Confusion about Housing Benefit Change

Jinks

Hello everyone,

I'm new here but I've been lurking on and off for a while, so I hoped someone here might be able to help with a problem.

I got a letter today from Housing benefit saying that my HB will be dropping by almost half due to changes they made at the beginning of the year. I didn't know about the changes so this was a bit of a shock, but the letter stated it's not going to happen to the benefits I am paid until September (a year from when I first made my claim), so I have time to consider my options.

However, there is a potential complication for me. I just left my job to start out as self-employed (I literally left two days before the date of this letter - great timing there, guys). I haven't notified housing benefit of this yet. I'm expecting to be making about the same amount each month in my self-employment as I was in my previous job so I wouldn't have expected this change to affect the amount of my housing benefit claim. But now I don't know what happens if I go to them and say "OK, my circumstances have changed". Are they going to calculate that as a new claim and put me on the lower rate because that is the current rate? Or will they just make an adjustment to the information in the current claim and continue to pay me the higher amount until September?

Because if it's the former, that has very serious implications for me - the switch from employment to self-employment was something I planned carefully and saved for, and to suddenly have to absorb such a big income cut might mean I have to go and beg for my job back. There doesn't seem to be anything on their website to help me.

Thanks!

pmlindyloo

Jinks wrote: »

Hello everyone,

I'm new here but I've been lurking on and off for a while, so I hoped someone here might be able to help with a problem.

I got a letter today from Housing benefit saying that my HB will be dropping by almost half due to changes they made at the beginning of the year. I didn't know about the changes so this was a bit of a shock, but the letter stated it's not going to happen to the benefits I am paid until September (a year from when I first made my claim), so I have time to consider my options.

However, there is a potential complication for me. I just left my job to start out as self-employed (I literally left two days before the date of this letter - great timing there, guys). I haven't notified housing benefit of this yet. I'm expecting to be making about the same amount each month in my self-employment as I was in my previous job so I wouldn't have expected this change to affect the amount of my housing benefit claim. But now I don't know what happens if I go to them and say "OK, my circumstances have changed". Are they going to calculate that as a new claim and put me on the lower rate because that is the current rate? Or will they just make an adjustment to the information in the current claim and continue to pay me the higher amount until September?

Because if it's the former, that has very serious implications for me - the switch from employment to self-employment was something I planned carefully and saved for, and to suddenly have to absorb such a big income cut might mean I have to go and beg for my job back. There doesn't seem to be anything on their website to help me.

Thanks!

I am not sure what changes you are talking about

Perhaps you would be kind enough to give us some details.

Where are you living? Council house/social housing/private landlord. How many bedrooms?

Are you single, (age) married, children?

What is your current rent?

BigAunty

MSE have a good summary of the HB changes and how to cope with them.

http://www.moneysavingexpert.com/family/housing-benefit

I very much doubt that notifying them of a change of circumstance will have any impact on transitional protection with HB which I would think will take precedence but you really will need to detail the type of change that has slashed your HB.

Jinks

Hi guys,

Thanks for the responses. I am single, 30 years old, and living in a single bedroom rental accommodation. I pay £100/week in rent and currently receive £72.61/week in housing benefit due to low income.

The letter I received today states that, due to changes made at the beginning of the year, single tenants aged 25-35 are no longer entitled to claim for a one bedroom shared accommodation and are only entitled to claim the housing benefit rate for shared accommodation. This means my entitlement will drop to £42/week, meaning I am losing nearly £1600 per year. I'm shocked by just how big a cut this is (it seems the government are essentially saying they will no longer support single people under 35 living by themselves unless they share their housing - surely this will mean a huge influx of people 25-35 on a low income having to move back in with their parents).

Thanks for the link to the article, I will read it now. I really hope the protection period will take precedence but I don't know how this works or whether my change in working status will be considered a new application under the new laws.

Edit: I found my answer in the article.

Existing claimants: Post April 2008

"The changes will happen nine months from the year anniversary of your claim (since 1 April 2011, so the first existing claimants were affected from 1 January 2012).

However if your circumstances change this counts as a new claim and so the new rules will apply immediately."

So, apparently I'm expected to take an immediate, substantial drop in my income with no notice. I honestly don't know what to do about this - are they likely to take my circumstances into account (eg, I have just made a big change to my financial situation before being notified about this?).

sangio

Jinks wrote: »

It seems the government are essentially saying they will no longer support single people under 35 living by themselves unless they share their housing - surely this will mean a huge influx of people 25-35 on a low income having to move back in with their parents).

Yep that is the top and bottom of it. Singles under 35 should be sharers. It is ridiculous to have them in their own place when property of that type is needed by people in greater need ie couples and pensioners.

Going back home will stop all housing benefit!

Why go back home, why not house share? There is plenty of it around.

System

I am losing nearly £1600 per year

You are not losing anything, you are just not able to claim it.

pmlindyloo

There is such a thing as Discretionary Housing Payments;

See here:

http://england.shelter.org.uk/get_advice/paying_for_a_home/housing_benefit_and_local_housing_allowance/discretionary_housing_payments

However, looking at the possible reasons for getting it , it does look like you would probably not qualify. Worth asking though.

Your main problem is your change of circumstances. If you report them it will be treated as a new claim. However, I believe that you may get a 'run on' of a number of weeks at the old rate. Perhaps someone can clarify.

To be honest you need to be looking at raising your income if you want to remain in your current accommodation. Can you get a second job in the evenings say, while you are building up your self employment? or can you apply for another full time job?

Although I understand your dilemma in switching employment before you received your notification, I am afraid that this will not be seen as a reasonable 'excuse' by the housing department. These changes have been in the news for months. Not very helpful to you but just stating it from their position.

Having said all this I personally believe that the age of 35 years is set far too high.

If you have the time CAB is raising this issue (how single people are effected by the change) as a social policy issue so would be interested in your 'case'.

Jinks

Sangio, I wouldn't mind taking in a flatmate if I had somewhere to put them, but I live in a small one bedroom flat! Moving in with a parent actually isn't an option for me and I can't just move instantly - I have cats and finding a ground floor flat with a landlord who is tolerant of them is a bit of a needle in a haystack search. It's not the cut in benefits which bothers me, it's the fact that I have no notice to deal with it. I seem to have been caught in a snag in the system because of unlucky timing - I mean, they tell me TWO DAYS after I leave my job! If I had known I would have stayed there until September. Not honouring the cooling off period under that circumstance seems really harsh.

I do have some savings and will use them to stay where I am for the time being, but I saved the money so that I could start my own business, not so that I could pay my rent with it, and to say I'm upset by this is a big understatement.

Still, I have the answer to my question, and thank you to those who offered helpful advice, I appreciate it. It is probably a good idea to go to CAB for some advice.

cutestkids

In the real world rent or mortgage comes way before savings for any purpose and the luxury of leaving a job to go self employed is just not an option.

Why not get another part time job to fit around the self employed work that you do (evenings or weekends) and make enough to pay your rent without relying on benefits.

BigAunty

Do check directly with your council that you are definately affected by this change due to your move from employment into self employment. I'm sorry to hear if this minor change impacts your transitional protection as I'd expected it only to apply to new claims (such as moving to a new property) rather than reporting different income at the same address.

It's also a shame that your council appears not to have notified you of this change much earlier - this forum saw lots of queries when it was first announced by the govt and late last year/earlier this year as tenants started to receive letters from their council.

Dunroamin

Jinks wrote: »

Sangio, I wouldn't mind taking in a flatmate if I had somewhere to put them, but I live in a small one bedroom flat! Moving in with a parent actually isn't an option for me and I can't just move instantly - I have cats and finding a ground floor flat with a landlord who is tolerant of them is a bit of a needle in a haystack search. It's not the cut in benefits which bothers me, it's the fact that I have no notice to deal with it. I seem to have been caught in a snag in the system because of unlucky timing - I mean, they tell me TWO DAYS after I leave my job! If I had known I would have stayed there until September. Not honouring the cooling off period under that circumstance seems really harsh.

I do have some savings and will use them to stay where I am for the time being, but I saved the money so that I could start my own business, not so that I could pay my rent with it, and to say I'm upset by this is a big understatement.

Still, I have the answer to my question, and thank you to those who offered helpful advice, I appreciate it. It is probably a good idea to go to CAB for some advice.

I don't think that the suggestion is that you share your 1 bed flat but that you move into a flat/house share somewhere else!

I second the idea of getting a part time job to ease your transition into self employment.