A Shelter guide. Updated July Housing benefit. Understanding the rules about when the council can pay your rent

Transcription

1 A Shelter guide Updated July 2013 Housing benefit Understanding the rules about when the council can pay your rent

2 Housing benefit If you rent your home and you have a low income or are claiming benefits, you may be entitled to housing benefit to help you pay your rent. This guide explains how to claim, how your entitlement is calculated, and what to do if you have problems with your claim. The rules about housing benefit can be complicated and this guide is only an introduction to the law. See Jargon explained on page 36 for an explanation of some of the terms that are often used. If you need more detailed information, you should get advice from a Shelter advice service or citizens advice bureau, or call Shelter s free housing advice helpline (open 8am to 8pm Mon to Fri and 8am to 5pm on weekends. Calls are free from UK landlines and main mobile networks). Shelter s free online housing information shelter.org.uk/advice If you live in Wales, Scotland or Northern Ireland you can contact Shelter Cymru, Shelter Scotland or the Housing Rights Service (see pages 42 43). If you have fallen behind with your rent payments because there is a problem with your claim, get help as soon as possible.

3 Contents Introduction to housing benefit 4 What can housing benefit help you with? 4 Who is eligible for housing benefit? 5 Who is not eligible for housing benefit? 5 What is the maximum housing benefit I can receive? 8 How housing benefit is calculated under the LHA rules private tenants 9 How housing benefit is calculated under the old rules private tenants 10 How housing benefit is calculated council and housing association tenants 11 How much housing benefit will I receive? 12 Benefit cap 15 Making a claim for housing benefit 16 Getting your claim backdated 20 Waiting for a claim to be processed 21 How housing benefit is paid 24 Housing benefit decisions 24 Changes you should tell the council about 26 Discretionary housing payments 27 Special rules 28 Challenging a decision 30 Universal credit 34 Where to get further advice 35 Jargon explained 36 Evidence checklist 39 Contact Shelter 42 Useful organisations 43

4 Introduction to housing benefit Housing benefit can help you pay the rent on your home. You don t have to be receiving other benefits you may get housing benefit if you are working but have a low income. The amount of housing benefit you are entitled to will mainly depend on: your income how much rent you pay the size of your home who you live with if any service charges are included in your rent if you have a private, council or housing association landlord. You may get enough housing benefit to cover the whole of your rent, but many people only get enough to cover part of it and have to pay the rest themselves. What can housing benefit help you with? Most people who pay rent can claim housing benefit, it doesn t matter who your landlord is, or whether you live in a house, flat, bedsit, hostel, or bed and breakfast. As long as you are, or your spouse, civil partner or cohabitee is responsible for paying the rent, you can make a claim. If you rent a mobile home or houseboat, you may be able to claim for the rent, pitch fee or mooring fee. Housing benefit cannot be used to pay a mortgage. If you have a mortgage, you may be able to get help with paying the interest through Support for Mortgage Interest (SMI) see Shelter s free guide Mortgage arrears or visit tinyurl.com/support-mortgage-interest If you bought your home through a shared-ownership scheme, you can claim housing benefit towards your rent and SMI towards your mortgage interest. 4 Housing benefit July 2013 update

5 Who is eligible for housing benefit? You will normally be eligible for housing benefit if: you rent your home from a private landlord, the council, a housing association or a housing co-op you rent a room in a hostel you rent or pay mooring/pitch fees for a caravan, mobile home or houseboat you live in a shared-ownership property (although you can only claim for your rent or occupancy payments not for your mortgage). Who is not eligible for housing benefit? You may not be entitled to any housing benefit if you: have savings of over 16,000 are a full-time student rent from a close relative are a person from abroad, or have been living abroad (see page 7). Savings of over 16,000 If you have savings of more than 16,000, you will not be entitled to any help at all, unless you, or your spouse, civil partner or cohabitee, receives pension credit (guarantee). Students Most full-time students are not entitled to housing benefit, but there are exceptions. You may be entitled if: you have a disability you are responsible for children you are under 19 and taking a non higher education course, such as A-levels shelter.org.uk/shelterguides 5

6 you are under 20 and someone is getting child benefit for you you are getting income support or income-based jobseeker s allowance you leave your course temporarily due to illness or carer s responsibilities you are of an age to claim state pension credit. If you don t fall into one of these categories, you will probably not be entitled to help. Part-time students can get housing benefit. The rules are complicated, and may affect the entitlement of people you live with (eg a partner). Speak to your university or college welfare service as they should have specialist knowledge about claiming benefits as a student and can check your eligibility. If you rent from a family member You can t receive housing benefit if you pay rent to your husband, wife, civil partner, or cohabitee. In addition, you may not be able to claim if you pay rent to your: parent or step-parent father-in-law or mother-in-law child or stepchild son-in-law or daughter-in-law brother or sister brother-in-law or sister-in-law spouse or partner of any of the above ex-spouse or ex-partner. In some circumstances, if the family member does not live in the same property, you may be able to claim, but there are two things the council will check first: that the tenancy is a commercial arrangement (in other words, it s a proper tenancy, not just an informal agreement between family members) that it has not been set up to take advantage of the system. This is called a contrived tenancy. An example might be, if you only have 6 Housing benefit July 2013 update

7 to pay the rent when you re not working (and when you do work, you earn too much to be eligible for benefits). People from abroad Some people from abroad will not be entitled to housing benefit. You are probably not entitled if: you are an asylum seeker. Most asylum seekers get temporary housing arranged by the UK Border Agency, a part of the Home Office (see page 43 and Shelter s free guide Asylum seekers and refugees for more information) you are from abroad and have limited rights to remain in the UK, or you have stayed longer than the time you were allowed you are from abroad and aren t entitled to claim public funds you are in the UK illegally (the council can investigate your immigration status and inform the Home Office if it thinks you came to the UK illegally). If you are unsure of your immigration status, you may need to get help. The Office of the Immigration Services Commissioner provides advice on finding an immigration adviser (see page 43). European nationals You will be entitled to housing benefit if you are from an European Union (EU) or European Economic Area (EEA) country and you are working or self-employed in the UK. Your family members may also be eligible for assistance. If you are a worker from Croatia, Bulgaria or Romania you may also have to have obtained a worker authorisation certificate to be eligible. (If you are from Bulgaria or Romania, restrictions are due to end on 31 December 2013.) Habitually resident If you are not habitually resident in the UK, the Channel Islands, the Isle of Man, or the Irish Republic you will not be entitled to housing benefit. If you have come to, or recently returned to the UK after living abroad, shelter.org.uk/shelterguides 7

8 even if you are a British citizen, the council will check whether you are habitually resident. The check looks into where you normally live. The length of time you have to have been living in the UK to be habitually resident will depend on your individual circumstances. If you had been habitually resident before, moved abroad and then returned to the UK, you should be habitually resident straight away. If you are an EU or EEA national who is entitled to housing benefit, (see European nationals on page 7) you are automatically treated as habitually resident. What is the maximum housing benefit I can receive? There are different sets of rules to calculate the maximum housing benefit you can receive. One set applies to council and (most) housing association tenants. Another, known as local housing allowance (LHA), applies to most private tenants. Finally some private tenants will have housing benefit calculated under the old rules. Whichever rules are used, the amount of housing benefit you receive should be: the maximum amount that the council can pay for your home (this is known as your eligible rent or maximum rent ) minus the amount that the council decides you can afford to pay yourself. If you are not sure if you are receiving the right amount, contact a Shelter advice service or citizens advice bureau and ask them to check for you (see pages 42 43). If you rent your home from a private landlord, your housing benefit will be calculated under the LHA rules (see page 9) unless you claimed before 6 April Although there are limited exceptions. If you rent your home from a private landlord and you ve been claiming housing benefit from before 6 April 2008 or have a Rent Act tenancy or you live in a hostel, houseboat or caravan, your housing benefit will be calculated under the old housing benefit rules (see page 10). 8 Housing benefit July 2013 update

9 How housing benefit is calculated under the LHA rules private tenants If you rent your home from a private landlord, your housing benefit will be calculated under the local housing allowance (LHA) rules unless you claimed before 6 April There are limited exceptions. The maximum LHA you can get is set for the area in which you live, and is also limited to the size of property deemed appropriate for your household. You can t get more than your actual rent. The council can tell you what the LHA rates are for your area, or you can find them out on the LHA Direct page on the Valuation Office Agency website (tinyurl.com/valuationoffice). The LHA rates are increased in April every year. Size of the property The council will work out how many bedrooms your household needs. One bedroom is allowed for: a couple a person over 16 one child (if they are an only child) two children under 16 of the same sex two children (regardless of sex) under 10 a carer (if you or your partner requires overnight care). You may be allowed an additional bedroom if you: have more than one child and one or more of them is severly disabled are an approved foster carer have an adult child in the armed forces, who will return to your home. If your home has five bedrooms or more, you will only be entitled to the LHA rate for a four-bedroom property. shelter.org.uk/shelterguides 9

10 If you are under 35 and living on your own, you will only be entitled to the lower shared accommodation rate. For more information and details of exceptions to this rule, see page 28. LHA rates in your area The LHA rates for each household size will be fixed at a level that is below the average rent for properties in the area where you live. If your rent is higher than the LHA rate, to get the maximum housing benefit, you will have to: pay the difference negotiate a lower rent move to cheaper accommodation. How housing benefit is calculated under the old rules private tenants If you rent your home from a private landlord and you claimed before 6 April 2008, or you have an old Rent Act tenancy (from before 15 January 1989), or you live in a hostel, houseboat or caravan, your housing benefit will be calculated under the old housing benefit rules. The council will work out the eligible rent for your home. This is the maximum housing benefit you could receive. Your eligible rent may be less than your actual rent if: the property is too large for your needs your rent is higher than would be expected for the type of property your rent is higher than similar properties in the same area. Size of the property Your bedroom need is calculated in the same way as under the LHA rules (see page 9). Other living rooms (eg a lounge) can also be taken into account when deciding whether the property is too large. 10 Housing benefit July 2013 update

11 If the council decides that your home is larger than you need, your eligible rent will be based on the maximum rent for a home of the size it thinks is appropriate for your household. Is your rent too high? If the Rent Officer decides that the rent you are charged is too high, then your eligible rent will be worked out as the average rent for similar accommodation in the area. Before you move in You can check how much the maximum housing benefit is for a property before you move in by asking the council for a pre tenancy determination. Remember that this is only the maximum housing benefit that you could be paid for that property the council will then work out how much (if anything) you can afford to pay towards the rent yourself. How housing benefit is calculated council and housing association tenants If you rent your home from the council, a housing association, or housing cooperative your housing benefit will depend upon your income, your rent, and any non-dependent charges or excluded charges. Size of the property (the bedroom tax ) Bedroom tax will affect council and housing association tenants of working age (below state pension age) who claim housing benefit to pay some or all of their rent. You will only be affected if you are assessed as having spare rooms. There will be a limit on the number of rooms that housing benefit will pay for. Any rooms you have above the limit will be treated as spare rooms. You will be expected to pay the rent for these extra rooms yourself. shelter.org.uk/shelterguides 11

12 The bedroom tax will affect housing benefit claims for both new and existing claims from April However, if you have not claimed housing benefit in the 52 weeks before a making a new claim, the bedroom tax reduction won t apply for the first 13 weeks of your claim. To see if you will be affected by the bedroom tax, use Shelter s online checker tool at tinyurl.com/bedroomtax-checker The bedroom tax won t affect you if you (or your partner) have reached state pension credit age. On 1 April 2013, when the bedroom tax started, you will have reached state pension credit age if you are a man or woman aged 61 years and 5 months. You can check if you are of pension credit age by using the Gov.uk state pension age calculator at The reduction to housing benefit for households with extra bedrooms also won t apply to: people living in shared ownership properties people living in caravans, mobile homes and houseboats people living in some types of supported accommodation homeless people housed in temporary accommodation provided by the council (unless it is owned by the council). If your housing benefit is cut because of the bedroom tax you may need to discuss your options with your landlord, or you can speak to a Shelter advice service or citizens advice bureau (see pages 42 43). How much housing benefit will I receive? After the council has worked out your maximum rent or eligible rent (see page 10) the amount of housing benefit you will get depends on: your income who you live with your rent and what is included in it the benefit cap see page 15 for more details. 12 Housing benefit July 2013 update

13 Your income The amount of housing benefit you receive will be affected by the income you have, including any benefits you receive. On benefits If you receive the following benefits: jobseeker s allowance (income based) income support employment and support allowance (income related) pension credit (guarantee) you will be entitled to the maximum housing benefit. Though this may still not cover your whole rent (see below). Not on benefits If you are not on one of the above benefits the council will then look at how much money you have coming in, including: wages (yours and your partner s) maintenance payments benefits and tax credits pensions grants, bursaries, and student loans. Disregarded income If you are working, the council will ignore between 5 and 25 of your weekly earnings when calculating your income. Certain other income can also be ignored, including child benefit. The amount disregarded will depend upon your individual circumstances. Income above a certain level Your housing benefit will be reduced by 65% for every pound of income (except disregarded income) you have above the level the Government says you need to live on. This level is known as your shelter.org.uk/shelterguides 13

14 applicable amount and varies according to your particular circumstances, such as whether you are single or not, have children living with you, or if you have a disability. Savings and investments If you have any savings or investments your housing benefit may be reduced. This includes redundancy payments. If you are of working age and you have savings of more than 6,000, the amount of benefit you receive will be reduced. If you have savings of more than 16,000, you will not be entitled to any help at all. If you, or your partner, is of pension age, the amount of benefit you receive will be reduced if you have savings of more than 10,000. Non-dependent deductions The amount of housing benefit you receive may be reduced if you live with an adult family member who is not your spouse, civil partner or cohabitee, for example an elderly relative or an adult son/daughter. It is assumed that these people can pay something towards your rent whether they do or not is irrelevant. The reduction of your housing benefit will depend on their age and income. If they are not willing to give income details, ask them to contact the housing benefit office directly. No deduction will be made if any of the following applies: you or your partner are registered blind you or your partner receive attendance allowance or the care component of disability living allowance the person living with you is receiving pension credit the person living with you is under 25 and receiving jobseeker s allowance (income based) or income support the person living with you is a full-time student (unless they have full-time work during the holidays). 14 Housing benefit July 2013 update

15 Excluded charges Housing benefit will normally only cover the rent and certain service charges, such as the upkeep of communal areas. Water bills and other service charges will not be covered, including: cooking, food or meals heating, hot water, or lighting personal laundry or cleaning services personal alarm systems personal support and care. However, if your housing benefit is calculated under the local housing allowance rules (see page 9) it doesn t matter if any of these charges are included in your rent, as they will not affect the maximum housing benefit you are paid. Joint tenants If you are a joint tenant, the total rent payable may be divided between the two of you in order to calculate your eligible rent. This normally happens when your joint tenant is not your partner (eg if you have a joint tenancy with a friend). Benefit cap The total amount of benefits that many people of working age can receive will be limited to a maximum of: 500 per week for single parents and couples with children 350 per week for single people. In most areas, the benefit cap started from 15 July However, if you live in one of the areas below, the introduction of the benefit cap has been delayed until 12 August 2013: Bexley, Barking and Dagenham, Barnet, Birmingham, Bradford, Brent, Brighton and Hove, Bristol Camden, Cardiff shelter.org.uk/shelterguides 15

16 Ealing, Edinburgh Glasgow, Greenwich Hackney, Hammersmith and Fulham, Harrow, Havering, Hillingdon, Hounslow Islington Kensington and Chelsea Lambeth, Leeds, Leicester, Lewisham, Liverpool Manchester Newham, Nottingham Redbridge Sandwell, Sheffield, Slough, Southwark Tower Hamlets Walsall, Waltham Forest, Wandsworth, Westminster. The benefit cap will apply to your household s combined income from benefits, including housing benefit, child benefit, jobseeker s allowance and income support. Although some benefits and payments are disregarded, including discretionary housing payments (see page 27). Your housing benefit will be reduced to make sure that the total amount of your benefits is not more than the benefit cap level. You won t be affected by this cap on benefits if you, or your spouse or partner: are of pension age get war widows/widowers pension get certain disability benefits receive working tax credit, or you work sufficient hours to qualify for working tax credit (this varies according to your age and circumstances). The benefit cap will not also apply to you for nine months if you are made redundant, and you (or your spouse or partner) had been in work for a year or more. 16 Housing benefit July 2013 update

17 If you think you will be affected there is an online benefit cap calculator on the Gov.uk website ( which will give you an estimate of the amount your housing benefit may be reduced. Making a claim for housing benefit Claims are usually dealt with by the housing benefit department of your local council. If you want to claim income support, employment and support allowance, income-based jobseeker s allowance, or pension credit (guarantee), or you are already getting one of these benefits, you claim housing benefit by contacting Jobcentre Plus on ; or the Pensions Service (with pension credit claims) on If you are liable to pay council tax you can also make a claim for council tax support from the council. How do I get a claim form? Phone or visit the housing benefit department at your local council, telling them you want to make a claim for housing benefit. The council will then send you a claim form. You can find details for the housing benefit department in the local phone book or on your council s website. Often you can claim online on the council s website. When should I claim? Claim as soon as possible. If you know you will be moving to a new address, you can claim in advance, but you will not usually be entitled to any benefit until after you move in. It s better to apply by phone, in person or online on the council s website, as a letter could get lost in the post. If you have not completed the form online you should be sent a claim form, which you have to complete and return with all the necessary information. However you claim, you will have to send or take in documents to support your claim. shelter.org.uk/shelterguides 17

18 When do I get paid? Any payments you receive should start from the Monday after the day you told the council that you wanted to claim not the date you handed your form in. If you live in a hostel or you claim in the same benefit week that you first become liable to pay rent, any payments should begin from the first day of your tenancy. A benefit week runs from Monday to Sunday. If you claim housing benefit within one month of claiming certain other benefits (eg income support) all your benefits should be paid from the same date. If you are of pension credit age your housing benefit should automatically be paid for up to three months before you claimed it, as long as you qualified for housing benefit and you were old enough during that period. This does not apply if you, or your partner, is claiming income support, income-based jobseeker s allowance or income-related employment support allowance. If you have to start paying rent on a new home, but can t move in until a later date, you may, in limited circumstances, be able to claim for up to four weeks before you move in. If you are of working age, and think that you were entitled to housing benefit at any time in the last six months, and you have a good reason for not claiming sooner (eg because of an illness), you can make a backdated claim (see page 20). How should I fill in the claim form? When you are filling in the form, try to give as much information as possible. Be honest if you lie or withhold information, you could end up being paid too much benefit which you would have to pay back later. You could also face a 50 civil penalty or even be prosecuted. If you are having problems completing the form, ask the council or a Shelter advice service or citizens advice bureau for help. 18 Housing benefit July 2013 update

19 Why does the council ask so many questions? Everyone s circumstances are different. It is difficult to have one form that will ask each person the right questions for their situation. The council also needs to have enough information about your income and outgoings before it can work out what you are entitled to. Answer all the questions, or the council may send the form back to you, causing delays. What information do I have to provide? When you answer each question on the form, it will tell you whether you need to support your answer with evidence. The Evidence checklist on pages lists some documents that the council might want to see. If you cannot provide a particular document, you can ask the council if another document you have will do instead. If you can t find all the information the council asks for straight away, hand the form in, or complete it online. You normally have one month in which to provide all your information. If you are having difficulty getting it, you can ask the council to give you more time. Explain to the council that you are trying to get the information but are having difficulties. If you don t tell the council, and it doesn t receive everything from you within a month, it may decide that you are not entitled to any help. If your circumstances change at any time after you first claim, you should tell the council as soon as possible (see page 26). Can I post the form? You can post the form, but you may want to send it by recorded delivery, or ask for a free certificate of posting from the Post Office. If you don t, you will have no record or proof that you posted it. Unless you visit the council offices you will have to send your original documents (such as passports and birth certificates) through the mail. If you do send them, make sure you take photocopies first. shelter.org.uk/shelterguides 19

20 If possible, hand the documents into the council offices in person (or get someone to do it for you). This will ensure your documents don t get lost in the post. Even if there is a queue: wait and get a receipt for the form and any information you provided ask for your documents to be photocopied so you can take the originals home with you keep the receipt in a safe place. If the council loses your form after you have handed it in, your receipt is evidence that it had received your application. Remember, if your form goes missing and you don t have a receipt, you could end up having to pay the rent yourself. It will be your word against the council s that you returned the form. Getting your claim backdated If you are of working age, you think that you were entitled to housing benefit at any time during the last year, and you have a good reason for not having claimed before, you may be able to have your claim backdated. If you are of an age to claim pension credit, see Special rules for people who are of pension age on page 20. Good reasons for claiming late You may have a good reason if you: had an illness or a mental health problem that meant your were unable to manage your personal affairs experienced a personal trauma or bereavement have been given bad advice (this must have come from someone who should know about benefits, such as staff at Jobcentre Plus, the council or an adviser bad advice from family or friends will not normally count). 20 Housing benefit July 2013 update

21 These are just examples you might have other reasons which could be taken into account, for example if you have difficulting communicating in English or you have difficulty reading or writing. It is not usually enough to say you didn t realise that you were entitled to help. If you want to make a backdated claim, do so as soon as possible. You must show that you had a good reason for not claiming for the whole of the period you are claiming for. Evidence to back up your reasons It will help if you can provide a letter from someone to support your reasons for not claiming earlier. For example, this could be from your: doctor health visitor social worker housing officer support worker. How to ask for your claim to be backdated You must ask the council to backdate your claim, although there is often a question on the claim form asking if you want to claim housing benefit for a past period. Some councils have a separate claim form for backdated claims. You may have to include a letter or statement with your form, explaining why you could not have claimed sooner. Enclose any evidence you have to back up your request. Your claim should be processed in the normal way and you should receive a decision letter. If you disagree with the council s decision, you can ask the council to look at its decision again or you can appeal (see page 30). Special rules for people who are of pension age If you are of pension credit age your housing benefit should automatically be paid for up to three months before you claimed it, as long as you qualified for housing benefit and you were old enough shelter.org.uk/shelterguides 21

22 during that period. (This does not apply if you are a man under 65, and you or your partner, is claiming income support, income-based jobseeker s allowance or income-related employment support allowance, in which case you must claim backdated housing benefit in the same way as someone of working age, see page 20.) The rules about pension age are not as straightforward as they once were, and the age varies according to when you were born. See the Gov.uk website for details Waiting for a claim to be processed Once you have posted/handed in your claim form, you have to wait for it to be processed. The council will look at your form and all the supporting information that you have supplied. If you provided enough information, you will receive a letter telling you what you are entitled to. If there is not enough information, the council will contact you to ask for more details or documents. If the council asks for more information The council will only ask for more information if it doesn t have enough to process your claim. You should provide everything asked for within a month. Make sure you get a receipt and keep all records safe. If you are having difficulty providing the information, contact the council and explain the problem. The council may be able to request information from the Jobcentre Plus, your employer, or other relevant organisations on your behalf. In some cases, other information you have may be enough. How long it takes This varies a lot, but in some areas it can take weeks. However, you may be able to ask for a payment on account (see page 23). If you posted, handed in or completed your form online a while ago and still haven t heard anything, you should phone or visit the council. Do not just leave it or assume the council is looking at your claim. Ask 22 Housing benefit July 2013 update

23 the council to confirm it has received your form and all the information needed to process your claim. Make a note of: the name of the person that you speak to the date that you spoke to them what they told you. Keep this in a safe place with all of your earlier paperwork. Can I stop paying rent? If you are waiting for your claim to be processed pay some or all of your rent if you can. You may not be entitled to any housing benefit, or you may only get help with part of the rent. If you don t pay any rent, you will end up with large rent arrears. Claims can take a long time to process and your landlord might decide to take action to evict you if the rent is unpaid. If you are finding it difficult to pay and you are not sure whether your benefits will cover your rent, continue to pay as much as you can afford. It s usually best to tell your landlord that you have claimed and are waiting for a decision. If you already have rent arrears, see Shelter s free guide Rent arrears for more information about your rights and options. If the council loses your claim and supporting documents This does not often happen, but forms do get lost. If this happens, you will have to fill in another form and provide the information required again. If you have receipts for the original form or the information you handed in, include copies of these with the repeat form. Your benefit should normally be paid from the Monday after you first claimed. Even if you don t have a receipt for the first form, tell the council that you submitted it anyway. But bear in mind that if you don t have a receipt or other evidence, you may not receive any benefit until the date you asked for another claim form. shelter.org.uk/shelterguides 23

24 Can I get a payment on account? If you are not a council tenant and you haven t received a payment within 14 days of submitting your form and you have provided all the information and documents requested, you will be entitled to a payment on account. This is a stopgap payment while you are waiting for your claim to be processed. You should get a payment on account automatically, but this often doesn t happen, so you may have to ask for it. Do this as soon as possible after the 14 days, to avoid building up rent arrears. Once your claim is assessed, any difference between what you are entitled to and the payment on account will either be refunded to you or reclaimed from you. If the council doesn t make a payment on account, you can make a complaint using the council s formal complaints process (see page 34) or you can take legal action. How housing benefit is paid If you are a council tenant your housing benefit will be paid directly to the council and credited to your rent account. If your landlord is a housing association or a private landord and the local housing allowance (LHA) rules don t apply to you (see page 9) you can ask to have housing benefit paid directly to yourself or directly to your landlord. If you have a private landlord and the LHA rules apply to you, your housing benefit will normally be paid directly to you. However, if: you have rent arrears of eight weeks or more, or deductions are being made from your benefits to pay off your rent arrears your housing benefit should be paid directly to your landlord. The council may also pay your landlord directly it it believes that you are unlikely to pay your rent or are unable to manage your finances. 24 Housing benefit July 2013 update

25 If the housing benefit is paid to you this will normally be by cheque, or if you agree to it, paid directly into your bank account. Housing benefit decisions Once your claim has been processed, you will receive a decision letter. It will tell you if you are entitled to any benefit and, if so, how much. The letter should state the date on which your benefits are to be paid from (see page 17). It should explain your eligible or maximum rent this is usually the actual amount of rent charged by your landlord, minus: any service charges that housing benefit will not pay any deductions that are made because of the size or location of your home any restrictions that apply due to your age, personal circumstances or who you live with. Check to see whether it will be paid weekly, fortnightly, or monthly. If the amount you are entitled to is lower than your rent, there will be a shortfall that you will have to pay. Sometimes you may be able to get help to pay this shortfall (see Discretionary housing payments on page 27). Recovery of overpayments If you have been paid too much housing benefit you will normally have to pay it back. In most cases, a regular amount will be deducted from any housing benefit you are still receiving. If the amount that is being deducted causes you financial problems you can ask the council to make a smaller deduction over a longer period of time. If the overpayment was the fault of the council, the Department for Work and Pensions or HM Revenue and Customs, and you could not have reasonably been expected to know you were being overpaid, then the council cannot ask for it back. If you think the calculation is wrong you can ask the council to reconsider its decision or you can appeal (see page 31). shelter.org.uk/shelterguides 25

26 I m still not sure what it all means If there is anything in the council s decision letter that you are unsure about, you can ask the council to explain. You can request an explanation in writing from the council this is called a statement of reasons. I don t agree with the decision what can I do? If there is anything in the letter that you disagree with or you think there has been a mistake, you can ask the council to have another look at its decision. An adviser from Shelter, citizens advice or another agency may be able to check whether the decision is correct or not (see page 35). They will also be able to help you challenge the council if you think its decision is wrong. Changes you should tell the council about If your circumstances change, it can affect the amount of benefit that you are entitled to. You should inform the council immediately about any changes that might affect the amount of benefit you receive. It is best to tell the council, even if you are not sure. If you don t, you could end up being paid too much benefit and having to pay it back later (see page 25). In some cases it may lead to a 50 civil penalty fine. Remember, some changes may mean that you are entitled to more benefit. Any changes to the amount of benefit you receive may be effective immediately, or on the Monday after the change took place. What changes does the council need to know about? You must inform the council if: you move someone else moves into your home, or moves out a child in your household turns 16 or leaves school you have a baby you are going to be away from home for a while (eg working away) you take in a lodger or sublet your home 26 Housing benefit July 2013 update

27 your rent goes up or down. Although you do not need to tell the council if your rent goes up and your housing benefit is calculated under the local housing allowance rules (see page 9). You should also inform the council of any other changes that may affect your housing benefit, including if you (or someone living with you): have had any other benefit stopped move from one benefit to another, eg from employment and support allowance to jobseeker s allowance receive a new benefit have a change to the amount of benefit, tax credit, or pension you receive get a job, change job, change hours, or get a rise or drop in pay have to pay back money because of overpaid tax credit are signed off work and receive statutory sick pay or reduced pay have a change in the amount of savings you have go into/come out of hospital go to prison become a full-time student. If you can, write a letter, deliver it in person and get a receipt. If this is not possible, take a photocopy of the letter and a record of the date that you sent it. This may help avoid problems if the letter gets lost. Discretionary housing payments If you receive housing benefit but are having difficulty paying the rest of your rent, you may be able to get a discretionary housing payment. To qualify, the only rule is that there must be a shortfall between your benefit and your rent, but the council will usually take into account special circumstances that contribute to financial difficulties. You will not qualify if the shortfall arises because your benefit has been reduced to recover an overpayment. shelter.org.uk/shelterguides 27

28 Ask the council for a discretionary housing payment application form. This is different from the form that you filled in when you first claimed housing benefit. You will need to provide evidence of your outgoings and details of any circumstances that cause you financial difficulty. The payments are discretionary and if the council refuses to make a payment you can ask it to have another look at their decision, but if the decision isn t changed, you probably can t take the matter further. Special rules Depending on your personal circumstances, special rules may apply. For single people under 35 If you are single, under 35, and rent from a private landlord, the maximum housing benefit you can receive is the shared accommodation rate, that is the rent for a room in a shared house in your area. This is the case even if you rent a house or flat of your own. However, there are exceptions. This rate may not apply if: you have children you are living with a spouse, civil partner or partner you rent from the council or a housing association you are under 22 and have spent time in care since the age of 16 you have a severe disability, or you are entitled to an extra bedroom for a non-resident carer. Or, only if you are aged 25 to 34 and: have left prison and are subject to Multi Agency Public Protection Arrangements have spent at least three months in a hostel for homeless people (this can include women s refuges and drug rehab hostels, and doesn t have to be in one stay) and have accepted resettlement support. 28 Housing benefit July 2013 update

29 If you could afford the rent when you moved in and you have not claimed housing benefit in the past year, the shared accommodation rate will not apply for the first 13 weeks. Also if you share your accommodation with a partner or you have a child who lives with you or you rent from the council or a housing association this rate will not apply to you. Before 1 January 2012, the shared accommodation rate only applied to people under 25. If you were an existing claimant before this date, you will be affected by this change nine months after the anniversary of your claim. Everybody will have been affected by these changes by 30 September If this restriction causes you financial hardship, you could apply for a discretionary housing payment (see page 27). Care leavers If you ve left care and you re still under 18 years of age, you probably won t be able to claim housing benefit. However, you will be entitled to financial support from social services. Once you reach the age of 18 you can claim housing benefit provided you meet all of the usual criteria (see page 5). Paying rent on two homes Normally you can only get help to pay the rent on one home at a time. It may be possible to get help with more than one home under the following circumstances: (for up to 4 weeks) if you have moved but there is an unavoidable overlap between the end of the tenancy of your former home and moving to your new home (for up to 52 weeks) if you left your home because of violence or fear of violence, but you intend to return (for up to 4 weeks) if you can t move into your new home until adaptations to the building have been carried out because you, or someone you live with, has a disability (no time limit) if the council placed your family in two homes because it couldn t provide a home big enough for your whole family. shelter.org.uk/shelterguides 29

30 Payments for two homes are not automatically given. You will have to explain to the council why you are entitled to payments on two homes. Temporary absences from home You can get housing benefit if you are away from home for up to 13 weeks, as long as you intend to come back to your home and you are not likely to be away any longer. In certain circumstances you may be able to get payments for up to 52 weeks, providing you intend to return, this can include if: you are in hospital you are in prison on remand you have left home because of violence or fear of violence. Payments before you move in You will not usually get any housing benefit for a period before you move into a new home even if you have to pay rent before then. However, it may be possible to get payments for up to four weeks before you move in if: you are waiting for a social fund payment to help you move or set up home you are wating to leave hospital or a care home. Challenging a decision If the council has made a decision about your claim for housing benefit that you do not agree with, there are things you can do. Requesting the council reconsiders its decision If you have received a decision, or an explantion of its reasons, from the council that you do not agree with, you can ask it to look at the decision again. You might want to ask the council to reconsider a decision about: whether you are entitled to benefits the amount you are entitled to 30 Housing benefit July 2013 update

31 the date from which your benefit will be paid a refusal to backdate your claim an overpayment being recovered from you. You have to ask for this in writing within one calendar month of the date on the decision letter (if you asked for a statement of reasons, the days between when you asked for and received the statement are not counted). You can ask the council to extend the one-month limit if you have good reason for not requesting a reconsideration earlier (eg because you were ill). Your letter should explain why you think the decision is wrong and provide evidence if possible. If you can, hand in the letter in person, take a photocopy and get a receipt. Keep all paperwork safe and make a note of the date it was posted/ handed in. You can apply for an appeal (see below) at the same time as you request a reconsideration of a decision, or you can wait to see if the council revises its decision first. What happens when the decision is reviewed? The council will look at your claim and any new information you have provided. You may be asked to provide more information when the council does this. Once the process has been completed, you will receive a letter telling you whether the decision has been changed or not. If the decision hasn t been changed, you may be able to ask for an appeal. If you have a valid appeal, an independent tribunal will look at the decision. Applying for an appeal You have to ask for an appeal in writing, sometimes you can get a special form to do this from the council. You will have to explain on the form why you think the decision is wrong, and provide evidence shelter.org.uk/shelterguides 31

32 if possible. Although the appeal will be decided by an independent tribunal, you must send your application to the council. You must request an appeal within one month of the date on the letter telling you that the council is not changing the decision. If your application is late, it may still be accepted if you have a good reason for this. If you requested an appeal at the same time as you requested a reconsideration of a decision, the appeal should go ahead automatically even if the latter is unsuccessful. But you should check with the council that this is the case. Before the appeal takes place, you will be asked whether you want to give any more information to support your case. You can get more detailed information on how the appeals process works and what you need to do at each stage from the HM Courts and Tribunals Service (see page 43). What happens after I apply? After you ve sent in your application for an appeal, you will be sent a pre hearing enquiry form. You must complete this and send it back within 14 days, or the appeal process will end. If you can t get the form back in time, it s very important to contact the tribunal and let them know why. When you fill the form in, you need to say whether you want: an oral hearing (that you, or someone representing you, must attend), or a paper hearing, which no one has to attend. It s often best to ask for an oral hearing, because this will give you an opportunity to put your case to the tribunal in person and answer any questions about your situation. Contact a Shelter advice service or citizens advice bureau if you need help completing the form or preparing your comments for the hearing (see pages 42 43). 32 Housing benefit July 2013 update

33 Representation at the tribunal Sometimes an adviser can come with you and speak on your behalf. They often have experience of attending tribunals and can present your case in the best possible light. Alternatively, most councils and some housing associations have welfare rights services, which their tenants can contact. You could employ a solicitor, but you won t be able to get public funding (also known as legal aid) to pay for this. If you need a translator or interpreter to attend to help you communicate, let the tribunal know well in advance. What happens next? If you ve asked for an oral hearing, you will be notified of the date, time and place of your hearing at least 14 days in advance. The hearing should be held at the nearest venue to you. If you can t go because of a medical condition, you can ask for the hearing to be held at your home. The appeal is decided by a legally qualified chairperson who doesn t work for the council or the Department for Work and Pensions. They will look at all the facts again and make their own decision. You (or your representative) will get a chance to explain your situation. If you re representing yourself, try not to be nervous or emotional, and present the facts to the tribunal as clearly as you can. The council may send someone to put forward its arguments. If you ve asked for a paper hearing, you won t be told when it will take place, so make sure you send your evidence in as soon as possible after you apply for it. You can usually expect the chairperson to make their decision that same day, and if you are attending you will normally be told what the decision is. If not, they will write to you with their decision. What if I don t agree with the appeal decision? You may be able appeal further to the Upper Tribunal. You can only appeal to this tribunal if you believe that the chairperson did not apply the law properly when making their decision. You should get advice from a specialist adviser, a solicitor or a welfare rights officer, before you try to do this (see pages 42 43). shelter.org.uk/shelterguides 33