Questions ref Housing element of Universal Credit

kenny1967

Hi,

The home I live in atm is with a good old work friend who has allowed me to live there rent free in his home which is mortgaged. Although I pay towards bills etc

I have lived there for 10 + years.

Unfortunately he is moving abroad with his partner & the house is going up for sale.

I am 58 years old & presently claiming ESA (Support Group) & Universal Credit. I am paid both after transitioning over to UC in July. As I was not paying rent (the type of mortgage my friend has did not allow him to rent the property anyway) I did not claim the housing element.

I have regisitered with my local authority housing office for rehousing options. However alongside that I am now looking a private rental flats & will at some point need to claim the housing element. As the whole rental system has changed I have brushed up on important things I need to consider like the bedroom tax & my LHA. It seems a daunting minefield.

My understanding is if I secure a 1 bedroom flat I will receive the full LHA for a 1 bedroom towards my rent. But if I can't secure a 1 bedroom & get a 2 bedroom flat I will be penalised with the bedroom tax with a deduction of 14%. For example in my area the LHA for a one bed flat is around £113 pw, but if I can ony secure a 2 bedroom that £113 would reduce to £97.18

My first question is I assume that the 14% deduction is from the 1 bedroom LHA (because I assume as a single man, Im not eligible for the 2 bedroom rate)….is this correct ??

I'm aware I would need to find the shortfall towards the rent. And Im also aware of the local authority discretionary payment which you can claim to help towards that (subject to the local authority having sufficient funds)

My other questions are whilst Im aware I apply for the housing element via my UC account, how long on average does it take for me to receive my first housing element payment ? Do they offer of assistance towards a bond, my mother has offered to give me this money but I just want to know if any other options are available to help towards it?

Sorry for the long post, but since I havent rented now for over 15 years this is all brand new to me. Much advice appreciated in advance.

OverlyAnxious

Hi,

Bedroom tax only applies to social housing (Council or Housing Association etc), not private rentals. You will not have any UC deductions for privately renting a 2-bed property with 1-bed LHA.

The Housing Element of UC is paid at the same time as your normal UC. So it could be up to one month after moving in before you receive the first HE payment. UC do not offer any assistance towards the deposit.

kenny1967

Thank you so much for your response. My Universal Credit Assessment payment period is from the 21st to the 20th of the next month.

I have found a suitable 2 bed flat, but trying to work out when would be the best time to start the Tenancy Agreement to best work with my usual payment date / UC assessment period.

I was considering around about the 8th November as date to sign Tenancy agreement. My thinking is this gives UC time before my next payment due on the 27th November?

Thanks again with answering my previous questions. If you have any advice with regards to best timing to start Tenanacy agreement with my UC Assessment paeriod/payment date, it would be much appreciated.

OverlyAnxious

https://forum.scope.org.uk/discussion/comment/1079973#Comment_1079973

You're welcome.

Some landlords ask everyone to pay rent on the 1st of each month. So it might not matter too much when you sign the agreement with regard to future payments.

The important thing to remember with UC is that it gets calculated in full assessment periods only. So no matter which date you actually move, as long as you are liable to pay rent on the final day of your assessment period (20th in your case) then you will receive the full month of rent through Housing Element.

For this reason, I would say you must move in before the 20th November, in order to get this months payment. However, I don't think it really matters how many days before that you move in.

kenny1967

Thank you so much OverlyAnxious, your advice has been so helpful. For me this whole new UC system (well for me anyway) is a bit of a minefield to work out.

My move in date / tenancy agreement will be between 8th - 12th.

Much appreciated 😊