Overview | Policy and legislation | People at risk of homelessness | Homelessness strategies | Benefits | Prevention & tenancy sustainment

Benefits

Housing Benefit

The most significant aspect of the social security system is the housing benefit system. Housing benefit, which is means tested, can meet up to 100% of the rent. However, it can not be used to provide a deposit on a rented property. Housing benefit for privately rented accommodation is restricted.

For single people aged under 25 the maximum repayable via housing benefit is the ‘single room rent’ – the average rent for a room in a shared flat. This has led to great difficulties for many young people, to the extent that the powerful Social Security Committee of the House of Commons has called for the abolition of that particular restriction. It has led, for example, to young people being exploited by landlords to ‘make up for’ the shortfall in their rent.

Recently, the government has announced it intends to redefine the single room rent, but not abolish it. Other people are restricted to the ‘local reference rent’ in the private rented sector, which is the average rent for a property of the size they require in that locality.

The administration of Housing Benefit has become increasingly complex and some local authorities may take longer than 14 days to process a claim. Such delays can lead to the build up of rent arrears which can then lead to eviction. SCSH believes that local authorities must act corporately to ensure that people are not evicted as a consequence of delays in processing HB claims. SCSH also believes that people should be aware of the right to request an interim payment of HB if their claim takes longer than 14 days to administer. [Regulation 91(1) of the Housing Benefit (General ) Regulations 1987].

Other Benefits

The Social Fund offers further assistance. It is split into three elements. Crisis loans are small loans given to people who face an immediate crisis (for example theft of all their money) and have to be paid back very quickly. Budgeting loans can be used by people to help buy furniture or for other purchases, which they would not otherwise be able to manage. They are interest free but have to be paid back quickly. They are open to people claiming other welfare benefits. They can not be used for a deposit to secure accommodation. Community Care grants are grants which do not have to be repaid and are particularly aimed at helping people set up home after leaving institutions (such a long term hospital stays). The drawback of all of these funds is that they are cash limited. If the budget is used up in an area vulnerable people will not get access to the help they need. They are also implemented in different ways in different parts of the country.

More information

Further information on Benefits can be obtained from:

• Department for Work and Pensions (general information)
• Department for Work and Pensions (Housing Benefit)
• Child Poverty Action Group