Paying for accommodation

This page explains how young people can get help paying for rented accommodation when they are on a low income, and how advisers can help them to access this help.

What the law says

Can young people get housing benefit?

Most young people who have to pay rent on accommodation can apply for housing benefit from the council, with the exception of:

• most care leavers aged 16 or 17 (social services will assist them with housing costs)
• most full-time students
• some people who are recent migrants
• people who pay rent to a close relative who lives with them
• where the rent liability was created with the express purpose of taking advantage of the housing benefit scheme (for example, where a person is living rent free with a friend, but the friend starts to charge them rent so they can claim housing benefit)
• people who have savings of more than £16,000.

The amount of benefit that a young person is entitled to will be decided based on the 'eligible rent' on their accommodation and their income.

What is eligible rent?

Eligible rent will not include:

• some service charges
• support charges (but the cost of these may be met by Supporting People)
• any payments towards rent arrears
• payments for a deposit.

The eligible rent may also be restricted by the rent officer, who will determine a reasonable market rent for a property that is appropriate for the claimant's needs.

What is the 'single room rent'?

For single, childless people under 25, the eligible rent will be restricted to the reasonable market rent for a single room, unless:

• their accommodation is rented from the council or a housing association
• they are under 22 and have been in care or looked after by social services at some time after they were 16
• they live with one or more non-dependants
• they qualify for a severe disability premium in the calculation of their benefits
• they live in a care home or independent hospital
• they live in some types of hostel.

How is housing benefit calculated?

The amount of benefit that a young person is entitled to will be calculated using the following formula:

eligible rent - 65%(income - applicable amount) - any non-dependant deduction

Income includes an assumed income for any savings or capital between £3,000 and £16,000.

The applicable amount is the amount of Income Support or income-based Jobseekers Allowance that a person would be eligible for if they were not working and claiming.

A non-dependant deduction is an amount deducted from the benefit if they live with anyone else on a non-commercial basis.

If the young person is in receipt of Income Support or income-based Jobseekers Allowance, or their income is less or equal to the applicable amount, then they will get full housing benefit (unless there are any non-dependant deductions).

When will housing benefit be paid?

The council should make a decision as to a young person's entitlement to housing benefit within 14 days of receiving a claim (and all the information and evidence it reasonably requires to decide the claim), and notify them of the decision as soon as the claim is decided. A payment of housing benefit should also be made within 14 days.

If the council has not made a decision within 14 days, a payment on account must be made (as long as the lack of decision is not due to the young person failing, without good cause, to provide necessary information and evidence, and they do not live in council housing). The amount of the payment on account will be a reasonable amount to be decided by the council based on the information available to it.

Can housing benefit decisions be appealed?

If the young person does not agree with a decision as to whether or how much housing benefit they are entitled to, they may be able to ask the council to reconsider the decision, or appeal against it. This should normally be done within one month of the decision.

What is local housing allowance?

Eighteen 'pathfinder' councils piloted a replacement for the housing benefit scheme, the local housing allowance scheme. This has now been roilled out nationally, and applies to most new assured shorthold tenancies with private landlords.

The main difference is that there isbe a flat-rate allowance. Households of a certain size are eligible for a certain amount of benefit no matter what type of accommodation they live in and how much their rent is. If their rent is lower than this rate, they can keep any left over benefit. Most young people are still only be entitled to a single room rent.

How can I help?

The Housing Benefit Regulations are complex, and the above is intended as a brief introduction only. We recommend that, if you are likely to be dealing with a lot of housing benefit queries, you attend appropriate training, or that you seek specialist advice.

Help with an application for housing benefit

Young people can be confused by housing benefit application forms; often, where a young person needs to apply for housing benefit, the most helpful thing you can do is help them to complete the form and gather the evidence that the council needs to assess their claim. Forms are available from the council, and you may want to keep a small stock of forms at your office. If you do this, however, ensure that they are regularly updated.

Young people may also need to help understanding housing benefit decision letters.

Ascertain if accommodation is affordable

If a young person is considering moving into new accommodation, and wants to know if it will be affordable for them, you can ask the council for a pre-tenancy determination. A pre-tenancy determination will tell them the eligible rent, but not how much benefit they will be entitled to.

You can work out a young person's entitlement to housing benefit for them. However, we would only recommend doing this if you have attended appropriate training or have experience of doing benefit calculations.

Look into other sources of financial help

If the young person needs help with any element of their accommodation costs that is not covered by housing benefit, then you can help them apply for the following:

• Discretionary Housing Payments: these can be applied for to help where the eligible rent is restricted, or the young person's income is too high to cover the full rent, but the young person still has trouble paying the rent. They will not cover ineligible charges, and are awarded only for a time-limited period. Each council will have different procedures for applications for Discretionary Housing Payments; ask the council for details. Note that, because payments are discretionary, there is never a guarantee of payment.
• Discretionary Social Fund payments: if the young person is on a low income, they may be able to get a Community Care Grant, Budgeting Loan, or Crisis Loan to help with some non-eligible housing costs. Social Fund payments are administered by the DWP; an application form can be obtained from the local Jobcentre Plus or DWP office.
• Deposit guarantee schemes: some local authorities and other organisations run schemes whereby they will underwrite deposits, either by paying the deposit and recovering it at the end of the tenancy, or with a paper bond. The council should be able to give details of any local schemes.
• Charitable trusts and funds: some will give grants to young people who cannot afford their accommodation. Try looking on the Grants for Individuals website, produced by the Directory of Social Change.
• Homelessness prevention: some councils will give grants or loans to help people to sustain their accommodation where they are threatened with homelessness because they are having difficulty affording their accommodation.