The Housing Benefit is now part of Universal Credit for those of working age, but remains available for those over State Pension age and for specific types of accommodation.
Understanding Housing Benefit and How to Apply
Housing benefit is designed to support tenants on low incomes. It does not apply to homeowners, although they may qualify for loans to help pay mortgage interest under certain conditions.
People under the age of 66 making a new claim for housing benefit must generally be in receipt of Universal Credit (UC).
Exceptions include residents of supported or sheltered housing, survivors of domestic abuse in refuges, or people in temporary accommodation arranged by the council. People over the age of 66 can always reapply for housing benefit.
If you have a partner, they must also be over state pension age, or you must have claimed pension credit as a couple before 15 May 2019, or live in the specified types of accommodation.
Circumstances that may prevent a claim for housing benefit include having savings in excess of £16,000 (unless receiving the Guarantee Credit element of Pension Credit) or living in the home of a close relative.
For clarification, the government recommends using free, anonymous benefit calculators or consulting a local benefits adviser.
Homeowners seeking help with mortgage interest can refer to the mortgage interest support scheme on the MoneyHelper website, supported by the Government.
Housing Benefit Calculation
The amount of housing benefit depends on a number of factors, including household income (benefits, pensions, savings over £6,000), the type of rental accommodation (private, council or social) and household size.
For private tenants, the allowance is influenced by the Local Housing Allowance (LHA), which is set to match or exceed the rent levels of the cheapest 30% of rental properties in the area. You can find out the Housing Benefit for your area online.
Over recent years, the LHA has been adjusted or frozen, but was reset in April this year to cover the cheapest 30% of rents locally. This adjustment is designed to ensure that taxpayers do not fully subsidise rents in high-end properties.
Those facing exceptional financial hardship can claim discretionary housing benefit from their local authority.
The benefit cap, which applies to people between 16 and state pension age, can also limit housing benefit.
Application Process
There are two main ways to apply for housing benefit. The first is to apply to your local council using a postcode checker, which directs you to the appropriate website.
The second is to claim Pension Credit, which increases older people’s income up to a minimum level (£218.15 for singles and £332.95 for couples). If you are already in receipt of Pension Credit, contact the Pensions Service for more information.
Applications can be made in advance, for instance, if you are planning to move house, although it is unlikely that the funds will be paid before the move. Backdated requests may also be possible.
The government requires information and evidence to support your application; a detailed list of documents required is available. Any changes in circumstances must be reported promptly, with current examples described by the government.
For social housing renters, housing benefit is usually paid directly into the rent account. For tenants in the private sector or a housing association, the allowance is generally paid into the account of the bank or building society.
For more information or assistance, see the links provided by the government and other useful organisations.
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