Bedroom tax What is it? This affects social tenants of working age. From April 2013, housing benefit for working age people who rent their home from a local authority, a housing association or other registered social landlord, will be reduced by a fixed percentage if they have more bedrooms than they need for the size of their family. One bedroom is allowed for: . A single person; or a couple. A disabled claimant or their partner’s non resident overnight carer. Two children of the same sex, under age 16. Two children, under age 10. A severely disabled child who is unable to share a bedroom. Foster children; or a room set aside for foster children. Any other child. Armed Forces personnel who usually live with parents but are deployed on operations and intend to return to the family home. There is no minimum size that is used to determine whether a room can be classed as a bedroom or not. If you do not agree with the total number of bedrooms in your property please speak to your landlord. Does it affect me? This does not apply to pensioners. You can check you will reach qualifying pension age using the website below or follow the link from the Financial Advice Week information www.gov.uk/calculate-state-pension/y Claimants who work full-time on the minimum wage are not exempt. The following are exempt from the Bedroom Tax Shared ownership – where a tenant part owns the property under a shared ownership lease. They may have a mortgage on their part of the property and rent the rest. People who have reached the qualifying age for state pension credit. Rent liabilities for mooring charges for houseboats and site charges for caravans. A person placed in temporary accommodation by the local authority because they are homeless, or to prevent homelessness. People in supported ‘exempt accommodation’, where care and support is provided by, or on behalf of, the landlord. If you have a lodger:- From April 2013, if you have a lodger they will be included as part of your household when calculating how many bedrooms you need. The money they pay you is used as income when working out your housing benefit. But, from October 2013, under Universal Credit, any bedrooms occupied by a lodger will be treated as spare bedrooms and the bedroom tax will apply. However, the money they pay you will not be used when working out entitlement to Universal Credit. For students:- The bedroom tax will apply, unless the student is away for less than 52 weeks and intends to return home People in the Armed Forces who are deployed on operations but usually live with parents and intend to return to the family home will be treated as continuing to live at home. This means the bedroom tax will not be applied to the room they normally occupy. In addition, the person claiming housing benefit will not be subject to a non- dependant deduction while the person in the Armed Forces is away, but there will be a deduction when they return home. For foster families:- Following an announcement by Iain Duncan Smith on 12/03/13, people who are approved foster carers will be allowed an additional bedroom, whether or not a child has been placed with them or they are between placements, so long as they have fostered a child, or become an approved foster carer in the last 12 months. For equipment needed for a disability:- A bedroom that is used to store, or has been adapted to provide disability related equipment, is still counted as a spare bedroom. We may be able to help if your housing benefit is reduced because of the bedroom tax. Extra funding has been made available to the discretionary housing payment (DHP) fund to help people affected by the welfare reform changes. Contact us for more information about DHPs and how to apply. What will it mean for me? If you have: . One spare bedroom, you could lose 14%. Two or more spare bedrooms, you could lose 25%. Example 1: A single claimant renting a 2 bedroom property for £75 per week. Eligible rent to work out housing benefit is £75 less 14% (£10.50) = £64.50. Example 2: Couple with one child, renting a 4 bedroom property for £120 per week. Eligible rent to work out housing benefit is £120 less 25% (£30) = £90.00. Example 3: Two working age tenants share a 3 bedroom property, and pay £100 per week rent. Eligible rent to work out housing benefit is £100 less 14% (£14) = £86. Divide by 2 = £43 per week eligible rent for each tenant. Example 4: A pension age tenant and a working age tenant rent a 3 bedroom property for £100 per week. Eligible rent to work out housing benefit is £100 less 14% (£14) = £86. Divide by 2 = £43 per week eligible rent for the working age tenant only. As the pensioner is exempt from the bedroom tax their eligible rent is £50 per week. Note: The amounts above are used at the start of the housing benefit calculation, which also takes into account a person’s income and circumstances. Who to contact Contact your landlord RSL Telephone KHT 0151 290 7000 Villages 0151 480 1313 Riverside 0845 111 0000 Your Housing 0161 248 2300 LHT 01928 796 000 Plus Dane 0800 169 2988 Anchor 0800 023 6956 Regenda 0344 736 0066 Muir Housing 0300 123 1222 Symphony 0345 602 1120 Cosmopolitan 0151 224 0201 Council Tax Reduction Scheme What is it? From 1 April 2013, the national Council Tax Benefit scheme will be abolished and will be replaced by local Council Tax Reduction Schemes. Every local authority has had to develop its own local scheme but with significantly reduced funding. The changes only affect people of working age. Does it affect me? Pensioners are not affected by this change but it will mean that many working-age households will need to pay some council tax for the first time. The Council Tax Reduction Scheme replaces Council Tax Benefit for everyone, but only working-age claimants will see a reduction in the amount of support that they will get towards their Council Tax. What will it mean for me? For working age customers only: Everyone must pay at least the first 20% of their council tax liability. On average, for a Band A property, this will be around £3.75 per week Claims will only be backdated for a maximum of 12 months Second adult rebate will be abolished Flat rate non-dependant deductions will be applied (except where the claimant or partner is receiving Attendance Allowance, or the care component of Disability Living Allowance, or the daily living component of Personal Independence Payment) o £2 – if the non dependant is not working. o £5 – if the non dependant is working 16 hours or more. o Nil – if the non dependant is a pensioner receiving guarantee credit or savings credit. How much non dependant deduction is applied depends on whether the claimant is working age or pension age – not whether the non-dependant is working age or pension age. A non-dependant is someone who lives in your home but who is not financially dependent on you. For example, a friend or a grown up son or daughter) If you: Currently receive Council Tax Benefit; you will automatically be transferred on to the Council Tax Reduction Scheme from 01/04/13. You do not need to make a separate claim. Have not claimed Council Tax Benefit before 01/04/13, you will need to make a claim for Council Tax Reduction. You will need to fill in a detailed application form. Make a telephone claim to the Department for Works and Pensions for Income Support, Job Seekers Allowance, Employment and Support Allowance or Pension Credit; you will only need to fill in a single sheet application form. This is because the Department for Works and Pensions will verify your claim details and they are allowed by law to share this with the Local Authority’s Benefits Service, so you don’t need to provide the information twice. Who to contact Call the Council’s Contact Centre on (0151) 443 4042 Personal Independence Payment What is it? From 8 April 2013, Disability Living Allowance (DLA) will be replaced by Personal Independence Payment (PIP) for working age people; even if the person has previously been given an indefinite or lifetime award. PIP looks at how a person’s ability to carry out daily living and mobility activities are affected by their condition, or disability, and focuses on the sensory, mental health, intellectual, cognitive and development impairments; and their ability to live independently and participate in society. It does not look at capability for work. A wider scope of evidence is used for PIP, which includes evidence from the people who provide support. DLA looks at the health condition, or disability, and focuses on the physical disability. Does it affect me? Children up to 16 years of age, and people aged 65 and over will carry on getting Disability Living Allowance, as long as they remain eligible. People receiving Attendance Allowance will not be affected by the introduction of PIP. To qualify for PIP a person must: Be habitually resident in the UK (decided by DWP). Have had the disability, or health condition, for 3 months prior to the claim; and The condition is expected to last for a further 9 months. People who are terminally ill will be fast-tracked and won’t have to satisfy the qualifying period of having the disability or health condition for 3 months before the claim; or the prospective test where the condition is expected to last for a further 9 months.