HOUSING BENEFIT, LOCAL HOUSING ALLOWANCE & COUNCIL TAX REDUCTION Introduce self and role in CAB

Objectives When you are finished this unit you should: Be able to identify who may be entitled to Housing Benefit (HB) Local Housing allowance (LHA) and Council Tax Reduction (CTR) Be able to calculate HB and CTR using the calculation sheets and/or the quick benefit calculator

Types of Housing Benefit People on Income Support or Income Based Jobseekers Allowance AND income related ESA will have 100% of HB calculated on their eligible rent less deductions for any non-dependants and under-occupancy (bedroom tax) People not on income based benefits will have theirs calculated on the basis of their eligible rent, deductions for any non-dependants living in the house and their income

Calculating HB & CTR The calculation is done by comparing applicable amount with income Applicable amount- This is the amount the government states that you can live on each week depending on your circumstances Applicable amounts can be found on Benefits and tax rates which are positioned around each CAB

If Income is less or equal to the applicable amount maximum housing benefit is paid. This is 100% of eligible rent minus any deductions for non-dependants or under-occupancy (bedroom tax) If income is greater than the applicable amount the difference is calculated and 65% of this figure is then taken from the maximum Housing Benefit, 20% from CTR

Who can claim Claimants can be anyone who: Are responsible for paying housing costs for example rent or lodgings Occupy a dwelling as their home such as tenants or lodgers Have capital below £16000 or in receipt of Pension Guarantee Credit Those that cant claim includes: -anyone living with close relatives and pays rent -most full time students unless dependent children/disabled -some people from abroad

Items Not Counted As Rent Items not counted as rent for example - charges for fuel, heating, lighting, hot water, water charges or charges for meals will be deducted from the payment before HB is calculated on the remainder of the eligible rent

Rent Restrictions A rent restriction is applied if the rent is deemed too high or the property too large Under occupancy applies from April 2013 14% reduction if one bedroom over two or more lose 25% of HB if under pension age Also Benefit Cap – limit on total amounts of certain benefits you can get if you are of working age. If this applies to you – HB would be cut – amount of money over the cap taken from HB but claimant must be left with a nominal amount of 50p HB Benefit Cap:- £500 couple - £500 lone parent with dependent children - £350 single person

Non-Dependants A Non-Dependant is anyone staying in the home over the age of 18 Claimants or their partners who are blind or receiving Disability Living Allowance care component (any rate) or Attendance Allowance will have no non-dependant deductions made

Payments for non-dependants working 16 hours or more per week 18+ less than £136.00 £14.80 18+ £136 to £199.99 £34.00 18+ £200 to £258.99 £46.65 18+ £259 to £345.99 £76.35 18+ £346 to £429.99 £86.95 18+ £430 or more £95.45 Figures on slide from Advisernet and CPAG although rates of deductions are set by parliament figures on WDC website slightly different. Under £122 - £9.40 £122-£179 - £21.55 £180-£233.99 - £29.60 £234-£309.99 - £48.45 £310-£386.99 - £55.20 Over £387 - £60.60

Non-Dependants not working or working less than 16 hrs per week 18+ not on IS/ibJSA (or a government training scheme other than YT) £14.80 25+ and on IS or ibJSA £14.80 25+ and entitled to universal credit There is no non-dep deductions for anyone under the age of 25 on IS/ibJSA or 16/17 years old Full time students (except in the summer holidays if they work) Again these are Advisernet figures the amount on WDC website is £9.40

Problem Areas Claiming /Starting dates Two different forms, one for Local Authority Housing and one for Private landlords/Registered Social Landlords Date on which clients entitlement to HB begins often depends on the date of the claim. WDC may ask for additional information- client must provide this within one month or this may be affected. Always paid in arrears although LA must pay HB within 14 days of the date it receives the claim or as soon as reasonably practicable after this (applies to private and Housing Association tenants)

Rent Restrictions (cont) The local authority, not the rent officer, will determine rent for an exempted property Claimants whose rent is restricted will find that their LHA does not meet their housing costs. If they cannot negotiate a lower rent, they will have to pay the difference themselves

Backdating Claims In “exceptional circumstances” where a claimant can show good cause a claim MAY be backdated for up to 6 months Pension credit claimants 3 months good cause need not be shown Good cause has it’s own legal meaning and it is extremely difficult to get backdated payments Some examples of exceptional circumstance: -Being misled by official information either by WDC or DWP -Not reasonably being expected to understand the regulations due to age, literacy or language problems Must claim in writing and may be asked to provide evidence.

Discretionary Housing Payment Local Authorities have the discretion to make additional payments if they believe someone needs further financial assistance with their housing costs (either rent or council tax). Local authorities do not have to make these payments and a refusal cannot be taken to appeal Only available if you already get some HB or CTR and applications can be made online or by form (financial statement must be included). Almost 100% of DHP’s applied for in April with respect to the bedroom tax were awarded for up to 6 months now people are reapplying and WDC are running out of funds. Applicants now may get it all, a percentage or nothing depending on their circumstances.

Appealing a HB,LHA or CTR Appealing a benefit decision on HB,LHA or CTR is similar to appealing other welfare benefits. Your client should ask for a written explanation of the decision. The client has 1 month to appeal against the decision giving reasons why they disagree. Any time taken by the local authority to reply to any request for a written decision is not counted in the 1 month period Appeals must be in writing either from – person claiming benefit/landlord who receives direct payment of benefit/ someone who is dealing with a claim on behalf of someone who is unable to do so themselves/someone who the council has appointed to act for the claimant or who they are planning on taking the overpayment from. If they look at it again but do not change their decision you can appeal to an independent Tribunal

COUNCIL TAX Council tax is a domestic property based tax paid to the local authority to help pay for the services they provide Some dwellings are exempt from council tax these exemptions are available on Advisernet but some examples are as follows

Exemptions Severe Mental Impairment Properties left empty (unfurnished and unoccupied) for up to 6 months Properties left empty by certain groups (for example, prisoners or people in care) Properties occupied by certain groups of people such as students or people under the age of 18

Water and Sewerage In Scotland water and sewerage is included in the council tax bill. These will also vary according to the band Everyone needs to pay water and sewerage regardless if they are on council tax reduction or not unless they are exempt Water sewage goes from Band A- £5.05pwk to Band D £7.56 pwk Each band is calculated as a proportion of Band D

Reductions for Council Tax Council Tax Reduction Reduction for disabled people If only 1 person living in the property a 25% discount applies Second adult rebate Property both unoccupied and unfurnished Band A* is the band for disabled people If property both unoccupied and unfurnished – less than 6 months have elapsed since the end of the last period throughout which it was continuously occupied. Evidence of residency at alternative address, bills confirming new address, fuel bills showing little or no consumption at subject address. If staying with family, friends – letter from employer or bank statements showing alternative address.

Second Adult Rebate A liable person may claim second adult rebate as an ALTERNATIVE to main CTR it may be applicable if the other person who is not jointly and severally liable living with them, and that person is on a low income or benefit and does not pay rent Joint and Several Liability – applies to people with joint ownership or a joint tenancy and/or a couple who are married or civil partners or living together as if they were married or in a civil partnership.

Calculating SAR 2ND Adult (or all 2nd adults) on IS/ibJSA - 25% of CT 2nd Adult total gross income under £196.00 - 15% of CT £196.00 or over a week but not over £254.99 per week -7.5% of CT £255 per week or more - Nil

Council Tax Reduction (CTR) Entitlement to CTR is based on the claimants circumstances including The amount of council tax they have to pay after any discount or reduction has been made Any non-dep living in the house The applicable amount Income Assumed income from capital

Who Can Claim Claimants can be people who Are liable to pay council tax for a house in which they live Have no more than £16000 in savings On Guarantee element of Pension Credit no savings limit. In order to make a claim: -fully completed application form -proof of identity -NINO -Evidence of income, savings and all capital Again remind client to get a receipt

Calculation People on IS or ibJSA will get 100% of weekly liability less any deduction for a non-dependant People not on IS or ibJSA will have their benefit calculated on the basis of their Council Tax minus any band reductions, deductions for non-deps living in the house and their income There is NO benefit for water & sewerage

Types of Non- Dependants Non Dependants in work of 16 + hours 18+ less than £200.00 £3.95 18+ £200 to £345.99 £7.85 18+ £346 to £429.99 £9.95 £430 OR MORE £11.90 Not working or working less than 16 hrs 18+ not on IS/ibJSA (or on a government training scheme) £3.95 Under 25 on IS/ibJSA NIL Same as HB slight variations on WDC website

Non-Dependent Deduction As in Housing Benefit there is no non- dependent deduction for claimants or their partners who are blind, receive the care component of Disability Living Allowance or Attendance Allowance

Calculation Like HB the reduction is worked out by comparing income levels with the applicable amount. If the income is less than or equal to the applicable amount maximum CTR is payable If income is greater than applicable amount the CTR is the maximum benefit less 20% of the difference between the income and the applicable amount This will be shown on QBC breakdown