Contour iNside Magazine Summer 2012:Layout 1 - Contour Homes

Welfare Reform UpdateThe Government is currently changing the way benefitsare calculated and paid. The changes will affect manytenants and how much benefit they get paid.What are the main things that may affect you?• Universal Credit• Benefit Cap• Under Occupation Penalty• Non-dependent Charges• Stopping direct payments to landlordsUniversal CreditA range of benefits (currently paid to people ofworking age) will be paid to you in a single payment.The benefits being replaced by Universal Creditinclude Income Support, Income Based Job SeekersAllowance, Income Related Employment and SupportAllowance, Housing Benefit, Child Tax Credit andWorking Tax Credit.If you are claiming any of these benefits you will be movedon to Universal Credit on a phased basis from 2013.Benefit CapThe total amount of benefits a person or couple isentitled to will be capped at around £26,000. The capwill be set at the average net earnings for a workinghousehold. This might mean for some people they getless benefit.Under Occupation PenaltyIf you are aged between 16 and 62 (you turn 62 during2013) and you have at least one spare bedroom in acouncil or housing association home, then from April2013 you could have your Housing Benefit reducedas a penalty for under-occupying your home. Thereduction is likely to be around £12 to £22 each week.The new rules are set out below:Non-dependent ChargesIf you claim Housing Benefit and have a non-dependantperson living with you (such as an adult son, daughter,relative or friend) the amount of Housing Benefit youreceive is likely to go down (from April 2012).Stopping Direct Payment to LandlordsIf you are on Housing Benefit, it is likely that your rentor proportion of rent covered by Housing Benefit, iscurrently paid direct to your landlord.If you are of working age this money will be paiddirect to you as part of the Universal Credit (fromOctober 2013) and you will need to pay your rentto your landlord.We offer a range of help and advice to supportyou to set up bank accounts, direct debits,work out your household budget and what billsyou need to pay. Your home is at risk if youdo not pay your rent. Please contact usas soon as possible if you need helpor advice.More information about why theGovernment is introducing thesechanges is available online. Visitwww.dwp.gov.ukWe are here to helpIf you have any questionsabout these changes andwhat it means for you, pleasecontact your Financial InclusionOfficer on 0345 602 1120.Members of the family No. of bedroomentitlementAdult couple 1Adult over the age of 16 1Two children of same sexaged under 16 1One boy and one girlaged under 10 1Single child 113