Changes to Benefits
In the last newsletter we told you of some of the changes that the new coalition government were considering to welfare benefits or housing benefit. Some proposals are still being considered, while others will not come into effect for a couple of years yet. Here are some of the changes that have been agreed.
Non Dependent Deductions (from April 2011)
Tenants who live with an adult non dependents such as a friend or family member over the age of 18, will receive a reduced level of housing benefit. This will be introduced from April 2011. This means you will get less housing benefit, and will need to pay more towards your rent, or ask the non dependent to contribute towards the rent. The amount that is deducted depends on the weekly gross income, and is set by the government. Please see the deductions levels in the table below.
| Weekly gross income | 2010/11 | 2011/12 |
|---|---|---|
| Less than £122 | £7.40 | £9.40 |
| £122 to £179.99 | £17.00 | £21.55 |
| £180 to £233.99 | £23.35 | £29.60 |
| £234 to £309.99 | £38.20 | £48.45 |
| £310 to £386.99 | £43.50 | £55.20 |
| £387 and above | £47.75 | £60.60 |
No deductions are made for people under 25 on Jobseeker’s Allowance or older people on Pension credit.
Deduction from housing benefit after one year on Jobseeker’s Allowance
It was proposed that housing benefit would be reduced by 10% after a tenant had been in receipt of Jobseeker’s Allowance for one year. This proposal has now been withdrawn and will not be introduced.
Housing benefit to reflect household size (from April 2013)
The government plans to limit housing benefit for working age tenants to the size of accommodation they are deemed to need. It is unclear what levels of occupation the government will deem as a necessary size for particular households. But they are looking to reduce housing benefit payments where tenants are under occupying a property, and have spare bedrooms. Once the details of the changes are agreed, we will let you know.
Added 12th April 2011
