Housing benefit questions I would like answers to please?

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Hi.

Im hoping someone will be able to advise me.

Me and x split up in feb but as he works away in the week I have remained in the house (joint mortgage) and he comes back every other weekend.

We live right next door to his parents and I have decided I want to move out.

I am looking into rented accomadation, I looked on the housing benefit website and they have given me an estimate of £173 a week towards rent. I dont work at the moment, will get maintenance and tax credits when they sort it out!

What im wondering is what type of house I look for, I have 2 young girls. I have seen a nice 2 bed place but ideally would like 3 beds. Would I be penalised for having a 3 bed place or is the amount just a standard amount per week?

Many thanks.

The amount you get is based on how many bedrooms you are entitled to. As you have two girls I would imagine your entitlement would be for a 2 bed house - that sounds about right at £173 per week depending on where you live in the country.

You are fine to use this allowance to cover all or part of the rent on a three bedroomed house. If the rent is higher, you won't get any more money (even if it was only a 2 bed house) and you will have to make up the difference yourself. Oh and if the rent is less than the allowance, you don't get the extra money back - the maximum you ever get is all of your rent paid.

The only thing to look at with a 3-bed is that the council tax may be higher and you may only be entitled to council tax benefit to cover a lower CT band, but I have no idea how it works so this is just a possibility.

Also remember, most letting agents won't accept Housing Benefit so you will probably have to find a private landlord. And you will need quite a bit of money up front to pay the deposit, and HB is always paid in arrears, so you will need the first (and always useful to have the second, in case of delays) month's rent up front as well.

HTH

Thank you so much for your help!

That is quite alot of money per month. I will look into the council tax, so do I have to pay that?

Best I start saving!

Re council tax - as a renter for many years yes you will have to pay council tax. However, if you are the only adult in the household you will automatically get a 25% discount regardless of income. If you would like help in paying council tax then you should apply for council tax benefit.

This should help you:

www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/BeginnersGuideToBenefits/ index.htm

Yes, the allowance seems to vary a lot per area - I think some of the LHAs cover wide areas as well and are based on average rents, so you are lucky if it easily covers somewhere, and unlucky if it barely stretches to a tiny flat (as is the case for many) - I found that I was lucky in that I live in an area where the allowance for a 2-bed would cover a small 3-bed, but decided to look for a 2-bed (and in the end that was all I found anyway)

If you are not working, you will probably also be entitled to council tax benefit. In most cases it covers all of it and comes straight off your bill rather than being paid to you. Remember you will get a 25% discount for being the only adult in the house, either way.

As you already (joint) own a house it may affect your claim - it may also be seen as an asset and may be taken into account - you're better off speaking to the council first.

I understand your reasons for wanting to move out, but don't get out of the house until you have talked to a solicitor about what is the effect of having a property/ joint mortgage on your particular circumstances.

Also remember that there is a waiting time before you can claim housing benefit, so plan ahead about how are you going to get the resources to cope in the mean time. Also note that if there is some equity in the house, and therefore you end up with some money out of it, all income based benefits could stop.

You cannot just walk out of a house you jointly own and expect the state to pay for rent on another property.

You need to assess the equity in your property, if any.

And you need legal advice.

I went to get advice on thursday and she told me I am better to move out and rent than stay in the house.

X doesnt want to sell the house so he is going to take it on himself, when the time comes to sell, yes I will be entilted to some equity and yes it will then affect what I get in terms of benefits, I will also be ooking to work in september when youngest starts school.

I would rather move out and be happy than stay here and be unhappy.