RIGHTS SERVICE

The

(aka Spare Room Subsidy)

Fact Sheet 8: For Residents and Advisers

th www.wolverhampton.gov.uk 20 November 2019

1. Introduction In November 2018 there were 2,271 households affected by the Spare Room Subsidy in Wolverhampton - Wolverhampton The Spare Room Subsidy was introduced in Homes properties 1,907 and 364 housing April 2013 and is designed to limit the amount association/other properties. Of these 1,858 of and for had their Housing Benefit payments reduced housing costs awarded to people of ‘working by 14% and 413 by 25%.

age’ (meaning people under the ‘qualifying age for ’) living in social housing tenancies (e.g. Wolverhampton Homes and 2. The Size Criteria… housing association tenancies). In effect, the Spare Room Subsidy imposed ‘size criteria’ limits to the amount of benefit awarded to The Spare Room Subsidy restricts the amount those deemed to be under-occupying the of Housing Benefit or Universal Credit property in which they live. Such penalties according to the number of bedrooms the formerly applied only to those living in private property has and the number of people living sector rented properties. in the property. The size criteria formula allows one bedroom for each adult (or adult couple) or child in the property, with the following exceptions:

▪ children under 16 of the same gender are expected to share - two children per room

▪ children under 10 of the same or different gender are expected to share - two children per room.

If a child spends time with both parents who live apart then the child will be deemed to live with the parent with whom they spend the majority of time.

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If an equal amount of time is spent living with each parent, then normally it will be deemed 3. Extra Bedroom… that the child lives with the parent who receives for them. A. Sharing Couples: Since 1st April 2017 an individual bedroom may be allowed for each Any claimant deemed to have more bedrooms member of an adult couple where one member than they require under the law will lose a is disabled and due to his/her disability, the proportion of their Housing Benefit or couple should not reasonably be expected to Universal Credit ‘housing cost’ element. The share a bedroom. To qualify, the disabled level of reduction is a fixed percentage of the member of the couple must be getting PIP claimant’s ‘eligible rent’ - the amount of rent (daily living component), Disability Living which is actually eligible for Housing Allowance (middle or higher rate care Benefit/Universal Credit. component) or Attendance Allowance (higher rate but not lower rate) or Armed Forces The level of reduction is: Independence Payment.

▪ 14% where there is one extra bedroom

▪ 25% where there are two or more extra bedrooms

How it works: Habib and Sally are a couple. They have a 14-year-old son. Their ‘eligible rent’ is £100 per week. If the family were living in a two-bedroomed property, then they would not be affected by the Spare Room Subsidy. R (Carmichael) v SSWP and R (Rutherford) v SSWP [2016] UKSC 58 They are allowed one-bedroom for themselves and one-bedroom for their son. The couple’s B. Sharing Children: Since 4th December rent would be met in full. If the family were 2017 an individual bedroom may be allowed living in a three-bedroom property, then the for a disabled child (aged under 16) where due amount of help they received with their rent to their disability, it is not reasonable to expect would be reduced to £86.00 per week. This is them to share a bedroom with another child because they would encounter a 14% penalty (aged under 16). To qualify, the disabled child because they would be deemed to have a must be entitled to DLA (middle or higher rate spare bedroom. If the family were living in a care component). four-bedroom property, then the amount of help they received with their rent would be reduced to £75.00 per week. This is because they would encounter a 25% penalty because they would be deemed to have two spare bedrooms.

Burnip v Birmingham City Council and Other [2012] EWCA Civ 629

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C. Overnight Carer: An individual bedroom Parents of Armed Forces Children: A may be allowed for a disabled child or adult bedroom may also be allowed for adult who requires ‘overnight care’ and evidence of children who are serving in the armed forces their overnight care needs has been but who continue to live with parents. The established. To qualify, the ‘overnight care’ adult child will be treated as continuing to live must be reasonably required and the disabled at home for the purposes of the Spare Room child or adult should be getting PIP (daily living Subsidy threshold. component), Disability Living Allowance (middle or higher rate care component), Attendance Allowance or Armed Forces A person may be treated as occupying their Independence Payment. Further, bedroom if they are away from home arrangements must be in place for a carer(s) temporarily. For example this could be in the to come and provide care and, in doing so, for case of students who are returning home them to stay overnight at such times and regularly, people in hospital who intend to frequency that a bedroom is needed for them. return within 52 weeks and prisoners who are sentenced to 6 months or less. SD v Eastleigh Borough Council - [2014] UKUT 325 (AAC)

D. Boarder/Lodger: If someone rents out a 4. Exempt properties… room in the property in which they live to a boarder or lodger then a bedroom will be A. Supported Accommodation: The Spare allowed for that boarder/lodger. However, do Room Subsidy should not be applied to those note that rent from a boarder/lodger will be living in ‘supported accommodation’ - that is taken into account as ‘income’ (less a certain to say accommodation provided by a housing disregarded amount) for Housing Benefit, association where they receive care, support , Income-based JSA and or supervision. Income-related ESA (but NOT Universal Credit), resulting in a reduced amount of B. Shared Ownership: The Spare Room benefit being paid. Do seek further advice and Subsidy should not be applied in shared information as necessary. ownership cases, that is to say in cases where

the claimant is buying part of their home and Disability Equipment/Treatment: A room renting the other part. that was perhaps a bedroom that is now used for the purposes of: C. Caravan, Houseboat or Other: The Spare Room Subsidy should not be applied in cases ▪ storing disability equipment used by a where the claimant is living on in a caravan, on severely disabled child or adult that cannot a houseboat or in a mobile home. reasonably be stored elsewhere; or D. Temporary Accommodation: The Spare ▪ the treatment of a severely disabled child or Room Subsidy should not be applied in cases adult where the claimant is living in temporary accommodation provided for homeless people may be disregarded for the purposes of the by a local authority or housing association. Spare Room Subsidy. In this situation, evidence of the child’s / adult’s disability would be needed and why the disability equipment could not be reasonably stored elsewhere or why the treatment could not reasonably take place in another room in the property.

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In a recent Upper Tribunal case, the claimant argued that her spare room was too small to be considered to be a ‘bedroom’. In this case the room measured 43 square feet and could not accommodate a single bed, bedside cabinet and clothes storage furniture.

In dismissing the appeal, the Upper Tribunal Judge held that a separate bedside table and clothes storage furniture is not required. The Judge held that a bedside cabinet that served

both purposes would do. In this case the Where there has been a death in the family, shape of the room could accommodate a any Spare Room Subsidy penalty arising single bed and bedside cabinet. The outcome because of this, would not apply for a period of of an appeal involving a similar sized room but 12 months (Housing Benefit) or 3 months with a different layout so as a single bed and (Universal Credit). bedside cabinet could not be accommodated

could have been different.

5. What is a bedroom? M v SSWP - [2017] UKUT 443 (AAC)

6. Foster Carers… The rules do not define what actually constitutes a ‘bedroom’. The starting point is that there is a room within the property which The rules enable Foster Carers to be allowed can be used as a bedroom or for sleeping in. It an extra bedroom if they are: could be that what was a lounge or living room is now used as a room for sleeping in. Much ▪ looking after a foster child, or may turn on the way the property is described by the landlord - one bedroomed, two ▪ a Foster Carer and they are between bedroomed, three bedroomed, etc. However, placements (but only for a period of 52 the fact that a landlord may only charge a one- weeks starting from the date of their last bedroom rent for a two-bedroom property is placement); or irrelevant. ▪ a newly approved Foster Carer and they

have no placement (but only for a period of In deciding whether a room is a ‘bedroom’ the up to 52 weeks from the date they were size of the room is relevant - can it approved). accommodate a single bed and somewhere to

store clothes? Issues of access to the room Note that the maximum allowance is one and whether it has adequate, natural and bedroom. This means that a Foster Carer who electric lighting, heating, ventilation and is living in a three-bedroom property with one privacy are also relevant. How a person uses foster child (and no other occupants) will still the property and the rooms within it could be encounter a 14% penalty. A Foster Carer who relevant (e.g. a person using a room in the is living in a three-bedroom property who has property to store their disability equipment). two foster children each having their own room However, it could be argued that the true would also be penalised by a 14% penalty. number of ‘bedrooms’ should be based not

upon their use and occupation but upon the classification when the property is empty.

Bolton Metropolitan Borough Council v BF(HB) - [2014] UKUT 48 (AAC) CB v Manchester City Council and SSWP (HB) - [2015] UKUT 556 (AAC) SSWP v Nelson and Fife Council - [2014] UKUT 525 (AAC) SSWP v City of Glasgow Council and IB - [2017] CISH 35 - reported as [2017] AACR 29

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There is no provision for families who have Discretionary Housing Payment (DHP): children actually in care to retain a bedroom for their potential return. Those affected by the Spare Room Subsidy who get Housing Benefit or receive Universal Credit can apply for a DHP from the City of 7. Options… Wolverhampton Council to help them to make up the gap between their rent and their The options available to those affected by the Housing Benefit/Universal Credit payments. Spare Room Subsidy are limited. If a person’s Housing Benefit/Universal Credit ‘housing cost’ payments do not cover a person’s rent in full then they are expected to make up any shortfall. A person risks losing their home if they do not pay their rent.

Those affected by the Spare Room Subsidy can seek to:

▪ move into accommodation with less bedrooms - although in cases of those who

get benefits because they are disabled/ The budget each Council has for Discretionary severely disabled they should seek expert Housing Payments is cash limited. Even advice first because moving home could though the level of the budget has been trigger the need to claim Universal Credit increased by the government to assist those and this could leave them worse off affected by welfare reform (including disabled ▪ increase their benefit income by making people living in significantly adapted sure that they are claiming all the benefits accommodation who are affected by the Spare that they are entitled to Room Subsidy but cannot reasonably be expected to move), there is not sufficient ▪ increase their income by means of finding money to help everyone. paid employment or better paid employment Therefore, applicants need to know that any ▪ take in a boarder or a lodger - before doing award will most likely be time limited and, in this the person would need to get their most situations, it will not necessarily cover the landlord’s permission first/get expert advice whole of the shortfall between a person’s rent on what impact (if any) this might have on and the level of Housing Benefit/Universal their existing benefits. Credit. In most cases, any award of a DHP will only be paid to enable the person to consider A person affected by the Spare Room Subsidy their options and get further advice where could also seek to apply for a Discretionary needed. Housing Payment. An application for a Discretionary Housing Payment may be made by either:

 Telephone: (01902) 551166

 Email: [email protected]

Alternatively, a person may write to: Revenues and Benefits Service, PO Box 250, Wolverhampton WV2 1AX.

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A copy of the Discretionary Housing Payment Benefits Information Guides: application form may be obtained on-line via the following link: 1. Universal Credit

2. Universal Credit - Claims and Payments www.wolverhampton.gov.uk/article/6760/Discr etionary-Housing-Payment-DHP 3. Universal Credit - The Claimant Commitment Only people who get Housing Benefit or 4. Universal Credit - Sanctions and Hardship whose Universal Credit calculation includes an Payments amount for rent/eligible service charges may apply for a Discretionary Housing Payment. 5. Universal Credit and Vulnerable People - Claims and Payments

6. Universal Credit - Unable to Work Due to Ill-health or Disability

7. Personal Independence Payment

8. Personal Independence Payment - Toolkit

9. Employment and Support Allowance

10. The Work Capability Assessment - Toolkit

11. Form Filling - PIP2 and ESA50/UC50

12. DWP Social Fund

8. Fact Sheets and 13. Disputes and Appeals

Information Guides 14. Going to Appeal: First-tier Tribunals

Copies of our Benefit Fact Sheets and The City of Wolverhampton Council’s Welfare Benefits Information Guides may be obtained Rights Service produces the following Benefits by visiting our pages on the City of Fact Sheets and Benefits Information Guides Wolverhampton Council website at: on benefits and welfare reform. Benefits and Welfare Reform Information Benefits Fact Sheets: Benefits Bulletins: Please also watch 1. Benefits and Work out for our Benefits Bulletins which provide 2. Benefits and Young People news on the latest developments surrounding benefits and welfare reform. These are also 3. Benefits and Older People available on the website.

4. Benefits for those who are Unable to Work Due to Ill-health or Disability  Telephone: (01902) 555351

5. Benefits for those Affected by Cancer  Email: [email protected]

6. Benefits and Carers

7. Benefits and People from Abroad Note: The details provided in this and our other Fact Sheets and Information Guides is meant to provide an overview on important and topical issues relating to Social Security benefits and welfare reform. 8. The Bedroom Tax The details should not be treated as an authoritative statement of the

law. The details may be subject to change by new regulation and/or 9. The case law. Do seek further information and advice as necessary.

10. Local Welfare Assistance Welfare Rights Service 11. Private Tenants and Universal Credit Specialist Support Team

12. Volunteering and Benefits City of Wolverhampton Council

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