housing problem?

I moved into a rented property 4 years ago and have been paying my privately owned house rent by using the profits from the sale of my maritable home.I am currently living in a 3 bed property as my daughter was living with me as well as my son.She has now moved out. My money is dwindling as the only income i have is child maintenance and severe disability benefit.Due to the new housing laws I am assuming I should look for a smaller place(2 beds) and start to apply for housing benefit .I am worried that I wont gt it and wont find anywhere smaller or cheaper to rent ,any help /guidance or suggestions?

Your potential problem is that you are living off capital.

If you have capital in excess of £16,000 you will be disqualified from all means tested benefits, including housing benefit. Capital above £6000 will reduce the benefit but not eliminate it altogether.

That, of course, is the policy objective ; to force you to use your capital before you claim benefits.

We are of course both aware of the so called bedroom tax, which of course isn''t really a tax as such.

I don''t do CAB these days but would suggest that you see a CAB and get advice on the current rules before your situation becomes critical. A benefit check while you are at it would do no harm.

LMM

Assuming that you are living in private rented accommodation, there is a set maximum amount of housing benefit that a council will pay, which depends on the rental prices in your area. It''s called Local Housing Allowance (LHA)

You can usually find this by googling LHA rates [your council]. If you and your son are living in your house (and you get child benefit for him) then you will be entitled to the 2 room rate. You can then work out what this would be monthly by multiplying the amount by 52, then dividing by 12. If that amount is lower than your current rent then you would have to make up the shortfall yourself so you might need to consider moving, while if it''s lower then you probably won''t need to move just because you have an extra bedroom in private rented accommodation

If you live in a council or housing association property, the rules will be different and having that spare room will make you eligible to pay the "bedroom tax." If this is the case you may be able to apply for a discretionary housing payment (DHP), for which you''ll have a higher priority because of your disability, though if you have any capital then it''s extremely unlikely you''ll receive this until the capital is gone.

As LittleMrMike pointed out above, the level of capital remaining to you could have an effect or exclude you from housing benefit completely so check with CAB or do a benefits check on www.entitledto.co.uk

Also, you should be wary of the benefits cap, which may affect you in the coming months, though it depends on what other benefits you receive.

EDITED TO ADD: How old is your son? You don''t indicate that you''re getting child benefit or tax credits, though if you''re receiving child maintenance I would expect that you ought to be getting both of these.

I think bedroom tax only counts for council rented property not privately rented properties! It might affect the amount of housing benefit you get but that''s based on income - I rent privately - 2 of us in a 3bed property- get housing benefit and council tax relief - bedroom tax isn''t relevant. Visit CAB to clarify these issues and check what if any other benefits you can claim.

Thanks so much for that information.My son is 15 and in receipt of disability living allowance,and have applied for tax credit.I shall make an appointment for the CAB.

Hi,

I would make an appointment at your local CAB as they are very busy and often you will have to wait a week or two for an appointment.

I think I am right in saying that if your Son is receiving Disability Living Allowance, the benefit cap won''t affect you, as you will be exempt on the grounds that you receive Disability. However, it may depend what level you are receiving.

If you receive the higher rate of Disability then your Tax Credits will also include an additional payment to reflect the Disability. Have you claimed for Carers Allowance?

Take all your paperwork with you to your appointment at the CAB and they will work all your entitlements out for you.

Good luck.x