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UC LHA Shared Rate and PIP Query

dynamite

Hi all,

Under HB, claimants would be awarded the 1 bed rate even if they were living in shared accommodation , if they claimed SDP. UC has abandoned the SDP exception to the shared room rate and the 1 bedroom rate applies whenever there is an award of PIP daily living - Schedule 4, para 29(5) of the Universal Credit Regulations 2013.

It's not clear from the regulations wether the 1 bed rate applies even if they live in shared accommodation.

Could anyone provide some clarity on this? Thank you.

Best regards

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dynamite

Hart86 said:

Yes it applies even if you’re in shared accommodation.
Case managers sometimes get this wrong and you may need to point out the decision maker guide but you should still get the 1 bed rate (or your actual rent, which ever is cheaper)!

It’s the same for families, if they’re private renting a 2 bed but entitled to a 3 or 4 bed, they should get their max entitlement regardless of the size of their property. ❤️

Thanks for that. Could you point me in the right direction of some documentation that makes this clear? I have looked through the guide for decision making documents which states that PIP claimants with daily living are exempt from the shared accommodation rule, but can't find anything that specifically says even if they are in shared accommodation. Thanks!

BenefitsTrainingCo

dynamite,

Yes, the 1 bed rate applies even if you are in fact in shared accommodation.

As you've found it doesn't state this clearly in the Advice for Decision Making on gov.uk, but it is clear from that guidance that the LHA to be applied to you would be the one bed rate because you are exempt from the shared accommodation rate.

See paragraphs F3231 and F3235.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/798301/admf3.pdf

Similarly, in the regulations it just provides that the shared accommodation rate wouldn't apply to you. What accommodation you're actually in doesn't matter. The one bed LHA should apply as the maximum eligible rent.

UC Regs 2013, Schedule 4, paras 27, 28 and 29(5).

Hope this helps; there really is no other way of reading this. Your core rent is what you actually have to pay and what is eligible for HB (ie after ineligible service charges). Your cap rent is the LHA. If your core rent is for shared accommodation that is fine, you'll get either what you pay, or the single bedroom LHA, whichever is lower.

Will

Adrian_Scope

Hello @dynamite and welcome to the community.

I'm glad to see Will and Hart have been able to help you with this. Please let us know if there's anything else we can help you with.