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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. Rent Restrictions
A rent restriction is applied if the rent is deemed too high or the property too large
Under occupancy applies from April % 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

9. 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

10. Payments for non-dependants working 16 hours or more per week
18+ less than £ £14.80
18+ £136 to £ £34.00
18+ £200 to £ £46.65
18+ £259 to £ £76.35
18+ £346 to £ £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-£ £29.60
£234-£ £48.45
£310-£ £55.20
Over £387 - £60.60

11. 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

12. 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)

13. 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

14. 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.

15. 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.

16. 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

17. 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

18. 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

19. 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

20. 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.

21. 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.

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

23. 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

24. 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

25. 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

26. Types of Non- Dependants
Non Dependants in work of 16 + hours
18+ less than £ £3.95
18+ £200 to £ £7.85
18+ £346 to £ £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

27. 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

28. 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