Housing Benefit Explained

If you’re a victim of redundancy, you will often be thrown into a financial predicament. Claiming all the help you can get from the government will be essential to keeping as much of your life together as possible. In this regard, Housing Benefit can be a crucial helping hand.

What is Housing Benefit?

Housing Benefit, very simply, is help with paying your rent. If you pay a mortgage instead, it does not apply to you. When you live in council housing, the benefit will be paid directly to your local council. Otherwise, it can be paid to you as a cheque or into your bank account. In some cases, it may be possible to pay it directly to your private sector landlord. If you rent in the private sector, the form of Housing Benefit you receive is called Local Housing Allowance (LHA).

You will usually be given a Housing Benefit claim form whenever you apply for any other benefit such as Jobseeker’s Allowance. If you don’t claim any other benefit, you can get a Housing Benefit application form from the offices of your local council or download it from the Department of Work and Pensions (DWP) website.

Who is Entitled to Housing Benefit?

Anyone who pays rent on a low income may be entitled to housing benefit. It does not matter whether you rent from a public or private sector landlord. There are some exclusions, however. If you live with close relatives and pay them rent, you may not be eligible. Single people under the age of 25 cannot usually get Housing Benefit for anything other than a bedsit or a room in a shared flat. If you live with a partner (meaning that you are married or live together as if you were married) only one of you will be able to claim Housing Benefit.

How Much Housing Benefit Can You Get?

In theory, there is no limit to how much Housing Benefit you can get. The maximum amount is equal to the rent you pay. What proportion of your rent will be paid by the government is based on an assessment of your circumstances, primarily your salary and the salary of those living with you, if any. Your savings are also taken into account. Having savings above an upper limit – currently £16,000 – will usually mean that you won’t get any Housing Benefit.

Be warned, though, that in determining housing benefit eligibility, the government will make a judgement about whether your accommodation is appropriate for your needs. For example, if you live alone in a very large house with 5 bedrooms, the government may ask you why or even just reject your application outright.

The rent you pay for your home is also compared to the rent paid for other comparable homes in the same area. For those renting in the private sector, the amount received is based on the average amount received by people living in similar personal circumstances in the same area. If your rent is higher than the average, you will have to make up the difference yourself or find somewhere else to live. If your rent is lower than the average, you can actually keep some of the excess, up to a maximum of £15 per week.

Area rent evaluations are performed by The Rent Service in England, Rent Officers in Wales and the Rent Registration Service in Scotland. You can see the average rental amounts in your area on the Rent Service website.

Housing Benefit – Conclusion

If you rent your accommodation, Housing Benefit is one of the vital support mechanisms that should help see you through the difficult times following a redundancy.

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