housing benefit this may be cancelled out by the deduction in housing benefit, leaving no benefit payable at all. EXAMPLE Mr & Mrs Jones live in a two-bedroom flat costing per week in rent. They currently receive a partial housing benefit award of per week and pay per week themselves towards their rent. The new rules mean that from April 2013 their housing benefit will be reduced by 14% of their rent. 14% of = Their housing benefit will be reduced to They will have to pay per week towards their rent 11

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13 How will my rent be paid? If you are assessed as under-occupying your home, 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 your landlord (note this will change with the introduction of Universal Credit from October 2013). I share the 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. This will be considered to be as 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 extra housing benefit for an extra room and will therefore be subject to the deduction in housing benefit. 13

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15 My partner and I sleep in separate bedrooms due to a disability/medical condition/recovering from an operation? Under Benefit rules, regardless of illness or disability, you are deemed to be able to share a bedroom. You will therefore be subject to the deduction in housing benefit unless you need a non-resident overnight carer; in which case an extra bedroom is allowed (subject to qualification of the person requiring the overnight care being in receipt of certain specified benefits and the overnight care is required on a regular basis ). My child is away at university. Will there still be a deduction to my housing benefit? My adult son/daughter is in the Armed Forces. Will there be a deduction when they are deployed on operations? Yes, you will still be subject to the deduction in housing benefit if the young person is renting or staying in halls of residence away from the family home. Adult children who are in the Armed Forces but who continue to live with their parents will be treated as continuing to live at home, even when deployed on operations, as long as they intend to return home. 15

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17 I am a foster carer and need my spare bedroom for my foster child. People who are approved foster carers will be allowed an additional room, whether or not a child has been placed with them or they are between placements, as long as they have fostered a child, or become an approved foster carer in the last 12 months. However, this only applies to one additional room and people who foster more than one child may still be affected by the deduction in housing benefit. I have a disabled child who cannot sleep in the same bedroom as their brother/sister. Housing benefit should pay for an additional bedroom where that bedroom is required because of a child s disability preventing them from sharing with another child. Parents with disabled children will need to inform the local Council and provide supporting medical evidence and/or proof of benefits such as Disability Living Allowance. The Council will consider the nature and severity of the disability, and the extent and regularity of the disturbance to the sleep of the child who would normally be required to share the bedroom. Each case will be assessed individually by the local Council. 17

18 My spare bedroom is very small. Will I still be affected? Yes, you will still lose some of your housing benefit. There is no distinction between larger and smaller bedrooms for housing benefit purposes. I have had a death in the household and will now be classed as under-occupying. Will my housing benefit be cut straight away? Your housing benefit would be protected and there would be no deduction in your housing benefit until 12 months after the death, or if you moved house or had a further change of circumstances (whichever comes first). After October 2013, under Universal Credit, this changes to 3 months after the death. 18

19 I cannot afford to pay extra towards my rent. What can I do? Budget to pay the difference yourself: If you need help with this come and talk to us. We can help with the following: Work out a budget plan with you Refer you to the Citizens Advice Bureau for help with debts Look at ways to increase your income by claiming different benefits Talk to you about applying for Discretionary Housing Payments to cover the shortfall for the short term. Think about moving to a smaller property. Moving to a smaller property may also reduce your household bills and you might find it easier to manage a smaller home. If you need help with this come and talk to us. We can help with the following: Talk to you about the different ways you can move Help you to find a house swap on the House Exchange website Offer help with moving costs through our Under Occupation Incentive Scheme. Take in a lodger. Current benefit regulations allow claimants to keep the first 20 of any weekly income from renting out a room. If you need more information on this come and talk to us. We can help with the following: Talk to you about what you need to do when you take in a lodger Explain how this might affect your benefit in other ways. 19

20 FCH If you still have questions about under occupancy, please call your Income Adviser on IF YOU NEED ANY HELP TO UNDERSTAND THIS LEAFLET PLEASE GET IN TOUCH Freebridge Community Housing Juniper House Austin Street King s Lynn Norfolk PE30 1DZ enquiries@freebridge.org.uk Main Switchboard Telephone: Office Opening Hours: 8:45am pm (Mon-Thurs) 8:45am pm (Fri) Bank Holidays, Saturday and Sunday Closed Out of Office Hours: The main telephone number ( ) will divert to our 24 hour emergency service.