about disability rights uk advisers benefits coalition on charging contact da disability benefits consortium home links membership policy and campaigns search shop site map skill website support da tax credits what's new

Supporting people into work: the next stage of housing benefit reform

Background

This consultation sought views to inform Government reforms of Housing Benefit. The aim of the reforms are to ensure that housing benefit is better able to help people into work, is fairer, more efficiently delivered and represents good value for money for the taxpayer.

Main points of the consultation

The consultation is 41 pages long and has 15 numbered questions. It also welcomes on other aspects of the outlined reform, including suggestions for the treatment of housing benefit in London.

The reforms are seen as a transitional stage with the Government's long term aim to fully integrate housing benefit into the benefits and tax credits system (see paragraphs 7.3-7.4).

The main proposals are

• Transition into work payment - Fixing HB payments at the out-of-work rate for three months when an individual moves off benefits into work. See paragraphs 4.6-4.10.

Question 1. Do you agree that a Transition into Work Payment will help to ease the move into work?

Question 2. What would be the main features of such a scheme to secure maximum impact and minimise risk?

• Fixed period awards of housing benefit - These would last up to six months. See paragraphs 4.11-4.17.

Question 3. Should we introduce fixed period Housing Benefit awards for those customers in work?

Question 4. What would be the main features of such a scheme to secure maximum impact whilst avoiding any perverse incentives and minimising risk to those whose income falls significantly?

• Incentives off benefit - Ensuring the benefits system does not support customers to be housed in very high-cost accommodation that would be unaffordable if they moved off benefit. The main proposals are outlined in paragraph 5.13.

Question 5. What is the level of rent above which it would not be reasonable for the taxpayer to offer support?

Question 6. How should we set benefit rates at an appropriate level so that they reflect the housing choices of other working households not eligible for benefit?

Question 7. How could we set benefit rates to reflect different market conditions in different areas?

Question 8. Would excluding the most expensive rents when setting Local Housing Allowance rates result in fairer levels of benefit?

Question 9. How should we set appropriate Housing Benefit areas?

• London rents - See paragraphs 5.17-5.18.

Unnumbered question

"We want your views on how we can address the issue of high rents and benefit rates in London through applying the banded approach or capping rates at the level affordable by other working households not eligible for Housing Benefit."

• Size criteria - Ways to improve the rules regarding size criteria to make them more appropriate to meet the needs of families, especially lone parents and the disabled. See paragraphs 5.19-5.22.

Question 10. Should the Local Housing Allowance size criteria be adjusted?

Question 11. Should Housing Benefit be extended to provide for an extra bedroom where there is an established need for a room for a non-resident carer?

Question 12. Is there a case for providing for an extra bedroom in the size criteria to help parents who need to care for non-resident children if there is evidence that working households can do so?

• Improving standards of rented property and direct payments to landlords - See paragraphs 6.1-6.11.

Question 13. Should Housing Benefit entitlement be conditional on property meeting certain standards?

Question 14. Should a direct payment to the landlord be linked to the property meeting a certain quality or energy standard?

• Local lettings agencies and housing benefit - See paragraph 6.12.

Question 15. We would welcome views on how Housing Benefit can contribute to the delivery of improvements in the standard of private sector housing for tenants.

Closing date for responses

The closing date for responses was 22 February 2010.

More information

• dwp website

Note: for pdf files you will need to download adobe acrobat reader. To convert the pdf to alternative formats or for more information on accessibility go to access adobe.

back