Housing Benefit and the Rent Service

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Housing Benefit and the Rent Service
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Applications to the rent officer

• Where a rent allowance claim is made, the council
  must ask the rent officer for a determination
• on a new claim for Housing Benefit
• following a change of address
• following an application for a pre-tenancy
  determination
• following certain changes of circumstances
• 52 weeks from a previous application

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Exemptions to the Rent Officer rules

• Dwellings within a hostel where a determination
  has been made on a similar dwelling in the last
  52 weeks
• Excluded tenancies
• previous determination made in the last 52 weeks
  (unless there has been a change)
• registered social landlords (unless the council
  considers the rent is unreasonably high, or the
  accommodation larger than is reasonably needed)
• tenancies before January 1989
• For the first 13 weeks where the tenant could
  afford the rent when they took up the tenancy
• For 52 weeks after a death in the household

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Changes of circumstances

• An application to the rent officer can be made
  within 52 weeks in certain circumstances
• change in the number of occupiers (excluding
  hostels)
• substantial change to the condition of the
  dwelling or terms of the tenancy
• rent increase under the term of the tenancy
• significant change in the composition of the
  household, where a size-related determination
  applied

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Rent Officer determinations

• The rent officer can make the following
  determinations
• significantly high rent
• size-related rent
• exceptionally high rent
• claim-related rent
• local reference rent
• single room rent
• Determinations are based on local market rents
  monitored by the Rent Service.

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Significantly high rent

• The rent officer will decide if the rent being
  charged by the landlord is reasonable, compared
  to other properties in the vicinity.
• Vicinity means the immediate area around the
  property (the street or the adjoining streets).
• If the rent officer considers the rent to be
  significantly higher than the rent the landlord
  might reasonably expect for the tenancy, they
  will determine the rent the landlord could
  reasonably expect.

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Size-related rent

• The rent officer will decide if the number of
  rooms in the accommodation is reasonable,
  compared to the number of people in the
  household.
• If not, the rent officer will make a size-related
  determination, based on the rent the tenant might
  expect to pay for a more appropriate size of
  accommodation.
• The size criteria is defined by the rent officer.

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Size-related rent

• One bedroom for each of the following
• a couple
• someone who is 16 or over
• two children of the same sex
• two children who are younger than 10
• a child (under 16)

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Size-related rent

• Living rooms
• One living room (for up to 3 people)
• Two living rooms (for 4 to 6 people)
• Three living rooms (for over 6 people)
• The rent officer only counts children living in
  the home they normally live. They are not
  counted if they only visit. The council decide
  who normally lives with the tenant, not the rent
  officer.

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Exceptionally high rent

• After making the significantly high rent
  determination and the size-related rent
  determination, the rent officer will also
  consider if the rent is exceptionally high.
• If it is, they will determine the highest rent
  that is not exceptionally high that the landlord
  may reasonably be expected to get for a similar
  sized dwelling in the neighbourhood.
• Neighbourhood is a broader area than the
  vicinity and is a distinct area of residential
  accommodation.

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Claim-related rent

• The claim-related rent is the lowest of
• the significantly high rent determination
• the size-related determination
• the exceptionally high rent determination
• The rent officer will only notify councils of the
  claim-related rent (and whether any of the above
  apply).

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Local reference rent

• The local reference rent represents the midpoint
  between
• the highest rent which is not exceptionally high,
  and
• the lowest rent which is not exceptionally low,
• for properties of a similar size in the same
  locality.
• Locality is an area that comprises two or more
  neighbourhoods.
• Within this area there will be a mix of property
  types and alternative places to live within a
  reasonable travelling distance of similar public
  amenities.
• The rent officer will only notify councils of the
  local reference rent if it is lower than the
  claim-related rent.

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Single room rent

• The single room rent will apply to single tenants
  under the age of 25 and should reflect the very
  basic cost of accommodation.
• The rent officer will make a determination based
  on
• exclusive use of one bedroom,
• shared use of a living room, kitchen, bathroom
  and toilet,
• without any food or fuel bills included.
• The single room rent applies for 52 weeks, unless
  the tenant turns 25 or has a change in their
  circumstances.

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Exemptions to the single room rent

• The following are not subject to the single room
  rent
• care leavers under 22 years of age who were the
  subject of a care order made after they were 16,
  or made before 16 and continued after that age
• people who qualify for the severe disability
  premium (in receipt of the middle or highest rate
  of Disability Care Allowance care component and
  no one gets Invalid Care Allowance for them)
• single people with non-dependants living with them

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The rent officer determination

• The rent officer will notify councils of
• the claim-related rent,
• the local reference rent (if applicable),
• the single room rent (if applicable),
• whether the claim-related rent includes the
  significantly high, size-related or exceptionally
  high rents, but not the amounts for these,
• the value of any ineligible charges included in
  the rent,
• whether meals are included in the rent.
• The council will calculate the maximum eligible
  Housing Benefit based on these.

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Exemptions from the current rules

• The current rules restricting Housing Benefit to
  the Rent Officer determination were introduced in
  January 1996.
• The following are exempt from these rules
• People continuously in receipt of HB since
  January 1996 who have not moved (unless the move
  was because of natural disaster)
• Partner or relative of the above
• Tenants of exempt accommodation a housing
  association, registered charity or voluntary
  organisation where care, support or supervision
  is provided by, or on behalf of the landlord

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Re-determinations

• The tenant has no right of appeal against the
  council using the Rent Officers determination to
  assess Housing Benefit.
• The tenant (and the council) can ask the Rent
  Officer to look at their decision again.
• Only one re-determination can be requested. The
  original determination is looked at again by a
  different Rent Officer.
• They will confirm, increase or reduce the
  original decision.

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Payments on account

• Until the Rent Officer has made their
  determination, the council cannot decide the
  Housing Benefit claim.
• However, a payment on account must be made within
  14 days of receiving all the necessary
  information from the tenant.
• Housing Benefit is paid using Indicative Rent
  Levels, provided by the Rent Officer and based on
  the number of rooms the tenant requires.
• These are reviewed each month and are generally
  set below local rents to avoid overpayments.

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Pre-tenancy determinations

• A pre-tenancy determination enables a prospective
  tenant and landlord to have an idea of the
  maximum rent which is likely to be used to
  calculate HB before they commit themselves to a
  tenancy agreement.
• The landlord must sign the application to show
  that they consent.
• The Rent Officer determines the rent in the usual
  way.
• A PTD is valid for 12 months and can be used for
  a different tenant if the circumstances are the
  same.

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Discretionary Housing Payments

• A small fund is made available to councils to
  top-up Housing and Council Tax Benefit.
• Awards are at the councils discretion and follow
  the council DHP policy.
• Tenant must be in receipt of HB with a shortfall
  in the rent.
• Cannot be used to pay for ineligible costs.
• Short-term payments to alleviate hardship.