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Another Housing Benefit question re property too big for needs

(4 Posts)
Fizzylemonade Tue 29-Jul-08 12:46:29

My Mum and Dad rent a two up two down terraced house from a private landlord.

As there are only 2 of them the HB office deem the property to be too big for their needs because of the extra bedroom.

As they have a very small private pension as well as state pensions (one of which is not full pension) they are deemed to have "excess income" and so HB deduct 65% of that excess income off their housing benefit.

Meaning that my parents pay a fair whack towards the rent (not quite half)

Question is - if they could find the holy grail that is a 1 bed property and moved to it would they be better off financially re the HB as they would then have the "correct" sized property. Or would their excess (laughable amount) income still scupper them?

Thanks for reading this far grin

lou031205 Tue 29-Jul-08 12:56:01

They would be better off if the rent on that one bed property was less. But they would still have the same amount deducted from their housing benefit. Do they have old-style HB, or are they on the Local Housing Allowance Scheme? If they move, they will automatically go onto LHA.

Fizzylemonade Tue 29-Jul-08 18:06:38

Thanks lou31205 they are still on HB and know that if they move they would go onto LHA but they (and me) have no idea what difference it would make.

All the one bed properties are sheltered housing which despite them being pensioners they don't really need and they would feel bad about taking it from someone who may really need it.

fiodyl Tue 29-Jul-08 22:12:56

I think from what I understand of LHA they will only be better off by th difference in the rent between a 1 bed and 2 bed

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