My Money- Housing Benefit Lesson

My Money - Housing Benefit

What is Housing Benefit

​Housing Benefit can be claimed by anyone on Universal Credit, or on a low income to help pay your rent.

Multiple Choice

Brandon is an 18 year old, unemployed, care leaver who has been allocated his own flat through the local council. Can he claim the housing benefit element of universal credit? 

• Yes

• No

Your eligible rent is the amount used to calculate your Housing Benefit claim. It’s your actual rent plus any service charges you have to pay (such as for lift maintenance or a communal laundry) but not things like heating or water costs for your home.

Spare bedrooms

Your Housing Benefit could be reduced if you live in council or social housing and have a spare bedroom. The reduction is:

• 14% of the ‘eligible rent’ for 1 spare bedroom

• 25% of the ‘eligible rent’ for 2 or more spare bedrooms

Example

Your eligible rent is £100 per week, but you have 1 spare bedroom. That means your eligible rent is reduced by 14%, to £86 per week. Your Housing Benefit will be calculated using that figure.

Private rent

If you rent privately, your eligible rent amount is either your Local Housing Allowance (LHA) rate or your actual rent, whichever is lower.

​Eligible rent

Multiple Choice

Kelly is a care leaver. She has never had to pay utility bill before.

She has been told by a friend that she should claim housing benefit as this will also include the cost of her water, electric and other household bill.

Is her friend correct?

• Yes

• No

Multiple Choice

Kerry has applied for a two bedroom flat through her local council as she would like her younger sister to come and visit her from time to time. Will Kerry's total rent be covered by her housing benefit? 

• Yes

• No, but the council will  be fine with that

• No, she will need to pay the 14% short fall from her standard allowance

Multiple Choice

Kerry thinks that if she rents from a private landlord it will be better for her as she will be able to get a bigger property in a better area.

Her PA has told her that if the rent charged by her landlord is more than the Local Housing Allowance she will be responsible for paying above the allotted allowance.

Is her PA correct? 

• Yes

• No

​How You're Paid

The way you get paid Housing Benefit by your council depends on the type of tenant you are.

If you’re a:

• council tenant, it’s paid into your rent account (you will not receive the money)

• private or housing association tenant, it’s paid into your bank or building society account (rarely by cheque)

Multiple Choice

If you’re a council tenant, your rent is paid into your bank account and you must arrange to make payments to your local council.

• True

• False

​Find your Local Housing Allowance rates

Fill in the Blanks

Most one bedroom flats are classed as Cat B dwellings.

What is the LHA for a one bedroom flat in the area you would like to live?