Updated March10

Housing Benefit

LEGISLATION

Housing Benefit is governed by Sections 122, 129 and 130 to 133 of the Social Security Contributions and Benefits (NI) Act 1992, Sections 73 and  126 to 128 of the Social Security Administration (NI) Act 1992 and the Housing Benefit (Payment to Third Parties) (NI) Order 1996.

Regulations are contained in the Housing Benefit Regulations (NI) 2006, SR No. 2006, No. 405 as amended.

Decision Making and Appeals is governed by the Housing Benefit (Decisions and Appeals) Regulations (NI) 2001.

Rates are covered by the Rates (Amendment) (Northern Ireland) Order 2006 SI No. 2954 (NI 18), as amended, the Rate Relief (Education, Training and Leaving Care) Regulations (Northern Ireland) 2007 SR No. 148, the Rate Relief (General) Regulations (NI) 2007 SR No. 204 and the Rate Relief (Qualifying Age) Regulations (Northern Ireland) 2007 SR No. 203 as amended.

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INTRODUCTION

Housing Benefit is a means tested benefit. It can be claimed by people who have a low income and either rent their homes or pay rates as owner occupiers. It is paid whether or not a person is in full-time work.

Housing Benefit for tenants is paid by the Northern Ireland Housing Executive (NIHE). Owner occupiers receiving rate rebates by way of Housing Benefit are paid by the Land and Property Services (Rating Services) which is referred to in the notes as the LPS.

Different rules apply to people claiming Housing Benefit who are aged 60 or over, are not claiming Income-based Jobseeker’s Allowance (JSA(IB)) and do not have a partner claiming Income Support or JSA(IB).  Section 6 deals with the new rules for this group and refers to them as people aged 60 and over.

The rating system for domestic properties has been reformed and a new scheme providing additional help with rates, the Rate Relief Scheme, was introduced (see 14.7 for further details). This scheme operates alongside and is additional to the Housing Benefit Scheme.

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1. WHO CAN CLAIM?

To qualify for Housing Benefit, a person must satisfy all of the conditions set out below.

1.1 Must satisfy capital rules

If a person is aged under 60, Housing Benefit will not be paid where s/he and/or partner have over £16,000 capital. Some capital may be ignored in certain circumstances, but a person may also be treated as having capital which s/he does not actually possess in other circumstances.

The first £6,000 in capital is ignored altogether.

Tariff income is applied to capital between £6,000 (£10,000 if living permanently in a care home) and £16,000.  A person is assumed to have an income of £1 for every £250 or part of £250 above £6,000.

The capital of a child/qualifying young person is ignored.

Different capital rules apply to a person aged 60 or over (see sections 6.1.1 and 6.5.3.3).

1.2 Must be liable for rent

A person or partner must be liable to pay rent on the home.

Where the person claiming is not liable but in practice is paying the rent, eg:

then s/he will be treated as liable for rent for Housing Benefit purposes.

A person liable to make payments in respect of a dwelling will be treated as if s/he was not liable where:

is a director or employee of the company or beneficiary or trustee of the trust. This does not apply where the liability was not created to take advantage of the Housing Benefit scheme. The onus rests with the person claiming to prove this;

1.3 Accommodation as the person's home

Housing Benefit will only be paid for accommodation which is normally occupied as the home. In most cases, benefit will only be paid on one home and not be paid until the person has actually moved into the accommodation.

In specific circumstances, however, once a person has moved in, it is possible to get Housing Benefit for a new home up to four weeks before strictly moving in. These circumstances are where the delay in moving in is reasonable and:

To qualify on the basis of the above circumstances, a person must have moved in, been liable to make payments and claimed benefit before moving in, and either the claim has not been decided or it was refused and a second claim is made within four weeks of moving into the new accommodation.

Housing Benefit can also be paid on two homes, but only in particular circumstances. These include:

Where a person has moved into a new home and could not reasonably avoid liability to make payments in respect of two homes or has a liability for two rents because special adaptations for a person with a disability are being made in one of the homes, payment can be made for up to four weeks from the day of the move. 

In addition, rent can be paid for up to four weeks on a former home where there is unavoidable liability for rent and the person:

Special rules apply where a person is temporarily absent from home (see section 10).

1.4 Must satisfy right to reside test and habitual residence test

1.4.1 Right to reside test

As a condition of entitlement to Housing Benefit, a person must have a ‘right to reside’ in the United Kingdom, Republic of Ireland, the Channel Islands or the Isle of Man and must be treated as habitually resident in the UK.  This is a complex matter and will depend on immigration law. A person should seek advice from Law Centre (NI) if refused Housing Benefit due to not having a right to reside.

Under UK law, the following groups of people have a right to reside:

The test has caused problems for EEA nationals who are not working or job seeking eg those with caring responsibilities.  Anyone affected should contact Law Centre (NI) for further advice.

1.4.2 A8 Nationals

A8 nationals are people from the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia.  Special rules apply to people claiming Housing Benefit from these states.

A8 nationals must register the first twelve months of their employment under the Worker’s Registration scheme, which is run by the Home Office. All employment and changes of employment during the first twelve months should be registered. Once an A8 national registers with the Home Office s/he will be entitled to apply for Housing Benefit.

Some A8 nationals are exempt from the registration rules. These include:

1.4.3 A2 Nationals

A2 nationals are people from Bulgaria and Romania.  In order to have a right to reside for Housing Benefit purposes, people from these states must comply with a Home Office Workers Authorisation Scheme during the first twelve months of their employment in the UK. They must get a worker’s authorisation card before taking up employment or apply to the work permit scheme.

Some people are exempt from this rule.  Exempt groups include:

1.4.4 Access to benefit for A8 and A2 nationals

Those who are in registered work (A8) or authorised work (A2) or who are in exempt groups are entitled to claim Housing Benefit.

1.4.5  The habitual residence test

A person must be habitually resident or treated as habitually resident in the ‘Common Travel Area’ which is the United Kingdom, Republic of Ireland, Channel Islands or Isle of Man.  The test applies to all people (but not partners or dependants) including British or Irish citizens returning to Northern Ireland.

In deciding whether a person is habitually resident, NIHE will look at all the facts of the case.  Relevant facts may include whether the person:

Most people will have to show actual residence for an appreciable period of time before satisfying the test.  This is not defined but decisions have been made that suggest it is normally for a period of between a few days and three months.

Anyone refused Housing Benefit on habitual residence grounds should make a fresh claim and contact Law Centre (NI) for further advice.

1.5 Must not be subject to immigration control

A person will be subject to immigration control if s/he is not an EEA national and:

If a person is defined as a person subject to immigration control, s/he will be excluded from entitlement to many benefits including Housing Benefit unless s/he falls with certain exemptions.

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2. CLAIMING HOUSING BENEFIT

A person claiming Income-related Employment and Support Allowance (ESA), Income Support or JSA(IB) will be issued with a separate form for claiming Housing Benefit. This must be returned to the local social security office within one month of the date when the claim for Income-related ESA, Income Support or JSA(IB) was made.  Housing Benefit will start from the first day of entitlement to Income-related ESA, Income Support or JSA(IB).

The process for claiming Housing Benefit is different for a person who is 60 or over and in receipt of Pension Credit (PC). See section 6.

A person not on Income-related ESA, Income Support or JSA(IB) must apply directly to the local NIHE district office or the local LPS office (if owner occupier). The date of claim will be treated as the date of first contact, providing a written claim is received within one month, and payment will usually begin on the Monday following the date of claim.

Where a person starts a tenancy (or becomes liable for the first time to make payments for accommodation being occupied as the home), entitlement starts in the benefit week in which the claim is made. Where a person lives in a hostel or certain board and lodging accommodation with a daily rent liability, s/he will be entitled to Housing Benefit from the first day of occupation. 

A person can make a claim for backdating of Housing Benefit for up to six months where s/he can show that s/he meets all the qualifying conditions and that there has been continuous good cause for not making a claim earlier (but see section 6.2 if a person is 60 or over).

Claims for Housing Benefit can also be made by email if this has been authorised by a direction of the relevant authority and by telephone if the relevant authority has published a telephone number for the purpose of receiving such claims. 

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3. EXTENDED PAYMENTS

A person whose entitlement to Income Support, JSA(IB), ESA, Incapacity Benefit or Severe Disability Allowance (SDA) has ended as a result of her/him or partner starting work, increasing hours of work or increasing earnings will be entitled to an extended payment of Housing Benefit.

This means that for the four weeks following entitlement to Income Support, JSA(IB), ESA, Incapacity Benefit or Severe Disablement Allowance (SDA) finishing, Housing Benefit will be paid at the same rate as that being paid when entitlement to one of the benefits  ended.

To qualify for an extended payment, a person or partner must satisfy the following conditions:

If the above applies a person must also satisfy the following conditions namely:

It is not necessary to make a claim for an extended Housing Benefit payment. A person must notify the Social Security Agency or NIHE of the change of circumstances within four weeks and payment should then be made automatically.

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4. payment of housing benefit

Housing Benefit for NIHE tenants is paid in the form of a reduction in rent. Housing associations tenants and private tenants are usually paid by cheque although in certain circumstances Housing Benefit may be paid directly to the landlord.

Housing Benefit must be paid directly to the landlord where a person is on Income Support, JSA(IB), ESA or PC and the Social Security Agency is paying part of that to cover rent arrears. Direct payments will also be made where at least eight weeks rent arrears are owed unless NIHE considers it not to be in the person’s overriding interests to pay the money directly to the landlord.

NIHE also has discretion to make direct payments where the person requests this or it is decided that it is in her/his best interests or s/he has left accommodation and there are rent arrears. The LPS has similar powers to make direct payments.

Housing Benefit is paid in arrears. Where Housing Benefit is paid directly to a landlord, the payment is made four weeks in arrears. A person who began to receive Housing Benefit before 7 October 1996 continues to get payment in advance unless s/he moves accommodation or has a break in her/his claim.

Providing a person claims on an official application form and gives all the information needed to deal with the claim, NIHE is under a duty to give a decision within fourteen days of the application or as soon as is reasonably practicable thereafter. Private tenants whose claims are not decided within fourteen days are entitled to an interim payment until the claim is finally sorted out.

Whilst claiming Housing Benefit, a person has an ongoing duty to report any changes in circumstances (see section 7) which might affect entitlement.

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5. CALCULATING HOUSING BENEFIT

How Housing Benefit for people under 60 is worked out depends on whether a person is in receipt of Income Support, JSA(IB) or Income-related ESA or not.

Housing Benefit for a person on Income Support or JSA(IB) or Income-related ESA  is worked out by calculating maximum Housing Benefit (ie 100 per cent eligible rent and 100 per cent eligible rates). This is the amount of assistance a person on Income Support, JSA(IB) or Income-related ESA is entitled to.

To work out maximum Housing Benefit, see 5.1.

There are four steps to calculating Housing Benefit for a person not on Income Support, JSA(IB) or Income-related ESA.

These are:

Step 1:   calculate maximum Housing Benefit (ie 100 per cent eligible rent and 100 per cent eligible rates);

Step 2:   calculate the person's applicable amount for Housing Benefit;

Step 3:   calculate the person's income for Housing Benefit;

Step 4:   compare income with applicable amount.

If income is less than applicable amount, maximum Housing Benefit is payable.

Where income is greater than applicable amount, apply taper to the excess figure to reduce Housing Benefit entitlement.

5.1 Step 1: calculate maximum Housing Benefit

Maximum Housing Benefit is 100 per cent eligible rent and 100 per cent eligible rates. In practice, this will mean the normal rent and rates charged minus any deductions for non-dependent adults living at home, fuel charges, meal charges and certain service charges where these are included as part of the rent. However, eligible rent can also be restricted to a level lower than the contractual rent in certain other circumstances (see section 9).

5.1.1 Deductions for non-dependants

Adults living at home are expected to contribute towards the rent and rates therefore set deductions are made from eligible rent and rates. These deductions are as follows.

Weekly deductions for rent

Weekly deductions for rates

These income levels only apply to non-dependants in full-time paid work but see below if the non-dependant is also on PC.

Full-time paid work is paid employment of sixteen hours or more a week.  Gross income is gross wages (before tax and national insurance deductions) and most other income. 

Income which is disregarded includes Disability Living Allowance (DLA), Attendance Allowance and payments from the MFE Trust, formerly the Macfarlane Trust and the Eileen Trust, the Independent Living Fund and the Skipton Fund.

Where a non-dependant is not in full-time work, a weekly deduction of £7.40 will usually apply.  Exceptions to this rule provide that in certain cases no deductions will be applied (see below).

A weekly deduction of £7.40 will be made where a person is on Income Support or JSA(IB) or Income-related ESA and aged 25 or over.

No deduction will be made for any non-dependant who is:

No non-dependant deductions will be made if the person claiming or partner is:

This applies regardless of the number of non-dependants at home or their circumstances.

5.1.2 Fuel charges

Housing Benefit will not usually be paid for fuel charges (for example, heating, lighting, hot water or cooking) that are included as part of rent.

However, a service charge for the use of fuel in communal areas will be met where that charge is separately identified from any other charge for fuel used within accommodation.

How fuel charges are treated depends upon whether or not the charge for fuel is specified as part of the rent.  The general rule is that if the fuel charge is specified, this amount is deducted from rent. Where the fuel charge is unspecified, a flat rate fuel deduction is made. The amount deducted from eligible rent is as follows.

5.1.3 Charges for meals

Any charge for meals as part of rent will not be covered by Housing Benefit. Where housing costs include an amount for meals or board, then a set deduction will be made in working out eligible rent. People in hostels or board and lodging are likely to be affected by these rules.

The deductions are as follows.

A higher meals deduction in respect of a young person aged sixteen will not begin until the first Monday in September following her/his sixteenth birthday.

5.1.4 Service charges

The general rule is that service charges are eligible for Housing Benefit if they are reasonable, paid as part of the tenancy and not specifically excluded from assistance. However, service charges in supported accommodation are treated differently (see 5.1.5). Service charges eligible for Housing Benefit include:

The following services are not eligible for Housing Benefit:

5.1.5 Service charges in supported accommodation

Supported accommodation means:

For people in supported accommodation, service charges are not eligible for Housing Benefit. Instead, the Housing Executive funds the landlord (eg a voluntary organisation or other social landlord) to provide the following services:

5.2 Step 2: calculate applicable amounts

Housing Benefit is based on a comparison of income with a person's applicable amount (ie personal allowances plus premiums). A person's applicable amount is calculated in the same way for Housing Benefit as for Income Support except that:

Applicable amounts are fixed by the government every April. The amounts that apply depend on age, whether single, a lone parent or one of a couple and the number of any children and/or qualifying young people.

5.2.1 Personal allowances

A person aged sixteen or seventeen is entitled to Housing Benefit if s/he satisfies the normal rules of entitlement.   

A child is anyone under sixteen. It also includes anyone aged sixteen or over but under 20 who counts as a qualifying young person for Child Benefit purposes. This will include a person who:

Special rules apply to sixteen and seventeen year olds who claim Housing Benefit and who have been looked after by social services.  People in this category should seek support from social services and if necessary contact Law Centre (NI) for further advice.

5.2.2 Premiums

Premiums are added to basic personal allowances in recognition of extra expenses due to disability or having children and/or qualifying young people.

5.2.2.1 Family premium

A family premium is awarded in respect of a family with a child or qualifying young person. One family premium applies regardless of the number of children or qualifying young people.

A higher rate is payable where the family includes a child under one year. A child will be deemed under one year until the first Monday after her/his first birthday. It can be added to any of the premiums listed below.

5.2.2.2 Family premium lone parent rate

A person will qualify for the family premium lone parent rate if:

This premium is applicable where a child or qualifying young person of the family:

A separate premium is paid for each child or qualifying young person who is disabled and can be paid on top of any other premium.

5.2.2.4 Carer premium

This premium is applicable where the person claiming or her/his partner:

This premium is applicable where a person or any member of her/his family who is under 60:

A person is treated as receiving the highest rate care component of DLA during any period when it is suspended because s/he is in hospital.

Amount

5.2.2.6 Severe disability premium

The severe disability premium is awarded where:

Note: A person who is in receipt of one of the required benefits and has a partner who is registered blind (or treated as blind because s/he came off the register in the last 28 weeks) is treated as a single person.

The following two premiums are called client group premiums.

A person will be assessed for one client group premium, whichever one is the highest.

5.2.2.7 Disability premium

There are three routes to the disability premium.

A person on ESA will not receive a disability premium with Housing Benefit, although people on Incapacity Benefit continue to receive the disability premium. This applies even if a claimant would qualify on other grounds eg by getting DLA or being registered blind.

However, if the claimant’s partner becomes the claimant and the partner does not have limited capacity for work then the disability premium can be included. It may therefore be advantageous to put the claim in the partner’s name. If in any doubt, contact Law Centre (NI).

will also be entitled to a disability premium.

Breaks of incapacity of up to 56 days will be ignored. Evidence of incapacity must have been accepted by the Social Security Agency for the purposes of a claim for Incapacity Benefit and acceptable medical evidence must continue to be submitted. Once the premium applies, any gap of up to eight weeks where a person is no longer incapable of work is ignored.

Note: Normally, only one premium (the highest) is applicable. However, disabled child, carer, enhanced disability premiums and severe disability premium can be added to any other premium.

5.3 Step 3: calculate income

Income includes earnings, net profit if self-employed and other income. The income of a child/qualifying young person is ignored.  All earnings are subject to a disregard.  The treatment of income depends upon the source of the income.

5.3.1 Earnings

Earnings include:

Net earnings are counted (ie gross earnings minus tax, national insurance and half of any personal pension contribution).

In self-employment, net profit is calculated.   This means all self-employed earnings minus reasonable expenses, tax, national insurance contributions and half of any payment towards a personal pension.

In the case of childminders, the net profit is one third of earnings less tax, national insurance and any pension contribution.

Reasonable expenses are those wholly and exclusively incurred for the purposes of running the business. Where an item is used partly for work and partly for private purposes (eg a car or telephone), the costs are apportioned between the two and only costs associated with the business are allowed.

Reasonable expenses include:

Reasonable expenses do not include:

5.3.1.1 How earnings are worked out

Earnings are normally assessed on the last five weeks before a claim if a person is paid weekly or the last two months if paid monthly. Where earnings fluctuate or there has been a recent change in earnings or about to be such a change, a different period can be used to give a more accurate picture.

If a person has just started work, an estimate can be based on likely future earnings.

For the self-employed, earnings are normally assessed over an appropriate period to determine earnings. This period must not be longer than a year.

5.3.1.2 Earnings disregards

Earnings are subject to the following disregards:

The standard earnings disregard of £5/£10/£20/£25 is increased by £16.85 where a person:

There is no increase in the standard earnings disregard where the person's (plus partner's) earnings do not exceed the total of:

Where the total earnings do not exceed the total of the above and there is an award of WTC, £16.85 of WTC is disregarded.

Relevant childcare charges of up to £175 if the person is paying for one child and £300 for more than one child per week can be offset against earnings when calculating Housing Benefit. In certain circumstances, they can be offset against earnings plus WTC. The help is for childcare in respect of a child or children under fifteen (sixteen if disabled) and is available to:

Childcare must be provided by a:

Weekly childcare charges should be calculated over whatever period, not exceeding a year, gives the best estimate of the average weekly charge over the benefit period. Childcare charges can be calculated where an agreement for childcare has been made but charges for that care have not yet been incurred. The calculation of future charges is based on a written estimate provided by the person and childminder or childcare provider.

In certain cases, earnings plus WTC can be subject to the childcare disregard.  This applies where the earnings of the person claiming are less than the lower of either her/his childcare charges or her/his childcare costs disregard.

A person engaged in remunerative work immediately before becoming entitled to SSP, ESA, lower rate Incapacity Benefit, Income Support or national insurance credits on grounds of incapacity will continue to be treated as in remunerative work for childcare disregard purposes. 

Childcare charges can be deducted for a new born baby or newly adopted child where a person on maternity, paternity or adoption leave is receiving SMP, SAP, SPP or maternity allowance and was in remunerative work before the maternity, paternity or adoption leave began.

5.3.2 Other income

Some income is counted in full, some is partly disregarded and some is completely disregarded.

5.3.2.1 Income counted in full

5.3.2.2 Income partly disregarded

5.3.2.3 Income disregarded completely

5.3.2.4 Income from capital

Where a person or partner has savings between £6,000 and £16,000, an income of £1 per week will be assumed for every £250 in excess of £6,000 (£10,000 if permanently in a care home). 

5.4 Step 4: calculate entitlement to Housing Benefit

Housing Benefit is calculated by comparing a person's applicable amount and income. Where the applicable amount is greater than the income, then maximum Housing Benefit is payable (ie 100 per cent eligible rent and 100 per cent eligible rates minus any deductions for non-dependants, for fuel, meal and service charges).

Where income is greater than applicable amount, Housing Benefit is reduced below the maximum by means of a set taper.

The taper for rent is 65 per cent of the amount by which income exceeds applicable amounts.  For rates, it is 20 per cent of the same excess figure.

5.4.1 Example

Robert and Pat, aged 30 and 32, have two children aged seven and five. Robert is unemployed with no source of income. Pat is working 20 hours a week and takes home £106.55 (gross wages £130.00). The family receives Child Benefit of £33.20, WTC of £69.58 and CTC of £96.32. The couple's rent and rates are £60 and £15 respectively. The family members are all in good health.

Calculate Housing Benefit

Income exceeds applicable amount by £48.33.

Entitlement to Housing Benefit is £33.92 a week.

They will pay   £41.08 rent and will be assessed under the Rate Relief Scheme for further help with rates (see section 14).

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6. PEOPLE AGED 60 AND OVER

This section applies to people who are aged 60 or over, are not claiming JSA(IB) and do not have a partner claiming Income Support, JSA(IB) or Income-related ESA. These rules differ from those which apply to other people claiming Housing Benefit. They are also more generous.

6.1 Qualifying conditions

The qualifying conditions outlined in section 1 also apply to people aged 60 or over with the exception of the capital rules.

6.1.1 Capital rules

The capital rules for people aged 60 and over and in receipt of the guarantee credit of PC (PC(GC)) are more generous as there is no limit to the amount of capital a person and/or partner can have and continue to be entitled to claim Housing Benefit. All the capital of the person and/or partner is ignored.

Where a person aged 60 or over is not in receipt of PC(GC), Housing Benefit will not be paid where a person and/or partner has capital over £16,000.

The first £10,000 in capital is ignored.

Tariff income is applied to capital between £10,000 and £16,000.  A person will be treated as having an assumed income of £1 for every £500 or part of £500 above £6,000.

The capital of a child/qualifying young person is ignored.

6.2 Claiming Housing Benefit

For people aged 60 or over and claiming PC, the process is as set out below.

A person aged 60 or over and not claiming PC must apply directly to the local NIHE district office or the local LPS office (if owner occupier).  The process outlined in section 2 applies.

Claims for Housing Benefit for people aged 60 and over who are not on JSA(IB) and do not have a partner on Income Support or JSA(IB) or Income-related ESA can be automatically backdated for three months providing all the conditions of entitlement are met throughout the backdated period. The rules in section 2 also apply here.

6.3 Extended payments

A person or partner aged 60 or over whose Income Support or JSA(IB) ceases because of claiming PC is entitled to an extended payment of Housing Benefit.  The rules are the same as for those under 60 as outlined in section 3.

6.4 Payments of Housing Benefit

Housing Benefit for people aged 60 and over is paid in the same way as for those under 60.  This is outlined in section 4.

A person has an ongoing duty to report changes in circumstances. A person claiming Housing Benefit and on PC is also legally obliged to report in writing:

In addition, a person who is only getting the savings credit of PC must report:

6.5 Calculating Housing Benefit

The calculation of Housing Benefit for a person aged 60 or over depends on whether s/he or partner is getting PC(GC) or not.

Housing Benefit for a person on PC(GC) is worked out by calculating maximum Housing Benefit in the same way as for those under 60 as outlined in section 5.1, with one addition.  As well as the circumstances outlined in section 5.1.1 where no deduction will apply for certain non dependants, no deduction will be made for any non-dependant who is a full-time student, where the person claiming or partner is 65 or over and neither partner is claiming JSA(IB) or Income Support.

Housing Benefit for a person or partner not in receipt of PC(GC)  is worked out in a broadly similar manner to that of a person or partner  not getting Income Support, Income-related ESA or JSA(IB). The four steps outlined in section 5 apply but there are clear differences in calculating applicable amounts, income and capital.

6.5.1 Step 1: calculate maximum Housing Benefit

Maximum Housing Benefit is 100 per cent eligible rent and 100 per cent eligible rates. This is worked out in the same way as for those on PC(GC) as outlined above.

However, if a person or partner is aged 65 or over and a non-dependant comes to live with her/him, the income of the non-dependant will be ignored for 26 weeks. Where a person has a non-dependant living with her/him and the income or circumstances of the non-dependant change, triggering a higher deduction, this will not be applied for 26 weeks.

6.5.2 Step 2: calculate applicable amounts

The calculation of a person’s applicable amount for people aged 60 and over is made up of:

The applicable amount includes personal allowances and premiums for partners and dependent children. 

However: 

6.5.2.1 Personal allowances

6.5.2.2 Premiums

The premiums and associated qualifying conditions for a person aged over 60 and not in receipt of PC(GC) are the same as those outlined in section 5.2.2 with some exceptions. The exceptions are that the family premium lone parent rate and the enhanced disability premium adult rates are not applicable.

Therefore only the following premiums can be included and added to personal allowances:

6.5.3 Step 3: calculate income

Where a person or partner aged 60 or over is not in receipt of PC(GC), income is calculated in much the same way as for PC. However, where a person and/or partner is in receipt of the savings credit of PC only, income is worked out differently (see 6.5.3.4).

In either case, the income of a child or qualifying young person is ignored.

6.5.3.1 Earnings

What counts as earnings and the calculation of earnings for a person aged 60 or over is similar to the earnings as outlined in section 5.3.1.  Any differences in the treatment of earnings are outlined below.

Earnings disregards

The four main levels of disregard of £25 or £20 or £10 or £5 as outlined in 5.3.1.2 apply. Additional disregards apply in certain circumstances. These are explained below.

A £20 earnings disregard also applies where a person or partner is aged 60 or over and s/he:

The standard earnings disregard of £5/£10/£20/£25 is increased by £16.85 under the same conditions as for those under 60 (see 5.3.1.2) and also where a person or partner is aged 60 or over and s/he is working at least sixteen hours a week and:

In the case of couples, the person who is disabled must work sixteen hours or more a week.

The standard earnings disregard is not increased by £16.85 and, instead, £16.85 of any WTC award is disregarded in exactly the same circumstances applicable to those under 60 in 5.3.1.2.

Relevant childcare charges of up to £175 if the person is paying for one child and £300 for more than one child per week can be offset against earnings when calculating Housing Benefit.  In certain circumstances, they can be offset against earnings plus WTC.  The rules are the same as for those aged under 60 as outlined in 5.3.1.2.

6.5.3.2 Other income

Some income is counted in full, some is partly disregarded and some is completely disregarded.

 Income counted in full 

 Income partly disregarded

Income disregarded completely

6.5.3.3 Income from capital

Where a person claiming or partner is aged 60 or over and has capital between £10,000 and £16,000, an income of £1 per week will be assumed for every £500 in excess of £6,000 (£10,000 if permanently in a care home).  The upper limit remains the same.

6.5.3.4 Income and savings credit only cases

Income for a person or partner who is only getting the savings credit of PC is worked out by:

6.5.4 Step 4: calculate entitlement to Housing Benefit

Entitlement to Housing Benefit is worked out in exactly the same way as for a person under 60, as outlined in section 5.4. It is calculated by comparing a person's applicable amount and income.

Where the applicable amount is greater than the income, then maximum Housing Benefit is payable (ie 100 per cent rent and 100 per cent rates minus any deductions for non-dependants, for fuel, meal and service charges).

Where income is greater than applicable amount, Housing Benefit is reduced below the maximum by means of a set taper. The taper for rent is 65 per cent of the amount by which income exceeds applicable amounts.  For rates, it is 20 per cent of the same excess figure. For further details see section 5.5.

6.5.4.1 Example 1

Lenny is 67 and lives alone in a Housing Executive house. He pays £55 rent and £8 rates weekly. His only income is his Retirement Pension of £95.25 per week and PC(GC) of £34.75. He has savings of £6,000.

Lenny is receiving PC(GC) and is automatically entitled to Maximum Housing Benefit.

Entitlement to Housing Benefit is £63.00 a week.  He will pay nothing in rent and rates.

6.5.4.2 Example 2

John and Sarah are aged 65 and 60.  They live together in a Housing Executive house. John receives a Retirement Pension of £95.25 per week and also receives Disability Living Allowance high rate care of £70.35.  Sarah receives Retirement Pension of £57.05 per week and £75.00 spousal maintenance weekly. The couple's rent and rates are £60 and £15 respectively.

Calculate Housing Benefit

Entitlement to Housing Benefit is £73.47 a week.

They will pay £1.53 rent and will be assessed under the Rate Relief Scheme for further help with rates (see section 14).

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7. RECOVERY OF OVERPAYMENTS

A person claiming Housing Benefit is legally obliged to report in writing changes in circumstances including:

A person may notify changes of circumstances by telephone (where the relevant authority has published a telephone number for this purpose) or by other means unless, in any particular case, the relevant authority decides otherwise.

Where information is not given or such information is incorrect or a mistake is made by an official body, a person claiming or any other person, an overpayment of benefit may result.

NIHE (or LPS) is entitled to recover all overpayments of Housing Benefit except where:

Decisions to recover an overpayment must be notified in writing and give specific information to the person. Failure to do so may render the overpayment irrecoverable. The period of overpayment should always be checked.

Where an overpayment of Housing Benefit has been or will be recovered by NIHE from a landlord, both the landlord and the tenant must be notified of the effect of the recovery on the tenant's obligations to the landlord.

Overpayments can be recovered from future payments of Housing Benefit or from other social security benefits (though not Child Benefit or Guardian's Allowance) where the recovery and calculation of overpayment resulted from a failure to disclose information or misrepresentation of information.

For a person on Income-related ESA, Income Support, JSA(IB) or PC, guidance from the Department for Social Development (DSD) suggests that the maximum amount that can be recovered is £9.75 a week. However, if the person has been found guilty of fraud, admitted fraud or agreed to pay a penalty, the maximum amount is £13.00 a week. The deduction can be increased by half of any earnings subject to a disregard. A smaller deduction can be negotiated if this is causing hardship. For a person not on Income Support, JSA(IB) or PC, the rate of repayment can be negotiated.

A person claiming Housing Benefit and on PC is legally obliged to report in writing:

In addition, a person who is only getting the savings credit of PC must report:

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8. BENEFIT FRAUD

Fraud can occur when a person deliberately misleads NIHE or the LPS, or fails to, or allows another person to fail to notify promptly a change of circumstances that could affect entitlement to benefit. There are three options available to NIHE and the LPS in relation to fraud, namely:

8.1 Formal caution

Caution is generally used for less serious offences. A person will be asked to attend a formal caution interview where s/he will be asked to sign a record admitting the offence and accepting the caution.

Accepting a caution means that a person will not normally be prosecuted. The caution may be cited in court where a person is successfully prosecuted for a further offence.

8.2 Penalty

A person can be offered the option of paying a penalty if:

The penalty is an additional 30 per cent of the recoverable overpayment caused by the offence. It is added to the amount of overpayment and recovered in the same way.

A person will be sent a notice setting out the broad terms of the penalty and will be invited to an interview to discuss acceptance of the penalty. A person does not have to make the decision to accept the penalty at the interview but will be allowed five days to make up her/his mind. Once a person has entered into an agreement to pay the penalty, s/he will have 28 days in which to change her/his mind.

Note: Acceptance of a formal caution or penalty will bring immunity from prosecution for the specified offences. However, a person may still be prosecuted for related offences such as an Income Support overpayment.

Acceptance of a formal caution or penalty is an admittance of guilt.  Caution or penalty should not be accepted just to avoid prosecution if the person did not commit the offence. A person will not automatically be prosecuted if s/he does not accept the formal caution or penalty. Prosecution will depend on the evidence that NIHE or the LPS has obtained.

8.3 Prosecution

Fraud is a criminal offence.  There are two main offences which can result in prosecution:

The maximum penalty in the Magistrates Court for the first offence is a £5,000 fine or three months in prison or both. For the second offence, it is six months in prison or a fine of £5,000 or both.  Where a case is tried on indictment in the Crown Court, the maximum penalty is an unlimited fine, seven years in prison or both. This is in addition to repayment of any overpayment that may have occurred.

8.3.1 Benefit sanctions

In addition to a fine, imprisonment and recovery of any overpayment, NIHE or the LPS can apply benefit sanctions.

If a person is convicted of one or more benefit offences in each of two separate proceedings and one offence is committed within five years of the conviction of another and the offences have not previously been taken into account, the following benefit sanctions will be imposed. This only applies to offences committed after the introduction of Fraud Legislation on 1 April 2002.

A person’s Housing Benefit will be reduced as follows:

The sanction will apply for thirteen weeks and can be applied to any claim for a sanctionable benefit within a three year period following the conviction.

If the person or a member of her/his family is entitled to PC(GC), Income Support or JSA(IB), no benefit sanction will be applied.

From April 2010 a 'one strike' sanction will apply where a first offence of benefit fraud results in a caution, administrative penalty or a caution.  The additional sanction is the reduction of benefit for 4 weeks as above.  This will be in additional to any recovery of overpayment or administrative penalty.  A claimant who accepts a caution or administrative penalty has a 4 week period in which to change his or her mind.  If a second or subsequent caution or administrative penalty is accepted then, a further four week sanction will apply.

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9. Restrictions on eligible rent

The rent used to work out a person’s entitlement to Housing Benefit may be restricted, ie reduced by NIHE, if s/he is a private rented sector tenant. This means that the Housing Benefit paid may not cover the contractual rent.  It may be possible to apply for discretionary housing payments if this happens, see section 9.7.

There are three sets of rent restriction rules.  These are:

9.1  Local Housing Allowance rules

Local Housing Allowance (LHA) rules were introduced in Northern Ireland for new claims from 7 April 2008.  If a person’s rent was restricted under other rules on this date, the old rules will continue to apply until there is a relevant change of circumstances such as a break in the Housing Benefit claim or a change of address.

There are exceptions to this rule and tenants affected should seek further advice before making the decision to move house.

9.1.1 Exempt groups

Tenants in the following categories are not subject to the rules on LHA:

9.1.2 Local housing allowance

The LHA is a standard amount of Housing Benefit which is set for listed sizes of properties in designated Broad Rental Market Areas (BRMA).

The size of the household and the age of the people in it will determine what size of property and what rate of LHA the household will be able to claim Housing Benefit for.  If there is a shortfall with the contractual rent the tenant will be liable to pay this.

See section 9.7 on discretionary payments.

9.1.3 Rate of local housing allowance

This will be the standard LHA for the Broad Rental Market Areas (BRMA) dependent on the size of the household and the number of bedrooms it is deemed under the rules to require.

A BRMA must be at least two distinct residential areas adjoining each other. It must be reasonable to expect a person to live within the BRMA considering access to facilities and services for health, education, recreation, personal banking and shopping and having regard to public transport.  It must include a variety of types of accommodation and tenancy.

9.2 Categories of dwellings

NIHE makes LHA determinations for the following categories of dwelling:

If notified that a claim is being made for a property with six or more bedrooms, NIHE will make a LHA determination as and when necessary.

9.3 Size criteria

The LHA will depend on the number of people in the benefit household. Special rules apply to young people under 25 and those in shared accommodation.  One bedroom each is allowed for:

No other type of room is taken into consideration.

A single person under 25 has a LHA based on a room in a shared house regardless of the type of accommodation s/he actually occupies.  This single room local housing allowance does not apply if the person qualifies for a Severe Disability Premium or is a care leaver under 22.

A person aged over 25 is allowed the LHA for self-contained one bedroom accommodation unless s/he actually lives in shared accommodation in which case the single room LHA will apply.

9.4 How the NIHE calculates the Local Housing Allowance

NIHE draws up a list of rents for private rented sector tenancies in the broad rental market area. The properties included should be in a reasonable state of repair and should have the relevant number of rooms.  NIHE must assume that no-one entitled to Housing Benefit has sought the tenancy and must disregard any amount that relates to the provision of ineligible services and facilities including the use of furniture.

The LHA for each category of dwelling is the median (middle) rent in the relevant list.  Where the LHA for a category is less than for a smaller category of accommodation then the LHA will be set at the same rate as that for the smaller accommodation.

9.5 Local reference rent rules

Before 7 April 2008, maximum rent for Housing benefit was calculated in the following way.

NIHE asked the LPS for advice in determining a claim-related rent, taking account of the property, its size and the tenant’s household.  The LPS calculated a local reference rent representing the mid-point of rents in a locality.  These figures were compared with the rent actually being charged to the person (the contractual rent). To work out the size of the dwelling allowed, the LPS allowed one bedroom or room suitable for living in for each of the following occupiers:

In addition, the following number of rooms suitable for living in was allowed:

The eligible rent was restricted to the lowest of:

9.6 Pre January 1996 rules

Some tenants still have their rents restricted under less harsh rules which applied before January 1996. These rules apply to claimants who have been continuously entitled to and in receipt of Housing Benefit since 1 January 1996 and still occupy the same accommodation as their home. Under these pre-1996 rules, NIHE can restrict the amount of rent eligible for Housing benefit where:

In looking at suitable alternative accommodation, NIHE must consider the nature and facilities of the alternative accommodation, bearing in mind the age and health of the person's family and whether s/he has security of tenure.  In this case, alternative accommodation is not suitable unless it will be occupied on reasonably equivalent terms.

Where the person or one of her/his family is aged 60 or more, or incapable of work, or is responsible for a child or young person, no deductions are made, unless:

Any rent restriction must be limited only to the amount that NIHE considers reasonable.

No restriction can be made within twelve months of the death of anyone who used to live in the person's accommodation and whose circumstances would have been taken into account in deciding whether or not to impose a restriction. Further, if a person or someone else in the household was able to meet the housing costs when first moving in, then no restrictions will apply for the first thirteen weeks unless the person previously received Housing Benefit in the last 52 weeks.

9.7 Discretionary hardship payments

Discretionary hardship payments are also available where eligible rent has been restricted.

NIHE has discretion to make additional payments of Housing Benefit where a person needs assistance with eligible housing costs.  This will generally be relevant to people claiming who are vulnerable because of ill health, disability or family issues. These are free standing payments made at the discretion of NIHE to help those with severe financial difficulties.

Claims for discretionary housing payments should be made to the relevant regional office.  A list of these is available on NIHE’s website, www.nihe.gov.uk. 

9.8  Other information about rents

If the LHA rules apply, a person can contact NIHE for information about the rate of LHA which will be paid to her/his household.  If the household requires five or more bedrooms according to the size criteria and no LHA has been set for that size of property, the person can ask NIHE to set a LHA for that size of property.

If local reference rent rules apply to a person, s/he can ask NIHE for a pre-tenancy determination to get an indication of what level of maximum rent NIHE would allow for the household and the property.

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10. TEMPORARY ABSENCES FROM HOME

If a person is temporarily absent from home, s/he can get Housing Benefit for up to either thirteen or 52 weeks depending on the circumstances.

The thirteen or 52 weeks should run continuously from the date the person leaves home. If a person returns during this period, even for relatively short spells (unless a prisoner on temporary release), the temporary absence begins again each time the person leaves.

In either case, there must be an intention to return home within thirteen or 52 weeks, and the accommodation must not be rented out to others. In the case of the 52 week rule only, a person can be away longer than this in exceptional circumstances, but payment is only made for 52 weeks.

The 52 week rule applies if the person falls into one of the following categories:

If a person does not come within one of the above groups, payment is limited to a maximum of thirteen weeks if temporarily absent from home, including where s/he is:

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11. STUDENTS

Special rules apply to students in Housing Benefit. With certain exceptions, full time students cannot claim Housing Benefit during their course (including summer holidays). The exceptions include:

Full time students who fall within these exceptions and who live in and pay for accommodation provided by their educational establishment, eg halls of residence, during a period of study are eligible for Housing Benefit in respect of payments made for such accommodation.

This also applies to part time students who are renting accommodation from their educational establishment but only if they would be eligible for Housing Benefit if they were full time students.

Couples where only one partner is a student can also claim Housing Benefit providing the person claiming is not the full time student.

The calculation of a student's entitlement to Housing Benefit is the same as for other people except for the application of different rules on treating income.

A student grant is taken into account in full, with the following disregards:

Student loans are treated as income but are subject to a weekly £10 disregard. NIHE will assume a maximum loan is being claimed whether or not it is actually taken up.

Access fund hardship payments from educational establishments are treated as voluntary payments and may be ignored or attract a £20 disregard, depending on what the payment is for.

If a loan and Access payment are both made, only one weekly disregard is applied.

Hardship loan payments payable to new entrants in higher education are also ignored.

Where a student rent deduction is made, an equivalent sum is deducted when calculating the person's income.

Special rules apply to student covenants. For more information see CPAG Welfare Benefits and Tax Credits Handbook.

Where a single person is 60 or over and not in receipt of JSA(IB), student grants and loans do not count as income. For a couple, if the person claiming or her/his partner is 60 or over and neither is in receipt of Income Support or JSA(IB), student grants and loans received by either member of the couple do not count as income.

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12. CHALLENGING DECISIONS

A person with the right of appeal against a decision must be notified in writing of the decision, her/his right to appeal against it and the right to request from NIHE a written statement of reasons for the decision.  NIHE should provide that statement, so far as is practicable, within fourteen days.

It is possible to apply for revision or supersession of a Housing Benefit decision or to appeal against it to an appeal tribunal. Decisions of appeal tribunals can be appealed on a point of law to the Social Security Commissioner.

For full details of decision making and appeal arrangements, see Law Centre (NI) Encyclopedia of Social Welfare Rights A.9 Decision Making and Appeals. 

In outline, the basic rules are as follows.

12.1 Revision

The main provisions are:

Revisions cannot be made during the dispute period on the grounds of a change of circumstances. Instead there must be a supersession (see 12.2).

Where a decision is replaced on revision, the new decision takes effect from the same date as the old one. A request for a revision must be made in writing.

12.2 Supersession

The rules on Housing Benefit supersessions are similar to those for other benefits.  Supersessions can be made at any time but specified grounds must be satisfied.

The main supersession grounds are:

Supersessions will generally take effect from the date that the supersession decision is applied for (or, if instigated by NIHE, when it is made).  Exceptions apply in the following situations:

A request for supersession must be made in writing.

12.3 Appeals

An appeal must be made within one month of the date of notification of the decision.  Late appeals can be accepted up to thirteen months after the date of notification but only if specified grounds are satisfied.

If a written statement of reasons is requested, the one month period is calculated from the date of receipt of the request by NIHE to the date the statement is provided.

Appeals have to be in writing on an official form, although NIHE can accept a written appeal not on a form.  The appeal must be signed by the person appealing, contain particulars of the grounds of the appeal and enable the decision appealed against to be identified.  A person not meeting those requirements may be given fourteen days to do so.  Decisions should normally be reconsidered on receipt of an appeal.

Housing Benefit appeals will usually be heard by a single legally qualified panel member.  The main exception is where there is an issue of financial difficulty, in which case a financially qualified member will join the tribunal.

A person can choose between an oral or paper based appeal hearing.  If s/he wishes to opt for an oral hearing, s/he must notify the tribunal clerk on the appropriate form within fourteen days of the date of receiving the form.

There are no strict rules of procedure except that the rules of natural justice should be followed and all parties should receive a fair hearing from an impartial tribunal.

Housing Benefit appeal decisions are subject to withdrawal, striking out and reinstatement, notification, correction, set aside in the same way that appeal decisions for other benefits are.

An appeal from a tribunal's decision can be made to a Social Security Commissioner.  A full written statement of reasons for the decision must be sought within a month of the decision being notified.  Leave to appeal to the Commissioner must be sought from the chairperson within a month of the date the written statement of reasons was sent to the person.

If leave is granted, the grounds for appeal must be based on the tribunal having erred in law in making its decision.

Where leave is refused, a direct application for leave can be made to the Commissioner within one month of the date notification was sent refusing leave.

The Schedule to the Housing Benefit Regulations (NI) 2006 sets out decisions against which no appeal will lie.  In guidance, these decisions are described as administrative, but they include decisions to restrict rent following an assessment by the LPS.

Full details of appealing to the Commissioner are contained in Law Centre (NI) Encyclopedia of Social Welfare Rights A.9 Decision Making and Appeals.

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13. OTHER ASSISTANCE

A person receiving Housing Benefit may be entitled to a Social Fund Funeral Payment.

It also may be possible to claim free prescriptions, free or reduced cost dental treatment, sight tests, glasses and fares to hospital if income is low enough. Getting Housing Benefit does not of itself automatically qualify a person for these health benefits.

A person entitled to less than maximum Housing Benefit for rates (including none) because of excess income, may be entitled to help with rates under the new Rate Relief Scheme outlined in section 14.

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14. Rates in NORTHERN IRELAND

14.1 Rate reform

From 1 April 2007, rates bills for domestic properties are based on individual capital values.

Rates bills are calculated by adding together the 2009/2010 regional rate and district rate then multiplying it by the capital value of the property. The regional rate is set by government and the district rate by each local council, usually during February each year.

The LPS is responsible for administering the new rating system, determining the capital value for each property and administering certain Rate Relief Schemes.

14.2 Capital values

The capital value of a property is defined as the price a property might reasonably be expected to fetch on the open market if it had been sold on 1 January 2005, subject to a maximum cap.  If a domestic property had a capital value of more than £400,000 at 1 January 2005 then the capital value is automatically capped at £400,000. In working out the capital value, LPS takes account of sales evidence from the housing market and makes a number of assumptions.

These include that each property:

It is intended that revaluations of capital value will take place every five years. The next revaluation should take place in 2012. Capital values will therefore remain the same until 2012 unless there has been a change in circumstances.

Transitional relief is only provided in certain circumstances. This will be provided automatically over a three year period but only where a person’s rate bill for 2007/2008 increased by more than 33 per cent over what it would have been for that period if the previous system had been maintained.

If a person’s rates bill increased by more than 33 per cent in 2007, the year in which the new scheme was introduced, s/he benefits from transitional relief as set out below:

From 1 April 2010, ratepayers will have to pay the full amount of the rates bill unless eligible for relief or assistance under the various schemes set out below.

14.3 Assistance with rates

Assistance with rates is provided by way of:

The Housing Benefit and Rate Relief Schemes are means tested. They are separate schemes.

Please note: The scheme offering rate relief for full-time students, trainees and certain groups of young people for new applicants has been closed from December 2009.  Under these arrangements those currently benefiting from the scheme may continue to do so until 2011 if they continue to satisfy the conditions of entitlement.

14.4 Lone pensioner allowance

Lone Pensioner Allowance (LPA) is a non-means tested scheme, which was introduced in April 2008 to assist some pensioners with their needs.

Under the LPA scheme, a person is entitled to 20 per cent discount on her/his rates if s/he is:

14.5 People with disabilities

A Disabled Person’s Allowance will provide help in the form of a reduction in rates where a person with a disability meets certain conditions.  If the rated occupier or a person in her/his household is a person with a disability and meets the conditions of the scheme, s/he may be entitled to a reduction of 25 per cent in her/his rates bill.

A person qualifies for a Disabled Person’s Allowance if:

The adaptation required must be of either essential or major importance to the person’s well being because of the nature and extent of the disability. Supporting medical evidence may be required. There must be a clear link between the disability and how the property has been adapted.

Transitional protection is available for those who under the previous scheme were getting more than a 25 per cent reduction in rates. They will continue to receive this higher level of relief.

LPS administers this allowance for both owner-occupiers and tenants. A person claiming Disabled Persons Allowance will be issued with a separate form which should be returned to The Disabled Persons Section, Rate Collection, LPS in Belfast.

14.6 Full-time students, trainees and young people

Certain groups of people are entitled to full Rate Relief and therefore have to pay nothing. The scheme has closed for new applicants from December 2009.  Those currently benefiting from the scheme may continue to do so until 2011 if they continue to satisfy the conditions of entitlement.

Full Rate Relief is provided where a person is:

S/he must occupy the dwelling as her/his principal residence (for not less than 24 weeks a year or six weeks in any quarter) and either live alone or live in a property where everyone else falls into one of the above categories.

Designated courses include full-time:

An approved course of training is one provided by an institution under arrangements made by the Department for Employment and Learning under Section 1 of the Employment and Training Act (Northern Ireland) 1950 which:

LPS administers this form of assistance. In order to qualify for this assistance, all occupants of a property must complete and sign a common application form and return it to LPS Rating Services, Housing Benefit Central Unit, Londonderry House,   21-27 Chichester Street, Belfast BT1 4JB. Ratepayers or landlords can apply on behalf of their tenants. Documentary evidence will be required to confirm eligibility.

This scheme has been under review and is likely to be abolished in the near future.

14.7 Rate Relief Scheme

Rate Relief is a means tested scheme providing help with rates. It is additional to any help with rates provided under Housing Benefit.

It can be claimed by people who are liable to pay rates, either as owner occupiers or tenants, and who are entitled to less than maximum Housing Benefit for rates (including where entitlement is nil) or would be entitled to such if they claimed.

The Rate Relief Scheme is administered by NIHE for tenants and LPS for owner occupiers.

More generous rules apply to people claiming Rate Relief who are aged 60 and over, are not claiming Income Support or JSA(IB) and do not have a partner claiming Income Support or JSA(IB) (see section 14.6.5).

The Rate Relief rules on extended payments and challenging decisions are generally similar to those for Housing Benefit. Any overpayment of Rate Relief is recoverable but cannot be recovered from social security benefits.

A Rate Relief week is a period of seven consecutive days starting on a Monday and ending on a Sunday.

14.7.1 Who can claim?

A person is entitled to Rate Relief if from 1 April 2009 where:

Where one member of a family is entitled to Rate Relief, this entitlement excludes any other member being entitled to Rate Relief for the same period.

14.7.2 Claiming Rate Relief

A person who wishes to claim Rate Relief should complete a joint application form for Housing Benefit and Rate Relief. However, the relevant authority may decide to treat a letter or written communication as being a valid claim.

Where a person claims Rate Relief within one month of receiving a decision on her/his claim for Housing Benefit, Rate Relief will start from the first day of Rate Relief week corresponding to the benefit week from which s/he is entitled to Housing Benefit.

The legislation provides for claims for Rate Relief by electronic communication (eg email) where this has been authorised by a direction of the relevant authority.

14.7.3 Payment of Rate Relief

Rate Relief for tenants is paid by NIHE. Rate Relief for owner occupiers is paid by the Rating Division of LPS.  NIHE or LPS may pay Rate Relief in the manner it considers appropriate using one or a combination of the following methods:

14.7.4 Calculating Rate Relief

The calculation of Rate Relief is broadly similar to the calculation of Housing Benefit with two significant differences. The taper figure to be used on excess income is twelve per cent and any Housing Benefit entitlement for rates is deducted.

There are five steps to calculating Rate Relief:

Step 1:   calculate maximum Rate Relief;

Step 2:   calculate the person’s applicable amount for Rate Relief;

Step 3:   calculate the person’s income for Rate Relief;

Step 4:   compare income with applicable amount;

Step 5:   deduct any Housing Benefit for rates.

If income is less than applicable amount, maximum Rate Relief is applicable.

Where income is greater than applicable amount, apply taper to excess income to reduce maximum Rate Relief. Then deduct any entitlement to Housing Benefit for rates from the figure in step 4 above to arrive at Rate Relief entitlement.

14.7.4.1 Step 1:  calculate maximum Rate Relief

Maximum Rate Relief is 100 per cent eligible rates for a week minus any deductions for non dependants. This is worked out in the same way as for Housing Benefit as outlined in section 5.1.1.

14.7.4.2 Step 2:  calculate applicable amount

This is worked out in the same way as for Housing Benefit as explained in 5.2.

14.7.4.3 Step 3:  calculate income

This is worked out in the same way as for Housing Benefit as detailed in 5.3.

14.7.4.4 Step 4:  compare income with applicable amount

Compare a person’s applicable amount and income.

If income is less than applicable amount, maximum Rate Relief is applicable.

Where income is greater than applicable amount, calculate the amount by which income exceeds the applicable amount.  This is called excess income.  Apply taper to excess income.  The taper is set at 12 per cent.  Calculate 12 per cent of excess income (the taper amount).  Rate Relief is then reduced by the amount of the taper.

14.7.4.5 Step 5:  calculate Rate Relief entitlement

To arrive at Rate Relief entitlement, deduct the weekly amount of any Housing Benefit entitlement for rates from the final figure in step 4.

Where a person has not made a claim for Housing Benefit for rates, an amount equivalent to what her/his entitlement would be if s/he claimed will be deducted instead.

14.7.4.6 Example

Robert and Pat aged 30 and 32 have two children aged seven and five. Robert is unemployed with no source of income. Pat is working 20 hours a week and takes home £106.55 (gross wages £130). The family receives Child Benefit of £33.20, WTC of £69.58 and CTC of £96.32. The couple’s rent and rates are £60 and £15 respectively. The family are all in good health. Housing Benefit entitlement for rates is £5.33 weekly as outlined in 5.4.1.

Step 1: Maximum Rate Relief

100% eligible rates                    £15.00

Step 2: Applicable amount

Personal Allowances

Couple                                      £100.95

Child one                                  £56.11

Child two                                  £56.11

Premiums

Family premium                         £17.30

Total applicable amount            £230.47

Step 3: Income

Net earnings

(ie £106.55 minus £10 standard

earnings disregard and £16.85

additional 30/16 hour disregard)      £79.70            

WTC                                             £69.58

CTC                                              £96.32

Child Benefit                                 £33.20

Total Income                                £278.80

Step 4: Compare applicable amount with income

Income exceeds applicable amount by £48.33.

(a)  apply taper to excess

     12% of £48.33                             £5.80

(b) deduct from maximum Rate Relief

 £15.00 minus £5.80                       £9.20

Step 5: Deduct Housing Benefit entitlement for rates from figure in step 4

£9.20 minus £5.33 (Housing Benefit for rates) = £3.87

Entitlement to Rate Relief is £3.87.

This is paid in addition to Housing Benefit for rates of £5.33.

Total assistance with rates is £9.20.

They will have to pay rates of £5.80.

14.7.5 Rate Relief for a person aged 60 and over

This section applies to people who are aged 60 or over, are not claiming JSA(IB) and do not have a partner claiming Income Support or JSA(IB). These rules are similar to those which apply to other people claiming Rate Relief with some exceptions.

The capital rules for people aged 60 and over and in receipt of the guarantee credit of PC (PC(GC)) are more generous. There is no limit to the amount of capital a person and/or partner can have and continue to be entitled to claim Rate Relief. All the capital of the person and/or partner is ignored.

Where a person aged 60 or over is not in receipt of PC(GC), Rate Relief will not be paid where a person and/or partner has capital over £50,000. 

The adult personal allowance included in the applicable amount is higher. The personal allowances are:

Otherwise the calculation of Rate Relief for a person aged 60 and over, who is not claiming JSA(IB) and does not have a partner claiming Income Support or JSA(IB)  is worked out in exactly the same way as for those under 60. The Housing Benefit rules applicable to those over 60 apply to the steps of the calculation.

14.7.5.1 Example

John and Sarah are aged 65 and 60.  They live together in a Housing Executive house. John receives a Retirement Pension of £95.25 per week and also receives Disability Living Allowance, high rate care of £70.35.  Sarah is in receipt of Retirement Pension of £57.05 per week and £75.00 spousal maintenance weekly. The couple's rent and rates are £60 and £15 respectively. Housing Benefit entitlement for rates is £14.64 weekly as outlined in 6.5.4.2.

Step 1: Maximum Rate Relief

100% eligible rates                            £15.00

Step 2: Applicable amount

Personal allowances

Couple                                            £248.05

Premiums                                        nil

Total applicable amount                  £248.05

Step 3: Income

Step 4: Compare applicable amount with income

Income is less than applicable amount. If income is less than applicable amount, maximum Rate Relief is applicable.

Step 5: Deduct Housing Benefit entitlement for rates from figure in step 4

£15.00 minus £14.64 (Housing Benefit for rates) = £0.36

Entitlement to Rate Relief is £0.36.

This is paid in addition to Housing Benefit for rates of £14.64.

Total assistance with rates is £15.00.

They will have to pay nothing towards rates.

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15. FURTHER INFORMATION

Housing Benefit and Council Tax Benefit Legislation, 22nd Edition, CPAG, 2009/20010, £99.00 (including supplement). *

Welfare Benefits and Tax Credits Handbook, 11^th Edition, CPAG, 2009/2010, £37.00.*

Housing Benefit Guidance Manual, the Stationery Office, Belfast.

*Both available from CPAG, 94 White Lion Street, London N1 9PF. Use both carefully as Housing Benefit in Britain is different from Northern Ireland.

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 © Law Centre (NI) January 2010

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