New regulations are expected to be debated in both Houses of Parliament in September / October 2012 to see the introduction of the so called ‘bedroom tax’ from April 2013. The change will mean a reduction in the eligible rent for housing benefit(social rented sector) purposes for those who are deemed to be under occupying their property. Private tenancies already have such restrictions. 670,000 claimants living in the social rented sector (or approximately 32% of all working-age Housing Benefit claimants living in social housing) will be affected. Average reductions will be £13 per week.
Local Authorities are advised-
· July 2012- ‘LAs contact all registered providers and LA landlords asking for information on accommodation size and identify those under- occupying’
· Sept/ October 2012 ‘LA sends letter to affected claimants informing them of potential reduction in HB and asking them to confirm info held / Letter to landlords identifying potentially affected tenants ‘
· April 2013 ‘Size criteria applied / 2nd letter –notification of revised HB’
Click here for the new DWP guidance (HB/CTB Circular A4/2012) giving details and potential advice to clients.