Spending Review – Further Clarity On Plans To Limit Rents In The Social Rented Sector To LHA Rates

There are three key things which have been confirmed by Government officials and which will help in understanding what is set out in the Spending Review Blue Book.

·         Although the new rules will apply to affected individuals who sign their tenancy from April 2016 onwards, they will be entitled to full Housing Benefit until April 2018.

·         Supported housing is covered by the new rules

·         The Government are committed to exempting supported housing from the new rules by increasing Discretionary Housing Payment (DHP) to local authorities.

As Universal Credit rolls-out Lord Freud has expressed a desire to find a “localised” solution to the funding of supported housing so this announcement needs to be seen in that context. Ministers are still working out the best approach to the funding of rents in supported housing in the context of Housing Benefit being phased-out. Read more on the Homeless Link website.

Housing Benefit: Disability – Parliamentary Written Answer

Mr Betts: To ask the Secretary of State for Work and Pensions for what reasons his Department's guidance to local authorities on assessing applications for discretionary housing payments, gave discretion to authorities to take account of applicants' entitlement to disability living allowance.

Steve Webb: The regulations covering discretionary housing payments (DHPs) are The Discretionary Financial Assistance Regulations 2001. These regulations allow local authorities to ask for information relating to a claimant's circumstances and income, including entitlement to DLA, as appropriate to enable them to make a decision on a DHP application. DWP guidance states that local authorities may wish to consider the purpose of the claimant's income, and where appropriate can decide to disregard income from disability related benefits as they are intended to be used to help pay for the extra costs of disability. In addition local authorities may like to bear in mind that such money might be committed to other liabilities for which the money was intended.  Local authorities have a duty to act fairly, reasonably and consistently. Each case must be decided on its own merits, and decisions should be consistent throughout the year. However, if a claimant is refused DHP, they could ask the local authority for the decision to be reviewed.

Benefits Claimants Are Shortchanged By £5bn a Year

Millions of benefit claimants are being shortchanged by the welfare system rather than overindulged, a thinktank says. Rather than cutting benefits, ministers should seek to ensure that those on welfare receive their full entitlement, Demos says. Official figures show that one million people a year do not receive their full entitlement of housing benefit, equating to a failure by the state to pay out up to £3.1bn. More than two million people a year do not apply for relief from paying their council tax bill, equivalent to more than £1.7bn in savings to the state. Meanwhile, the number of pensioners that were estimated to be entitled but not claiming pension credit was between 1.21 million and 1.58 million in 2009-10, worth a total of between £1.94bn to £2.8bn. Those missing out on state assistance often end up as a burden to charities, the thinktank Demos says, and are not being properly helped into employment. Read more on the Observer website.

Government Focusing On Welfare Not Housing Market Problems

The CIH has warned that George Osborne's plans to cut housing benefit for under 25s is a "dangerous move" that could undermine efforts to rebuild the economy. Responding to Mr Osborne's speech, Grainia Long, chief executive of the CIH, said: “In an attempt to control costs, government is concentrating its efforts on entitlement to benefits rather than the fundamental problems in our housing and labour markets. CIH has already warned that cutting housing benefit for under 25s would be a dangerous move. It is difficult to build the economy without a young, mobile workforce. It would mean that young people would be unwilling to take risks such as moving for work because there would be no safety net for them. It also fails to take into account the reality of many people’s lives – many under 25s will have paid tax and national insurance for several years before needing to claim benefits.” Read more on the CIH website.

Government to Tighten Housing Benefit Rules for New Migrants

David Cameron has announced migrants will not be entitled to housing benefit immediately upon arriving in the UK.  The prime minister made the pledge as part of a series measures to crackdown on ‘benefit tourism’. Transitional controls limiting Bulgarian and Romanian workers accessing the UK’s labour market expire at the end of the year.  Migrants wanting to claim benefits have to take an ‘habitual residency test’, which requires them to prove a legal right to reside in the UK and that they intend to settle in the country. Some EU citizens currently do not have to take the test. Read more on Inside Housing.

Universal Credit Could Limit Benefit Access

Future access to an array of passported benefits, such as free school meals, legal aid and a range of health measures is under threat from the introduction of Universal Credit, Labour has claimed.  Passported benefits are benefits that people can claim once they are claiming benefits or tax credits including income support, employment support allowance or child tax credits. However, these benefits are being abolished and merged into all-encompassing Universal Credit system. Iain Duncan Smith has said: "It is up to the departments now to decide how they want to do this. It may also be an opportunity for them to do this in a different way. Some have decided they want to do it in a different way, and they will be making that clear."  Labour claimed there was still no clear government strategy about how entitlement to these benefits will be decided and paid in future once Universal Credit is introduced.  Read more on the Guardian website.

Universal Credit – Parliamentary Written Answer

Stephen Timms: To ask the Secretary of State for Work and Pensions what written information claimants will receive on the breakdown of their universal credit entitlements; how frequently such information will be provided; and if he will make a statement.

Mr Hoban: Claimants will receive a universal credit decision letter at the point their claim has been determined which will explain their single new universal credit payment, when it will be paid each month and how it has been calculated. The breakdown will include which elements they are eligible for, the amounts and how any earnings, income or other deductions have affected their payment. Further decision letters will be issued following any changes in claimant's circumstances that affect the elements or amount they receive.

Social Housing Allocation and Immigrant Communities

Widespread media reports suggest that migrants receive priority in the allocation of social housing, and in doing so displace non-migrants. The Equality and Human Rights Commission (EHRC) decided to commission research to look at the facts behind these stories and to examine the allocation of social housing in England.

The research asked three questions:

• Who is entitled to social housing?

• Who receives social housing?

• Do some groups have unfair access to social housing?

Download a copy of the findings from the EHRC website.

Existing Claimants Protected Under Universal Credit

The Department for Work and Pensions has insisted no households currently claiming benefit will lose out under universal credit.  An impact assessment shows around 800,000 more households than previously expected will have lower ‘notional’ benefit entitlements under universal credit.  The assessment shows 2.8 million households will have lower entitlements under the policy, compared to the 2 million quoted in an equality impact assessment in October last year.  However, the DWP said the assessment does not take into account ‘transitional protection’ – money used to top up incomes to prevent current claimants moving to the new system from losing out.  Download a copy of the Impact Assessment from the DWP website.

EU Migrants: Entitlement to Housing Assistance

This Commons Library Standard Note gives an overview of EU migrants' entitlement to social housing in England and considers the question of whether these people 'jump the housing queue.'  Download a copy of the note form the House of Commons website.

Lodger Rules to Ease Impact Of Bedroom Tax

Tenants will be able to keep rental income from lodgers without it affecting their benefit entitlement under proposed rule changes. The major impact of the move is that it will help under-occupying tenants pay the bedroom tax. The change was made possible because the government has amended what counts as income in its draft regulations for universal credit.  Currently, claimants must declare income from lodgers. This can affect their entitlement to housing benefit, jobseekers’ allowance and income support.  Under the new regulations, from October 2013 tenants will be able to keep income from lodgers and retain full entitlement to benefit. The room let to a lodger will, however, be classed as a spare room and fall under the bedroom tax, which will be £14 per week on average.  Read more on Inside Housing.