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fru-gal

Housing Benefit Budget Question

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What does this mean exactly? Is this HB for social rents or do you think it applies to LHA too? What is the "family premium"?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/443285/HMRC_Summer_Budget_Overview_Version_4_0.pdf

2.107 Removing the Family Element in tax credits, the first child premium in Universal Credit and the Family Premium in Housing Benefit – From April 2017, the Family Element in tax credits and the equivalent in Universal Credit will no longer be awarded when a first child is born. This will also apply for families with children making their first claim to Universal Credit. Households who have been in receipt of tax credits or Universal Credit with an interruption of less than 6 months will be protected. Furthermore, children with disabilities will continue to receive the Disabled Child Element or Severely Disabled Child Element in tax credits and the equivalent in Universal Credit. In Housing Benefit, the family premium will be removed for new claims and new births from April 2016.
Edited by fru-gal

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The family premium is part of the allowed income before means testing kicks in.(Applicable amount)

So for a single parent of one child housing benefit doesnt start being means tested away until income reaches a level made up of,

£73.10 (for the adult)

£66.90 (for the child)

£17.45 (family premium).

Added together that is the level means testing kicks in.

Housing benefit is means tested at 65p in the £.So someone working and on tax credits will in affect pay £11.34 more in rent because their means test level is lowered by £17.45.

The tax credit cuts would see someone working 16 hours lose around £17.50 in tax credits but they would pay around £11.30 less in rent (less income so more housing benefit).

By removing the family premium in housing benefit they in affect make the cut in tax credits stay a cut.The claiment doesnt gain any back through housing benefit.

Edited by durhamborn

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The family premium is part of the allowed income before means testing kicks in.(Applicable amount)

So for a single parent of one child housing benefit doesnt start being means tested away until income reaches a level made up of,

£73.10 (for the adult)

£66.90 (for the child)

£17.45 (family premium).

Added together that is the level means testing kicks in.

Housing benefit is means tested at 65p in the £.So someone working and on tax credits will in affect pay £11.34 more in rent because their means test level is lowered by £17.45.

The tax credit cuts would see someone working 16 hours lose around £17.50 in tax credits but they would pay around £11.30 less in rent (less income so more housing benefit).

By removing the family premium in housing benefit they in affect make the cut in tax credits stay a cut.The claiment doesnt gain any back through housing benefit.

Durhamborn, is this for both LHA and HB or just HB for social housing? Do you know if there is a calculator anywhere as if it is for LHA (and the family premium is removed from Apr 2016, then that is quite a big cut in benefit). Is it the same rate throughout the country?

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Durhamborn, is this for both LHA and HB or just HB for social housing? Do you know if there is a calculator anywhere as if it is for LHA (and the family premium is removed from Apr 2016, then that is quite a big cut in benefit). Is it the same rate throughout the country?

Im not sure but id presume its the same.The means test would kick into LHA quicker.In affect all they are doing is making sure the cut in tax credits remains a cut and isnt gained back through housing benefit.They are simply lowering where you start being means tested.

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