Bedroom tax

Hi Louise

            All is well here thank you xxx

The bedroom tax will impact on anyone as you say of working age who is deemed to have 1 or more spare bedrooms, they take no account of a disabled child needing a room of their own which is ridiculous as as they take no account of a carer needing a bedroom or a single parent where the absent parent wants to have their children stay over they are not allowed a spare room unless they pay for it, the rates are going to be 14% for 1 spare room and 25% for 2, it is very worrying for so many families and I would urge everyone to check what their position will be come April 2013.

There are people who are willing to downsize but there simply are not enough available properties to move to, its going to get messy and there will be a massive increase in homelessness and people being put into B&B which when you consider the cost this is going to be a self defeating exersize.

I would also urge you all to try to find out what your council tax contribution might be again from April 2013, it seems there is little clarity on this as each council will set their own rules and as pensioners are exempt where you have a high proportion of emderly residents there is talk of the council tax bill for those on benefits being as high as 50%.

Louise it is ridiculous and with each day they seem to move the goal posts, trying to find out now IF the 2 year housing benefit rule under UC applies to everyone :(

This might help people to understand the bedroom tax a little better xxx

Housing benefit changes from 2013
This content applies to England only. Why is this important?
In April 2013, two major changes are being made to the benefits system that could mean you receive less housing benefit. These changes may affect you if you are council or housing association tenant, or if you rent privately.

Find out about new rules on homes that are 'under-occupied' and the benefit cap that will take effect from April 2013.

Contents
Housing benefit cuts if your home is too big
Will you be affected by the under-occupancy cut?
What will happen if you live in adapted accommodation
The benefits cap will limit total benefits from April 2013
Council tax benefits will be cut
What's the overall impact of these cuts?
Housing benefit cuts if your home is too big

From April 2013, council tenants and housing association tenants will have their housing benefit entitlement reduced if the council decides their home is too big for their needs. You may have heard this referred to as the under-occupancy rule, or 'bedroom tax'.

The amount of rent used to calculate how much housing benefit you're entitled to will be cut by a fixed percentage:

14% of the 'eligible rent' (the full rent amount) if you have one extra bedroom
25% if you have two or more extra bedrooms.
If you're a pensioner, this change won't affect you.

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Will you be affected by the under-occupancy cut?

Under the new housing benefit rules, the size of the home you can rent without being affected by this cut is:

1 bedroom for a couple
1 bedroom for a person aged 16 or over
1 bedroom for 2 children aged under 16 of the same sex
1 bedroom for 2 children ahged under 10 - boys and girls are expected to share a room)
1 extra bedroom if you or your partner needs an overnight carer to stay.
A severely disabled child who needs a room of their own may not be required to share a room. You should get advice from a welfare benefit adviser if your benefit is cut. Use our directory to find an advice service.

You won't be allowed to claim housing benefit for rooms above this limit that are used for:

foster children
couples who use separate bedrooms because of illness
children visiting a divorced or separated parent
disabled adults.
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What will happen if you live in adapted accommodation

Some disabled adults living in adapted or specially designed properties will face cuts in their benefits, but it will not be practical or affordable for them to move. Claim a discretionary housing payment if you are affected - extra funds have been set aside for people in this situation.

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The benefits cap will limit total benefits from April 2013

A new cap on the total amount of welfare benefits that can be claimed by any individual or family will be introduced from April 2013. Most benefits are counted, including housing benefit. The limits are:

£500 per week for families with children
£350 per week for individuals
You won't get anything above these limits, even if you're assessed as needing more.

Any benefits you receive that would take you above these levels will be deducted from your housing benefit. It will be up to you to make up any shortfall in your rent from the benefits intended to help with the ordinary costs of living - such as food, gas,electricity and so on. Use our budget calculator to work out where you might be able to make any savings, or see our section on help with housing costs.

You're most likely to be affected by the benefits cap if you have a large family - particularly if you live in an area with high rents, and you need a large home because of the number of children you have.

See our page on the benefits cap from 2013 to find out more about how you could be affected.

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Council tax benefits will be cut

Changes to council tax benefit from April 2013 may also affect you, especially if you have a family. You could see a cut in the amount of council tax benefit you get.

Council tax support will replace the current system of financial support for people paying council tax:

council tax benefit
council tax discounts, exemptions and reductions.
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What's the overall impact of these cuts?

The combined effect of these benefits cuts may mean that many council tenants and housing association tenants will consider trying to move to a smaller home.

In many areas, there won't be enough spare council or housing association properties of the right size to allow you to move. You could try to arrange a transfer or exchange locally, but may have to consider moving further away.

Remember that your first priority should always be to pay the rent, and avoid falling into arrears. You could lose your home if you don't. Use our budget calculator to see where your money is going, and find out if there's any way you can reduce your outgoings. You might be able to save some money by getting help with heating costs, or making your home more energy efficient.

Private tenants who claim local housing allowance (the name of the housing benefit for people who rent privately) usually pay more in rent and often have to deal with a benefits shortfall too.

You may be able to claim a discretionary housing payment from the council to make up any shortfall of housing benefit.