Information for Landlords and Agents - Cornwall for Landlords and Agents Housing Benefi t and...

Information for

Landlords and Agents

www.cornwall.gov.uk

Housing Benefi t and

Council Tax Support

This leafl et provides information to Landlords and agents including information about the Local Housing Allowance scheme. The rules are the same wherever you live in Cornwall.

What is Housing Benefi t?It can often be hard to pay rent. We can give people on low incomes help to pay their rent. This is called Housing Benefi t. Housing Benefi t is a national benefi t which local councils deal with.

Who can claim Housing Benefi t?Anyone on a low income who pays rent for the home they normally live in can claim Housing Benefi t. This may include boarders (people

Information for landlords and agents2

who get meals as part of their tenancy agreement). Only the tenant can claim though, landlords or agents cannot claim for them. To get Housing Benefi t a tenant must:

• be responsible for paying the rent;

• be living in the property as their normal home; and

• make a claim for benefi t.

You and your tenant should not assume that we will pay benefi t until we tell you about an award in writing.

Who cannot claim Housing Benefi t?Tenants cannot usually get Housing Benefi t if they:

• live with and pay rent to a close relative;

• used to live with their landlord as a member of their family;

• are renting a home they used to shared with their ex-partner;

• are responsible for their landlord’s child;

• used to own the property which they now rent;

• live in the home as part of their job;

• live in a care home; or

• are a full-time student.

Housing Benefi t can be considered in some of these circumstances , if your tenant is not sure whether they can get Housing Benefi t, they should make a claim or contact us for advice on 0300 1234 121.

Information for landlords and agents 3

What is Council Tax?Council Tax is a way of paying for our services, such as libraries and schools, emergency services (including police and the fi re and rescue service), street lighting and collecting your rubbish.

Who must pay theCouncil Tax?A person who owns and lives in a property (an owner-occupier) or a tenant aged 18 or over, living in the property is usually responsible for paying the Council Tax.

What is Council Tax Support and who can claim it?We can give people on low incomes help to pay their council tax. This is known as Council Tax Support. Any owner-occupier or tenant aged 18 or over who is legally responsible for paying the Council Tax can claim Council Tax Support.


Who cannot claim Council Tax Support?In certain circumstances, owners who do not live in the property must pay the Council Tax. They cannot claim Council Tax Support. The most common example of this is a house in multiple occupation (HMO).

A HMO is where:

• tenants rent rooms in the property and share facilities, for example, a bathroom or kitchen (or both); and

• each tenant has a separate tenancy agreement.

In a HMO the landlord or owner is responsible for paying Council Tax. However, if you have tenants in the property you can charge them for Council Tax as part of their rent. Please contact us if you need more information or advice.

How does my tenant claim Housing Benefi t and/or Council Tax Support?Tenants who claim Income Support, Income Based Job Seekers Allowance or Income Related Employment & Support Allowance can request a claim for Housing Benefi t and/or Council Tax Support through the Jobcentre on the same claim form. Jobcentre Plus will send this joint claim form to us and will advise us when or if another benefi t has been awarded. If we require any further information from the teanant we will contact them directly.


If your tenant applies for Pension Credit, they will be asked whether they want to claim for Housing Benefi t and Council Tax Support on the Pension Credit application form. The Pension Service will pass details of the claim to Cornwall Council to work out the Housing Benefi t.

Your tenant does not have to be getting Income Support, Income Based Job Seekers Allowance, Income Related Employment and Support Allowance or Pension Credit to get Housing Benefi t and/or Council Tax Support. In these cases they can claim Housing Benefi t and/or Council Tax Support directly from us by fi lling in a claim form. The form is available to download on our website www.cornwall.

gov.uk or from us by phone 0300 1234 121. Once they have fi lled in the form they must send it back to us as soon as possible.

Your tenant can also submit a claim via our E-Claims function on our website at www.cornwall.gov.uk/benefi ts. They will need to create an account and log on to our Self Service option. If your tenant is a student or self employed it is advisable that they submit their claim by paper form due to the complicated nature of these claims. If you or your tenant wants any advice please contact us on 0300 1234 121.

We can also take claims over the phone, this is called a Tele-claim. To do this just ask your tenant to call us on 0300 1234 121 to book an appointment.

If you want more help or advice you can visit our websitewww.cornwall.gov.uk

or contact us on 0300 1234 121.


What information do you need to work out Housing Benefi t and/or Council tax Support?When we get a claim for Housing Benefi t or Council Tax Support (or both), we need to know;

• the tenant’s and their partner’s income and savings (unless they are on Income Support, Income Based Job Seekers Allowance or Income Related Employment & Support Allowance or Pension Credit);

• the tenants family circumstances, including details of who lives with them; and

• proof of the tenant’s rent liability

Your tenant will also need to provide proof of their and their partner’s National Insurance number and identity. This could be, for example, a passport, birth certifi cate or driving licence.


What proof of rent doyou need?We need proof of the rent your tenant has to pay. This is usually on a tenancy agreement, but could also be on a rent book or a letter from you. The proof must include:

• the full address of the property they are renting;

• your full name and address (if you are the landlord);

• the full name and address of any agent (if applicable);

• the full name of all the tenants who live in the property;

• the start date of the tenancy;

• the amount of rent you charge them;

• how often they pay the rent (for example, ever week, every four weeks or every month);

• what is included in the rent (for example, meals, gas, electricity, water charges along with the amount for each of these services);

• the date they signed their tenancy agreement;

• how long their tenancy will last;

• your signature; and

• your tenant’s signature.

It is also useful to give us details of any rent the tenant owes you.


Will Housing Benefi t cover the full rent?Housing Benefi t may not cover the full rent you charge, for most new claims the amount of Housing Benefi t we can pay is based on Local Housing Allowance. Your tenant will have to pay any amount left over.

What is Local Housing Allowance?We use Local Housing Allowance to work out the maximum Housing Benefi t your tenant can receive. Introduced by the government in April 2008 Local Housing Allowance is a fl at rate allowance based on where the property is and how many people live in the household.


Who is not aff ected by Local Housing Allowance?Local Housing Allowance (LHA) applies to most new claims for Housing Benefi t, and to tenants who have changed their address or have had a break in their claim on or after 7 April 2008.

LHA does not aff ect:

• tenants of Cornwall Council

• tenants of registered social landlords (housing associations);

• some supported housing tenancies;

• tenancies which started before 15 January 1989;

• tenants living in caravans, houseboats or hostels; or

• where cooked meals are included as part of the rent charge.

These groups continue to have their maximum Housing Benefi t worked out under the previous rules used by the Rent Service.




How is Local Housing Allowance set?From April 2013 Local Housing Allowance rates will be set annually at the lower of either:

• the previous LHA uprated Consumer Price Index (CPI) at the previous September; or

• the 30th percentile of the local market rents at the previous September.

The current rates for Cornwall are shown on our website atwww.cornwall.gov.uk and are updated in April each year.

Can I or my tenant appeal if we are not happy with the Local Housing Allowance rate applied to my house?No, it is not possible to appeal against the Local Housing Allowance rate.


Number of roomsWe will decide how many rooms, according to Housing Benefi t rules, your tenant will need. If they live in one room and share some facilities (for example, a kitchen or bathroom) with other people there is a special LHA rate that will apply. They will also receive this rate if they are under 35 and live on their own.

If the above does not apply to them, we will work out the number of rooms the government says they need as shown below:

One bedroom for each of the following.

• a couple

• someone who is aged 16 or over

• two children of the same sex until they reach age 16

• two children of any sex who are under the age of 10

• a child (aged under 16)

• an overnight carer (see below)

We will take into account the cost of an extra bedroom if your tenant or their partner needs overnight care, and there is a bedroom in the property that the carer uses for overnight stays as part of caring for them (this applies to all relevant tenants, whether they are under LHA rules or not). Please contact us for advice on this.

The total number of bedrooms we can take into account when considering a maximum award of Housing Benefi t under Local Housing Allowance is four, even if the property has more than four bedrooms we cannot pay for any more than four.


Each person in the household is only counted once (in the fi rst group that they come into). We do not count everyone in the house when working out how many rooms they need. We count the tenant and their partner and any children or young people they are responsible for. If the tenant has any other adults who are not boarders or lodgers, we also count those. However, we do not count foster children or joint tenants.

How much Housing Benefi t will my tenant get?If your tenant gets Income Support, Income Based Job Seekers Allowance, Income Related Employment and Support Allowance or Guaranteed Pension Credit, they will normally get the maximum amount of Housing Benefi t based on the maximum rent level, less any non dependant deductions which may apply.For more details about non dependant deductions please contact us on 0300 1234 121.

If your tenant does not get one of the benefi ts mentioned, the amount they will get depends on the size of their household (how many people they live with) and their income. If the tenant, or any of their family is disabled, they may get more benefi t.

The size of the tenant’s household will aff ect the ‘applicable amount’ for their claim which is set by the Government. The applicable amount is the lowest amount of money the Government thinks the tenant needs to live on.


My tenant’s rent is higher than the Local Housing Allowance.The maximum benefi t your tenant will receive is the Local Housing Allowance rate for the size of their household. If their rent is more than this amount, it is up to them to make up any shortfall. If you think they are having diffi culties tell them to speak to us or to a Citizens Advice Bureau.

My tenant’s rent is lower than the Local Housing Allowance.Tenants will not get any more Housing Benefi t than the rent they are charged.

I have decided to increase the rent; will my tenant’s Housing Benefi t also increase to cover this?There is a new provision from April 2013 which allows us to consider any increases or decreases in rent, but if the Housing Benefi t we already pay is the maximum Local Housing Allowance rate then we cannot award any more.


What if my tenant is a student?Most students cannot claim Housing Benefi t and/or Council Tax Support but some students may get help if they are:

• single parents;

• part of a couple with dependant children;

• disabled; or

• getting Income Support, income based Job Seekers Allowance or Income Related Employment and Support Allowance.

If your tenant is a student and wants to know if they will get any benefi t, they should contact us for advice on 0300 1234 121.

When will the Housing Benefi t start?We will normally pay benefi t from the Monday after a tenant makes their claim to us or to Jobcentre Plus (for Income Support, Income Based Job Seekers Allowance or Income Related Employment and Support Allowance) or to the Pension Service (for Pension Credit).

If they are not sure whether to claim they should send us the claim form straight away, even if they are waiting for supporting documents, or they may lose money.


How long does it take to sort out a claim for Housing Benefi t?We should pay Housing Benefi t within 14 days of getting all the information we need to work out the benefi t. However, Housing Benefi t will be delayed if we are waiting for information.

How is Housing Benefi t paid?Housing Benefi t will almost always be paid to the tenant. It is their responsibility to pay you their rent. There are a few circumstances where we will pay Housing Benefi t to you. We will only do this if we think your tenant will have serious problems with paying their rent and managing their fi nances. If you think this may be the case with one of your tenants, you should contact us for advice.

What can I do if my tenant has rent arrears?The Housing Benefi t regulations say that if a tenant owes rent for eight weeks or more, we must pay you direct, unless we consider it in the tenant’s best interest not to do so. Please write to us if your tenant owes you eight weeks rent or more, so we can decide what action to take.


What happens if the tenant’s circumstances change?You and your tenant should tell us straight away, in writing if possible, about any change that may aff ect their benefi t. If your tenant is on Income Support, Job Seekers Allowance or Employment & Support Allowance they must tell the Department of Work and Pensions as well. If they receive Pension Credit, they will also need to tell the Pension Service straight away if their income and/or savings change. The Pension Service will then tell us if their award has changed.

Typical examples of changes in a tenant’s circumstances are if:

• they change address;

• their rent changes;

• the size of their family changes;

• an adult moves in or out of the property;

• the tenant stops getting Income Support, Job Seekers Allowance or Employment and Support Allowance; or

• the tenant’s income changes.

You or your tenant must report all changes to us straight away. It is an off ence under Section 14 of the Social Security Administration (Fraud) Act 1997 if you or your tenants do not tell us about a change in their circumstances which might aff ect their entitlement to Housing Benefi t and/or Council Tax Support.


How do I report Benefi t fraud?If you believe that someone is claiming Housing Benefi t or Council Tax Support they are not entitled to, please phone our Fraud Hotline on 0800 7316125 or the National Fraud Hotline on 0800 854440 for any other benefi ts.

Please give us as much information as you can to help us investigate the situation. Any information that you give us is confi dential. You do not have to tell us who you are if you prefer not to.

What if you have been paid too much Housing Benefi t?If we have paid too much benefi t Housing Benefi t, we can ask you or your tenant to pay the money back. We may recover the overpayment by:

• taking money from your tenant’s benefi t;

• taking money from the payment we make to you for other tenants; or

• sending a bill to you or your tenant.


What if I or my tenant does not agree with any decision you have made?If you or your tenant do not agree with our decision, you may be able to appeal. The appeal rights are diff erent for tenants and landlords.

You can only appeal against our decision on:

• whether we will pay benefi t direct to you or not, or

• whether we decide you should repay any overpayment or not.

You cannot appeal about the amount of benefi t awarded or the dates we have awarded it for.

Tenants can appeal against any decision we have made about their benefi t claim. Information about their right to appeal is on the decision letters we send out.

You or your tenant must appeal in writing within one month of the date on the decision letter. You must tell us the reasons why you think our decision is wrong.




What information will you give me about my tenant’s Housing Benefi t?If we pay Housing Benefi t to your tenant, we cannot give you any information about their claim, unless they have given us permission in writing to discuss their claim with you. We cannot even tell you if they have made a claim.

If we pay their Housing Benefi t to you, we can tell you:

• the date the benefi t will start and end;

• the amount of benefi t they get every week and how often we pay it;

• the amount we are taking from their benefi t to recover an overpayment; and

• details of any cheque we pay directly to you.

If we pay your tenant’s Housing Benefi t direct to your agent, we cannot give you any information. You will have to ask your tenant or agent for any information you need.


Where can I get more advice?If you want more information you can visit our websitewww.cornwall.gov.uk/benefi ts, or call us on 0300 1234 121.

Independent adviceIf you need independent advice, contact your local Citizens Advice Bureau. You can visit their website www.adviceguide.org.uk or fi nd their phone number and other local advice agencies in your local phone book at your local library.


Notes


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Printed on recycled paper. JN32968 March 2013

If you would like this information in another format or language please contact:Cornwall Council, County Hall, Treyew Road, Truro TR1 3AYTelephone: 0300 1234 100Email: [email protected]

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