Housing Benefits
Housing benefit is a social security payment which assists persons on lower income with housing costs. It is administered by the housing executive in the case of social housing and private rented housing and in the case and by land and property services in the case of owner or occupiers persistence with right. The principal provisions are comprised in the housing benefits regulations NI 2006.
Whilst the reform contemplates that housing benefit will be abolished. The universal credit with an element of housing benefit will replace housing benefit. The housing element will be part of a single universal credit.
Housing benefit may be payable to social sector tenants in the private sector who first applied prior to 7th April, 2008 and and occupiers who requires assistance with rates.
Housing benefit is administered under the Social Security Contributions and Benefits NI Act, 1992. It provides assistance for rental and rate payment. It is not linked to employment and is available to both persons who are unemployed and whose income is below certain thresholds.
Claimants must be habitually resident in Northern Ireland and must not be subject to immigration control. The Northern Ireland Housing Executive administers rent assistance and rates’ assistance to both public and private tenants. The rate collection agency deals with assistance on rates to others.
Persons who are receiving income support, guaranteed credit, the amount of pension credit, and income-based jobseeker’s allowance are entitled to have the maximum housing benefit.
The maximum housing benefit covers full rental payment and rates. The reductions for contributions that non-dependents are expected to make do not apply if the claimant or the partner is on an attendance allowance, care element, or disability benefit or registered as blind.
The level of housing benefits depends on income, number, age and circumstances of household members’ outgoings by way of rent.
There may be reductions or denial of benefit if there are non-dependants in the household.
If the rent includes certain fuel and services that are outside the scope of the benefit or restrictions which reduce the level of rent qualifies.
The housing allowance is the name for housing benefit in the context of the private sectors applies after 7th April 2008. It does not apply to rent controlled tenancies under the 1978 rent NI order or the private tenancies NI order 2006. It does not apply to tenants in the social housing sector or a tenancy provided by a housing authority, registered charity or voluntary organization which is providing care and supervision to tenants.
Universal credit will replace and encompass income support, income based jobseeker’s allowance, housing benefit, income related employment support allowance, child tax credit, working tax credit.
It is intended to be paid in arrears. Persons will receive a monthly payment. A claim for universal credit may only be made either by a single person or members of a couple jointly.
Universal credit is effectively made up of a standard allowance for a single person. Additional amounts for children
Supplements for children with disability, housing costs whether rent or mortgage, limited capability for work, limit capability for work related activity, regular and substantial caring responsibilities for a severely disabled person.
The amount of the universal credit will depend on the level of capital and income. The housing element will be paid to the renter. Under the Great Britain regulations it is paid to assist with rent, mortgage interest, service charges.
Rent payments include rental payments as such, mooring charges by a houseboat, payment for license or permission to occupy a house side charges for caravan house, contribution by residents houses provided by a housing charity. It does not include ground rent, payments in respect of care home.
Persons deemed to occupy the accommodation which they normally occupy as their home and no claimant is to be treated as occupying more than one place at a time.
The universal credit is paid directly to the claimant who is responsible for paying it to the landlord.
The basic elements are entitlement or housing benefit
Capital, and the claimant does not have capital and savings more than £16,000
The claimant is liable for rent and all rates.
The claimant normally occupies the accommodation as his usual home
The claimant satisfies habitual residence test
The claimant must have low income and must not be excluded from housing benefit scheme.
Capital includes savings, property land. The value claimants home in which they normally reside is disregarded. Where claimant has more than £16,000 in capital, they are not generally eligible for housing benefit.
Where a claimant or a partner has income between £6,000 and £16,000, they are deemed to have an income of £1 for every £250 they have over the £6,000 limit per week.
Where claimants are over the age of 60, credit limits are £10,000, 16,000 with a £1 per week deemed income and every £500 between £10,000 and £16,000.
Persons are deemed to have income and capital in certain cases. Where he deprives themselves with income or capital in order to qualify he is deemed to have it. He is deemed to have a notional capital. If he is deemed to have notional capital, the notional capital is reduced each week by the amount of the housing benefit lost.
The applicant is deemed to have monies which he could have claimed under social security system, but didn’t. Money is paid to one person, but used by another, it is treated as belonging to the person who has the benefit of the money.
The claimant must be responsible for payment of rent of the dwelling in the United Kingdom. Liability need not be technically legally binding. It must be at least actual. Housing benefit may be payable where landlord agrees to stop charges rent if he has failed to carry out powers they were obliged to undertake.
Joint tenants provided they are not couple may each submit a separate claim for their respective shares.
The rent must be genuine and at arms’ length. If the rental arrangement is contrived or artificial, it may be denied where the executive is satisfied that the liability was created to take advantage of the housing benefit scheme, the executive will look at the totality of the circumstances, the relationship of the parties, their rental element, and the context.