THERE have been numerous recent reforms to Housing and Council Tax Benefit and you can now claim them over the phone, at the same time as putting in a claim for Pension Credit. The simplified system means you don’t have to fill in separate claim forms.

The amount of capital disregarded for people over 60 when claiming Pension Credit, Housing Benefit or Council Tax Benefit increases from £6,000 to £10,000 from November 2009.

When your Pension Credit has been assessed, your Housing Benefit and Council Tax claims are forwarded to your local authority.

Local Housing Allowance (LHA), a new way of calculating Housing Benefit payable to tenants who rent their home from a private landlord, has been capped at the five-bedroom rate for all new claims. The maximum period of time for backdating a claim for Housing or Council Tax Benefit has been changed from a year to three months. The Department of Works and Pensions has also changed the benefit entitlement of those who live in mobile homes, caravans and houseboats.

Can I Claim Housing Benefit?

YOU can claim this if you or your partner are renting your home.

You cannot claim Housing Benefit if you own your own home, but you may be able to claim Pension Credit to get help towards your mortgage.

You cannot usually claim Housing Benefit if you are living in the home of a close relative. Houseboat dwellers may get help with mooring charges even if they own the boat and caravan or mobile home owners may also receive help with site charges

Can I Claim Council Tax Benefit?

YOU might be able to receive Council Tax Benefit if you are on a low income. If you are not on low income, but the people you live with are, you may also be eligible for a Council Tax reduction.

If you have a partner (married or civil partner), or you live with someone as though you are married/civil partners, you will be jointly responsible for your Council Tax bill. Any benefit will be worked out on your joint savings and income and only one of you should apply.

If you share a home and are not partners, then you can each claim benefit on your share of the bill. The maximum Council Tax Benefit you can get is 100% of your bill. This will be worked out after any automatic reductions, such as the 25% discount for living alone.

Calculating Your Benefit

HOUSING Benefit and the main Council Tax Benefit are worked out by looking at the amount of rent and/or Council Tax you have to pay, and then calculating your weekly income (taking into account pensions, earnings and income from savings). This figure is then compared with the amount that someone in your circumstances is expected to live on.

The maximum Housing Benefit you can receive is 100% of your “eligible rent” although this might be restricted if the rent you are paying is considered too high.

Eligible rent can include some service charges, including general management fees, portering, entry phone and caretakers. It does not cover water, fuel or leisure facilities. So if your rent is £100, and £20 is for heating, the maximum benefit would be £80.

Will Benefits Cover All My Rent?

IF THE local authority believes that the rent is too high, your accommodation is bigger than you need, or that the rent has been increased unreasonably, it may restrict the amount of Housing Benefit it allows you.

If you are renting from a private landlord, you will receive Housing Benefit classified as Local Housing Allowance (LHA). The amount is based on the number of bedrooms the council believes you will need and it will have a list of the amount of rent it is prepared to pay for different sized properties. Some tenants may not receive enough benefit to meet their rent if the property has too many bedrooms, or the rent is deemed too high.

Some get more Housing Benefit than their rent costs and, at the moment, they can keep up to £15 of the excess. This incentive to find cheaper accommodation will not apply after April 2010.

The LHA rules do not apply to tenancies that started before 15 January 1989. To ensure your benefit will cover your rent, check with the council that they would be happy to pay that amount.

You can challenge a decision if you believe restricting the amount of your rent would cause you “exceptional hardship”, as your council has some discretion to pay more benefit.

Ask them whether you might qualify for these discretionary housing payments and, if they refuse and you feel you have a case, contact a local advice agency such as Age Concern or the Citizens Advice Bureau.

Benefit Reductions For Sharing Your Home

YOUR Housing Benefit may be reduced if you have a person other than your partner or a child living with you. There are some exceptions to the rule, including joint tenants, boarders or sub-tenants paying you rent. Deductions will be made for adult children over 18, unless they are a full-time student or are under 25 and receiving Income Support or Jobseeker’s Allowance. The sums deducted are fixed regardless of how much the person actually gives you. Only one deduction will be made for a couple that live with you. Deductions are not made if you or your partner is blind, receive Attendance Allowance or the care component of the Disability Living Allowance.

For Council Tax, there are no deductions for non-dependants getting Income Support or Jobseeker’s Allowance, or for those who are automatically excluded such as the severely mentally impaired.

If you are 65 or over, changes due to non-dependants living with you will not reduce your benefits until 26 weeks after they arrive.

This concession applies when a non-dependant arrives in the household or an existing non-dependant’s income increases.

How Will Savings and Investments Affect Benefits?

IN BENEFIT terms, these are referred to as capital i.e. savings, cash, investments and property. Capital includes cash, money in bank or building societies, National Savings certificates and accounts, income bonds, stocks and shares, property (other than your own home) and premium bonds.

Exclusions from this are personal injury compensation if you are over 60, £10,000 ex-gratia payment for Far Eastern Prisoners of War and any lump sum payment received because you deferred drawing your State Pension.

For a couple, capital is added together but the limits are the same as for a single person.

If you are entitled to the guarantee part of Pension Credit there is no upper savings limit and you will qualify for both benefits.

You cannot receive Housing Benefit or Council Tax Benefit if you have more than £6,000 capital.

If you have savings over £6,000, this will affect the amount of Housing and Council Tax Benefit you receive.

If you are 60 or over, every £500 is assumed to produce an extra £1 of income. This is called ‘assumed’ income.

If it can be proved that you have given money away to members of your family or have bought expensive items in order to reduce your capital, this council can treat your application as though you still have the savings.

However, you should not be refused benefit if you have paid off debts or your spending is judged to be ‘reasonable’.

What Counts as Income?

INCOME is what you are left with after deductions for tax, National Insurance and half of any contribution to an occupational or personal pension schemes. Most income is taken into account when assessing your eligibility for Housing and Council Tax Benefit.

Income includes: earnings, any pensions, social security benefits, Working Tax Credit, income from annuities, Savings Credit part of Pension Credit, income from savings over £6,000 (£10,000 from November 2009), rent from boarders, maintenance pay and equity release scheme payments.

Income not taken into account includes: Social Fund payments, Pension Credit guarantee, Attendance Allowance, Disability Living Allowance, voluntary or charitable payments, the War Widows Pension for pre-1973.

Parts of your weekly income will also be ignored. This includes £5 of work payment if you are single, £10 of yours or your partner’s earnings, £20 of work earnings if you are a carer receiving the extra amount for carers with your Pension Credit, £10 of a War Widow’s or Widower’s Pension, £20 of any payment from a sub-tenant or boarder and, in the case of a boarder, half the boarder’s charge over £20.

How Much Will I Receive?

THE appropriate or applicable amount mentioned in official documents about Housing Benefit and Pension Credit is the minimum weekly amount you are expected to live on. At the moment, this is £130 for a single person and £198.45 for a couple. If your income is below this amount you should receive the guarantee part of Pension Credit to boost your income. This should entitle you to full Housing and Council Tax benefit.

Savings Credit counts as income for Housing and Council Tax benefit, so people of 65 and over have higher appropriate/applicable levels set to make sure they don’t lose out. If your income is more than your applicable amount, then the Housing Benefit is reduced by a taper adjustment.

It is reduced by 65p for every pound that your income is more than your applicable amount. Your maximum Council Tax Benefit is reduced by 20p for every pound over.

Benefits and Unusual Circumstances

IF YOU are away from home, Housing Benefit and Council Tax Benefit can be paid for up to 13 or 52 weeks, depending on the reasons for your absence. But you cannot sub-let the property. If you are hospitalised, your benefit will be paid as long as you are likely to return to your home eventually.

How Do I Claim?

IF YOU apply for Pension Credit, you should automatically be asked if you want to claim for Housing and Council Tax Benefits. The Pension Service will send all the information about your claim directly to your local council. If you are not claiming Pension Credit, you need to get an application form from the Housing and Council Tax Benefit section of your local authority.

You will need to provide evidence of your rental payments, capital and income. Officially, claims should be dealt with within 14 days, but in reality they usually take longer. If you are experiencing hardship due to a delay, you can seek advice from the local Citizens Advice Bureau. If you are refused benefit, you can appeal first to the council (within a month of the decision) and finally to an independent appeal tribunal (seek advice on this from your local Citizens Advice Bureau)

Payment

COUNCIL Tax Benefit is paid directly to the local authority, so you simply get a reduced bill. The rules on Housing Benefit payment have changed and now the claimant can receive it direct into their bank account or by cheque. If you are a housing association tenant, you can choose to have the benefit paid direct to the landlord.

Contacts List

Citizens Advice Bureau: 020 7833 2182, http://www.adviceguide.org.uk

Age Concern: 0800 009966, http://www.ageconcern.org.uk

The Pension Service: 0845 6060265, http://www.thepensionservice.gov.uk

*Please note the details published on this page are targeted at people aged 50 or more and refers to the situation in England.

**Also, please note that the information included here may change from time to time, so please take legal advice if you are in any doubt.