06 January 2009Council Tax Benefit helps people on low income pay their Council Tax.
Housing Benefit helps people on low income pay their rent. It is sometimes called rent allowance or rent rebate.
From 7 April 2008, some people who claim Housing Benefit and rent from a private landlord may be affected by new rules. To see if you are affected by the new Local Housing Allowance (LHA) please refer to the section entitled What is Local Housing Allowance (LHA)? If you and your partner have capital in excess of £16,000 (excluding the home you live in if it is owned or part-owned) you cannot usually get Housing Benefit or Council Tax Benefit.
How to claim Housing Benefit or Council Tax Benefit
There are two ways to make a claim.
PDF File 233KB file details). Printed copies are also available from Sevenoaks District Council's offices. If you are married, or living with someone as if you are married to them, you must claim as a couple. The income and capital of both of you will be used in the calculation.
If you are already getting Income Support or Job Seekers Allowance (income based) or Pension Credit and you become responsible for paying rent or Council Tax, you should claim immediately from the Council.
You only need to complete one form to claim both Housing Benefit and Council Tax Benefit.
You will need to supply original documents to prove the information you have given on the application form.
If you are working and do not have wage slips, you will need to ask your employer to complete a Certificate of Earnings Form ( PDF 66K file details)
If you are self-employed you will need to complete a Self Employed Earnings Certificate ( PDF 44K file details).
If you have any questions about either benefit or are in any doubt at all, please contact the Benefits Section.
When to make a claim
Changes in your circumstances
It is very important that you tell the Benefits Section of any change in your circumstances that may affect your benefit without delay.
If you do not tell us about a beneficial change within one calendar month of it happening, without good reason, you will lose benefit.
If you do not tell us about other changes an overpayment may occur which we will ask you to repay.
Examples of changes you must tell us about include:
PDF File 147KB file details) PDF File 109KB file details) If you are unsure - please tell us anyway. Click on the following link for a General Change of Circumstances form ( PDF 83K file details).
Please note that from 7 April 2008 if you are privately renting and have a break in your claim for one week or more you will be considered under the LHA scheme.
If you are temporarily away from home
You must tell us if you are going to be away from your home. We need to know the date you are leaving, the date you expect to return and why you will be away.
In some cases we can continue to pay benefit. In most cases you must not intend to be away for more than 13 weeks.
If you want more information or to appeal against a decision
When the Council makes a decision about your benefit entitlement or that you should repay an overpayment, the Benefits Section will tell you about this decision in writing. This is called a ‘notification'. You must read this letter carefully as it tells you about the decision and the information we used to make it.
If you disagree with the way your benefit has been worked out, or any decision made by the Benefits Section you can:
You should make your request within one calendar month of the date of the notification letter or we may not be able to look at the decision again. The Appeals Tribunal may also decide not to accept a late appeal.
The Benefits section will send you full details with your notification letter.
Entitlement to Housing Benefit
Anyone who has rent to pay can claim. You may have a partner or be single, have a family or not, or be a pensioner. You may be working, not working or be self-employed. You do not have to have paid National Insurance Contributions. You may pay rent to a Housing Association, Registered Social Landlord, a private individual, a company or an agency.
If you live with a close relative you cannot normally get help.
You cannot normally receive help towards your rent if you previously owned the home you are now renting unless this was more than five years ago or you had to sell your house in order to continue living in it.
You cannot get help if your landlord is the parent of any child that you, or your partner, is responsible for.
Full time students cannot normally get help with their rent. However, special rules apply for certain students e.g. if you are disabled or have responsibility for a child or if your partner is not a student - please contact the Benefits Section for more information.
If the Council does not think your liability is 'commercial' or that it is 'contrived' then you will not get help with any rent payments you make.
What does Housing Benefit cover?
Housing Benefit covers the part of the rent that you have to pay to live in your home. This is called your 'eligible rent'. It may not be the same as the amount your landlord charges you.
If you rent from a private landlord and you move or your claim starts on or after 7 April 2008, LHA rules apply.
Housing Benefit can help with:
Housing Benefit cannot help with:
How much Housing Benefit can you get?
This depends on:
If you have other adults (other than your partner, tenant, or lodger) they will be considered a ‘non-dependant' and a deduction may be used in the calculation depending on their income and circumstances.
Non-Dependants
A non-dependant is an adult who lives in your home but not on a commercial basis, who is over 18 years old and who is not your partner. This may be an adult relative such as a child who has left full time education, or a retired parent.
The non-dependant deduction depends on the circumstances and income of the non-dependant and is set by the government.
How much rent will you get?
If you are currently living in your home and receiving Housing Benefit or renting from/going to rent from a social landlord (eg Housing Association) Housing Benefit payments will continue as normal, and you will not be affected by LHA. The amount you receive will depend on the above.
From 7 April 2008, if you rent from a private landlord or you have a break in your claim of one week or more your rent will be considered under the LHA scheme.
LHA is based on:
How will your Housing Benefit be paid?
If you rent your home from a private landlord or Registered Social Landlord (including Housing Associations) your Housing Benefit cheque will be sent to you.
Unless you are affected by LHA you can, if you prefer, ask the Benefits Section to send your Housing Benefit cheque direct to your landlord.
In some special circumstances the Council may pay your Housing Benefit to your landlord even if you do not request this, for example, if you are in arrears with your rent.
Housing Benefit is paid in arrears by law. We prefer to make payments by Bank Automated Credit System (BACS) as this is more reliable and efficient than paying by cheque. Paying by BACS means the payment arrives in your bank account without you having to do anything. You will still receive notification of the payment.
If you don’t have a bank account and would like information on opening a bank account, please refer to FSA money made clear - bank accounts ( PDF File 551KB file details) and our A Guide to opening Bank Accounts ( PDF File 228KB file details).
The Citizens Advice Bureau can give advice and information about how to open a bank account.
If you have a bank account and would like to change to BACS pease complete Request to receive payments by BACS ( PDF File 25KB file details)and send it to us.
What is Local Housing Allowance (LHA)?
LHA is a new way of working out the maximum Housing Benefit for private tenants. This is intended to simplify the current system. It is due to roll out across the country from April 2008, although the scheme has been piloted by 18 Local Authorities known as 'Pathfinders' since November 2003. Housing Benefit will still be assessed in the same way it was, before the introduction of LHA, based on income, savings and household composition. LHA is a new way of working out the maximum Housing Benefit that could be paid.
Who will LHA apply to?
LHA is for people claiming Housing Benefit for the first time, or moving home after 7th April 2008. They must be on a low income, with savings below £16,000, and living in private rented accommodation.
Who will LHA not apply to?
There are several groups who will not be affected by LHA. They are:
How is LHA calculated?
LHA is calculated by the Rent Service for individual areas, known as Broad Market Rental Areas (BMRA’s), each month. It is based on the mid point of a list of values for that size of property within the BMRA.
What are the rates based on?
Different LHA rates will apply in different areas. Within those areas, they will be based upon the median rent charged by landlords in the private sector properties of various sizes. LHA rates will be further broken down into “Room Rates” that will apply depending on the size of the household including non-dependants. Size criteria will be based on allowing one bedroom for:
The number of living rooms, kitchens and bathrooms is ignored for the purpose of the size criteria.
There is a separate LHA rate for one room with some shared facilities. This will apply to people who are under 25 and live on their own, as well as anyone else who is living in non-self-contained accommodation or in a single room 'studio' flat.
With LHA, you will know before you find somewhere to live, how much help with your rent you might get. By knowing how much you might get, it is easier for you to decide what type of property you can afford.
If you are looking for somewhere to rent you can choose to:
The following examples show how this works. These examples are for tenants who are entitled to the maximum amount of benefit.
Where will LHA rates be published?
We will publish the monthly LHA rates at our main Sevenoaks office, and our local offices in Edenbridge, Swanley and Hartley. They will also be available at the Local Citizens Advice Bureaus.
How will payment be made?
LHA will on most occasions be paid directly to the tenant and there will no longer be the choice to have the payments made straight to the landlord. The payments will be made either straight into the tenant's bank account by BACS or they will receive a cheque.
This will mean that the responsibility to make sure that rent is paid will now lie with the tenant. One of the safest and most reliable ways of doing this is to set up a standing order straight from a bank account. If the rent that is charged by the landlord is less than the LHA then the tenant will receive the total amount of the rent and up to £15 on top of this. This is the maximum amount of Housing Benefit that they could receive. If the rent is more than the LHA figure the tenant will have to make up any difference when they make payments to their landlord.
Are there any exceptions to this rule?
Safeguards have been put in place to protect both landlords and those who may be vulnerable. These safeguards are applied at the discretion of the Local Authority and include some of the following factors. This list is not exhaustive and we will need to see conclusive evidence in order to make payments to the landlord.
For further details see Sevenoaks District Council's Safeguard Policy ( PDF File 81KB file details) and Safeguard Form Request for payments of LHA to be paid to the landlord ( PDF File 75KB file details).
Aims and Objectives of the LHA Scheme
Fairness - LHA is based on the size, composition and location of a household so two households with similar circumstances in the same location will receive similar amounts of benefit.
Choice - Tenants can take greater responsibility over how they spend their income. They are able to choose the size of their accommodation and decide how much they need to pay towards their rent.
Transparency - With this new simpler system tenants are able to compare how much help is available towards their housing costs in different areas and for different sized properties.
Personal Responsibility - With payments being made directly to the tenant, they are encouraged to take responsibility for their own finances, helping them to develop the skills they will need as they move into the work place.
Financial Inclusion - Tenants will be encouraged to have payments of LHA made directly into their bank accounts and to set up a standing order to make rent payments to their landlord. This is a safe and secure method of payment that guarantees the rent payments are made.
Reduces barriers to work - Greater certainty about what in-work benefit they could receive should encourage customers to take the step away from welfare and into work.
Improved administration - There will no longer be a need for the complicated individual referrals to the rent office that have previously caused delays in the processing of claims.
Useful Websites
Click on the following link for Department of Work and Pensions
Click on the following link for The Rent Service
Click on the following link for Citizens Advice Bureau
Council Tax Benefit in detail
There are two types of benefit available to help you pay the Council Tax:
Entitlement to Council Tax Benefit
Anyone who is liable to pay Council Tax can claim.
The amount you receive depends on your personal circumstances. In some cases it is possible to receive benefit to cover 100% of the charge.
Like Housing Benefit, if you have someone over 18 living with you who is not your partner, lodger or a sub-tenant then they will be classified a non-dependant, and a deduction may be made according to that persons circumstances.
2nd Adult Rebate - You can claim if you are liable for Council Tax and you have someone over 18 sharing your home who is not your spouse or partner, who is not a lodger or tenant, and who is not liable for the council tax.
You cannot claim 2nd Adult Rebate if you are living with your spouse or partner and they are not discounted for Council Tax purposes.
2nd Adult Rebate will depend on the financial circumstances of the other adults living with you. Your own income will not be used
The maximum you can receive is 25% of your Council Tax liability.
Fraud
The Council is actively trying to reduce the number of fraudulent Housing Benefit and Council Tax Benefit claims.
If you think someone you know is obtaining benefit they are not entitled to, you can help by ringing the Benefits Fraud Hotline on 01732 227445.
If you wish to speak to a member of staff, please telephone the number during normal office hours. Outside these hours the number will be linked to an answer phone.
All the information you give us will be treated in the strictest confidence.
For more information, contact the Benefits section.
