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Local authorities and advisers: removal of the spare room subsidy

Tookit for local authorities, housing providers and support organisations in the social rented sector, providing information on the removal of the spare room subsidy.

Since April 2013 there have been new rules in Housing Benefit for working-age people living in social housing, referred to as the removal of the spare room subsidy.

This toolkit contains background information about the removal of the subsidy. It also contains a range of supporting materials that can be used to explain the changes to claimants, and the options available to them to manage any rent shortfall. You can use these materials in your own communications.

Background

The Welfare Reform Act 2012 announced that the rules for the size of accommodation Housing Benefit will pay for in the private rented sector will be applied to working age tenants renting in the social sector.

From April 2013 all working age tenants renting from a local authority, housing association or other registered social landlord receive Housing Benefit based on the number of people in their household and the size of their accommodation.

The rules allow 1 bedroom for:

  • every adult couple (married or unmarried)
  • any other adult aged 16 or over
  • any 2 children of the same sex aged under 16
  • any 2 children aged under 10
  • any other child (other than a foster child or child whose main home is elsewhere)
  • children who can’t share because of a disability or medical condition
  • a carer (or team of carers) providing overnight care

One spare bedroom is allowed for:

  • an approved foster carer who is between placements, but only for up to 52 weeks from the end of the last placement
  • a newly approved foster carer for up to 52 weeks from the date of approval if no child is placed with them during that time

Rooms used by students and members of the armed or reserve forces will not be counted as ‘spare’ if they’re away and intend to return home. In addition, you may be entitled to additional bedrooms if you have recently suffered a bereavement in the household.

This means those tenants whose accommodation is larger than they need may lose part of their Housing Benefit. Those with 1 spare bedroom will lose 14% of their eligible rent and those with 2 or more spare bedrooms will lose 25%.

Changes to Housing Benefit – YouTube video

Removal of Spare Room Subsidy – see the options and support available

Guidance

We published full guidance on administering this change on 5 July 2012 in Circular A4/2012. We have also produced a factsheet for claimants ‘Removal of Spare Room Subsidy’.

Guidance was also sent to local authorities on 12 March 2013 to confirm that they should follow case law (Burnip/Gorry/Trengove) and allow a room for a disabled child who is unable to share a bedroom.

Discretionary Housing Payments

An additional £25 million per year will be available from 2013/14 to help with the introduction of this change. This extra funding is aimed at disabled people living in significantly adapted accommodation.

See our factsheet ‘Claiming Discretionary Housing Payments’.

How you can help support those affected

Housing Benefit claimants need to know how this change affects their benefit. There are a range of options that claimants can consider, including:

Move into work or increase hours

Moving into work or increasing working hours may increase a claimant’s income and help to cover any reduction in Housing Benefit. See our factsheet ‘What happens to Housing Benefit when you earn more’ for more information.

Having other adults in the household contribute more

If there are other non-dependants living in the accommodation, the excess rent may be covered through new or increased contributions.

Moving home

Claimants may be able to move to more appropriately sized social rented accommodation with the help of their landlord. Alternatively, they may choose to look at privately rented property to find the right sized accommodation for their household.

Swapping your home through your council (also known as ‘Homeswapping’) may also provide a simple way of identifying suitable alternative accommodation and help renters better match their requirements. For further information, claimants can talk to their local authority or housing association.

Managing rent payments

See our factsheet for claimants ‘Help with managing your rent payments’

Factsheets

Factsheets for you to use in your own communications to help claimants understand the changes and consider their options more thoroughly. You can add local contact details, local housing contacts and other advice appropriate for your area.

  1. Removal of the spare room subsidy

    • 7 January 2014
    • Guidance
  2. What happens to Housing Benefit when you earn more

    • 7 January 2014
    • Guidance
  3. Claiming Discretionary Housing Payments

    • 7 January 2014
    • Guidance
  4. Help with managing your rent payments

    • 7 January 2014
    • Guidance

Communication products

These products provide core material for your own communications. You can add local contact details, local housing contacts and other advice appropriate for your area. We’ve also published videos on YouTube to help you publicise the changes to Housing Benefit.

  1. Removal of the spare room subsidy: information videos

    • 14 April 2014
    • Promotional material
  2. Letter to claimants affected by removal of the spare room subsidy

    • 18 December 2013
    • Guidance
  3. Help with changes to Housing Benefit – advert for print

    • 18 December 2013
    • Promotional material
  4. Help with changes to Housing Benefit – editorial content

    • 18 December 2013
    • Guidance

Miscellaneous documents

  1. Housing Benefit: Under occupation of social housing impact assessment

    • 28 June 2012
    • Impact assessment

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