Welfare reform

If you receive Housing Benefit or Disability Living Allowance, you should be ready for changes the Government has brought in. These could affect both the way you receive benefit and the amount of benefit you are entitled to. There main issues, are:

Speak to someone about any of these issue

Universal Credit

The Government is changing the way a number of benefits are being paid by bundling them together into one payment. This new benefit is called Universal Credit and is now running in Bath & North East Somerset, Bristol and South Gloucestershire.

As part of the changes to the benefits system, benefits will be paid straight to you rather than to your landlord. You are then responsible for paying the rent for your home to us.

What benefits does Universal Credit replace?

Universal Credit replaces:

  • Housing Benefit
  • Jobseekers Allowance (Income based)
  • Employment and Support Allowance (Income based)
  • Income Support
  • Working Tax Credit
  • Child Tax Credit

If you receive any of these benefits then you will need to reapply for Universal Credit when the Government contacts you.

What is different about Universal Credit?

You will need to apply for Universal Credit online. It will be paid in one lump sum, once a month in arrears, into a bank account to one person in the household.
It will also include your Housing Benefit. This means that you will be responsible for paying your rent to us every week.

When will this change happen?

Universal Credit is now live in all of the areas where we have properties. Initially this has been for new claims for Jobseekers Allowance from single people, but will be extended to couples and families.

Under-occupation or bedroom tax

The Government has developed some guidelines about how many bedrooms people in social housing need in their homes. If you have too many bedrooms, your Housing Benefit will be reduced. Your rent will NOT be reduced, so if you are under-occupying, you need to think about how you will pay us the difference.

What is under-occupation?

The guidelines are that in a household:

  • A couple will be allowed a bedroom for themselves
  • A single person over the age of 16 will be allowed a bedroom for themselves
  • Two children under 10 will share a bedroom regardless of whether they are both boys or both girls
  • Two children over 10 but under 16 will share a bedroom if they are both boys or both girls

If you have one more bedroom than the guidelines say you need, your Housing Benefit will be cut by 14%.
If you have two more bedrooms than the guidelines say you need, your Housing Benefit will be cut by 25%.

When was the change introduced?

Bedroom tax was introduced in April 2013 for all social housing tenants. You could be affected at any point during your tenancy, depending on who is living with you, the size of your home and if you are still of working age.

Are there any exemptions?

The reduction in benefit will apply to everyone of working age. You are no longer classed as working age when you are eligible for Pension Credit. There are very few exemptions

Foster carers: The Government decided that foster carers will be allowed one extra room for foster children, as long as they have fostered a child or become an approved foster parent in the past 12 months.

Parents of children in the armed forces: If your teenage child lives at home but is away on operations with the armed forces you will not be charged the bedroom tax, as long as your child intends to continue living with you.

Shared custody of children: If you share custody of your children, their bedroom allocation will be at their main residence.

Disabled partner / child: An extra bedroom is currently only allowed for people who require an overnight carer.

You also won't be allowed to have a spare bedroom to use if you or your partner is recovering from an illness or operation.

I am under-occupying. What are my options?

If you are under-occupying please speak to us so that we can support you. You are responsible for making up the difference between your benefit payment and your rent, but we are here to help.
We can:

  • Give you budgeting advice if you decide to stay in your home and manage the shortfall yourself
  • Discuss other ways you could keep your benefit - like taking in a lodger or a boarder

Personal independence payment

The Government is replacing Disability Living Allowance with a new benefit called Personal Independence Payment. This is based on how a person's condition affects them, not the condition that they have. The Government plans to spend 20% less each year on this benefit that it currently does on Disability Living Allowance.

What is happening?

Disability Living Allowance (DLA) is being replaced with a new benefit called a Personal Independence Payment (PIP). PIP is to help towards some of the extra costs caused by ill-health or disability. It's based on how your condition affects you, not the condition you have.

Why is it being changed?

The Government wants to make sure the right people are receiving disability benefits. At the moment some people who receive disability benefits have not had a medical assessment to establish whether they are entitled to the benefit.

Who is affected?

  • Anyone aged 16 to 64 on 8th April 2013 and on Disability Living Allowance will have to reapply for PIP.
  • Anyone aged 16 - 65 making a new claim will need to claim PIP.

When will it happen?

From October 2015 all claimants aged 16 - 65 who are receiving a DLA award will need to make a claim for a Personal Independence Payment. The Department for Work and Pensions will randomly select people in receipt of an indefinite or fixed term DLA award and tell them what they need to do to claim PIP.  The Government aims to complete this transfer process by May 2018.

Who do I speak to if I want to find out more about any of this?

To get help now with managing your finances or budgeting - Your income management officer is here to help with this. They can help you with payment plans and debt advice. Contact them through your area housing office.

To find out about downsizing - contact your neighbourhood housing officer through your area housing office

To set up a bank account - Your income management officer can give you information about Basic Bank accounts which are suitable for anyone - including people with a poor credit history. They can also help you set up a Direct Debit to pay your rent and other charges. Contact them through your area housing office.

Find out more about paying your rent

To find out more about welfare reforms in general - contact your income management officer at your housing office on 0300 123 2222.