Housing Benefit - How does it work?

[thedollshouse]

Please excuse my ignorance, I keep reading about the cuts to housing benefit but I am embrassed to say that I have no idea how it works or who is entitled.

I know lots of people who claim HB but they all live in council or housing association properties so I guess they won't be affected by these cuts, am I right in my assumption?

If dh loses his job and we find ourselves in the awful position of being unable to pay our mortgage I had always assumed that we would declare ourselves homeless and move into hostel type accommodation until a social housing property became available. However, with all this talk about the housing benefit cuts it would appear that hb is available to help towards costs for any private rented property. So does this mean that if Dh were to lose his job we could choose a rental property and ask for hb to pay for it? If this the case why are there families living in hostels and b&b accommodation? Why can't they all live in more suitable properties?

Please could someone explain how it works.

TIA

Housing Benefit The DirectGov website will give you the current rules. It's pretty complex who qualifies and for how much.

On the hostels and B&B accommodation question. Council houses are in short-supply because many have been sold and few have been built, plus there is a mismatch in terms of occupancy i.e 1 person living in a 3 bed house. (Hence the 'end to council house for life' ideas.) Housing Association places are also in relatively short supply depending on where you are. Private landlords won't always take people who are on HB... so that cuts out quite a few properties that way. Hostels and B&B are meant to be temporary but often aren't in practice.

If you ended up screwed it's very unlikely the council would do anything to help, you would just be stuck on the waiting list like everyone else and maybe end up in a B&B paid for by HB until you get on your feet and get out of there, it all depends on what savings you have etc and if your job seekers in income or contribution based.

it's all a massive mess designed to give little gray people in suits office work, more then actually help anyone and it's all ways been that way.

but then I know London is very different to other parts of the country.

Thanks.

But would that happen Ryoko? I just looked at the information chil linked to and it said that we would be entitled to claim for a 2 bedroomed property up to a maximum of £195 per week and rightmove shows that there are a few 2 bed properties in my town for just under £800 per month, the details don't specify no hb claimants so I assume everyone is eligible.

Housing benefit is a means tested benefit that is available to people who have an income below the set level. It also takes into consideration savings and equity in property, so if your dh lost his job and you could not afford the mortgage repayments but had equity in your house you would not receive benefits.

People in council or HA properties still have to pay rent, but they are generally cheaper than in the private sector.

If you become homeless, accommodation is allocated according to various factors, such as whether you are in priority need by having children who live with you or a medical condition. Also whether you became homeless intentionally (such as leaving accommodation for no good reason) or whether you lost your accommodation through no fault of your own. These factors affect the local authority's duty to house you, and whether they have to house you in permanent or temporary accommodation such as a b&b or hostel.

You are also able to claim housing benefit for a private rental if your landlord will accept it and if you have the money for a deposit yourself.

So lets say that dh lost his job and we didn't have equity we could go on the housing waiting list and have a very long wait (probably never get to the top of the list) or we could choose a 2 bedroomed property (there is a 2 bedroomed property a few doors away from our house) and claim housing benefit.

I'm a lot clearer but I'm still confused as to why there are people living in hostels and b&bs when you can claim hb for a private rental property. Or is the case as chil said earlier that lots of landlords discriminate against hb claimants? Would I find that the nice little terrace a couple of doors away wouldn't want us if we found ourselves in this situation?

As lots of people are going to find themselves unintentially homeless within the next 5 years isn't it time the government stepped up and introduced legislation that prevents private landlords from discriminating against HB claimants? Are there any plans to do this?

thedollshouse the problem is that very few landlords will accpet it - only the landlords that own what used to be social housing - ie probably not in the area you're in and not near your schools etc.

All of the 'normal' estate agents wont touch you with a bargepole ime.

Sorry X-posted thistledew. So the issue is often down to deposit? Its the most vulnerable that have never had anything that find themselves in the bigger pile of shit isn't it?

if you can get a 2 bed for £800 you would probably be fine.

as I said I'm in London, where the council lists are full, Housing associations are full, Housing Benefit takes months to pay anyone so landlords hate it and a 2 bed place costs around £1,400 a month.

Many mortgage and insurance companies of landlords prevent them from accepting HB tenants as they are seen as being 'higher risk'. This can lead to what seems like a blanket ban on HB in private lettings and often letting agents just can't be bothered to check with each landlord to see if they can or can't accept that type of tenant.

"All of the normal estate agents won't touch you with a bargepole".

Why not? Surely the landlord is more sure of receiving his rent if the money is coming direct from the government?

If dh lost his job we wouldn't suddenly acquire a taste for leaving supermarket trollies and old sofas in our front garden.

You would leave an old Sofa in the front garden if the council would charge you £50 to remove it.

I used to leave on an estate most of the junk was dumped by fly tippers and other people because the council clean up the estate for free no questions asked.

They wont take you because they are prejudiced against people on benefits (and certain parts of the media increase it as does your jokey comment about sofas etc) - and because in certain parts of London (lots of London in fact) they dont have to take in HB people because they have sharers/young professionals etc instead.

And in lots of cases now the hb is paid direct to the person and not the landlord.

If you lose your job and your circs change and you need to apply for benefits then overnight you get treated very badly - for no reason at all - it constantly reminds you what a failure you are

If your DH lost his job you would have to sell the house (or have it repossessed, and actually have been evicted^) before the council will even look at you.

Many LL's won' take housing benefit because their Mortgage and Insurance says they can't.

Although obviously there are plenty of prejudiced ones as well that don't because they don't want to

If you couldn't find a house for under £845 a month that would accept housing benefit then you would have top up out of your other benefits.

I made the comment about discarded sofas because it seems to me that there must be a view that that is what hb claimants are like because otherwise I cannot understand why a landlord would choose not to rent out a property to them. I don't personally share that view.

Years ago when we were young we lived in a very nice apartment which was popular with young professional types. It was awful, there were parties every weekend fag butts discarded in our letterbox, men urinating in the communal hallway. I would much rather have a family who have fallen on hard times renting my property than a young professional who has no respect for his surroundings.

Reasons why you'd be on a waiting list/in a B&B rather than privately renting.

• lack of affordable private rental property
• no funds for a deposit (some places ask for a higher deposit if you are on HB)
• a lot of landlords mortgage companies and/or insurance companies will not allow them to take on HB tenants
• some have a dim and stereotypical view of claimants, so no HB tenants
• rent is paid for in advance, HB is paid in arrears, so for your first month you have to find (out of your pocket) a deposit and the first months rent.
• now JSA claimants will lose HB after a certain time being on JSA, less landlords will want to take the risk of tenants not being able to pay (whether on JSA or not)
• the government wants more people off disability related payments (ESA/IS) and onto JSA, see last point.
• new claims can take about 3 months, so add another 3 months rent on to the figures in point 5.

As for declaring yourself homeless, not sure about the rest of the country, but in my area in order to be deemed homeless (rather than voluntarily homeless - less obligation to house you) you need to

• be taken to court to be evicted (lose, pay your costs and the landlords/whoever took you to court)
• refuse to leave
• be forced to leave by bailiffs

Only then are you considered homeless. In which case you might get a B&B.

So, there's your answer.

Oh, and if you happened to have a large family prior to redundancy/illness and lived in a more expensive area (maybe more jobs there, more chance to get off benefits, maybe you are getting treatment there, kids in schools, reliant on a low wage local job etc.) then there will be an additional cap, and unless you can afford to move much further away, then you will also be reliant on social housing (of which there is very little) or B&B's.