Benefits to pay for a homeless hostel

Hostels offer temporary basic housing. They have furnished bedrooms which might be shared.

Most homeless hostels are operated by specialist housing associations or registered social landlords. Others are run by charities, voluntary organisations, churches and local authorities.

People staying in a hostel usually have to pay rent or a licence fee, as well as service charges. They usually do not ask for a deposit or payments in advance but occupiers can be evicted if they do not pay all of the rent or charges.

People who are on a low income or not working can usually claim benefits towards the rent or licence fee. Some service charges are not covered by benefits, including:

• personal care and support

• meals

• heating and water

• laundry

People usually have to claim housing benefit to get help with the cost of rent for staying in a homeless hostel. Most homeless hostels cannot be paid for by universal credit.

The rules are different for other types of hostel, such as backpacker hostels or other private hostels. These can be paid for by housing benefit or universal credit, depending on the claimant's circumstances.

Homeless hostels usually have entry criteria or restrictions on who can stay there. Many do not accept people who are subject to immigration control and who cannot claim benefits.

There may be other help available for people ineligible for housing or benefits.

People staying in a homeless hostel usually have to claim housing benefit for the rent.

Housing benefit is a means-tested benefit which can be claimed by people who have a low income or are not working. Housing benefit is one of six legacy benefits which are being replaced by universal credit.

It is not possible to make a new claim for housing benefit, except in a few situations.

When a new claim for housing benefit can be made

Most homeless hostels come within the definition of 'specified accommodation', which is excluded from being paid for by universal credit.[1] People staying in any type of specified accommodation have to claim housing benefit instead. This includes:

• ‘exempt accommodation’ provided by a non-metropolitan county council in England, housing association, charity or voluntary organisation where that organisation or someone acting on their behalf provides the claimant with care, support or supervision

• supported accommodation provided by a non-metropolitan county council in England, housing association, charity or voluntary organisation that falls outside the definition of 'exempt accommodation' because the care, support or supervision is not provided by the landlord or on its behalf

• a refuge provided by a local authority, non-metropolitan county council in England, housing association, charity or voluntary organisation for people who have left their home as a result of domestic violence[2]

• a local authority hostel providing care, support and supervision[3]

Temporary accommodation

Temporary accommodation is also excluded from being paid by universal credit when the rent or a licence fee is payable to a local authority or a private registered provider of social housing.[4]

Temporary accommodation is defined as accommodation secured by a local authority in order to meet its duties under a homelessness application or under the various powers available to the local authority under the Housing Act 1996 (for example to make accommodation available to prevent or relieve homelessness or to accommodate pending review). This includes interim accommodation.

People staying in a hostel which has been secured as temporary accommodation have to claim housing benefit for help towards the costs, instead of the housing costs element of universal credit.

People who can claim both housing benefit and universal credit

People who claim housing benefit in these circumstances and are not in receipt of any other benefits might also be able to claim universal credit for their other living costs. Their maximum universal credit entitlement (before any deductions) will not include the housing costs element.

People who are already claiming legacy benefits (such as tax credits, income support, income-related ESA and income-based JSA) can continue to claim these benefits in addition to housing benefit if they wish.

Claiming benefits for two homes

Claimants can sometimes claim housing benefit or universal credit for two homes. The rules for each benefit are different, but both include when the claimant has to leave their existing accommodation due to a fear of violence in the home or by a former partner and they have an intention to return to the accommodation within 52 weeks.[5]

Claimants who qualify under these rules and are already in receipt of the housing costs element of universal credit can claim housing benefit for specified or temporary accommodation. They will be awarded both the universal credit housing costs element and housing benefit in these circumstances.[6]

As a general rule, housing benefit is awarded from the Monday following the 'date of claim', with some exceptions. Housing benefit can be backdated for a maximum of one month for working age claimants if there is a good reason for not claiming benefits earlier.[7]

When the housing benefit claim is for accommodation in a hostel where the rent is payable on a daily basis, the claimant does not need to show good cause for claiming late. In all cases, housing benefit for a hostel is awarded back to the date that the claimant moved in.[8]

Pension age claimants can have their housing benefit claim backdated for a maximum of three months. Pension age claimants do not have to ask for the claim to backdated or to demonstrate a good reason for a late claim. They only need to qualify for housing benefit and be of pension credit age during the period in question.[9]

There are different rules for hostels which do not come under the definition of specified or temporary accommodation, such as:

• hostels provided by a local authority, charity or voluntary organisation which do not provide care, support or supervision

• backpacker hostels

• other private hostels

• private bed and breakfast accommodation

For these, working age people can only claim universal credit for their housing costs, unless they were already receiving housing benefit.

Universal credit has not replaced pension credit or pension-age housing benefit. People over pension age can make a new claim for housing benefit for any kind of accommodation, unless they have a partner who is not pension age.

Existing legacy benefit claimants

Existing housing benefit claimants can continue to claim housing benefit if they have moved to other accommodation within the same local authority area. If they move to a different local authority area, their housing benefit award stops and they have to claim universal credit for their housing costs instead.

A new claim for universal credit stops entitlement to other legacy benefits (such as tax credits, income support, income-related ESA and income-based JSA) and it will not be possible to claim them again.

Claimants who have been receiving legacy benefits can sometimes be entitled to less money when they transfer to universal credit and should get advice before making a claim for universal credit.

Some accommodation costs are not eligible for housing benefit, the housing costs element of universal credit or a discretionary housing payment.

Night shelters

A person is not entitled to housing benefit or universal credit for any overnight charges if they:[10]

• stay in a first-come first-served nightshelter

• cannot remain or leave their belongings in the shelter during the day

• sleep in a dormitory and have no security of tenure

Most night shelters do not charge for a bed. They might charge for other services, such as meals.

Approved premises

A person staying in approved premises, or a 'bail hostel', after being released from prison usually has to pay a small maintenance charge. Any payments for staying in approved premises are excluded from both housing benefit and universal credit.[11]

The benefit cap is the maximum amount of benefits that working-age claimants and their benefit unit can receive.[12]

Housing benefit paid for specified accommodation is disregarded when calculating whether the benefit cap applies.[13]

Housing benefit paid for temporary accommodation is only disregarded when calculating whether the benefit cap applies if the claimant is also receiving universal credit.[14]

Housing benefit or the housing costs element of universal credit which has been paid for other types of hostels is taken into account as usual when calculating whether the benefit cap applies. Claimants might be exempt from the benefit cap for other reasons, such as if:[15]

• they are working and earning above a certain amount

• they recently lost their job

• they are receiving certain benefits

Claimants can apply to their local authority for a discretionary housing payment (DHP) if their existing benefits do not cover their housing costs. Claimants must be entitled to housing benefit or the housing costs element of universal credit to qualify.[16]

DHPs can be used to pay a lump sum towards hostel arrears for a period where the claimant was entitled to housing benefit or universal credit, and the benefit did not cover the rent in full. A DHP cannot cover arrears accrued while not in receipt of these benefits.[17]

DHPs cannot be used for shortfalls that are the result of ineligible service charges.[18]