If your home is bigger than you need Avoiding and coping with the bedroom tax (under-occupancy charge) www.soha.co.uk THE BEDROOM TAX If you’re of working age, receive Housing Benefit and have one or more spare bedrooms, you will lose some of your benefit because of Government changes from April 2013. This is called the Under-Occupancy Charge, commonly known as ‘the Bedroom Tax’. How much Housing Benefit you lose: I No extra rooms are allowed for visitors – even foster children or a I One spare bedroom - 14% of the child coming to stay if they don’t total weekly rent normally live with you I Two or more spare bedrooms - I No allowance is made for couples 25% of the total weekly rent who need to sleep apart because of a If your Housing Benefit is reduced medical condition because your home is bigger than you if you recEIve pension credit: need, you will have to pay the extra amount. If you or your partner receive Pension What counts as a ‘spare’ room: Credit, you will not be affected by the Bedroom Tax in April. If one of you is From April 2013, the Government’s under Pension Credit age, you may be benefits rules say that: affected later, as you move onto Universal Credit. I Children of both sexes aged under 10 will share a bedroom I Children of the same sex aged under 16 will share a bedroom I Each adult or couple will have their own bedroom I A bedroom for a carer providing overnight care (who does not normally live with you) does not count as a spare room HOW IT AFFECTS US How one Soha household is coping with the benefits changes. Ann-Marie and her nine-year-old twin Ann-Marie is a key member of Soha’s sons live in a three bedroom home. From Tenants’ Forum and a Welfare Benefits the start of April 2013 Ann-Marie will lose Champion. She believes it's very 14% of her Housing Benefit because of important for residents to understand the Bedroom Tax. As her sons are under what the Government's benefits changes 16, they're expected to share a bedroom mean. She says: “It’s vital that everyone rather than having one of their own. affected by the benefit changes takes some action to keep their homes.” Ann-Marie is acting now to cope with this change and has decided to take in a lodger. She has also checked out the impact on her Council Tax single person reduction - the £28 a month she loses on ACT NOW this will be more than covered by the IF YO income from her lodger. U LOSE HOUSING BENEFIT BECAUSE OF THE BEDROOM TAX, YOU MUST ACT NOW. DON’T IG NORE THE CHANGES OR LEAVE IT UNTIL IT’S TOO LATE TO SOLVE ANY PROBLEMS. SE E THE BACK OF THIS LEAFLET FOR IDEAS ON WHAT YOU CAN DO. WHAT YOU CAN DO If you can’t manage the cut in your Housing Benefit because of the Bedroom Tax, you can: Bid Contact us for another, smaller home via the choice on 01235 515900, freephone 0800 014 based lettings scheme for your area: 15 45 or [email protected] for other advice and help, or to get this leaflet in I www.oxfordshirehomechoice.org.uk another language or format. I www.homes4wiltshire.co.uk facebook.com/sohahousing I www.swindonhomebid.org.uk If you move out of a family-sized home K into a one-bedroom property, you may EEP UP TO DATE WITH THE LATEST INFOR be eligible for a payment of up to £700 MATION ABOUT GOVERNMENT BENEFITS to help with your move. CHANGES AT: WWW.DIRECT.GOV.UK Take in a lodger but please contact us first and tell the housing benefit department Apply to be rehoused with a friend or family member Exchange your home with someone who needs to move into a larger property using www.homeswapper.co.uk If you lose income from benefits changes coping with the government’s benefit cap www.soha.co.uk THE BENEFIT CAP Between April and September 2013, Government changes will start to limit the total amount that working age households can receive in welfare benefits. This is called the Benefit Cap. How much you can receive How the cap works Under the new rules, the maximum The Government adds up how much amount of benefit you can receive will be: money everyone in your household gets from a range of benefits. If the total is n £350/week for single people without more than the maximum amount, your children Housing Benefit will be reduced. The n £500 per week for single parents benefits included are: n £500 per week for couples with or n Housing Benefit without children n Jobseekers Allowance n Employment Support Allowance n Child Benefit n Child Tax Credit n Carer’s Allowance If this happens, you will have to make up the difference by paying the extra amount yourself. HOW IT AFFECTS US How one Soha household is affected by the Benefit Cap. Jenny and Sam live in a three-bedroom Who it applies to house with their four children. The Benefit Cap affects larger households Before the Benefit Cap, each week they more than smaller ones. It does not apply jointly received: if you get Pension Credit or Working Tax n £139.60 in Employment Support Credit, or if anyone in your household Allowance claims any of: n £60.50 in Child Benefit n Disability Living Allowance (DLA) n £206.92 in Child Tax Credits n Attendance Allowance n £125.00 in full Housing Benefit n Employment Support Allowance - the support element, (ESA) Their total weekly income from various benefits was £532.02. The Government’s changes mean that they can only receive a maximum of £500 TAKE ACTION per week, so their Housing Benefit is cut IF YO U LOSE HOUSING BECAUSE OF THE BENEFIT to £92.98 per week. C AP, YOU MUST TAKE ACTION. DON’T IGNORE THE They have to pay the difference of £32.02 CHANGES OR LEAVE IT UNTIL IT’S TOO LATE per week to Soha Housing themselves. TO SOLVE ANY PROBLEMS. SE E THE BACK OF THIS LEAFLET FOR IDEAS ON WHAT YOU CAN DO. WHAT YOU CAN DO If you can’t manage the cut in your income because of the Benefit Cap, you can: Try to find work Contact your local council or increase your hours - contact Jobcentre about a Discretionary Housing Payment Plus Job Search on 0845 606 234 or (DHP) - these may be available for a www.gov.uk/jobsearch limited time to help towards your Consider moving housing costs. See our separate leaflet about this. to a smaller and cheaper home using Contact us the choice based lettings scheme for your area: on 01235 515900, freephone 0800 014 15 45 or [email protected] for other n www.oxfordshirehomechoice.org.uk advice and help, or to get this leaflet in n www.homes4wiltshire.co.uk another language or format. n www.swindonhomebid.org.uk facebook.com/sohahousing Or try www.homeswapper.co.uk (Soha run free computer training sessions if you need help getting online) . KEEP UP TO DATE WITH THE LATEST INFOR Take in a lodger MATION ABOUT GOVERNMENT BENEFITS CHANGES AT: WWW.DIRECT.GOV.UK the Benefit Cap does not include non- dependant adults living with you, and the first £20 per week of income from a lodger isn’t counted towards benefits. Please contact us first and tell the housing benefit department if you plan to take in a lodger. www.soha.co.uk SOHA Postcard A6_Layout 1 27/02/2013 13:08 Page 1 SOHA Postcard A6_Layout 1 27/02/2013 13:08 Page 2 FROM APRIL 2013, YOU MAY BE AFFECTED BY GOVERNMENT CHANGES TO WELFARE BENEFITS FOR WORKING AGE PEOPLE Act now if you: DON’T IGNORE THESE CHANGES n lose Housing Benefit because your OR LEAVE IT UNTIL IT’S TOO LATE. home is bigger than you need n lose benefits because of the £500 per If you’re a Soha tenant contact us on week total benefits cap for your 01235 515900 or freephone 0800 household, or local Council Tax changes 014 15 45 or [email protected] n need help to get a bank account or get For other enquiries, contact online to claim Universal Credit (from Oxfordshire Citizens Advice Bureau October 2013) on 08444 111444 or go to n need help or advice to manage your www.citizensadvice.org.uk budget facebook.com/sohahousing.