a
Tel: 01633 212 375
What you need to know about changes to benets
The UK Government is reducing the amount of housing benet some people can claim and is making changes to other benets.
This leaet will help you nd out: - who will be a ected - where you can go to get help and advice
If you claim housing benet to help pay your rent or claim other welfare benets, you may be a ected by changes from April 2013. The changes mean that some people will get less housing benet than they did before. We know that many of you will be worried about what this could mean for you and your family. We want to help you nd out whats happening and what you can do to prepare. This leaet provides information about changes to: - under-occupying your home (when you have more bedrooms than your family needs) - direct payments - benet cap - disability benet - council tax
have? how many bedrooms do you
From April 2013, if you live in a council or housing association home and you have one or more spare bedrooms your housing benet may be reduced. This could a ect you if: - you are 16 to 61 years old - you only receive a small amount of housing benet for example, if you are working - you are sick or disabled. You wont be a ected if: - you live in a one bedroom at or bedsit, or if - you or your partner are old enough to receive pension credits. In April 2013 the pension credit age will be around 61 years and 6 months.
The rules for under-occupation will be di erent under Universal Credit. See section on Universal Credit for more information.
what is a spare bedroom?
Under the new rules if you have more bedrooms than the Government says you need, you will lose part of your housing benet. The new rules mean you will be allocated one bedroom for: each adult couple any other person aged 16 or over two children of the same sex under the age of 16 two children under the age of 10 regardless of their sex - any other child - a carer (who does not normally live with you) if you or your partner need overnight care. It does not matter how the spare bedroom is used, the new rules will apply even if: - you and your partner need to sleep apart because of a medical condition - your children mainly live somewhere else, but you have a spare room for when they stay with you.
what happens if you have a spare bedroom?
If you have one spare bedroom your housing benet will be cut by 14% of full the rent and service charge on your property. If you have two or more spare bedrooms, you will lose 25%. If your benet is cut you will have to pay your landlord the di erence between your housing benet and your rent.
mr & mrs bell
Mr and Mrs Bell live with their two teenage boys, aged 13 and 15, in a three bedroom house. Their rent is 100 per week and they receive 10 per week in housing benet. Under the new rules their children will be expected to share a bedroom and so they will be treated as having one spare bedroom. Their housing benet will be reduced by 14% of 100 (14), and so they will lose all their housing benet.
mr & mrs smith
mr & Mrs smith Mr andmrs Smith live in a two-bedroom at costing 70 per week in rent. At the moment housing benet covers the full cost of their rent. Under the new rules they will have one spare bedroom. Their housing benet will be reduced by 14% of their rent (14% of 70 = 9.80) Their housing benet will be reduced by 9.80 to 60.20 per week. They will have to pay 9.80 per week towards their rent.
do you have a disability and need overnight care?
If you are of working age, have a disability and need a spare bedroom so that a carer can stay overnight you should contact your local council now so that sta can help you keep more of your housing benet.
what should you do if you are under-occupying?
If you are worried about being able to a ord to pay your rent from April 2013 you should ask for advice now. If you dont pay your rent you could lose your home, so talk to Charter about di erent ways to pay. You can also: - Talk to Charter about transferring to a smaller home or taking in a lodger. - Contact your council to ask about extra nancial help. Councils have a limited amount of money available to make discretionary payments towards housing costs. Your council may prioritise your claim if you have a disability and your house has been adapted. - get in touch with your local citizens advice bureau (www.citizensadvice.org.uk) or other local advice agencies. - make sure you are claiming all the benets you can, for example, money to help with the costs of a disability. - try to nd some paid work to increase your income.
credit under-occupying your home under universal
The rules for under-occupancy under Universal Credit will be slightly di erent. Under this new benet, the rules for having a spare bedroom will apply unless both members of a couple are over pension age. Under the existing Housing Benet system, only one member of a couple needs to be over pension age for under-occupation not to apply.
universal credit and payments direct to you
From October 2013 the Government is changing the benets system. A number of benets will be replaced to make the system simpler. The new benet will be called Universal Credit and only one payment for all of your benets, including your Housing Benet, will be made. You will no longer be allowed to have your Housing Benet paid direct to your landlord. The Government is doing this as it wants people to manage money for themselves. You will receive a monthly payment, in arrears, so it is important that you budget for your money to last the whole month. This also means that from the date that you start to receive Universal Credit, you will be responsible for paying your own rent. You will need to make sure that you pay your rent every month when you receive your payment of Universal Credit; if you do not pay your rent you risk losing your home. If you want to discuss di erent ways that you can pay your rent, please contact a member of the Rent and Financial Solutions Team. It would also be better if you didnt pay your rent in arrears at the end of the month. You might like to start putting a small amount of money away now so that you are not faced with a large amount to pay when you change to Universal Credit. You could start to make payments of 4 monthly or 1 weekly to your rent account.
who will be a ected and when?
Who? Households of working age who claim in-work or out of work benets. These include Income Support, Income Based Job Seekers Allowance or Employment and Support Allowance, Housing Benet, Child Tax Credit and Working Tax Credit. When? All new claims from October 2013. Existing claims will be moved over between October 2013 and October 2017.
limit on benets
From April 2013, the overall amount of benet you can receive will be capped. The Government will add up how much money you get from a range of benets, including: housing benet, jobseekers allowance, income support, employment support allowance, child benet, child tax credit and carers allowance. If the total comes to more than the maximum amount allowed your housing benet payments will be reduced. The maximum amount of benet you will be able to receive from April 2013 will be: - 500 per week for single parents - 500 per week for couples with or without children - 350 per week for single people without children. This will not apply to you if: - you get pension credit or working tax credit - a member of your household is claiming disability living allowance, attendance allowance, industrial injuries benets or the support element of employment support allowance.
personal independence payment
The new Personal Independence Payment (PIP) will replace Disability Living Allowance (DLA). This new benet is designed to provide similar help to people with disabilities but it will be easier to understand. There will be regular reviews for people in receipt of PIP to make sure that they are assessed on their current needs. PIP will be assessed across the entire day. It has two parts: Daily Living and Mobility and each has two rates: Standard and Enhanced. The decision on an award will be made by a Decision Maker based on information from a medically qualied person.
qualifying for personal independence payment
To qualify for PIP, you must: - be of working age (16-64) - have had a disability for three months prior to your application and be expected to continue to have that disability for at least nine months after - past residence and presence tests (you must have the right to remain in the UK and not be living abroad for more than 12 weeks of the year) Who will be e ected and when: The new benet will be introduced in phases. - From June 2013 all new claims will be assessed using the PIP rules. - In Autumn 2013, any reviews and changes of circumstances relating to existing DLA claims will be assessed using the PIP rules. - The Department for Work and Pensions intends to reassess all DLA claims starting early 2014 and hopes to nish by 2016.
changes to council tax benets
Council Tax Benet is changing. From April 2013 more people will have to pay towards their Council Tax. As part of its plan to reform the welfare system the UK Government has cut the funding for Council Tax support available to local authorities. In addition it has asked local authorities to devise their own schemes for paying the benet. The Welsh Government is working on the detail with local authorities (including Newport, Torfaen and Monmouthshire). The Council will write to you as soon as they have more information (this is not likely to be until early December).
dont panic
we can help
Charter is keen to visit you to talk through issues that might be of concern, so please get in touch. Please call us on: 01633 212 375 or visit: www.chaterhousing.co.uk Alternatively, you can talk to your: - local council - citizens advice bureau - local advice agency
for more information
- Get more information about the cap on benets by calling the Governments information line on 0845 605 7064.
