MSE News: Thousands of tenants to get bedroom tax rebate

"A loophole means bedroom tax doesn't apply to certain renters who have lived in the same home for more than 17 years..."
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Thousands of tenants to get bedroom tax rebate

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  • rogerblack
    rogerblack Posts: 9,446 Forumite
    edited 10 January 2014 at 3:04PM
    This file goes into this in more detail.
    It is an analysis by a welfare officer of the relevant law that applies.

    http://www.rightsnet.org.uk/forums/viewthread/5654/ is the thread this was discussed in.

    The benefit cap is mentioned in passing.
    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/270159/benefit-cap-nov-2013.pdf

    Shows that well over half the households affected by the bedroom tax were single parents. (59%)
  • Morglin
    Morglin Posts: 15,922 Forumite
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    It's in today's Guardian and Independent -the claimants have got to be repaid, and no bedroom tax deducted.

    Tenants may even make a profit on this, as any discretionary payments they may have had apparently don't need to be repaid (can't post a link at the moment, but it's on their websites).

    The average amount to be refunded is £640.

    Lin :)
    You can tell a lot about a woman by her hands..........for instance, if they are placed around your throat, she's probably slightly upset. ;)
  • rogerblack
    rogerblack Posts: 9,446 Forumite
    One question that arises.
    Is that 640 pounds coming from local, or central government?
  • Only repaid if the tenant can prove they have been continuously in receipt of Housing Benefit at the property without a break since prior to 1st January 1996 - my Local Authority isn't actively trying to locate such claimants because our records don't go back that far. Neither are we going to write to everyone or publicise the loophole

    The DWP are actively trying to rush out changes to legislation to close this loophole.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
  • NYM
    NYM Posts: 4,066 Forumite
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    Only repaid if the tenant can prove they have been continuously in receipt of Housing Benefit at the property without a break since prior to 1st January 1996 - my Local Authority isn't actively trying to locate such claimants because our records don't go back that far. Neither are we going to write to everyone or publicise the loophole

    The DWP are actively trying to rush out changes to legislation to close this loophole.



    Does that mean that if they have not been claiming all that time, they won't get any rebate ?
  • nannytone_2
    nannytone_2 Posts: 12,978 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    abd what if they have claimed continuously since that time, but have moved properties withing the same housing authority?
  • NYM wrote: »
    Does that mean that if they have not been claiming all that time, they won't get any rebate ?

    It means exactly that.
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  • nannytone wrote: »
    abd what if they have claimed continuously since that time, but have moved properties withing the same housing authority?

    Yes on Housing Benefit continuously since 1st January 1996 and living in the same property - if they have moved - they lost this protection

    HB U1/2014 8 January 2014

    Contact Queries about thebulletin in general, contacthousing.benefitenquiries@dwp.gsi.gov.uk
    distribution of this bulletin, contact

    housing.correspondenceandPQs@dwp.gsi.gov.uk

    Who should read All Housing Benefit (HB) staff
    Action For information
    Removal of the Spare Room Subsidy

    Background

    The Department for Work and Pensions (DWP) is aware that there are a small number of claimants who may be entitled to have their eligible rent calculated pursuant to paragraph 4(1)(a) of Schedule 3 of the Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006 (Consequential Provisions Regulations) rather than the provisions which relate to the Removal of the Spare Room Subsidy (RSRS). The Department will however be taking steps to remedy this shortly.

    For these HB claimants the RSRS should not be applied if they under-occupy their property. Instead their eligible rent must be determined in accordance with regulations 12 and 13 as set out in paragraph 5 of Schedule 3 to the Consequential Provisions Regulations.

    For claimants to come within paragraph 4(1)(a) of Schedule 3 to the Consequential Provisions Regulations, they must have been continuously entitled to HB since at least 1 January 1996 and occupied the same dwelling since that date, save for any period where a fire, flood, explosion or natural catastrophe has rendered the property uninhabitable.

    Breaks in entitlement

    4. The provisions outlined above continue to apply if there has been a break:

    in entitlement of no more than 4 weeks
    of entitlement of no more than 52 weeks, if the claimant or their partner is a welfare to work beneficiary
    5. Note: it may be the case that the transitional protection has been inherited by a claimant and if so they should be treated the same.

    Identifying affected claimants

    6. Some claimants may already have contacted you about this and requested payment of arrears. However, many claimants will not be aware of this issue. You should therefore consider whether you are reasonably able to identify potentially affected claimants from your own records.

    7. However if this situation comes to light local authorities (LAs) should not revise awards unless they are satisfied on the basis of evidence that the claimant satisfies the criteria.

    Action to take with immediate effect

    8. Once LAs are satisfied that a claimant’s eligible rent should not have been reduced the existing decision must be revised to remove the under-occupancy reduction in the claimant’s HB from 1 April 2013 until the legislation is amended.
    9. This means that arrears of HB will be due from 1 April 2013 to the date of reassessment.
    10. You should also record details of affected cases so that once the legislation is amended they can be reassessed to reapply the under-occupancy reduction.

    Crown Copyright 2014

    Recipients may freely reproduce this bulletin.
    These are my own views and you should seek advice from your local Benefits Department or CAB.
  • rogerblack
    rogerblack Posts: 9,446 Forumite
    NYM wrote: »
    Does that mean that if they have not been claiming all that time, they won't get any rebate ?

    One wrinkle brought up is that claimants paid HB on a 2 week cycle are likely have had a continuous claim since the required date.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    There is no such thing as Bedroom Tax.

    I have a few spare bedrooms but don't pay any more tax.

    Please can we call a spade a spade.

    Thanks
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