Cost of Living Payment - useful information

poppy123456

noscere said:

Housing Benefit
Many people do not realise that they're eligible for housing benefit! Depending upon your income, this can cover up to 100% of your monthly rent! What's more, if you are eligible for any part of your housing costs, you'll also be eligible for council tax benefit.

No, that's not quite correct. New claims for housing benefit are no longer possible for working age people unless they are living in either supported or temporary housing. All areas are now UC so it would be this they would need to claim for help with any rent, which is known as housing element for UC. Housing benefit and housing element are completely different.

noscere said:

It's not always made clear when you apply for Universal Credit—since you have to apply seperately. Housing Benefit & Council Tax benefit is administered by your local authority (council), not the DWP. It may be paid by DWP (I have to confirm my housing costs each year through my UC journal) but you apply for it via your local authority.

Umm no, that's not correct either. Please see my comment above. Housing element is part of UC, which is administered by DWP not your LA. Council Tax reduction needs to be claimed form your LA. I have no idea how you would apply for housing element with your LA.

noscere said:

FYI, if you recieve Universal Credit, and are also in paid employment, then you continue to recieve housing benefit even if your Univsersal Credit payment is reduced to zero! The sliding scale for earned income reduces your monetary allowance first, and your housing costs last.

Oh dear, i'm afraid that's not correct either. When claiming UC if you don't have the work allowance any earnings you receive each month will reduce your whole UC by 55% and not just each part of it. If your UC is reduced to zero because of earnings then you're not entitled to any payments, there will be no entitled to housing element either if the award is reduced to zero because of earnings. No idea what you mean by "sliding scale" See link https://www.gov.uk/universal-credit/how-your-earnings-affect-your-payments

noscere

Sorry for multi-posting, I've just remembered something else. When I was made redundant during the 2021 lockdown, I had to claim Universal Credit (when I had claimed prior to this, it was JSA).

Now, whilst I was eligible for housing benefit and council tax benefit, these needed to be claimed seperately, as I indicated above.

What happened to me was scary! 12 months or so after my claim for Universal Credit had begun, I started getting calls from a debt collection agency for the sum of £2-3,000! WHAT!? I don't owe South Lanarkshire Council anything!?

Upon investigation, it turns out that they had not received my application for Council Tax benefit. Neither had they applied the automatic single occupant discount!

My housing officer sorted it all out for me, and I ended up owing them less than £100. It is worth mentioning also, that in Scotland, your water rates are collected by the local authority via your Council Tax. Unlike England, where water rates are billed direct by the regional water company, and both homeowners & tenants pay the company direct, Scottish Water bill & are paid by the council instead. Another example of postcode lottery UK!

Worth knowing, Scottish residents, in case you ever wonder why you're being chased for council tax even though you're recieving 100% benefit for this!

noscere

poppy123456 said:

noscere said:

Housing Benefit
Many people do not realise that they're eligible for housing benefit! Depending upon your income, this can cover up to 100% of your monthly rent! What's more, if you are eligible for any part of your housing costs, you'll also be eligible for council tax benefit.

No, that's not quite correct. New claims for housing benefit are no longer possible for working age people unless they are living in either supported or temporary housing. All areas are now UC so it would be this they would need to claim for help with any rent, which is known as housing element for UC. Housing benefit and housing element are completely different.

noscere said:

It's not always made clear when you apply for Universal Credit—since you have to apply seperately. Housing Benefit & Council Tax benefit is administered by your local authority (council), not the DWP. It may be paid by DWP (I have to confirm my housing costs each year through my UC journal) but you apply for it via your local authority.

Umm no, that's not correct either. Please see my comment above. Housing element is part of UC, which is administered by DWP not your LA. Council Tax reduction needs to be claimed form your LA. I have no idea how you would apply for housing element with your LA.

noscere said:

FYI, if you recieve Universal Credit, and are also in paid employment, then you continue to recieve housing benefit even if your Univsersal Credit payment is reduced to zero! The sliding scale for earned income reduces your monetary allowance first, and your housing costs last.

Oh dear, i'm afraid that's not correct either. When claiming UC if you don't have the work allowance any earnings you receive each month will reduce your whole UC by 55% and not just each part of it. If your UC is reduced to zero because of earnings then you're not entitled to any payments, there will be no entitled to housing element either if the award is reduced to zero because of earnings. No idea what you mean by "sliding scale" See link https://www.gov.uk/universal-credit/how-your-earnings-affect-your-payments

You say this is not correct. I'm claiming Universal credit as of 2021 and I detail the exact process I went through.

Housing benefit and council tax benefit comes under the umbrella of Universal Credit, may be, but I had to fill out additonal forms for this. As the staff at the jobcentre told me at the time, "we are transitioning to Universal credit and the process might become more streamlined in future but at the moment we're universal credit and not."

noscere

Sliding scale- it's not a hard limit- you can earn up to X and not lose any payment. Then, if you go over the allowed earning, then for every X additonal pounds earned, your payment goes down by Y (I forget the exact figures, but it's something like for every pound, lose 60pence, until you reach the hard cap when it becomes zero). This was to meet the Tory ideal that working should never pay less than benefit.

For housing benefit, this also goes down, but at a higher threshold than any money paid direct to you. Of course you're right, there's a hard limit when all entitlement becomes zero.

poppy123456

noscere said:

poppy123456 said:

noscere said:

Housing Benefit
Many people do not realise that they're eligible for housing benefit! Depending upon your income, this can cover up to 100% of your monthly rent! What's more, if you are eligible for any part of your housing costs, you'll also be eligible for council tax benefit.

No, that's not quite correct. New claims for housing benefit are no longer possible for working age people unless they are living in either supported or temporary housing. All areas are now UC so it would be this they would need to claim for help with any rent, which is known as housing element for UC. Housing benefit and housing element are completely different.

noscere said:

It's not always made clear when you apply for Universal Credit—since you have to apply seperately. Housing Benefit & Council Tax benefit is administered by your local authority (council), not the DWP. It may be paid by DWP (I have to confirm my housing costs each year through my UC journal) but you apply for it via your local authority.

Umm no, that's not correct either. Please see my comment above. Housing element is part of UC, which is administered by DWP not your LA. Council Tax reduction needs to be claimed form your LA. I have no idea how you would apply for housing element with your LA.

noscere said:

FYI, if you recieve Universal Credit, and are also in paid employment, then you continue to recieve housing benefit even if your Univsersal Credit payment is reduced to zero! The sliding scale for earned income reduces your monetary allowance first, and your housing costs last.

Oh dear, i'm afraid that's not correct either. When claiming UC if you don't have the work allowance any earnings you receive each month will reduce your whole UC by 55% and not just each part of it. If your UC is reduced to zero because of earnings then you're not entitled to any payments, there will be no entitled to housing element either if the award is reduced to zero because of earnings. No idea what you mean by "sliding scale" See link https://www.gov.uk/universal-credit/how-your-earnings-affect-your-payments

You say this is not correct. I'm claiming Universal credit as of 2021 and I detail the exact process I went through.

Housing benefit and council tax benefit comes under the umbrella of Universal Credit, may be, but I had to fill out additonal forms for this. As the staff at the jobcentre told me at the time, "we are transitioning to Universal credit and the process might become more streamlined in future but at the moment we're universal credit and not."

I'm sorry but again you're not correct. Housing benefit is paid by your local authority. Housing element is paid with your UC and administered by DWP. As i advised, they are 2 completely different benefits. Please see link for proof that my advice is indeed correct. https://www.entitledto.co.uk/help/housing-overview-universal-credit

More here. https://www.turn2us.org.uk/get-support/information-for-your-situation/universal-credit-uc-housing-costs-element/what-is-the-universal-credit-uc-housing-costs-element

Council Tax reduction is from your local Authority and not UC.

noscere

The council had to process my claim for housing benefit and council tax benefit. Not the jobcentre.

Which is why I ended up being chased by Stirling Park debt collection agency over a matter of an imaginary £2,753 council tax debt.

Which, ahold have been covered by my application for council tax benefit. Which was not processed by South Lanarkshire Council correctly—funny, the housing benefit one was! Made sure they got paid their rent, didn't they? 😂—a world of pain for me, thankfully only temporary! Alls well that ends well, they reduced this bill to around £100, which was the water rate element, as this is not covered by benefit.

Now, as I said, it may be classed as Universal Credit, and as I also said, it appears in my UC journal and I have to confirm housing costs each time they go up, but I had to apply for the benefit with a seperate form (branded South Lanarkshire council, not Jobcentre)—I I did fill in this form in the jobcentre, which I guess why their staff jokingly refer to it as "Universal Credit and not."

In principle, Universal credit is supposed to replace all these seperate benefits! You're entirely right—and not 🤣😭

In practise, different areas are just doing what they've always done
 Until they don't any more? It's a minefield!

Some areas have not even switched to Universal Credit yet. I'll be the last one to slate Universal Credit—it's a bloody good idea, and been a long time coming—but in practise, and I really do hesitate before saying this, it's not fit for purpose! It's better than anything that existed previously though, and I guess that's all we can hope for?

poppy123456

noscere said:

Sliding scale- it's not a hard limit- you can earn up to X and not lose any payment. Then, if you go over the allowed earning, then for every X additonal pounds earned, your payment goes down by Y (I forget the exact figures, but it's something like for every pound, lose 60pence, until you reach the hard cap when it becomes zero). This was to meet the Tory ideal that working should never pay less than benefit.

For housing benefit, this also goes down, but at a higher threshold than any money paid direct to you. Of course you're right, there's a hard limit when all entitlement becomes zero.

You're talking about the work allowance and not everyone will be entitled to this. You're entitled to this if you either have children on your claim or you've been assessed as having either LCW or LCWRA. If none of those apply then earnings received each assessment period will reduce your UC by 55%  (55p for every £1) known as the earnings taper rate. Please see link. https://www.gov.uk/guidance/universal-credit-and-earnings

If entitled to the work allowance and you claim for help with the rent then earnings of up to £379 per month can be received before the deductions apply. If you don't claim for help with the rent the your work allowance is £631/month.

I realise you mean well but please be careful of the advice you're giving because many of our members reply on advice from forums such as this because they can't get advice anywhere else. It's important that you don't give misleading advice.

poppy123456

noscere said:

Now, as I said, it may be classed as Universal Credit, and as I also said, it appears in my UC journal and I have to confirm housing costs each time they go up, but I had to apply for the benefit with a seperate form (branded South Lanarkshire council, not Jobcentre)—I I did fill in this form in the jobcentre, which I guess why their staff jokingly refer to it as "Universal Credit and not."

With all due respect it seems like to me that you're very confused. As i previously advised, your rent is paid through UC and this is why it appears on your statements, it's known as housing element. Housing benefit is completely different. Please read the links i posted above.

noscere said:

In principle, Universal credit is supposed to replace all these seperate benefits! You're entirely right—and not 🤣😭

It's not in principle at all, UC has replaced all other means tested benefits. I know i'm spot on with my advice. I've been advising people for too long to know that i'm correct.

noscere said:

In practise, different areas are just doing what they've always done
 Until they don't any more? It's a minefield!

Sorry but you've lost me here.

noscere said:

Some areas have not even switched to Universal Credit yet.

Again, i'm sorry but you're thoughts are not correct. All areas have been UC since end of December 2018. Confirmation here. https://commonslibrary.parliament.uk/constituency-data-universal-credit-roll-out/

The Government first launched UC in 2013 and completed the delivery rollout of the UC Full Service to all jobcentres in Great Britain by the end of 2018.

You are behind the times as managed migration has already started for those claiming Tax credits. Many people have been contacted to advise them that they need to claim UC within 3 months because their benefits are stopping.