Housing Benefit and WTC

socrates

I have a tenant who is living at one of properties in LB of Hackney

I am being paid directly (every 4 weeks) for this tenant as at the beginning of his tenancy he went 8 weeks into arrears

Every month a week or so before the payment is due I receive two Reviews for Housing Benefit - they are both for different figures both dated on the same day

One of them is for the full amount - in line with LHA Calculator

The other is for £26.24 a week less - and it seems that the lower amount eventually ends up getting paid

There was a discretionary payment earlier in the year - do not know if this makes a difference?

The tenant works 16 hours a week on minimum wage - as far as I knew this entitled them to full HB

He is also in receipt of CTC and WTC

Hackney cannot tell me why this is happening they just say that the computer comes up with the figures and the paperwork

Does anyone have an explanation - thanks in advance.....

Caz3121

How large is the property and is your tenant over 35?
If under 35 they would only get the shared accommodation rate

socrates

Caz3121 wrote: »

How large is the property and is your tenant over 35?
If under 35 they would only get the shared accommodation rate

Sorry forgot to mention he has a child - I guessed CTC covered that but could have been taken as Council Tax by some

Caz3121

Sorry missed the but about child tax credits.

So, assuming he is the main carer of the child then they would be assessed at the 2 bedroom LHA rate. The housing benefit would be reduced by income and they will include their tax credits...at an estimate the tenant has about £240 per week income from wages and tax credits and by running through the benefits calculator this reduces their housing benefit to £270 per week (from £296) so they would be expected to pay the difference from their income

socrates

Caz3121 wrote: »

Sorry missed the but about child tax credits.

So, assuming he is the main carer of the child then they would be assessed at the 2 bedroom LHA rate. The housing benefit would be reduced by income and they will include their tax credits...at an estimate the tenant has about £240 per week income from wages and tax credits and by running through the benefits calculator this reduces their housing benefit to £270 per week (from £296) so they would be expected to pay the difference from their income

It struck me - looking from the outside in that this tenant really would be better off not working at all - besides what he has to give me and some small contribution to Council Tax and child care costs during school holidays - he is probably worse off

Dogger69

socrates wrote: »

It struck me - looking from the outside in that this tenant really would be better off not working at all - besides what he has to give me and some small contribution to Council Tax and child care costs during school holidays - he is probably worse off

Or maybe they could look for more hours, rather than working the absolute minimum at which to maximise their benefit entitlement?

Caz3121

socrates wrote: »

It struck me - looking from the outside in that this tenant really would be better off not working at all - besides what he has to give me and some small contribution to Council Tax and child care costs during school holidays - he is probably worse off

In this scenario, possibly not
He would lose £100 per week wages to be replaced with £71 JSA so £29 down
working tax credits would go so child tax credits would be around £62 so around £78 down

so overall income would be reduced by over £100 per week which is likely less than the rent and council tax top-up

(child tax credits do pay a % of the childcare)

If the child is over 5 he does not have the choice not to work, if he claims JSA he needs to search for and be available for work, will be sent on courses etc and if does not comply will not be entitled to job seekers allowance

Many people work the magic 16 hours as they are better off than not working....and choose not to work more than this as they would then lose benefits

socrates

Can I ask you another question?

I heard it is possible for a claimant - single mother with four sons under 10 to get more than the maximum 3 bedroom allowance I was told they got some kind of bonus around £25-30 a week on top of their LHA

socrates

Caz3121 wrote: »

Sorry missed the but about child tax credits.

So, assuming he is the main carer of the child then they would be assessed at the 2 bedroom LHA rate. The housing benefit would be reduced by income and they will include their tax credits...at an estimate the tenant has about £240 per week income from wages and tax credits and by running through the benefits calculator this reduces their housing benefit to £270 per week (from £296) so they would be expected to pay the difference from their income

Another reduction today by another £37 for the 4 weeks

harrys_dad

I am surprised that the Council will talk to you about someone else's Housing Benefit, even if it is paid directly to you. If HB does not meet the full rent then the tenant needs to pay the difference to you directly.

socrates

harrys_dad wrote: »

I am surprised that the Council will talk to you about someone else's Housing Benefit, even if it is paid directly to you. If HB does not meet the full rent then the tenant needs to pay the difference to you directly.

I have full permission to discuss the claim - provided by the tenant

I will not accept HB tenants on any other basis

The topic is based around an equation that keeps changing on a monthly basis when exactly the same figures are being used to calculate it