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Housing costs and UC
Hi I have read a lot about the proposed changes and the way clients will be hit financially. But still dont understand the way Universal Credit will be calculated in regards to Housing costs.
For Example CASE 1
Single parent of 5 children youngest 1 years old. Housing cost of £590pw / private accommodation/.
Under the new rules from April next year she will only be entitled to £500pw including Income Support, Housing cost etc. When someone received UC would there be a breakdown as to how much they are entitled towards housing cost or are the client just given the £500pw and told ” That is what you get decide how much to pay towards rent”???
Thank you
Under both the benefit cap and universal credit, housing benefit payments will be the first things to be taken away (subject to a 50p minimum payment), so effectively yes, people will have a choice of paying their rent from the remaining payment or going into arrears.
I would imagine that UC notification letters will still provide a breakdown of overall entitlement, subject to the cap, but I am not sure that any such decisions have been finalised as yet.
Rent effectively gets capped under next April’s HB cap, although it’s still designed to reduce the total benefits amount. Under UC it’s the total benefits amount, including CB, that gets capped.
It is quite hard technically to identify how much of a UC award is attributable to housing costs unless there’s a full UC award.
In the example given there’s no way to get £590 rent covered anyway, the LHA cap limits maximum help to £400 a week for someone with an appropriate sized household for a 4 bedroom (or larger) house.
Rent effectively gets capped under next April’s HB cap, although it’s still designed to reduce the total benefits amount. Under UC it’s the total benefits amount, including CB, that gets capped.
It is quite hard technically to identify how much of a UC award is attributable to housing costs unless there’s a full UC award.
In the example given there’s no way to get £590 rent covered anyway, the LHA cap limits maximum help to £400 a week for someone with an appropriate sized household for a 4 bedroom (or larger) house.
Yes I was also shocked to see that HB covered that ammount but it is in the award letter I am thinking that she could have been protected until 19/11 and then rent under LHA cap will be £400.
Thank you for your reply I have found a very useful calculator regarding the benefit Cap on the direct.gov which gives clear indication about the change from April 2013. In our council the UC is coming in October 2013 so we still have some time.
Thank you once again