New Rules – Less Housing Benefit For Those Under Occupying Properties

Wigan Council permits the ‘under occupation’ of properties in certain circumstances. So, for example a couple and one child could be offered a three bedroom house even though they only need two bedrooms. We allow single people to take up the tenancy of a two bedroom flat.

At present anyone in receipt of full Housing Benefit has their rent covered irrespective of the number of bedrooms in their home and whether all the bedrooms are in use.

The Government has now introduced new rules for tenants aged under 62 years who are in receipt of full or partial Housing Benefit and these changes will come into effect in April 2013.

There will be a deduction of

• 15% in Housing Benefit for those tenants who have one spare bedroom and
• 23% reduction for those tenants who have two or more bedrooms that are not being used.

So if your rent is £75 a week, you receive full Housing Benefit and you have one spare bedroom, then your Housing Benefit will be reduced to £63.75 and you will have to find an additional £11.25 a week to cover the rent.

If you are

• in receipt of Housing Benefit, and
• under the age of 62 years

then you must think very carefully before deciding whether to bid for a property that has more bedrooms than you need. You may come to regret it after April 2013 when your income will be reduced if you have spare bedrooms in your home.

Please speak to a member of staff if you have any questions or concerns.