Housing Benefit Entitlement for Young people living in supported accommodation

It looks to me like all the while there is some entitlement to UC, HB is paid in full. When earnings reach a point where there is no UC entitlement, earnings are treated in the usual way for HB -any earnings that are above the applicable amount after disregards will be subject to the 65% taper.

As unhindered said, it depends on whether they still get UC, if they do then in the same way as legacy benefits they are passported to full HB as have already passed the means test.  When income is too high for means-tested UC, IS, ESA or JSA, then HB have to apply the means test.  There is no specific income disregard for young people in supported accommodation but their income disregard could vary due to other circumstances.

UC was originally meant to increase work incentives by giving higher earnings disregards than the cliff edges in legacy benefits, but this was all lost when Osbourne removed the work allowance (earnings disregard) for all people who do not have kids/do not have limited capability for work.

Alzi20, I think the variation you might see between clients could be down to eligibility for the work allowance or not.

For example, if one person has limited capability for work and the other doesn’t, the person with LCW will be able to earn more before their UC tapers off. This is due to the application of the work allowance for the person with LCW.

I think it’s worthwhile to mention that if they ARE entitled to a work allowance, then they should get the higher work allowance in UC despite receiving help with housing costs through HB.
Only housing benefit for temporary accommodation causes the work allowance to be reduced to the lower amount.

There is a cliff-edge for people living in supported accommodation when earnings reduce UC entitlement to nil.  As discussed, this is caused by losing passported entitlement to full HB and being subject to the income taper.  There is no advantage for a young person to increase earnings between approx. £90pw - £150pw.

The attached graph illustrates how much UC households without children can expect to contribute towards their rent in supported accommodation as earnings increase.

I would add as well that, as hinted by the Sally Army graph, the cliff edge and rising rent contribution only affects claimants who have no work allowance.  If the claimant has LCW (and hence a work allowance in UC), all their earnings will normally be disregarded in a “standard” non-UC HB calculation.  It is also extremely difficult to earn enough to lose UC entitlement while having LCW and occupying specified accommodation: the amount of earnings would need to be greater than or equal to WA + (standard rate / 63 * 100) and still be accepted as having LCW … I think we are heading into mutual incompatibility territory there.

It’s slightly unfortunate that they’ve chosen to label the vertical axis “Housing Costs Contribution” when that already has a meaning in UC which is very different to what they mean. It might be clearer if they called it something like “net rent” or “housing costs shortfall”.

Can anyone confirm that young people in supported exempt accommodation would have a ‘care experienced bursary’ disregarded as income for Housing Benefit?

I can’t see that it is bit have been assured by someone who manages supported exempt accommodation that it is.

Thanks for your help.

Mairi