One key element of the Spending Review will affect adults between the age of 25 -34 who are renting in the private sector.
(And not in receipt of a severe disability premium due to e.g. receiving DLA mid or high rate Care – *see below for more details)
- If you are aged under 25, are single and do not live with any dependants, you can only get the Local Housing Allowance shared room rate.
- If you are 25 or over, single and do not live with any dependants, or a care leaver under 22, or a childless couple, your benefit will be based on the one bedroom Local Housing Allowance rate if you live in:
• a self-contained property
• shared accommodation but have two or more rooms (bedrooms or living rooms) that no-one else can use
An increase the age limit of the Single Room Rate to cover all single people aged less than 35 years old, subject to the same exemptions.
Around 88,000 claimants will be affected, all of whom will be single, aged 25-34, living in private rented accommodation, and not in receipt of severe disability premium in Housing Benefit.
So people aged 25-34 may find themselves losing further benefit, in addition to the announcements already made. How much could they lose? As with all Local Housing Allowance changes, it depends where they live.
A 30 year old meeting the above conditions is currently entitled to the following amounts:
Luton – £115.07pw
Milton Keynes – £120.82pw
Inner East London – £240pw
The changes means they will find themselves only eligible to the following amounts:
Luton – £61.18pw
- Loss – £53.89pw
Milton Keynes – £72.50pw
- Loss – £48.32pw
Sheffield – £65.00pw
- Loss – £29.36pw
Inner East London – £100pw
- Loss – £140pw
This is in addition to changes already announced, which have been discussed here.
*More Information about the Severe Disability Premium*
If you are single or a lone parent [HB sch 3 (14), CTB sch 1 (14), CTB (SPC) sch 1(6), HB (SPC) (6)]
The severe disability premium may be included in your applicable amount if you:
- receive the care component of Disability Living Allowance at the highest or middle rate, Attendance Allowance or Constant Attendance Allowance
- and live alone (but if others live with you, see below)
- and no one receives Invalid Care Allowance for looking after you.
If you have a partner
You may get the severe disability premium if you both:
- receive the care component of Disability Living Allowance (DLA) at the highest or middle rate, Attendance Allowance (AA) or Constant Attendance Allowance
- or your partner is blind and you receive the care component of DLA at the highest or middle rate, AA or Constant Attendance Allowance
- and no one lives with you (but see below)
- and no one receives Carers Allowance for looking after either one or both of you.
If you are legally married to more than one partner (polygamous marriage) the same conditions must apply for each of your partners.
Other people living in your household
For the purposes of severe disability premium your HB/CTB is not affected if other people living with you are:
- or aged 16-17
- or a person who is registered blind (if a person regains their sight, they are treated as blind for a period of 28 weeks after they cease to be registered blind)
- or receiving the care component of Disability Living Allowance (DLA) at the highest or middle rate, or Attendance Allowance (AA)
- or people caring for you who are employed by a charity that makes a charge for this service
- or landlords/ladies and their partners
- or co-owners or co-tenants with you or your partner.
If you have a partner and one of you goes into hospital for more than four weeks, your DLA or AA will stop but you will continue to get the Severe Disability Premium, if you have already qualified for it, at the single rate.