Tenant News

Will You Be Affected By UK Government Welfare Reform?

Downsizing

Are you of 'Working Age? - Do you receive Housing Benefit? - Do you live in a home that's bigger than you need?

As part of  UK Government Welfare Reform, from April 2013, housing benefit payments are expected to be reduced for new and existing claimants living in homes that are bigger than needed.

It is anticipated that there will be a:

• 15% reduction in benefit for those with one spare bedroom
• 25% reduction for those with two or more spare bedrooms

Examples of those likely to be affected:

•  Families with foster children, as the children are not considered to be part of the 'household' in relation to the size criteria.
• Single, working age housing benefit claimants living alone in a two or more bedroom property, even where the bedroom is needed for access purposes for children.
• Couples living alone in a two or more bedroom property, even where the second bedroom is needed due to disability where there is no carer from outside the household or the room is needed for a grandchild.
• Families in three or more bedroom property, where the children could be deemed to share a bedroom i.e. two children, same gender, aged under 16 or two aged under 10 regardless of gender.

What is 'working age'?

The Department of Work and Pensions uses two separate benefit regulations - working age and pension credit age which is set at 60 at present for both men and women.  Pension credit age is not the same at present as state retirement age.

 More people will be affected by the under occupancy rule with the equalisation of the state retirement age i.e. at the moment you are working age if you are less than 60 however this will change to 61 in 2013 and eventually 66 in 2020.

What are the choices for those affected?

Move to smaller accommodation.  Eildon Housing Association offers an incentive package - please contact us if you would like to know more.

Make up the shortfall between rent and benefit out of existing income.

Get in touch with our Financial Inclusion team who can offer a benefit check to ensure all income is maximised or budgeting advice given.

Please get in touch and let us know if you think you may be affected by the under occupancy reduction in benefit  - we may be able to help with additional information and advice.

If you need advice or information on this or any other benefit or financial inclusion issue, please contact Janice Blenkinsopp or Carol Robertson on: 0845 6043733

or email benefitenquiries@eildon.org.uk