Policy Briefing Housing Benefit size criteria rules: the ‘bedroom tax’ January 2013 Summary Housing Benefit is changing and a restriction is being introduced on the number of rooms in a socially rented home which will be covered by Housing Benefit. The new size criteria could have a major impact on certain groups of carers and some families may be unable to cover the shortfall putting them at risk of having to move. Carers UK is particularly concerned that couples where one person is disabled, only one bedroom will be allowed under Housing Benefit rules. This means that a couple who need an extra bedroom for equipment or are unable to sleep in the same room, not be given enough Housing Benefit to cover the extra rent costs of having this room to retain this room. Many homes have been specially adapted, often at a considerable financial cost to local authorities or families themselves. If these families are forced to move, this would be not only distressing for families and disruptive to care arrangements but could risk a greater long-term cost as adaptations need to be replaced in new homes. This note summarises the new rules and looks ahead to further changes on the introduction of Universal Credit later next year. Size criteria rules: what are they? The size criteria rules, have restricted Housing Benefit for private sector tenants for some years. From 1 April 2013 they will also be applied to social sector tenants (people with housing association or local council tenancies for instance). This is commonly referred to as the ‘Bedroom Tax’. What does it mean? The size criteria in the social rented sector will restrict housing benefit to allow for one bedroom for each person or couple living as part of the household, with the following exceptions: • Children under 16 of the same gender are expected to share • Children under 10 are expected to share regardless of gender • A disabled tenant or partner who needs a non-resident overnight carer will be allowed an extra room. In addition, following a court case, children unable to share a room because of a disability will be able to have an extra bedroom. The Government are appealing this decision and the outcome of this Appeal is likely to be made in April 2013 on whether it will be possible for an extra bedroom to be claimed by the family of a disabled child. Who will this affect? • Couples who use their ‘spare’ bedroom when recovering from an illness or operation, or who cannot sleep in the same room because of disturbed sleep • Parents whose children visit but are not part of the household • Disabled people including people living in adapted or specially designed properties Someone who needs overnight care from someone who does not live with them is entitled to Housing Benefit to pay for the extra room. The person providing care could be a care worker or an unpaid carer. However, you cannot be allowed an extra bedroom on the basis of disability if you are an adult - for instance where one of a couple has a disability and the couple cannot sleep in the same room. This means that someone providing care to their partner will not be entitled to Housing Benefit for an extra bedroom but someone who has engaged a care worker to provide overnight care will be able to have another bedroom for them. Disabled people who use an extra room for equipment or who have a specially designed property will also be affected. Who will it apply to? The size criteria rules will apply where both the claimant and their partner are under state pension age. How much will people lose? • 14% of the total eligible rent for under occupation by one bedroom or • 25% of the total eligible rent for under occupation by two bedrooms or more What happens if a member of the household dies? Where a member of the household dies, the size criteria will be protected for up to 52 weeks under Housing Benefit so the same amount of Housing Benefit will be paid for a year after the person’s death. 2 What options will people have after April? Some families may be able to take up paid work or increase their working hours. If you are considering this you should get a benefit check to ensure you are getting all the benefits you are entitled to while working. Some families unable to move into work or increase working hours could consider one of the following; • People will be able to apply for Discretionary Housing Payments (DHP) from local councils. However, this is funded by a limited sum of money and most councils will not award DHPs on an ongoing basis. Therefore, these payments may be helpful while people look to find another solution to the problem - but they are unlikely to be a long term solution in themselves. Contact your local council to discuss DHPs. • Some housing associations and local councils may help people to move to smaller accommodation – people would need to discuss this option with their housing provider. • Some people may be able to rent out the spare room – but this will depend on their tenancy and they would need to seek benefits advice before doing so - to check how any rent they charge might affect their benefits. Obviously for many families living with disabilities none of the above will be long term options. Introduction of Universal Credit Universal Credit is a new benefit that is going to replace a number of existing benefits including Housing Benefit and will be implemented from October 2013 starting in a few areas. The social sector size criteria will continue under Universal Credit. A calculation will be made as to how many bedrooms it is “reasonable” for someone to have in their home. A person renting will be entitled to one bedroom for each of the following categories in their household (which includes non-dependents) — (a) the people who rent or jointly rent (b) a qualifying young person (aged 16-19) for whom the person renting is responsible; (c) a non-dependant who is not a child; (d) two children who are under 10 years old; (e) two children of the same sex; (f) any other child. A non-dependent is someone outside your benefit family e.g. an adult child over 21, a parent or a friend that has moved in to help out. 3 How much will people lose? Deductions will be made for under-occupation, after any other deductions are made for non- dependants. • 14% of the total eligible rent for under occupation by one bedroom • 25% of the total eligible rent for under occupation by two bedrooms or more. People who require overnight care An extra room will be permitted for certain claimants who requires overnight care They must be in receipt of one of the following: • the care component of disability living allowance at the middle or highest rate • attendance allowance • the daily living component of personal independence payment. and one or more people who do not live in that person’s rented accommodation must be engaged as an overnight carer and stay overnight at the accommodation on a “regular basis”. It does not specify whether this overnight ‘carer’ is a paid professional or not therefore Carers UK believes that this should also cover non-resident family members who satisfy the condition. Other changes to Housing Benefit under Universal Credit Non-dependants will be considered to be still occupying a bedroom for any temporary absence of up to six months only. Current rules allow absences for up to 52 weeks (for example where a child is in hospital). Where a member of the household dies, the size criteria will be protected for up to 52 weeks under Housing Benefit but under Universal Credit this will be reduced to 3 months. Contact; Chloe Wright, Senior Policy and Public Affairs Officer, Carers UK T: 0207 378 4942, E: [email protected] Keep up to date with our campaigns and research: Web: www.carersuk.org, Facebook: www.facebook.com/carersuk. Twitter: www.twitter.com/carersuk Legal information Carers UK is a charity registered in England and Wales (246329) and in Scotland (SC039307) and a company limited by guarantee registered in England and Wales (864097). Registered office 20 Great Dover Street, London, SE1 4LX. 4 .