Bedroom taxes and benefit caps

Edward Graham

www.cpag.org.uk AIMS

• – exceptions & definitions • Overview of current challenges • Discussion of appeal tactics/judicial review • – exemptions and discussion of likely impact • Discretionary housing payments • A brief look at similarities and differences in how housing costs are treated under Bedroom tax

• 1st April 2013, size criteria applied to social housing sector • 14% reduction for one spare bedroom • 25% for two or more spare bedrooms • Applied to eligible rent • End the “spare room subsidy”.

Bedroom tax – exceptions

• Up to 13 weeks where previously affordable and not entitled to HB for 1 year • Up to 12 months following death of member of family or relative • Claimant or partner over PC age • Temporary accommodation (excluding LA/HA owned property & hostels) • Exempt supported accommodation

Bedroom tax - definitions

• Additional room allowed for: − foster carers and approved kinship carers − members of armed forces away on operations • Person requiring overnight care • Occupying the home − Temporary absence, students, prisoners, hospital • Joint tenants • Disabled children

Bedroom tax - challenges

• No definition of bedroom in HB regs • Up to landlord to classify property • Overcrowding definitions in housing legislation: − Less than 50 square feet? − 50 to 70 square feet? • Actual use of room? e.g. dining room • Availability of alternative properties - local authority duty to prevent homelessness?

Bedroom tax - challenges

• Shared care of children – right to family life, needs of child • Survivor of domestic violence/abuse – failure to take needs into account, risk of moving amounts to gender discrimination • Disabled adults – unable to share a room, need for storage space • Disabled children – guidance not sufficient and too limited

Benefit Cap

• Who is affected?

• Exemptions − current or recent work − disability benefit

• Challenges − ‘discriminatory and unreasonable’

Benefit Cap

• £350 for single claimant no kids • £500 all other claimants • Most benefits count towards cap • Started 4 London boroughs • Rollout nationally from 15th July • UK wide by end September

Benefit cap exemptions

• Claimant on WTC • 39 week grace period if worked 50 out of last 52 weeks. • ESA support group • AA, DLA, PIP, war pension, AFP. • IIDB, REA, RA • Over qu age for SPC

Benefit cap challenges

• Absolute level of cap • Includes benefits payable to those working • Applies to those deemed not required to work • Applies to those housed as homeless

Discretionary Housing Payments

• Bedroom tax priority groups: − Disabled people in adapted properties − Foster carers (more than 1 bedroom needed) − Adoptive parents (prior to placement) • Benefit cap priority groups: − Temporary accommodation/domestic violence − kinship carers − families unable to move or find suitable • Guidance covers wide range of groups

Universal credit - bedroom tax

• No 13 week protection if previously affordable • No 52 week protection after a death – 3 month run-on • Not applied if social sector joint tenant with someone who is not your partner or QYP • Size criteria applied to ‘extended benefit unit’ including non-dependents (not lodgers) • Person requiring overnight care must get qualifying benefit

Universal credit - benefit cap

• £2,167 a month for couple/lone parent • £1,517 a month for single person • Not applied if earning at least £430 a month • Not applied for 9 months if earning at least £430 a month in each of last 12 months • Childcare costs not counted in cap • Applies to owner occupiers, and people with no liability for housing costs

Universal credit - housing costs contributions

• A fixed amount of £68 a month per person • No HCC if renter is on DLA middle or high care/ PIP daily living / AFIP / reg. blind • No HCC if non-dependant is: − under 21 − receiving DLA middle or high care/ PIP daily living / AFIP / CA / PC − responsible for a child under 5 − a prisoner − member of armed forces away on operations

Universal credit - housing element

• Backdating − One month in exceptional circumstances only • Temporary absence − 6 months (12 months due to domestic violence) • Two homes − Large family housed in two properties − Domestic violence − Adapting for disability (one month) • Payment prior to moving in − Disability adaptations, leaving hospital/care

CPAG Training

CPAG’s experience in the rights field is unrivalled and this is reflected in the quality of our training. Our courses cover all aspects of welfare benefits, tax credits, the welfare rights system. We run a variety of courses throughout the year at venues across the UK, we currently are running training in London, Manchester, Birmingham, Newcastle, Liverpool and Cardiff.

Please keep an eye on our website as new training dates are added throughout the year - both in London and locations throughout the UK.

www.cpag.org.uk/training

All of CPAGs courses can be delivered ‘in-house’ on a date and at a venue to suit you. Providing a course in-house can be more cost effective - saving on time, travel and accommodation costs. We provide the expert tutor(s) and all training materials. CPAG Publications

CPAG publish books to help people at risk of poverty and their advisers. Our most popular titles include the Welfare Benefits and Tax Credits Handbook, Debt Advice Handbook and Child Support Handbook. We also publish social security and child support legislation with an expert commentary. We sell a selection of books published by other organisations, where we feel these would be particularly useful to our members and customers. Visit our bookshop: www.cpag.org.uk/bookshop Please feel free to email us with any enquiries: [email protected] CPAG Advice Line

CPAG advice line for advisers

Tel: 020 7833 4627

Monday to Friday 10am – noon 2pm – 4pm