Exemption from shared accommodation rate of LHA for under 35s formerly accommodated through the ‘Everyone In’ initiative

New edition of the DWP's LA Welfare Direct confirms that hotels and B&Bs used during COVID-19 outbreak will generally meet the definition of ‘hostel’ so that former residents can qualify for exemption on that basis

The DWP has issued new guidance in relation to exemption from the shared accommodation rate of local housing allowance (LHA) for under 35s formerly accommodated through the ‘Everyone In’ initiative.

In LA Welfare Direct 08/2020, the DWP advises that the exemption from the shared accommodation rate in housing benefit and universal credit on the basis of former residence in a homeless hostel may apply to those leaving hotels and bed and breakfasts (B&Bs) used in the ‘Everyone In’ initiative in England (and similar provisions in Scotland and Wales) to accommodate homeless people and rough sleepers during the coronavirus (COVID-19) outbreak.

The DWP confirms its understanding that the 'Everyone In' accommodation is likely to meet the definition of 'hostel' for housing benefit and universal credit - in regulation 2(1) of the Housing Benefit Regulations 2013 and paragraph 29 of Schedule 4 to the Universal Credit Regulations 2013 - on the basis that -

• places in hotels and bed and breakfasts were allocated to people on the basis of homelessness prevention:
• residents are receiving equivalent care and support (or more) as they would in a usual hostel setting;
• local authorities / commissioned providers have taken over the hotels (or sections of them) rather than booking individual rooms, and are responsible for providing support to the resident;
• facilities are not self-contained (in other words, there are no kitchens) and clients are provided with meals;
• the local authority funds the hotel as a block booking, creating a license with the resident, so there is no commercial relationship between hotel and resident; and
• the hotels and the provision of care and support to the residents are managed on a day-to-day basis by voluntary / third-sector organisations.

As a result, the DWP confirms that -

‘… where the circumstances above apply the re-purposed hotels and bed and breakfasts used for ‘Everyone In’ will satisfy the definition of ‘hostel’. This means that provided the claimant is over 25 and satisfies the other conditions of the exemption they will be entitled to a one-bedroom LHA rate rather than the shared accommodation rate.

Local provision may vary and local authorities should consider the detail of the services and accommodation provided against the conditions of the exemption when deciding if the emergency accommodation is operated as a hostel.’

Finally, in relation to universal credit, the DWP advises that the onus is on the claimant to provide supporting evidence and details, including confirmation that they had been offered and accepted support to help them be rehabilitated or resettled in the community.

LA Welfare Direct 08/2020 is available from gov.uk