Housing & Council Tax Benefits
Housing and Council Tax Benefit are
National Welfare Benefits, administered by Local Authorities. The
purpose of Housing Benefit is to help people on a low income to pay
their rent. Council Tax Benefit is to help people on a low income
to pay their Council Tax. You cannot get Housing or Council
Tax Benefit if you, and any partner have more than £16,000 in
savings, unless you are in receipt of the guaranteed element of
pension credit. Savings up to the £16,000 limit will be taken into
account when working out your benefit. Different rules about
savings apply to pensioners.
Council Tax Benefit
Council Tax Benefit is paid to people who pay Council Tax on
their home. The benefit is paid by reducing the amount of Council
Tax they have to pay to the council.
Second Adult Rebate
There is also another type of Council Tax Benefit which does not
depend on the claimant's own income and savings. This is called
Second Adult Rebate and is awarded when the claimant has a second
adult in his or her home who is on a low income. This would usually
be another member of the family or household who is not a
partner, such as an elderly parent or adult child. This benefit is
not available if the person pays the claimant a rent to
live in their home.
Housing Benefit
Housing Benefit is paid to people who pay rent on their home to
a Housing Association or to a private landlord. You can claim
regardless of whether you rent the whole of the property or just
part of it. If you are a tenant of Somer Housing Association the
benefit is normally paid by reducing the amount of rent payable to
Somer.
The Local Housing Allowance (LHA) Scheme is the new way we
assess Housing Benefit for private tenants. There is no change to
the entitlement rules for Housing Benefit – these will still be
based on a person's income, savings and proof of rent etc.
However with LHA, tenants will receive payments direct to a Bank or
Building Society Account and will be responsible for paying their
rent themselves.
To find out more visit our
LHA pages.
Child Tax Credit
Child Tax Credit is a single tax credit aimed at families with
children. This has replaced the child element of Income Support,
Jobseekers Allowance, Working Families Tax Credit and Disabled
Persons Tax Credit and also the children's tax credit.
Working Tax Credit
Working Tax Credit is aimed at those in work and on a low
income. This has replaced the adult element of Working Families Tax
Credit and Disabled Persons Tax Credit and the employment element
of the New Deal 50+.
Nine out of 10 families will be entitled to the new tax credits,
but you don't need to have children to qualify. If you do have
children, you could be entitled to Child Tax Credit if your income
is up to £58,000 a year or £66,000 a year if your child is under
one. You may also get Working Tax Credit if you have children
and you or your partner work at least 16 hours per week; or if you
do not have children and are over 25 and work 30 hours a week.
Her
Majesty's Revenue & Customs website can work out the
amount of tax credit you could be entitled to. You can also
apply for tax credits on line. Or contact the tax credit
helpline on 0845 300 3900.