Appendix A
Housing Benefit
The Housing Benefit scheme
Most people who rent their homes, and are on incomes which are significantly below average, are entitled to receive the largely government-funded Housing Benefit which operates as a housing allowance for Council and Scottish Homes tenants and a housing rebate for all other tenants.
The Housing Benefit scheme for all except Scottish Homes tenants is administered by experienced staff of the Council. If a Scottish Homes tenant you should apply to its local office.
It is particularly important that anyone interested in claiming Housing Benefit entitlement should contact the relevant Housing Benefit staff as soon as possible, because there is a risk that the claimant may not be entitled to receive Housing Benefit for any rent paid before the Council (or Scottish Homes) was informed of the claim.
The Housing Benefit claim procedure
Every Housing Benefit claimant must submit and sign a detailed application form. Council staff are happy to help applicants to understand and complete the application form.
Verification of the applicant's financial resources is essential, so evidence of both income and capital will be required to support the answers given in the application form. This means that payslips, bank statements, benefit books and so on must be made available for inspection by Council (or Scottish Homes) staff. But as long as the application form is submitted the claim can be made payable in full from the submission date, even though the evidence on the applicant's resources may take some time to produce and be verified. It is also worth noting that a single application form may be used to claim Council Tax Benefit as well as Housing Benefit, which means that the end result of the application process could result in the applicant receiving both benefits.
The Council (or Scottish Homes) staff then work out how much Housing Benefit is due according to the answers to the following four questions:
• how much money the applicant has coming in from his or her earnings and any other income and from his or her partner's earnings and income
• how much money the applicant and, where applicable, partner have saved or invested (no Housing Benefit will be paid where savings amount to £16,000 or more and it will usually be reduced on a sliding scale if savings are over £3,000)
• the applicant's personal circumstances (the numbers of dependants living in the same household, whether the applicant is disabled, etc)
• the maximum rent level which the Housing Benefit system will support (see below for explanation).
The maximum rent level
If the applicant is a Council, Scottish Homes or housing association tenant then the rent can be met in full by Housing Benefit. If, however, the applicant is a private tenant and the rent charged is considered by the Council to be too high then the Housing Benefit paid out will be less than the rent charged.
Renting privately
It is particularly important, therefore, that those who are thinking of renting a private property should contact the Council's Housing Benefit staff to find out what level of rent is likely to be met by Housing Benefit. Staff can either make an informal calculation on the basis of their indicative rent levels for similar properties or they can give a precise 'pre-tenancy determination' (PTD). However, the determination, which usually takes three days to reach, can only be given where the landlord has given written consent. Both the informal and formal advice given by Council staff will give the applicant a clear idea of whether he or she will be able to afford the rent asked after any contribution from Housing Benefit has been allowed for.
Restrictions on Housing Benefit for single people under 25
It is important to note the restrictions that have been imposed by Government on the amount of Housing Benefit which can be given to single people under 25 years old renting privately. The Housing Benefit is restricted to the equivalent indicative rent in the area for a single room, which is assessed locally, irrespective of the actual rent charged.
Young single people on low incomes are therefore advised to speak to an advice agency or Housing Benefit staff at the Council before accepting any offer of rented accommodation.
Further information
Detailed information and advice on all the assessment procedures for Housing Benefit will be willingly given by local advice agencies like Shelter or the Citizens Advice Bureau, as well as by the Council's and Communities Scotland’s trained staff at the local offices.
Right to appeal
Any Housing Benefit applicant has a right to ask the Council to review their decision, if the applicant is not satisfied with it.
Transitional Housing Benefit
If a tenant has for example been homeless or previously lived in a hospital or residential care or requires additional support on account of being elderly, landlords may provide accommodation with support services which enable the tenant to live independently in the community. If the tenant is eligible for housing benefit then he may also claim Transitional Housing Benefit to cover the cost of the housing support service. Normally the landlord or the organisation providing the support will make the claim on behalf of the tenant or assist the tenant to make the claim.
In April 2003 a Supporting People Grant will be introduced, payable by local authorities. People in receipt of Transitional Housing Benefit, Special Needs Allowance Package (SNAP) and Resettlement Grant will become eligible for the new grant which will also be available to owner occupiers who may receive housing support services to enable them to remain in their own homes.
