Jobseekers and Housing/Council Tax benefit entitlement

Legacy_user

Hello all, hopefully you can provide me with some information. First of all, some financial background info:

I've very recently moved to Cardiff after uni and am looking for work. I'm living in a 2-bedroom flat with a university friend who has a well paid job (£29k pa). It's a joint contract but he pays the rent for the flat (£650 per month) and I pay him my share (currently £250 per month as he's covering the rest while I'm unemployed). Local housing allowance is £240.

My jobseekers payments (going from before I moved up here, they're currently still switching me over and I've received no payments yet) are £56 per week. I have no savings whatsoever and neither do my family (so I can't rely on short term support from them) and I have almost no valuable belongings.


Right, question time... I've been reading on several council websites about Housing Benefit deductions (can't post links but a quick google for "housing benefit deductions" will show the pages), most of which seem to imply that if a friend in your household is earning greater than ~£400 per week (which mine is) you're entitled to effectively no Housing Benefit. I don't quite understand this; I obviously receive none of this money and without Housing Benefit I'd be unable to live. It also appears that there are similar deductions for people receiving Jobseekers/Council Tax Benefit.

Could anybody please clarify this? Are there any other benefits I'd be entitled to if this is the case? Currently, after utilities, I'm living off around £30 per week for food and groceries which is a bit of a struggle.

Thanks for any help.

pmlindyloo

You are certainly eligible for housing benefit if you are a joint tenant.

You would, however, only be entitled to the local housing allowance according to your age and status.


If you are single and under the age of 35 then you are only entitled to the shared rate. This is regardless of whether you are actually living in a one bed/two bed etc.


I suspect that you have the figure for the one bed allowance.


You will also be entitled to council tax benefit.


So, get searching for that job!

System

Thanks for that, that's eased some concerns.

Do you know if there's any way to make it clear I'm a joint tenant on the application forms (JSA3 and HCTB1)? Looking through both of them, it seems to only ask if the other member of the household pays money to me for rent, not vice versa.

BigAunty

housingbenefitenquiry wrote: »

Thanks for that, that's eased some concerns.

Do you know if there's any way to make it clear I'm a joint tenant on the application forms (JSA3 and HCTB1)? Looking through both of them, it seems to only ask if the other member of the household pays money to me for rent, not vice versa.

I expect the forms are trying to detect if the tenants are partners or related. If the tenants are in a relationship, the partners earnings are taken into account.

If the landlord and tenant (or lodger to be more specific) are closely related and live in the same property together, no housing benefit is payable to the lodger. This is because there is no HB liability in this instance - the lodger is expected to pay towards their keep to their mum or dad or brother or father in law, for example, out of their existing benefits, it's a family matter, no HB will be paid on top - relatives shouldn't charge each other commercial rent.

I also think that you are overcomplicating things or it appears more complicated because the other tenant is operating as the chief tenant or mesne (intermediate) landlord. Ultimately your rent is going to the landlord, not really him - your actual tenancy is with an external landlord even if your fellow tenant collects it. Is that the case?

BigAunty

housingbenefitenquiry wrote: »

... I've been reading on several council websites about Housing Benefit deductions (can't post links but a quick google for "housing benefit deductions" will show the pages), most of which seem to imply that if a friend in your household is earning greater than ~£400 per week (which mine is) you're entitled to effectively no Housing Benefit. I don't quite understand this; I obviously receive none of this money and without Housing Benefit I'd be unable to live. It also appears that there are similar deductions for people receiving Jobseekers/Council Tax Benefit.

Could anybody please clarify this?
.

You have totally mis-understood the situation. The only deductions from HB and CT are 'non-dependent deductions or a reduction if the tenants are in a relationship. living as man and wife or civil partners.

A non-dependent, as that council website should explain, is a grown up child or older parent, for example. It is about someone who was previously classed as a dependent for benefit purposes, such as child/parent relationships. It's nothing to do with friends at all.

The reason why there are non-dependent deductions is to save the tax payer money. If for example, a parent gets full housing benefit and full council benefit and one of their children leaves school and starts earning money, they should expect their now adult child to pay towards household expenses, therefore the parents benefits reduce.

Last time I checked (and that was very recently) even if a non-dependent (such as an adult child of the tenant) earns more than £400 a week, the deduction from their non-working parents CT and HB doesn't exceed more than £83 a week. It probably is steeper if the tenants are a couple rather than a non-dependent relationship.

Hope that is clearer now. I very much doubt that the information said if the relationship between joint tenants are that they are 'friends' it means the friend has to support the other, it should say 'couple, partner or non-dependent'.

pmlindyloo

Yes, I agree you are bit muddled because your housemate is currently paying the rent and you then pay him.

This is not relevant as regards your claim for HB


As a joint tenant you have a liability as regards the rent. Therefore because you are liable for rent then you are eligible for HB.


As regards the forms they can be confusing as you have found out!


So complete them as far as possible and take the documents asked for to the relevant department and ask for help.


As soon as they see the joint tenancy agreement they will be a able to advise you.