LRD guides and handbook March 2013

State benefits and tax credits 2013

Chapter 6

6. HELP WITH HOUSING COSTS

The government has been focusing on Housing Benefit as a means of cutting public spending for some time. Over the past year or so, many changes have been introduced including: capping Housing Benefit at a fixed level based on property size; raising the age for those entitled only to the single room rate from 25 to 35; and reducing the calculation that is used to work out the rate of Local Housing Allowance.

Housing Benefit and Council Tax Benefit are both being abolished. From April 2013, Council Tax Benefit is to be replaced by localised support for Council Tax. Local authorities will set up new schemes to support people in their own areas within a 10% reduced budget. This will only affect people of working-age who currently receive Council Tax Benefit.

Housing Benefit will be paid as part of Universal Credit (UC). This starts in October 2013 for new claims. If you are still getting Housing Benefit while you’re waiting for your benefits to be transferred to UC, you can choose whether to appeal against a Housing Benefit decision or ask for it to be looked at again first. Once your benefits are transferred to UC, you will be covered by the new appeal rules.

Council Tax Benefit will be replaced by local schemes provided by local authorities in England and the Scottish and Welsh governments who will introduce their own rules for appeals and reviews. This starts on 1 April 2013.