Welfare Reform Booklet

THE GOVERNMENT’S

WELFARE REFORM

&

BEDROOM TAX HOW WILL YOU BE AFFECTED?

FOR INFORMATION & ADVICE CONTACT OUR CUSTOMER ACCESS TEAM 0300 123 1966 (option 3)

WHAT IS THE BEDROOM TAX? From April 2013 the government is changing the way housing benefit is worked out. If you have more bedrooms than the government say you need, you will lose part of your housing benefit, even if you only get a small amount of housing benefit. You could be affected if you are between the ages of 16-61 or if you are sick or disabled.

THE TABLE BELOW SHOWS HOW THE NUMBER OF BEDROOMS YOU ‘NEED’ IS CALCULATED SINGLE ADULT OVER THE AGE OF 16: ONE BEDROOM ADULT COUPLE: ONE BEDROOM PARENT(S) WITH SINGLE CHILD: TWO BEDROOMS PARENT(S) WITH TWO CHILDREN OF SAME SEX UNDER 16: TWO BEDROOMS PARENT(S) WITH TWO CHILDREN OF EACH SEX UNDER 10: TWO BEDROOMS PARENT(S) WITH TWO CHILDREN OF EACH SEX AGED 10-16: THREE BEDROOMS SINGLE PARENT WITH TWO CHILDREN OF EACH SEX AGED 10-16: THREE BEDROOMS

1x 1x 2x 2x 2x 3x 3x

You must be claiming Child Benefit to be entitled to a room for children. If you have an over-night carer who does not normally live with you, then you are entitled to a room for them.

WHAT HAPPENS IF YOU HAVE A “SPARE” BEDROOM? EXAMPLE 1

Your housing benefit will be cut by 14% of your full rent if you have one “spare” bedroom and 25% of your full rent if you have two or more “spare” bedrooms. It is up to you to pay the shortfall in your rent.

Phil and Vanda live with their 3 children in a 4 bedroom house and receive full housing benefit for their rent which is £100 per week. They have 2 girls aged 10 and 13 and 1 boy aged 7.

This family is only entitled to claim housing benefit for a three bedroom house.

Because they live in a four bedroom house their housing benefit will be reduced by £14 per week which they will now have to pay to Great Places.

EXAMPLE 2

Joel is 24 years old and lives in a two bedroom flat. He gets Jobseekers Allowance and full housing benefit towards his rent of £95 a week. He needs the second bedroom as he has joint custody of his daughter, aged 5. His ex-partner currently receives Child Benefit.

Joel is only entitled to claim housing benefit for a one bedroom place as only his partner can claim a bedroom for their child. Joel will have his housing benefit reduced by £13.30 per week which he will have to pay to Great Places.

WHAT ARE YOUR OPTIONS? OPTION 1 - I WOULD LIKE TO STAY

If you can afford to pay the shortfall in your rent you can stay in your home. You can pay your rent by direct debit, rent card, on the internet, or on the phone with a credit or debit card.

OPTION 2 - I WOULD LIKE SOME HELP TO STAY If you would like to stay in your home, but can’t afford to pay your rent, you have a number of options: Manage your money better Great Places can help you to manage your money.

We have a team of staff that can help you to: • Claim all the benefits you are entitled to • Save you money on your bills • Find you cheaper loans • Help you create a household budget • Give advice on how to deal with your debts We can’t always help everyone, but last year we put almost £1 million back in tenants’ pockets!

Share your tenancy This may be an alternative to taking in a lodger but would mean us setting up a new tenancy agreement.

Taking someone else into your home and/ or sharing tenancy rights is a big step and you need to think about this carefully. We can provide more information if you are considering this option.

Take in a lodger A lodger can help you to pay your rent and other bills. You would need to get permission from Great Places, but you would be responsible for finding a lodger and collecting their rent.

Get into work or training Great Opportunities is a team dedicated to helping support Great Places tenants back into work and training. Some of the opportunities we offer are: • Volunteering • Work experience • Staff with Skills - learn skills that will support you back into employment and training through these fun and informative sessions!

• Apprenticeships • Information, advice and guidance

OPTION 3 - I WANT TO MOVE TO A SMALLER PROPERTY Great Places could help you to move to a smaller place that’s cheaper to live in and easier to look after. We can help with the costs of moving, but you will need to meet the qualifying criteria.

However Great Places may not have a property that suits your needs, so if you can find someone to swap with, Great Places staff will do their best to help you to move.

If you don’t know someone who wants to swap with you, a website called www.Homeswapper.co.uk has helped lots of people like you to move to a smaller home.

Registering is easy and free of charge where hundreds of people are waiting to swap with you right now! We can help you increase your chances of finding someone to swap with by helping you upload photos and make your home attractive to others looking to swap.

HOW WILL YOU BE AFFECTED? TO DISCUSS YOUR OPTIONS PLEASE CONTACT OUR CUSTOMER ACCESS TEAM ON

0300 123 1966 (option 3) THEY WILL HELP YOU TO SPEAK TO THE RIGHT PERSON.

OTHER THINGS YOU NEED TO KNOW! The Government is cutting council tax benefit. From April 2013, if you get all or any part of your council tax paid and you are between 16 – 61 it is likely that you will have to pay something towards your council tax. Each council will have different amounts, so you should check with your local council tax department to find out how much you will have to pay.