Is this right? (Housing Benefit)

Justy

My brother (over 25), who has recently signed on, and is in receipt of JSA, with virtually no savings, has decided he wants to move from our small town in Hampshire to central London because that's where the industry he wants to work in is based and where his friends and girlfriend are.

He's found himself a 1 bed flat in Victoria for £330pw. He has asked me to lend him the deposit, but assures me that that's all he'll need as the Local Housing Allowance will cover all the rent.

I've checked the Rent Service figures and the LHA does indeed go up to £370pw for central London.

However, I need to be sure that he's not tying himself to a tenancy agreement if there's a risk he won't get Housing Benefit - especially as I intend to act as guarantor for him.

1) Is he entitled, as a single person over 25 to rent a whole 1 bed flat to himself - as opposed to a studio flat or bedsit or room in a shared house?

2) Are there any rules about relocating to new Local Authorities when making an HB claim?

3) Can he ask the Benefits people to NOT contact the landlord/letting agency - as they obviously don't want HB claimants?

4) If people can just upsticks and rent 1 bed flats in SW1 postcodes to themselves, why aren't more people doing it (especially the homeless on the streets)?!

Eager_Elephant

Hi Justy

To answer your questions in order.

1. Yes for people over 25 they are entitled to the 1 room rate so they can rent whatever they like, he could even rent a 5 bedroom house and top up the rest himself.

2. No rules about moving between authorities

3. Under new LHA rules payment is made to claimants only so they won't receive letters. There is also a question about notifying your landlord, obviously he can tick no and they won't be able to.

4. Well where would a homeless person get a deposit from? Would their benefits cover all the bills plus food - unlikely so maybe that's why not.

I assume your brother is receiving JSA, if he is he will get the full LHA rate unless his rent is cheaper which you said it is so he will in fact get £330 + £15 top up (because he is under the LHA rate - not really sure why they put this little clause in).

Obviously you know that if he is working then the LHA will be reduced accordingly?

EE

Oldernotwiser

I wonder if it occurs to him (or to you either) that he's going to have to find a job paying over £30,000 to be even a couple of pounds better off than he is on benefits?

anguk

Oldernotwiser wrote: »

I wonder if it occurs to him (or to you either) that he's going to have to find a job paying over £30,000 to be even a couple of pounds better off than he is on benefits?

That's what I was thinking. If he starts working it's going to cost him over £1300 a month in rent, plus he'll have to add on bills & travel expenses. My son has recently moved down to London to work, he's earning £22000 a year which isn't a bad for his age and he can only afford to rent a room in a flatshare.

Justy

Eager_Elephant - thank you very much indeed. Very helpful of you. :beer:

Oldernotwiser - I suspect that's a snidey little comment insinuating that he's a benefit careerist! However I'm not in the business of funding luxury lifestyles, even for my own brother, but given that he's just spent a year retraining himself (at his own cost) for a highly lucrative job with six-figure earning potential (after serving his country for 7 years) I'm prepared to make an investment in him. The State should too.

Has it occurred to you that people do earn more than £30k nowadays - especially in central London? Some jobs even go above £40k!