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pensioner & housing benefit
johnminnitt
Posts: 4 Newbie
At the moment someone on full state pension (c£633 per 4 weeks) can also receive housing benefit towards rent on top of that (here about £90 a week).
However I have read that housing benefit is being abolished, and combined within universal credit. However isn't universal credit a working-age benefit, so what of the person of pension age?
If the 'allowed income' for one person under universal credit (c£80/week) were applied to them, then wouldn't nearly half of the pension have to go to rent?
However I have read that housing benefit is being abolished, and combined within universal credit. However isn't universal credit a working-age benefit, so what of the person of pension age?
If the 'allowed income' for one person under universal credit (c£80/week) were applied to them, then wouldn't nearly half of the pension have to go to rent?
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Comments
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A person of pension age will claim Housing Benefit as they will not be eligible for Universal Credit.
Housing Benefit is being abolished for pensioners and they will claim Housing Credit with help towards rent.I enjoy flower arranging, kittens, devil worship, the study of serial killers and their methods and road kill jigsaws.0 -
Afraid_of_Kittens wrote: »Housing Benefit is being abolished for pensioners and they will claim Housing Credit with help towards rent.
But there is no timetable for this to happen yet. It seems possible it will not be until roll out of UC and migration of all working age claims is complete in which case it will a few years yet.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
Thanks, but is anything known yet about how the calculations/amounts of housing credit will compare with the current situation. Could it be as much less as suggested in my original post (ie using the low universal credit 'personal allowance')? That would make someone, like the example I gave (probably my own situation in a few years) about £300 a month worse-off.0
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johnminnitt wrote: »Thanks, but is anything known yet about how the calculations/amounts of housing credit will compare with the current situation. Could it be as much less as suggested in my original post (ie using the low universal credit 'personal allowance')? That would make someone, like the example I gave (probably my own situation in a few years) about £300 a month worse-off.
Without a crystal ball who knows.I enjoy flower arranging, kittens, devil worship, the study of serial killers and their methods and road kill jigsaws.0 -
johnminnitt wrote: »Thanks, but is anything known yet about how the calculations/amounts of housing credit will compare with the current situation. Could it be as much less as suggested in my original post (ie using the low universal credit 'personal allowance')? That would make someone, like the example I gave (probably my own situation in a few years) about £300 a month worse-off.
As previous post says - nobody knows.
However I think you may have misunderstood how UC works. The personal allowance is Only part of the calculation. There is a separate housing element within UC which replaces Housing Benefits and is essentially the same (other than being calculated on a monthly basis rather than a weekly basis).
Old benefits have personal allowances at the root of benefit entitlement calculations and under old style benefits the allowances are higher for pensioners than for working age people. UC allowances are essentially similar to old style benefits and the assumption, at this stage, is that personal allowance for the future Housing Credit will reflect existing pensioner allowances and therefore there will be no difference financially.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
personal allowance as you aid is for working age people, not pensioners.
in today's benefit, applicable amount is about the same per week for single working age person, then HB and Council tax allowance comes in.
Pensioner is £167 odd a week, plus HB and should be no C/Tax liability
so under UC will be pretty much the same once everything is migrated - based on age and situation, the Personal allowance should be roughly the same pw as it is now, around the £167 mark.
UC will not make them worse off, but plenty of time for rules to change again
hope that makes sense?0 -
One difference between the housing element of UC and Housing Benefit is that other non dependent adults are often expected to contribute less towards the rent than under Housing Benefit. UzC is actually more generous than HB I this regard. In some cases people who would have got no HB will get help with rent under UC.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0
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One difference between the housing element of UC and Housing Benefit is that other non dependent adults are often expected to contribute less towards the rent than under Housing Benefit. UzC is actually more generous than HB I this regard. In some cases people who would have got no HB will get help with rent under UC.
Non dependent deductions for Housing costs is a fixed amount under UC with the usual exemptions:
https://www.turn2us.org.uk/Benefit-guides/Universal-Credit-housing-costs-tenants/Housing-costs-contributions0 -
pmlindyloo wrote: »Non dependent deductions for Housing costs is a fixed amount under UC with the usual exemptions
Yes, that is my point. The fixed amount is much less than applied under HB if the non-dependants were working. The UC monthly deduction is less than often applied HB/week. That is why I say UC can be more generous than HB.
The full comparison is:
Non-dependant's weekly!income before tax
Amount deducted from Housing Benefit
Income less than £139 £15.25/week (£66.08/month)
Income from £139 and less than £204 £35.00 (£151.67)
Income from £204 and less than £265 £48.05 (£208.21)
Income from £265 and less than £354 £78.65 (£340.81)
Income from £354 and less than £439 £89.55 (£388.05)
Income from £439 £98.30 (£425.96)
Non dependant deduction under UC flat rate £72.16
In all but the lowest case therefore the UC deduction is less than under HB and, as I said, someone who might have got no Housing Benefit due to non-dependant deductions may now get help with housing costs through UC.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
Yes, that is my point. The fixed amount is much less than applied under HB if the non-dependants were working. The UC monthly deduction is less than often applied HB/week. That is why I say UC can be more generous than HB.
Interesting amount chosen. Would have to take into account those on means tested benefits (over 21) as they would lose more but strange for those earning a substantial amount to only have to, in theory, pay very little. (I know they are not liable and it is a reduction for the tenant). Perhaps they are taking into consideration those having to live at home for longer and making it easier for them to save for a deposit for a house.0
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