Frequently asked questions

Under-occupation is sometimes referred to in the press as the “spare-room subsidy” or “bedroom tax”, and came into force in April 2013. Under-occupation currently applies to people renting from a social-sector housing provider, ie the local authority, a registered housing association, another registered provider or social housing.

The amount of benefit you can receive may be restricted if you're considered to have more bedrooms than you need for the people living in your household.

From 12 August 2013 the government introduced a cap on the total amount of benefit that people aged 16-64 could get. The aim of the “benefit cap” is to prevent people from getting more income from benefit payments than the average wage (after tax and national insurance). The initial benefit cap levels for Shropshire were:

• £350 per week for single adults with no children
• £500 per week for couples (with or without dependent children) and single parents

From autumn 2016 the planned levels are reduced to:

• £258 per week for single adults with no children
• £296 per week for couples (with or without dependent children) and single parents

As yet, the government has not published the exact date on which this further reduction will be introduced.

All the benefits and credits your household receives are added together. This includes anything paid to you, your partner and any children (or qualifying young people) you claim for (it doesn't include anything received by non-dependants living in your home). If your total household income is higher than the level of the cap the amount of benefit you receive is reduced. The reduction is taken from housing benefit in the first instance. Further reductions will be made from other benefits until your total income no longer exceeds the level of the cap.

Some households are exempt from the cap if they're receiving:

• War widows or war widowers pension
• Disability living allowance
• Personal independence payment
• Attendance allowance
• Constant attendance allowance
• The support component of employment and support allowance
• Working tax credit
• Industrial injuries benefit
• Armed forces compensation scheme
• Armed forces independence payment

The exemption category must be relevant to a member of the household, and not a non-dependant. There's a 39-week grace period before the cap is applied for those who have been in continuous employment for the previous 12 months, and who lose their job through no fault of their own.

From April 2013, council tax help for people on low income changed, as council tax benefit was abolished and replaced with a council tax reduction scheme. Previously, any council tax benefit awarded by councils was reimbursed in full by the government. From April 2013 this was reduced to 90%, and councils had to find the remaining 10% by restricting the amount of help available.

Unlike council tax benefit, which followed the same national rules and regulations which apply to housing benefit, the new scheme required councils to set their own rules.

Universal credit is made up of one monthly payment. Most people who receive universal credit won't get any housing benefit; instead, any help with housing costs will be paid as part of the monthly universal credit payment.

Council tax support isn't paid as part of universal credit. If you're not already in receipt of council tax support when you make your claim to universal credit, you'll need to make a separate application.

For more information about universal credit take at the government’s website.

Each year the government publishes figures representing how much money they believe people should have as a minimum level of income necessary to meet their basic and essential living costs. You may have seen these figures referred to elsewhere as an applicable amount, appropriate amount or needs level. These figures are applied from the first week in April each year and are referred to as uprating.

Normally these figures increase by the cost of living. However, for working-age people the government has decided not to review and increase these figures again until 2021 at the earliest. People who have reached their state pension age will continue to receive an annual increase.

Private tenancies 

The amount that housing benefit can pay towards rent for private tenancies won't be increased again until 2020 at the earliest. The rates should remain at the levels set in 2015, but could be reduced if the average rent in the area is lower.

Social-sector tenancies

The government is reducing the amount of rent charged by social-sector landlords by 1% each year between April 2016 and 2020. In addition, from April 2018 social-sector tenants have been subject to the same restrictions currently placed on private tenants. This includes the maximum amount of housing benefit payable to single people under the age of 35 being limited to a shared-room rate. These restrictions will only apply to any tenancy agreement signed after 1 April 2016.

Visit our webpage for more information regarding the local housing allowance and bedroom entitlement.

Since April 2016 new claims for housing benefit made by people of working age can only be backdated for a maximum of one month (this was previously a maximum of six months). New claims for housing benefit made by people who have reached their state pension age can still be considered for backdating for a maximum of three months. More information about applying for backdating as part a new claim is available on our website.

Since April 2016 the amount of time that somebody can be outside the UK and still be entitled to housing benefit has been a maximum of four weeks; previously this was a maximum of 13 weeks. This change also affects pension credit.

The family premium currently forms part of the housing benefit and council tax support assessment for any household claiming for dependant children and/or dependent young people. For housing benefit, since 1 May 2016 the family premium hasn't been awarded as part of any new claim or added to an existing award following the birth of a child.

Existing awards of housing benefit which already have a family premium included will remain unaffected for the time being. However, any break in a claim will result in the family premium being withdrawn. Also, for the time being, the family premium will continue to form part of the assessment for council tax support, claimed by working age customers. This is currently under review.

Since 6 April 2017 new claims to housing benefit may be limited to include a maximum of two personal allowances for children or dependant young people.

Child tax credits will be responsible for determining how many children or dependant young people will be included in the claim. Claims already in payment before 1 April 2017 will not be immediately affected, however:

• Any subsequent children may not be included in the assessment if the maximum of two children has been reached
• Following a break in entitlement, any new claim will be affected by the new rules

Find out more about tax credits and how your claim may be affected.

Introduced in April 2016, the 'new' state pension doesn't give a passported (automatic entitlement) right to housing benefit and council tax support. This means people need to provide more documents in order to verify their details than they would previously if they'd been in receipt of pension credit. For more information visit the government’s website.