WHAT DOES
‘UNDER OCCUPATION
DEDUCTION’ MEAN
TO ME?
DEVELOPING HOMES AND CREATING OPPORTUNITIES
FOR PEOPLE WITHIN WEST NORFOLK
YOUR QUESTIONS
Disclaimer : “The information provided in this booklet is sourced from
DWP regulations and maybe subject to change. Freebridge Community
Housing accepts no responsibility for any loss incurred whilst using
this material or information, or from any action or decision taken as a
result of using any such information. The information in this booklet
is for general guidance only and is correct at the time of production.”
This is a booklet about Under-Occupancy - which is also known as
‘Social Sector Size Criteria’.
Over the next few pages we’ll raise the questions that we get asked
most about Under Occupation Deduction.
Your questions are in white our answers are in purple.
What does under ocupation mean? Page 04
Who will be affected? Page 05
Who won’t be affected?Page 05
I am working age but my partner is of Pension Credit
qualifying age. What happens? Page 07
How many bedrooms can I have? Page 07
How much housing benefit will I lose if I have a spare room?
Page 09
I am working and get some housing benefit.
Will the changes affect me?
Page 11
How will my rent be paid?
Page 13
I share the care of my children with my ex-partner,
are we both entitled to a room for them?
Page 13
My partner and I sleep in separate bedrooms due
to a disability/medical condition/ recoving from an operation? Page 15
My child is away at university. Will I get housing benefit for
their room for when they are home during the holidays?
Page 15
My adult son/daughter is in the Armed Forces. Will there be
a deduction when they are deployed on operations?
Page 15
I am a foster carer and need my spare bedroom
for my foster child? Page 17
I have a disabled child who cannot sleep in the same
bedroom as their brother/sister?
Page 17
My “spare” bedroom is very small . Will I still be affected?
Page 18
I have have had a death in the household and will now be
classed as under-occupying. Will my housing benefit be cut
straight away?Page 18
I cannot afford to pay extra towards my rent. What can I do? Page 19
3
So what does under occupation mean ?
If someone is assessed as having more bedrooms in their
home than is necessary (as defined by the criteria set by the
Government) they will be considered to be under-occupying
that property and from April 2013 their housing benefit
will be reduced.
4
Who will be affected?
• If you are of working age and claiming housing benefit, and
live in a property that is deemed to have more bedrooms
than you require
• Working age includes people between age 18 and the
qualifying age for pension credit
• Claimants can choose to live in a property that is deemed
to have an extra bedroom; but will be subject to paying the
shortfall in the housing benefit.
Who won’t be affected?
• If you or your partner are old enough to receive
Pension Credit (this changes from October 2013 –
please see page 7)
• If you live in a one-bedroom flat or bedsit
• If you do not claim housing benefit.
5
6
I am of working age but my partner is of Pension
Credit qualifying age. What happens?
• Currently if either you or your partner is of Pension
Credit qualifying age you will not be subject to the Under
Occupation Deduction.
• From October 2013, when Universal Credit is introduced,
both you and your partner will need to be of Pension Credit
qualifying age to claim Pension Credit or you will have to
claim Universal Credit and you will be subject to the Under
Occupation Deduction.
• However, if you are already claiming Pension Credit before
October 2013 as a couple then this will continue, and you will
not have to pay the Under Occupation Deduction.
How many bedrooms can I have?
For working age claimants, one bedroom will be allowed for
each adult or couple living as part of the household with the
following exceptions:
• Two children under 16 of the same sex will be expected to
share a bedroom
• Two children under 10 will be expected to share, regardless
of their sex
• Disabled tenants or partners who need a non-resident
overnight carer will be allowed an extra room.
7
8
How much housing benefit will I lose
if I have a spare bedroom?
• Deductions will be set as a percentage of the weekly rent,
not of your current Housing Benefit entitlement.
• Deductions will initially be set at :
• A 14% cut for one extra bedroom
• A 25% cut for two or more extra bedrooms
• Therefore the higher the rent the higher the amount of
money will be deducted from housing benefit.
EXAMPLE
Mr & Mrs Smith live in a two-bedroom flat costing £70.00 per
week in rent. They currently receive full housing benefit that
covers the cost of all of their rent.
The new rules mean that from April 2013, they will have one spare
bedroom and therefore their housing benefit will be reduced by
14% of their rent.
14% of £70.00 = £9.80.
Their housing benefit will be reduced to £60.20.
They will have to pay £9.80 per week towards their rent.
9
10
I am working and get some housing
benefit. Will the changes affect me?
Yes. Deductions are calculated as a percentage of the housing
benefit eligible rent – not the actual amount of housing benefit
received. This means that where a working claimant receives a
small amount of housing benefit this may be cancelled out by the
deduction in housing benefit, leaving no benefit payable at all.
EXAMPLE
Mr & Mrs Jones live in a two-bedroom flat costing £70.00 per week
in rent. They currently receive a partial housing benefit award
of £30.00 per week and pay £40.00 per week themselves towards
their rent.
The new rules mean that from April 2013 their housing benefit
will be reduced by 14% of their rent.
14% of £70.00 = £9.80.
Their housing benefit will be reduced to £20.20.
They will have to pay £49.80 per week towards their rent
11
12
How will my rent be paid?
If you are assessed as under-occupying your home, your reduced
housing benefit will be paid as it has been previously and the
remainder of the rent will need to be paid by you to your landlord
(note – this will change with the introduction of Universal Credit
from October 2013).
I share the care of my children with
my ex-partner, are we both entitled
to a room for them?
Where parents who don’t live together have shared care of
their children, the children will be treated as living with the
parent who is treated as responsible for them and provides
their main home. This will be considered to be as the person
who is receiving Child Benefit for them. The parent who is
not considered to provide their main home will not be entitled
to receive extra housing benefit for an extra room and will
therefore be subject to the deduction in housing benefit.
13
14
My partner and I sleep in separate bedrooms due to a
disability/medical condition/recovering from an operation?
Under Benefit rules, regardless of illness or disability, you are
deemed to be able to share a bedroom. You will therefore be
subject to the deduction in housing benefit unless you need a
non-resident overnight carer; in which case an extra bedroom
is allowed (subject to qualification of the person requiring the
overnight care being in receipt of certain specified benefits and
the overnight care is required on a “regular basis”).
My child is away at
university. Will there
still be a deduction to
my housing benefit?
Yes, you will still be
subject to the deduction
in housing benefit if the
young person is renting
or staying in halls of
residence away from the
family home.
My adult son/daughter
is in the Armed Forces.
Will there be a deduction
when they are deployed
on operations?
Adult children who are in
the Armed Forces but who
continue to live with their
parents will be treated as
continuing to live at home,
even when deployed on
operations, as long as they
intend to return home.
15
16
I am a foster carer and need my
spare bedroom for my foster child.
People who are approved foster carers will be allowed
an additional room, whether or not a child has been placed with
them or they are between placements, as long as they have
fostered a child, or become an approved foster carer in the last
12 months. However, this only applies to one additional room
and people who foster more than one child may still be affected
by the deduction in housing benefit.
I have a disabled child who cannot sleep in
the same bedroom as their brother/sister.
Housing benefit should pay for an additional bedroom where
that bedroom is required because of a child’s disability
preventing them from sharing with another child. Parents with
disabled children will need to inform the local Council and
provide supporting medical evidence and/or proof of benefits
such as Disability Living Allowance. The Council will consider
the nature and severity of the disability, and the extent and
regularity of the disturbance to the sleep of the child who would
normally be required to share the bedroom. Each case will be
assessed individually by the local Council.
17
My “spare” bedroom is very small.
Will I still be affected?
Yes, you will still lose some of your housing benefit. There is no
distinction between larger and smaller bedrooms for housing
benefit purposes.
I have had a death in the household and will
now be classed as under-occupying. Will
my housing benefit be cut straight away?
• Your housing benefit would be protected and there would be
no deduction in your housing benefit until 12 months after
the death, or if you moved house or had a further change of
circumstances (whichever comes first).
• After October 2013, under Universal Credit, this changes to
3 months after the death.
18
I cannot afford to pay extra towards my rent. What can I do?
Budget to pay the difference yourself: If you need help with this
come and talk to us. We can help with the following:
• Work out a budget plan with you
• Refer you to the Citizens Advice Bureau for help with debts
• Look at ways to increase your income by claiming
different benefits
• Talk to you about applying for Discretionary Housing Payments
to cover the shortfall for the short term.
Think about moving to a smaller property. Moving to a smaller
property may also reduce your household bills and you might find
it easier to manage a smaller home. If you need help with this
come and talk to us. We can help with the following:
• Talk to you about the different ways you can move
• Help you to find a house swap on the House Exchange website
• Offer help with moving costs through our ‘Under Occupation
Incentive Scheme’.
Take in a lodger. Current benefit regulations allow claimants to
keep the first £20 of any weekly income from renting out a room.
If you need more information on this come and talk to us. We can
help with the following:
• Talk to you about what you need to do when you take in a lodger
• Explain how this might affect your benefit in other ways.
19
FCH 0048.2
If you still have questions about under
occupancy, please call your Income Adviser
on 03332 404 444
IF YOU NEED ANY HELP TO UNDERSTAND
THIS LEAFLET PLEASE GET IN TOUCH
Freebridge Community Housing
Juniper House
Austin Street
King’s Lynn
Norfolk PE30 1DZ
Email: [email protected]
Main Switchboard Telephone: 03332 404 444
Office Opening Hours:
8:45am - 5.15pm (Mon-Thurs)
8:45am - 4.45pm (Fri)
Bank Holidays, Saturday and Sunday Closed
Out of Office Hours:
The main telephone number (03332 404 444)
will divert to our 24 hour emergency service.