All tenants will be encouraged to apply for Housing Benefit and other welfare benefits to maximise their income. 
Important information - This may affect your benefits...Welfare Reforms
The Government is planning major reforms to the benefit system including Housing Benefit over the next few years.
Non-Dependants
Though the main changes are not expected until April 2013, some are already taking effect including the increase in non-dependant charges in Housing Benefit claims.
These increased in April 2011 and are expected to continue to increase each year up to 2014. Nondependants are any adult family members over 18 who do not get child benefit. For example adult sons, daughters and parents count as non-dependants.
They can also be friends who live with you but do not pay you rent. If you think this may affect you, please check with Derwentside Homes on 01207 521 100.
What other changes are planned that may affect you?
Spare bedroom under-occupation – If you have at least one spare bedroom read on...
From April 2013, Housing Benefit will be restricted to only allow payments for one bedroom for each person or couple. If you have a spare bedroom you will be regarded as “under-occupying’’ the property and Housing Benefit will no longer pay for the additional room. You will have to make up the shortfall from your own income.
Who will be affected?
All claims where both the claimant and their partner are under state Pension Credit age. By 2013 the Pension Credit age will be 61 for both men and women and will rise to 66 by 2020.
Are there any exceptions?
Housing Benefit rules allow:
- One bedroom for each adult or couple living as part of the household
- A child under the age of 16 is expected to share with another child of the same gender, while children under 10 are expected to share with another child regardless of gender.
- A bedroom for a carer is allowed where they provide over-night care to a person with disabilities.
Exceptions will NOT be made for the following:
- Separated parents who share the care of their children
- Couples who use their “spare” bedroom when recovering from an illness or operation
- Foster children (as they are not counted as part of the household for benefit purposes)
- Parents whose children visit but are not part of the household
- Families with disabled children
- Disabled people including people living in adapted or specially designed properties
How much will I lose?
The cut will be a fixed percentage of the Housing Benefit eligible rent. The Government has said that this will be set initially at a 13% cut for one extra bedroom and a 23% cut for two or more extra bedrooms.
It’s thought that Housing Association tenants will lose on average £10 to £15 per week. If you think that this will apply to you please contact Trevor Smith, Tenancy Services Manager telephone number 01207 524269 or by email t.smith@derwentsidehomes.co.uk
Benefit Cap
The overall amount of benefit an out of work household can receive will be capped at the average earnings of a working household (expected to be in the region of £500).
Universal Credit
From October 2013, new claimants will receive a single benefit payment for all benefits, including Housing Benefit. This will be paid direct to the tenant, monthly in arrears, from this payment you will have to pay your full rent to your landlord.
Existing claimants will be moved onto Universal Credit between 2017 and 2018.
Get a bank account
With the introduction of Universal Credit, all benefit payments will be made direct to yourself. It will be extremely important that you have a bank account as your benefit payments will be paid monthly in arrears, having an account will enable you to manage your money, also set up monthly direct debits and take the worry out of budgeting. Discounts are also offered from some companies for using Direct Debits.
If you don’t already have a bank account, then you should contact a local high street bank for advice. It does not have to be complicated, and most banks will offer a basic account.
What can you do now?
Get advice
If you are of working age, on Housing Benefit and are under occupying a property then please contact us so that we can give you advice and assistance. We may be able to help you obtain a smaller property, although, this is subject to availability and our supply is limited.
You can contact Derwentside Homes on 01207 521 100 or freephone 0800 783 9295 for advice on these proposed changes and how they are likely to affect you.
For independent financial advice, you can contact Derwentside Citizens Advice Bureau on 01207 218 551.
