Housing Benefit and Eligible charges

Why might it be of interest?
Housing Benefit is, for most people who claim Universal Credit (UC), now a legacy benefit. That means that they can’t apply for it and their rent will be paid for though a housing element of UC. However, there are some situations when rent is paid for by Housing Benefit – and young people in supported living is one of those situations.

When a person’s rent is paid for by HB there are additional service charges that can also be covered by HB rather than paid for by the individual out of their benefits.

Knowing how their rent and additional service charges will be paid is essential to the process of moving into supported living.

Housing Benefit and Eligible Charges

When a person is living in exempt or specified accommodation their rent will be covered by Housing Benefit rather than the housing allowance under Universal Credit.  This allows a higher rent to be paid plus additional eligible charges.

There is a very long list of service charges that could be considered ‘eligible’ under housing benefit so it is possible, and likely, that different LAs will consider different things eligible or ineligible – so this can only be a guide.  The eligible charges broadly fall into the following categories

Rent can include an amount for:

Insurance, voids, bad debts, annual maintenance contracts

Communal housekeeping:

eg cleaning communal areas, caretaking, refuse management

Communal utilities:

eg fuel, sewerage, water for communal areas

Facilities provided:

eg furniture, white goods, security systems

Management and administration

Maintenance, servicing and repairs:

eg covering furnishings, electrical testing, equipment repairs

Ineligible charges relate to personal daily living expenses:

eg personal heating and lighting, meals, wifi, TV licence, water/sewerage/utility charges which are not communal

Real life example, per week, rent and eligible charges:

Examples of ineligible charges:

• Personal heating and light
• Water rates
• TV licence
• Phone/wifi

Housing Allowance rates

You can only apply for HB if you are in supported living (this is what is relevant to our young people – there are one or two other situations).  Otherwise you claim for help with your rent through your Universal Credit claim.

Every local authority has a range of housing allowance rates based on areas of the borough and size of property allowed and this is the maximum amount they will pay towards your rent.  For example, LB Richmond has 3 regions each with a different housing allowance for each size of property.  They have a rate for shared accommodation, 1, 2, 3 and 4 bedroom houses.  Examples:  a 25 year old young person would only be eligible for the shared accommodation rate; a couple would be eligible for the one bedroom rate.

The rules are different for people in receipt of a disability benefit – PIP daily living component – and living in supported living.  For example, a single disabled young person would be entitled to the 2 bedroom rate if they require a sleep-in carer overnight.  If 2 or 3 (or more) disabled young people share a home and they would all need a sleep in carer if they lived alone they can each claim the 2 bedroom rate.

However, in addition to the rate for 2 bedrooms disabled young people in receipt of PIP daily living component and a support package from adult social care may be able to claim a higher rent to ensure that they can live in a property that meets their needs.

Means tested

HB is means tested.  What this means is that if you have no other income than your benefits – most likely PIP and UC (or ESA for some) you will get the full amount of HB that has been calculated for you.  If you have a paid job or other income you might find that your HB is reduced to some extent because of your income.