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There are some big changes to housing and other benefits that will come into effect in April 2013.
If you receive housing benefit to help you pay your rent it’s important that you understand these changes to see if you’ll be affected and what you should do.
Let us take you through the changes so you can start to plan now.
If you live in a council or housing association home and you have one or more ‘spare’ bedrooms, you’ll receive less housing benefit from April 2013.
Under the new rules you’re allocated one bedroom for:
For example, if you live in a three-bedroomed house and have a 12 year old daughter and 15 year old son, you won’t have any spare bedrooms. But, if you have 2 sons aged 12 and 15 and you live in a three-bedroomed house, your council will say you have one spare bedroom.
If you have a spare bedroom your housing benefit will be cut by 14% of the rent you pay every week. If you have two or more spare bedrooms you’ll lose 25%.
You won’t be affected if you or your partner are old enough to receive pension credits (currently 61 years and 6 months).
From April 2013 the overall amount of benefits you can receive will be limited. This could affect you even if you don’t have any spare bedrooms.
If you receive more than one benefit, they’ll be added up to calculate a total. This includes housing benefit, jobseeker’s allowance, employment support allowance, child benefit, child tax credit and carer’s allowance.
It won’t apply to you if you receive pension credit, working tax credit or if someone in the household is claiming disability living allowance, attendance allowance or the support element of employment support allowance.
If your total is more than the maximum amount allowed, your housing benefit will be reduced to bring it under the threshold.
The maximum you can receive will be:
Local councils run their own schemes; these differ from one area to the next. Some councils may have a reduced amount of funding available from April 2013, which could mean that your support is cut.
It’s best to get advice now rather than waiting until the changes come in. Here are some practical steps you can take now:
If the changes mean you’ll struggle with unsecured debts contact us for help and advice. We can also look at your entitlement to make sure you’re claiming everything you can.
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