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Welfare Reform: Impact of Under-Occupation Rule on Working-Age Tenants in Social Housing

This report delves into the consequences of the April 2013 under-occupation rule affecting working-age tenants in the social rented sector. With a 14% reduction for under-occupancy by one bedroom and a 25% reduction for two or more, approximately 23,000 tenants receiving housing benefit are impacted. The document outlines the estimated annual decrease in housing benefit per claim, potential support options, and the importance of correcting occupancy details. It also highlights the challenges of moving to smaller properties amid a shortage of one-bedroom accommodations.

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Welfare Reform: Impact of Under-Occupation Rule on Working-Age Tenants in Social Housing

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  1. Welfare Reform

  2. Programme of change • April 13 Under-occupation rule in the social rented sector • Working age only • 14% reduction: under-occupying by 1 bedroom • 25% reduction: under-occupying by 2 bedrooms or more • Council Properties • Estimated 23k working age tenants in receipt of Housing Benefit. • Estimated 7,207 (working age) claims affected • Estimated annual average decrease in HB per claim £543.67 (£11.31 per week) • Registered Social Landlords (RSL) • Estimated 11,071 RSL properties in receipt of Housing Benefit • Estimated 6,767 are of working age • Approximately 1,346 RSL tenants affected

  3. Rooms required compared to actual number of rooms (LCC tenants only)

  4. Under occupation in social housing • No.s affected – council and housing association tenants • Deductions as % of eligible rent, not of HB • Impact in different areas of the city • Particular property types – 2 bedroom multi story flats (rehousing children) and larger houses

  5. Extra bedroom at point of letting permitted for: • unborn child • access to children • disabled person needing extra space • medical reasons • foster children • lettings of some property types – 2 bed multi story flats

  6. Under occupation over lifetime of tenancy • due to changes in the household composition • reaching age thresholds which affect occupancy • children grow up and leave home • death

  7. Under occupation: warning tenants • Revenue and Benefits have written to all tenants likely to be affected • Working age, council / RSL tenants, under occupying and in receipt of HB • Opportunity to correct details of occupancy • Followed up by contact from landlord • FAQs leaflet on Leeds City Council website

  8. Options: make up shortfall • Support into work / increase hours • Take in a lodger – but need landlord permission • May have to collect rent from lodger / non-dependent deduction • Discretionary Housing Payment – policy to be reviewed, foster carers and disabled people requiring adaptations in their property

  9. Options: move to a smaller property • Mutual exchange – preferred option • Leeds Homes Register • Council’s under occupation incentive scheme has been suspended • Mismatch of property types – insufficient 1 bedroom accommodation • New local lettings policies? – employment • Private rented sector

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