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What is Housing Benefit mean?
Housing Benefit is a means tested social security benefit in the United Kingdom that is intended to help meet housing costs for rented accommodation. It is the second biggest item in the Department for Work and Pensions' budget after the state pension, totalling £23.8 billion in 2013–14.
The primary legislation governing Housing Benefit is the Social Security Contributions and Benefits Act 1992. Operationally, the governing regulations are statutory instruments arising from that Act. It is governed by one of two sets of regulations.
For working age claimants it is governed by the "Housing Benefit Regulations 2006", but for those who have reached the qualifying age for Pension Credit (regardless of whether it has been claimed) it is governed by the "Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006".: 10–11
It is normally administered by the local authority in whose area the property being rented lies. In some circumstances, normally council tenants in "out of borough properties", some claimants may be required to obtain Housing Benefit from the borough that placed them. For those areas where there are two or more tier local government structure, Housing Benefit is administered by the district or borough council layer of local government. This is the council responsible for the billing of Council Tax. Additionally, local authorities in Great Britain, but not Northern Ireland, may contract out the administration of housing benefit to other local authorities, or to private companies.: 8–9
Council tenants' housing benefit is awarded as a rebate, reducing the level of rent payable by the tenant. Private tenants' benefit is normally paid to the tenant, who has the right to decide to whom payments are made, but in other cases it is paid to the landlord.: 276–288 Local authorities reclaim the housing benefit that they have paid from the Department for Work and Pensions (DWP) by means of submitting heavily audited subsidy claims. Three subsidy claims must be completed each year: an initial estimate, a mid year estimate and a final claim. The final claim must be submitted to the DWP by 30 April. The final audited claim must be submitted by 30 November.
The Department for Work and Pensions pays local councils an administration grant based on the numbers of new claims and overall case-load; as well as various other cost factor adjustments to take into account the relative staff and accommodation costs. The level of Administration Grant awarded is announced annually by the Department for Work and Pensions. Some elements of the subsidy claim are subject to penalty, to encourage local authorities to control that element of expenditure. This includes high rents for care and support homes and the raising of overpayments. Overpayments of benefit are not fully funded in order to ensure that the local authority takes recovery action where appropriate.
From April 2017 people between the ages of 18 and 21 will not ordinarily be entitled to housing benefit. There are fears this will increase homelessness.
referencePosted on 02 Dec 2024, this text provides information on Miscellaneous in Governmental related to Governmental. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.
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